On 31 December 1948, Parliament approved projects for acquiring foreign railroads, discharging part of the £17 million which was owed to Uruguay by the United Kingdom because of purchases made during World War II.

Having difficulty obtaining approval, the Executive decided not to pursue the proposal and allow the new entity to limit its function to the operation of rail transport.

Half of the network is closed, with freight trains circulating branches from Montevideo – Rivera – Livramento; Piedra Sola – Three Trees; Sayago – Minas; Verdum – Plant ANCAP; Carnelli – La Teja; Chamberlain – Paysandú – Salto – Concordia and Algorta – Fray Bentos.

It permits movement of rolling stock from other companies and institutions, and several have their own cars and locomotives (ANCAP, AUAR, CEFU, CUCP).

In 2019 the Finnish forest industry company UPM Kymmene started the construction of a Wood Pulp mill in Pueblo Centenario, near Tacuarembo's Paso de Los Toros.

Pulp for paper production is to be transported from the plant to Montevideo's Harbor and chemicals in the opposite direction by rail.

Track installation began in late 2022 with new continuously welded rail on Uruguayan sleepers (made by the Spanish company Sateba's engineering and local materials) and Vossloh fastenings.

Double track was laid between Montevideo (Nova Central Station and Harbor's branch) and Villa Felicidad neighborhood in Progreso, Canelones.