Due to problems with public liabilityinsurance, it was forced to suspend operations in about the year 2000.[citation needed] It resumed a limited service to Penola and Tantanoola[citation needed], but again suspended its operations as of 1 July 2006.[1]
All rail operations ceased as of December 2006.[citation needed] A letter dated 11 October 2007, sent to members and volunteers, said that the railway would cease to exist as an operating entity as from 31 October 2007 and would surrender its lease of the lines it operated over.[1] The Redhen railcars ended up at Steamranger Heritage Railway and were transferred between 2012 and 2013.