The London, Chatham and Dover Railway opened a second line to Ramsgate on 5th October 1863. This line ran from London via Herne Bay, Margate and Broadstairs before descending to sea level at Ramsgate through a 1,124-yard (1,028 m) tunnel to Ramsgate Harbour station, on the seafront immediately adjacent to the harbour.

Although very conveniently sited for passengers, Ramsgate Harbour station presented severe operating difficulties. Its situation at the end of a steep gradient in the tunnel meant there was the constant risk that an out-of-control train would run through the station onto the beach, as happened on 3 August 1891 and 24 March 1915. Cramped conditions allowed no room for station growth or improvement, and the small turntable meant larger engines could not be used, so heavier trains needed two engines to haul them up the tunnel's gradient. Additionally, by the 1920s the population of Ramsgate had almost doubled since the station had opened, making the freight facilities inadequate, with no room for expansion.<1>

Following the railway grouping of 1923, the South Eastern & Chatham Railway became part of the newly formed Southern Railway, which decided to address the duplication of lines and stations at Ramsgate and Margate. It decided to link the two lines at Ramsgate to allow through running between them. This scheme had been proposed before World War 1, but work did not commence until 1925. This meant the closure of the terminus stations at Ramsgate Town and Ramsgate Harbour, and the construction of a line skirting the northern edge of the town to link the two existing lines. New stations on the north-eastern and north-western fringes of the town, called Dumpton Park and Ramsgate respectively, replaced the existing stations in the town and at the harbour. Construction work on the new line involved over 700 men moving 200,000 tons of chalk, at a cost of approximately £500,000 (£29 million in 2022).
The new link opened on 2nd July 1926, from which date both former Ramsgate stations were closed along with the line through the tunnel to Ramsgate Harbour. The tunnel was sealed and abandoned, and the former Ramsgate Harbour station was sold to Thanet Amusements, who converted it into a miniature zoo and funfair called Merrie England.
Although adequate for the town's residents the new stations were a long way from the seafront attractions, which were at the foot of a steep hill. The day-trippers on whom Ramsgate's tourist industry depended were therefore increasingly attracted to Margate, where the station was next to the beach.<2>

<1> Ramsgate Tuunnels, Ramsgate Tunnels - The Beginning (Website). SKE56207.

<2> Ramsgate Tuunnels, Ramsgate Tunnels - Closure of Ramsgate Harbour Station (Website). SKE56209.