How Cars and Planes Undermined Canada’s Once-Ubiquitous Passenger Rail

Railroads formed the backbone of Canada’s early growth, connecting almost all mid-sized towns and supporting electric tram networks in smaller cities by the 1950s. The transition began when Canadians could afford personal automobiles and later airline tickets, causing a sharp fall in passenger numbers. In response, the Government of Canada launched a royal commission in 1959, where Canadian Pacific Railway officials noted that increased car use, bus convenience and lower air-travel costs made a rail resurgence unlikely, leading to subsidies for the remaining routes.

This pattern mirrored trends in Australia, the United States and New Zealand, whereas densely populated Europe and Japan maintained larger passenger rail systems. By the early 1980s a flight from Moncton to Montreal cost $123 and took one hour, while the train cost $119, lasted 14 hours and required crossing the U.S. border. Although freight volumes on rail have risen, passenger service remains marginal because of slower speeds and reduced comfort compared with cars and planes.