In 1966, Queensland Railways tested a Walkers Limited built diesel-hydraulic shunting locomotive.

It was re-gauged to 762 mm (2 ft 6 in), reclassified as DH31, and is used as a replacement for steam locomotives on days of total fire ban.

In June 2012, the Walhalla Goldfields Railway also bought DH72, which will also be stored until funds are available to re-gauge it to 762 mm.

Following a major failure – notably a large hole blown in the engine block following a crankcase explosion – the locomotive was withdrawn on 5 July 1991.

After purchase by the ARHS Qld, DH38 underwent a major restoration involving rebuilding the engine and electrical system as well as having all axles and wheels replaced due to cracks.