A video of the incident circulated on social media shows the recovery vehicle that allegedly brought down the overhead power lines and poles in Baldrine on Wednesday afternoon.
The vehicle has a Land Rover loaded on the back, and several kayaks stacked high.
Isle of Man Transport said on Thursday morning that the area would remain closed while its engineering team assessed the scope of works required to re-instate the overhead power lines and poles.
Services between Laxey and Ramsey were able to run as timetabled and Snaefell Mountain Railway services were unaffected.
Yesterday morning it emerged that 200 metres of copper overhead cable was stolen from the site where it had been left overnight.
The police said: ‘Between 5.30pm and 8.30am on July 20-21, around 200 metres of copper overhead cable is believed to have been stolen from the Manx Electric Railway crossing between the Liverpool Arms and Baldrine.
‘The cable was left overnight after power lines were taken down yesterday.
‘As the cables have been stolen the MER will be unable to operate normal services and a special event has had to be cancelled.
‘If you know where this cable is, or are offered it for sale, please contact the police immediately.’
People who can help in any way are being asked to contact police headquarters on 631212 quoting the reference P210722012. Alternatively, you can email [email protected] or call Crimestoppers anonymously on 0800 555 111.