In the 1880’s, the so-called “White Rajahs” of the British Crown established the British North Borneo Company by obtaining parts of North Borneo from the Sultan of Sulu.  The wild jungles provided grounds for great adventure and potential riches.  As the need for larger plantations grew, the question of transportation became a major issue for these young plantation owners. A railway straight into the heart of Borneo was the only viable solution to keep the company afloat.

In 1894, the Chartered Company elected William Clarke Cowie as the Managing Director of the British North Borneo Company.  Cowie appointed an English Civil Engineer, Arthur J. West, to build the railway line from Bukau, north to Beaufort and south to Weston.  Named after Mr. West, Weston was to be the new port at Brunei Bay.  However, upon completion of the railway in 1890, Weston was discovered to be too shallow for a deep-sea wharf.   Instead, Arthur J. West extended a 64 km line from Beaufort to Tenom and to Melalap where laborers, mainly Hakka and Cantonese were lured from China to undertake what was known to be the most challenging task of construction along the gorge section.  In the meantime, George Pauling & Company was appointed to continue the railway from Beaufort, further 90 km to Jesselton (now Kota Kinabalu).  The railway was finally on the move!

However, victory did not last long, for in 1930, the Great Depression spread through the world.  This threw men out of work everywhere; trade was almost halted; there was no sale of rubber and established companies collapsed.  Hardly had the world recovered from this when the Second World War started in 1939.  The Japanese 37 Army, under Lt. General Masao Baba occupied North Borneo.   WWII and the Japanese Occupation almost paralyzed the whole railway system between 1944 and 1945.  Despite severe damages, the railways continued providing its vital service to the state during the war.  Locomotives continued running between bridges and “Rail Jeeps” were modified to replace damaged locomotives. 

During the Post-War period, immediately after liberation of North Borneo by the 9^th Division Australian Imperial Force (AIF), the British North Borneo Company faced the gigantic task of reconstruction and decided to relinquish its ownership of North Borneo to the British Colonial Office.  From then on, North Borneo became a Crown Colony until Malaysian independence.

The railway remained the only means of transportation into the interior until only half a century ago, playing a vital part in the economic development of Sabah.  It helped open up the country and the emergence of towns like Bukau, Weston and Jesselton.  It now continues to run through six main stations, namely Tanjung Aru, Papar, Bongawan, Beaufort and Tenom.  The smaller stations are Putatan, Kinarut, Kawang, Kimanis, Lumat, Saliwangan, Halogilat, Rayoh and Pangi.