Port Shepstone was founded in 1867 at the mouth of the Mzimkulu River, when marble was discovered nearby. The town was named after Sir Theophilus Shepstone from the government. A harbour was then built by William Bazley, and on 8 May 1880 the first coaster entered the harbour. In 1882 a party of 246 Norwegian immigrants settled here permanently. In 1901 the creating of the railway caused the harbour to fall in disuse and the river silted up again and made the harbour redundant.