When i was a child there used to be a rhyme that went like this-
Puffing Billy went to Stoke, when he came back he had no smoke. So yes, I agree with Markrae it is a steam engine.
Like billy-o/billy-ho - a general intensifier and expression of energy or effort, most enthusiastically, strenuously, speedily. [dialect euphemism for 'bloody hell']. Current from late C19.