[3] Canungra was the centre of regional timber production from the 1860s and the Lahey family built a large sawmill there, completed in 1885.

Laid with 35 lb/yd (17 kg/m) rail, the track climbed a ridge at an average grade of 1 in 12½ (8%) to a 300 ft (90 m) tunnel, before descending at an average grade of 1 in 16½ (6%) into the adjacent Coomera River valley, using curves as tight as 120 ft (37 m) radius.

Laheys ordered a third Shay loco in 1911, but it was on-sold to the Hampton Cloncurry Mines Ltd. Co. in 1912 without being used on the tramway.

Bridges on the line were up to 40 ft (12 m) high and 150 ft (46 m) long, and there were sidings at Witheren, 3 miles (5 km) from Canungra, Ferny Glen Junction 6 miles (9+1⁄2 km), Prices Creek Junction 7 miles (11+1⁄2 km) and Little Flying Fox Junction on the Flying Fox Creek branch, where an aerial cableway lowered logs 1,000 ft (300 m) from an adjacent spur.

The mill employed 112 people in 1913, and bullock teams were still used to haul logs from areas not served by the tramway, as well as sawn timber from the mill to the nearest railway station, and in 1911 there were 18 bullock teams moving sawn timber between Canungra and the railway at Logan Village.

The tramway was dismantled that year, and the Shay locos were offered for sale, without success, as they were recorded as abandoned at Canungra in 1937.