High Quality Content by WIKIPEDIA articles! A steam shovel is a large steam-powered excavating machine designed for lifting and moving material such as rock and soil. It is the earliest type of power shovel or excavator. They played a major role in public works in the 19th and early 20th century, being key to the construction of railroads and the Panama Canal. The development of simpler, cheaper diesel-powered shovels caused steam shovels to fall out of use in the 1930s.