 The company was formed by William Busby and Daniel Busby in 1871 as an amalgamation of the Birmingham and Staffordshire Tramways Company Ltd and the Birmingham Tramways Company Ltd.It built a standard gauge tramway line in 1872 from Hockley Brook to Dudley Port operated by horse trams.In 1873 the service was extended to the centre of Birmingham over the Birmingham Corporation tracks which were leased for £910 over seven years.