However, the people living near Ugata, the original terminus, opposed the new plan because they felt having the line's endpoint in their area would bring economic benefit.

This period of opposition lasted for four years, during which people living near Ugata refused to sell the land needed by Shima Electric Railway to lay track leading to Kashiko Island, thereby delaying construction.

After an agreement was reached, the line was finally completed and opened in 1929, five years after the original plan had been drafted.

For the time being, Kintetsu offered bus service between Ujiyamada and Toba, but in the late 1960s they decided it was worthwhile to create a rail connection between the two in hopes of attracting customers from the upcoming 1970 World's Fair in Osaka by offering direct rail service to the area.

Other improvements were added such as the ATS system, a new switching network[clarification needed], and gentler curves.