The Maine Narrow Gauge Railroad Company and Museum has secured a two-year lease that allows it to keep operating in Portland while company officials work to transition the operation to Gray.

The owners of 58 Fore, formerly known as The Portland Company, announced Thursday they have reached an agreement that will enable the Maine Narrow Gauge Railroad’s museum as well as the Polar Express attraction to continue operating along the Portland waterfront through 2017.

CPB2, which purchased the Fore Street property last year, worked with Donnell Carroll, executive director of the Maine Narrow Gauge Railroad, to extend the lease for the museum and office.

The railroad company had recently announced plans to transition some of its operations to a new location near the Gray Plaza on Route 100 in downtown Gray, the sale of 58 Fore St. property being a consideration in the transition.

James Brady, manager for CPB2, said, “We are pleased to be able to accommodate the (railroad) with this agreement that helps keep the wonderful holiday tradition of the Polar Express in Portland. More importantly, this will help make the Maine Narrow Gauge Railroad Company’s transition to its proposed facility in Gray more seamless, while at the same time, we move forward with plans to re-develop our property into a dynamic, integral part of the Portland waterfront.”

Carroll said, “We are very happy to have reached a lease agreement with CPB2 extending our time on the waterfront through 2016 and into early 2017. The lease provides us with a certainty for our future, as well as fitting our timeline for relocation to our new home in Gray in summer of 2017.”

Founded in 1992, the railroad is a nonprofit museum with a mission to educate the public and preserve historic equipment related to Maine’s 2-foot gauge railways. Five 2-foot gauge railroads operated in the state from the 1870s through the 1940s, serving as an important part of the economic development of the interior of Maine. The museum has drawn more than 33,000 visitors annually. The museum is open May through October and seasonally for events.