As early as 1888 the British trading company
Butterfield and Swire had sought to build this railway but were unsuccessful in gaining permission. In late 1903 a group of affluent overseas and Hong Kong Chinese, headed by
Cheong Yuk Nam (pinyin: zhāng yù nán, 张煜南) and his brother Cheong Hong Nam (aka.
张耀轩,
Tjong A Fie), invested a total of $300,000 and registered the Chao Chow and Swatow Railway Company with the Chamber of Commerce in Peking (Beijing) and also under Hong Kong laws. Cheong, who was Director-general of the company, had amassed a fortune from
sago plantations in Sumatra and from other enterprises in Penang and South China. He was assisted by another prominent businessman,
Lim La Sang (pinyin: lín wéi chāng 林为倡), who was appointed Managing Director. Lim, a Fukienese, had been educated in Hong Kong and had then made a fortune as a leading tea merchant in Formosa. In 1904 the contract for construction of the project was awarded to Japanese trading company
Mitsui Bussan Kaisha for which Lim himself was an agent. ==Construction==