The Callander and Oban Railway company was established with the intention of linking the sea port of Oban to the railway network. This involved a long line from Callander through wild and thinly populated terrain, and shortage of money meant that the line was opened in stages from 1866 to 1880.

Oban is a resort town within the Argyll and Bute council area of Scotland. Despite its small size, it is the largest town between Helensburgh and Fort William. During the tourist season, the town can have a temporary population of up to over 24,000 people. Oban occupies a setting in the Firth of Lorn. The bay forms a near perfect horseshoe, protected by the island of Kerrera; and beyond Kerrera, the Isle of Mull. To the north, is the long low island of Lismore and the mountains of Morvern and Ardgour.