The MILW entered financial difficulty in the 1970s and the Newport - Metaline Falls section was sold to Port of Pend Oreille following the company's downsizing. The Port of Pend Oreille established the Pend Oreille Valley Railroad and contracted railroad holding company Kyle Railways to manage the POVA. Freight service began on October 1, 1979, and the Port of Pend Oreille took over the POVA's management from Kyle Railways in 1984. On March 3, 1998, the Newport - Dover section was acquired from BNSF, along with 7 miles of trackage rights between Dover and the interchange yard at North Sandpoint.
Heritage railroad
Beginning in 1981, the North Pend Oreille Valley Lions Club worked with the POVA to operate a seasonal excursion train service on several weekends in the summer and fall.
The 20-mile (32 km) round trip ran from Ione to Metaline Falls along the spectacular Box Canyon, passing through several tunnels and crossing several bridges and wooden trestles. The passenger cars consisted of 3 standard coaches as well as 3 open-air cars and a caboose with some equipment borrowed from the Inland NW Railway Historical Society.
Financial issues caused the excursion train service to cease operations in October 2016, as upkeep and inspections became cost prohibitive.[3] The local Rotary Club sponsored a new excursion train on a 9-mile (14 km) route from Newport to Dalkena that debuted in 2017.[4]
