Canadian National
Newfoundland became the 10th province of Canada on March 31, 1949, and the Newfoundland Railway's assets were transferred to the control of the federal Crown corporation Canadian National Railway (CNR, CN post-1960). CN became a major presence in Newfoundland's early years as a province, controlling the railway, dry dock services, many ferries and coastal boats, and the telegraph system.
The Newfoundland Railway's premiere cross-island passenger train, The Overland Limited was renamed the Caribou by CN, although it was known colloquially as The Newfie Bullet. CN maintained the Caribou until 1969.
CN made major capital improvements, upgrading the main line, bridges, and rolling stock, and replacing steam locomotives with diesel units. Additional improvements were made to the ferry service, with new vessels and an expanded terminal at Port aux Basques. An additional indirect service improvement to the Newfoundland railway operations was made in 1955, with the opening of the Canso Causeway, linking Cape Breton Island with mainland North America and removing the need to ferry railcars destined for Newfoundland across the Strait of Canso.
CN's Newfoundland operations continued to see significant traffic increases with its improved ferry and rail connections, but faced increased truck and bus competition on completion of the Trans-Canada Highway across the island in 1965. New railcar-capable ferries were introduced; mainland standard-gauge railcars were ferried to Newfoundland, where their standard-gauge bogies were replaced with narrow-gauge bogies in Port aux Basques. This innovation was unsuccessful. The first casualty was the passenger rail service, which was abandoned in 1969 in favour of buses. CN began to essentially stop marketing its own Newfoundland rail operations through the 1970s and began to rely on trucks for hauling cargo.
In 1979, CN reorganized its narrow-gauge system into Terra Transport, as a means to separate the subsidy-dependent Newfoundland rail operations from its mainland North America core freight rail system. Rail cargo traffic continued to decline, and all branch lines on the island were closed in 1984. In 1987, Canada deregulated its railway industry, allowing abandonments to proceed with less red tape. The former CN subsidiary CN Marine was reorganized into Marine Atlantic in 1986 and one of the two railcar ferries was sold off, leaving the narrow-gauge system with limited interchange ability at Port aux Basques in its final two years. In December 1987 the provincial and federal governments signed a deal worth $800 million for highway improvements, removing the provincial government's opposition to the pending abandonment of the railway.
The railway was officially abandoned on October 1, 1988. Following abandonment, work trains continued to operate, assisting salvage crews to remove the rails from remote locations, particularly in the Gaff Topsails between the Exploits River and Deer Lake. The last train, prior to work trains removing rails, arrived from Port Aux Basques and departed Corner Brook eastbound on September 30 and arrived at Bishops Falls on the morning of October 1.
CN continued to operate its Roadcruiser Bus service and a CN Intermodal trucking operation in Newfoundland until 1996. With CN's privatization in late 1995, the company divested itself of all money-losing and most non-railroad interests, including CN Roadcruiser. Cross-island bus service was taken over by DRL Coachlines of Triton, Newfoundland on March 30, 1996. The CN Newfoundland trucking operation continued until fall 1996, and was then contracted to Clarke Transport.
