In the centre of the Medemu peat-bog, between the sand dunes, the peat factory “Baloži” was built shortly after World War II by German prisoners of war.
Soon after that, the present town of Baloži emerged around the factory to be inhabited by the factory workers. The bog extracted peat predominantly used as fuel, litter, and to make peat insulation panels. For the purposes of peat transportation, a narrow-gauge railway network (750 mm) with a total length of 28 km was built.
Nowadays, the Baloži Peat Extraction Railway/Museum is a 2.5 km long railway section preserved by enthusiasts. The railway is restored since 2013 and in 2018 the first regular excursions along the restored railway section (1.1 km long) were launched. The railway collection features some rare and unique locomotives and wagons, for example, an authentic peat railway canteen wagon.