Forest of Dean Central Railway decided that the sections from the South Wales Railway to New Fancy Colliery, and from Moseley Green to Foxes Bridge with the branch at Brimspill, should be built in two successive years. Plans were already being made for extending the line, and on 29 November 1856 an application was published for the "Forest of Dean Central, Lydbrook & Hereford, Ross & Gloucester Junction Railway". This would extend the Forest of Dean Central Railway to the Hereford, Ross and Gloucester Railway line near Mitcheldean Road station, with a later extension to Ledbury. This was presented to Parliament in the 1857 session,
Forest of Dean Railway services in country districts began to be a real cause of competition for the railway. The GWR was seeking methods of catering economically for light passenger traffic, using steam railcars. These consisted of a passenger coach into which was built a four-wheeled steam locomotive, duplicate driving controls being provided at the opposite end from the locomotive. The very limited power of the small traction unit was always an issue, and on the steeply graded Forest of Dean Railway section it proved impracticable. Instead higher capacity units known as auto-trains, consisting of a tank locomotive coupled to one or two coaches