In 1969, the New South Wales government initially ordered 20 diesel-hydraulic shunters, which were soon supplemented by 30 more. The engine came from Caterpillar and the transmission from Voith. They were used almost all over the state and replaced all remaining steam locomotives in shunting service. They were able to prove on several occasions that, unlike diesel-electric locomotives, they could also run on flooded tracks. Due to a lack of demand, they were phased out in 1987 and by 1991 almost all of them had either been handed over to private companies or museum railways. 