Is Canadian National Railway (CN Rail) Privately Owned?

Canada's largest railway company, Canadian National Railway (CN Rail), has an interesting history that dates back to the late 19th century. Originally a government-owned corporation, CN Rail has since undergone significant changes and has now become a publicly traded company, owned by shareholders. This article delves into the history of CN Rail, its privatization, and its current status as a private entity.

History of Canadian National Railway (CNR)

The story of CNR begins with the construction of the Canadian Pacific Railway (CPR), a matter of national policy in the 1870s and '80s. The federal government undertook this ambitious project, surveying routes and establishing a government-approved route. Initially, the CPR was a public work, but it faced significant challenges. Eventually, the CPR was turned over to a private sector group, with figures such as Donald Smith, George Stephen, and James J. Hill leading the effort.

These early days of the CPR saw the railway push through the Canadian Shield and across the Rockies, establishing a line that served a small area along its main route. However, the landscape to the north, including what would become Saskatchewan and Alberta, remained underdeveloped, with travel predominantly conducted by Red River carts and river boats. To address this, a series of branch lines were chartered and built by private companies, which were then leased to the CPR.

The Canadian Northern Railway (CN)

Into this landscape came William Mackenzie and Donald Mann, entrepreneurs who acquired various short lines and chartered lines to compete with the CPR in the Canadian Prairies. By 1908, their lines spanned a significant portion of the prairies, reaching from Winnipeg to Saskatoon and Regina, and further west to Edmonton. Interestingly, they also extended their lines from Winnipeg to Port Arthur on Lake Superior, facilitating the export of grain from the prairie provinces.

The creation of the Grand Trunk Pacific (GTP) railway in the early 20th century added another layer of complexity to the Canadian railway landscape. The GTP was to run from Fort William to Prince Rupert, connecting to the Pacific via the Yellowhead Pass. The Laurier Government supported the GTP and a third railway, Canadian Northern, further placing the CN at a strategic disadvantage. Despite these challenges, the CNP and GTP went bankrupt during World War I, and the Federal Government took control, merging them into the Canadian National Railway (CNR).

Privatization of Canadian National Railway (CN Rail)

Until 1995, the CNR continued to operate as a Crown Corporation, serving the Canadian government and ensuring key transportation services. However, the Federal Government passed the CN Commercialization Act, which changed the landscape of ownership. The act stipulated that no individual could own more than 15% of the company and that the corporate headquarters would remain in Montreal to maintain the corporation's Canadian identity. This act marked the privatization of CN Rail, transforming it into a publicly traded company.

Shareholders: As a publicly traded company, CN Rail is owned by a consortium of institutional investors and mutual funds such as Vanguard, JP Morgan, BlackRock, Capital Research and Investment, and T. Rowe Price. These stakeholders include both domestic and international entities, reflecting the global nature of CN Rail's operations.

Current Status: Today, CN Rail operates as a private entity, listed on both the Toronto Stock Exchange and the New York Stock Exchange. It continues to be a vital part of the Canadian and North American transportation infrastructure, serving a diverse range of industries and consumers.

For those interested in the detailed history and operations of CN Rail, more information is available on the company's official website and through various financial and industry reports.