This is the second part of a survey of Iberian railways and tramways in 1963, when the author and his friend Larry Veysey made a long circular tour of the Peninsula. In 1963 the traditional tramways were large and busy, though already in the sights of modernizing bureaucrats. The broad-gauge national RENFE and most independent railways were still largely powered by steam; many passengers rode in wood-bodied coaches. Much of the railway scene was comparable to that of North America around 1910. Volume I covered the railways and tramways of Catalonia. Here we make a loop south along the Mediterranean Coast to Valencia and Alicante, inland to Granada, and north via Madrid and Leon to the Costa Verde along the bay of Biscay.