The plight of the Kingston Flyer train has sent ripples as far away as the UK, where railway enthusiasts have expressed their concern and willingness to support the train.
Chris Milner, railway enthusiast and deputy editor of the British Railway Magazine, said he heard about the Flyer through a social networking website group called "Save the Kingston Flyer".
He will be touring New Zealand in March and April, with 25 readers of his magazine will tour the country.
The group had planned to travel on the Kingston Flyer as one of the trip's highlights.
"The Kingston Flyer is one of the best known heritage steam operations in New Zealand, as it runs over one of the most scenic lines on the South Island. It's the wonderful combination of the steam locomotive, the vintage carriages and the tremendous scenery that our group will be looking forward to," Mr Milner told the Otago Daily Times.
He said his magazine and his supporters were concerned to hear the Kingston Flyer had developed financial problems, and said heritage railway operations in the UK had also faced a difficult time because of the global banking crisis.
The magazine had expressed interest in supporting the cause, after it contacted spokesman Karl Barkley of the Southern F Locomotive Trust, which was one of seven bidders for the international tender for the Kingston Flyer.
"The magazine has offered help through public awareness here, but in respect of donations, Karl has indicated that at this stage he prefers to target local funding and donations.
If that changes we would be happy to print details [of how to donate money to the cause]," Mr Milner said.
Mr Barkley said he was reluctant to ask for larger donations until it was known who would win the tender.
"Our trust has had a lot of positive response, including some from prominent business people from Otago, Southland and overseas. But until we know what is happening to the Flyer, we are holding back a bit on the fundraising. For now, we are mostly raising awareness," he said.
"It has been tremendously encouraging to get support from the UK magazine, and potential backing from its readers. It's terrific that they care about our iconic train."
It is not the first time The Railway Magazine has supported the protection of a heritage train.
In 2004, the legendary British steam locomotive Flying Scotsman was put up for sale by tender.
Mr Milner said the magazine set up the "Save Our Scotsman" campaign to avoid the train being bought by an overseas bidder.
"In matter of weeks, 3.1 million ($NZ6.8 million) was raised to cover the 2.2 million purchase price, and fund an overhaul to allow it to run," he said.
