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Goraghwood was opened on 6 March 1854 on the Dublin and Belfast Junction Railway. From 1864 the Newry and Armagh Railway (N&A) ran trains as well to its own temporary terminus just outside Armagh until it started using the Ulster Railway's Armagh railway station in 1865.
Goraghwood was an important junction on the Dublin to Belfast railway line with branch lines to Armagh and another to Newry town station and Warrenpoint. The line to Armagh closed in 1955 and to Newry in 1965.