The carriages were dumped in Taumarunui about eight years ago and had since deteriorated, becoming a major eyesore along the town's main street.
Over the next fortnight, 27 of the 53 carriages in Taumarunui will be scrapped and their remains carted off to Auckland where they came from.
Rob Cribb was among those applauding the decision this week.
"It would be good to get rid of them and bring our town back to normal. Something different will happen in here I think, it'll look a lot better... instead of rubbish."
Residents told RNZ they felt like Taumarunui is a dumping ground for Auckland's unwanted trains and KiwiRail had not explained why the once famous train yard became a metal graveyard.
Kenneth Ropata was also there for a look.
"They've been sitting at the rail station for quite a while and in the end they had to do something with them. It's either get rid of them or cut them up."
He said it was about time.
The trains were originally under guard, but that stopped at some stage, allowing taggers to have a field day. Along with the elements, this created a vista of decay, he said.
"This is what happens when you take security off of it, people tend to use them as targets, so it's either get rid of them or send them somewhere else."
Jim Austin, a member of the Taumarunui Rail Action Centre, said he was a bit sad that the once busy yard would soon sit empty.
But the carriages were such a state they needed to go, he said.
"When they first arrived in Taumarunui they looked pretty neat because they weren't in the mess like they are now. But over the period of time, they've deteriorated and they've been tagged."
Ruapehu mayor Weston Kirton had long pushed for KiwiRail to get the trains out of town and was pleased to see it finally happening.
"They've decided obviously through pressure, from the council and the public, to get rid of these because they're such an eyesore. So the fact that they can make some value out of them in terms of scrap is probably the best they can do."
KiwiRail executive general manager of operations Paul Ashton said there were originally 104 carriages in the town, and 27 were repurposed, including 12 on the Auckland to Hamilton Te Huia train.
KiwiRail was scrapping 27 of the 53 carriages in the town.
Of the remaining 26, it owned 11 and Ashton said it was making business cases to use them in its tourism business, subject to funding.
If not, they would be scrapped later this year, Ashton said.
"Over time, unfortunately with the weather conditions and not being used, they have deteriorated to a point of beyond a useful life.
"There were a number of business opportunities or options we were looking at, unfortunately none of them have come to fruition."
Fifteen other carriages were owned by heritage railways.
