In 1860 a project was launched to build a rail or tram way from Montevideo to Durazno, known as "Ferrocarril a Durazno", but the scheme failed on the grounds that it would interfere with an existing road and because the promoters had no connection with public men of Government.On October 4, 1868, the Directors arranged an inaugural trip. The President of Uruguay, Gral. Lorenzo Batlle, arrived at Bella Vista at eleven on that morning, and shortly afterwards a train consisting of three carriages, drawn by locomotive Nº 1 named "General Flores", left Bella Vista for La Paz River, about 2½ miles before Las Piedras. The line was not completed until the 22nd. of that month, reaching Las Piedras. The Directors decided to open the line formally on January 1, 1869. That morning the train arrived at Las Piedras, and there was a display of fireworks. The first railway in Uruguay was brought into public use on that day.

When completed, the railway consisted of 10 miles 4 furlongs of standard gauge single line. Gradients were not numerous, the sharpest being 1 in 60. There was also two curves, having a radius of 20 chains. Two small bridges were necessary; the arches of which were brick on stone or masonry abutments. In addition, a number of culverts were erected. Stations were built at Bella Vista, Pantanoso (now Colon) and Las Piedras.