Well I suppose they are not going to deliberately build a loop that is to short.
Are they talking of trains of up to 23 wagons with each wagon being longer than what is previously been used? This seems to me to be longer than the loop at Green Lane, and presumably they would want to plan for the future as well.
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The way they though in those days was that if they didn't need a rail line then, they were never going to need it in the future.
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If you look at the current image on Google Earth there is a freight train on it at the new loop looks long enough.