Ok. I googled it and read an article by someone named Mary Bellis who said that wagonways which were wooden rails over which horsedrawn wagons were in use in Germany as early as 1550. In 1776 steel rails were developed followed by flanged wheels to better grip the rails in 1789. Englishman William Jessup is credited with this invention. At this time horse drawn carts were still in use. A man named Richard Trevithick built the first steam powered tramway locomotive which was demonstrated on 2/22/1804. George Stephenson is considered to be the inventor of the first Steam Powered Railway Locomotive as Richard Trevithick's Tramway Locomotive was considered a road Locomotive. I left out a lot of details. If you want more, google it yourself.