The Isle of Man’s railways suffered £3.5m losses in the last year.

The Department of Infrastructure (DOI) development plan for 2024-25 has revealed the heritage lines, which includes the steam railway, electric trams and horse trams, generated £2.2m but expenditure ran to £5.7m which means they ended £2.25m in the red.

The sustainability of the heritage lines has already come under scrutiny with SYSTRA , a consultancy and engineering firm, publishing a report earlier this year which said a 10 to15 year strategy was needed to secure their long-term future.

Despite the losses, SYSTRA did reveal the heritage lines benefited the Manx economy to the tune of £17m each year by attracting visitors who then book hotels, eat out at restaurants, etc.

However, the DOI concedes a review being undertaken will need to address the losses being incurred.

In the report, the DOI says: ‘The ‘Heritage Railways Independent Review’ will be used to inform the shape and direction of the business, but in the current financially challenging times the significant funding for this tourist attraction will come under renewed scrutiny.’

The report reveals visitor numbers to the heritage rails were down slightly on last year but still up from two years ago, standing at 556,069. Last year the numbers were at 582,952 and 494,045 in 2022.

The DOI said: ‘Isle of Man Railways’ primary function is to provide an attractive, safe, and enjoyable railway experience for our visitors, including organised and cruise ship tourists.

‘The significant value added to the Island’s visitor economy by the railways, reinforces the importance of heritage rail.

‘The 2024 summer season commenced on March 12, 2024 and proved to be busy, although not reaching the record peak of the previous year, due to the unusually poor weather experienced throughout the season.

‘Nonetheless, the Douglas Bay Horse Tramway and the IoM Steam Railways experienced an increase in passenger numbers.’

The DOI outlined the expenses incurred in running the rail services.

It said: ‘As well as the buildings, rolling stock, farm and the 20 horses, the Division manages some 100km of railway track across the length of the Island, undertaking regular inspections, maintenance and targeted management of the assets, either within our own team or using local contractors, with whom we have built strong working relationships.’

The report by SYSTRA, published in January, said the Isle of Man's railways need a 10 to 15 year development strategy to ensure that they continue to return a positive investment for the Manx economy.

The DOI report also revealed the costs of running the island’s buses which carries 12,000 passengers each day. It says the income is £5.2m but costs £12.1 to run.

The DOI says: ‘It is appropriate to review the operating model from time-to-time to ensure that the public investment is being directed in the most appropriate way.

‘A high-level review will be completed before the end of 2024 and the transition process of changing the service provision and fleet design will start after that.’