Construction of the extension to Cheadle started in 1893. A new colliery, christened New Haden Colliery, was opened at Draycott and the line was already in operation for goods traffic up to this point. The new piece of line involved the building of a difficult tunnel. This passed through a ridge of high ground of sandstone before turning east and running to a station on the southern outskirts of Cheadle. The new section was also beset with financial problems and it was not until 1 January 1901 that the line opened in its entirety.