The H&SW was created in spring 1901 when Mackenzie and Mann approached the provincial government with plans to finish the abortive plans for a railway from the City of Halifax to Yarmouth. Experienced railway engineers, MacKenzie and Mann already owned 2,000 miles in track in Canada by this time. On July 1, 1902, the H&SW purchased the NSCR with its line from Mahone Bay to Bridgewater, forming part of the new mainline between Bridgewater and Halifax. The new construction between Halifax and Mahone Bay was completed by 1904.