Kingston Flyer grinds to a halt

Vintage steam train the Kingston Flyer is no longer running as debts against its operation mount. Photo / Supplied

The historic Kingston Flyer train is no longer chugging its way across northern Southland after mounting debt forced the operation to close.

The 125-year-old train has for years run on a 14km track between Kingston and Fairlight.

It was no longer operating thanks to mounting debt - an "absolutely horrible outcome", Kingston Acquisitions director Robbie Caldwell told the Southland Times.

"...the train sits there and rusts on the rails with no one to look after it except for (finance company) Prudential. They're going to have to take ownership and guard it or it's going to get tagged and broken".

Kingston Acquisitions tried to sell the train in November last year to repay about $4.7 million to Prudential.

Prudential blocked an offer by United States-based company Railmark to buy the operation for $2.25m, the insurers refusing to accept anything less than the whole debt being cleared.

The train is a category one historic item in the Queenstown Lakes District Council's district plan and must therefore stay in the region.

- NZPA