The coastal resort and port town of Ramsgate was historically served by a complex network of unconnected railway lines, the legacy of competition between two rival companies to provide links to London and to neighbouring Margate.

[2] Although very conveniently sited for passengers, Ramsgate Harbour station presented severe operating difficulties.

Its situation at the end of a steep gradient in the tunnel meant there was the constant risk that an out-of-control train would run through the station onto the beach, as happened on 3 August 1891 and 24 March 1915.

[5] Additionally, by the 1920s the population of Ramsgate had almost doubled since the station had opened, making the freight facilities inadequate, with no room for expansion.

This scheme had been proposed by the South Eastern and Chatham Railway before World War I, but work did not commence until 1925.

The tunnel was sealed and abandoned, and the former Ramsgate Harbour station was sold to Thanet Amusements, who converted it into a zoo and funfair called Merrie England.

[11] Although adequate for the town's residents the new stations were a long way from the seafront attractions, which were at the foot of a steep hill.

The day-trippers on whom Ramsgate's tourist industry depended were therefore increasingly attracted to Margate, where the station was next to the beach.

A third rail system was rejected due to concerns for the safety of the large numbers of children expected to use the line,[12] and the locomotives had trolley poles drawing power from a single 400-volt DC overhead line running the length of the tunnel.

The company hoped to have the line open in time to serve the large crowds expected on the August Bank Holiday, leading to a very tight construction deadline of three months.

[18] As the journey would take place entirely underground it was decided to line the wider, original tunnel with illuminated displays showing scenes from around the world.

[19] The red train was modified so that it could also be split, reducing its capacity to 102 as the two rows of seats at the centre were replaced by driver's cabs.

[5] Initially, the tunnel was decorated with illuminated scenes depicting Switzerland, Canada, the Netherlands, Japan and Egypt.

Throughout the 1937, 1938, and 1939 seasons the railway operated between Whitsun and the end of September each year, closing for the autumn and winter.

Ramsgate's location on both the English Channel and North Sea and its proximity to the Thames Estuary, its large port facilities, and its close proximity to RAF Manston made it a likely target for heavy aerial bombing and as a landing site for any German invasion of Britain.

[26] The line was not included in the 1948 nationalisation of the railways and so remained in the hands of Ramsgate Olympia (later Pleasurama).

[15] Part of the chalk cliff near the lower terminus collapsed in 1957, forcing the railway's closure while a strengthening concrete wall was built.

The second track at Hereson Road was closed at the same time, and removed to build a short siding near the bottom of the tunnel for stabling the trains.

[27] At 2:15 pm on 1 July 1965, one of the two-car yellow trains lost control while approaching the lower terminus and ran off the end of the rails before smashing into a building.