A Yeovil south to west chord has been discussed at various points on these threads:
Network Rail have published a study about the WoE line, particularly the Salisbury - Exeter section, which can be seen here: https://www.networkrail.co.uk/wp-content/uploads/2020/07/West-of-England-Study-Continuous-Modular-Strategic-Planning.pdf Whilst it's a long document, the first 9 pages...
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Given how minor a road the A35 is- busy perhaps, but it is narrow, twisty and goes through villages, not round them- there's an implication that the transport corridor is either A: low in demand B: hugely underserved and in need of massive investment to unlock demand or C: goes through a very...
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To answer some of the points raised:
The chord was completed and installed, but only connected to the goods yard south of the station (It may have had a connection to the southernmost loop platform).
To put it back as was would require a significant rebuild of the heritage center as they have shuttle tracks on the old alignment, and the south island would need to be moved/demolished to allow a junction with NR tracks cutting across the railtour connections. There are several feasible options for how it could be built on either a new or the old alignment.
Ways to improve connectivity between Yeovil Junction and Yeovil Pen Mill are being considered as part of a study into connectivity on the Heart of Wessex Line.