Construction of the railway began in March 1867 with the ceremonial cutting of the first turf performed by local rector, the Reverend Rawnsley who was standing in for the railway company's chairman Lord Willoughby de Eresby. The railway was expected to be opened quickly but disputes with the contractors arose over the quality of their work and several lengths of track had to be replaced. With these problems finally fixed the official opening took place. Initial traffic levels and income were promising, however by 1885 rail traffic had slumped leading to the Great Northern Railway buying out the Spilsby & Firsby Railway Company for £20,000 through an Act of Parliament on 25 July 1890.