STANDISH – A ceremony in Standish has marked the state’s purchase of the final 5-mile stretch of rail that eventually could lead to the restoration of train service on the historic Mountain Division line from Portland to Fryeburg.

State and local officials drove a golden spike into the line Friday as they hailed efforts to bring back freight and passenger trains as a way to spur economic development and reduce truck traffic in the region.

Funds from state transportation bonds were used to purchase the 46 miles of rail that had been owned by Pan Am Railways, formerly known as Guilford Rail Systems. The cost of repairing the rails is estimated at $20 million.

Once a popular route for tourists headed through the Sebago Lake Region and the White Mountains, the Mountain Division halted passenger service in 1958 and freight service in 1983.