In 1839 Henry Schneider arrived as a young speculator and dealer in iron, and he discovered large deposits of haematite in 1850. He and other investors founded the Furness Railway, the first section of which opened in 1846 to transport the ore from the slate quarries at Kirkby-in-Furness and haematite mines at Lindal-in-Furness and Askam and Ireleth to a deep water harbour near Roa Island. The crucial and difficult link across Morecambe Bay between Ulverston and Carnforth on the main line was promoted, as the Ulverston and Lancaster Railway, by a group led by John Brogden and opened in 1857. It was promptly purchased by the Furness Railway .
The docks built between 1867 and 1881 in the more sheltered channel between the mainland and Barrow Island replaced the port at Roa Island. The increasing quantities of iron ore mined in Furness were then brought to Barrow to be transported by sea.
The investors in the burgeoning mining and railway industries decided greater profits could be made by smelting the iron ore into steel, and then exporting the finished product. Schneider and James Ramsden, the railway's general manager, erected
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