Early in the nineteenth century, the Isle of Wight was chiefly involved in agriculture; there was industrial activity in Newport, and Ryde was an established town.

[2][3][4][5] The Cowes and Newport Railway (C&NR) was to be 4+1⁄2 miles (7 km) in length, running north to south along the west side of the River Medina.

[5] Captain Tyler of the Board of Trade inspected the line for passenger operation in May 1862, but found numerous deficiencies and recommended that the authorisation for opening be declined.

[3][4][7][8][9] Notice boards at the Newport station made it clear that onward conveyance to London, via Cowes and Southampton, was a primary objective.

The Cowes and Newport bill failed standing orders, and although there was some opposition to it, the IoW(ES)R was authorised by the Isle of Wight Eastern Section Railway Act 1860 (23 & 24 Vict.

c. ccxxxii), it changed its name to the Isle of Wight Railway (IoWR); it opened between St John's Road station in Ryde and Shanklin on 23 August 1864 and on to Ventnor on 10 September 1866.

c. clxxxi) was given royal assent on 31 July 1868, to build a line from Newport to the Sandown station of the Isle of Wight Railway.

[5] The authorised capital of the Newport Junction line was £84,000,[12] but it was not planned to pass through any major population centre that was not already rail-connected, and the company found it difficult to raise the money it needed for construction.

[13][14] Approval to open the line to passenger traffic was refused; the company tried to appeal against this, but failed; subsequent inspection visits took place on 31 July, 28 August and 26 September 1872, without success.

The construction and land acquisition expended much of the company's available cash, and a director, George Young, personally made money available to continue.

Lt Colonel Hutchinson visited the IoWCR in November 1875, but refused to sanction the opening of the line to passenger traffic as the station accommodation, in particular, was incomplete.

Writing in 1946, Jones describes the route from Newport to Ryde and states[17] Another climb... brings the line to Ashey station, with its disused passing loop.

Many years ago there was a racecourse nearby, and the extra traffic on race days was accommodated on the loop, and also on a siding which ran to a worked-out chalk pit in Ashey Down.

This was successful so far as day-to-day running was concerned, but the difficult financial situation of the companies led to continuing failure to work together over completion of the line.

The IoW(NJ)R too needed some time to increase its income, although on 28 June 1876, the anniversary of the coronation of Queen Victoria, thirteen-coach trains were run between Sandown and Newport; rolling stock had to be hired in from the IoWR.

A vexatious dispute arose over the apportionment of contributions to the cost of the Newport viaduct and bridge, and resort to arbitration, and then a parliamentary bill to revive expired powers delayed opening.

Charles Conacher, its General Manager, wrote that it[18] was over-capitalised, in order to pay off the arrears of interest and otherwise provide for the indebtedness of the amalgamated companies.

This was apparently done by money borrowed at what is now the high rate of 4+1⁄2 per cent., and the Company has now been so engaged in meeting their fixed charges, amounting to about £13,000, out of a gross annual income of £30,000, as to leave nothing for dividend on Preference and Ordinary capital.

[3][8] Notwithstanding the existence of the route through Sandown, the member companies of the IoWCR had long felt that a direct line from Cowes or Newport to Ventnor, independent of the IoWR, was desirable, and a number of schemes had been proposed.

Eventually the section from Merstone to St Lawrence was ready and the Board of Trade inspector was critical of the tunnel, but sanctioned opening.

[5][20] Although the original contractor had failed financially, it proved possible to continue the extension to Ventnor, and Lt Colonel von Donop visited on 21 May 1900.

When the IoWCR agreed to work the Newport, Godshill and St Lawrence Railway, it guaranteed a minimum income of £2,000 to that company's shareholders.

Incidentally, he negotiated with the Board of Trade about 1912 that Freshwater trains could be propelled to and from Newport station, overturning the old prohibition which required running around on every trip.

As well as suddenly needing to acquire rolling stock, the FY&NR had to provide its own station at Newport, just short of the convergence with the IoWCR.

[21] The new independent arrangement started on 1 July 1913; passengers now had to change stations at Newport, and the inferior service and higher costs eventually pushed the FY&NR into bankruptcy.

[3] The FY&NR had its locomotives overhauled by the Isle of Wight Railway at Ryde, and the IoWCR charged a toll of £3 to pass them through Newport.

A national strike and post-war Government control of fares, as well as much-improved bus competition and improved wage rates and working conditions for staff all attacked the financial situation of the line.

The facilities at Medina Wharf were modernised, with a large concrete pier structure being provided, equipped with two massive transporter cranes.

World War II had caused further decline in the competitive position of the railways on the island, and the minimal carryings on the Merstone to Ventnor line resulted in its closure on 13 September 1952.

The decision was taken to retain only the Ryde to Shanklin section on the island, and the Ryde–Newport–Cowes service, and the route from Smallbrook to Cowes closed on 21 February 1966, bringing about the end of the IoWCR network.