B.C. Government to Retain Public Ownership of Sea to Sky Railway Corridor Following CN Rail Discontinuance

The British Columbia government has formally committed to protecting the Sea to Sky railway corridor for long-term transportation needs following CN Rail’s decision to wind down operations between Squamish and 100 Mile House. While CN Rail currently holds the operating rights under a long-term lease, the underlying land and infrastructure remain owned by the provincial Crown corporation, BC Railway Company. This move aims to preserve the corridor's potential for future goods movement and passenger rail services as the parallel Sea to Sky Highway faces increasing congestion and reliability issues.

B.C. Minister of Transportation and Transit Mike Farnworth announced that the province intends to keep the rail corridor in public hands to support future economic growth and supply chain strength. CN Rail’s discontinuance of the segment north of Squamish through Whistler and Lillooet follows a period where the company has not utilized the line since 2020. Under the federal discontinuance process, interested parties can propose to take over the operating rights for this segment beginning July 11, 2026, provided CN Rail advertises the line for new operators.

The corridor's complex ownership dates back to a 2003 agreement where the BC Liberal government sold BC Rail’s equipment to CN for $550 million and leased operations for $1 billion. This deal established an initial 60-year lease with a 30-year extension option, totaling up to 90 years, though the province retains the right to buy back assets at the time of renewal. Before this privatization, the BC Railway Company was Canada’s third-largest railway and a highly profitable freight entity.

Local advocates, including MP Patrick Weiler and MLA Jeremy Valeriote, are urging the province to use this transition to revive passenger rail services to alleviate pressure on the Sea to Sky Highway. The highway has become increasingly strained by tourism and residential growth, with recent accidents causing prolonged closures that highlight the need for alternative transportation capacity. If no private operators step forward to run the railway, the segment will be offered for net salvage value to various levels of government under the Canada Transportation Act.