The original Cornwall Railway Act had provided for a terminus at Falmouth on the waterfront at Greenbank. By the time the line was built the packet ships, which had been the commercial justification for the line, no longer called there. Instead new docks had been constructed near Pendennis Castle to which the railway was diverted. The grand Falmouth Hotel was opened in 1865 just outside the station, with sea views across Gyllyngvase beach. The railway, Falmouth docks and hotel companies shared several directors, the hotel company even leased the refreshment rooms on the station.