Construction further northwards was difficult; Pencader tunnel was especially troublesome. Work had started in the Spring of 1857, but in the Autumn of 1861 the contractor abandoned the workings, and a substitute contractor had to be found. The Company obtained Parliamentary authorisation for a revival of the powers to build to Newcastle Emlyn on 29 July 1862 and for an extension to Cardigan, by Act of 1 July 1863. The Company was hopelessly insolvent and never managed to construct either of these sections in its own right.