Prince Edward Island Railway - Canadian Government Railways

Canadian Government Railways

Thus the Government of Canada came to inherit the PEIR in 1874 at the same time as construction was progressing on the Intercolonial Railway (IRC), which would link the strategic winter ports of the Canadian Maritimes with Central Canada. New locomotives were purchased from the United Kingdom and from Canadian manufacturers along with new rail cars.

In 1885, a new line was built connecting the Charlottetown-Summerside main line at Emerald Junction with another Northumberland Strait port at Cape Traverse. From Cape Traverse, iceboats would cross the Abegweit Passage to Cape Tormentine, New Brunswick during the winter months.

Another new line was built east from Charlottetown to Murray Harbour, part of which included building the Hillsborough River Bridge, using a former IRC bridge over the Miramichi River at Newcastle, New Brunswick. Branches were also constructed at this time off PEIR lines to Vernon Bridge, Montague, and Elmira.

From 1915-1918, the PEIR and the IRC would come to be known collectively as the Canadian Government Railways (CGR), although each company would maintain its separate corporate identity and management.

The most revolutionary change to the PEIR occurred in 1915 when a new icebreaking railcar ferry called Prince Edward Island was ordered by the federal government, arriving from the United Kingdom with a capacity of 12 rail cars, however it would not be until 1917 that the port facilities at Port Borden and Cape Tormentine would be ready to handle the vessel. In the meantime, the Prince Edward Island continued to operate the service to the port of Pictou, Nova Scotia from Georgetown and Charlottetown for the next two years.

The new ferry port at Borden required the Cape Traverse-Emerald Junction line be modified, and a line was constructed to Borden, along with marshalling yards and other facilities. The Cape Traverse line would only last a few more years before being abandoned following the move to Borden. Up until this point, the PEIR was a completely captive system, having no need for interchange with mainland North American railways. Following the start of railcar service in 1917, the lines to Charlottetown and Summerside from Borden were dual-gauged, capable of handling mainland cars with the standard gauge of 4 ft 8 1⁄₂ in (1,435 mm) and the PEIR's narrow gauge of 3 ft 6 in (1,067 mm).