In May 1939 an order for five 38 class locomotives was placed with Clyde Engineering.
They suffered many delays during construction, mostly due to resource shortages caused by World War II and the Great Depression.
The first five locomotives were built by Clyde Engineering and had distinctive semi-streamlined boiler casing.
The locomotive, however, as with many others, did possess a teething trouble: no fireman could maintain steam in her 245 psi boiler.
Early trials on the Southern line saw 3801, the class leader, appointed 2 firemen, and the now-late travelling inspector Jack Bowen recalled that "some gun passenger firemen brought in from Eveleigh (near the Sydney CBD) in February 1943 even tried using long-handle shovels."
Mr Bowen also recalled that the problem was solved when an imported Bathurst fireman insisted on inspecting the loco's blast pipe.
He demonstrated how the blast pipe's shape made it impossible for steam to cleanly clear the chimney's apron, which affected the smokebox's vacuum action on the fire grate, making her more demanding to fire.
After the blast pipe was adjusted, 3801 erupted as a good engine should.

As the last of the 5 initial locomotives were leaving the shop in 1945, a decision was made to purchase more.
This order of 25 locomotives were built at the New South Wales Government Railways' Eveleigh Railway Workshops (13 even number locomotives) and Cardiff Locomotive Workshops (12 odd numbered locomotives).
These locomotives were non-streamlined to improve maintenance.

The Clyde Engineering built examples were delivered in wartime grey.
Following the cessation of the war, all were repainted green as were the 25 unstreamlined locomotives from new.
All except 3813 were repainted black in the 1950s.
3801 and 3830 had their green livery restored due to pressure from heritage groups in the 1960s.

Among the services they initially hauled were the Central West Express, Newcastle Flyer, Melbourne Limited Express, Riverina Express and South Coast Daylight Express as well as the overnight mail trains.
Because of their axle load they were confined to operating between Sydney and the following extremities of operation: Port Kembla (Coniston), Albury, Dubbo and Maitland, although they worked the North Coast passenger trains to Brisbane until track problems surfaced.

Following the arrival of the 42, 43 and 44 class diesel locomotives in the 1950s, these began to take over some express services, but the 38 class continued to haul many passenger and freight trains.
Even after the electrification of the Main Western line to Lithgow in 1957 and the Main North line to Gosford in January 1960, using 46 class electric locomotives, the 38s still operated the Central West Express between Lithgow and Orange into the 1960s and the Newcastle Flyer between Gosford and Newcastle until December 1970.

The 38 class briefly returned to the former Melbourne Limited Express route in April 1962, when 3830 and 3813 hauled the inaugural standard gauge Spirit of Progress from Albury to Sydney.
The first 38 class locomotive was withdrawn in 1961 with the last withdrawn in December 1970.

In August 1970, 3801 hauled the Western Endeavour to Perth following the completion of the standard gauge Trans-Australian Railway with 3813 assisting as far as Port Pirie.
In April 1988, 3801 again operated to Perth during the Australian Bicentenary.

3801 featured in the 1974 short film A Steam Train Passes.
In May 1939 an order for five 38 class locomotives was placed with Clyde Engineering. They suffered many delays during construction, mostly due to resource shortages caused by World War II and the Great Depression. The first five locomotives were built by Clyde Engineering and had distinctive semi-streamlined boiler casing. The locomotive, however, as with many others, did possess a teething trouble: no fireman could maintain steam in her 245 psi boiler. Early trials on the Southern line saw 3801, the class leader, appointed 2 firemen, and the now-late travelling inspector Jack Bowen recalled that "some gun passenger firemen brought in from Eveleigh (near the Sydney CBD) in February 1943 even tried using long-handle shovels." Mr Bowen also recalled that the problem was solved when an imported Bathurst fireman insisted on inspecting the loco's blast pipe. He demonstrated how the blast pipe's shape made it impossible for steam to cleanly clear the chimney's apron, which affected the smokebox's vacuum action on the fire grate, making her more demanding to fire. After the blast pipe was adjusted, 3801 erupted as a good engine should.
As the last of the 5 initial locomotives were leaving the shop in 1945, a decision was made to purchase more. This order of 25 locomotives were built at the New South Wales Government Railways' Eveleigh Railway Workshops (13 even number locomotives) and Cardiff Locomotive Workshops (12 odd numbered locomotives). These locomotives were non-streamlined to improve maintenance.
The Clyde Engineering built examples were delivered in wartime grey. Following the cessation of the war, all were repainted green as were the 25 unstreamlined locomotives from new. All except 3813 were repainted black in the 1950s. 3801 and 3830 had their green livery restored due to pressure from heritage groups in the 1960s.
Among the services they initially hauled were the Central West Express, Newcastle Flyer, Melbourne Limited Express, Riverina Express and South Coast Daylight Express as well as the overnight mail trains. Because of their axle load they were confined to operating between Sydney and the following extremities of operation: Port Kembla (Coniston), Albury, Dubbo and Maitland, although they worked the North Coast passenger trains to Brisbane until track problems surfaced.
Following the arrival of the 42, 43 and 44 class diesel locomotives in the 1950s, these began to take over some express services, but the 38 class continued to haul many passenger and freight trains. Even after the electrification of the Main Western line to Lithgow in 1957 and the Main North line to Gosford in January 1960, using 46 class electric locomotives, the 38s still operated the Central West Express between Lithgow and Orange into the 1960s and the Newcastle Flyer between Gosford and Newcastle until December 1970.
The 38 class briefly returned to the former Melbourne Limited Express route in April 1962, when 3830 and 3813 hauled the inaugural standard gauge Spirit of Progress from Albury to Sydney. The first 38 class locomotive was withdrawn in 1961 with the last withdrawn in December 1970.
In August 1970, 3801 hauled the Western Endeavour to Perth following the completion of the standard gauge Trans-Australian Railway with 3813 assisting as far as Port Pirie. In April 1988, 3801 again operated to Perth during the Australian Bicentenary.
3801 featured in the 1974 short film A Steam Train Passes.
New South Wales C38 class locomotive