In its 17 years of existence, the railway provided frequent passenger and freight service over its length spanning most of the archipelago from St. George's in the east to Somerset, Sandys Parish, in the west.

Construction and maintenance proved to be exceedingly costly, as the Bermuda Railway was built along a coastal route to minimize the amount of land acquisition needed for the right of way.

[3] The initial cost of construction and rolling stock purchase was about B$40 million (adjusted for inflation to dollars as of 2008), a staggering sum for such a short line with limited revenue potential.

[3] Regular passenger service began between Hamilton and Somerset on October 31, 1931, operating from 6 a.m. to midnight at one- to two-hour intervals, depending on the time of day.

[2] The cost of infrastructure rehabilitation, combined with falling passenger levels and ever-increasing deficits,[1] led the government to conclude that the Bermuda Railway should be abandoned in favour of bus service.

[2] In 1984, 18 miles (29 km) of the defunct rail line's right-of-way were dedicated as the Bermuda Railway Trail for hiking and, on some paved portions, biking.