Fines of over half a million dollars have been issued following a fatal train derailment in NSW.

Two rail companies, NSW Trains and the Australian Rail Track Corporation, have fined a combined $525,000 for their roles in the incident that occurred in Wallan, north of Melbourne on February 20, 2020.

The derailment resulted in the deaths of train driver John Kennedy and his co-worker Sam Meintanis. Additionally, 66 other individuals sustained injuries in the crash. 

The tragedy unfolded as the XPT passenger train, en route from Sydney to Melbourne, was unknowingly diverted onto a section of track with a drastically lower speed limit, leading to the disaster.

The court heard that the crucial track change had been communicated only through a piece of paper in the driver's cabin, which Mr Kennedy had not seen. 

No verbal confirmation was sought to ensure the driver's awareness of the modification, nor were there any signs to alert him of the reduced speed limit.

Acknowledging the irreplaceable loss and the ripple effect of grief and trauma among the victims' families, Magistrate Brett Sonnet admitted no penalty could adequately reflect the incident's gravity. 

While he noted post-incident safety improvements, the magistrate's ruling underscored the profound impact on the families involved. 

Responding to the tragedy, NSW Trains and ARTC have expressed their condolences and committed to enhancing safety measures to prevent future occurrences.