the government converted CN Marine into Marine Atlantic, completely separating the rail and ferry services. Terra Transport operations were largely captive on Newfoundland and would specialize in handling import/export LCL and inter-island non-LCL freight. Abandonment In 1987, the federal government deregulated the railway industry in Canada and CN promptly applied to abandon its Newfoundland operations under Terra Transport. The political firestorm which followed saw the federal and provincial governments negotiate a one-time payout of $800 million (CAD) from Ottawa to St. John's to fund highway improvements under the Trans-Canada Highway Program and the Regional Trunk Road Agreement. The agreements were signed in December 1987; however, continuing public outcry and legal challenges kept the railway operational for several months. On 20 June 1988, it was officially announced that the railway would cease operations as of 1 September 1988. Some freight trains still ran until late September, with the last scheduled run on 29 September 1988. The last scheduled passenger train ran on 30 September 1988, from Bishops Falls to Corner Brook. Following official abandonment, the railway operated salvage trains, dismantling track in remote locations; some salvage trains were still operating in the summer of 1990. Most of the track was removed and scrapped by November 1990. CN no longer has any operations in the Province of Newfoundland. Since 1997, the old railbed has been reclaimed as the Newfoundland T'Railway Provincial Park. External links Railway-Coastal Museum 1979 establishments in Newfoundland and Labrador 1988 disestablishments in Newfoundland and Labrador Defunct Newfoundland and Labrador railways Canadian National Railway subsidiaries Companies based in St. John's, Newfoundland and Labrador 3 ft 6 in gauge railways in Canada Narrow gauge railways in Newfoundland and Labrador Former Crown corporations of Canada