When I was there in 2002 the railroad line beyond Aguas Calientes (the gateway village to Machu Picchu) to Quillabamba has aleady been closed since 1998 due to flood and landslide damage. That seems to be a on-going problem in that area. I assume the line has not, and will not, be reopened beyond Aguas Calientes. I'm assuming the Cuzco-Aguas Calientes line will be reopened due to the heavy tourist traffic to Aguas Calientes and Machu Picchu, which is not accessible by road as far as I know.

I always love those foreign trains like in Peru or Vietnam. The rail line goes right down the middle of the village just feet from people front poarches or street markets. Makes for some interesting photos. You see someone's ponchos hanging for sales just a few feet from a passing locomotive, or a family eating dinner on their front porch in Hanoi as a train passes by five feet from the table.