Canada’s railways helped build the nation. Long before the Trans-Canada Highway connected the country, steel rails carried settlers, soldiers, grain, timber, minerals, and manufactured goods across thousands of kilometres of wilderness.
Among those railways, Canadian National Railway (CN Rail) has become one of the world’s most successful transportation companies. While many Canadians know CN for its iconic black locomotives and coast-to-coast operations, fewer realize that the company now owns thousands of kilometres of railway throughout the United States.
Today, CN is not just Canada’s largest railway—it’s one of North America’s most integrated freight transportation systems.
A Railway Born from Financial Crisis
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Unlike Canadian Pacific Railway, which was created as a private company, CN was born out of necessity.
During the late 1800s and early 1900s, several Canadian railways struggled financially, including:
- Canadian Northern Railway
- Grand Trunk Railway
- Grand Trunk Pacific Railway
- National Transcontinental Railway
Building railways across Canada’s rugged landscape proved enormously expensive. By the First World War, several companies faced bankruptcy.
Rather than allowing these essential transportation links to collapse, the Government of Canada stepped in.
The Creation of CN
In 1919, the federal government combined several struggling railways into one Crown corporation:
Canadian National Railways (CNR).
Its purpose was to:
- Keep freight moving
- Preserve passenger service
- Support western settlement
- Connect eastern and western Canada
- Protect Canada’s economy
It quickly became one of the largest railway systems in the world.
Building a Coast-to-Coast Network
Within only a few decades CN operated railways stretching from:
- Halifax, Nova Scotia
- Montreal
- Toronto
- Winnipeg
- Saskatoon
- Edmonton
- Prince Rupert
- Vancouver
The railway became essential for moving:
- Prairie grain
- Lumber
- Coal
- Iron ore
- Manufactured goods
- Passengers
Thousands of communities depended almost entirely on CN for transportation.
The Steam Era
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During the first half of the twentieth century, steam locomotives ruled Canadian railways.
Large steam engines hauled:
- Grain trains
- Passenger trains
- Military equipment during WWII
- Timber
- Coal
- Livestock
CN became famous for maintaining enormous locomotive shops across the country.
Steam remained dominant until the 1950s.
The Diesel Revolution
Beginning in the 1950s, CN rapidly replaced steam with diesel-electric locomotives.
Diesel offered major advantages:
- Lower fuel costs
- Less maintenance
- More reliability
- Greater pulling power
- Faster turnaround times
Within only a few years, steam disappeared from regular service.
Privatization
For much of its history, CN remained a government-owned Crown corporation.
However, during the 1990s the federal government decided to privatize the railway.
In 1995, Canadian National Railway became a publicly traded company.
The privatization became one of Canada’s largest public share offerings.
Today CN trades on both:
- Toronto Stock Exchange (TSX: CNR)
- New York Stock Exchange (NYSE: CNI)
Despite being publicly owned by shareholders around the world, CN remains headquartered in Montreal, Quebec.
Expansion into the United States
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Many Canadians are surprised to learn that CN owns a significant portion of the American rail network.
Rather than simply operating trains across the border, CN actually purchased major U.S. railroads.
Illinois Central (1998)
CN’s largest expansion came with its purchase of the Illinois Central Railroad.
This transformed CN into a north-south railway.
Instead of only connecting Canada east to west, CN now linked:
- Western Canada
- Central Canada
- Chicago
- Memphis
- New Orleans
- The Gulf of Mexico
This gave Canadian exporters direct access to American ports.
Wisconsin Central (2001)
CN next acquired Wisconsin Central.
This added:
- Wisconsin
- Michigan
- Minnesota
- Illinois
It strengthened CN’s connections into the American Midwest.
Great Lakes Transportation
CN later purchased Great Lakes Transportation, which included:
- Duluth, Missabe and Iron Range Railway
- Bessemer and Lake Erie Railroad
These railways move enormous quantities of iron ore used in North American steelmaking.
How Much of the U.S. Rail System Does Canada Own?
This question often surprises people.
The United States has approximately:
- About 140,000 miles (225,000 km) of active railway track, including freight, passenger, regional, and short-line railroads.
CN owns approximately:
- 7,500 route miles (about 12,000 km) of railway in the United States.
That means CN directly owns roughly:
5% of America’s active rail network by route miles.
While that percentage may sound modest, the lines CN owns are among the most economically important freight corridors in North America. They connect the Canadian Prairies and industrial heartland to major U.S. cities and Gulf Coast ports.
Where CN Operates in America
CN operates in numerous U.S. states, including:
- Illinois
- Wisconsin
- Michigan
- Minnesota
- Iowa
- Mississippi
- Tennessee
- Louisiana
- Indiana
- Arkansas
- Alabama (through connections and trackage rights)
Its American network reaches major transportation hubs such as:
- Chicago
- Detroit
- Memphis
- New Orleans
- Duluth
These hubs connect with other Class I railways, ports, and intermodal terminals.
Why the U.S. Network Matters to Canada
CN’s American lines provide Canadian businesses with efficient access to some of the largest markets and ports in North America. Key benefits include:
- Direct access to Gulf Coast export terminals.
- Faster grain shipments from the Prairies.
- Efficient movement of potash, forest products, and manufactured goods.
- Improved supply chains for automotive production between Ontario and the U.S. Midwest.
- Enhanced intermodal connections that reduce handling and transit times.
Because a single railway manages much of the journey, customers can benefit from simplified logistics and fewer transfers.
Major Commodities Carried by CN
CN moves hundreds of millions of tonnes of freight each year.
Its largest traffic categories include:
| Commodity | Examples |
|---|---|
| Grain | Wheat, canola, barley |
| Forest Products | Lumber, pulp, paper |
| Petroleum | Crude oil, refined fuels |
| Coal | Thermal and metallurgical coal |
| Potash | Saskatchewan exports |
| Metals | Iron ore, steel |
| Automotive | Vehicles and auto parts |
| Intermodal | Shipping containers |
| Chemicals | Fertilizers and industrial chemicals |
| Consumer Goods | Retail merchandise |
CN by the Numbers
| Statistic | Approximate Value |
|---|---|
| Founded | 1919 |
| Headquarters | Montreal, Quebec |
| Canadian Track | ~20,000 km |
| U.S. Track | ~12,000 km |
| Total Network | ~32,000 km |
| Countries Served | Canada & United States |
| Employees | ~25,000 |
| Locomotives | More than 2,000 |
| Freight Cars | More than 40,000 |
CN and Canadian Exports
Few companies have a greater impact on Canada’s economy than CN.
Every day, it transports:
- Prairie grain to export terminals.
- Lumber from British Columbia.
- Potash from Saskatchewan.
- Containers through the Port of Prince Rupert.
- Automotive parts between Ontario and the U.S.
- Consumer goods arriving at Canadian ports.
Its network helps Canadian products reach customers throughout North America and overseas.
Environmental Benefits of Rail
Rail transportation is significantly more fuel-efficient than long-haul trucking for moving bulk freight.
Benefits include:
- Lower greenhouse gas emissions per tonne-kilometre.
- Reduced highway congestion.
- Improved fuel efficiency.
- Ability to move large volumes in a single train.
- Fewer heavy trucks on major highways.
As Canada works toward reducing transportation emissions, rail continues to play a central role in freight logistics.
Did You Know?
- CN owns the longest rail network in Canada.
- It is the only railway connecting Canada’s Atlantic, Pacific, and Gulf Coast gateways through a single integrated network.
- CN’s acquisition of Illinois Central created one of the first true north-south continental freight corridors.
- Millions of tonnes of Canadian grain reach global markets using CN’s rail network every year.
- CN trains can exceed 3 kilometres in length, making them among the longest freight trains in North America.
Conclusion
From its beginnings as a government rescue of several bankrupt railways in 1919, Canadian National Railway has grown into one of the world’s premier freight transportation companies. Its network stretches from the Atlantic Ocean to the Pacific Coast and south to the Gulf of Mexico, making it a vital link in North American commerce.
Although CN owns only about 5% of the total U.S. rail network by route mileage, the corridors it controls are among the most strategic on the continent. They connect Canadian producers with American manufacturers, consumers, and export ports, reinforcing Canada’s role as a key trading nation.
More than a century after its founding, CN continues to demonstrate how a Canadian-built railway has become an essential part of the North American economy.
Sources
- Canadian National Railway. About CN, network maps, history, and corporate information.
- Government of Canada – Privy Council Office. History of Canadian National Railways and Privatization.
- Transport Canada. Rail Transportation in Canada.
- Association of American Railroads (AAR). Freight Rail Network Facts.
- U.S. Federal Railroad Administration. Rail Network Statistics.
- Statistics Canada. Transportation and Freight Rail Data.
- CN Annual Report (latest available edition).
- Canadian Encyclopedia. Canadian National Railway.
- Library and Archives Canada. History of Canada’s National Railways.
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