Throughout this period, Swansea had been growing in importance as an industrial centre, and its docks had been much extended and enhanced. At the same time Llanelly Dock had stagnated, and its limitations were evident. The Swansea Vale extension line to Brynamman (aligned to the Midland Railway) and the South Wales Railway (by now absorbed by the Great Western Railway) gave easy access for local industry to Swansea, to the disadvantage of Llanelli. At the same time Carmarthen was an important centre in its own right, and the importance of the harbours on Milford Haven was growing. The Llanelly Railway and Dock Company (LR&DC) could not afford to ignore the potential of a connection to Swansea and Carmarthen, even though it would diminish the value of its own dock. Since the company was short of capital, the way forward had to include a means of financing the new lines. On successive days in October 1860, rival entrepreneurs waited on the Llanelly Board with proposals for connecting the line. Richard Kyrke Penson, Thomas Savin and a man named Johns proposed that the promote railways from Pontardulais to Swansea, from Llandilo to Carmarthen, and from Llandovery to
Brecon, which they would finance. Accordingly, they would take a ten-year lease of the Llanelly Railway and Dock; at the time the was only earning 1% and an apparently guaranteed 4% (after five years) appeared very attractive. The following day Henry Robertson appeared proposing joint construction of the Swansea and Carmarthen lines with the Central Wales Railway, and running powers over the Central Wales line from
Craven Arms, not far from
Shrewsbury on the
Shrewsbury and Hereford Railway. The directors favoured Penson and his partners, and the arrangement was agreed at a shareholders' extraordinary general meeting on 31 October 1860. The partners soon turned out to be insubstantial, as Johns and then Savin withdrew. Having lost their source of finance and project management, the proceeded with the Swansea and Carmarthen lines themselves, running into considerable practical and financial difficulties from landowners and otherwise in the process. The Central Wales Extension Railway was naturally keen for the lines to be completed, and it facilitated friendly contact with the
London and North Western Railway (LNWR) and the ; could not the finance the new railways; in fact would not full amalgamation be desirable? Proposals were worked up for a new line from Pontardulais to Swansea, taking a southern sweep through
Dunvant, where there were said to be extensive unworked coal measures. There was to be a branch from that line to
Penclawdd. A second line was to run from Llandilo back to Carmarthen, joining the
Carmarthen and Cardigan Railway (C&CR) at a junction at Abergwili, a mile or so north of Carmarthen. The was broad gauge at that time, and a third rail to make mixed gauge would need to be laid. Notwithstanding considerable opposition, the '''''' (
24 & 25 Vict. c. ccxvi) was passed on 1 August authorising these routes. The act separated the company for financial purposes into two undertakings, the "Original Line", and the "New Lines" (the Swansea line and the Carmarthen line). This seems not to have been intended for any other purpose than clarity of accounting, but it was later to encourage an unforeseen separation. The line at Swansea was to divide there, the passenger terminal being at a low level, and a high level line was to continue to the docks, crossing the
River Tawe. ==Opening to Carmarthen==