The Ottoman Government gave a concession to build a railway from Smyrna to Cassaba on July 4, 1863.

They were going to extend the line to Cassaba, but the SCR went bankrupt during the stock market crash in 1866.

SCR completed the line to Alaşehir in 1875, however the construction was funded by the Ottoman Government.

The Ottoman Government always in need of finance decided to rationalize the structure of the Smyrna Cassaba Railway.

The concession was then sold to Georges Nagelmackers, the founder the International Sleeping Car Company on February 17, 1893.