Soon, in 1895, the Galt and Preston Street Railway became the Galt, Preston and Hespeler Street Railway, with the authorization of a branch line from Preston to Hespeler. The Hespeler branch line was constructed on a private right of way rather than running in the street, and the street railway company upgraded its freight service with an electric locomotive provided by the Canadian General Electric Company of Peterborough. A number of industrial sidings were constructed to serve freight customers along King Street, providing street-level urban freight rail service to three large Preston furniture factories, as well as a coal yard, wood yard, flour mill, and stove and furnace foundry.