With the establishment of the
Iron Curtain a section of track on the Czech side of the border was removed on the Waldkirchen – Haidmühle line. As a result, the importance of this section of route fell quickly, so that only shuttle services were left and all trains just ran from Passau to Freyung. On 26 May 1963 passenger services ceased on the line to Haidmühle. Goods traffic was withdrawn between Haidmühle and Jandelsbrunn on 31 December 1975 and between Jandelsbrunn and Waldkirchen on 1 October 1994. After the track was lifted, the trackbed became the
Adalbert Stifter cycle path. From 1980 onwards, traffic on the
Ilztalbahn gradually reduced. Sunday services were closed and weekday traffic reduced to four pairs of trains. On 30 April 1982 passenger services were finally withdrawn completely. The reason for the closure of the line was stated as the decrepit state of the Kachlet bridge over the Danube. This bridge was refurbished by November 1982 for 3.6 million DM (1.8 million euros) as was the section of the line as far as Kalteneck for a further 1 million DM (510,000 euros), because the ZF Passau rack railway firm in Patriching near Passau and the
Bundeswehr in Freyung continued to generate a lot of goods traffic. For this period of time, goods services were diverted via Deggendorf-Eging-Kalteneck. In the final period up to 2002 only goods trains worked the line, mostly tank transporters for the Bundeswehr (to April 2001) and goods train for the caravan firm of Knaus from
Jandelsbrunn and the above-mentioned rack railway company. The termination of the transport contract by the Bundeswehr at Freyung spelt the end of goods services on the line. The only passenger services were occasional specials by the
Passauer Eisenbahnfreunde, the last one on 5 August 2001. == Reactivation moves ==