One of Sir Edward Watkin's first steps toward determining the technical feasibility of constructing a tunnel was to call in, sometime in the mid-seventies, William Low, whose own tunnel company had quite fallen apart, for engineering consultation. Watkin decided to aim for a twin tunnel based on Low's idea, which would have its starting point in the area west of Dover and east of Folkestone, and he put his own engineers to work on the job. In 1880, the engineers sank a seventy-four-foot shaft by the South-Eastern Railway line at Abbots Cliff, about midway between Folkestone and Dover, and began driving a horizontal pilot gallery seven feet in diameter along the Lower Chalk bed in the direction of the sea off Dover. By the early part of the following year, the experimental heading extended about half a mile underground. His engineers having satisfied themselves that the Lower Chalk was lending itself as well as expected to being tunneled, Sir Edward went ahead and formed the Submarine Continental Railway Company, capitalized at £250,000 and closely controlled by the South-Eastern Railway Company, to take over the existing tunnel workings and to continue them on a larger scale, with the aim of constructing a Channel tunnel connecting with the South-Eastern's coastal rail line. At the same time, he reached an understanding with the French Channel Tunnel Company on co-ordination of English and French operations; he also engineered through Parliament—he was an M.P. himself, and that helped things a bit—a bill giving the South-Eastern power to carry out the compulsory purchase of certain coastal land in the general direction taken by the existing heading.

Then Sir Edward's engineers sank a second shaft, farther to the east but in alignment with the first heading, 160 feet below a level stretch of ground by the South-Eastern Railway line at Shakespeare Cliff, just west of Dover, 120 feet below high water, and began boring a new seven-foot pilot tunnel that dipped down with the Lower Chalk bed leading into the Channel. This second boring, like the first, was carried out with the use of a tunneling machine especially designed for the purpose by Colonel Frederick Beaumont, an engineer who had had a hand in the construction of the Dover fortifications. The Beaumont tunneling machine, a prototype of some of the most powerful tunneling machines in use nowadays, was run by compressed air piped in from the outside, and the discharge of this air from the machine as it worked also served as a way of keeping the gallery ventilated. The cutting of the rock was done by a total of fourteen steel planetary cutters set in two revolving arms at the head of the machine; with each turn of the borer a thin paring of chalk 5/16 of an inch thick was shorn away from the working face, the spoil being passed by conveyor belt to the back of the machine and dumped into carts or skips that were pushed by hand along the length of the gallery on narrow-gauge rails. The machine made one and a half to two revolutions a minute, and Sir Edward estimated for his stockholders that with simultaneous tunneling with the use of similar equipment from the French shore—the French Tunnel Company had already sunk a 280-foot shaft of its own at Sangatte and was preparing to drive a gallery toward England—the Channel bottom would be pierced from shore to shore by a continuous single pilot tunnel, twenty-two miles long, in three and a half years. Once this was done, according to Sir Edward's plans, the seven-foot gallery was to be enlarged by special cutting machinery to a fourteen-foot diameter, and a double tunnel, thickly lined with concrete and connected by cross-passages, constructed. (Four miles of access tunnel were to be added on the French, and possibly on the English, side, too.) The completed tunnel was to be lighted throughout by electric light—a novelty already being tried out in the pilot tunnel by the well-known electrical engineer C. W. Siemens—and the trains that ran through it between France and Britain were to be hauled by locomotives designed by Colonel Beaumont. Instead of being run by smoke-producing coal, the locomotives were to be propelled by compressed air carried behind the engine in tanks, and, like the Beaumont tunneling machine, the engine was supposed to keep the tunnel ventilated by giving out fresh air as it went along. (A lot of air was to be released in the tunnel in the course of a day; a tentative schedule called for one train to traverse it in one direction or another every five minutes or so for twenty hours out of the twenty-four.)

Trains coming through the tunnel from France were to emerge into the daylight and the ordinary open air of England either from a four-mile-long access tunnel connected to the South-Eastern's railway line at Abbots Cliff or—this was a favored alternative plan of Sir Edward's—at Shakespeare Cliff via a station to be constructed in a great square excavated a hundred and sixty feet deep in the ground, which would be covered over with glass, lighted by electric light, and equipped "with large waiting rooms and refreshment rooms." From the abyss of this submerged station, trains arriving from the Continent were to be raised, an entire train at a time, to the level of the existing South-Eastern line by a giant hydraulic lift. (Actually, constructing an elevator capable of raising such an enormous load would not seem as unlikely a feat in the eighties as it might to many people now; Victorian engineers were expert in the use of hydraulic power for ship locks and all sorts of other devices, and, in fact, hydraulic power was so commonly used that the London of half a century ago had perhaps eight hundred miles of hydraulic piping laid below the streets to work industrial presses, motors, and most of the cranes on the Thames docks.)

As the experimental work progressed, Sir Edward Watkin saw to it that all the splendid details about the Channel-tunnel scheme were constantly brought to the attention of the South-Eastern's shareholders, the press, and the public. Sir Edward, besides being a nineteenth-century railway king, was also something of a twentieth-century public-relations operator. He was a firm believer in the beneficial effects of giving big dinners, a pioneer in the art of organizing big junkets, and an adept at getting plenty of newspaper space. An energetic lobbyist in Parliament for all sorts of causes, not excluding his own commercial projects, he was known as a habitual conferrer of friendly little gestures upon important people in and out of government, and his kindness is said to have gone so far at one time that he provided Mr. Gladstone with the convenience of a private railway branch line that went right to the statesman's country home.

The driving of the Channel-tunnel pilot gallery at Shakespeare Cliff offered Sir Edward a handy opportunity for exercising his gifts in the field of public relations, and he took full advantage of it. Week after week, as the boring of the tunnel progressed, he invited large groups of influential people, as many as eighty at a time, including politicians and statesmen, editors, reporters, and artists, members of great families, well-known financiers and businessmen from Britain and abroad, and members of the clergy and the military establishment to be his guests on a trip by special train from London to Dover at Shakespeare Cliff. There, at the Submarine Continental Railway Company workings, the visitors were taken down into the tunnel to inspect the creation of the new experimental highway to the Continent. A typical enough descriptive paragraph in the press concerning one of these visits (on this occasion a group of prominent Frenchmen were the guests of Sir Edward) is contained in a contemporary report in the Times:

The visitors were lowered six at a time in an iron "skip" down the shaft into the tunnel. At the bottom of this shaft, 163 feet below the surface of the ground, the mouth of the tunnel was reached, and the visitors took their seats on small tramcars which were drawn by workmen. So evenly has the boring machine done its work that one seemed to be looking along a great tube with a slightly downward set, and as the glowing electric lamps, placed alternately on either side of the way, showed fainter and fainter in the far distance, the tunnel, for anything one could tell from appearances, might have had its outlet in France.

Sir Edward Watkin, in a speech he made at a Submarine Continental Railway Company stockholders' meeting shortly after such a visit (the main parts of the speech were duly paraphrased in the press), found the effect of the electric light (operated on something called the Swan system) in the tunnel to be just as striking as the Times reporter had—only brighter.

He thought the visit might be regarded as a remarkable one. Their colleague, Dr. Siemens, lighted up the tunnel with the Swan light, and it was certainly a beautiful sight to see a cavern, as it were, under the bottom of the sea made in places as brilliant as daylight.

While on their way by tramcar to view the working of Colonel Beaumont's boring machine at the far end of the tunnel, visitors stopped after a certain distance to enjoy another experience—a champagne party held in a chamber cut in the side of the tunnel. A contemporary artist's sketch in the Illustrated London News records the sight of a group of visitors clustered around a bottle-laden table at one of these way side halts. Mustachioed and bearded, and wearing Sherlock Holmes deerstalker caps and dust jackets, they are shown, in tableaued dignity, standing about within a solidly timbered cavelike area with champagne glasses in their hands; and for all the Victorian pipe-trouser formality of their posture there is no doubt that the subjects are having a good time. After such a refreshing pause, the visitors would be helped on the tramcars again and escorted on to see the boring machine cutting through the Lower Chalk and to admire the generally dry appearance of the tunnel, and after that they would be taken back to the surface and given a splendid lunch either in a marquee set up near the entrance to the shaft or at the Lord Warden Hotel, in Dover, where more champagne would be served, along with other wines and brandies, more toasts to the Queen's health proposed, and speeches made on the present and future marvels of the tunnel, the forwardness of its backers, and the new era in international relations that the whole project promised. These lunches were also convenient occasions for the speakers to pooh-pooh the claims of the rival tunnel scheme of Lord Richard Grosvenor's Channel Tunnel Company, which was still being put forward, although entirely on paper, and to make announcements of miscellaneous items of news about progress in the Lower Chalk.

Thus, at one of these lunches at the Lord Warden Hotel held in the third week of February, 1882, Mr. Myles Fenton, the general manager of the South-Eastern Railway, took occasion to announce to a large party of visitors from London that boring of the gallery had now reached a distance of eleven hundred yards, or nearly two-thirds of a mile, in the direction of the end of the great Admiralty Pier at Dover. According to an account in the Times, Mr. Fenton read to the interested gathering a telegram he had received from Sir Edward, who was unable to be present, but who by wire "expressed the hope that by Easter Week a locomotive compressed air engine would be running in the tunnel, of which it was expected the first mile would by that time have been made. (Cheers.)"