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 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.

The main proponent of the scheme, Canberra engineer Ken Bilston, held the remaining 2% share and was technical manager for the project.

[4] A consortium of Swiss and Australian companies (SLM, BBC, and Comeng[5]) provided the rolling stock, overhead wiring, sub-stations, communications and signalling.

[1] The railway reaches a maximum elevation of 1,905 metres above sea level at Mount Blue Cow station.

A small goods wagon is also used to transport rubbish and other freight from the Blue Cow terminal, as it has no road access in the winter months.

This allows day trippers to get tickets and equipment and be loaded for the 10-minute journey to the Perisher Valley station, and a further 7 minutes to Blue Cow.

[8] The trains of the Skitube operate on the Lamella rack system, which was developed by Von Roll Holding.