The passengers travelled on a special Seasider train, which replaced the usual trip on the Taieri Gorge line, because of the Mount Allan forest fire.
Mr Familton said he was delighted to have cruise ship passengers visiting Palmerston and he hoped trains carrying cruise ship visitors might in future go to Oamaru, as well.
Visitor Margaret Kay said it had been an enjoyable trip along the scenic coastal railway line from Dunedin, before exploring the Palmerston shops.
Applebys Gift shop was packed for the hour the passengers were in town, joint owner Liz Walker said.
Another cruise ship train and two Seasiders might also run to Palmerston tomorrow, if the Taieri Gorge line was still closed, Taieri Gorge Railway operations manager Grant Craig said.