Zeke, the book "Canadian Pacific to the East" does a good job in explaining the line's demise. I can't remember if the book mentions it, but CP Rail reorganized in the mid 80's (1987?) into internal Heavy Haul and Intermodal Freight Systems organizational divisions. Carload traffic in the East was dwindling, while profitable bulk material unit train business was growing in the West; the creation of these two divisions was evidence of CP's conscious pivot to the West. Saint John lost its container traffic in the mid-80s, the winter grain business went away. (it's still hard to believe grain was still moving in 40-ft, friction bearing boxcars into the 80s),NB branch lines were a shadow of their former selves, and the Dominion Atlantic (IMO, the most noble railroad name there is, rivaled only by "Grand Trunk") over in NS was dying a slow death. CP found the excuse they needed to kill the northern branches in 1987 when two bridges were knocked out by spring ice floes. CP's formation of Canadian Atlantic Railway to encompass essentially all lines east of Montreal in 1988 was, however, the most visible transition step to divestiture.
Keep in mind, too, that CN has retrenched - a lot! - in the Maritimes. In the 80s, they abandoned operations in NF. In 1989, they abandoned operations on PEI, and have since divested hundreds of miles of trackage in NB, NS and eastern PQ.
Keep in mind, too, that CN has retrenched - a lot! - in the Maritimes. In the 80s, they abandoned operations in NF. In 1989, they abandoned operations on PEI, and have since divested hundreds of miles of trackage in NB, NS and eastern PQ.