As early as 1888 the British trading company Butterfield and Swire had sought to build this railway but were unsuccessful in gaining permission.

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.

He was assisted by another prominent businessman, Lim La Sang (pinyin: lín wéi chāng 林为倡), who was appointed Managing Director.

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.

Yee Kai (pinyin yì xī, 意溪), in order to earn revenue from freight traffic when the low river prevented navigation by boat.