Dearness' railroad won the bid, and in 1982 the operating contract was awarded to the New England Southern, which began freight operations on September 3, 1982, using State of New Hampshire-owned ALCO S1 1008. The railroad also leased a GE 44-ton switcher, #2, also state-owned. The first freight run consisted of a tanker for Home Gas in Northfield, a boxcar for Blue Seal Feeds (H.K. Webster) in Lakeport, and another boxcar of casting sand for Arwood Manufacturing in Tilton. The railroad made regular trips to Rochester Shoe Tree in Ashland, Blue Seal Feeds in Plymouth, Gerrity Lumber in Meredith, and a number of other freight customers centered around Lake Winnipesaukee.