The construction of the Coast Electric Tramway and coastal road played a vital role in the development of Howstrake. By improving access between Douglas and the northern parts of the Island, these transport links encouraged tourism, residential growth, and commercial investment. Together, the tramway and road transformed Howstrake into a more accessible and popular destination, leaving a lasting impact on the area’s history and development.
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By 1886, Peel and Port Erin were connected to Douglas by steam railway, with lines later extending to Ramsey and Foxdale. However, the rugged east coast prevented a railway between Douglas and Ramsey despite several proposals. The latest, by the Manx East Coast Railway Company in 1891, was eventually withdrawn.
Bruce and Saunderson included a coastal railway in their ambitious Howstrake development plans. Thanks to Siemens’ reliable electric locomotives, they proposed an electric tramway from Douglas to Groudle. The most difficult section was between Derby Castle and Onchan Head, where engineers reclaimed land, built sea walls, carved shelves into cliffs, and bridged Port Jack Glen with massive retaining walls. Construction required extensive blasting, hundreds of workers, and significant manual labour, yet the tramway and coastal road were completed by August 1893.
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The first return journey from Douglas to Groudle took place on 26 August 1893, attended by Alexander Bruce, Frederick Saunderson, and other prominent guests. The tramway officially opened to the public on 7 September 1893, and by July 1894 it had been extended to Laxey, becoming the Isle of Man Tramways and Electric Power Company.
Initially planned to support housing developments, the railway quickly became a major tourist attraction. Winter services connected Douglas and Laxey year-round, and the track was upgraded to double line during the winter of 1893–94. Connected with the Douglas horse tramway at Derby Castle, the electric railway transformed Groudle into one of the island’s leading tourist destinations, attracting over 100,000 visitors annually by the turn of the century. It also encouraged further attractions, including the Groudle Glen Railway and the famous Sea Lion Rocks wildlife exhibits.