The Ryde and Newport Railway company was formed in July 1872, when their Act of Parliament became law, with George Young running the railway as chairman.  Later in 1872, an initial agreement was made to set up a Joint Committee to manage both the Cowes and Newport Railway and the not-yet-built Ryde and Newport Railway.  This Joint Committee would include two directors from each railway to govern and operate the two railways as one organisation. 

However, it was 2 years later, in 1874, before a Bill was placed before Parliament to either amalgamate the two Railway or create the Joint Committee.  As there was opposition to the plans for amalgamation, the first recorded meeting of the Joint Committee did not take place until September 1875.

Initial progress building the Ryde and Newport Railway was swift, with land for the first few miles of the railway acquired in January 1873 and the Contractor requesting access to Blackbridge near Havenstreet; and then at Wootton in March 1873.  Construction was delayed in late 1873 by weather conditions, ground conditions and financial difficulties, but recommenced in March 1874.  Work at Newport was hindered while Cowes and Newport Railway, Isle of Wight (Newport Junction) and Ryde and Newport Railway debated the plans for the joint station in Newport.

The Ryde and Newport Railway opened to the public on 20^th December 1875, joining the port town of Ryde directly to Newport, and, via the Cowes and Newport Railway set up 13 years earlier, on to the other key port link to mainland England at Cowes.  The line was 8¾ miles long, and included travelling via Smallbrook junction, Ashey, Haven Street and Wootton stations, which form the current route of the Isle of Wight Steam Railway.