The current site of Takao Railway Museum is the former site of Kaohsiung Port Station. It is also the earliest site of Kaohsiung Station. Since November 1900 when the Southern leg of the Trunk Line began operation, a temporary Takao Station was built 800 meters north of the current museum site. Initially an intertidal zone containing lagoons, the Railway Administration used sand to create fortified tidal land. In 1908, when the whole Trunk Line was opened for transportation, the first Takao Station was moved to the current site. In 1941, as a complement to a new urban planning project, a new Kaohsiung Passenger Station was built in Tai-káng-tsng. It was at this time that passengers and freight had separate stations. Passengers on the Trunk Line were transported to what is now Kaohsiung Station; the old station then renamed as Kaohsiung Port Station was for freight only.

For the last 100 years, Kaohsiung Port Station had been the largest freight station in Taiwan and has played a critical role in the development of Taiwan’s economy, hundreds of trains passing through every day and night. In modern times, however, railway freight transportation has been acutely affected by the ease and accessibility of highway transportation. By the end of the 20th century, the railway freight business had plummeted.

Kaohsiung Port Station is the most meticulously conserved freight station in Taiwan, and as such, a rich source for railway history. In October 2010, the Cultural Affairs Bureau of Kaohsiung City Government adopted the station and transformed it into the Takao Railway Museum. The museum presents the original setup of the 60’s and 70’s, the prime time of railway freight transportation in Taiwan, for the enrichment and enjoyment of visitors.In 2008, due to the Kaohsiung Railway Underground Project, the Kaohsiung Port Station was closed for business.