Chris,
The country is indeed peaceful and safe. I was there in January of this year. The railway is more rundown than in the 2011 charter photos by Marcus but the most spectacular section is still operable with three 0-4-4-0 mallets serviceable (not the 4-4-0's as labeled on Railpictures). Sadly, the Fiat railcars are out of service and likely to remain that way. The 0-4-0 blew some boiler tubes on our last day there and water was pouring out the smokebox door, so it's probably finished. With new highways under construction and the railway clearances unsuitable for containers, the railway has no economic purpose other than running the very occasional charter. The people seem to be fond of their railway and wedding parties frequently use it as a prop in their wedding photos!
Km 105.9 on the climb from Shegereni to Asmara
Km 106.1 on the climb fromShegereni to Asmara
Wedding photos at Shegereni station
This sign pretty much sums up the current condition of the railway.
Michael Allen