The restoration of P 107, also using some parts from the remains of P 25, is currently the focus of Project Steam's efforts. The two locomotives were built in 1885 by Nasmyth, Wilson and Company, entered service in 1887, were withdrawn in 1928, and on 8 August 1932 were dumped in the Clutha River near Beaumont to protect the Roxburgh Branch from erosion. Their remains were recovered in May 1992, and as the frame of P 107 was in a better condition, it was chosen for restoration, with extra parts sourced from P 25, most notably its wheels, which were in better condition to P 107's.
During the celebration of the Dunedin Railway Station's centennial in October 2006, P 107 was displayed in partially rebuilt condition at the station. Funds are currently being raised for the next and most costly stage of the restoration, the reconstruction of P 107's boiler. The restoration is historically significant as the locomotive is one of, if not the earliest known surviving example of a British-built 2-8-0. Once fully restored, there are proposals to establish a regular service run by P 107 as a tourist attraction, such as a service modelled on the Kingston Flyer. It would run over the preserved track of the Otago Central Railway between Pukerangi and Middlemarch, connecting with the Taieri Gorge Railway's daily diesel-hauled services between Dunedin and Pukerangi.
Project Steam's first home was a location by the Water of Leith in central Dunedin. Later the group moved most of the restorable items to the Dunedin Gas Works, where the frame and wheels of P 107 were continued to be worked on while P 25's frame (cut into sections) could be found stored onsite. All other components such as spare wheels, old tender bodies and the boilers were moved to a field next to the Taieri Gorge Railway at Sutton. In 2008, with redevelopment occurring at the Gas Works necessitating the group's removal from the Gas Works, P 107 was shifted to Springfield and is now located at the Midland Rail Heritage Trust. It is understood that the group will continue to restore P 107 to operational order at Springfield.
References
Tom McKinlay, "Hopes Raised for Steam Engine", Otago Daily Times, October 2006.
