By March 1973 in Australia, steam had vanished in all states. Diesel locomotives were more efficient and the demand for manual labour for service and repairs was less than steam. Cheap oil had cost advantages over coal.
Steam traction in [[New Zealand]] ended in 1968 in the [[North Island]] when AB 832 (now preserved at the Glenbrook Vintage Railway, Auckland, but owned by MOTAT) hauled a Farmer's 'Santa Special' from Frankton Junction to Claudelands. Due to the inability of the new DJ class diesel locomotives to provide in-train steam heating, steam operations continued using the J and JA class 4-8-2 tender locomotives on the overnight [[Christchurch]]-[[Invercargill]] expresses, Trains 189/190, until 1971. By this time sufficient FS steam-heating vans were available, thus allowing the last steam locomotives to be withdrawn. Two AB class 4-6-2 tender locomotives, AB 778 and AB 795, were retained at to steam-heat the coaches for the Boat Trains between Christchurch and Lyttelton until they were restored for the Kingston Flyer tourist train in 1972.
In [[Finland]], the first diesels were introduced in the mid-1950s and they superseded the steam locomotives during the early '60s. The State Railways ([[VR Group|VR]]) operated steam locomotives until 1975.