Tuesday, March 10, 2009

Railroads and Railways: ongoing

Most US railroads began as local and regional ventures while Canada’s major rail lines were conceived as transcontinentals. It wasn’t till the last quarter of the 20th century that business pressures forced US rail lines to amalgamate into today’s giants such as Burlington Northern Santa Fe (the name says it all) as an alternative to bankruptcy.

The two main Canadian carriers, CN and CP have long had American branch lines. Since the North American Free Trade Agreement (NAFTA), both have expanded their Stateside presence in a big way.

Of special interest is CN. Originally Canadian National Railways, it was born out of the failure and nationalization of a number of private railways after World War I. These made up a state-subsidized system that competed with the privately run Canadian Pacific.

Privatized in 1995, CN divested itself of marginal branch lines and set out in search of acquisitions that would extend its continental reach. First was Illinois Central, the line along the Mississippi popularized by the passenger train and song “City of New Orleans.”

This gave CN a T-shaped configuration and major port connections on three North American coasts: Atlantic, Pacific and Gulf of Mexico. CN then approached Burlington Northern Santa Fe in what would have been the continent’s largest rail carrier.

This merger was blocked under US anti-trust regulations. Had it gone ahead, Canadian Pacific planned to enter talks with Union Pacific to form a second super line.

Denial of its original proposal did not stop CN expansion. The name planned for its intended merger with BNSF, “North American Railroad” is now CN’s byline.

A footnote: “Railway” is British usage. “Railroad” is the preferred American, as in “I’ve been working on the Railroad.” (An equivalent British song is: “Paddy on the Railway.”)

However, Americans use “-way” for urban tramway systems which are “street railways.” “Railway” was also been used in the US as a backup for corporate purposes. For instance, when the original Union Pacific Railroad became insolvent, it was reorganized as “Union Pacific Railway” for a few years, then reverted to the earlier name.

Canadians use both. Major rail companies are called “railways”: Canadian National Railways. Canadian Pacific Railway, the Hudson Bay Railway. The physical structure—rails, ties, spikes, right of way—on which these operate is called, collectively, a railroad.

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