Under such circumstances, the company suspended its railway operation on March 2, 1971, before the completion of the Miyamori Line, in the name of flood control projects of Yura River, and it also suspended its bus operation soon after.
このため、宮守線を待つことなく1971年（昭和46年）3月2日に由良川治水事業を名目に運行休止、程なくバス事業も営業休止に追い込まれた。