the company was formed in 1976. it obtained a lease from septa to operate freight trains on the octoraro branch, a former pennsylvania railroad branch line, between chadds ford, pennsylvania and the state line near sylmar, maryland. it also leased the wilmington and northern railroad, a former reading company branch, from elsmere jct. (wilmington, delaware) to south modena (modena, pennsylvania). the company then created a connection between the two lines at chadds ford.