On 2 December at 8:22 am, a State Rail Authority inter urban train collided with the rear of the Indian Pacific tourist train. The accident occurred on the main western line east of Glenbrook railway station, in the Blue Mountains west of Sydney. Dozens of passengers on both trains sustained injuries. Fifty one passengers required hospitalisation. Exensive damage occurred to both trains, including disruption to the rail network.

The Government established a Special Commission of Inquiry on 9 December 1999, and appointed The Honourable Mr Acting Justice Peter McInerney as Commissioner. The interim report uncovered 23 causes and factors contributing to the crash, including signal failures and poor communication between drivers and signallers. The final report was delivered in April 2001, out of the 95 recommendations to improve rail safety in NSW, 93 were accepted by the State Government.