Top Hat is given the job of taking a new engine from Scotland to the Dock Railway. The engine is Danny, and he is very rude to Top Hat. After droping off Danny at the Rail Depot, Top Hat returns to the Star Pier and tells the other tugs about Danny.
A few days later, Danny is working in the coaling yard with the Zed Stacks when Zip & Zug start teasing him and tell him he has a "funny voice". Danny is so enraged he shunts some coal trucks off the pier and on to Zip & Zug. The Manager is cross at Danny, and punishes him by having him work at Lucky's Yard for the rest of the week.
Meanwhile, Ten Cents has been sent to Lucky's Yard after having an acident while towing the recently rebuilt Star Line fuel barge. There, he meets Danny, who is shunting trucks of engineering parts as part of his punishment. Although he is wary of him at first (Mainly due to what Top Hat said about him), but the two slowly become friends over the course of his repairs. Danny tells Ten Cents about Zip & Zug, and Ten Cents decides to help him get back at them.
Captian Zero tells Zip & Zug to take an old hulk to the breaker's yard. Ten Cents overhears, and he and Danny decide to spring their trap there. On there way, Ten Cents tell them the story of an switcher that crashed into the pier, resulting in it's destruction and that of an engine. At the breaker's yard, Zip & Zug are delivering the hulk when they hear a strange nosie. They are suddenly ambushed by Ten Cents and Danny, disgusied as the ghosts. Zip & Zug are so terrefied they run back to the Zed Stacks Pier and crash into Zorran.
Ten Cents and Danny leave, but are caught by Hercules, who takes them to Captian Star and the Railway Manager. The two explain about Zip & Zug, and their respective higher-ups let them off with a warning. Meanwhile, Zip & Zug have to help repair the Zed Stacks Pier as punishment for causing the damage. Ten Cents & Danny are still friends, but have promised to never play a prank again. Or so Captian Star thinks...
- First apearence of Danny.