The company was authorised by Rafael Reyes's government to float £518,400 of bonds for the first 54 km of the line between Puerto Wilches and Bucaramanga.

The project was initially a success but political opposition to the use of bonds guaranteed by the national government formed within the national political elite and the project was sabotaged by publications in the European press spreading rumours the government had not authorised bonds to be raised in its name.

Subsequent bonds were heavily devalued and the company did not receive sufficient capital to fund the line.

Following repeated disputes with Colombian authorities the company went into liquidation and the concession was bought out by the government in April 1918.

A significant proportion of the railway was not completed until 1926 when the 95 km point was reached resulting in stimulation of trade in the surrounding region.