The Canadian National Railway Company (french: Compagnie des chemins de fer nationaux du Canada) is a Canadian
Class I freight railway headquartered in
Montreal
Montreal ( ; officially Montréal, ) is the second-most populous city in Canada and most populous city in the Canadian province of Quebec. Founded in 1642 as '' Ville-Marie'', or "City of Mary", it is named after Mount Royal, the triple- ...
, Quebec, which serves
Canada
Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by to ...
and the
Midwestern
The Midwestern United States, also referred to as the Midwest or the American Midwest, is one of four census regions of the United States Census Bureau (also known as "Region 2"). It occupies the northern central part of the United States. ...
and
Southern United States
The Southern United States (sometimes Dixie, also referred to as the Southern States, the American South, the Southland, or simply the South) is a geographic and cultural region of the United States of America. It is between the Atlantic Ocean ...
.
CN is Canada's largest railway, in terms of both revenue and the physical size of its rail network, spanning Canada from the Atlantic coast in
Nova Scotia
Nova Scotia ( ; ; ) is one of the thirteen provinces and territories of Canada. It is one of the three Maritime provinces and one of the four Atlantic provinces. Nova Scotia is Latin for "New Scotland".
Most of the population are native Eng ...
to the Pacific coast in
British Columbia
British Columbia (commonly abbreviated as BC) is the westernmost province of Canada, situated between the Pacific Ocean and the Rocky Mountains. It has a diverse geography, with rugged landscapes that include rocky coastlines, sandy beaches, for ...
across approximately of track. In the late 20th century, CN gained extensive capacity in the United States by taking over such railroads as the
Illinois Central
The Illinois Central Railroad , sometimes called the Main Line of Mid-America, was a railroad in the Central United States, with its primary routes connecting Chicago, Illinois, with New Orleans, Louisiana, and Mobile, Alabama. A line also c ...
.
CN is a public company with 22,600 employees, and it has a market cap of approximately CA$90 billion. CN was government-owned, having been a
Canadian Crown corporation
Crown corporations in Canada are government organizations with a mixture of Commerce, commercial and Public policy, public-policy objectives.Tupper, Allan. 2006 February 7.Crown Corporation" ''The Canadian Encyclopedia'' (last edited 2021 March 1 ...
from its founding in 1919 until being privatized in 1995. ,
Bill Gates
William Henry Gates III (born October 28, 1955) is an American business magnate and philanthropist. He is a co-founder of Microsoft, along with his late childhood friend Paul Allen. During his career at Microsoft, Gates held the positions ...
is the largest single shareholder of CN stock, owning a 14.2% interest through
Cascade Investment and his own
Bill and Melinda Gates Foundation
The Bill & Melinda Gates Foundation (BMGF), a merging of the William H. Gates Foundation and the Gates Learning Foundation, is an American private foundation founded by Bill Gates and Melinda French Gates. Based in Seattle, Washington, it was l ...
.
From 1919 to 1978, the railway was referred to as "Canadian National Railways" (CNR).
History
The Canadian National Railways (CNR) was incorporated on June 6, 1919, comprising several railways that had become bankrupt and fallen into
Government of Canada
The government of Canada (french: gouvernement du Canada) is the body responsible for the federal administration of Canada. A constitutional monarchy, the Crown is the corporation sole, assuming distinct roles: the executive, as the ''Crown-i ...
hands, along with some railways already owned by the government. Primarily a
freight
Cargo consists of bulk goods conveyed by water, air, or land. In economics, freight is cargo that is transported at a freight rate for commercial gain. ''Cargo'' was originally a shipload but now covers all types of freight, including tran ...
railway, CN also operated
passenger
A passenger (also abbreviated as pax) is a person who travels in a vehicle, but does not bear any responsibility for the tasks required for that vehicle to arrive at its destination or otherwise operate the vehicle, and is not a steward. Th ...
services until 1978, when they were assumed by
Via Rail
Via Rail Canada Inc. (), operating as Via Rail or Via, is a Canadian Crown corporation that is mandated to operate intercity passenger rail service in Canada. It receives an annual subsidy from Transport Canada to offset the cost of operating ...
. The only passenger services run by CN after 1978 were several
mixed train
A mixed train or mixed consist is a train that contains both passenger and freight cars or wagons. Although common in the early days of railways, by the 20th century they were largely confined to branch lines with little traffic. Typically, service ...
s (freight and passenger) in
Newfoundland
Newfoundland and Labrador (; french: Terre-Neuve-et-Labrador; frequently abbreviated as NL) is the easternmost province of Canada, in the country's Atlantic region. The province comprises the island of Newfoundland and the continental region ...
, and several commuter trains both on CN's electrified routes and towards the
South Shore in the Montreal area (the latter lasted without any public subsidy until 1986). The Newfoundland mixed trains lasted until 1988, while the Montreal commuter trains are now operated by Montreal's
EXO.
On November 17, 1995, the Government of Canada privatized CN. Over the next decade, the company expanded significantly into the United States, purchasing
Illinois Central Railroad
The Illinois Central Railroad , sometimes called the Main Line of Mid-America, was a railroad in the Central United States, with its primary routes connecting Chicago, Illinois, with New Orleans, Louisiana, and Mobile, Alabama. A line al ...
and
Wisconsin Central Transportation
Wisconsin Central Ltd. is a railroad subsidiary of Canadian National. At one time, its parent Wisconsin Central Transportation Corporation owned or operated railroads in the United States, Canada (Algoma Central Railway), the United Kingdom ( En ...
, among others.
Creation of the company, 1918–1923
The excessive construction of railway lines in Canada led to significant financial difficulties striking many of them, in the years leading up to 1920:
:* In response to public concerns, the Government of Canada assumed majority ownership of the near bankrupt
Canadian Northern Railway
The Canadian Northern Railway (CNoR) was a historic Canadian transcontinental railway. At its 1923 merger into the Canadian National Railway , the CNoR owned a main line between Quebec City and Vancouver via Ottawa, Winnipeg, and Edmonton.
Man ...
(CNoR) on September 6, 1918, and appointed a "Board of Management" to oversee the company. At the same time, CNoR was also directed to assume management of
Canadian Government Railways
Canadians (french: Canadiens) are people identified with the country of Canada. This connection may be residential, legal, historical or cultural. For most Canadians, many (or all) of these connections exist and are collectively the source of ...
(CGR), a system mainly comprising the
Intercolonial Railway of Canada
The Intercolonial Railway of Canada , also referred to as the Intercolonial Railway (ICR), was a historic Canadian railway that operated from 1872 to 1918, when it became part of Canadian National Railways. As the railway was also completely ow ...
(IRC),
National Transcontinental Railway
The National Transcontinental Railway (NTR) was a historic railway between Winnipeg and Moncton in Canada. Much of the line is now operated by the Canadian National Railway.
The Grand Trunk partnership
The completion of construction of Canada's ...
(NTR),
Prince Edward Island Railway
The Prince Edward Island Railway (PEIR) was a historic Canadian railway in Prince Edward Island (PEI). The railway ran tip-to-tip on the island, from Tignish in the west to Elmira in the east, with major spurs serving Borden-Carleton's train fe ...
(PEIR), and the
Hudson Bay Railway (HBR).
:* On December 20, 1918, the Government of Canada created the Canadian National Railways (CNR) – a body with no corporate powers – through
Order in Council
An Order-in-Council is a type of legislation in many countries, especially the Commonwealth realms. In the United Kingdom this legislation is formally made in the name of the monarch by and with the advice and consent of the Privy Council (''Kin ...
as a means to simplify the funding and operation of the various railway companies. The absorption of the Intercolonial Railway would see CNR adopt that system's slogan, ''The People's Railway''.
:* Another Canadian railway, the
Grand Trunk Pacific Railway
The Grand Trunk Pacific Railway was a historic Canadian transcontinental railway running from Fort William, Ontario (now Thunder Bay) to Prince Rupert, British Columbia, a Pacific coast port. East of Winnipeg the line continued as the National Tra ...
(GTPR), encountered financial difficulty on March 7, 1919, when its parent company
Grand Trunk Railway
The Grand Trunk Railway (; french: Grand Tronc) was a railway system that operated in the Canadian provinces of Quebec and Ontario and in the American states of Connecticut, Maine, Michigan, Massachusetts, New Hampshire, and Vermont. The rail ...
(GTR) defaulted on repayment of construction loans to the Government of Canada.
The Canadian National Railway Company then evolved through the following steps:
:* the "railways, works and undertakings of the Companies comprised in the Canadian Northern System" were vested in the newly incorporated Company in June 1919, with provision for the later inclusion of any of the Government Railways
:* vesting of the Grand Trunk Pacific Railway System in the
Minister of Railways and Canals
The minister of transport (french: ministre des transports) is a minister of the Crown in the Canadian Cabinet. The minister is responsible for overseeing the federal government's transportation regulatory and development department, Transport ...
, acting as Government Receiver, in March 1919
:* acquisition of the Grand Trunk Railway System in November 1919, implemented in May 1920
GTR management and shareholders opposed to
nationalization
Nationalization (nationalisation in British English) is the process of transforming privately-owned assets into public assets by bringing them under the public ownership of a national government or state. Nationalization usually refers to p ...
took legal action, but after several years of arbitration, the GTR was finally absorbed into the CNR on January 30, 1923. Although several smaller independent railways would be added to the CNR in subsequent years as they went bankrupt or it became politically expedient to do so, the system was more or less finalized at that point. However, certain related lawsuits were not resolved until as late as 1936.
Canadian National Railways was born out of both wartime and domestic urgency. Until the rise of the personal automobile and creation of taxpayer-funded all-weather highways, railways were the only viable long-distance land transportation available in Canada. As such, their operation consumed a great deal of public and political attention. Canada was one of many nations to engage in
railway nationalization
Railway nationalization is the act of taking rail transport assets into public ownership. Several countries have at different times nationalized part or all of their railway system.
More recently, the international trend has been towards privatiz ...
in order to safeguard critical transportation infrastructure during the
First World War
World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was List of wars and anthropogenic disasters by death toll, one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, ...
.
In the early 20th century, many governments were taking a more interventionist role in the economy, foreshadowing the influence of economists like
John Maynard Keynes
John Maynard Keynes, 1st Baron Keynes, ( ; 5 June 1883 – 21 April 1946), was an English economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments. Originally trained in ...
. This political trend, combined with broader geo-political events, made nationalization an appealing choice for Canada.
The Winnipeg General Strike of 1919 and allied involvement in the
Russian Revolution
The Russian Revolution was a period of political and social revolution that took place in the former Russian Empire which began during the First World War. This period saw Russia abolish its monarchy and adopt a socialist form of government ...
seemed to validate the continuing process. The need for a viable rail system was paramount in a time of civil unrest and foreign military action.
Acquisitions
Savage Alberta Railway
On December 1, 2006, CN announced that it had purchased
Savage Alberta Railway for $25 million and that it had begun operating the railway the same day.
Mackenzie Northern Railway
In 2006, CN acquired
Mackenzie Northern Railway
The Mackenzie Northern Railway is a Canadian railway operating in Alberta and the Northwest Territories. It is the northernmost trackage of the contiguous North American railway network. Since being purchased by CN in 2006, it has been official ...
, previously purchased by
RailAmerica
RailAmerica, Inc., based in Jacksonville, Florida, was a holding company of a number of short-line railroads and regional railroads in the United States and Canada.
In 2007, RailAmerica was acquired by Fortress Investment Group. Before that, it ...
. This purchase allowed CN to increase their network footprint and hold the northernmost trackage of the contiguous
North American
North America is a continent in the Northern Hemisphere and almost entirely within the Western Hemisphere. It is bordered to the north by the Arctic Ocean, to the east by the Atlantic Ocean, to the southeast by South America and the ...
railway network. Since being purchased by CN in 2006, it has been officially known as the Meander River Subdivision.
Wisconsin Central Railroad
In January 2001, CN acquired the WC for $800 million.
Duluth Missabe & Iron Range Railroad
The DM&IR was purchased by Great Lakes Transportation and in 2011 the DM&IR was merged into CN's Wisconsin Central Subsidiary. The DM&IR was acquired at the same time as the Bessemer & Lake Erie Railroad.
Duluth Winnipeg & Pacific Railroad
The DWP was nationalized with CN in 1918 and became a part of CN's Grand Trunk Corporation in 1971. In 2011 the DWP was merged into the larger Wisconsin Central Subsidiary of CN.
Elgin Joliet & Eastern Railroad
In 2007 CN acquired the EJ&E to assist with traffic congestion in Chicago and the surrounding area. In 2013 EJ&E was merged into the greater Wisconsin Central Subsidiary of CN.
Bessemer & Lake Erie Railroad
The B&LE was acquired with the purchase of Great Lakes Transportation and the DM&IR.
Grand Trunk Western Railroad
The GTW was merged with Central Vermont in 1971 with the creation of the Grand Trunk Corporation. In 1991 the GTW was merged with CN under the "North America" consolidation program. Many of GTWs locomotives and rolling stock would be repainted and the motive power would get the new CN scheme.
Central Vermont Railway
Central Vermont was nationalized in 1918 and consolidated into the Grand Trunk Western in 1971 with the creation of the Grand Trunk Corporation.
British Columbia Railway
In 2003, BCOL sold to Canadian National and leased the railroad to CN for 60 years.
Illinois Central Railroad
In 1998 IC was purchased by CN and CN also acquired the Chicago Central in the deal.
TransX Group of Companies
In 2018 CN acquired the Winnipeg-based TransX Group of Companies. Transx continues to operate independently.
Pros and cons of nationalization
Regardless of the political and economic importance of railway transportation in Canada, there were many critics of the Canadian government's policies in maintaining CNR as a
Crown corporation
A state-owned enterprise (SOE) is a government entity which is established or nationalised by the ''national government'' or ''provincial government'' by an executive order or an act of legislation in order to earn profit for the government ...
from its inception in 1918 until its
privatization
Privatization (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when ...
in 1995. Some of the most scathing criticism came from the railway industry itself—namely the commercially successful
Canadian Pacific Railway
The Canadian Pacific Railway (french: Chemin de fer Canadien Pacifique) , also known simply as CPR or Canadian Pacific and formerly as CP Rail (1968–1996), is a Canadian Class I railway incorporated in 1881. The railway is owned by Canad ...
(CPR), which argued its taxes should not be used to fund a competitor.
As a result of history and geography, the CPR served larger population centres in the southern
Prairies
Prairies are ecosystems considered part of the temperate grasslands, savannas, and shrublands biome by ecologists, based on similar temperate climates, moderate rainfall, and a composition of grasses, herbs, and shrubs, rather than trees, as t ...
, while the CNR's merged system served as a de facto government colonization railway to serve remote and underdeveloped regions of
Western Canada
Western Canada, also referred to as the Western provinces, Canadian West or the Western provinces of Canada, and commonly known within Canada as the West, is a Canadian region that includes the four western provinces just north of the Canada� ...
,
northern Ontario
Northern Ontario is a primary geographic and quasi-administrative region of the Canadian province of Ontario, the other primary region being Southern Ontario. Most of the core geographic region is located on part of the Superior Geological Pro ...
and
Quebec
Quebec ( ; )According to the Canadian government, ''Québec'' (with the acute accent) is the official name in Canadian French and ''Quebec'' (without the accent) is the province's official name in Canadian English is one of the thirte ...
, and the
Maritimes
The Maritimes, also called the Maritime provinces, is a region of Eastern Canada consisting of three provinces: New Brunswick, Nova Scotia, and Prince Edward Island. The Maritimes had a population of 1,899,324 in 2021, which makes up 5.1% of C ...
.
CN was also disadvantaged by being formed from a collection of insolvent rail systems that were not intrinsically viable, as they seldom had the shortest route between any major cities or industrial centres; to this day, CN has many division points far from significant industries or traffic sources. The only notable exception is the former Grand Trunk mainline between Montreal and Chicago.
The company was also used as an instrument of Government of Canada policy, from the operation of ferries in
Atlantic Canada
Atlantic Canada, also called the Atlantic provinces (french: provinces de l'Atlantique), is the region of Eastern Canada comprising the provinces located on the Atlantic coast, excluding Quebec. The four provinces are New Brunswick, Newfoundla ...
, to assuming the operation of the narrow-gauge
Newfoundland Railway
The Newfoundland Railway operated on the island of Newfoundland from 1898 to 1988. With a total track length of , it was the longest narrow-gauge railway system in North America.
Early construction
]
In 1880, a committee of the Newfoundland Leg ...
following that province's entry into
Canadian Confederation, Confederation, and the partnership with CPR in purchasing and operating the
Northern Alberta Railways
Northern Alberta Railways was a Canadian railway which served northern Alberta and northeastern British Columbia. Jointly owned by both Canadian National Railway and Canadian Pacific Railway, NAR existed as a separate company from 1929 until 19 ...
.
CNR as a social and economic tool
CNR was considered competitive with CPR in several areas, notably in Central Canada, prior to the age of the automobile and the dense highway network that grew in
Ontario
Ontario ( ; ) is one of the thirteen provinces and territories of Canada.Ontario is located in the geographic eastern half of Canada, but it has historically and politically been considered to be part of Central Canada. Located in Central Ca ...
and
Quebec
Quebec ( ; )According to the Canadian government, ''Québec'' (with the acute accent) is the official name in Canadian French and ''Quebec'' (without the accent) is the province's official name in Canadian English is one of the thirte ...
. The former GTR's superior track network in the
Montreal
Montreal ( ; officially Montréal, ) is the second-most populous city in Canada and most populous city in the Canadian province of Quebec. Founded in 1642 as '' Ville-Marie'', or "City of Mary", it is named after Mount Royal, the triple- ...
–Chicago corridor has always been a more direct route with higher capacity than CPR's. CNR was also considered a railway industry leader throughout its time as a Crown corporation in terms of research and development into railway safety systems, logistics management, and in terms of its relationship with labour unions.
Deregulation and recapitalization
From the creation of CNR in 1918 until its recapitalization in 1978, whenever the company posted a deficit, the Government of Canada would assume those costs in the government budget. The result of various governments using CNR as a vehicle for various social and economic policies was a subsidization running into billions of dollars over successive decades. Following its 1978 recapitalization and changes in management, CN (name changed to Canadian National Railway, using the shortened acronym CN in 1960) started to operate much more efficiently, by assuming its own debt, improving accounting practices to allow depreciation of assets and to access financial markets for further capital. Now operating as a for-profit
Crown corporation
A state-owned enterprise (SOE) is a government entity which is established or nationalised by the ''national government'' or ''provincial government'' by an executive order or an act of legislation in order to earn profit for the government ...
, CN reported a profit in 11 of the 15 years from 1978 to 1992, paying million in cash dividends (profit) to the Government of Canada in this time.
Cutbacks and refocusing
CN's rise to profitability was assisted when the company started to remove itself from non-core freight rail transportation starting in 1977 when subsidiary
Air Canada
Air Canada is the flag carrier and the largest airline of Canada by the size and passengers carried. Air Canada maintains its headquarters in the borough of Saint-Laurent, Montreal, Quebec. The airline, founded in 1937, provides scheduled an ...
(created in 1937 as
Trans-Canada Air Lines
Trans-Canada Air Lines (also known as TCA in English, and Trans-Canada in French) was a Canadian airline that operated as the country's flag carrier, with corporate headquarters in Montreal, Quebec. Its first president was Gordon Roy McGreg ...
) became a separate federal Crown corporation. That same year saw CN move its ferry operations into a separate Crown corporation named
CN Marine
CN Marine was a Canadian ferry company headquartered in Moncton, New Brunswick.
History
CN Marine was created by parent Canadian National Railway (CN) in 1977 as a means to group the company's ferry operations in eastern Canada into a separate ...
, followed similarly by the grouping of passenger rail services (for marketing purposes) under the name ''Via-CN''. The following year (1978), the Government of Canada decided to create
Via Rail
Via Rail Canada Inc. (), operating as Via Rail or Via, is a Canadian Crown corporation that is mandated to operate intercity passenger rail service in Canada. It receives an annual subsidy from Transport Canada to offset the cost of operating ...
as a separate Crown corporation to take over passenger services previously offered by both CN and CPR, including CN's flagship transcontinental train the ''
Super Continental'' and its eastern counterpart the ''
Ocean
The ocean (also the sea or the world ocean) is the body of salt water that covers approximately 70.8% of the surface of Earth and contains 97% of Earth's water. An ocean can also refer to any of the large bodies of water into which the wor ...
''. CN Marine was renamed
Marine Atlantic in 1986 to remove any references to its former parent organization. CN also grouped its money-losing Newfoundland operations into a separate subsidiary called
Terra Transport
Terra Transport (TT) was the name for the ''Newfoundland Transportation Division'', a wholly owned subsidiary of Canadian National Railway (CN), created in 1979 as a means to organize the company's operations on Newfoundland.
Background
Canadia ...
so federal subsidies for this service would be more visible in company statements.
CN also divested itself in the late 1970s and throughout the 1980s of several non-rail transportation activities such as trucking subsidiaries, a
hotel chain
A hotel is an establishment that provides paid lodging on a short-term basis. Facilities provided inside a hotel room may range from a modest-quality mattress in a small room to large suites with bigger, higher-quality beds, a dresser, a ref ...
(sold to CPR), real estate, and telecommunications companies. The biggest telecommunications property was a company co-owned by CN and CP (
CNCP Telecommunications
CNCP Telecommunications (Canadian National-Canadian Pacific Telecommunications) was an electrical telegraph operator and later a telecom company, which operated between 1967 and 1990.
CNCP was created as a joint venture between the Canadian Nat ...
) that originated from a joint venture involving the railways' respective
telegraph
Telegraphy is the long-distance transmission of messages where the sender uses symbolic codes, known to the recipient, rather than a physical exchange of an object bearing the message. Thus flag semaphore is a method of telegraphy, whereas ...
services. On its sale in the 1980s, it was successively renamed
Unitel (United Telecommunications),
AT&T Canada
Allstream is a business communications provider based in Mississauga, Ontario that provides IP connectivity, managed IP services, unified communications and voice services to its customers in the United States and Canada.
The company traces its ...
, and
Allstream
Allstream is a business communications provider based in Mississauga, Ontario that provides IP connectivity, managed IP services, unified communications and voice services to its customers in the United States and Canada.
The company traces its ...
as it went through various owners and branding agreements. CN sold
Terra Nova Tel
Terra Nova Tel was a telephone company providing service on Newfoundland from 1949 to 1988. It was a subsidiary of Canadian National Railways through Canadian National Telecommunications
Canadians (french: Canadiens) are people identified wi ...
to
Newfoundland Telephone in 1988. Another telecommunications property wholly owned and built by CN was the
CN Tower
The CN Tower (french: Tour CN) is a concrete communications and observation tower in downtown Toronto, Ontario, Canada. Built on the former Railway Lands, it was completed in 1976. Its name "CN" referred to Canadian National, the railway c ...
in Toronto, which still keeps its original name but was divested by the railway company in the mid-1990s. All proceeds from such sales were used to pay down CN's accumulated debt. At the time of their divestitures, all of these subsidiaries required considerable subsidies, which partly explained CN's financial problems prior to recapitalization.
CN also was given free rein by the Government of Canada following deregulation of the railway industry in the 1970s, as well as in 1987, when railway companies began to make tough business decisions by removing themselves from operating money-losing branch lines. In CN's case, some of these branch lines were those it had been forced to absorb through Government of Canada policies and outright patronage, while others were from the heady expansion era of rural
branch line
A branch line is a phrase used in railway terminology to denote a secondary railway line which branches off a more important through route, usually a main line. A very short branch line may be called a spur line.
Industrial spur
An industr ...
s in the 1920s and early 1930s and were considered obsolete following the development of local road networks.
In the period starting in the late 1970s and throughout the 1980s and early 1990s, thousands of kilometres of railway lines were abandoned, including the complete track networks on
Newfoundland
Newfoundland and Labrador (; french: Terre-Neuve-et-Labrador; frequently abbreviated as NL) is the easternmost province of Canada, in the country's Atlantic region. The province comprises the island of Newfoundland and the continental region ...
(CN subsidiary
Terra Transport
Terra Transport (TT) was the name for the ''Newfoundland Transportation Division'', a wholly owned subsidiary of Canadian National Railway (CN), created in 1979 as a means to organize the company's operations on Newfoundland.
Background
Canadia ...
, the former
Newfoundland Railway
The Newfoundland Railway operated on the island of Newfoundland from 1898 to 1988. With a total track length of , it was the longest narrow-gauge railway system in North America.
Early construction
]
In 1880, a committee of the Newfoundland Leg ...
ended railway freight operations and mixed freight-passenger trains in 1988. Mainline Passenger rail service in Newfoundland ended in 1969.) and
Prince Edward Island
Prince Edward Island (PEI; ) is one of the thirteen provinces and territories of Canada. It is the smallest province in terms of land area and population, but the most densely populated. The island has several nicknames: "Garden of the Gulf", ...
(the former
PEIR), as well as numerous branch lines in
Nova Scotia
Nova Scotia ( ; ; ) is one of the thirteen provinces and territories of Canada. It is one of the three Maritime provinces and one of the four Atlantic provinces. Nova Scotia is Latin for "New Scotland".
Most of the population are native Eng ...
, New Brunswick,
Southern Ontario
Southern Ontario is a primary region of the province of Ontario, Canada, the other primary region being Northern Ontario. It is the most densely populated and southernmost region in Canada. The exact northern boundary of Southern Ontario is disp ...
, throughout the
Prairie
Prairies are ecosystems considered part of the temperate grasslands, savannas, and shrublands biome by ecologists, based on similar temperate climates, moderate rainfall, and a composition of grasses, herbs, and shrubs, rather than trees, as the ...
provinces, in the
British Columbia
British Columbia (commonly abbreviated as BC) is the westernmost province of Canada, situated between the Pacific Ocean and the Rocky Mountains. It has a diverse geography, with rugged landscapes that include rocky coastlines, sandy beaches, for ...
interior, and on
Vancouver Island
Vancouver Island is an island in the northeastern Pacific Ocean and part of the Canadian province of British Columbia. The island is in length, in width at its widest point, and in total area, while are of land. The island is the largest by ...
. Virtually every rural area served by CN in some form was affected, creating resentment for the company and the Government of Canada. Many of these now-abandoned
rights-of-way
Right of way is the legal right, established by grant from a landowner or long usage (i.e. by prescription), to pass along a specific route through property belonging to another.
A similar ''right of access'' also exists on land held by a gov ...
were divested by CN and the Government of Canada and have since been converted into
recreational trails by local municipalities and provincial governments.
CN's U.S. subsidiaries prior to privatization
CN's railway network in the late 1980s consisted of the company's Canadian trackage, along with the following U.S. subsidiary lines:
Grand Trunk Western Railroad
The Grand Trunk Western Railroad Company is an American subsidiary of the Canadian National Railway operating in Michigan, Illinois, Indiana, and Ohio. Since a corporate restructuring in 1971, the railroad has been under CN's subsidiary holding ...
(GTW) operating in
Michigan
Michigan () is a state in the Great Lakes region of the upper Midwestern United States. With a population of nearly 10.12 million and an area of nearly , Michigan is the 10th-largest state by population, the 11th-largest by area, and t ...
,
Indiana
Indiana () is a U.S. state in the Midwestern United States. It is the 38th-largest by area and the 17th-most populous of the 50 States. Its capital and largest city is Indianapolis. Indiana was admitted to the United States as the 19th ...
, and
Illinois
Illinois ( ) is a state in the Midwestern United States. Its largest metropolitan areas include the Chicago metropolitan area, and the Metro East section, of Greater St. Louis. Other smaller metropolitan areas include, Peoria and Rock ...
;
Duluth, Winnipeg and Pacific Railway (DWP) operating in
Minnesota
Minnesota () is a state in the upper midwestern region of the United States. It is the 12th largest U.S. state in area and the 22nd most populous, with over 5.75 million residents. Minnesota is home to western prairies, now given over t ...
;
Central Vermont Railway
The Central Vermont Railway was a railroad that operated in the U.S. states of Connecticut, Massachusetts, New Hampshire, New York, and Vermont, as well as the Canadian province of Quebec.
It connected Montreal, Quebec, with New London, Connect ...
(CV) operating down the
Connecticut River
The Connecticut River is the longest river in the New England region of the United States, flowing roughly southward for through four states. It rises 300 yards (270 m) south of the U.S. border with Quebec, Canada, and discharges at Long Islan ...
valley from
Quebec
Quebec ( ; )According to the Canadian government, ''Québec'' (with the acute accent) is the official name in Canadian French and ''Quebec'' (without the accent) is the province's official name in Canadian English is one of the thirte ...
to
Long Island Sound
Long Island Sound is a marine sound and tidal estuary of the Atlantic Ocean. It lies predominantly between the U.S. state of Connecticut to the north and Long Island in New York to the south. From west to east, the sound stretches from the Eas ...
; and the
Berlin subdivision
The St. Lawrence and Atlantic Railroad , known as St-Laurent et Atlantique Quebec in Canada, is a short-line railway operating between Portland, Maine, on the Atlantic Ocean, and Montreal, Quebec, on the St. Lawrence River. It crosses the C ...
to
Portland, Maine
Portland is the largest city in the U.S. state of Maine and the seat of Cumberland County. Portland's population was 68,408 in April 2020. The Greater Portland metropolitan area is home to over half a million people, the 104th-largest metropo ...
, known informally as the ''Grand Trunk Eastern'', sold to a short-line operator in 1989.
Privatization
In 1992, a new management team led by ex-federal government bureaucrats,
Paul Tellier
Paul Mathias Tellier, (born 1939) is a Canadian businessman and former public servant and lawyer.
Biography
Born in Joliette, Quebec, Tellier earned his undergraduate degree from the University of Ottawa and his law degree from the University ...
and
Michael Sabia
Michael may refer to:
People
* Michael (given name), a given name
* Michael (surname), including a list of people with the surname Michael
Given name "Michael"
* Michael (archangel), ''first'' of God's archangels in the Jewish, Christian an ...
, started preparing CN for
privatization
Privatization (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when ...
by emphasizing increased productivity. This was achieved largely through aggressive cuts to the company's management structure, widescale layoffs in its workforce and continued abandonment or sale of its branch lines. In 1993 and 1994, the company experimented with a rebranding that saw the names ''CN'', ''Grand Trunk Western'', and ''Duluth, Winnipeg, and Pacific'' replaced under a collective CN North America moniker. In this time, CPR and CN entered into negotiations regarding a possible merger of the two companies. This was later rejected by the Government of Canada, whereupon CPR offered to purchase outright all of CN's lines from Ontario to Nova Scotia, while an unidentified U.S. railroad (rumoured to have been
Burlington Northern Railroad
The Burlington Northern Railroad was a United States-based railroad company formed from a merger of four major U.S. railroads. Burlington Northern operated between 1970 and 1996.
Its historical lineage begins in the earliest days of railroadi ...
) would purchase CN's lines in western Canada. This too was rejected. In 1995, the entire company including its U.S. subsidiaries reverted to using CN exclusively.
The ''CN Commercialization Act'' was enacted into law on July 13, 1995, and by November 28, 1995, the Government of Canada had completed an
initial public offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investme ...
(IPO) and transferred all of its shares to private investors. Two key prohibitions in this legislation include, 1) that no individual or corporate shareholder may own more than 15% of CN, and 2) that the company's headquarters must remain in
Montreal
Montreal ( ; officially Montréal, ) is the second-most populous city in Canada and most populous city in the Canadian province of Quebec. Founded in 1642 as '' Ville-Marie'', or "City of Mary", it is named after Mount Royal, the triple- ...
, thus maintaining CN as a Canadian corporation.
Contraction and expansion since privatization
Following the successful IPO, CN has recorded impressive gains in its stock price, largely through an aggressive network rationalization and purchase of newer more fuel-efficient locomotives. Numerous branch lines were shed in the late 1990s across Canada, resulting in dozens of independent
short line railway companies being established to operate former CN track that had been considered marginal. This network rationalization resulted in a core east–west freight railway stretching from
Halifax to
Chicago
(''City in a Garden''); I Will
, image_map =
, map_caption = Interactive Map of Chicago
, coordinates =
, coordinates_footnotes =
, subdivision_type = List of sovereign states, Count ...
and Toronto to Vancouver and
Prince Rupert
Prince Rupert of the Rhine, Duke of Cumberland, (17 December 1619 (O.S.) / 27 December (N.S.) – 29 November 1682 (O.S.)) was an English army officer, admiral, scientist and colonial governor. He first came to prominence as a Royalist caval ...
. The railway also operated trains from
Winnipeg
Winnipeg () is the capital and largest city of the province of Manitoba in Canada. It is centred on the confluence of the Red and Assiniboine rivers, near the longitudinal centre of North America. , Winnipeg had a city population of 749 ...
to Chicago using trackage rights for part of the route south of Duluth.
In addition to the rationalization in Canada, the company also expanded in a strategic north–south direction in the
central United States
The Central United States is sometimes conceived as between the Eastern and Western as part of a three-region model, roughly coincident with the U.S. Census' definition of the Midwestern United States plus the western and central portions o ...
. In 1998, in an era of mergers in the U.S. rail industry, CN bought the
Illinois Central Railroad
The Illinois Central Railroad , sometimes called the Main Line of Mid-America, was a railroad in the Central United States, with its primary routes connecting Chicago, Illinois, with New Orleans, Louisiana, and Mobile, Alabama. A line al ...
(IC), which connected the already existing lines from
Vancouver
Vancouver ( ) is a major city in western Canada, located in the Lower Mainland region of British Columbia. As the most populous city in the province, the 2021 Canadian census recorded 662,248 people in the city, up from 631,486 in 2016. ...
, British Columbia to
Halifax, Nova Scotia with a line running from Chicago, Illinois to
, Louisiana. This single purchase of IC transformed CN's entire corporate focus from being an east–west uniting presence within Canada (sometimes to the detriment of logical business models) into a north–south ''NAFTA'' railway (in reference to the
North American Free Trade Agreement
The North American Free Trade Agreement (NAFTA ; es, Tratado de Libre Comercio de América del Norte, TLCAN; french: Accord de libre-échange nord-américain, ALÉNA) was an agreement signed by Canada, Mexico, and the United States that crea ...
). CN is now feeding Canadian raw material exports into the U.S. heartland and beyond to Mexico through a strategic alliance with
Kansas City Southern Railway
The Kansas City Southern Railway Company is an American Class I railroad. Founded in 1887, it operates in 10 midwestern and southeastern U.S. states: Illinois, Missouri, Kansas, Oklahoma, Arkansas, Tennessee, Alabama, Mississippi, Loui ...
(KCS).
In 1999, CN and
BNSF Railway
BNSF Railway is one of the largest freight railroads in North America. One of seven North American Class I railroads, BNSF has 35,000 employees, of track in 28 states, and nearly 8,000 locomotives. It has three transcontinental routes that ...
, the second largest rail system in the U.S., announced their intent to merge, forming a new corporate entity ''North American Railways'', headquartered in Montreal to conform to the ''CN Commercialization Act'' of 1995. The merger announcement by CN's Paul Tellier and BNSF's
Robert Krebs was greeted with skepticism by the U.S. government's
Surface Transportation Board
The Surface Transportation Board (STB) of the United States is a federal, bipartisan, independent adjudicatory board. The STB was established on January 1, 1996, to assume some of the regulatory functions that had been administered by the Interstat ...
(STB), and protested by other major North American rail companies, namely CPR and
Union Pacific Railroad
The Union Pacific Railroad , legally Union Pacific Railroad Company and often called simply Union Pacific, is a freight-hauling railroad that operates 8,300 locomotives over routes in 23 U.S. states west of Chicago and New Orleans. Union Paci ...
(UP). Rail customers also denounced the proposed merger, following the confusion and poor service sustained in southeastern Texas in 1998 following UP's purchase of
Southern Pacific Railroad
The Southern Pacific (or Espee from the railroad initials- SP) was an American Class I railroad network that existed from 1865 to 1996 and operated largely in the Western United States. The system was operated by various companies under the ...
two years earlier. In response to the rail industry, shippers, and political pressure, the STB placed a 15-month moratorium on all rail-industry mergers, effectively scuttling CN-BNSF plans. Both companies dropped their merger applications and have never refiled.
After the STB moratorium expired, CN purchased
Wisconsin Central (WC) in 2001, which allowed the company's rail network to encircle
Lake Michigan
Lake Michigan is one of the five Great Lakes of North America. It is the second-largest of the Great Lakes by volume () and the third-largest by surface area (), after Lake Superior and Lake Huron. To the east, its basin is conjoined with that o ...
and
Lake Superior
Lake Superior in central North America is the largest freshwater lake in the world by surface areaThe Caspian Sea is the largest lake, but is saline, not freshwater. and the third-largest by volume, holding 10% of the world's surface fresh wa ...
, permitting more efficient connections from Chicago to western Canada. The deal also included Canadian WC subsidiary
Algoma Central Railway
The Algoma Central Railway is a railway in Northern Ontario that operates between Sault Ste. Marie and Hearst. It used to have a branch line to Wawa, Ontario. The area served by the railway is sparsely populated, with few roads.
The ra ...
(ACR), giving access to
Sault Ste. Marie and
Michigan's Upper Peninsula. The purchase of Wisconsin Central also made CN the owner of
EWS, the principal freight train operator in the United Kingdom.
On May 13, 2003, the provincial government of British Columbia announced the provincial
Crown corporation
A state-owned enterprise (SOE) is a government entity which is established or nationalised by the ''national government'' or ''provincial government'' by an executive order or an act of legislation in order to earn profit for the government ...
,
BC Rail
BC Rail is a railway in the Canadian province of British Columbia.
Chartered as a private company in 1912 as the Pacific Great Eastern Railway (PGE), it was acquired by the provincial government in 1918. In 1972 it was renamed to the British ...
(BCR), would be sold with the winning bidder receiving BCR's surface operating assets (locomotives, cars, and service facilities). The provincial government is retaining ownership of the tracks and right-of-way. On November 25, 2003, it was announced CN's bid of billion would be accepted over those of CPR and several U.S. companies. The transaction was closed effective July 15, 2004. Many opponents – including CPR – accused the government and CN of rigging the bidding process, though this has been denied by the government. Documents relating to the case are under court seal, as they are connected to a parallel
marijuana grow-op investigation connected with two senior government aides also involved in the sale of BC Rail.
Also contested was the economic stimulus package the government gave cities along the BC Rail route. Some saw it as a buy-off to get the municipalities to cooperate with the lease, though the government asserted the package was intended to promote economic development along the corridor. Passenger service along the route had been ended by BC Rail a few years earlier due to ongoing losses resulting from deteriorating service. The cancelled passenger service has subsequently been replaced by a blue-plate tourist service, the
Rocky Mountaineer
Rocky Mountaineer is a Canadian rail-tour company based in Vancouver that operates luxury scenic trains on four rail routes in British Columbia, Alberta, Colorado, and Utah.
History
Via Rail Canada
The Rocky Mountaineer concept was created b ...
, with fares well over double what the BCR coach fares had been.
CN also announced in October 2003 an agreement to purchase
Great Lakes Transportation (GLT), a holding company owned by Blackstone Group for US$380 million. GLT was the owner of
Bessemer & Lake Erie Railroad
The Bessemer and Lake Erie Railroad is a class II railroad that operates in northwestern Pennsylvania and northeastern Ohio.
The railroad's main route runs from the Lake Erie port of Conneaut, Ohio, to the Pittsburgh suburb of Penn Hills, P ...
,
Duluth, Missabe and Iron Range Railway
The Duluth, Missabe and Iron Range Railway (DM&IR) , informally known as the Missabe Road, was a railroad operating in northern Minnesota and Wisconsin that used to haul iron ore and later taconite to the Great Lakes ports of Duluth and Two Harbor ...
(DM&I), and the Pittsburgh & Conneaut Dock Company. The key instigator for the deal was the fact that since the Wisconsin Central purchase, CN was required to use DM&I trackage rights for a short "gap" near
Duluth, Minnesota
, settlement_type = City
, nicknames = Twin Ports (with Superior, Wisconsin, Superior), Zenith City
, motto =
, image_skyline =
, image_caption = Clockwise from top: Downtown Dul ...
, on the route between Chicago and Winnipeg. To purchase this short section, CN was told by GLT it would have to purchase the entire company. Also included in GLT's portfolio were eight Great Lakes vessels for transporting bulk commodities such as coal and iron ore as well as various port facilities. Following Surface Transportation Board approval for the transaction, CN completed the purchase of GLT on May 10, 2004.
On December 24, 2008, the STB approved CN's purchase for $300 million of the principal lines of the
Elgin, Joliet & Eastern Railway Company (EJ&E) (
reporting mark
A reporting mark is a code used to identify owners or lessees of rolling stock and other equipment used on certain rail transport networks. The code typically reflects the name or identifying number of the owner, lessee, or operator of the equip ...
EJE) from the
U.S. Steel Corporation
United States Steel Corporation, more commonly known as U.S. Steel, is an American integrated steel producer headquartered in Pittsburgh, Pennsylvania, with production operations primarily in the United States of America and in several countries ...
, originally announced on September 27, 2007. The STB's decision was to become effective on January 23, 2009, with a closure of the transaction shortly thereafter. The EJ&E lines create a bypass around the western side of heavily congested Chicago-area rail hub and its conversion to use for mainline freight traffic is expected to alleviate substantial bottlenecks for both regional and intercontinental rail traffic subject to lengthy delays entering and exiting Chicago freight yards. The purchase of the lightly used EJ&E corridor was positioned by CN as a boon not only for its own business but for the efficiency of the entire U.S. rail system.
On December 31, 2011, CN completed the merger of DM&I, DWP, and WC into its Wisconsin Central Ltd. subsidiary.
In March 2021, CN subsidiary WCL reached a deal to sell roughly of non-core rail lines and assets in Michigan, Wisconsin, and Ontario to short-line operator
Watco
Watco Companies, L.L.C. (Watco) is a transportation company based in Pittsburg, Kansas, formed in 1983 by Charles R. Webb. Watco was composed of four divisions: transportation, mechanical, terminal and port services, and compliance. Watco is th ...
.
In April 2021, CN bid nearly $30 billion for
Kansas City Southern (KCS), ostensibly creating a bidding war between itself and CPR, who had placed a $25 billion bid for the company in March. CN's offer represented a 21% premium to the one made by Canadian Pacific, offering $325 for each share and including $200 in cash. The move by CN was influenced by the projected economic upturn once the world began to emerge from the
COVID-19 pandemic
The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing global pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The novel virus was first identi ...
, with KCS's railroad network reaching from Canada, through the United States, and running along the Panama Canal. On May 21, CN and KCS agreed to merge, but lengthy regulatory approvals are required to put it into effect. However, on August 31, the US
Surface Transportation Board
The Surface Transportation Board (STB) of the United States is a federal, bipartisan, independent adjudicatory board. The STB was established on January 1, 1996, to assume some of the regulatory functions that had been administered by the Interstat ...
(STB) denied a voting trust between CN and KCS. With the decision by the STB, KCS re-engaged with CP on CP's original offer.
CN today
Since the company operates in two countries, CN maintains some corporate distinction by having its U.S. lines incorporated under the
Delaware-domiciled Grand Trunk Corporation
The Grand Trunk Corporation is the subsidiary holding company for the Canadian National Railway's properties in the United States. It is named for CN subsidiary railroad Grand Trunk Western Railroad. The Association of American Railroads has consi ...
for legal purposes; however, the entire company in both Canada and the U.S. operates under CN, as can be seen in its locomotive and rail car repainting programs.
Since the Illinois Central purchase in 1998 CN has been increasingly focused on running a "scheduled freight railroad/railway." This has resulted in improved shipper relations, as well as reduced the need for maintaining pools of surplus locomotives and freight cars. CN has also undertaken a rationalization of its existing track network by removing double track sections in some areas and extending passing sidings in other areas.
CN is also a rail industry leader in the employment of radio-control (R/C) for switching locomotives in yards, resulting in reductions to the number of yard workers required. CN has frequently been touted in recent years within North American rail industry circles as being the ''most-improved railroad'' in terms of productivity and the lowering of its
operating ratio In finance, the operating ratio is a company's operating expenses as a percentage of revenue. This financial ratio is most commonly used for industries which require a large percentage of revenues to maintain operations, such as railroads. In railro ...
, acknowledging the fact the company is becoming increasingly profitable. Due to the rising popularity of
ethanol
Ethanol (abbr. EtOH; also called ethyl alcohol, grain alcohol, drinking alcohol, or simply alcohol) is an organic compound. It is an alcohol with the chemical formula . Its formula can be also written as or (an ethyl group linked to a ...
,
shuttle train
A shuttle train is a train that runs back and forth between two points, especially if it offers a frequent service over a short route. Shuttle trains are used in various ways, in various parts of the world. They commonly operate as a fixed consi ...
s, and mineral commodities, CN Rail Service is increasing in popularity.
Projects
In April 2012 a plan was announced to build an railway that would run north from
Sept-Îles, Quebec
Sept-Îles ( Quebec French pronunciation : , French for "Seven Islands") is a city in the Côte-Nord region of eastern Quebec. It is among the northernmost locales with a paved connection to the rest of Quebec's road network. The population was ...
; the railway would support mining and other resource extraction in the
Labrador Trough
The Labrador Trough or the New Quebec Orogen is a long and wide geologic belt in Canada, extending south-southeast from Ungava Bay through Quebec and Labrador.
The trough is a linear belt of sedimentary and volcanic rocks which developed in an ...
.
In September 2012, CN announced the trial of locomotives fuelled by
natural gas
Natural gas (also called fossil gas or simply gas) is a naturally occurring mixture of gaseous hydrocarbons consisting primarily of methane in addition to various smaller amounts of other higher alkanes. Low levels of trace gases like carbon d ...
as a potential alternative to conventional diesel fuel. Two
EMD SD40
The EMD SD40 is an American 6-axle diesel-electric locomotive built by General Motors Electro-Motive Division between January 1966 and August 1972. 1,268 locomotives were built between 1966 and 1972. In 1972, an improved version with new electron ...
diesel-electric locomotives fuelled with 90% natural gas and 10% diesel were tested in service between
Edmonton
Edmonton ( ) is the capital city of the Canadian province of Alberta. Edmonton is situated on the North Saskatchewan River and is the centre of the Edmonton Metropolitan Region, which is surrounded by Alberta's central region. The city an ...
and
Fort McMurray, Alberta
Fort McMurray ( ) is an urban service area in the Regional Municipality of Wood Buffalo in Alberta, Canada. It is located in northeast Alberta, in the middle of the Athabasca oil sands, surrounded by boreal forest. It has played a significan ...
.
Controversies
Accidents
*in 1986, an accident happened near Dalehurst, Alberta. CN westbound freight slammed into a Via Rail eastbound, killing 23 and injuring 71. The wreck was caused due to multiple factors caused by CN.
*In December 1999 the ''Ultratrain'', a petroleum products unit train linking the Levis (Quebec)
Ultramar
Ultramar is an Eastern Canadian gas and home fuel retailer, with its head office located in Montreal, Quebec. Ultramar operates gas stations and home fuel delivery in Ontario, Quebec, and Atlantic Canada.
History
British oil company Ultramar ...
oil refinery with a petroleum depot in Montreal, exploded when it collided with a derailed freight train travelling in the opposite direction between
Sainte-Madeleine and
Saint-Hilaire-Est, south of Montreal, killing the crew of the freight train (the Ultratrain crew's last words were "you guys are derailed, we're hitting you!"). The other train derailed at a broken rail caused by a defective weld that was not fixed in time, despite being repeatedly reported by train crews; the report by the
Transportation Safety Board of Canada
The Transportation Safety Board of Canada (TSB, french: Bureau de la sécurité des transports du Canada, BST), officially the Canadian Transportation Accident Investigation and Safety Board (french: link=no, Bureau canadien d'enquête sur les ...
called into question CN's quality assurance program for rail welds as well as the lack of detection equipment for defective wheels. In memory of the dead crewmen, two new stations on the line have been named after them (Davis and Thériault).
*On May 14, 2003, a trestle collapsed under the weight of a freight train near
McBride, British Columbia
McBride is a village in the Robson Valley region of British Columbia, Canada. The village is located southeast of Prince George, British Columbia, and west of Jasper, Alberta. Incorporated in 1932, McBride is located in the Robson Valley sur ...
, killing both crew members. Both men had been disciplined earlier for refusing to take another train on the same bridge, claiming it was unsafe. It was revealed that as far back as 1999, several bridge components had been reported as rotten, yet no repairs had been ordered by management. Eventually, the disciplinary records of both crewmen were amended posthumously.
*Two CN trains collided on August 4, 2007, on the banks of the
Fraser River
The Fraser River is the longest river within British Columbia, Canada, rising at Fraser Pass near Blackrock Mountain in the Rocky Mountains and flowing for , into the Strait of Georgia just south of the City of Vancouver. The river's annual ...
near
Prince George, British Columbia
Prince George is the largest city in northern British Columbia, Canada, with a population of 74,004 in the metropolitan area. It is often called the province's "northern capital" or sometimes the "spruce capital" because it is the hub city for ...
. Several cars carrying gasoline, diesel and lumber burst into flames. Water bombers were used to help put out the fires. Some fuel had seeped into the Fraser River.
*On December 4, 2007, a CN train derailed near
Edmonton
Edmonton ( ) is the capital city of the Canadian province of Alberta. Edmonton is situated on the North Saskatchewan River and is the centre of the Edmonton Metropolitan Region, which is surrounded by Alberta's central region. The city an ...
in
Strathcona County, Alberta
Strathcona County is a specialized municipality in the Edmonton Metropolitan Region within Alberta, Canada between Edmonton and Elk Island National Park. It forms part of Census Division No. 11.
Strathcona County is both urban and rural in n ...
, at 3:30 a.m
Mountain Standard Time
The Mountain Time Zone of North America keeps time by subtracting seven hours from Coordinated Universal Time (UTC) when standard time ( UTC−07:00) is in effect, and by subtracting six hours during daylight saving time ( UTC−06:00). The cloc ...
. Of the 28 cars derailed, the majority were empty or carrying non-hazardous materials such as lumber or pipes.
Derailments
*On May 27, 2002, a CN train derailed at 12:30 p.m. north of Vermontville Highway in
Potterville, Michigan
Potterville is a city in Eaton County in the U.S. state of Michigan. The population was 2,617 at the 2010 census.
History
Potterville is named after Linus Potter, who settled his family in the area in November, 1844. Linus was elected super ...
. The train was hauling a total of 58 cars. Thirty-five of the cars derailed and 11 of them contained hazmat material. Nine were carrying propane and two cars carried
sulfuric acid
Sulfuric acid (American spelling and the preferred IUPAC name) or sulphuric acid ( Commonwealth spelling), known in antiquity as oil of vitriol, is a mineral acid composed of the elements sulfur, oxygen and hydrogen, with the molecular fo ...
. Two of the propane tankers were leaking and a third was suspected of leaking. Each propane car contains 34,000 gallons of propane gas which is considered an extreme fire and explosive hazard. An evacuation of Potterville was declared. CN along with other agencies worked throughout the week to clean the area.
*A second CN train derailment in Potterville, Michigan, occurred in May 2006, though no evacuation was necessary. The cause of this derailment was found to be a failed wheel bearing on the 82nd car.
*About 9:04 am central standard time on February 9, 2003, northbound CN freight train M33371 derailed 22 of its 108 cars in
Tamaroa, Illinois
Tamaroa is a village in the Tamaroa Precinct of Perry County, Illinois, United States. The population was 638 at the 2010 census.
History
The village is named after the Tamaroa, an Illiniwek people.
Geography
Tamaroa is located at .
According t ...
. Four of the derailed cars released methanol, and the methanol from two of these four cars fueled a fire. Other derailed cars contained
phosphoric acid
Phosphoric acid (orthophosphoric acid, monophosphoric acid or phosphoric(V) acid) is a colorless, odorless phosphorus-containing solid, and inorganic compound with the chemical formula . It is commonly encountered as an 85% aqueous solution, w ...
,
hydrochloric acid
Hydrochloric acid, also known as muriatic acid, is an aqueous solution of hydrogen chloride. It is a colorless solution with a distinctive pungent smell. It is classified as a strong acid. It is a component of the gastric acid in the dige ...
,
formaldehyde
Formaldehyde ( , ) ( systematic name methanal) is a naturally occurring organic compound with the formula and structure . The pure compound is a pungent, colourless gas that polymerises spontaneously into paraformaldehyde (refer to section ...
, and
vinyl chloride
Vinyl chloride is an organochloride with the formula H2C=CHCl. It is also called vinyl chloride monomer (VCM) or chloroethene. This colorless compound is an important industrial chemical chiefly used to produce the polymer polyvinyl chloride (PVC ...
. Two cars containing hydrochloric acid, one car containing formaldehyde, and one car containing vinyl chloride released product but were not involved in the fire. About 850 residents were evacuated from the area within a radius of the derailment, which included the entire village of Tamaroa. Improper placement of bond wire welds on the head of the rail just outside the joint bars, where untempered martensite associated with the welds led to fatigue and subsequent cracking that, because of increased stresses associated with known soft ballast conditions, rapidly progressed to rail failure.
*On August 5, 2005, in the
Cheakamus River derailment, a CN train had nine cars derail on a bridge over the
Cheakamus River
The Cheakamus River (pron. CHEEK-a-mus) is a tributary of the Squamish River, beginning on the west slopes of Outlier Peak in Garibaldi Provincial Park upstream from Cheakamus Lake on the southeastern outskirts of the resort area of Whistler. ...
, causing of
caustic soda
Sodium hydroxide, also known as lye and caustic soda, is an inorganic compound with the formula NaOH. It is a white solid ionic compound consisting of sodium cations and hydroxide anions .
Sodium hydroxide is a highly caustic base and alkali ...
to spill into the river, killing thousands of fish by caustic burns and asphyxiation. The CBC reported environmental experts say it would take the river 50 years or more to recover from the toxic pollution. CN is facing accusations from local
British Columbia
British Columbia (commonly abbreviated as BC) is the westernmost province of Canada, situated between the Pacific Ocean and the Rocky Mountains. It has a diverse geography, with rugged landscapes that include rocky coastlines, sandy beaches, for ...
ns over the railway's supposed lack of response to this issue, touted as the worst chemical spill in British Columbia's history.
*A derailment at
Moran, north of
Lillooet
Lillooet () is a district municipality in the Squamish-Lillooet region of southwestern British Columbia. The town is on the west shore of the Fraser River immediately north of the Seton River mouth. On BC Highway 99, the locality is by road abo ...
, on June 30, 2006, has raised more questions about CN's safety policies. Two more derailments near
Lytton in August 2006 have continued criticism. In the first case, 20 coal cars of a CPR train using a CN bridge derailed, dumping 12 cars of coal into the
Thompson River
The Thompson River is the largest tributary of the Fraser River, flowing through the south-central portion of British Columbia, Canada. The Thompson River has two main branches, the South Thompson River and the North Thompson River. The ri ...
. In the second case half a dozen grain cars spilled on a CN train.
*On June 19, 2009, a CN freight train derailed at a highway/rail grade crossing in
Cherry Valley, Illinois
Cherry Valley is a village of in the Kishwaukee River valley, which lies primarily in Winnebago County. Approximately ten percent of the village is within Boone County. The village is within the Rockford, Illinois Metropolitan Statistical Area, ...
(near
Rockford). The train consisted of two locomotives and 114 cars, 19 of which derailed. All of the derailed cars were tank cars carrying denatured fuel ethanol, a flammable liquid, and thirteen were breached or lost product and caught fire. As a result of the fire that erupted after the derailment, a passenger in a car stopped at the crossing was fatally injured, two passengers in the same car received serious injuries, and five occupants of other cars waiting at the highway/rail crossing were injured. Two responding firefighters also sustained minor injuries. The release of ethanol and the resulting fire prompted a mandatory evacuation of about 600 residences within a radius of the accident site. Monetary damages were estimated to total $7.9 million. The probable cause of the accident was the washout of the track structure that was discovered about 1 hour before the train's arrival, and CN's failure to notify the train crew of the known washout in time to stop the train. Contributing factors were CN's failure to work with
Winnebago County to develop a comprehensive storm water management plan to address previous washouts, CN's failure to issue the flash flood warning to the train crew, and the inadequate design of the train's
DOT-111 tank car
A tank car ( International Union of Railways (UIC): tank wagon) is a type of railroad car (UIC: railway car) or rolling stock designed to transport liquid and gaseous commodities.
History
Timeline
The following major events occurred in ...
s.
Disputes
*In March 2004 a strike by the
Canadian Auto Workers
The Canadian Auto Workers (CAW; formally the National Automobile, Aerospace, Transportation and General Workers Union of Canada) was one of Canada's largest and highest profile labour unions. In 2013, it merged with the Communications, Energy and ...
union showed deep-rooted divisions between
organized labour
The labour movement or labor movement consists of two main wings: the trade union movement (British English) or labor union movement (American English) on the one hand, and the political labour movement on the other.
* The trade union movement ...
and the company's current management.
*
Transport Canada
Transport Canada (french: Transports Canada) is the department within the Government of Canada responsible for developing regulations, policies and services of road, rail, marine and air transportation in Canada. It is part of the Transporta ...
has restricted CN to trains not exceeding 80 car lengths because of the multiple derailments on the former BCR line north from
Squamish. This was due to sufficient warnings from the former
B.C. Rail to Canadian National Railway to avoid trains of over 60 cars. Unfortunately these warnings were ignored by CN who had been running trains well in excess of 80 cars on this winding and mountainous section of track, known for some of the steepest track in North America.
*In October 2013 the James Street bridge between
Thunder Bay
Thunder Bay is a city in and the seat of Thunder Bay District, Ontario, Canada. It is the most populous municipality in Northwestern Ontario and the second most populous (after Greater Sudbury) municipality in Northern Ontario; its populati ...
and
Fort William First Nation
Fort William First Nation ( oj, Animkii Wajiw) is an Ojibwa First Nation reserve in Ontario, Canada. The administrative headquarters for this band government is south of Thunder Bay. , the First Nation had a registered population of 1,798 peopl ...
was subject to an act of arson causing great structural damage to the bridge. The bridge was the most direct route between Thunder Bay and Fort William First Nation reserve and was used by foot traffic, vehicular traffic, and rail traffic. The matter of who is responsible for the maintenance and repair of the bridge is subject to great controversy between the City of Thunder Bay and CN due to an agreement dating back to 1906 between the Grand Trunk Pacific Railway Company (later incorporated as CNR along with other railways) and the City of Fort William (later merged with the
City of Port Arthur into the City of Thunder Bay). The 1906 Agreement states that "The Company will give the Municipal Corporation the perpetual right to cross said bridge for ...vehicle and foot traffic" and that "The Company will maintain the bridge in perpetuity without cost to the Town..." After the fire, CN made repairs to the bridge for use of its rail system but did not repair the damage to the vehicle lanes which render it unsafe for vehicle use. CN maintains that the 1906 Agreement does not speak to replacement of the bridge while the position of the City of Thunder Bay is that CN is solely responsible for making the necessary repairs to restore function to the vehicle lanes of the bridge.
Other incidents
*Controversy arose again in Canadian political circles in 2003 following the company's decision to refer solely to its acronym "CN" and not "Canadian National", a move some interpret as being an attempt to distance the company from references to "Canada". Canada's Minister of Transport at the time called this policy move "obscene" after nationalists noted it could be argued the company is no longer Canadian, being primarily owned by American stockholders. The controversy is somewhat tempered by the fact a majority of large corporations are being increasingly referred to by acronyms.
*The residents of
Wabamun Lake
Wabamun Lake (sometimes spelled Wabumun) is one of the most heavily used lakes in Alberta, Canada. It lies west of Edmonton, Alberta. It is long and narrow, covers and is deep at its deepest, with somewhat clear water.
Its name derives from ...
, in
Alberta
Alberta ( ) is one of the thirteen provinces and territories of Canada. It is part of Western Canada and is one of the three prairie provinces. Alberta is bordered by British Columbia to the west, Saskatchewan to the east, the Northwest T ...
, staged a blockade of CN tracks in August 2005, when they were unsatisfied with the railway's response to a derailment catastrophe that spilled over 700,000 Litres of tarry fuel oil and about 80,000 L of carcinogenic pole treatment oil into the lake. Reporters found pre-spill evidence. CN executives admitted CN failed to provide public safety information to prevent public exposure to carcinogenic, toxic chemicals. The tar-like oil and chemicals killed over 500 large migratory birds, animals, fish and other aquatic life.
*In the years following CN's 1998 acquisition of Illinois Central, the company has come under scrutiny for illicit practices that allegedly cause the delay of
Amtrak
The National Railroad Passenger Corporation, doing business as Amtrak () , is the national passenger railroad company of the United States. It operates inter-city rail service in 46 of the 48 contiguous U.S. States and nine cities in Canada. ...
schedules. In 2012, Amtrak filed a formal complaint against CN with the
Surface Transportation Board
The Surface Transportation Board (STB) of the United States is a federal, bipartisan, independent adjudicatory board. The STB was established on January 1, 1996, to assume some of the regulatory functions that had been administered by the Interstat ...
, stating that the prioritization of freight traffic over passenger traffic was commonplace on Amtrak routes operating on CN lines. The complaint cited over 4,000 delays during fiscal year 2011 on the route between
Chicago
(''City in a Garden''); I Will
, image_map =
, map_caption = Interactive Map of Chicago
, coordinates =
, coordinates_footnotes =
, subdivision_type = List of sovereign states, Count ...
and
Carbondale, totaling over 26 days of net wasted schedule time; it also reported 99% of delays between Chicago and
on the ''
City of New Orleans route'' were caused by CN dispatching issues. In 2018, Amtrak began issuing public report cards, grading the impact of freight railroads on passenger train performance. CN received the lowest-possible grade of "F" on the first card issued in March 2018.
Non-rail subsidiaries
CN Telegraph
CN Telegraph originated as the Great North West Telegraph Company in 1880 to connect
Ontario
Ontario ( ; ) is one of the thirteen provinces and territories of Canada.Ontario is located in the geographic eastern half of Canada, but it has historically and politically been considered to be part of Central Canada. Located in Central Ca ...
and
Manitoba
Manitoba ( ) is a Provinces and territories of Canada, province of Canada at the Centre of Canada, longitudinal centre of the country. It is Canada's Population of Canada by province and territory, fifth-most populous province, with a population o ...
and became a subsidiary of
Western Union
The Western Union Company is an American multinational financial services company, headquartered in Denver, Colorado.
Founded in 1851 as the New York and Mississippi Valley Printing Telegraph Company in Rochester, New York, the company cha ...
in 1881. In 1915, facing bankruptcy, GNWTC was acquired by the
Canadian Northern Railway
The Canadian Northern Railway (CNoR) was a historic Canadian transcontinental railway. At its 1923 merger into the Canadian National Railway , the CNoR owned a main line between Quebec City and Vancouver via Ottawa, Winnipeg, and Edmonton.
Man ...
's telegraph company. When Canadian Northern was nationalized in 1918 and amalgamated into Canadian National Railways in 1921, its telegraph arm was renamed the Canadian National Telegraph Company. CN Telegraphs began co-operating with its
Canadian Pacific
The Canadian Pacific Railway (french: Chemin de fer Canadien Pacifique) , also known simply as CPR or Canadian Pacific and formerly as CP Rail (1968–1996), is a Canadian Class I railway incorporated in 1881. The railway is owned by Canadi ...
-owned rival
CPR Telegraphs in the 1930s, sharing telegraph networks and co-founding a
teleprinter
A teleprinter (teletypewriter, teletype or TTY) is an electromechanical device that can be used to send and receive typed messages through various communications channels, in both point-to-point and point-to-multipoint configurations. Init ...
system in 1957. In 1967 the two services were amalgamated into a joint venture
CNCP Telecommunications
CNCP Telecommunications (Canadian National-Canadian Pacific Telecommunications) was an electrical telegraph operator and later a telecom company, which operated between 1967 and 1990.
CNCP was created as a joint venture between the Canadian Nat ...
which evolved into a telecoms company. CN sold its stake of the company to CP in 1984.
CNR Radio
In 1923 CNR's second president,
Sir Henry Thornton who succeeded David Blyth Hanna (1919–1922), created the CNR Radio Department to provide passengers with entertainment radio reception and give the railway a competitive advantage over its rival, CP. This led to the creation of a network of CNR radio stations across the country, North America's first radio network. As anyone in the vicinity of a station could hear its broadcasts the network's audience extended far beyond train passengers to the public at large.
Claims of unfair competition from CP as well as pressure on the government to create a
public broadcasting
Public broadcasting involves radio, television and other electronic media outlets whose primary mission is public service. Public broadcasters receive funding from diverse sources including license fees, individual contributions, public financing ...
system similar to the
British Broadcasting Corporation #REDIRECT BBC #REDIRECT BBC
Here i going to introduce about the best teacher of my life b BALAJI sir. He is the precious gift that I got befor 2yrs . How has helped and thought all the concept and made my success in the 10th board exam. ...
...
(who had been a corporate lawyer with Canadian Pacific as a client prior to entering politics) to pressure CNR into ending its on-train radio service in 1931 and then withdrawing from the radio business entirely in 1933. CNR's radio assets were sold for $50,000 to a new public broadcaster, the
in 1936.
, ostensibly to provide rail passengers travelling long distances a place to sleep overnight. These hotels became attractions in and of themselves – a place for a rail passenger to go for a holiday. As each
sought to be more attractive than its competitors, they made their hotels more attractive and luxurious.
was the CNRs chain of hotels and was a combination of hotels inherited by the CNR when it acquired various railways and structures built by the CNR itself. The chain's principal rival was
.
and East Coast of Canada which operated under a branch of the company known as Canadian National Steamships, later
.
, England, built and for the Grand Trunk Pacific Railway in 1910.
, England, built , ''Prince Henry'' and ''Prince Robert''.