A rail–steam–rail link was proposed by BC Premier Amor de Cosmos in 1871, but then voted down by the Victoria City Council.
[2] After receiving tax concessions and various loans, final surveying and grading soon began on the route which passed through nearly every important community on the way.
In 1894, service began from Topaz Avenue (close to the Mayfair Mall today) to downtown Sidney (intersection of Beacon Ave. and 1st).
Timber and cord-wood logging was a key industry in the area and provided a major source of freight revenue for the line.
In the early days of operation, the train proved popular for excursions to the agricultural fairs at Saanichton and for picnickers travelling to Bazan Bay, just south of Sidney, and other areas of the peninsula.
[3] In 1903, the VTRF opened the short Cloverdale–Port Guichon railway link, and commenced the Port Guichon–Sidney train ferry that connected with the V&S.