The Infrastructure Minister says her department is working on a design and business case for the restoration of the full length of the Douglas Bay horse tramway.
Following the completion of the Promenade reconstruction scheme, the tramway has only operated between Derby Castle and Broadway.
A corridor was set aside for the tracks to continue on to the Sea Terminal but the DoI said the funding was not available for the extension, despite a Tynwald resolution.
Now Infrastructure Minister Dr Michelle Haywood has indicated that the project could be back on track.
In a written reply to a Tynwald question from Arbory, Castletown and Malew MHK Jason Moorhouse, she said: ‘The department has been working on developing a design, project plan and business case for the reinstatement of a single line of the tram tracks to the Sea Terminal.
‘The agreed business case will be submitted for consideration by Treasury before submission to Tynwald this year.’
The relaying of the horse tramway between Derby Castle and Broadway was engineered in a way that would allow it to carry much heavier Manx Electric Railway trams.
Tynwald had wanted it ‘future proofed’. It had been an ambition of then public transport director Ian Longworth to extend the MER along the Promenade.
But this added costs, complexity and delays to the Promenade reconstruction scheme.
Last month, Dr Haywood admitted acknowledged that realistically there was no way horse tramway extension back to the Sea Terminal could happen in time for the line’s 150th anniversary in 2026.
She said then that as well as seeking re-approval of funding to install track suitable for future use by electric trams, the project would include refurbishing the derelict Tramway Terrace houses fronting the historic stables.
Dr Haywood said her hope was that work could begin in winter 2026-7 and estimated it would take 10 months to complete.