The initial three kilometre section was privately built to link the Millaquin Sugar Refinery on the eastern outskirts of Bundaberg to the North Coast line, opening on 9 July 1894.
Woongarra Shire Council funded a 20 km extension of the line further east via East Bundaberg, Bunda Street, Rubyanna, The Grange and Mon Repos to service a sugar mill at Qunaba (derived from Queensland National Bank), then south via Neilson Park, Bargara and Hollands to service mills at Windermere and Pemberton.
The extension opened on 3 December 1912 at which point the Queensland Railways Department purchased the line as far as Woongarra Junction (located near the Millaquin mill).
[2] Neilson Park had a beach and with a railway connection soon became a popular seaside destination and "excursion" trains operated on the route.
Despite running at a loss, the Queensland Railways Department purchased the remainder of the line (from Woongarra Junction to Pemberton) on 1 January 1918.