KiwiRail asked for Expressions of interest from tourism operators interested in running services on the Wairoa to Gisborne section in November - a month after the reopening of the Napier to Wairoa section was announced.
And as recently as February, the Hawke's Bay Regional Council were looking to continue supporting the Gisborne District Council, and Gisborne Rail Cooperative lobby group in their efforts to reopen the line.
HBRC corporate and strategic committee chairman Neil Kirton said it would be "very disappointing" if the cycleway were to render the track unusable.
"If it is exclusive use by that party then it does deal a blow to the concept of reopening the line beyond Wairoa," he said.
However Railbike Adventures director Geoff Main said the venture would be "hands down" more beneficial for the region than reopening the rail line.
They would offer riders one, two or four day treks along the Gisborne coast line. After several years in operation, Mr Main said they were anticipating numbers on the route would be similar to the 20,000 who frequent the Otago Rail Trail each year.
"We could be able to better that in growth terms by being a 365 day a year operation."
As well as creating jobs, he said this would mean "between $15 to $20 million going into the local economy".
In 2013 Mr Main broached the idea of reopening the entire Gisborne to Napier railway line as an adventure tourism cycle track.
The Wairoa-Gisborne cycle route would offer visitors a unique view of the East Coast, and the company had spent years designing special tandem bikes so users could ride side-by-side.
"Most cycle routes use the traditional single bike system which can be hard work and lonely if your cycle partner is faster than you," Mr Main said. "This route is a more relaxing way to take in the coast's stunning scenery and it also gives users an opportunity to share the experience with a loved one."
Their "tentative" opening date was November 1 - however this was dependant on weather not impending their work to repair the line's damage - by installing swing bridges, and clearing rock fall.
