The 283-km broad gauge railway was established with the intention of encouraging settlement in Patagonia, which was sparsely populated at that point.

Some versions stated that the railway was not expanded due to British settlers' interests in preserving the Patagonia region only for sheep farming.

[3][4] Other reasons for the cancellation of the project were the crisis caused by the World War I and some politicians that questioned the National Government's designation of funds for southern enterprises instead of sending them to the Pampa region, as well as the death of Roque Sáenz Peña in 1914.

One of the last proposals to extend the line came in 1927 when deputy Guillermo Fonrouge suggested to build a branch to connect Holdich station with Las Heras, also joining the Comodoro Rivadavia Railway.

[4] The last attempt to extend the line came with the proposal of building a branch to the oil wells in Cañadón Seco, to connect both railways, Puerto Deseado and Comodoro Rivadavia, although the idea would be never carried out.

Finally in 1978, the de facto government led by Jorge Videla closed the Puerto Deseado Railway.

Unlike the Comodoro Rivadavia Railway, rail tracks remained intact but they would deteriorate as time passed.

[8] In 2009, Correo Argentino, the National post service, released a special edition stamp commemorating the Puerto Deseado Railway's 100th anniversary.

[10] In December 1980 the coach N° 502, that had been built by British company Lancaster in 1898, was declared provincial cultural heritage and therefore preserved.

During its years of service at the PD&CLH line, the 502 was used as a first class coach and also carried troops that fought workers on strike during the Patagonia rebelde in 1921.

The P-111 was carried by truck during a four days trip, taking alternative roads to preserve it from damage since its big size didn't make it suitable to cross the narrow bridges of the region.

The project also included the reopening of Ferrocarril Puerto Deseado-Colonia Las Heras and the Central Chubut Railway.

In 2007 the National Government made a call for tenders and finally concessions for the refurbishment were given to UTE (formed by companies Herso-Sonis).

[17] In January 2013, the reopening of the line was officialised but only for the Puerto Deseado-Tellier section (20-km length), which would be completely rebuilt using 40,000 mt.

The train would run an 8 km path at a very low speed, with 6 intermediate stops and the possibility of visiting some points of interest in the zone.

The station buildings would be also refurbished to put the line into operative conditions in an estimated time of 90 days, according to what the Ministry of Interior and Transport stated.