The municipal council supported on 20 November 1900 an alternative with a separate station at the towns square, with a branch via Gausen to NSB's station. Estimated to cost NOK 43,000, this was the cheapest alternative. NSB opposed this, stating that it could cause operational problems for them at Holmestrand Station, but gave permission for the connection line on 26 August 1902. Laying of the permanent way started on 28 September 1901. The construction cost ended at NOK 881,000, of which the state paid NOK 364,000. The rest was paid for by municipalities and private individuals and companies. With the increase to gauge, a further NOK 100,000 was granted on 28 March 1896. The state increased its investments twice more as costs continued to increase, based on decisions in Parliament for a raise of NOK 74,000 on 29 May 1900 and a raise of NOK 30,000 on 20 May 1902. These increased fundings were met with equal increased local funding. A fatal accident occurred on 1 October 1902, when the final inspection was being carried out. The inspector had not been informed of an extra maintenance of way train, and he was run down while on the tracks. The official opening took place the following day, on 2 October 1902. HVB and TEB signed an agreement concerning the operation of the concurrent section. TEB was given the operational responsibility, although both railways were free to use it. All transshipment was to take place at Hillestad Station. Both companies retained their revenue, while HVB compensated TEB for part of the operating and maintenance costs. This included that the two lines would share a sixth of TEB's administration costs, based jointly on the number of trains and the revenue from the concurrent section. Any upgrades to the section would be split between the two companies. Operational costs were split based on the ratios of the number of trains and the number of axles. If the two companies could not agree on the calculation, NSB's district chief in Drammen would arbitrate. HVB bought tis first two steam locomotives from Krauss & Co. of Germany. They were numbered 1 and 2, and named "Holmestrand" and "Vittingfoss". The company also bought three two-axle passenger cars and twenty-four freight cars. In 1902, "Holmestrand" was sold to TEB, because they had problems with their locomotives. The railway bought three passenger carriages, one which also had a second class compartment.