Why did Newfoundland build a trans-island railway in the late 19th century?

In the late 19th century, Newfoundland constructed a trans-island railway primarily to diversify its economy. Following the rejection of joining the Canadian confederation in 1869, the island needed to establish itself as an independent political unit by moving beyond its traditional reliance on the fishery.1

The government hoped that the railway would stimulate the development of land-based industries, such as mining and forestry. While the results of this initiative were initially limited, the railway did facilitate the growth of these sectors by the turn of the 20th century. The narrow-gauge line, built during the 1880s and 1890s, ran from St. John’s to Channel–Port aux Basques, connecting major bays and eventually linking to the mainland Canadian rail system via ferry in 1898.12