It's a case of the little engine that could … most of the time.

Melbourne's new train and tram contracts are a victory for modest and incremental improvement over heady dreams of public transport nirvana.

Metro Trains and Yarra Trams have won new seven-year contracts. Credit:Jesse Marlow

They promise slightly better days ahead for commuters, rather than any great leap forward in service standards.

The higher punctuality targets of 92 per cent for trains and 82 per cent for trams set the bar at a level Metro Trains and Yarra Trams will be able to meet on a good day, but will punish them on outright bad days.