A railway company was created in 1891 with the aim of connecting the port of Tanga at the Indian Ocean with Lake Victoria by passing south of the Usambara Mountains.

In 1914, a train ran daily from Tanga to Buiko and back, and twice a week, the service continued to and from Moshi.

From the Tengeni station to the town of Sigi, there was a branch-line of 23.3 km (14.5 mi) constructed with a 750 mm (2 ft 5+1⁄2 in) gauge, possessing four switchbacks on its course.

Under German rule in 1913, the Usambara Railway operated 18 locomotives, 31 carriages and 199 trucks with 562 employees (of which 35 were Europeans).

After construction of the connection to Voi, traffic between Arusha, Moshi and the coast was directed to the port of Mombasa, and the eastern part of the Usambara Railway was reduced to a local service.