Immediately following the 1888 opening of the railhead in Beaudesert, farmers south of the town began to seek an extension to Rathdowney.
The district dairy farms stretched south along the fertile banks of the Logan River. Sheep had proved unsuitable in the district, and the low price of beef resulted in cattle being sent to the boiling down works.
Dairying was the answer, but milk and cream are perishable and require rapid transport to market. A rail service would also give better access to market for pigs and calves, an important by-product of the dairy industry. Poor road conditions, especially in times of flooding would also be overcome; The railway would also provide a valuable service to the growing timber industry.
Following the passing of the Railway Construction Guarantee Act in 1895, the Tabragalba Divisional Board, forerunner of the Beaudesert Shire Council. borrowed £50,000 from the Government and in 1901 the first section of the track, Beaudesert to Tabooba was opened. This was followed by the Tabooba to Lamington Section in 1910. Tabooba to Rathdowney followed in 1911. The tramway brought a vast improvement to the life of the residents south of Beaudesert as the trams also carried passengers.
At its peak, the Tramway had a staff of 36; Tabooba, the junction of the lines to Lamington and Rathdowney, developed into busy railway complex. Five workers cottages were constructed, and locomotives were cleaned and serviced on site.
Although called a tramway, this line was in fact a narrow gauge railway line, using the same rolling stock as all main rail lines in Queensland. The tramway ended in the Beaudesert rail yard, but was never connected to the main line. The last tram, driven by Jo Messinbird, arrived at the Beaudesert terminus in 1944.