Though the railway was initially used only for the transport of ore to the port, the company had made provision for the operation of both freight and passenger services.
The railway's act of Parliament required the company to institute at least one daily return service between the city and the port, except where the revenue from all services failed to exceed 10 shillings.

The company already had wagons in which to conduct its freight traffic, so for the passenger services they ordered a horse-drawn tram in late 1861 from the Australian firm of Keary and Company.
The tram was soon known as a bus, also referred to as the Dun Mountain Bus or the City Bus, and later as a tram.
It arrived in Nelson on 23 March 1862.

The first operator of the tram was Thomas Nesbitt, a long-time local who arrived in Nelson in 1842.

The inaugural service of the tram occurred on Saturday, 3 May 1862.
A trial run between the city and the port showed amongst other things that fears the tram would be unstable when fully laden on account of the narrow gauge were not warranted.
Vibrations were experienced, however, due to the wheels being locked to the axles.
Fare paying passengers were carried throughout the day, with regular services commencing at 0900 the following Monday.

The tram departed every half-hour from either the Port or Hardy Street termini, providing a reliable daily service.
Though the legislation specified a speed limit of 4 mph (6.4 km/h), in practice average speeds of 6 to 7 mph (9.7 to 11.3 km/h) were maintained.
Among the conditions imposed by the company on the operator, he had to provide services between 0900 and sunset at not more than 6d per fare (the fare cap did not apply to services operated outside these times).
As the company was originally established to profit from the chromite ore, which was at the time making them in excess of £1,000 in revenue per week, the local management saw no need to burden themselves with the running of passenger services.

Later that year the company realised that in not taking an interest in the passenger services they were forgoing a reasonable source of revenue, and accordingly entered into a leasing arrangement with the operator.

Late in 1863 James McConkey purchased the lease on the tram and introduced some changes, including freeing the wheels to turn independently of the axles.
This had the benefit of making the ride more comfortable and reducing wear on both the tram and rails.
He also reduced the daylight running fare to 3d, though the after dark fare remained unaltered.
McConkey's tenure as operator of the tram lasted to the mid-1860s, by which time he had become a timber merchant.

An increase in confidence in the company's future subsequent to the resumption of mining activities in 1863 led to debate on whether the line should be extended into Trafalgar and Bridge Streets.
Despite popular support for such a move no-one was prepared to finance it, and there was a small band of vocal opponents, including competing transport operators.
Though their concerns were largely commercial, it is easy to see that the tram was providing strong competition, for in mid-February 1864 the services were increased to half-hourly in both directions.
City departures were on the hour and half-hour, with Port departures 15 minutes later.

At around the time Cock arrived, further changes were made to the operation of the tram.
In July 1864 railway by-laws were introduced that forbade smoking on the tram and the carrying of inebriated passengers, and introduced penalties for failing to purchase a ticket.

By April 1866 the tram was being operated by William Weeden and Alfred Brind.
It was during their tenure that the tram received its first refurbishment, during which time passenger services were provided using wagons with temporary seating.

On encountering financial difficulties in the winter of 1866 Weeden terminated his connection with the tram, with Brind doing likewise soon after.
The lease was picked up by the Brays.

In 1870 the Brays relinquished the lease on the tram, which was briefly taken over by Wi
Though the railway was initially used only for the transport of ore to the port, the company had made provision for the operation of both freight and passenger services. The railway's act of Parliament required the company to institute at least one daily return service between the city and the port, except where the revenue from all services failed to exceed 10 shillings.
The company already had wagons in which to conduct its freight traffic, so for the passenger services they ordered a horse-drawn tram in late 1861 from the Australian firm of Keary and Company. The tram was soon known as a bus, also referred to as the Dun Mountain Bus or the City Bus, and later as a tram. It arrived in Nelson on 23 March 1862.
The first operator of the tram was Thomas Nesbitt, a long-time local who arrived in Nelson in 1842.
The inaugural service of the tram occurred on Saturday, 3 May 1862. A trial run between the city and the port showed amongst other things that fears the tram would be unstable when fully laden on account of the narrow gauge were not warranted. Vibrations were experienced, however, due to the wheels being locked to the axles. Fare paying passengers were carried throughout the day, with regular services commencing at 0900 the following Monday.
The tram departed every half-hour from either the Port or Hardy Street termini, providing a reliable daily service. Though the legislation specified a speed limit of 4 mph (6.4 km/h), in practice average speeds of 6 to 7 mph (9.7 to 11.3 km/h) were maintained. Among the conditions imposed by the company on the operator, he had to provide services between 0900 and sunset at not more than 6d per fare (the fare cap did not apply to services operated outside these times). As the company was originally established to profit from the chromite ore, which was at the time making them in excess of £1,000 in revenue per week, the local management saw no need to burden themselves with the running of passenger services.
Later that year the company realised that in not taking an interest in the passenger services they were forgoing a reasonable source of revenue, and accordingly entered into a leasing arrangement with the operator.
Late in 1863 James McConkey purchased the lease on the tram and introduced some changes, including freeing the wheels to turn independently of the axles. This had the benefit of making the ride more comfortable and reducing wear on both the tram and rails. He also reduced the daylight running fare to 3d, though the after dark fare remained unaltered. McConkey's tenure as operator of the tram lasted to the mid-1860s, by which time he had become a timber merchant.
An increase in confidence in the company's future subsequent to the resumption of mining activities in 1863 led to debate on whether the line should be extended into Trafalgar and Bridge Streets. Despite popular support for such a move no-one was prepared to finance it, and there was a small band of vocal opponents, including competing transport operators. Though their concerns were largely commercial, it is easy to see that the tram was providing strong competition, for in mid-February 1864 the services were increased to half-hourly in both directions. City departures were on the hour and half-hour, with Port departures 15 minutes later.
At around the time Cock arrived, further changes were made to the operation of the tram. In July 1864 railway by-laws were introduced that forbade smoking on the tram and the carrying of inebriated passengers, and introduced penalties for failing to purchase a ticket.
By April 1866 the tram was being operated by William Weeden and Alfred Brind. It was during their tenure that the tram received its first refurbishment, during which time passenger services were provided using wagons with temporary seating.
On encountering financial difficulties in the winter of 1866 Weeden terminated his connection with the tram, with Brind doing likewise soon after. The lease was picked up by the Brays.
In 1870 the Brays relinquished the lease on the tram, which was briefly taken over by Wi
Dun Mountain Railway