Passenger service on the peninsula corridor began on Oct. 18, 1863 under the authority of the San Francisco and San Jose Railroad Company.  Prophetically, some $600,000 of the original $2 million capital stock issue was owned by the voters of San Francisco, San Mateo and Santa Clara counties following a three-county election in 1861.

In 1870, the San Francisco and San Jose Railroad Company was acquired by the firm that was consolidated eventually into the Southern Pacific Railway. S.P. double-tracked the line in 1904, and operated passenger service in the corridor successfully until after World War II.

Changing commute patterns impacted Southern Pacific along with private carriers all over the country, and after protracted struggles with the state Public Utilities Commission on fares and service levels, SP petitioned to abandon passenger service in 1977.

Once more, the three Peninsula counties stepped into the breach with a temporary Fare Stabilization Plan -- partially subsidizing commuter tickets -- that reversed a long pattern of declining ridership and set the stage for state sponsorship of the Peninsula Commute in 1980.

From 1980 until mid-year 1992, Caltrans contracted with SP to provide passenger service in the corridor, sharing operating subsidies with San Francisco, San Mateo and Santa Clara counties.  The state assumed sole responsibility for station acquisitions and other capital improvements until the service resulted in formation of the Peninsula Corridor Joint Powers Board in 1987.  The JPB agreed to assume operating responsibilities for Caltrain effective July 1, 1992, and to shoulder 100 percent of the operating subsidy a year later.

In December 1991, the JPB purchased the rail right of way from San Francisco to San Jose.  The JPB secured trackage rights to Gilroy for another $4 million, with an option to acquire half the right of way in the future. SP retains rights to operate freight service in the corridor.

To replace SP as the commute operator, the JPB signed Amtrak, the national rail corporation, to a three-year agreement with two one-year options beginning July 1, 1992.  The contract was extended through September 2001.  Contract oversight is provided by the Joint Powers Board.  The JPB signed a new contract with Amtrak, the National Railroad Passenger Corporation, on November 1st, 2001.  This contract agreement will be effective for a five-year term.

As its legacy to the JPB, Caltrans has deeded 26 stations, 20 diesel locomotives and 73 bi-level passenger cars to the local agency.

The above is from the CalTrain website.