Until March 1978, the Tasmanian Government Railways had operated the state mainline railways since 1890, and had amassed a large and prosperous network over that time, albeit ahead of continued financial losses and the dwindling of freight and passenger workings up into the 1970s.

The Tasmanian and Federal Governments entered into an agreement for the transfer of the Tasmanian railways to Australian National on 1 July 1975, but the Tasmanian Transport Commission's Railways Branch retained responsibility for administering and operating the system as an agent for Australian National, until the latter assumed full control on 1 March 1978.

In November 1997, as part of the privatisation of Australian National, AN Tasrail was sold to Australian Transport Network, a partnership of New Zealand-based Tranz Rail and United States railroad Wisconsin Central.

[1][2] In April 1998, Tasrail purchased Tasmania's only other rail operator, the Emu Bay Railway in the state's north-west from Pasminco.

[3] In February 2004, the company was purchased by Pacific National, owned by Patrick Corporation and Tranz Rail owner Toll Holdings.