Following the failure of the Tamar, Kit Hill and Callington Railway Company and the Saltash and Callington Company in the financial crisis of 1866, there was a break in the development of a railway linking the mines and quarries of the Callington and Gunnislake area with the river Tamar.

On August 9th 1869 a new undertaking was authorised, the Callington and Calstock Railway Company, with capital of £60,000.  It was to take over the work already carried out by the Tamar, Kit Hill and Callington Railway Company and was authorised to construct three sections of railway lines totalling 7 miles, 7 furlongs and 2 chains.  3 furlongs and 7 chains was to be laid on the Quay at Calstock; 3 furlongs and 3 chains was to be laid on the inclined plane; and 7 miles and 2 chains was to complete the line from the top of the incline to Callington.  The carrying of passengers was not permitted by the Act, which did, however, allow any choice of gauge between 3 feet and standard-gauge of 4 feet 8½ inches.  In the event, the Directors, who included Messrs Arthur Chandler, Vivian Gurney and James Rhodes, chose 3 feet 6 inches.

Construction began immediately and progressed rapidly until 1871, when it was decided to abandon part of the route at Callington and change the name of the business to the East Cornwall Mineral Railway, under which name the story continues.