Port Albert was the original terminus station on the South Gippsland railway line, the railway opening to that station on 13 January 1892.Built for the Gippsland Gold rush and cattle trading, The line branched off the Yarram/Woodside line (which forked off from the Wonthaggi line at Nyora) at Alberton and travelled a short distance to Port Albert.

Early survey documents regard the station site as "Palmerston" station ground.Victorian Railways - Original Plan & Section Book c. 1888

The last advertised trolley service ran on 14 February 1949.

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