Having just completed 25 1,600 mm (5 ft 3 in) 650 hp (480 kW) diesel-hydraulic shunting W class locomotives for the Victorian Railways, Tulloch Limited, with a view to receiving an order for similar units, offered the New South Wales Government Railways a similar 1,435 mm (4 ft 81⁄2 in) standard gauge version in 1960 for a 12-month testing period. The offer was accepted and the unit was taken into service on 11 November 1960 numbered 7101. Although allocated to Delec Locomotive Depot, all servicing was done at Tulloch Limited. No. 7101 was used on local transfer and shunting trips in the Sydney metropolitan area. It operated under conditions similar to the 70-class then in operation.
In mid-1961, Tulloch Limited was experiencing operating difficulties and was unable to fulfil their obligations in regard to the hiring. 7101 was returned on 21 June 1961 and sold to Victorian Railways, who used the locomotive from 4 July on the construction of the North East standard gauge line between Albury and Melbourne. It was repainted in the same colours as the 25 broad gauge units and renumbered W266.