The Anglo-Newfoundland Development Company Limited was incorporated in 1905 with the aim to "own and operate paper mills, timber limits, and such railway facilities as might be required for their business". The A.N.D. Company purchased Newfoundland Timber Estates timber limits and also purchased 204,000 acres of Reid-owned lands. This vast enterprise was the start of development in Central Newfoundland.

When construction of the mill at Grand Falls began in 1905, a railway line was built, connecting the mill site with the Newfoundland Railway. A station was built by the railway, called Grand Falls Station. The Newfoundland Railway transported construction materials, supplies, equipment and workers for this vast project. The port of Lewisporte, connected to the main line in 1898, played an important part in providing this service. In 1907, Albert E. Reed started construction of a wood pulp mill and generating plant at Bishop's Falls, some 11 miles downstream, and in 1908, construction of a railway line from Grand Falls to the seaport of Botwood was begun. This narrow gauge line, which connected with the mill in Bishop's Falls, was cost-shared with the A.N.D. Company which paid 75 per cent. The line was ready for service in 1910.

Davey Steele was hired to build the Botwood Railway. He was employed as roadmaster when he was acquired by the paper company and would later be employed as roadmaster on this railway.

Meanwhile, the Grand Falls mill was in production and shipped the first load of paper to St. John's in December 1909. Winter shipments would continue by rail to Heart's Content and later to St. John's until many years later when Botwood Harbour would be kept free of ice, allowing shipments year round. The Botwood railway brought coal, sulphur, china clay, limestone and oil to the mill site.

In 1916, the A.N.D. Company took over the railway and all shipping operations themselves. Several heavier steam locomotives were acquired in succeeding years. The first superintendent was Thomas Arklie, who held this position until his death in the late 1930s. In 1956, the Botwood Railway became a wholly-owned subsidiary of the A.N.D. Company when it was incorporated under the name the Grand Falls Central Railway Company Limited.

During its operation, wood pulp was transported from Bishop's Falls until Reed sold his operation to the A.N.D. Company in 1924 and an eleven-mile flume was built connecting the two mills, through which pulp was pumped until 1951. At that time, the production of pulp ceased, and this location was used solely for the production of electricity.

The last run was made on June 29, 1977, bringing to an end a memorable era lasting 69 years. The diesel locomotives and most of the cars were sold to Costa Rica, and the 50 miles of track, which included sidings and terminal spurs, were taken up and sold as scrap. The railway was used to move paper until it closed in 1977, when the task was taken over by tractor trailers.