The Government of British Columbia made the decision to "sell" the provincially-owned British Columbia Railway to private interests. For all intense purposes it was called a sale but in actuality it was a 999 year lease to Canadian National Railway Company (CN) starting in 2004. The controversy over that decision continues today.
On 25 Nov 2003 the B.C. government announced it had selected CN as the successful proponent for a new BC Rail Investment Partnership that would generate $1 billion in investment for B.C., help to revitalize the BC Rail system, and create opportunities for economic development and job creation in the North.
Others held the opinion Premier Gordon Campbell was breaking his election promise by selling BC Rail. The lease of BC Rail saw CN take over this third largest railway in Canada. It reduced competition in the industry and gave CN a monopoly on northern rail transportation. The Council of Trade Unions on BC Rail worked with community groups and civic leaders to send a message to MLA's and Victoria that they would not allow the Crown Corporation to be sold. The message was loud and clear, Don't sell BC Rail !
Prior to the government's announcement above, there were several bidders to the sale including Union Pacific, Burlington Northern Santa Fe, Omnitrax, and Canadian Pacific Railway. Before a bidder could be chosen CPR withdrew from the bidding process stating the government had breached the fairness of the bidding process.
While efforts to stop the sale of the railway were initiated by several groups, they met with no success. Canadian National took over the equipment, rolling stock, and track in a 999 year lease officially completing this $1 billion transaction on 14 Jul 2004. You should note this lease is to operate the railway only. The provincial government still owns the land beneath the right-of-way.
Some time afterward CN announced a change to the way the railway would be operated between North Vancouver and Prince George. Three daily BC Rail trains between North Vancouver and Prince George would be abolished. In their place local Road Switchers would operate north and south, from Squamish, Lillooet, and Williams Lake, with Prince George operating to the south. Crews would be based at these home terminals and would return there in a continuous tour of duty. They would meet and exchange cars with opposing trains so that cars could be passed along the line as required.
As of 18 Oct 2004 this plan wasn't implemented so through trains continued between North Vancouver and Prince George. Photographs with this article show train SQJO (Squamish-St. John) arriving in Quesnel with only 6 cars on that particular date. Local switching was performed in Quesnel yard then the train proceeded towards Prince George with 22 cars in tow.
It appears the BC Rail system has gone from a mainline railway to a branchline.
