The bombshell was dropped last week.

Newsagent Ian Johnson was dumbstruck.

"It came out of the blue," he said.

The newsagency is only one of a multitude of stores that will be affected.

"The service has been going for years… they used to go out to Andamooka," said Mr. Johnson

Hourglass Jewellery staff also told the Roxby Downs Sun that their engraving service would be affected.

Stateliner spokesperson Brain Hunter speaking said the decision was hard.

"The decision was something none of us here at Premier/Stateliner were at all comfortable with … it was a very difficult call to make."

The branch line service had been operating for three years in deficit.

The public notice released this week says,

"To our valued customers and agents, we wish to advise that all services between Port Augusta - Olympic Dam, Roxby Downs and Woomera will operate for the last time on the following dates:

Service 956 (Mon to Sat) Port Augusta - Roxby Downs/Olympic Dam 29/07/08

Service 955 (Mon to Fri) Roxby Downs/Olympic Dam - Port Augusta 29/07/08

Service 951 (Sat) Roxby Downs/Olympic Dam - Port Augusta 26/07/08"

"We had put a lot of kilometres in hoping that customers would take up the service,” Mr Hunter said.

“But our average usage is still around four or five passengers a trip … that's not enough to make it economic."

He said the company did not have the fleet or drivers available to tailor existing services to make trips to Roxby Downs.

"We have talked with a few local people about possible alternatives," Mr Hunter said.

"There may be a way to make it happen … but the initiative might need to come from the community at Roxby Downs.

“The service would need to be tailored finely to suit people's needs … the existing traffic just doesn't cover the cost of the operation."

Freight services will also cease.

There are other freight services available in Roxby Downs but they are generally more expensive than the overnight bus.

It has some local businesses worried.

Lynn Breuer told the Sun that she was concerned about the freight issue.

“I've rung Brian Hunter and he assured me that Premier/Stateliner had followed proper process and applied to the Public Transport Board for permission to suspend the service,” Ms Breuer said.

The Public Transport Board approved the request.

Because it is a private company there was little Ms Breuer can do immediately.

Ken Lai from Roxby Chinese restaurant uses the service regularly.

"I use the service every month," said Mr Lai in Roxby this week. "I find it safer especially if you are only able to get away for a couple of days."

He said: "It won't affect BHP Billiton employees … they have their own buses … it will effect town workers, hospitality workers and their families and grandparents wanting to come to spend time with their grandchildren."

"They say this is a boomtown but we can't even get a passenger service from Port Augusta … I think that if a private operator can't pick up the service either council or BHP Billiton should do something about it," Mr Lai said.