In May 1971, a new railcar entered service. The car was built by Tulloch Ltd of New South Wales. The car featured diesel hydraulic propulsion. The new class of DRC was established, the first vehicle was DRC 40.
In November 1971 the second car, DRC 41, entered service.
To provide more railcars, two New South Wales Railways railcars were purchased in 1974. The cars were of the NSWR 'PCH' class. The two cars were transferred to Victoria on the standard guage during June 1974. The cars were transferred to Newport Workshops where they were modified for use by VR. These cars entered service about twelve months later as DRC 42 and DRC 43.
Unfortunately these cars suffered numerous problems in service and were prone to many breakdowns.
The railcars were out of service by 1995.