By the 1950s, a combination of factors was bringing about the need for the redevelopment of transport facilities at Margam. The steelworks had integrated under the British Steel Corporation, and the post-war planned Abbey Works had opened in 1951, and was fully operational by 1953. Further increases in the volume of goods handling at the port were restricted by the docks inability to handle the new bulk carriers, with the old docks unable to accept a ship of greater than. In 1966, work commenced on the construction of the new Port Talbot Tidal Harbour, south-west of the existing docks system. Completed in 1970, it was the first dry-bulk cargo terminal in the UK capable of accepting ships in excess of. British Railways was modernising freight distribution, with the former bespoke creation of manually loaded wagons being replaced by larger, bogeyed bulk-freight wagons that were automatically loaded. This resulted in a need for both larger yards to handle the larger wagons, and fewer yards as high speed freight traffic ran between them to reduce speed of delivery for the customer. BSC was becoming BR's most important customer, with coal traffic quickly falling. Hence, in 1960 the development and construction of Margam Knuckle Yard on a former landfill site to the west, along the lines of the PTR&D towards the Llynvi and Ogmore Railway, consolidated what was one of a series of new rail yard developments that supported major steel making facilities in the UK. The development at Margam also included the redevelopment of locomotive maintenance facilities, with the co-development of Margam TMD.
Operations
The strategy of BSC had resulted in an integrated facility plan, with Port Talbot at the centre of steel making system:
4.7million tonnes of raw iron ore used at Port Talbot/Llanwern steelworks
3.0million tonnes of steel produced at Port Talbot
However, British Rails biggest problem was the 1.7million tonnes of raw iron ore required to be transported by rail to Llanwern Steelworks. Marshalling 27 × 100-tonne iron ore tipplers, the train was initially headed by three Class 37/0's, which continually caused problems with their couplings. The amount of power was required to climb Stormy Bank, located just west of Margam, where the train would only reach at the top. Eventually replaced by two Class 56's, drivers reported that this combination could reach. After experimentation with two refurbished Class 37/7's, the company specially hired-in National Power's newly purchased Class 59/2. By January 2008, EWS was handling all 4.7million tonnes of steel product using either Class 60 or Class 66. With the closure of Margam TMD, locomotive maintenance had moved to Knuckle, with C-Class services and brake tests requiring locomotives to be shipped to Toton TMD. Margam Knuckle handles other goods shipped through the port, as well as regional traffic including shipments to/from RNAD Trecwn. The yard is about east of Port Talbot Parkway, with few facilities and no bridges by which rail spotters can see operations.
