According to "research" by the Rev. W Awdry, the railway was the brainchild of the tourist-minded Mid Sodor Railway, who had hopes to extend their line beyond Peel Godred to Kirk Machan at the foot of Culdee Fell, where passengers could board a rack railway to the summit.
The railway was closed in 1947, but three of its engines survive on the Skarloey Railway.
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The MSR was responsible for the creation of the Culdee Fell Railway although there was no connecting station for the two lines.
In The Railway Stories books, all of the steam engines are painted the same bright red colour with simple blue lining (except for Duke, who retains the dark red-brown paint from his days on the Mid Sodor Railway).
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Whilst Skarloey retained his Railway Series colour (With the exception of white and yellow lining), Sir Handel and Peter Sam retain the colours that they wore when they were named Falcon (blue) and Stuart (green) on the Mid Sodor Railway.
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Eventually, Skarloey failed and Rheneas was left to manage alone, which he did admirably until Peter Sam and Sir Handel were bought from the Mid Sodor Railway to help out.
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