Japan Government set up the Hualien Port Agency of Railway Department in charge of planning and executing the construction of the Eastern Line in 1908 in order to accelerate the development of eastern Taiwan, to carry out the government policy efficiently, and to transport rice, sugar canes, sugar, timbers, and minerals.
After World War II (1945), the Eastern Line was operated with the old facilities which were used during the Japanese colonized period. Steam locomotives were used to tract rail vehicles. All freight trains and coaches were made of woods except freight flatcars. Since there were problems caused by the steep slope, many curves, and small curve radius, the speed and traction tonnage of the trains was low. The average running time of the coach was around 8 hours, and the average running time of freight train was over 12 hours. Coaches and freight trains were inefficient and uneconomical, and did not meet the social modern requirements. Thus, Taiwan government started to modify this line during the beginning of the ‘50s. Diesel locomotives were implemented for all coaches after May 5, 1957. Limited Express started for business operation on July 1, 1964. Kuang Hua Express started for business operation on October 10, 1967. It reduced the average running time of the coach to 3 hours and 10 minutes. Diesel locomotives were implemented for all freight trains after January 1, 1969. Thus, the Eastern Line had entered a new dimension.
Yu-Li station is located on the center of Hua-Tong East Rift Valley. It is 84.1 kilometers away form Hualien Station and has a distance of 78.1 kilometers to Taitung. It leans against the central mountain. Coastal Mountain is in its east and Siou Gu Luan River is between Yu-Li station and Coastal Mountain. The Eastern Line between Hualien and Yu-Li is along the Rift Valley Plain and the roots of the central mountain. It heads east across Siou Gu Luan River to reach the roots of Coastal Mountain and heads south after leaving Yu-Li. The trains on the Eastern Line shuttle between the roots of the mountains and the rift valley in a roundabout way.