Members of the Oamaru Steam and Rail Society had worked to restore the society's 1924 Hudswell Clarke locomotive B10 for the past six years, and society manager Harry Andrew said he was ''thrilled'' that the steam engine was now officially recommissioned.
''I'm more thrilled for the members and all the work they have done.''
It had cost $100,000 and taken 2500 man-hours to repair the locomotive, he said.
The train made five trips around Oamaru Harbour and 47 passengers were on board for its first trip yesterday morning.
The train would be back in action next month on Queen's Birthday Weekend, he said.
About 100 people turned out for the official ceremony and Waitaki Mayor Alex Familton praised the steam and rail society's volunteers, who had put in an ''outstanding effort'' to complete the project.
''It's a great day for steam, and it is great to see people out supporting this venture.''
