In 1905 the Railway and all property owned by the Redhead Coal Mining Company was sold to a new Company, known as the New Redhead Estate and Coal Mining Company, and during that year an act was passed transferring all the rights of the old to the new Company.
To meet the needs of the local people at Dudley and Redhead slight alterations were made so the train service to Dudley, early in 1906 viz:- The 5.50 p.m. train from Newcastle to Dudley would run every day, the 8.40 a.m. train Dudley to Newcastle would start at 8.10 a.m. and run every day. Connecting with these alterations the Scottish Australian Company ran additional trams leaving Burwood Extended Colliery at 7.55 a.m. and 6.00 p.m. on Mondays to Fridays, and on Saturdays the 8.25 a.m. tram from Burwood Extended was altered to 7.55 a.m. These alterations gave the Dudley residents a three times a day service with connections to Redhead.
In August 1904, a crossing loop was put in at 1 mile 45 chains from Adamstown and named Redhead loop, it was renamed Fernleigh loop on 12 January 1925, and sidings were put in to the Burwood No.3 (late Burwood), Dudley and Burwood Extended Collieries as required. Signal boxes were opened at Dudley Junction, and Lambton 3 Junction on 3 June 1910 and 4 February 1909 respectively.
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