The line has five stations (Nikšić, Ostrog, Danilovgrad, Spuž and Podgorica) and seven halts.

The railway has primarily been used for transport of bauxite ore from the Nikšić mine to the Podgorica Aluminium Plant.

Chronic lack of funds for maintenance resulted in operating speeds being reduced to 30 km/h (20 mph), and end of passenger service in 1992.

In 2006, thorough reconstruction and electrification of the line begun, with consortium of Czech companies (OHL ŽS "Brno", AŽD and EŽ) undertaking the construction works.

The reconstructed railway was officially opened on 1 October 2012, with operating speeds increased to 75–100 km/h (45–60 mph) range, and passenger service reintroduced.