Similar in appearance and size to the shed at Douglas Station, this corrugated iron structure stood in the corner of the yard, behind which there was an open siding which for many years held the seldom-used Manx Northern Railway six-wheeled "Cleminson" coaches; latterly, in the Ailsa Period the disused locomotives were stored in here overnight, dragged out by the first ex-Peel train engine in the morning for display.  The station carriage shed was still used after closure in 1968 for winter storage of carriage stock (the similar shed at Douglas Station not having the capacity for all 75 of the line's bogie coaches) and it was during such a time, on 10th December 1975 that a disasterous fire occured and much historic stock was lost forever.  A second fire was started delirately to ease the demolition of the shed, but was never discovered whether the first fire was malitious or not.