Twenty small industrial locomotives were built in 1950 by Malcolm Moore to 3 foot (914 mm) gauge for the Kiewa hydro-electric scheme in northeast Victoria. When this part of the project was completed, the locomotives were sold and six were purchased by the TGR and shipped to Tasmania. All were extensively rebuilt, before entering service on the TGR from 1958. Another two units, purchased by the Commonwealth Government, later came to Tasmania and were similarly rebuilt, but to metre gauge and were sent to Thailand as a contribution under the Colombo Plan. The modifications were extensive, with the small profile tunnelling loco body being replaced by a commodious full size cab, full running boards and railway fittings and draw gear.
The TGR stationed the units all over the State in yards wherever a small shunter was required. The Tasmanian locomotives were painted the standard red, with U3 latter fitted with automatic couplings, painted yellow and used as the locomotive depot shunter in Launceston. All units were written off in 1981, although U3 was soon reinstated and survived in its limited service for a few more years
In October 1960, the locomotives were allocated as follows: U1 - Wynyard, U2 - Launceston (probably under overhaul for part of the month), U3 - Stanley, U4 - Ulverstone, U5 - Smithton, U6 - Launceston (not used for the month, presumably in workshops)
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