Jim Button and Luke the Engine Driver(1977)

Original title: Augsburger Puppenkiste - Jim Knopf und Lukas der Lokomotivführer

The story begins on a tiny island called Morrowland, which has just enough space for a small palace, a train station and rails all around the island, a grocery store, a small house, a king, two subjects, a locomotive named Emma, and a locomotive engineer by the name of Luke.