The idea for the railroad was officially started in 1880, when the president of Mexico, General Manuel Gonzales, granted a rail concession to of Albert Kinsey Owen of the Utopia Socialist Colony of New Harmony, Indiana, who was seeking to develop a socialist colony. Financial difficulties, spurred by the cost of building a railroad through the rugged canyons, plagued the project, and it wasn't until 1961 that the ChP was completed.
In 1998, the private rail franchise Ferromex took over the railroad from the Mexican government, which had operated all railroads since 1940. In general, two trains run daily: one a slightly slower service with more stops for locals, and one a direct, more expensive service for tourists.