This railway’s history really starts in 1922 when the Welsh Highland Railway was formed by the linking of two much earlier railways, the North Wales Narrow Gauge Railways and the Croesor Tramway, by a new line between South Snowdon (Rhyd-Ddu) and Croesor Junction, some 8¼ miles in length.
On 30 March 1922 a new company under the Light Railways Acts of 1896 and 1912 called the Welsh Highland Railway (Light Railway) Company was created. It acquired from the 1 January 1922 the undertakings of the North Wales Narrow Gauge Railways (NWNGR) and the Porthmadog, Beddgelert and South Snowdon Railway Co (PBSSR) together with the powers of these companies relating to the building of railways between Caernarfon and Porthmadog. The authorised capital of the company was £120,000, but only £90,000 was issued, fully paid, to the two undertakings acquired, in lieu