CN Rail to end lease on Sea to Sky corridor railway through Whistler, opening door for rail public transit revival
In 2003, the BC Liberals-led provincial government controversially sold BC Rail’s equipment to CN Rail for $550 million and privately leased the railway’s operations to CN Rail under a long-term agreement valued at $1 billion.
The deal included an initial 60-year lease with an optional 30-year extension, allowing for a total term of up to 90 years. At the time of the renewal juncture, the B.C. government would have the option to buy back the assets from CN Rail. Prior to this agreement, the provincial Crown corporation was a highly profitable freight business and stood as the third-largest railway in Canada, after Canadian Pacific Kansas City (CPKC) and CN Rail.
CN Rail uses the BC Rail corridors for freight train operations, and the only passenger services running on the route are the Rocky Mountaineer luxury sightseeing trains.
However, last week, within a new three-year operational plan, CN Rail quietly announced the “discontinuance” of key railway segments of its BC Rail operations, effectively initiating the process of ending its lease on the rail corridor between Squamish and 100 Mile House, as well as the branch emanating from Lillooet.
CN Rail will continue to lease and operate BC Rail’s railway segment between Lonsdale in North Vancouver and Squamish.
Map of CN Rail routes in southwestern B.C., including the BC Rail segment from North Vancouver to the Sea to Sky corridor. (CN Rail)
Rocky Mountaineer’s “Rainforest to Gold Rush” route running through the Sea to Sky corridor. (Rocky Mountaineer)
Rocky Mountaineer’s “Rainforest to Gold Rush” route running through the Sea to Sky corridor. (Rocky Mountaineer)
The CN Rail (BC Rail) railway running next to the Sea to Sky Highway in Whistler. (Google Maps)
For the railway segment between Squamish and 100 Mile House, interested parties will be able to take over the segment from CN Rail to run train services starting in July 2026.
Jeremy Valeriote, MLA for West Vancouver–Sea to Sky with the B.C. Green Party, says the current timeline gives governments a one-year window to build a business case for acquiring the approximately 40 years remaining on the lease through a new operating entity.
If there are no interested parties to run the railway, the segment will be offered for net salvage value to different levels of government under the Canada Transportation Act.
“The potential transfer of this rail corridor marks a pivotal moment for the Sea to Sky region,” said Patrick Weiler, the MP for West Vancouver-Sunshine Coast-Sea to Sky Country under the federal Liberal Party, in a statement.
According to Valeriote and Weiler, since the early 2000s, the Sea to Sky Corridor’s residential population has grown by over 60 per cent, and tourism, leisure, and recreational traffic has also increased substantially.
Much of the residential population and economic development growth was previously catalyzed by the accessibility, capacity, travel time, and safety improvements made by the major widening and improvement project of the Sea to Sky Highway in time for the 2010 Winter Olympics. However, since then, the highway’s capacity has become increasingly strained by rising demand, as Squamish continues to evolve into a commuter suburb for both Metro Vancouver and Whistler — where housing options for workers in tourism, hospitality, hotels, restaurants, and the ski resort businesses are particularly limited.
Both officials believe launching a new rail transit service could play a meaningful part of the new transportation capacity solutions needed for the Sea to Sky corridor.
“This summer, the Sea to Sky Highway is clearly showing itself to be at capacity, even without closures due to tragic crashes. Regional bus and rail transit can ease the pressure on Highway 99 and give people affordable options for travel in the corridor,” said Valeriote.
“If senior levels of government are serious about investing in infrastructure to create jobs and strengthen our economy, this is an opportunity we can’t afford to miss,” continued Valeriote.
Based on a 2017 study by BC Transit for the provincial public transit authority’s exploration of a new interregional service along the Sea to Sky Highway, there would be sufficient ridership for a bus system between downtown Vancouver and Whistler, with major stops at Horseshoe Bay and Squamish.
To date, the provincial government has not provided the funding needed to execute BC Transit’s studied strategy.
But in the Fall 2024 provincial election campaign, Premier David Eby’s BC NDP party promised the consideration of new public transit services for the Sea to Sky corridor, with the creation of a business plan for operating a commuter rail line to link Metro Vancouver, Squamish, Whistler, and Pemberton.
“This will help address crowding and traffic in this fast-growing corridor and increase convenient access to more affordable housing for workers who live in Squamish and Pemberton and commute to Whistler or Vancouver,” reads the BC NDP’s platform last year.
2017 study; proposed interregional bus services along the Sea to Sky Highway between downtown Vancouver and Pemberton. (BC Transit)
BC Transit bus on the Sea to Sky Highway near Whistler Village. (Trevor Bodnar/Resort Municipality of Whistler)
Calls to implement regional public transit options along the Sea to Sky corridor also intensified after Greyhound in 2018 ended its relatively frequent bus routes along the Sea to Sky Highway linking Vancouver, Squamish, and Whistler, as part of its overall withdrawal from B.C.
There are still some private bus services that traverse the length of the corridor — such as YVR Skylynx and Epic Rides — but they have not been able to fill the capacity and frequency gap left by Greyhound.
In recent years, the organization known as Mountain Valley Express has also advocated for the development of a broader, frequent, and high-capacity regional rail network across the Lower Mainland and the Sea to Sky corridor, extending as far as Whistler.
“Restoring passenger rail service is a promising avenue worth serious consideration, alongside the imperative of a regional bus transit system this year. Passenger rail would reduce traffic congestion, lower emissions, and better connect communities — enhancing both economic resilience and quality of life,” said Weiler.
Over half a century ago, there were some passenger rail services along this corridor from North Vancouver, travelling far north, past Pemberton, to reach Prince George.
VIA Rail also operated a tourism sightseeing train experience in the 1980s, before selling the service to what would become Rocky Mountaineer in 1990.
BC Rail also operated several passenger services, including excursion trains that ran from North Vancouver along the Sea to Sky corridor toward destinations like Squamish and beyond. However, these excursions faced financial difficulties and were eventually discontinued, shortly before BC Rail was privatized.
If a solution to keep the railway segment running beyond July 2026 is not found, it could potentially force the suspension of the Rocky Mountaineer’s key sightseeing route between North Vancouver and Jasper in Alberta, which has overnight stops in Whistler and Quesnel along the way. Rocky Mountaineer would still have two other routes in Western Canada, leaving from its Vancouver station in the False Creek Flats to reach Calgary and Jasper, respectively.
Daily Hive Urbanized reached out to the Rocky Mountaineer for comment, but did not hear back in time for publication.
Rocky Mountaineer’s “Rainforest to Gold Rush” route running through the Sea to Sky corridor. (Rocky Mountaineer)
Rocky Mountaineer’s Whistler Station at Nita Lake Lodge. (Google Maps)
Map of Rocky Mountaineer’s train routes in Western Canada, including the “Rainforest to Gold Rush Route” between North Vancouver and Jasper via Whistler and Quesnel. (Rocky Mountaineer)
Another potential service suspension is the high-rail bus that supports the local transportation needs of First Nations communities in the Lillooet area.
“Naturally, there are complexities. Any move to include or prioritize passenger rail would require a future operator and significant coordination among governments, freight operators, and First Nations,” continued Weiler.
“Fortunately, the formal process now underway provides us with a full year to examine the details, assess feasibility, and engage the public thoroughly.”
Significant investments would be required to upgrade the railway corridor, as its current travel times are highly uncompetitive compared to driving.
Concurrently, the provincial government, Island Corridor Foundation, First Nations, and other groups are considering the long-term uses and transformation of the 225-km-long, north-south railway corridor on Vancouver Island between Victoria and Courtenay, including the possibility of the revival of passenger railway services. This was previously a corridor operated by CPKC. In 2023, the provincial government set aside $18 million for the corridor’s planning work.
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