Plot

Toby, a tram-engine with little work, gets a chance to spend time with people who truly appreciate him, like the Fat Controller whom he doesn't know, but soon faces his railway's closing down.

Toby is a tram engine who lives and works on his own little railway. He has cowcatchers and sideplates to help prevent accidents, causing him to look quite unlike a steam engine. He has his own coach called Henrietta, who always rides along with him. Sadly, Toby and Henrietta have both seen better days since the amounts of passengers and trucks they take have been reduced due to the increase of roads. The passengers would rather travel by bus, while companies send their cargo by lorry.

One day, a stout Gentleman, who is actually The Fat Controller, his wife, and their two grandchildren visit the railway while on holiday. The two children note that Toby looks unusual for an engine, and the Fat Controller tells them that he is a steam tram engine. After his Granddaughter accidentally offends Toby by thinking he is electric, the two children want a ride. The Fat Controller agrees, in which the whole family take a ride in Henrietta, who can't be happier to have passengers again. On the other hand, Toby is still fuming about being called electric.

Afterwards, the Fat Controller speaks to Toby, thanking him for a lovely journey. Toby notes to himself that the Fat Controller knows how to speak to engines. The family returns every day for two weeks of their holiday, sometimes riding with the guard, or sometimes inside empty trucks. On the last day, they ride with Toby's crew in his cab.

Everyone is sorry when the family has to leave, and Toby asks them to come back someday; the family promises. As the months pass, Toby finds himself carrying even fewer passengers and goods. Soon the inevitable happens and Toby's controller decides to shut the line down, much to Toby's grief.

Later that day, a lot of people come for the chance at a last ride on Toby's line, filling up Henrietta. Although the passengers treat the occasion like a celebration, Toby and his driver know it's not. Afterwards, the passengers wish Toby a sad goodbye before he returns to his shed, then falls asleep feeling lonely and unwanted.

The next morning, Toby's woken by his excited crew, who has just received some very good news; an important letter from the Fat Controller.