In the 1980s, development of the
Thredbo and
Perisher Valley skifields was increasing, but the mountain road providing access to them was limited. In 1980 the
NSW National Parks & Wildlife Service proposed the establishment of a day visitors resort at
Blue Cow Mountain, which would increase the traffic demands. A number of transport modes were examined, including a
funicular railway,
chairlift and an
aerial gondola, but all were of limited capacity, affected by weather, and would scar the mountainsides. A rack and pinion railway was found to be the best option, running mostly underground. The Perisher Skitube Joint Venture was established, with
Transfield and
Kumagai Gumi each holding a 49% share. The main proponent of the scheme, Canberra engineer Ken Bilston, held the remaining 2% share and was technical manager for the project. The Bilston Tunnel was constructed using a
tunnel boring machine, while the Blue Cow tunnel was constructed using the traditional drill and blast method. A consortium of
Swiss Locomotive & Machine Works,
Brown, Boveri & Cie and
Comeng supplied the rolling stock, overhead wiring, sub-stations, communications and signalling. The line opened from Bullocks Flat to Perisher on 26 July 1987. Because the tunnel to Blue Cow was completed, but the track had yet to be laid, services on the Perisher to Blue Cow section were operated by eight ex
Highway Tours Leyland Tiger Cub buses for the 1987 ski season. The entire line opened through to Blue Cow opened on 29 August 1988. In October 2016,
Stadler Rail commenced an upgrade of the line. It was to be completed by April 2017. ==Operations==