B.C. government intends to protect CN railway from Squamish through Whistler | Daily Hive

B.C. government intends to protect CN railway from Squamish through Whistler for long-term transportation needs

The CN Rail (BC Rail) railway running next to the Sea to Sky Highway in Whistler. (Google Maps)

One year after CN Rail first announced its plan to wind down its operations of the Sea to Sky railway corridor between Squamish and 100 Mile House, the Government of British Columbia formally outlined its position today of retaining public ownership of the corridor and protecting its long-term potential for goods and people movement and economic growth.

CN Rail’s “discontinuance” of the railway extends north of Squamish through Whistler, as well as a branch emanating from Lillooet. However, the railway company will continue to lease and operate the Sea to Sky railway segment between North Vancouver’s Lonsdale waterfront and Squamish.

Legally, after the conclusion of the one-year advance notice period this past weekend, interested parties can now propose to take over the long segment of the railway corridor north of Squamish beginning on July 11, 2026. CN Rail has not actually used this segment of the railway corridor since 2020.

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In a statement today, B.C. Minister of Transportation and Transit Mike Farnworth says the provincial government has been engaging with CN Rail, which has yet to advertise the railway line for interested operators to take over the operating rights — a step they can now legally take under the federal discontinuance process, if they ultimately decide to.

Although CN Rail currently has the operating rights, the railway corridor remains owned under the provincial government through the legal entity of Crown corporation BC Railway Company.

In 2003, the BC Liberals-led provincial government controversially sold BC Rail’s equipment to CN Rail for $550 million and privately leased the railway’s operations to CN Rail under a long-term agreement valued at $1 billion.

The deal included an initial 60-year lease with an optional 30-year extension, allowing for a total term of up to 90 years. At the time of the renewal, the provincial government would have the option to buy back the assets from CN Rail. Prior to this agreement, the provincial Crown corporation was a highly profitable freight business and stood as the third-largest railway in Canada, after Canadian Pacific Kansas City (CPKC) and CN Rail.

“Our government is committed to protecting the long-term public interest. The lands and rail infrastructure are owned by the BC Railway Company, a Crown corporation, and we intend to keep this rail corridor in public hands for the benefit of British Columbians,” said Farnworth.

“The Ministry of Transportation and Transit and the BC Railway Company have been engaging with industry partners to better understand future opportunities for the corridor. This rail line is more than infrastructure; it is an asset that could support future goods movement, strengthen supply chains, connect communities and create economic opportunities throughout the region provided commercially viable operations can be established.”

Map of CN Rail routes in southern B.C., including the BC Rail segment from North Vancouver to the Sea to Sky corridor. (CN Rail)

The CN Rail (BC Rail) railway running next to the Sea to Sky Highway in Whistler. (Google Maps)

Since CN Rail’s announcement last summer, Patrick Weiler, the MP for West Vancouver-Sunshine Coast-Sea to Sky Country under the federal Liberal Party, and Jeremy Valeriote, MLA for West Vancouver-Sea to Sky with the B.C. Green Party, have been increasing their advocacy for the provincial government to use this opportunity to preserve the railway corridor for the possibility of reviving passenger rail services.

At the time, they said that a new operating entity should be created to acquire the approximately 40 years remaining on CN Rail’s lease.

If there are no interested parties to run the railway, the segment will be offered for net salvage value to different levels of government under the Canada Transportation Act.

The question over the railway corridor’s future also comes at a time when the Sea to Sky Highway is increasingly strained by vehicle traffic due to residential, tourism, and economic growth along the corridor.

Recent accidents that have shut down the highway for prolonged periods and stranded travellers for hours have also renewed calls for improved transportation capacity, reliability, and resiliency on the corridor.

“Our focus remains on following the federal process, engaging with CN and partners and ensuring the interests of British Columbians are protected every step of the way. We will continue to work with communities, industry partners and First Nations and provide updates as more information becomes available,” continued the Minister.

rocky mountaineer rainforest to gold rush route sea to sky

Rocky Mountaineer’s “Rainforest to Gold Rush” route running through the Sea to Sky corridor. (Rocky Mountaineer)

Rocky Mountaineer

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