The electric railway was first opened in 1893 between Douglas and Laxey. At the turn of the century the line was extended to Ramsey. It was used for public transport. It was also used for the transportation of goods and animals. In conjunction with the Steam Railway it meant that during the early part of the century there was a railway system available for people wanting to travel down either the East or West coasts. A horse tram service from the Douglas tram station would take passangers to and from the Sea Terminal.
1994 saw the centenary celebrations of the line between Laxey and Douglas. 1995 saw the centenary celebrations of the line between Laxey and the summit of Snaefell. Both these celebrations drew enthusiasts from around the world.
It is now mainly a tourist attraction rather than a means of general transportation. A full service is run during the summer months with a minimal service during the autumn and winter.