Queensland Rail Limited also known as Queensland Government Railways was established in 1865. The railway stretched from coastal ports such as Brisbane, Cairns and Rockhampton, inland for the transportation of farming produce for exportation. The first railway line was built from Ipswich inland to Grandchester in 1864 and the first passenger train service ran on 31 July 1865. The line was extended to Darling Downs and Brisbane in 1875. Between 1899 and 1915, a large network of privately owned railways lines was built by mining magnate, John Moffat, which included Mungana, Mount Molloy, Mount Garnet, Mount Mulligan and the Etheridge mining field. As a result of falling share and copper prices, the Queensland Government took over these railway lines in 1919. A major restructure on 1st July 1991 with the introduction of the Transport Infrastructure (Railways) Act meant that Queensland Rail would begin to operate on a commercial basis as a State owned corporation.

In accordance with the Queensland Rail Transit Authority Act 2013 (QRTA Act), Queensland Rail ceased being a government owned corporation from the 3rd May 2013 and the company became a wholly-owned subsidiary of this statutory authority.