Crowsnest Pass - Transportation

Transportation

The Canadian Pacific Railway built a line from Lethbridge, Alberta, to Kootenay Landing, British Columbia through the Crowsnest Pass between 1897 and 1898. This line was built primarily to access mineral-rich southeastern BC via an all-Canadian rail route, and to assert Canadian (and CPR) sovereignty in an area that U.S. railroads were beginning to build into. It also opened up coal deposits in the Elk River valley which were important to mineral smelting operations and assisted the CPR in its conversion of locomotives from wood to coal. The CPR sought and received construction funding from the federal government, partially in exchange for a freight subsidy on prairie farm exports and equipment imports which came to be called the "Crow's Nest Pass Agreement".

"The Crow Rate", as the subsidy agreement came to be referred to, was eventually extended from CPR's Crowsnest Pass railway line to apply to all railway lines in western Canada, regardless of corporate ownership or geography, creating artificially low freight rates for grain shipments through the Great Lakes ports. The rate also correspondingly limited industrial growth in the western provinces as it was cheaper to produce items in eastern Canada and ship them west under the Crow Rate. This subsidy was finally abolished in 1995.

The Crowsnest Highway operates as Highway 3 in both provinces and runs through the pass parallel to the CPR line, as does an oil pipeline.