Museum Railway STAR has overcome an acute financial challenge. The Municipality of Stadskanaal, Rabobank and STAR have reached an amicable settlement regarding the remaining debt. This gives the foundation the financial room to continue working on the future of the museum railway.
Years of financial pressure
STAR was founded in 1992 to strengthen tourism and recreation in the region and to preserve the Veendam–Stadskanaal–Musselkanaal railway line.
Due to problems during a major investment project between 2004 and 2007, the foundation was left with a substantial debt. At the time, the Province of Groningen and the municipalities of Stadskanaal and Veendam provided a temporary solution through a partial repayment and a mortgage with Rabobank for the remaining balance.
For many years, this debt placed a heavy burden on the railway’s operations. Thanks to the dedication of volunteers, the postponement of essential investments and additional measures, STAR was able to continue operating.
Opportunity through extension of the railway connection
A new opportunity arose in 2011 when the Province of Groningen initiated plans to extend the public railway service from Veendam to Stadskanaal. STAR cooperated in exploring the shared use of the railway for both public transport and heritage railway operations.
The plan was based on selling the railway line to the Province. The proceeds would allow STAR to repay the mortgage.
In 2019, STAR and the Province signed an agreement to this effect. The intention was to transfer ownership of the railway line in 2024, enabling the outstanding debt to be repaid.
Amicable settlement
In 2024, it proved impossible to reach an agreement with the Province of Groningen regarding repayment of the mortgage. Early in 2025, the Municipality of Stadskanaal offered its support. Rabobank, the Municipality of Stadskanaal and STAR then worked together to find a solution that would secure the future of the museum railway.
Based on property valuations and additional analyses, it was agreed to settle the debt amicably for €400,000. The Municipality of Stadskanaal guarantees the financing. One condition is that STAR sells its buildings and land in Stadskanaal and Veendam to the municipality. STAR will remain the owner of the land on which the railway is located between Veendam and Stadskanaal and between Stadskanaal and Musselkanaal.
Museum Railway STAR and the Municipality of Stadskanaal will now further develop these agreements. They include arrangements concerning the use, maintenance and possible future repurchase of the buildings and land.
Looking ahead
After more than 15 years of uncertainty, STAR can once again look confidently to the future. The foundation is now debt-free and has a much healthier financial position.
Over the coming months, team leaders, advisers and the board will work on a long-term vision for the future. This will address postponed maintenance, the Nedersaksen Line, the repurchase of buildings and land, and further sustainability initiatives.
Museum Railway STAR would like to thank all parties involved for their commitment and willingness to work together to achieve this solution.