The Whakatane Board Mills Line of 10 km length was opened about 1939 as a freight only line, and was sometimes referred to as a "private siding". The line had previously operated from 1937 as a private siding, then as the Matahina Tramway. Two FA steam locomotives were purchased from the New Zealand Railways, No 41 in 1937 and No 250 in 1943.
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