Saurashtra Railway came into being in April, 1948 with the amalgamation of state railways like Bhavnagar State Railway, Gondal Railway, Porbandar Railway, Jamnagar & Dwarka Railway, Morvi Railway, Dhrangadhra Railway, Okhamandal Railway, Junagadh State Railway, Baria Light Railway, Rajpipla Railway, Bhavnagar Tramway, etc.
Upon the independence of India and the merger of various Princely States into the Union of India, it became necessary to merge various State Railways owned by these Princely States into one. As the various states of Saurahstra and Kathiawar were merged to make Saurashtra State. The Government of India, similarly merged the various State Railways of Gujarat into a separate entity called Saurashtra Railway.
On 5 November 1951, Saurashtra Railway along with Bombay, Baroda and Central India Railway, Rajputana Railway, Jaipur State Railway & Cutch State Railway were merged and Western Railway came into existence.