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. The maximum speed on the line was originally 10 mph, then 20 mph; and trains were piloted over level crossings Tranz Rail took over operations from 3 October 1999, and renamed the line the Whakatane Industrial Siding.