Rusty's Revenge is a 1997 annual story.
Rusty is asked to help out at the harbour, but James does not think that the "rusting" old diesel could prove to be very useful. James has to pull empty trucks to the windmill to be loaded with flour. After collecting the flour, he heads back to the harbour, but the trucks surge forward and James comes off the rails on a bendy line. Flour goes everywhere and Rusty pulls James back to the sheds, where everyone laughs at him.
- Rusty and James share the same gauge track in this story.
- In the first illustration, one of Rusty's eyes is wonky.
- James' wheels are grey when they should be black.