The railway proved popular with tourists, and in the summer seasons of 1985–86 and 1986–87, J 1211 was used to haul three return trains a day.

[2] In May 1987, the directors of the Bay of Islands Scenic Railway decided to cease operations due to financial problems.

There is an active campaign to restore the railway, including the rebuilding of the locomotives, refurbishment of passenger carriages, and upgrading the line to safe standards.

Currently, operations cover 4.5 kilometres (2.8 mi) of track, including the famous stretch along Kawakawa's main street.

[3] As of 2024[update], a former Auckland ferry boat, the Minerva is being restored to run a service between Russell and Opua, where it will link with the railway.