BC Rail

The Pacific Great Eastern Railway (PGE) was incorporated on February 27, 1912, to build a line from Vancouver north to a connection with the Grand Trunk Pacific Railway (GTP) at Prince George. Although independent from the GTP, the PGE had agreed that the GTP, whose western terminus was at the remote northern port of Prince Rupert, could use their line to gain access to Vancouver. The railway was given its name due to a loose association with England's Great Eastern Railway. Its financial backers were Timothy Foley, Patrick Welch, and John Stewart, whose construction firm of Foley, Welch and Stewart was among the leading railway contractors in North America. Upon incorporation, the PGE took over the Howe Sound and Northern Railway, which at that point had built 14 kilometres (9 mi) of track north of Squamish.[4] The British Columbia government gave the railway a guarantee of principal and 4% interest (later increased to 4.5% to make the bonds saleable) on the construction bonds of the railway.[5]

By 1915, the line was opened from Squamish 283 kilometres (176 mi) north to Chasm. The railway was starting to run out of money, however. In 1915 it failed to make an interest payment on its bonds, obliging the provincial government to make good on its bond guarantee. In the 1916 provincial election campaign, the Liberal Party alleged that some of the money advanced to the railway for bond guarantee payments had instead gone into Conservative Party campaign funds. In the election, the Conservatives, who had won every seat in the legislature in 1912 election, lost to the Liberals. The Liberals then took Foley, Welch, and Stewart to court to recover $5 million of allegedly unaccounted funds. In early 1918, the railway's backers agreed to pay the government $1.1 million and turn the railway over to the government.[6]

When the government took over the railway, two separate sections of trackage had been completed: A small 32-kilometre (20 mi) section between North Vancouver and Horseshoe Bay, and one between Squamish and Clinton. By 1921, the provincial government had extended the railway to a point 24 kilometres (15 mi) north of Quesnel, still 130 kilometres (80 mi) south of a connection to Prince George, but it was not extended further. The track north of Quesnel was later removed. Construction of the line between Horseshoe Bay and Squamish was given a low priority because there was already a barge in operation between Squamish and Vancouver, and the railway wanted to discontinue operations on the North Vancouver-Horseshoe Bay line. However, the railway had an agreement with the municipality of West Vancouver to provide passenger service that it was unable to get out of until 1928, when they paid the city $140,000 in support of its road-building programme. The last trains on the line ran on November 29, 1928, and the line fell into disuse, but was never formally abandoned.[7]

For the next 20 years the railway would run from "nowhere to nowhere". It did not connect with any other railway, and there were no large urban centres on its route. It existed mainly to connect logging and mining operations in the British Columbia Interior with the coastal town of Squamish, where resources could then be transported by sea. The government still intended for the railway to reach Prince George, but the resources to do so were not available, especially during the Great Depression and World War II. The unfortunate state of the railway caused it to be given nicknames such as "Province's Great Expense"," "Prince George Eventually", "Past God's Endurance", "Please Go Easy", and "Puff, Grunt and Expire".

Pacific Great Eastern Railway logo

Starting in 1949, the Pacific Great Eastern began to expand. Track was laid north of Quesnel to a junction with the Canadian National Railways at Prince George. That line opened on November 1, 1952. Between 1953 and 1956 the PGE constructed a line between Squamish and North Vancouver. The PGE used their former right-of-way between North Vancouver and Horseshoe Bay, to the dismay of some residents of West Vancouver who, mistakenly believing the line was abandoned, had encroached on it. The line opened on August 27, 1956. By 1958 the PGE had reached north from Prince George to Fort St. John and to Dawson Creek where it met the Northern Alberta Railways.[8]

A 1964 PGE passenger timetable cover; Peace River at Taylor.

In 1958, Premier of British Columbia W.A.C. Bennett boasted that he would extend the railway to the Yukon and Alaska, and further extension of the railway was undertaken in the 1960s. A 37-kilometre (23 mi) spur was constructed to Mackenzie in 1966.[9] A third line was extended west from the mainline (somewhat north of Prince George) to Fort St. James. It was completed on August 1, 1968. The largest construction undertaken in the 1960s was to extend the mainline from Fort St. John 400 kilometres (250 mi) north to Fort Nelson, less than 160 kilometres (100 mi) away from the Yukon. The Fort Nelson Subdivision was opened by Premier Bennett on September 10, 1971. Unfortunately, the opening of the line was overshadowed by the inaugural train derailing south of Williams Lake, south of Prince George.

British Columbia Railway logo (1972–1984)

The railway underwent two changes of name during this time period. In 1972, the railway's name was changed to the British Columbia Railway (BCR). In 1984, the BCR was restructured. Under the new organization, BC Rail Ltd. was formed, owned jointly by the British Columbia Railway Company (BCRC) and by a BCRC subsidiary, BCR Properties Ltd. The rail operations became known as BC Rail.

In 1973, the British Columbia government acquired and restored an ex-Canadian Pacific Railway 4-6-4 steam locomotive of the type known as "Royal Hudsons", a name that King George VI permitted the class to be called after the Canadian Pacific Railway used one on the royal train in 1939. The locomotive that the government acquired, numbered 2860, was built in 1940 and was the first one built as a Royal Hudson. The government then leased it, along with ex-Canadian Pacific 2-8-0 #3716 to the British Columbia Railway, which started excursion service with the locomotive between North Vancouver and Squamish on June 20, 1974. The train ran between June and September on Wednesdays through Sundays from 1974 to 2001. During this time, the Royal Hudson Steam Train was the only regularly scheduled, mainline steam operation on a Class 1 railroad in North America.

Map of the British Columbia Railway

In the 1960s, a new line had been projected to run northwest from Fort St. James to Dease Lake, 663 kilometres (412 mi) away. On October 15, 1973, the first 201 kilometres (125 mi) of the extension to Lovell (lat 55°33', long 126°02') were opened. The cost of the line was significantly greater than what was estimated, however. Contractors working on the remainder of the line alleged that the railway had misled them regarding the amount of work required so that it could obtain low bids, and took the railway to court.

The Dease Lake line was starting to appear increasingly uneconomical. There was a world decline in the demand for asbestos and copper, two main commodities that would be hauled over the line. As well, the Cassiar Highway that already served Dease Lake had recently been upgraded. Combined with the increasing construction costs, the Dease Lake line could no longer be justified. Construction stopped on April 5, 1977. Track had been laid to Jackson Creek (lat 56°50, long 128°12'), 423 kilometres (263 mi) past Fort St. James, and clearing and grading were in progress on the rest of the extension. It had cost $168 million to that point, well over twice the initial estimate. The trackbed can be seen on Google Earth all the way to Dease Lake, via the small towns of Leo Creek (lat 55°03', long 125°33') and Takla Landing (lat 55°29', long 125°58').

The management and operation of the railway had been called into question, and on February 7, 1977, the provincial government appointed a Royal Commission, the McKenzie Royal Commission, to investigate the railway. Its recommendations were released on August 25, 1978.[10] It recommended that construction not continue on the 240 kilometres (149 mi) of roadbed between Dease Lake and the current end of track, and that trains be terminated at Driftwood (approx. lat 55°42, long 126°15'), 32 kilometres (20 mi) past Lovell. The rest of the track would be left in place but not used. In 1983, after logging operations ceased at Driftwood and traffic declined sharply, the Dease Lake line was closed. However, it was reopened in 1991 and, as of 2005, extends to a point called Minaret Creek, British Columbia (lat 56°20', long 127°17'), still over 282 kilometres (175 mi) south of Dease Lake. Many of the commission's other recommendations, including the abandonment of the Fort Nelson line, and discontinuation of uneconomic operations such as passenger services, were not followed.[11]

Two GMD GF6C electric locomotives lead a coal train on the Tumbler Ridge Subdivision in 1987.

In the early 1980s the railway built a new line and acquired another. The Tumbler Ridge Subdivision, a 132-kilometre (82 mi) electrified branch line, opened in 1983 to the Quintette and Bullmoose mines, two coal mines northeast of Prince George that produced coal for Japan. It has the lowest crossing of the Rocky Mountains by a railway, at 1,163 metres (3,815 ft). There are two large tunnels under the mountains: The Table Tunnel, 9.0 kilometres (5.6 mi) long, and the Wolverine Tunnel, 6.0 kilometres (3.7 mi) long. Electrified owing to the long tunnels and close proximity to the W. A. C. Bennett Dam and transmission lines, it was one of the few electrified freight lines in North America. Although initially profitable, the traffic on the line was never as high as initially predicted, and by the 1990s was under one train per day. The railway had incurred much debt building the branch line, and the expensive, unprofitable operations on the branch line could not help to repay that debt. In 1984 BC Rail acquired the British Columbia Harbours Board Railway, a 37-kilometre (23 mi) line that connects three class I railways with Roberts Bank, an ocean terminal that handles coal shipments. Since the line had been constructed in 1969, it had been leased to the CPR, Burlington Northern Railroad, and Canadian National Railway in succession.

Two SD40-2s and a GE C44-9WL at Pemberton in 1995.

In the early 1990s, the provincial government reduced subsidies to BC Rail. As a result, BC Rail, burdened with several money-losing services that it was required to operate, saw its debtload grow more than sixfold between 1991 and 2001.

In the 1990s, BC Rail branched out into shipping operations, acquiring terminal operator Vancouver Wharves in 1993 and Canadian Stevedoring and its subsidiary, Casco Terminals, in 1998. In 1999 these operations became the three operating divisions of a new entity, BCR Marine. BCR Group became the parent company of both BCR Marine and BC Rail. In early 2003, attempting to reduce the railway's large debt, BCR Group sold its BCR Marine assets except for Vancouver Wharves (which was also not included in the subsequent sale of BC Rail to Canadian National, and remains a provincial Crown corporation).[12]

On August 19, 2000, the Quintette mine closed, and the portion of the Tumbler Ridge Subdivision between Teck and Quintette, British Columbia, was abandoned. The last electric locomotives ran along the line on September 29, 2000, after which the line was worked by diesel locomotives. The Bullmoose mine closed on April 10, 2003, after which the remaining 112.0 kilometres (69.6 mi) of the Tumbler Ridge Subdivision between Teck and Wakely was abandoned, although the track is still in place. The electric locomotives were shipped south to Tacoma, Washington, where they are being dismantled by CEECO Rail Services. One of the locomotives (6001) was purchased by the Paul D. Roy family and they donated it to the Prince George Railway and Forestry Museum in Prince George where it is being preserved.

Several other services were also discontinued around this time. The Royal Hudson steam train excursion was discontinued at the end of the 2001 excursion season. The 2860 was out of service in 2000, needing extensive repairs. The backup steam locomotive, a 2-8-0 locomotive built for the Canadian Pacific Railway in 1912, broke down in May 2001, and for the rest of the season BC Rail used a former Canadian Pacific Railway FP7A diesel locomotive #4069 that it had leased from the West Coast Railway Association in Squamish.

Passenger train service, which consisted of the Budd-RDC operated Cariboo Prospector and Whistler Northwind (Pacific starlight dinner train) trains, ended October 31, 2002. The service was unprofitable, allegedly owing to BC Rail's heavy dependence on their fleet of aging Budd Rail Diesel Cars (RDC), which were becoming increasingly expensive to keep in service. The RDCs have since been sold to various museums and operators around North America, (such as the Wilton Scenic Railroad in New Hampshire and the West Coast Railway Association in Squamish)

Service between Seton Portage and Lillooet was replaced by a railbus. As well, around this time BC Rail ended its intermodal service.[13]

On May 13, 2003, BC Premier Gordon Campbell announced that the government would sell the operations of the railway (including all assets other than the rail right-of-way).[14] During the previous election, he had promised not to sell the railway, and said that he was keeping this promise by retaining ownership of the right-of-way and only leasing the land to the operator. On November 25, Canadian National's (CN) bid of $1 billion was accepted over those of several other companies, including the Canadian Pacific Railway, the BNSF Railway, and OmniTRAX.[15] The transaction was closed on July 15, 2004.[12] The lease of the rail right-of-way is for 60 years with a 30-year option to renew. At the renewal date, the BC government will have the option of buying back all the assets from CN.[16] Conversely, as of July 15, 2009, the fifth anniversary of the contract, CN has the right to decommission any part of the line, but upon doing so the land reverts to the Crown, though the Crown can sell it back to CN for one dollar.[17]

The one portion of the BC Rail line not included in the sale was the Port Subdivision from Roberts Bank connecting to the main CN, CPR and BNSF lines. Originally the operation of this line was to be sold separately. However, irregularities came up during the sale process including a government employee, David Basi, being accused of accepting a bribe from a lobbyist, Erik Bornmann, working on behalf of OmniTRAX, who turned Crown witness in exchange for conditional amnesty, which enabled the RCMP to charge Basi. Another irregularity was that CPR withdrew their bid because CN had access to secret government information, including confidential information on their own corporate operations. The sale of the spur line was cancelled, and the remnants of BC Rail Company continues to operate and maintain this line.

The lease contract did not include the sale of BC Rail's assets, including the land and rights-of-way. As well, passenger rights were not included. The contract requires CN to yield trackage to any private operator who requests it for the purposes of carrying passengers on commercially reasonable terms.[1]

As per the terms of the lease, CN holds the sole right to renew the contract for up to 999 years through a series of options. The lease also allows for BC Rail to give CN title to any and all of the railway for the nominal price of $1.[18] The lease was the subject of the biggest political scandal in BC history resulting in the BC Legislature Raids. The BC Liberal government was accused of lying about the state of BC Rail's debts and viability in order to justify the deal with CN, claiming the railway was in disarray.[19] Canadian Pacific, a rival bidder, privately stated in since-released communications that the bid was "rigged".[20]

In 2010, two BC Liberal Party ministerial aides pleaded guilty to charges of breach of trust and receiving a benefit for leaking information about the BC Rail leasing process, with both being sentenced to two years less a day of house arrest and 150 hours of community service.[21]

On August 5, 2005, a 144-car CN train heading inland from Brackendale, derailed spilling eight empty lumber flat cars and one tank car of sodium hydroxide. The tank car spilled sodium hydroxide into the Cheakamus River, killing most of its fish.[22]

Moran is a railway point on the BC Rail line north of Pavilion, British Columbia.[23] The location, which is high on the side of the stretch of the Fraser Canyon known as Moran Canyon, is notable as the site of the proposed Moran Dam. At Moran, on June 29, 2006, a diesel locomotive hauling one flatcar of lumber down the steep Pavilion grade 29 km (18 mi) north of Lillooet had its air brakes fail. The train gathered speed until it derailed over a steep gravelly slope; two of the three crew members were killed.[24]

In late March 2020, CN announced that it planned on abolishing through freight on the Lillooet Subdivision, between Williams Lake and Lillooet; as well as on the Squamish Sub, between Lillooet and Squamish. With some mills already curtailing operations and a further slowdown expected due to the emerging COVID-19 pandemic, on-line traffic did not warrant use of the 436 km (271 mi) section of railway, which runs through treacherous and maintenance-intensive territory. On April 7, the last regularly scheduled freight train arrived at the yard in Squamish. The remaining traffic in Williams Lake and points north now moves to the Greater Vancouver area via Prince George and the CN mainline. On the Squamish Subdivision, CN reportedly provided service to Continental Log homes in Mount Currie, and continues to use the line for railcar storage.[25] The Rocky Mountaineer luxury railtour sightseeing train still operates during the summer, as the only remaining through train on the line.

Between 1928 and 1952, the PGE interchanges were difficult—at Squamish there was a barge connection to North Vancouver and the rest of the North American railroads; after 1952 the PGE could connect with CN at Prince George. Connections were made to other railways when the railway completed its Howe Sound link in 1956. The main connection to the North American rail network was in North Vancouver, where there was a connection to CN. There was also a rail connection to deep-sea terminal operator Vancouver Wharves, and some interchange occurred with the Union Pacific Railroad through the Seaspan railbarge link between North Vancouver and Seattle, Washington. The railway also interchanged with CN at Prince George, and with Northern Alberta Railways (acquired by CN in 1981) at Dawson Creek. CN's line between Dawson Creek, British Columbia, and Hythe, Alberta, fell into disuse in 1998, but CN agreed to reopen it as a condition of purchasing BC Rail.[12] However, as of 2010 the line between Dawson Creek and Hythe is still disused.

BCIT 871027 in interchange service on the Burlington Northern in 1992.

Reporting marks are a system intended to help keep track of rolling stock and financial transactions between railways. The Pacific Great Eastern Railway used the reporting mark PGE. It later adopted the reporting mark PGER in 1971 for freight cars in international service. When the railway was renamed to the British Columbia Railway, it adopted the reporting mark BCOL. Initially, there was a distinction made between cars intended for local usage only (BCOL = BC On Line) and cars intended to be interchanged with other railways (BCIT = BC Interchange Traffic). Some cars, intended for use on the Northeast Coal connection were given BCNE.