The company was formed on 29 September 1896 by James Ross (President and Vice-President of the Toronto and Montreal Street Railway Co. of Canada) and Sir William Mackenzie to take over the business of the Birmingham Central Tramways Company Ltd.[1] The last routes in Birmingham closed on 31 December 1911.

On 1 January 1912 BCT took over the remainder of the company's routes, ownership of which had just passed from neighbouring local councils to Birmingham Corporation.

It built a standard gauge tramway line in 1872 from Hockley Brook to Dudley Port operated by horse trams.

In 1874 the tramway between West Bromwich and Dudley Port was abandoned as the company was in financial difficulty.

Taken over by companies controlled by Scottish-Canadian businessman James Ross, on 24 March 1888, the horse tram route from Colmore Row to Hockley Brook was converted to cable traction by the Patent Cable Tramway Company, and on 20 April 1889, the line was extended to Handsworth (New Inns).

In October 1889 the portion of the acquired tramway along Bristol Road to Bournbrook was closed for reconstruction.

[2] From 14 May 1901 the route from the city to Bournbrook via Bristol Road (later extended to Selly Oak) was operated by electric cars using overhead current supply.