The routes to Penrith/Tebay and Darlington were closed for passenger traffic in 1962. Freight trains from Hartley Quarry (just east of Kirkby Stephen East) to Appleby continued until 1975 and the army continued to use the section from Appleby to their depot at Warcop until 1989.

Following closure, Kirkby Stephen East was purchased in 1969 and converted into a Bobbin Mill. The platforms were in-filled with rubble and concreted over, the open ends of the twin train sheds blocked off and a new roof erected over the Penrith / Tebay platform. Little maintenance was carried out to either the site or building which rapidly fell into a state of disrepair. Some areas of land not required by the Bobbin Mill were sold off to private individuals. In 1992, the Bobbin Mill went into receivership and the building and site fell derelict. 

In 1996, the building and site were purchased by Stainmore Properties Ltd (SPL) for use as the eastern terminus of a proposed preserved railway from Appleby East. In summer 2000, Stainmore Railway Company Ltd (SRC) was formed. SRC volunteers and shareholders have carried out substantial repairs to the building to prevent any further deterioration and have begun the task of developing a Heritage Centre and operational railway. The company has signed a long-term lease with SPL and has been awarded a number of grants to progress the project. The Heritage Centre opened to the general public at Easter 2009 and August 2011 should see passenger trains return to the East station after an absence of almost 50 years.

Note - Locos that show as resident may be based here but loaned to other sites, click on 'Loco' to view the most recent location

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