Great Central Railway in Leicestershire says trains will be diesel-hauled until further notice.
The fire service say crews from three stations attended the scene of the blaze on Tuesday.
Officials say some people have served in the role for decades but finding new recruits is difficult.
The "unacceptable" level of dust has caused accidents, a councillor says.
Sites in Loughborough, Rothley, Anstey, Mountsorrel and Syston will be sold and residents moved out.
Work on the cricket pitch - which forms part of the project - is set to be completed in 2027.
The horse dates back to between 1920 and 1930, and is estimated to be worth about £2,000.
Passengers are being urged to plan ahead as works have caused disruption between Nottingham and Leicester.
Breward's Coffee Shop in Mountsorrel has recently reopened following a refurbishment.
