prior to the 1999 victorian election, the state labor party promised to return passenger services to leongatha. in 2008, a report commissioned by the victorian department of transport found the cost of returning passenger services to leongatha to be unjustifiably high, estimating the cost at $72 million. the report stated that only 20 per cent of respondents surveyed about their transport needs considered restoring train services to be the main priority. instead $14.7 million was allocated to road coach service upgrades. the then minister for public transport lynne kosky said that the state government had provided funding for development of a rail trail between cranbourne east and nyora to support tourism in south gippsland in may 2008.