Following the closure of the Central Australia Railway after a new standard gauge line from Tarcoola to Alice Springs opened in 1980, the Ghan Preservation Society was formed in 1981.

The society operated from a site at McDonnell Siding, 6.4 kilometres (4.0 miles) south of Alice Springs.

[7][8] In 1995, the society encountered financial difficulties, severed ties with the adjacent Road Transport Hall of Fame (later restored), and lost many volunteers.

[6] The project was described in November 2020 as "all but forgotten for more than a decade but now the subject of an energetic revival effort" involving support from the local community and businesses to restore locomotives, rolling stock and the railway line.

Proponents acknowledged many challenges but said that Alice Springs would "have a huge tourist drawcard and a fun transportation park for locals alike" if they succeeded.