The Bell's Gap Railroad Company was incorporated under the general law of Pennsylvania on 11 May 1871, to construct a railway from Bell’s Mills, on the Pennsylvania Railroad, to Lloyds in Cambria County.

The construction began in 1872, and the 8+1⁄2 miles (13.7 km) long line was put in operation in June 1873.

[3] In 1883 and 1884, the Pennsylvania & North Western Railroad Company (under control of the Pennsylvania Railroad) converted the original 3 foot gauge trackage to standard gauge.

There were ten of these curves on the maximum grade, two of which were 600 feet (180 m) long with a turning an angle of 168°.

The following rolling stock was used in 1875: Operations for year ending 31 December 1875 were as follows: