Dunedin Railways has announced that it will put the company into "hibernation" due to Covid-19 financial pressures, likely resulting in the loss of 51 jobs.
The company said today that it already had financial pressure before the pandemic, and that putting the company into an inactive state was being made as an alternative to closure.
Dunedin City Council has agreed to meet ongoing costs associated with mothballing the operation.
One of Dunedin Railways' main drawcards was a route through the beautiful Taieri Gorge, which attracted thousands of passengers each year.
Company chair Kevin Winders said the situation was regrettable.
"We deeply regret the impact on our staff and their families," he said.
"This is a very difficult time for them and we will work hard to do everything we can to look after them.
"The impacts of Covid-19 exacerbate these challenges severely because the company is largely reliant on international tourism which makes up 80 per cent of DRL's total passenger numbers.
"We are unlikely to see international visitors return in the 2020/21 summer and the outlook beyond that is uncertain at this time."
The company will look to retain four staff to prepare the company for hibernation, and to maintain selected assets which would be kept.
Keith Cooper, chair of main shareholder Dunedin City Holdings, said the re-opening of the railway with an altered offering would be explored in the future "as the economy and tourism recover".
SHARE ME