CN EMD SD70M-2, SD75I and SD60F in Alberta, Canada. Click to enlarge.

(Kabelleger / David Gubler, CC BY-SA 4.0 <https://creativecommons.org/licenses/by-sa/4.0>, via Wikimedia Commons)

 

CN "worm" logo.

CANADIAN NATIONAL RAILWAYS (CN)

The Canadian National Railway Company (French: Compagnie des chemins de fer nationaux du Canada) (reporting mark CN) is a Canadian Class I freight railway headquartered in Montreal, Quebec, which serves Canada and the Midwestern and Southern United States.

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 to the Pacific coast in British Columbia across approximately 20,400 route miles (32,831 km) of track. In the late 20th century, CN gained extensive capacity in the United States by taking over such railroads as the Illinois Central.

CN is a public company with 22,600 employees, and as of July 2019 it has a market cap of approximately CA$90 billion. CN was government-owned, having been a Canadian Crown corporation from its founding in 1919 until being privatized in 1995. As of 2019, Bill Gates is the largest single shareholder of CN stock, owning a 14.2% interest through Cascade Investment and his own Bill and Melinda Gates Foundation.

From 1919 to 1978, the railway was referred to as "Canadian National Railways" (CNR).

 

Designer Allan Fleming and CN director of communications Charles Harris at the launch of the CN logo at Montreal in 1960. Fleming's logo has since become an icon of graphic design. (Allan Fleming, Public domain, via Wikimedia Commons)

 

Historical marker at site of Canadian Northern's "last spike" near Ashcroft, British Columbia. (Jeffrey Wynne, CC BY-SA 4.0 <https://creativecommons.org/licenses/by-sa/4.0>, via Wikimedia Commons)

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 hands, along with some railways already owned by the government. Primarily a freight railway, CN also operated passenger services until 1978, when they were assumed by Via Rail. The only passenger services run by CN after 1978 were several mixed trains (freight and passenger) in Newfoundland, 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 and Wisconsin Central Transportation, among others.

 

Canadian National System Map. Click to enlarge.

(By Central Data Bank at en.wikipedia, CC BY 3.0, https://commons.wikimedia.org/w/index.php?curid=15028258)

 

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 (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 (CGR), a system mainly comprising the Intercolonial Railway of Canada (IRC), National Transcontinental Railway (NTR), Prince Edward Island Railway (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 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 (GTPR), encountered financial difficulty on March 7, 1919, when its parent company Grand Trunk Railway (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, 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 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 in order to safeguard critical transportation infrastructure during the First World War.

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. 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 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.

 

The headquarters of CN in Downtown Montreal. Click to enlarge.

(File uploaded on Wikimapia from user ANDREBUSSIERE, CC BY-SA 3.0 <https://creativecommons.org/licenses/by-sa/3.0>, via Wikimedia Commons)

 

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, previously purchased by RailAmerica. This purchase allowed CN to increase their network footprint and hold the northernmost trackage of the contiguous North American 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 and Eastern Railway
In 2009 CN acquired the Elgin, Joliet and Eastern Railway 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.

 

CNR early herald.

An early logo or "herald" of the Canadian National Railways. It was replaced by the CN "worm" in 1960.

(B. Stefanowitsch, CC BY-SA 3.0 <https://creativecommons.org/licenses/by-sa/3.0>, via Wikimedia Commons)

 

Canadian National Railway locomotive No. 9000, preserved in classic livery at the Alberta Railway Museum near Edmonton. Class GFA-15a, built May 1948. Click to enlarge.

(SoftwareSimian, CC BY-SA 3.0 <https://creativecommons.org/licenses/by-sa/3.0>, via Wikimedia Commons)

 

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 from its inception in 1918 until its privatization in 1995. Some of the most scathing criticism came from the railway industry itself—namely the commercially successful Canadian Pacific Railway (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, while the CNR's merged system served as a de facto government colonization railway to serve remote and underdeveloped regions of Western Canada, northern Ontario and Quebec, and the Maritimes.

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 centers; and even now the CN still 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, to assuming the operation of the narrow-gauge Newfoundland Railway following that province's entry into Confederation, and the partnership with CPR in purchasing and operating the Northern Alberta Railways.

 

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 and Quebec. The former GTR's superior track network in the Montreal–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 labor 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, CN reported a profit in 11 of the 15 years from 1978 to 1992, paying CA$371 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 (created in 1937 as Trans-Canada Air Lines) became a separate federal Crown corporation. That same year saw CN move its ferry operations into a separate Crown corporation named CN Marine, 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 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. 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 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 (sold to CPR), real estate, and telecommunications companies. The biggest telecommunications property was a company co-owned by CN and CP (CNCP Telecommunications) that originated from a joint venture involving the railways' respective telegraph services. On its sale in the 1980s, it was successively renamed Unitel (United Telecommunications), AT&T Canada, and Allstream as it went through various owners and branding agreements. CN sold Terra Nova Tel to Newfoundland Telephone in 1988. Another telecommunications property wholly owned and built by CN was the CN Tower 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 lines 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 (CN subsidiary Terra Transport, the former Newfoundland Railway ended railway freight operations and mixed freight-passenger trains in 1988. Mainline Passenger rail service in Newfoundland ended in 1969.) and Prince Edward Island (the former PEIR), as well as numerous branch lines in Nova Scotia, New Brunswick, Southern Ontario, throughout the Prairie provinces, in the British Columbia interior, and on Vancouver Island. 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 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 (GTW) operating in Michigan, Indiana, and Illinois; Duluth, Winnipeg and Pacific Railway (DWP) operating in Minnesota; Central Vermont Railway (CV) operating down the Connecticut River valley from Quebec to Long Island Sound; and the Berlin subdivision to Portland, Maine, 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 and Michael Sabia, started preparing CN for privatization 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 (rumored to have been Burlington Northern Railroad) 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 (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, thus maintaining CN as a Canadian corporation.

 

CN EMD SD60F No. 5500 in Toledo, Ohio. (Adolch, CC BY-SA 3.0 <https://creativecommons.org/licenses/by-sa/3.0>, via Wikimedia Commons)

 

The "CN North America" logo that was used from 1993 to 1995, before the plain "CN" logo was reinstated. (en:user:Myke2020, Public domain, via Wikimedia Commons)

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 and Toronto to Vancouver and Prince Rupert. The railway also operated trains from Winnipeg 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. In 1998, in an era of mergers in the U.S. rail industry, CN bought the Illinois Central Railroad (IC), which connected the already existing lines from Vancouver, British Columbia to Halifax, Nova Scotia with a line running from Chicago, Illinois to New Orleans, 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). 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 (KCS).

In 1999, CN and BNSF Railway, 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 (STB), and protested by other major North American rail companies, namely CPR and Union Pacific Railroad (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 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 and Lake Superior, permitting more efficient connections from Chicago to western Canada. The deal also included Canadian WC subsidiary Algoma Central Railway (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, BC Rail (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 CA$1 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, 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, Duluth, Missabe and Iron Range Railway (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 18 km (11 mi) "gap" near Duluth, Minnesota, 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 EJE) from the U.S. Steel Corporation, 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 1,400 km (900 mi) of non-core rail lines and assets in Michigan, Wisconsin, and Ontario to short-line operator Watco.

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, 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 (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. The merger between the Kansas City Southern and Canadian Pacific Railway was ultimately approved on March 15, 2023, and the two railroads merged on April 14, 2023. The new company is now called Canadian Pacific Kansas City (CPKC).

 

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 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, acknowledging the fact the company is becoming increasingly profitable. Due to the rising popularity of ethanol, shuttle trains, and mineral commodities, CN Rail Service is increasing in popularity.

 

Projects

In April 2012 a plan was announced to build an 800 km (500 mi) railway that would run north from Sept-Îles, Quebec; the railway would support mining and other resource extraction in the Labrador Trough.

In September 2012, CN announced the trial of locomotives fueled by natural gas as a potential alternative to conventional diesel fuel. Two EMD SD40 diesel-electric locomotives fueled with 90% natural gas and 10% diesel were tested in service between Edmonton and Fort McMurray, Alberta.

 

CN No. 1389, a 4-6-0 Ten-Wheeler arrives in Winnipeg, MB with train No. 48 from Russell, MB, June 11, 1959. Photo courtesy Walter R. Evans. Click to enlarge.

(Mary Jayne's Railroad Specialties, Inc., Public domain, W. Lenheim Collection) 

 

Passenger trains

Early years
When CNR was first created, it inherited a large number of routes from its constituent railways, but eventually pieced its passenger network into one coherent network. For example, on December 3, 1920, CNR inaugurated the Continental Limited, which operated over four of its predecessors, as well as the Temiskaming and Northern Ontario Railway. The 1920s saw growth in passenger travel, and CNR inaugurated several new routes and introduced new services, such as radio, on its trains. However, the growth in passenger travel ended with the Great Depression, which lasted between 1929 and 1939, but picked up somewhat in World War II. By the end of World War II, many of CNR's passenger cars were old and worn down. Accidents at Dugald, Manitoba, in 1947 and Canoe River, British Columbia, in 1950, wherein extra passenger trains composed of older, wooden equipment collided with transcontinental passenger trains composed of newer, all-steel equipment, demonstrated the dangers inherent in the older cars. In 1953, CNR ordered 359 lightweight passenger cars, allowing them to re-equip their major routes.

On April 24, 1955, the same day that the CPR introduced its transcontinental train The Canadian, CNR introduced its own new transcontinental passenger train, the Super Continental, which used new streamlined rolling stock. However, the Super Continental was never considered as glamorous as the Canadian. For example, it did not include dome cars. Dome cars would be added in the early 1960s with the purchase of six former Milwaukee Road "Super Domes". They were used on the Super Continental in the summer tourist season.

 

New services

Rail passenger traffic in Canada declined significantly between World War II and 1960 due to automobiles and airplanes. In the 1960s CN's privately owned rival CPR reduced its passenger services significantly. However, the government-owned CN continued much of its passenger services and marketed new schemes. One, introduced on 5 April 1962, was the "Red, White and Blue" fare structure, which offered deep discounts on off-peak days ("red") and were credited with increasing passenger numbers on some routes as much as 600%. Another exercise was the rebranding of the express trains in the Ontario–Quebec corridor with the Rapido label.

In 1968, CN introduced a new high-speed train, the United Aircraft Turbo, which was powered by gas turbines instead of diesel engines. It made the trip between Toronto and Montreal in four hours, but was not entirely successful because it was somewhat uneconomical and not always reliable. The trainsets were retired in 1982 and later scrapped at Metrecy, in Laval, Quebec.

On CN's narrow gauge lines in Newfoundland, CN also operated a main line passenger train that ran from St. John's to Port aux Basques called the Caribou. Nicknamed the Newfie Bullett, this train ran until June 1969. It was replaced by the CN Roadcruiser Buses. The CN Roadcruiser service was started in fall 1968 and was run in direct competition with the company's own passenger train. Travelers saw that the buses could travel between St. John's and Port aux Basques in 14 hours versus the train's 22 hours. After the demise of the Caribou, the only passenger train service run by CN on the island were the mixed (freight and passenger) trains that ran on the Bonavista, Carbonear and Argentia branch lines. The only passenger service surviving on the main line was between Bishop's Falls and Corner Brook.

In 1976, CN created an entity called Via-CN as a separate operating unit for its passenger services. Via evolved into a coordinated marketing effort with CP Rail for rail passenger services, and later into a separate Crown corporation responsible for inter-city passenger services in Canada. Via Rail took over CN's passenger services on April 1, 1978.

 

Decline

CN continued to fund its commuter rail services in Montreal until 1982, when the Montreal Urban Community Transit Commission (MUCTC) assumed financial responsibility for them; operation was contracted out to CN, which eventually spun off a separate subsidiary, Montrain, for this purpose. When the Montreal–Deux-Montagnes line was completely rebuilt in 1994–1995, the new rolling stock came under the ownership of the MUCTC, until a separate government agency, the Agence métropolitaine de transport (now AMT), was set up to consolidate all suburban transit administration around Montreal. Since then, suburban service has resumed to Saint-Hilaire, and a new line to Mascouche opened in December 2014.

In Newfoundland, Terra Transport would continue to operate the mixed trains on the branch lines until 1984. The main line run between Corner Brook and Bishop's Falls made its last run on September 30, 1988. Terra Transport/CN would run the Roadcruiser bus service until March 29, 1996, whereupon the bus service was sold off to DRL Coachlines of Triton, Newfoundland.

 

CN operates the Agawa Canyon Tour excursion.

(Photo by and ©2004 Dustin M. Ramsey (Kralizec!), CC BY-SA 2.5 <https://creativecommons.org/licenses/by-sa/2.5>, via Wikimedia Commons)

 

Expansion and service cuts

From the acquisition of the Algoma Central Railway in 2001 until service cancellation in July 2015, CN operated passenger service between Sault Ste. Marie and Hearst, Ontario. The passenger service operated three days per week and provided year-round access to remote tourist camps and resorts.

In January 2014, CN announced it was cutting the service, blaming the Government of Canada for cutting a subsidy necessary to keep the service running. It was argued as an essential service; however, the service had always been deemed financially uneconomic, and despite an extension of funding in April 2014, Algoma Central service was suspended as of July 2015.

CN operates the Agawa Canyon Tour excursion, an excursion that runs from Sault Ste. Marie, Ontario, north to the Agawa Canyon. The canyon tour train consists of up to 28 passenger cars and 2 dining cars, the majority of which were built for CN by Canadian Car and Foundry in 1953–54. These cars were transferred to the D&RGW Ski Train and bought back by CN in 2009.

After CN acquired BC Rail in 2004, it started operating a railbus service between Seton Portage and Lillooet, British Columbia called the Kaoham Shuttle.

CN crews used to operate commuter trains on behalf of GO Transit in the Toronto and the surrounding vicinity. This changed in 2008 when a deal was reached with Bombardier Transportation that switched all CN crews for Bombardier crews.

 

CN coal fired steam engine 6064 with engineer Carl Bruner and fireman colleague. Click to enlarge. (Asabara54, CC BY-SA 4.0 <https://creativecommons.org/licenses/by-sa/4.0>, via Wikimedia Commons)

 

4-6-2 locomotive No. 5140 built for the Canadian National Railways, 1921. Click to enlarge. (Internet Archive Book Images, No restrictions, via Wikimedia Commons)

Canadian National Railway (CNR) 2-10-2 locomotive 4100, ca. 1925. In 1916, CNR took delivery of ten Class T-1-a 2-10-2s from an order made by the short-lived Canadian Government Railways and built by ALCO. Ten more were delivered from the Montreal Locomotive Works in 1918, and another 25 slightly modified T-1-cs in 1920 that were 1,100 lbs (500 kg) lighter. Click to enlarge. (Archives of Ontario, OGL-ON <https://www.ontario.ca/page/open-government-licence-ontario>, via Wikimedia Commons)

 

Locomotives

Steam

The CNR acquired its first 4-8-4 Confederation locomotives in 1927. Over the next 20 years, it ordered over 200 for passenger and heavy freight service. The CNR also used several 4-8-2 Mountain locomotives, almost exclusively for passenger service. No. 6060, a streamlined 4-8-2, was the last CN steam locomotive, running in excursion service in the 1970s. CNR also used several 2-8-2 Mikado locomotives.

 

Canadian Locomotive Company builder's photo of the Canadian National Railways 4-8-4 No. 6100 in June 2, 1927. Click to enlarge.

(The University of Newcastle, Australia, CC0, via Wikimedia Commons)

 

 

First and last CN electric locomotive, 1918–1995. Click to enlarge.

(Emdx, Public domain, via Wikimedia Commons)

 

Electric

CN inherited from the Canadian Northern Railway several boxcab electrics used through the Mount Royal Tunnel. Those were built between 1914 and 1918 by General Electric in Schenectady, New York. To operate the new Montreal Central Station, which opened in 1943 and was to be kept free of locomotive smoke, they were supplemented by nearly identical locomotives from the National Harbors Board; those engines were built in 1924 by Beyer, Peacock & Company and English Electric. In 1950, three General Electric center-cab electric locomotives were added to the fleet. In 1952 CN added electric multiple units built by Canadian Car and Foundry.

Electrification was restricted to Montreal, and went from Central Station to Saint-Lambert (south), Turcot (west), Montréal-Nord (east) and Saint-Eustache-sur-le-lac, later renamed Deux-Montagnes, (north). But as steam locomotives gave way to diesels, engine changeovers were no longer necessary, and catenary was eventually pulled from the west, east and from the south. However, until the end of the original electrification, CN's electric locomotives pulled Via Rail's trains, including its diesel electric locomotives, to and from Central Station.

The last 2,400 V DC CN electric locomotive ran on June 6, 1995, the very same locomotive that pulled the inaugural train through the Mount Royal Tunnel back in 1918. Later in 1995 the AMT's Electric Multiple Units began operating under 25 kV AC 60 Hz electrification, and in 2014, dual-power locomotives entered service on the Mascouche line.

 

CN Turbo in Toronto. Click to enlarge.

(Robert Taylor from Stirling, Canada, CC BY 2.0 <https://creativecommons.org/licenses/by/2.0>, via Wikimedia Commons)

 

Turbo

In May 1966, CN ordered five seven-car UAC TurboTrain for the Montreal–Toronto service. It planned to operate them in tandem, connecting two trains together into a larger fourteen-car arrangement with a total capacity of 644 passengers. The Canadian trains were built by Montreal Locomotive Works, with their ST6 engines supplied by UAC's Canadian division (now Pratt & Whitney Canada) in Longueuil, Quebec.

CN and their ad agency wanted to promote the new service as an entirely new form of transit, so they dropped the "train" from the name. In CN's marketing literature the train was referred to simply as the "Turbo", although it retained the full TurboTrain name in CN's own documentation and communication with UAC. A goal of CN's marketing campaign was to get the train into service for Expo '67, and the Turbo was rushed through its trials. It was late for Expo, a disappointment to all involved, but the hectic pace did not let up and it was cleared for service after only one year of testing.

The Turbo's first demonstration run in December 1968 with Conductor James Abbey of Toronto in command, included a large press contingent. An hour into its debut run, the Turbo collided with a truck at a highway crossing near Kingston.

The Turbo's final run was on October 31, 1982.

 

A CN freight train led by a diesel locomotive at the crossovers at English which is east of Jasper, Alberta. Click to enlarge. (Marty Bernard from U.S.A., Public domain, via Wikimedia Commons)

 

CN 2269, a GE ES44DC, in Waukesha, Wisconsin. Click to enlarge. (Cr4410, CC BY-SA 4.0 <https://creativecommons.org/licenses/by-sa/4.0>, via Wikimedia Commons)

CN train at East Junction, Edmonton, 2006. Click to enlarge. (en:user:Myke2020, Public domain, via Wikimedia Commons)

Diesel

CNR's first foray into diesel motive power was with self-propelled railcars. In November 1925, Railcar No. 15820 completed a 72-hour journey from Montreal to Vancouver with the 185-horsepower (138 kW) diesel engine in nearly continuous operation for the entire 2,937 mi (4,726 km) trip. Railcars were used on marginal economic routes instead of the more-expensive-to-operate steam locomotives used for busier routes.

In 1929, the CNR made its first experiment with mainline diesel electric locomotives, acquiring two 1,330-horsepower (990 kW) engines from Westinghouse, numbered 9000 and 9001. It was the first North American railway to use diesels in mainline service. These early units proved the feasibility of the diesel concept, but were not always reliable. No. 9000 served until 1939, and No. 9001 until 1947. The difficulties of the Great Depression precluded much further progress towards diesel locomotives. The CNR began its conversion to diesel locomotives after World War II, and had fully dieselized by 1960. Most of the CNR's first-generation diesel locomotives were made by General Motors Diesel (GMD) and Montreal Locomotive Works.

For its narrow-gauge lines in Newfoundland CN acquired from GMD the 900 series, Models NF110 (road numbers 900–908) and NF210 (road numbers 909–946). For use on the branch lines, CN purchased the EMD G8 (road numbers 800–805).

For passenger service the CNR acquired GMD FP9 diesels, as well as CLC CPA16-5, ALCO MLW FPA-2 and FPA-4 diesels. These locomotives made up most of the CNR's passenger fleet, although CN also owned some 60 RailLiners (Budd Rail Diesel Cars), some dual-purpose diesel freight locomotives (freight locomotives equipped with passenger train apparatus, such as steam generators) as well as the locomotives for the Turbo trainsets. Via acquired most of CN's passenger fleet when it took over CN passenger service in 1978.
The CN fleet as of 2007 consists of 1,548 locomotives, most of which are products of either General Motors' Electro-Motive Division (EMD), or General Electric/GE Transportation Systems. Some locomotives more than 30 years old remain in service.

Much of the current roster is made up of EMD SD70I and EMD SD75I locomotives and GE C44-9W locomotives. Recently acquired are the new EMD SD70M-2 and GE ES44DC. Since 2015 the GE ES44AC & GE ET44AC are the latest units.

Beginning in the early summer months of 2010, CN purchased a small order of GE C40-8's and GE C40-8W's from Union Pacific and BNSF Railway, respectively. The intent was to use them as a cheaper power alternative. CN currently have 65 GE ES44ACs on its roster and all 65 were ordered and delivered from December 2012 – December 2013. They are CN's first AC-powered locomotives. In 2015, CN started ordering more GE units, the ET44AC.

On November 17, 2020, CN revealed five heritage units to mark the 25th anniversary of becoming a publicly traded company. They had originally been spotted a month earlier, but were not yet formally announced by the company. The locomotives were repainted into various schemes of railroads CN had previously acquired, and included four GE ET44ACs painted in IC, EJ&E, WC, and BC Rail paint, and an EMD SD70M-2 painted in GTW paint.

 

The CN Tower at Twilight and the Spadina Yard, looking east from Bathurst Street, Toronto in 1979. Photo by Roger Puta. Click to enlarge. (Marty Bernard from U.S.A., Public domain, via Wikimedia Commons)

 

CN 4803, a GP7 at the Toronto Historical Railroad Museum at the Roundhouse, Toronto. Click to enlarge. (Steve Knight from Halstead, United Kingdom, CC BY 2.0 <https://creativecommons.org/licenses/by/2.0>, via Wikimedia Commons)

Major facilities

CN owns a large number of large yards and repair shops across their system. They are used for many operations, ranging from intermodal terminals to classification yards. Examples include:

Hump yards
Hump yards work by using a small hill over which cars are pushed before being released down a slope and switched automatically into cuts of cars, ready to join into outbound trains. CN's active humps include:

Vaughan, Ontario: MacMillan Yard
Winnipeg, Manitoba: Symington Yard
Gary, Indiana: Kirk Yard
Memphis, Tennessee: Harrison Yard

Other major yards
Battle Creek, Michigan: Battle Creek Yard
Calgary, Alberta: Sarcee Yard
Champaign, Illinois: Champaign Yard
Dartmouth, Nova Scotia: Dartmouth Yard
Edmonton, Alberta: Walker Yard (formerly Calder Yard) – Also home to CN's North American Operations Facility and rail traffic control
Flat Rock, Michigan: Flat Rock Yard
Flint, Michigan: Flint Yard
Fond du Lac, Wisconsin: Shops Yard
Homewood, Illinois: Markham Yard
Lévis, Quebec: Joffre Yard
Moncton, New Brunswick: Gordon Yard
Montreal, Quebec: Taschereau Yard
New Orleans, Louisiana: Mays Yard
Port Huron, Michigan: Port Huron Yard
Halifax, Nova Scotia: Rockingham Yard
Sarnia, Ontario: Sarnia Yard
Saskatoon, Saskatchewan: Chappell Yard
Surrey, British Columbia: Thornton Yard
Toledo, Ohio: Lang Yard
Windsor, Ontario: Van de Water Yard
Winnipeg, Manitoba: Transcona Shops, Symington Yard

Intermodal terminals
Calgary, Alberta
Chicago, Illinois
Chippewa Falls, Wisconsin
Detroit, Michigan (Ferndale)
Duluth, Minnesota
Edmonton, Alberta
Halifax, Nova Scotia
Gulfport, Mississippi
Jackson, Mississippi: terminal owned by the Kansas City Southern Railway, now known as Canadian Pacific Kansas City (CPKC).
Memphis, Tennessee
Mobile, Alabama
Moncton, New Brunswick
Montreal, Quebec
New Orleans, Louisiana
Prince George, British Columbia
Prince Rupert, British Columbia
Saskatoon, Saskatchewan
Brampton, Ontario
Surrey, British Columbia
Winnipeg, Manitoba

 

 

A Canadian National Railway Gallery. Click to enlarge.

 

Canadian National 4-8-4 No. 6218 at Belleville, Ontario, July 1971. Photo by Carl H. Sturner. (Audio-Visual Designs, Earlton, NY, Public domain, W. Lenheim Collection)

CN 6076, a 4-8-2 Mountain headed eastbound, rounds the curve at Bayview-Hamilton on the way to Toronto, June 14, 1958. Photo from the Collection of the Williamson Library. (Audio-Visual Designs, Earlton, NY, Public domain, W. Lenheim Collection)

 

No. 86, a CN 2-6-0 Mogul, arrives at Chesley, Ontario with a southbound freight, July 1957. Photo by Don Wood. (Audio-Visual Designs, Earlton, NY, Public domain, W. Lenheim Collection)

Canadian National line-up of power at Montreal. Front to back; UAC Turbo, a modern diesel, No. 6218, a 4-8-4 steam locomotive, and the Flying Scotsman, a Pacific-type from the UK. Photo courtesy Canadian National. (Audio-Visual Designs, Earlton, NY, Public domain, W. Lenheim Collection)

 

MLW FPA and FPBs, led by CN No. 6760 passing through Dorval, Quebec in September 1969. Photo by Ken Crist. (Audio-Visual Designs, Earlton, NY, Public domain, W. Lenheim Collection)

CN 9104, built in 1954 and rated at 1500 horsepower, leads a freight train on June 27, 1969. Photo by Mark Horne. (Audio-Visual Designs, Earlton, NY, Public domain, W. Lenheim Collection)

 

A vertical postcard showing the CN's Super Continental with an ex-Milwaukee Super Dome and a Skytop Lounge-Observation Cars. Click on image to see all. (Canadian National Railway, Public domain, W. Lenheim Collection)

CNR Central Station, Montreal, Quebec. (PECO, Ottawa, CA,  Public domain, W. Lenheim Collection)

The Canadian National Railway's station at Winnipeg, Manitoba. (Goldin and Company, Winnipeg, Manitoba, Public domain, W. Lenheim Collection)

The Princes' Gates, Canadian National Exhibition, Toronto, ON. (Royal Specialty Sales, Toronto, ON, Public domain, W. Lenheim Collection)

Non-rail subsidiaries

For CN Telegraph, CNR Radio, CN Hotels, and Canadian National Steamship Company, follow the Wikipedia link below.

Click here: CN Non-Rail

 

 

A Canadian National Railway Ad and Poster Collection. Click to enlarge.

This small sampling represents only a fraction of CN's enormous print ad and poster output.

 

See Canada – Travel by Canadian National Railways – Jasper Park Lodge, Rocky Mountains, 1924. (BiblioArchives / LibraryArchives, CC BY 2.0 <https://creativecommons.org/licenses/by/2.0>, via Wikimedia Commons)

By the Sea – Nova Scotia, New Brunswick, Prince Edward Island – Canadian National Railways, 1925. (BiblioArchives / LibraryArchives, CC BY 2.0 <https://creativecommons.org/licenses/by/2.0>, via Wikimedia Commons)

Hunting in Canada’s unspoiled forests – Canadian National, 1929. (BiblioArchives / LibraryArchives, CC BY 2.0 <https://creativecommons.org/licenses/by/2.0>, via Wikimedia Commons)

Jasper Park Lodge – The Hub of Canada’s Greatest Mountain Playground — Canadian National, 1929. (BiblioArchives / LibraryArchives, CC BY 2.0 <https://creativecommons.org/licenses/by/2.0>, via Wikimedia Commons)

CNR poster: “It’s Mine!” – Canada – The Right Land for the Right Man: Canadian National Railways – The Right Way!" Ca. 1925. Click to enlarge. (BiblioArchives / LibraryArchives, CC BY 2.0 <https://creativecommons.org/licenses/by/2.0>, via Wikimedia Commons)

 

CNR Poster: "The Canadian National Railways Through Canada." 1930. Click to enlarge. (BiblioArchives / LibraryArchives, CC BY 2.0 <https://creativecommons.org/licenses/by/2.0>, via Wikimedia Commons)

Overview

Canadian National Railway Company / Compagnie des Chemins de fer nationaux du Canada
Formerly: Canadian National Railways (1919–1978)
Type: Public
Traded as: TSX: CNR, NYSE: CNI, S&P/TSX 60 component (CNR)
Industry: Transport
Predecessor: Canadian Northern Railway
Founded: 6 June 1919
Headquarters: Montreal, Canada
Key people
Chairman: Robert Pace
President and CEO: Tracy Robinson
Founder and CFO: Margaret A. McKenzie
Revenue: CA$17.11 billion (2022)
Operating income: CA$5.593 billion (2019)
Net income: CA$5.12 billion (2022)
Owners: Bill & Melinda Gates Foundation (8.11%), MFS Investment Management (4.8%), Wellington Management Company (3.17%),
The Vanguard Group (2.77%), BlackRock (2.4%)
Number of employees: 22,600 (2022)
Website: cn.ca

 

See Also:

Railroads A-Z