Traffic on the line continued to fall over the next twenty years, and in 1931, passenger services were dropped completely—apart from the occasional Sunday excursion train.

The line saw a revival during World War II, carrying mines from the Swan Island military base, but returned to pre-war levels afterwards.

The cement company donated all its steam rolling stock to preservation groups, and the Geelong division of the Australian Railway Historical Society (ARHS), which was still in its infancy, received two engines.

During 1976 and 1977, the Society engaged in fundraising efforts and began regauging a short section of track around Queenscliff station, in order to enable its rolling stock to operate on the line.

The railway currently operates a Heritage Train Service between Queenscliff and Drysdale, along the southern shoreline of Swan Bay and through grazing land, with an intermediate stop at Laker's Siding.

The sections of the former route from Drysdale to South Geelong, along with a walking track adjacent to the Queenscliff-Drysdale line, now form the Bellarine Rail Trail, accessible to cyclists and walkers.