Originally known as the Blue Mountain and Reading Railroad, the railroad was founded in 1983 to provide freight service on the former Pennsylvania Railroad Schuylkill Division between Hamburg and Temple. Starting in 1985, the BM&R began operating passenger excursions over the line, and two steam locomotives, ex-Gulf, Mobile and Northern Railroad 4-6-2 425, and ex-Reading Company T-1 4-8-4 2102. The BM&R also began operating 3 additional state-owned lines. Additionally, the BM&R entered into a partnership with the Reading Company Technical and Historical Society who leased track space in Leesport and in return leased two diesel locomotives and assorted passenger cars for use on the line.