Taxpayers to pay billions for overseas company to run Adelaide trains

A vital Adelaide public service is soon to be in the hands of a private operator after a French company was awarded a contract to run the city's train network.

Transport Minister Corey Wingard said Keolis Downer was the best bidder with the best outcome for South Australia.

Taxpayers will hand over $2.14 billion to run passenger train services during the next eight years.

The government said the move would deliver more reliable and frequent services for commuters, and lead to increased patronage.

"We are not selling a single train, track or station," Premier Steven Marshall said.

"What we're doing is improving the service to those South Australians who are using our public transport."

However, Labor said that after Keolis Downer took over Newcastle's bus network in NSW, on-time services dropped by more than 15 per cent.

The government has promised none of the network's 200 train drivers will lose their jobs, but the union remains concerned.

"This will affect around 1000 public sector employees in various areas within government," Public Services Association general secretary Nev Kitchin said.

"A company that privatises is going to shaft labour wherever they can to get their bottom line down."

The private operator will take over at the end of January.

Labor has promised to tear up the contract if it winss at the next election.