What was the steamship used for?

A steamship, often referred to as a steamer, is a type of steam powered vessel, typically ocean-faring and seaworthy, that is propelled by one or more steam engines that typically move (turn) propellers or paddlewheels. The first steamships came into practical usage during the early 1800s; however, there were exceptions that came before. Steamships usually use the prefix designations of "PS" for "paddle steamer" or "SS" for "screw steamer" (using a propeller or screw). As paddle steamers became less common, "SS" is assumed by many to stand for "steam ship". Ships powered by internal combustion engines use a prefix such as "MV" for "motor vessel", so it is not correct to use "SS" for most modern vessels.

Steamship

As steamships were less dependent on wind patterns, new trade routes opened up. The steamship has been described as a "major driver of the first wave of trade globalization (1870–1913)" and contributor to "an increase in international trade that was unprecedented in human history."

The steamship was preceded by smaller vessels designed for insular transportation, called steamboats. Once the technology of steam was mastered at this level, steam engines were mounted on larger, and eventually, ocean-going vessels. Becoming reliable, and propelled by screw rather than paddlewheels, the technology changed the design of ships for faster, more economic propulsion.

Paddlewheels as the main motive source became standard on these early vessels (see Paddle steamer). It was an effective means of propulsion under ideal conditions but otherwise had serious drawbacks. The paddle-wheel performed best when it operated at a certain depth, however when the depth of the ship changed from added weight it further submerged the paddle wheel causing a substantial decrease in performance.

Within a few decades of the development of the river and canal steamboat, the first steamships began to cross the Atlantic Ocean. The first sea-going steamboat was Richard Wright's first steamboat "Experiment", an ex-French lugger; she steamed from Leeds to Yarmouth in July 1813.

The first iron steamship to go to sea was the 116-ton "Aaron Manby", built in 1821 by Aaron Manby at the Horseley Ironworks, and became the first iron-built vessel to put to sea when she crossed the English Channel in 1822, arriving in Paris on 22 June. She carried passengers and freight to Paris in 1822 at an average speed of 8 knots (9 mph, 14 km/h).

The American ship first crossed the Atlantic Ocean, although most of the voyage was actually made under sail. The first ship to make the transatlantic trip substantially under steam power may have been the British-built Dutch-owned "Curaçao", a wooden 438 ton vessel built in Dover and powered by two 50 hp engines, which crossed from Hellevoetsluis, near Rotterdam on 26 April 1827 to Paramaribo, Surinam on 24 May, spending 11 days under steam on the way out and more on the return. Another claimant is the Canadian ship in 1833.

The first steamship purpose-built for regularly scheduled trans-Atlantic crossings was the British side-wheel paddle steamer built by Isambard Kingdom Brunel in 1838, which inaugurated the era of the trans-Atlantic ocean liner.

The, built in Britain in 1839 by Francis Pettit Smith, was the world's first screw propeller-driven steamship for open water seagoing. It had considerable influence on ship development, encouraging the adoption of screw propulsion by the Royal Navy, in addition to her influence on commercial vessels. The first screw-driven propeller steamship introduced in America was on a ship built by Thomas Clyde in 1844 and many more ships and routes followed.

The key innovation that made ocean-going steamers viable was the change from the paddle-wheel to the screw-propeller as the mechanism of propulsion. These steamships quickly became more popular, because the propeller's efficiency was consistent regardless of the depth at which it operated. Being smaller in size and mass and being completely submerged, it was also far less prone to damage.

James Watt of Scotland is widely given credit for applying the first screw propeller to an engine at his Birmingham works, an early steam engine, beginning the use of an hydrodynamic screw for propulsion.

The development of screw propulsion relied on the following technological innovations.

Steam engines had to be designed with the power delivered at the bottom of the machinery, to give direct drive to the propeller shaft. A paddle steamer's engines drive a shaft that is positioned above the waterline, with the cylinders positioned below the shaft. SS" Great Britain" used chain drive to transmit power from a paddler's engine to the propeller shaft - the result of a late design change to propeller propulsion.

An effective stern tube and associated bearings were required. The stern tube contains the propeller shaft where it passes through the hull structure. It should provide an unrestricted delivery of power by the propeller shaft. The combination of hull and stern tube must avoid any flexing that will bend the shaft or cause uneven wear. The inboard end has a stuffing box that prevents water from entering the hull along the tube. Some early stern tubes were made of brass and operated as a water lubricated bearing along the entire length. In other instances a long bush of soft metal was fitted in the after end of the stern tube. The "Great Eastern" had this arrangement fail on her first transatlantic voyage, with very large amounts of uneven wear. The problem was solved with a lignum vitae water-lubricated bearing, patented in 1858. This became standard practice and is in use today.

Since the motive power of screw propulsion is delivered along the shaft, a thrust bearing is needed to transfer that load to the hull without excessive friction. SS" Great Britain" had a 2 ft diameter gunmetal plate on the forward end of the shaft which bore against a steel plate attached to the engine beds. Water at 200 psi was injected between these two surfaces to lubricate and separate them. This arrangement was not sufficient for higher engine powers and oil lubricated "collar" thrust bearings became standard from the early 1850s. This was superseded at the beginning of the 20th century by floating pad bearing which automatically built up wedges of oil which could withstand bearing pressures of 500 psi or more.

Steam-powered ships were named with a prefix designating their propeller configuration i.e. single, twin, triple-screw. Single-screw Steamship SS, Twin-Screw Steamship TSS, Triple-Screw Steamship TrSS. Steam turbine-driven ships had the prefix TS. In the UK the prefix RMS for Royal Mail Steamship overruled the screw configuration prefix. See Ship prefix

The first steamship credited with crossing the Atlantic Ocean between North America and Europe was the American ship, though she was actually a hybrid between a steamship and a sailing ship, with the first half of the journey making use of the steam engine. "Savannah" left the port of Savannah, Georgia, on 22 May 1819, arriving in Liverpool, England, on 20 June 1819; her steam engine having been in use for part of the time on 18 days (estimates vary from 8 to 80 hours). A claimant to the title of the first ship to make the transatlantic trip substantially under steam power is the British-built Dutch-owned "Curaçao", a wooden 438 ton vessel built in Dover and powered by two 50 hp engines, which crossed from Hellevoetsluis, near Rotterdam on 26 April 1827 to Paramaribo, Surinam on 24 May, spending 11 days under steam on the way out and more on the return. Another claimant is the Canadian ship in 1833.

The British side-wheel paddle steamer was the first steamship purpose-built for regularly scheduled trans-Atlantic crossings, starting in 1838. In 1836 Isambard Kingdom Brunel and a group of Bristol investors formed the Great Western Steamship Company to build a line of steamships for the Bristol-New York route. The idea of regular scheduled transatlantic service was under discussion by several groups and the rival British and American Steam Navigation Company was established at the same time. "Great Western's" design sparked controversy from critics that contended that she was too big. The principle that Brunel understood was that the carrying capacity of a hull increases as the cube of its dimensions, while water resistance only increases as the square of its dimensions. This meant that large ships were more fuel efficient, something very important for long voyages across the Atlantic.

"Great Western" was an iron-strapped, wooden, side-wheel paddle steamer, with four masts to hoist the auxiliary sails. The sails were not just to provide auxiliary propulsion, but also were used in rough seas to keep the ship on an even keel and ensure that both paddle wheels remained in the water, driving the ship in a straight line. The hull was built of oak by traditional methods. She was the largest steamship for one year, until the British and American's "British Queen" went into service. Built at the shipyard of Patterson & Mercer in Bristol, "Great Western" was launched on 19 July 1837 and then sailed to London, where she was fitted with two side-lever steam engines from the firm of Maudslay, Sons & Field, producing 750 indicated horsepower between them. The ship proved satisfactory in service and initiated the transatlantic route, acting as a model for all following Atlantic paddle-steamers.

The Cunard Line's began her first regular passenger and cargo service by a steamship in 1840, sailing from Liverpool to Boston.

In 1847 the revolutionary, also built by Brunel, became the first iron-hulled screw-driven ship to cross the Atlantic. The SS "Great Britain" was the first ship to combine these two innovations. After the initial success of its first liner, SS "Great Western" of 1838, the Great Western Steamship Company assembled the same engineering team that had collaborated so successfully before. This time however, Brunel, whose reputation was at its height, came to assert overall control over design of the ship—a state of affairs that would have far-reaching consequences for the company. Construction was carried out in a specially adapted dry dock in Bristol, England.
Brunel was given a chance to inspect John Laird's (English) channel packet ship "Rainbow"—the largest iron-hulled ship then in service— in 1838, and was soon converted to iron-hulled technology. He scrapped his plans to build a wooden ship and persuaded the company directors to build an iron-hulled ship. Iron's advantages included being much cheaper than wood, not being subject to dry rot or woodworm, and its much greater structural strength. The practical limit on the length of a wooden-hulled ship is about 300 feet, after which hogging—the flexing of the hull as waves pass beneath it—become too great. Iron hulls are far less subject to hogging, so that the potential size of an iron-hulled ship is much greater.

In the spring of 1840 Brunel also had the opportunity to inspect the, the first screw-propelled steamship, completed only a few months before by F. P. Smith's Propeller Steamship Company. Brunel had been looking into methods of improving the performance of "Great Britain"s paddlewheels, and took an immediate interest in the new technology, and Smith, sensing a prestigious new customer for his own company, agreed to lend "Archimedes" to Brunel for extended tests. Over several months, Smith and Brunel tested a number of different propellers on "Archimedes" in order to find the most efficient design, a four-bladed model submitted by Smith. When launched in 1843, "Great Britain" was by far the largest vessel afloat.

Brunel's last major project, the, was built in 1854–57 with the intent of linking Great Britain with India, via the Cape of Good Hope, without any coaling stops. This ship was arguably more revolutionary than her predecessors. She was one of the first ships to be built with a double hull with watertight compartments and was the first liner to have four funnels. She was the biggest liner throughout the rest of the 19th century with a gross tonnage of almost 20,000 tons and had a passenger-carrying capacity of thousands. The ship was ahead of her time and went through a turbulent history, never being put to her intended use. The first transatlantic steamer built of steel was, built by Allan Line Royal Mail Steamers and entering service in 1879.

The first regular steamship service from the East Coast to the West Coast of the United States began on 28 February 1849, with the arrival of the in San Francisco Bay. The "California" left New York Harbor on 6  October 1848, rounded Cape Horn at the tip of South America, and arrived at San Francisco, California, after a four-month and 21-day journey. The first steamship to operate on the Pacific Ocean was the paddle steamer "Beaver", launched in 1836 to service Hudson's Bay Company trading posts between Puget Sound Washington and Alaska.

The most testing route for steam was from Britain or the East Coast of the USA to the Far East. The distance from either is roughly the same, between, traveling down the Atlantic, round the southern tip of Africa and across the Indian Ocean. Before 1866, no steamship could carry enough coal to make this voyage and have enough space left to carry a commercial cargo.

A partial solution to this problem was adopted by the Peninsular and Oriental Steam Navigation Company (P&O), using an overland section between Alexandria and Suez, with connecting steamship routes along the Mediterranean and then through the Red Sea. While this worked for passengers and some high value cargo, sail was still the only solution for virtually all trade between China and Western Europe or East Coast America. Most notable of these cargoes was tea, typically carried in clippers.

Another partial solution was the Steam Auxiliary Ship - a vessel with a steam engine, but also rigged as a sailing vessel. The steam engine would only be used when conditions were unsuitable for sailing - in light or contrary winds. Some of this type (for instance "Erl King") were built with propellers that could be lifted clear of the water to reduce drag when under sail power alone. These ships struggled to be successful on the route to China, as the standing rigging required when sailing was a handicap when steaming into a head wind, most notably against the southwest monsoon when returning with a cargo of new tea. Though the auxiliary steamers persisted in competing in far eastern trade for a few years (and it was "Erl King" that carried the first cargo of tea through the Suez Canal), they soon moved on to other routes.

What was needed was a big improvement in fuel efficiency. While the boilers for steam engines on land were allowed to run at high pressures, the Board of Trade (under the authority of the Merchant Shipping Act 1854) would not allow ships to exceed. Compound engines were a known source of improved efficiency – but generally not used at sea due to the low pressures available. "Carnatic" (1863), a P&O ship, had a compound engine - and achieved better efficiency than other ships of the time. Her boilers ran at but relied on a substantial amount of superheat.

Alfred Holt, who had entered marine engineering and ship management after an apprenticeship in railway engineering, experimented with boiler pressures of in "Cleator". Holt was able to persuade the Board of Trade to allow these boiler pressures and, in partnership with his brother Phillip launched "Agamemnon" in 1865. Holt had designed a particularly compact compound engine and taken great care with the hull design, producing a light, strong, easily driven hull.

The efficiency of Holt's package of boiler pressure, compound engine and hull design gave a ship that could steam at 10 knots on 20 long tons of coal a day. This fuel consumption was a saving from between 23 and 14 long tons a day, compared to other contemporary steamers. Not only did less coal need to be carried to travel a given distance, but fewer firemen were needed to fuel the boilers, so crew costs and their accommodation space were reduced. "Agamemnon" was able to sail from London to China with a coaling stop at Mauritius on the outward and return journey, with a time on passage substantially less than the competing sailing vessels. Holt had already ordered two sister ships to "Agamemnon" by the time she had returned from her first trip to China in 1866, operating these ships in the newly formed Blue Funnel Line. His competitors rapidly copied his ideas for their own new ships.

The opening of the Suez Canal in 1869 gave a distance saving of on the route from China to London. The canal was not a practical option for sailing vessels, as using a tug was difficult and expensive – so this distance saving was not available to them. Steamships immediately made use of this new waterway and found themselves in high demand in China for the start of the 1870 tea season. The steamships were able to obtain a much higher rate of freight than sailing ships and the insurance premium for the cargo was less. So successful were the steamers using the Suez Canal that, in 1871, 45 were built in Clyde shipyards alone for Far Eastern trade.

By 1870 a number of inventions such as the screw propeller, the compound engine, and the triple-expansion engine made trans-oceanic shipping on a large scale economically viable. In 1870 the White Star Line’s set a new standard for ocean travel by having its first-class cabins amidships, with the added amenity of large portholes, electricity and running water. The size of ocean liners increased from 1880 to meet the needs of the human migration to the United States and Australia.

Launched in 1938, was the largest passenger steamship ever built. Launched in 1969, (QE2) was the last passenger steamship to cross the Atlantic Ocean on a scheduled liner voyage before she was converted to diesels in 1986. The last major passenger ship built with steam turbines was the "Fairsky", launched in 1984, later Atlantic Star, reportedly sold to Turkish shipbreakers in 2013.

Most luxury yachts at the end of the 19th and early 20th centuries were steam driven (see luxury yacht; also Cox & King yachts). Thomas Assheton Smith was an English aristocrat who forwarded the design of the steam yacht in conjunction with the Scottish marine engineer Robert Napier.

The decline of the steamship began after World War II. Many had been lost in the war, and marine diesel engines had finally matured as an economical and viable alternative to steam power. The diesel engine had far better thermal efficiency than the reciprocating steam engine, and was far easier to control. Diesel engines also required far less supervision and maintenance than steam engines, and as an internal combustion engine it did not need boilers or a water supply, therefore was more space efficient.

The Liberty ships were the last major steamship class equipped with reciprocating engines. The last Victory ships had already been equipped with marine diesels, and diesel engines superseded both steamers and windjammers soon after World War Two. Most steamers were used up to their maximum economical life span, and no commercial ocean-going steamers with reciprocating engines have been built since the 1960s.

Most steamships today are powered by steam turbines. After the demonstration by British engineer Charles Parsons of his steam turbine-driven yacht, "Turbinia", in 1897, the use of steam turbines for propulsion quickly spread. The Cunard RMS "Mauretania", built in 1906 was one of the first ocean liners to use the steam turbine (with a late design change shortly before her keel was laid down) and was soon followed by all subsequent liners.

Most capital ships of the major navies were propelled by steam turbines burning bunker fuel in both World Wars. Large naval vessels and submarines continue to be operated with steam turbines, using nuclear reactors to boil the water.
NS "Savannah", was the first nuclear-powered cargo-passenger ship, and was built in the late 1950s as a demonstration project for the potential use of nuclear energy.

Thousands of Liberty Ships (powered by steam piston engines) and Victory Ships (powered by steam turbine engines) were built in World War II. A few of these survive as floating museums and sail occasionally: SS "Jeremiah O'Brien", SS "John W. Brown", "SS "American Victory", SS "Lane Victory", and SS "Red Oak Victory".

A steam turbine ship can be either direct propulsion (the turbines, equipped with a reduction gear, rotate directly the propellers), or turboelectric (the turbines rotate electric generators, which in turn feed electric motors operating the propellers).

While steam turbine-driven merchant ships such as the "Algol"-class cargo ships (1972–1973), ALP Pacesetter-class container ships (1973–1974) and very large crude carriers were built until the 1970s, the use of steam for marine propulsion in the commercial market has declined dramatically due to the development of more efficient diesel engines. One notable exception are LNG carriers which use boil-off gas from the cargo tanks as fuel. However, even there the development of dual-fuel engines has pushed steam turbines into a niche market with about 10% market share in newbuildings in 2013. Lately, there has been some development in hybrid power plants where the steam turbine is used together with gas engines. As of August 2017 the newest class of Steam Turbine ships are the "Seri Camellia"-class LNG carriers built by Hyundai Heavy Industries (HHI) starting in 2016 and comprising five units.

Nuclear powered ships are basically steam turbine vessels. The boiler is heated, not by heat of combustion, but by the heat generated by nuclear reactor. Most atomic-powered ships today are either aircraft carriers or submarines.

Steamship generally refers to larger steam-powered ships, usually ocean-going, capable of carrying a (ship's) boat. The engine room, to the right, is a concept drawing during the construction of the ship. The term steam wheeler is archaic and rarely used. In England, "steam packet", after its sailing predecessor, was the usual term; even "steam barge" could be used (Steam tonnage in Lloyd's Register exceeded sailing ships tonnage by 1865). The French transatlantic steamer was probably the last of her type to be equipped with sails, although she never used them. Steamships in turn were overtaken by diesel-driven ships in the second half of the 20th century. Most warships used steam propulsion from the 1860s until the late 20th century

Steam-powered vessels

Steam-powered vessels include steamboats and steamships. Smaller steamboats were developed first. They were replaced by larger steamships which were often ocean-going. Steamships required a change in propulsion technology from sail to paddlewheel to screw to steam turbines. The latter innovation changed the design of vessels to one that could move faster through the water. Engine propulsion changed to steam turbine in the early 20th century. In the latter part of the 20th century, these, in turn, were replaced by gas turbines.

Screw-driven steamships generally carry the ship prefix "SS" before their names, meaning 'Steam Ship' (or 'Screw Steamer' i.e.'screw-driven steamship', or 'Screw Schooner' during the 1870s and 1880s, when sail was also carried), paddle steamers usually carry the prefix "PS" and steamships powered by steam turbine may be prefixed "TS" (turbine ship). The term "steamer" is occasionally used, out of nostalgia, for diesel motor-driven vessels, prefixed "MV".

Steam can be generated with the use of heat produced by nuclear fission within a nuclear reactor. Systems that incorporate nuclear components are found almost mostly onboard military vessels due to the regulations limiting distribution and ownership of the radioactive fuels used to power the plants. Nuclear systems present an additional danger due to the radioactivity of the fuel source and risk of reactor breach.

Most steam propulsion systems use a boiler to produce steam. The boiler burns fuel and then transfers the heat produced into circulating boiler water. Once the water is heated sufficiently it vaporizes into steam and can be used to power a steam engine that produces the mechanical energy that propels the ship.

Steam can be used to drive a high speed turbine that is connected through some means of transmission to the driving component of the vessel. These are more common on modern ships and were first used in 1897 on the steam ship Turbina. Nuclear ships almost always use a turbine to harness the energy of the steam that they produce. Steam Driven turbines can either be used to directly power the vessel by means of transmission and gearing to a propeller, or the turbine can be used to generate electricity that is then used to power electric propulsion motors.

A piston steam engine uses trapped steam to move a piston within a cylinder, whose linear motion is eventually converted into rotational motion with the use of a flywheel or some other means. There are many variations on this concept that have developed over the years, but the general concept can be explained as above.

This type of piston steam engine harnesses the steam that has been used to drive a piston within the engine and uses it to drive one or more additional pistons. This configuration offers increased engine efficiency by improving the force produced per unit of fuel consumed.

A paddle-wheel is a device used to transmit the power produced by the steam engine of the vessel to the surrounding water. The wheel functions by using buckets or paddles attached to the circumference of a rotating wheel that displace water with their movement, ultimately propelling the ship forward.

Also known as a propeller, a screw is a device that uses sloped surfaces to transition rotational motion created by the steam engine into an axial force that moves the vessel forward. Systems that use propellers are regarded as more efficient than comparative paddle-wheels due to the reduced weight of rotating components and smaller equipment footprint.

Early steam powered ships used both steam engines and the power of wind, like more traditional sailing ships. Ships such as these used paddle-wheels or screws to propel themselves when additional speed was necessary or wind conditions were not favorable.

Many steam-powered vessels have been commissioned by the military and equipped with weapons and various other equipment for the purpose of providing peacekeeping tools and a platform from which to operate international relations. Some types of steam turbine driven military vessels are long range submarines and aircraft carriers, although these ships can also be classified as nuclear powered vessels.

Steam ships were used to transport goods and personnel across oceans and within coastal areas. Steam powered tugboats were created for the purpose of manipulating larger vessels at within ports or areas with limited maneuverability. Steam vessels were a practical solution for the international transportation of people.

Many steam vessels have been built or fallen under the category of privately owned. These vessels can be luxury cruisers or decommissioned commercial vessels, especially now as the nostalgia value surrounding steam technology increases. Now steam vessels are not nearly as common as yachts with a more conventional power-train, mostly due to the scarcity and special knowledge required to operate and maintain these vessels.

High temperature steam can cause injury in humans on areas of exposed skin or by other means. Steam can cause burns through direct contact or by inhalation of vapors. Steam boilers also present an explosion hazard due to their high pressure contents. If over pressurization occurs and safety relief systems malfunction it is possible for a boiler to explode and cause damage to people and equipment surrounding it.

The RMS "Titanic" was the largest ocean-going passenger ship at the time of its creation in 1912. The ship sank only days into its maiden voyage from Queenstown in Ireland after it struck an iceberg and took on water, killing over 1,500 people.

The "Seawise Giant" supertanker was the largest steam-powered ship ever created and the largest ship ever built, before it was scrapped in 2010. It was over 450 meters in length.

The RMS "Lusitania" was a steam-propelled passenger vessel sunk off the Old Head of Kinsale, Ireland by a German U-Boat in 1915. The sinking of the "Lusitania" played a role in involving the United States with the developing World War.

The HMHS "Britannic" was a successor to the "Titanic", built as a luxury cruise liner. With the onset of World War I, the ship was drafted for wartime efforts and converted to a hospital ship. It was sunk in 1916 by a German naval mine.

The USS "Monitor was a tactically valuable ironclad Union warship built in 1862, used to gain naval supremacy against Confederate ironclads until it sank later that year. The ship was heavily armed with a single rotating turret at the center of the ship and had very little surface area above water.

Steamships played an important part in the history of CP from the very earliest days. During construction of the line in British Columbia even before the private CPR took over from the government contractor, ships were used to bring supplies to the construction sites. Similarly, to reach the isolated area of Superior in northern Ontario ships were used to bring in supplies to the construction work. While this work was going on there was already regular passenger service to the West. Trains operated from Toronto Owen Sound where CPR steamships connected to Fort William where trains once again operated to reach Winnipeg. Before the CPR was completed the only way to reach the West was through the United States via St. Paul and Winnipeg. This Great Lakes steam ship service continued as an alternative route for many years and was always operated by the railway. Canadian Pacific passenger service on the lakes ended in 1965.

Canadian Pacific Railway

The Canadian Pacific Railway (CPR), also known formerly as CP Rail between 1968 and 1996, is a historic Canadian Class I railroad incorporated in 1881. The railroad is owned by Canadian Pacific Railway Limited, which began operations as legal owner in a corporate restructuring in 2001.

Headquartered in Calgary, Alberta, it owns approximately of track all across Canada and into the United States, stretching from Montreal to Vancouver, and as far north as Edmonton. Its rail network also serves Minneapolis-St. Paul, Milwaukee, Detroit, Chicago, and New York City in the United States.

The railway was first built between eastern Canada and British Columbia between 1881 and 1885 (connecting with Ottawa Valley and Georgian Bay area lines built earlier), fulfilling a promise extended to British Columbia when it entered Confederation in 1871. It was Canada's first transcontinental railway, but no longer reaches the Atlantic coast. Primarily a freight railway, the CPR was for decades the only practical means of long-distance passenger transport in most regions of Canada, and was instrumental in the settlement and development of Western Canada. The CPR became one of the largest and most powerful companies in Canada, a position it held as late as 1975. Its primary passenger services were eliminated in 1986, after being assumed by Via Rail Canada in 1978. A beaver was chosen as the railway's logo in honor of Sir Donald A Smith (1st. Baron Strathcona and Mount Royal) who had risen from Factor to Governor of the Hudson's Bay Company over a lengthy career in the beaver fur trade. Smith was a principal financier of the C.P.R. staking much of his personal wealth. In 1885, he drove the last spike to complete the transcontinental line.

The company acquired two American lines in 2009: the Dakota, Minnesota and Eastern Railroad and the Iowa, Chicago and Eastern Railroad. The trackage of the IC&E was at one time part of CP subsidiary Soo Line and predecessor line The Milwaukee Road. The combined DME/ICE system spanned North Dakota, South Dakota, Minnesota, Wisconsin, Nebraska and Iowa, as well as two short stretches into two other states, which included a line to Kansas City, Missouri, and a line to Chicago, Illinois, and regulatory approval to build a line into the Powder River Basin of Wyoming. It is publicly traded on both the Toronto Stock Exchange and the New York Stock Exchange under the ticker CP. Its U.S. headquarters are in Minneapolis.

Together with the Canadian Confederation, the creation of the Canadian Pacific Railway was a task originally undertaken as the National Dream by the Conservative government of Prime Minister Sir John A. Macdonald (1st Canadian Ministry). He was helped by Sir Alexander Tilloch Galt, who was the owner of the North Western Coal and Navigation Company. British Columbia, a four-month sea voyage away from the East Coast, had insisted upon a land transport link to the East as a condition for joining Confederation (initially requesting a wagon road). The government however proposed to build a railway linking the Pacific province to the Eastern provinces within 10 years of 20 July 1871. Macdonald saw it as essential to the creation of a unified Canadian nation that would stretch across the continent. Moreover, manufacturing interests in Quebec and Ontario wanted access to raw materials and markets in Western Canada.
The first obstacle to its construction was political. The logical route went through the American Midwest and the city of Chicago, Illinois. In addition to this was the difficulty of building a railroad through the Canadian Rockies; an entirely Canadian route would require crossing of rugged terrain across the barren Canadian Shield and muskeg of Northern Ontario. To ensure this routing, the government offered huge incentives including vast grants of land in the West.

In 1873, Sir John A. Macdonald and other high-ranking politicians, bribed in the Pacific Scandal, granted federal contracts to Hugh Allan's Canada Pacific Railway Company (which was unrelated to the current company) rather than to David Lewis Macpherson's Inter-Ocean Railway Company which was thought to have connections to the American Northern Pacific Railway Company. Because of this scandal, the Conservative Party was removed from office in 1873. The new Liberal prime minister, Alexander Mackenzie, ordered construction of segments of the railway as a public enterprise under the supervision of the Department of Public Works led by Sandford Fleming. Surveying was carried out during the first years of a number of alternative routes in this virgin territory followed by construction of a telegraph along the lines that had been agreed upon. The Thunder Bay section linking Lake Superior to Winnipeg was commenced in 1875. By 1880, around was nearly complete, mainly across the troublesome Canadian Shield terrain, with trains running on only of track.

With Macdonald's return to power on 16 October 1878, a more aggressive construction policy was adopted. Macdonald confirmed that Port Moody would be the terminus of the transcontinental railway, and announced that the railway would follow the Fraser and Thompson rivers between Port Moody and Kamloops. In 1879, the federal government floated bonds in London and called for tenders to construct the section of the railway from Yale, British Columbia, to Savona's Ferry, on Kamloops Lake. The contract was awarded to Andrew Onderdonk, whose men started work on 15 May 1880. After the completion of that section, Onderdonk received contracts to build between Yale and Port Moody, and between Savona's Ferry and Eagle Pass.

On 21 October 1880, a new syndicate, unrelated to Hugh Allan's, signed a contract with the Macdonald government and Fleming was dismissed. They agreed to build the railway in exchange for $25 million (approximately $625 million in modern Canadian dollars) in credit from the Canadian government and a grant of of land. The government transferred to the new company those sections of the railway it had constructed under government ownership, on which it had already spent at least $25 million. But its estimates of the cost of the Rocky Mountain section alone was over $60 million. The government also defrayed surveying costs and exempted the railway from property taxes for 20 years. The Montreal-based syndicate officially comprised five men: George Stephen, James J. Hill, Duncan McIntyre, Richard B. Angus and John Stewart Kennedy. Donald A. Smith and Norman Kittson were unofficial silent partners with a significant financial interest. On 15 February 1881, legislation confirming the contract received royal assent, and the Canadian Pacific Railway Company was formally incorporated the next day. Critics claimed that the government gave too large a subsidy for the proposed project but this was to incorporate uncertainties of risk and irreversibility of insurance. The large subsidy also needed to compensate the CPR for not constructing the line in the future, but rather right away even though demand would not cover operational costs.

Building the railway took over four years. The Canadian Pacific Railway began its westward expansion from Bonfield, Ontario (previously called Callander Station), where the first spike was driven into a sunken railway tie. Bonfield was inducted into Canadian Railway Hall of Fame in 2002 as the CPR first spike location. That was the point where the Canada Central Railway extension ended. The CCR was owned by Duncan McIntyre, who amalgamated it with the CPR, and became one of the handful of officers of the newly formed CPR. The CCR started in Brockville and extended to Pembroke. It then followed a westward route along the Ottawa River passing through places like Cobden, Deux-Rivières and eventually to Mattawa at the confluence of the Mattawa and Ottawa rivers. It then proceeded cross-country towards its final destination of Bonfield. Duncan McIntyre and his contractor James Worthington piloted the CPR expansion. Worthington continued on as the construction superintendent for the CPR past Bonfield. He remained with the CPR for about a year after which he left the company. McIntyre was uncle to John Ferguson who staked out future North Bay and who became the town's wealthiest inhabitant and mayor for four successive terms.
It was presumed that the railway would travel through the rich "Fertile Belt" of the North Saskatchewan River Valley and cross the Rocky Mountains via the Yellowhead Pass, a route suggested by Sir Sandford Fleming based on a decade of work. However, the CPR quickly discarded this plan in favour of a more southerly route across the arid Palliser's Triangle in Saskatchewan and via Kicking Horse Pass and down the Field Hill to the Rocky Mountain Trench. This route was more direct and closer to the Canada–US border, making it easier for the CPR to keep American railways from encroaching on the Canadian market. However, this route also had several disadvantages.

One was that the CPR would need to find a route through the Selkirk Mountains in British Columbia while, at the time, it was not known whether a route even existed. The job of finding a pass was assigned to a surveyor named Major Albert Bowman Rogers. The CPR promised him a cheque for $5,000 and that the pass would be named in his honour. Rogers became obsessed with finding the pass that would immortalize his name. He discovered the pass in April 1881 and, true to its word, the CPR named it "Rogers Pass" and gave him the cheque. However, he at first refused to cash it, preferring to frame it, saying he did not do it for the money. He later agreed to cash it with the promise of an engraved watch.

Another obstacle was that the proposed route crossed land in Alberta that was controlled by the Blackfoot First Nation. This difficulty was overcome when a missionary priest, Albert Lacombe, persuaded the Blackfoot chief Crowfoot that construction of the railway was inevitable. In return for his assent, Crowfoot was famously rewarded with a lifetime pass to ride the CPR.

A more lasting consequence of the choice of route was that, unlike the one proposed by Fleming, the land surrounding the railway often proved too arid for successful agriculture. The CPR may have placed too much reliance on a report from naturalist John Macoun, who had crossed the prairies at a time of very high rainfall and had reported that the area was fertile.

The greatest disadvantage of the route was in Kicking Horse Pass, at the Alberta-British Columbia border on the continental divide. In the first west of the high summit, the Kicking Horse River drops. The steep drop would force the cash-strapped CPR to build a long stretch of track with a very steep 4 percent gradient once it reached the pass in 1884. This was over four times the maximum gradient recommended for railways of this era, and even modern railways rarely exceed a two-percent gradient. However, this route was far more direct than one through the Yellowhead Pass and saved hours for both passengers and freight. This section of track was the CPR's Big Hill. Safety switches were installed at several points, the speed limit for descending trains was set at 10 km per hour (6 mph), and special locomotives were ordered. Despite these measures, several serious runaways still occurred including the first locomotive, which belonged to the contractors, to descend the line. CPR officials insisted that this was a temporary expediency, but this state of affairs would last for 25 years until the completion of the Spiral Tunnels in the early 20th century.
In 1881, construction progressed at a pace too slow for the railway's officials who, in 1882, hired the renowned railway executive William Cornelius Van Horne to oversee construction with the inducement of a generous salary and the intriguing challenge of handling such a difficult railway project. Van Horne stated that he would have of main line built in 1882. Floods delayed the start of the construction season, but over of main line, as well as sidings and branch lines, were built that year. The Thunder Bay branch (west from Fort William) was completed in June 1882 by the Department of Railways and Canals and turned over to the company in May 1883, permitting all-Canadian lake and railway traffic from Eastern Canada to Winnipeg, for the first time in Canada's history. By the end of 1883, the railway had reached the Rocky Mountains, just eight kilometres (five miles) east of Kicking Horse Pass. The construction seasons of 1884 and 1885 would be spent in the mountains of British Columbia and on the north shore of Lake Superior.

Many thousands of navvies worked on the railway. Many were European immigrants. In British Columbia, government contractors hired workers from China, known as "coolies". A navvy received between $1 and $2.50 per day, but had to pay for his own food, clothing, transport to the job site, mail and medical care. After 2 months of hard labour, they could net as little as $16. Chinese labourers in British Columbia made only between 75 cents and $1.25 a day, paid in rice mats, and not including expenses, leaving barely anything to send home. They did the most dangerous construction jobs, such as working with explosives to clear tunnels through rock. The exact number of Chinese workers who died is unknown. The victims of sickness and accidents were not given proper funerals. Most of the remains were buried into the railroad and the families of the Chinese who were killed received no compensation, or even notification of loss of life. Many of the men who survived did not have enough money to return to their families in China, although Chinese labour contractors had promised that as part of their responsibilities. Many spent years in isolated and often poor conditions. Yet the Chinese were hard working and played a key role in building the Western stretch of the railway; even some boys as young as twelve years old served as tea-boys. In 2006, the Canadian government issued a formal apology to the Chinese population in Canada for their treatment both during and following the construction of the CPR.

By 1883, railway construction was progressing rapidly, but the CPR was in danger of running out of funds. In response, on 31 January 1884, the government passed the Railway Relief Bill, providing a further $22.5 million in loans to the CPR. The bill received royal assent on 6 March 1884.
In March 1885, the North-West Rebellion broke out in the District of Saskatchewan. Van Horne, in Ottawa at the time, suggested to the government that the CPR could transport troops to Qu'Appelle, Saskatchewan (Assiniboia) in 10 days. Some sections of track were incomplete or had not been used before, but the trip to Winnipeg was made in nine days and the rebellion quickly suppressed. Perhaps because the government was grateful for this service, they subsequently reorganized the CPR's debt and provided a further $5 million loan. This money was desperately needed by the CPR. However, this government loan later became controversial. Even with Van Horne's support with moving troops to Qu'Appelle, the government still delayed in giving its support to CPR. This was due to Sir John A. Macdonald putting pressure on George Stephen for additional benefits. Stephen himself later did admit to spending $1 million between 1881 and 1886 to ensure government support. This money went to buying a £40,000 necklace for Lady MacDonald and numerous other "bonifications" to government members.

On 7 November 1885, the last spike was driven at Craigellachie, British Columbia, making good on the original promise. Four days earlier, the last spike of the Lake Superior section was driven in just west of Jackfish, Ontario. While the railway was completed four years after the original 1881 deadline, it was completed more than five years ahead of the new date of 1891 that Macdonald gave in 1881. The successful construction of such a massive project, although troubled by delays and scandal, was considered an impressive feat of engineering and political will for a country with such a small population, limited capital, and difficult terrain. It was by far the longest railway ever constructed at the time. It had taken 12,000 men and 5,000 horses to construct the Lake section alone.

Meanwhile, in Eastern Canada, the CPR had created a network of lines reaching from Quebec City to St. Thomas, Ontario by 1885 (mainly by buying the Quebec, Montreal, Ottawa & Occidental Railway from the Quebec government), and had launched a fleet of Great Lakes ships to link its terminals. The CPR had effected purchases and long-term leases of several railways through an associated railway company, the Ontario and Quebec Railway (O&Q). The O&Q built a line between Perth, Ontario, and Toronto (completed on 5 May 1884) to connect these acquisitions. The CPR obtained a 999-year lease on the O&Q on 4 January 1884. In 1895, it acquired a minority interest in the Toronto, Hamilton and Buffalo Railway, giving it a link to New York and the Northeast United States.

The last spike in the CPR was driven on 7 November 1885, by one of its directors, Donald Smith, but so many cost-cutting shortcuts were taken in constructing the railway that regular transcontinental service could not start for another seven months while work was done to improve the railway's condition (part of this was because of snow in the mountains and lack of snowsheds to keep the line open). However, had these shortcuts not been taken, it is conceivable that the CPR might have had to default financially, leaving the railway unfinished.

The first transcontinental passenger train departed from Montreal's Dalhousie Station, located at Berri Street and Notre Dame Street at 8 pm on 28 June 1886, and arrived at Port Moody at noon on 4 July 1886. This train consisted of two baggage cars, a mail car, one second-class coach, two immigrant sleepers, two first-class coaches, two sleeping cars and a diner (several dining cars were used throughout the journey, as they were removed from the train during the night, with another one added the next morning).
By that time, however, the CPR had decided to move its western terminus from Port Moody to Granville, which was renamed "Vancouver" later that year. The first official train destined for Vancouver arrived on 23 May 1887, although the line had already been in use for three months. The CPR quickly became profitable, and all loans from the Federal government were repaid years ahead of time. In 1888, a branch line was opened between Sudbury and Sault Ste. Marie where the CPR connected with the American railway system and its own steamships. That same year, work was started on a line from London, Ontario, to the Canada–US border at Windsor, Ontario. That line opened on 12 June 1890.

The CPR also leased the New Brunswick Railway in 1891 for 991 years, and built the International Railway of Maine, connecting Montreal with Saint John, New Brunswick, in 1889. The connection with Saint John on the Atlantic coast made the CPR the first truly transcontinental railway company in Canada and permitted trans-Atlantic cargo and passenger services to continue year-round when sea ice in the Gulf of St. Lawrence closed the port of Montreal during the winter months. By 1896, competition with the Great Northern Railway for traffic in southern British Columbia forced the CPR to construct a second line across the province, south of the original line. Van Horne, now president of the CPR, asked for government aid, and the government agreed to provide around $3.6 million to construct a railway from Lethbridge, Alberta, through Crowsnest Pass to the south shore of Kootenay Lake, in exchange for the CPR agreeing to reduce freight rates in perpetuity for key commodities shipped in Western Canada.

The controversial Crowsnest Pass Agreement effectively locked the eastbound rate on grain products and westbound rates on certain "settlers' effects" at the 1897 level. Although temporarily suspended during the First World War, it was not until 1983 that the "Crow Rate" was permanently replaced by the "Western Grain Transportation Act" which allowed for the gradual increase of grain shipping prices. The Crowsnest Pass line opened on 18 June 1898, and followed a complicated route through the maze of valleys and passes in southern British Columbia, rejoining the original mainline at Hope after crossing the Cascade Mountains via Coquihalla Pass.

The Southern Mainline, generally known as the Kettle Valley Railway in British Columbia, was built in response to the booming mining and smelting economy in southern British Columbia, and the tendency of the local geography to encourage and enable easier access from neighbouring US states than from Vancouver or the rest of Canada, which was viewed to be as much of a threat to national security as it was to the province's control of its own resources. The local passenger service was re-routed to this new southerly line, which connected numerous emergent small cities across the region. Independent railways and subsidiaries that were eventually merged into the CPR in connection with this route were the Shuswap and Okanagan Railway, the Kaslo and Slocan Railway, the Columbia and Kootenay Railway, the Columbia and Western Railway and various others.

The CPR had built a railway that operated mostly in the wilderness. The usefulness of the prairies was questionable in the minds of many. The thinking prevailed that the prairies had great potential. Under the initial contract with the Canadian government to build the railway, the CPR was granted 25 million acres (100,000 km). Proving already to be a very resourceful organization, Canadian Pacific began an intense campaign to bring immigrants to Canada. Canadian Pacific agents operated in many overseas locations. Immigrants were often sold a package that included passage on a CP ship, travel on a CP train and land sold by the CP railway. Land was priced at $2.50 an acre and up but required cultivation. To transport immigrants, Canadian Pacific developed a fleet of over a thousand Colonist cars, low-budget sleeper cars designed to transport immigrant families from eastern Canadian seaports to the west.

During the first decade of the 20th century, the CPR continued to build more lines. In 1908, the CPR opened a line connecting Toronto with Sudbury. Previously, westbound traffic originating in southern Ontario took a circuitous route through eastern Ontario. Several operational improvements were also made to the railway in Western Canada. In 1909 the CPR completed two significant engineering accomplishments. The most significant was the replacement of the Big Hill, which had become a major bottleneck in the CPR's main line, with the Spiral Tunnels, reducing the grade to 2.2 percent from 4.5 percent. The Spiral Tunnels opened in August. In April 1908, the CPR started work to replace the Old Calgary-Edmonton Rail Bridge across the Red Deer River with a new standard steel bridge that was completed by March 1909.
On 3 November 1909, the Lethbridge Viaduct over the Oldman River valley at Lethbridge, Alberta, was opened. It is long and, at its maximum, high, making it one of the longest railway bridges in Canada. In 1916, the CPR replaced its line through Rogers Pass, which was prone to avalanches (the most serious of which killed 62 men in 1910) with the Connaught Tunnel, an eight-kilometre-long (5-mile) tunnel under Mount Macdonald that was, at the time of its opening, the longest railway tunnel in the Western Hemisphere.
On 21 January 1910, a passenger train derailed on the CPR line at the Spanish River bridge at Nairn, Ontario (near Sudbury), killing at least 43.

The CPR acquired several smaller railways via long-term leases in 1912. On 3 January 1912, the CPR acquired the Dominion Atlantic Railway, a railway that ran in western Nova Scotia. This acquisition gave the CPR a connection to Halifax, a significant port on the Atlantic Ocean. The Dominion Atlantic was isolated from the rest of the CPR network and used the CNR to facilitate interchange; the DAR also operated ferry services across the Bay of Fundy for passengers and cargo (but not rail cars) from the port of Digby, Nova Scotia, to the CPR at Saint John, New Brunswick. DAR steamships also provided connections for passengers and cargo between Yarmouth, Boston and New York. On 1 July 1912, the CPR acquired the Esquimalt and Nanaimo Railway, a railway on Vancouver Island that connected to the CPR using a railcar ferry. The CPR acquired the Quebec Central Railway on 14 December 1912.

During the late 19th century, the railway undertook an ambitious programme of hotel construction, building Glacier House in Glacier National Park, Mount Stephen House at Field, British Columbia, the Château Frontenac in Quebec City and the Banff Springs Hotel. By then, the CPR had competition from three other transcontinental lines, all of them money-losers. In 1919, these lines were consolidated, along with the track of the old Intercolonial Railway and its spurs, into the government-owned Canadian National Railways. The CPR suffered its greatest loss of life when one of its steamships, the "Empress of Ireland", sank after a collision with the Norwegian collier "SS Storstad." On 29 May 1914, the "Empress" (operated by the CPR's Canadian Pacific Steamship Company) went down in the St. Lawrence River with the loss of 1,024 lives, of which 840 were passengers.

During the First World War CPR put the entire resources of the "world's greatest travel system" at the disposal of the British Empire, not only trains and tracks, but also its ships, shops, hotels, telegraphs and, above all, its people. Aiding the war effort meant transporting and billeting troops; building and supplying arms and munitions; arming, lending and selling ships. Fifty-two CPR ships were pressed into service during World War I, carrying more than a million troops and passengers and four million tons of cargo. Twenty seven survived and returned to CPR. CPR also helped the war effort with money and jobs. CPR made loans and guarantees to the Allies of some $100 million. As a lasting tribute, CPR commissioned three statues and 23 memorial tablets to commemorate the efforts of those who fought and those who died in the war. After the war, the Federal government created Canadian National Railways (CNR, later CN) out of several bankrupt railways that fell into government hands during and after the war. CNR would become the main competitor to the CPR in Canada. In 1923, Henry Worth Thornton replaced David Blyth Hanna becoming the second president of the CNR, and his competition spurred Edward Wentworth Beatty, the first Canadian-born president of the CPR, to action. During this time the railway land grants were formalized.

The Great Depression, which lasted from 1929 until 1939, hit many companies heavily. While the CPR was affected, it was not affected to the extent of its rival CNR because it, unlike the CNR, was debt-free. The CPR scaled back on some of its passenger and freight services, and stopped issuing dividends to its shareholders after 1932. Hard times led to the creation of new political parties such as the Social Credit movement and the Cooperative Commonwealth Federation, as well as popular protest in the form of the On-to-Ottawa Trek.

One highlight of the late 1930s, both for the railway and for Canada, was the visit of King George VI and Queen Elizabeth during their 1939 royal tour of Canada, the first time that the reigning monarch had visited the country. The CPR and the CNR shared the honours of pulling the royal train across the country, with the CPR undertaking the westbound journey from Quebec City to Vancouver. Later that year, the Second World War began. As it had done in World War I, the CPR devoted much of its resources to the war effort. It retooled its Angus Shops in Montreal to produce Valentine tanks and other armoured vehicles, and transported troops and resources across the country. As well, 22 of the CPR's ships went to war, 12 of which were sunk.

After the Second World War, the transport industry in Canada changed. Where railways had previously provided almost universal freight and passenger services, cars, trucks and airplanes started to take traffic away from railways. This naturally helped the CPR's air and trucking operations, and the railway's freight operations continued to thrive hauling resource traffic and bulk commodities. However, passenger trains quickly became unprofitable. During the 1950s, the railway introduced new innovations in passenger service. In 1955, it introduced "The Canadian," a new luxury transcontinental train. However, in the 1960s, the company started to pull out of passenger services, ending services on many of its branch lines. It also discontinued its secondary transcontinental train "The Dominion" in 1966, and in 1970, unsuccessfully applied to discontinue "The Canadian". For the next eight years, it continued to apply to discontinue the service, and service on "The Canadian" declined markedly. On 29 October 1978, CP Rail transferred its passenger services to Via Rail, a new federal Crown corporation that is responsible for managing all intercity passenger service formerly handled by both CP Rail and CN. Via eventually took almost all of its passenger trains, including "The Canadian", off CP's lines.

In 1968, as part of a corporate reorganization, each of the CPR's major operations, including its rail operations, were organized as separate subsidiaries. The name of the railway was changed to CP Rail, and the parent company changed its name to Canadian Pacific Limited in 1971. Its air, express, telecommunications, hotel and real estate holdings were spun off, and ownership of all of the companies transferred to Canadian Pacific Investments. The slogan was: "TO THE FOUR CORNERS OF THE WORLD" The company discarded its beaver logo, adopting the new Multimark {which, when mirrored by an adjacent "multi-mark" creates a diamond appearance on a globe} that was used—with a different colour background—for each of its operations.

On 10 November 1979, a derailment of a hazardous materials train in Mississauga, Ontario, led to the evacuation of 200,000 people; there were no fatalities.

In 1984, CP Rail commenced construction of the Mount Macdonald Tunnel to augment the Connaught Tunnel under the Selkirk Mountains. The first revenue train passed through the tunnel in 1988. At 14.7 km (nine miles), it is the longest tunnel in the Americas. During the 1980s, the Soo Line Railroad, in which CP Rail still owned a controlling interest, underwent several changes. It acquired the Minneapolis, Northfield and Southern Railway in 1982. Then on 21 February 1985, the Soo Line obtained a controlling interest in the Milwaukee Road, merging it into its system on 1 January 1986. Also in 1980, Canadian Pacific bought out the controlling interests of the Toronto, Hamilton and Buffalo Railway (TH&B) from Conrail and molded it into the Canadian Pacific System, dissolving the TH&B's name from the books in 1985. In 1987, most of CPR's trackage in the Great Lakes region, including much of the original Soo Line, were spun off into a new railway, the Wisconsin Central, which was subsequently purchased by CN. Influenced by the Canada-U.S. Free Trade Agreement of 1989, which liberalized trade between the two nations, the CPR's expansion continued during the early 1990s: CP Rail gained full control of the Soo Line in 1990, and bought the Delaware and Hudson Railway in 1991. These two acquisitions gave CP Rail routes to the major American cities of Chicago (via the Soo Line) and New York City (via the D&H).

During the next few years CP Rail downsized its route, and several Canadian branch lines and even some secondary mainlines were either sold to short lines or abandoned. This rationalization, however, came at a price, as many grain elevators in the region known as Canada's Breadbasket shut down due to not being able to distribute their thousands of bushels of grain through a large enough region. This included all of its lines east of Montreal, with the routes operating across Maine and New Brunswick to the port of Saint John (operating as the Canadian Atlantic Railway) being sold or abandoned, severing CPR's transcontinental status (in Canada); the opening of the St. Lawrence Seaway in the late 1950s, coupled with subsidized icebreaking services, made Saint John surplus to CPR's requirements.

During the 1990s, both CP Rail and CN attempted unsuccessfully to buy out the eastern assets of the other, so as to permit further rationalization. In 1996, CP Rail moved its head office from Windsor Station in Montreal to Gulf Canada Square in Calgary, Alberta. CP consolidated most of its Canadian train control into the new office, creating the Network Management Centre (NMC). The NMC controlled all CP train movement from the Port of Vancouver to Northern Ontario (Mactier, Ontario). A smaller office was left at Windsor Station, which controlled train traffic from Mactier to the Port of Montreal.

In 1996, CP Rail moved its head office to Calgary from Montreal and changed its name back to Canadian Pacific Railway. A new subsidiary company, the St. Lawrence and Hudson Railway, was created to operate its money-losing lines in eastern North America, covering Quebec, Southern and Eastern Ontario, trackage rights to Chicago, Illinois, as well as the Delaware and Hudson Railway in the northeastern United States. However, the new subsidiary, threatened with being sold off and free to innovate, quickly spun off losing track to short lines, instituted scheduled freight service, and produced an unexpected turn-around in profitability. On 1 January 2001 the StL&H was formally amalgamated with the CP Rail system.

In 2001, the CPR's parent company, Canadian Pacific Limited, spun off its five subsidiaries, including the CPR, into independent companies. Most of the company's non-railway businesses at the time of the split were operated by a separate subsidiary called Canadian Pacific Limited. Canadian Pacific Railway formally (but, not legally) shortened its name to Canadian Pacific in early 2007, dropping the word "railway" in order to reflect more operational flexibility. Shortly after the name revision, Canadian Pacific announced that it had committed to becoming a major sponsor and logistics provider to the 2010 Olympic Winter Games in Vancouver.

On 4 September 2007, CPR announced it was acquiring the Dakota, Minnesota and Eastern Railroad from London-based Electra Private Equity. The transaction was an "end-to-end" consolidation and gave CPR access to United States shippers of agricultural products, ethanol and coal. CPR stated its intention to use this purchase to gain access to the rich coalfields of Wyoming's Powder River Basin. The purchase price was US$ 1.48 billion with future payments of over US$1 billion contingent on commencement of construction on the smaller railway's Powder River extension and specified volumes of coal shipments from the Powder River basin. The transaction was subject to approval of the U.S. Surface Transportation Board (STB), which was expected to take about a year. On 4 October 2007, CPR announced that it had completed financial transactions required for the acquisition, placing the DM&E and IC&E in a voting trust with Richard Hamlin appointed as trustee. The merger was completed as of 31 October 2008.

On 28 October 2011, in a 13D regulatory filing, the U.S. hedge fund Pershing Square Capital Management (PSCM) indicated it owned 12.2 percent of Canadian Pacific. PSCM began acquiring Canadian Pacific shares in 2011. The stake eventually increased to 14.2 percent, making PSCM the railway's largest shareholder. At a meeting with the company that month, Pershing's head Bill Ackman proposed replacing Fred Green as CP's chief executive. Just hours before the railway's annual shareholder meeting on Thursday, 17 May 2012, Green and five other board members, including chairman John Cleghorn, resigned. The seven nominees, including Ackman and his partner, Paul Hilal, were then elected. The reconstituted board, having named Stephen Tobias (former vice president and chief operating officer of Norfolk Southern Railroad) as interim CEO, initiated a search for a new CEO, eventually settling on E. Hunter Harrison, former President of CN Rail, on 29 June 2012.

Canadian Pacific Railway Ltd. trains resumed regular operations on 1 June 2012 after a nine-day strike by some 4,800 locomotive engineers, conductors and traffic controllers who walked off the job on 23 May, stalling Canadian freight traffic and costing the economy an estimated (). The strike ended with a government back-to-work bill forcing both sides to come to a binding agreement.

On 6 July 2013, a unit train of crude oil which CP had subcontracted to short-line operator Montreal, Maine and Atlantic Railway derailed in Lac-Mégantic, killing 47. On 14 August 2013, the Quebec government added the CPR, along with lessor World Fuel Services (WFS), to the list of corporate entities from which it seeks reimbursement for the environmental cleanup of the Lac-Megantic derailment. On 15 July, the press reported that CP would appeal the legal order. Railway spokesman Ed Greenberg stated "Canadian Pacific has reviewed the notice. As a matter of fact, in law, CP is not responsible for this cleanup." In February 2014, Harrison called for immediate action to phase-out DOT-111 tank cars, known to be more dangerous in cases of derailment.

On 12 October 2014 it was reported that Canadian Pacific had tried to enter into a merger with American Railway CSX, but was unsuccessful.

In 2015-16 Canadian Pacific sought to merge with American railway Norfolk Southern. and wanted to have a vote on it. Canadian Pacific created a website to persuade people that the Canadian Pacific/Norfolk Southern merger would benefit the rail industry. Canadian Pacific both filed a complaint against the Department of Justice and dropped their proposed proxy fight in the proposed merger with Norfolk Southern. On April 11, 2016, Canadian Pacific abandoned the proposed merger with Norfolk Southern after three offers were rejected by the NS' board.

United Parcel Service (UPS) spoke out about the rail merger and said they are against the Canadian Pacific/Norfolk Southern merger. CP terminated its efforts to merge on April 11, 2016. On January 18, 2017 it was announced that Hunter Harrison was retiring from CP and that Keith Creel would become President and Chief Executive Officer of the company effective January 31, 2017.

Canadian Pacific Railway's North Line, which runs from Edmonton to Winnipeg, a high capacity line, is connected to "all the key refining markets in North America." Chief Executive Hunter Harrison told the Wall Street Journal that Canadian Pacific planned to improve track along its North Line as part of a plan to ship Alberta oil east.

CPR COO Keith Creel said CPR was in a growth position in 2014 thanks to the increased Alberta crude oil, Western Canadian Select WCS, transport that will account for one-third of CPR's new revenue gains through 2018 "aided by improvements at oil-loading terminals and track in western Canada."

By 2014 Creel said the transport of Alberta's heavy crude oil would account for about 60% of the CP's oil revenues, and light crude from the Bakken Shale region in Saskatchewan and the U.S. state of North Dakota would account for 40%, the opposite of the ratios prior to the implementation of tougher regulations in both Canada and the United States that negatively affect the volatile, sensitive light sweet Bakken crude. Creel said that "It [WCS is] safer, less volatile and more profitable to move and we're uniquely positioned to connect to the West Coast as well as the East Coast."

Over half of CP's freight traffic is in grain (24% of 2016 freight revenue), intermodal freight (22%), and coal (10%) and the vast majority of its profits are made in western Canada. A major shift in trade from the Atlantic to the Pacific has caused serious drops in CPR's wheat shipments through Thunder Bay. It also ships chemicals and plastics (12% of 2016 revenue), automotive parts and assembled automobiles (6%), potash (6%), sulphur and other fertilizers (5%), forest products(5%), and various other products (11%). The busiest part of its railway network is along its main line between Calgary and Vancouver. Since 1970, coal has become a major commodity hauled by CPR. Coal is shipped in unit trains from coal mines in the mountains, most notably Sparwood, British Columbia to terminals at Roberts Bank and North Vancouver, from where it is then shipped to Japan. CP hauls millions of tonnes of coal to the west coast each year.

Grain is hauled by the CPR from the prairies to ports at Thunder Bay (the former cities of Fort William and Port Arthur), Quebec City and Vancouver, where it is then shipped overseas. The traditional winter export port was West Saint John, New Brunswick, when ice closed the St. Lawrence River. Grain has always been a significant commodity hauled by the CPR; between 1905 and 1909, the CPR double-tracked its section of track between Fort William, Ontario (part of present-day Thunder Bay) and Winnipeg to facilitate grain shipments. For several decades this was the only long stretch of double-track mainline outside of urban areas on the CPR. Today, though the Thunder Bay-Winnipeg section is now single tracked, the CPR still has two long distance double track lines serving rural areas, including a stretch between Kent, British Columbia and Vancouver which follows the Fraser River into the Coast Mountains, as well as the Canadian Pacific Winchester Sub, a stretch of double track mainline which runs from Smiths Falls, Ontario through downtown Montreal which runs through many rural farming communities. There are also various long stretches of double track between Golden and Kamloops, British Columbia, and portions of the original Winnipeg-Thunder Bay double track (such as through Kenora and Keewatin, Ontario) are still double track.

In 1952, the CPR became the first North American railway to introduce intermodal or "piggyback" freight service, where truck trailers
are carried on flat cars. Containers later replaced most piggyback service. In 1996, the CPR introduced a scheduled reservation-only short-haul intermodal service between Montreal and West Toronto called the "Iron Highway"; it utilized unique equipment that was later replaced (1999) by conventional piggyback flatcars and renamed "Expressway". This service was extended to Detroit with plans to reach Chicago however CP was unable to locate a suitable terminal.

The train was the primary mode of long-distance transport in Canada until the 1960s. Among the many types of people who rode CPR trains were new immigrants heading for the prairies, military troops (especially during the two world wars) and upper class tourists. It also custom-built many of its passenger cars at its CPR Angus Shops to be able to meet the demands of the upper class.
The CPR also had a line of Great Lakes ships integrated into its transcontinental service. From 1885 until 1912, these ships linked Owen Sound on Georgian Bay to Fort William. Following a major fire in December 1911 that destroyed the grain elevator, operations were relocated to a new, larger port created by the CPR at Port McNicoll opening in May 1912. Five ships allowed daily service, and included the S.S. "Assiniboia" and S.S. "Keewatin" built in 1908 which remained in use until the end of service. Travellers went by train from Toronto that Georgian Bay port, then travelled by ship to link with another train at the Lakehead. After World War II, the trains and ships carried automobiles as well as passengers. This service featured what was to become the last boat train in North America. The "Steam Boat" was a fast, direct connecting train between Toronto and Port McNicoll. The passenger service was discontinued at the end of season in 1965 with one ship, the "Keewatin", carrying on in freight service for two more years. It later became a marine museum at Douglas, Michigan in the United States, before returning to its original homeport of Port McNicoll, Canada in 2013.

After the Second World War, passenger traffic declined as automobiles and aeroplanes became more common, but the CPR continued to innovate in an attempt to keep passenger numbers up. Beginning 9 November 1953, the CPR introduced Budd Rail Diesel Cars (RDCs) on many of its lines. Officially called "Dayliners" by the CPR, they were always referred to as "Budd Cars" by employees. Greatly reduced travel times and reduced costs resulted, which saved service on many lines for a number of years. The CPR went on to acquire the second largest fleet of RDCs totalling 52 cars. Only the Boston and Maine Railroad had more. This CPR fleet also included the rare model RDC-4 (which consisted of a mail section at one end and a baggage section at the other end with no formal passenger section). On 24 April 1955, the CPR introduced a new luxury transcontinental passenger train, "The Canadian". The train provided service between Vancouver and Toronto or Montreal (east of Sudbury; the train was in two sections). The train, which operated on an expedited schedule, was pulled by diesel locomotives, and used new, streamlined, stainless steel rolling stock.

Starting in the 1960s, however, the railway started to discontinue much of its passenger service, particularly on its branch lines. For example, passenger service ended on its line through southern British Columbia and Crowsnest Pass in January 1964, and on its Quebec Central in April 1967, and the transcontinental train "The Dominion" was dropped in January 1966. On 29 October 1978, CP Rail transferred its passenger services to Via Rail, a new federal Crown corporation that was now responsible for intercity passenger services in Canada. Canadian Prime Minister Brian Mulroney presided over major cuts in Via Rail service on 15 January 1990. This ended service by "The Canadian" over CPR rails, and the train was rerouted on the former "Super Continental"route via Canadian National without a change of name. Where both trains had been daily prior to the 15 January 1990 cuts, the surviving "Canadian" was only a three-times-weekly operation. In October 2012, "The Canadian" was reduced to twice-weekly for the six-month off-season period, and currently operates three-times-weekly for only six months a year. In addition to inter-city passenger services, the CPR also provided commuter rail services in Montreal. CP Rail introduced Canada's first bi-level passenger cars here in 1970. On 1 October 1982, the Montreal Urban Community Transit Commission (STCUM) assumed responsibility for the commuter services previously provided by CP Rail. It continues under the Metropolitan Transportation Agency (AMT).
Canadian Pacific Railway currently operates two commuter services under contract. GO Transit contracts CPR to operate six return trips between Milton and central Toronto in Ontario. In Montreal, 59 daily commuter trains run on CPR lines from Lucien-L'Allier Station to Candiac, Hudson and Blainville–Saint-Jérôme on behalf of the AMT. CP no longer operates Vancouver's West Coast Express on behalf of TransLink, a regional transit authority. Bombardier Transportation assumed control of train operations on 5 May 2014. Although CP Rail no longer owns the track nor operates the commuter trains, it handles dispatching of two commuter rail lines: the Milwaukee District/North and Milwaukee District/West Lines, as part of Greater Chicago's Metra system. CP Rail continues freight service on these segments via trackage rights.

Sleeping cars were operated by a separate department of the railway that included the dining and parlour cars and aptly named as the Sleeping, Dining and Parlour Car Department. The CPR decided from the very beginning that it would operate its own sleeping cars, unlike railways in the United States that depended upon independent companies that specialized in providing cars and porters, including building the cars themselves. Pullman was long a famous name in this regard; its Pullman porters were legendary. Other early companies included the Wagner Palace Car Company. Bigger-sized berths and more comfortable surroundings were built by order of the CPR's General Manager, William Van Horne, who was a large man himself. Providing and operating their own cars allowed better control of the service provided as well as keeping all of the revenue received, although dining-car services were never profitable. But railroad managers realized that those who could afford to travel great distances expected such facilities, and their favourable opinion would bode well to attracting others to Canada and the CPR's trains.

W. C. Van Horne decided from the very beginning that the CPR would retain as much revenue from its various operations as it could. This translated into keeping express, telegraph, sleeping car and other lines of business for themselves, creating separate departments or companies as necessary. This was necessary as the fledgling railway would need all the income it could get, and in addition, he saw some of these ancillary operations such as express and telegraph as being quite profitable. Others such as sleeping and dining cars were kept in order to provide better control over the quality of service being provided to passengers. Hotels were likewise crucial to the CPR's growth by attracting travellers.

Dominion Express Company was formed independently in 1873 before the CPR itself, although train service did not begin until the summer of 1882 at which time it operated over some of track from Rat Portage (Kenora) Ontario west to Winnipeg, Manitoba. It was soon absorbed into the CPR and expanded everywhere the CPR went. It was renamed Canadian Express Company on 1 September 1926, and the headquarters moved from Winnipeg, to Toronto. It was operated as a separate company with the railway charging them to haul express cars on trains. Express was handled in separate cars, some with employees on board, on the headend of passenger trains to provide a fast scheduled service for which higher rates could be charged than for LCL (Less than Carload Lot), small shipments of freight which were subject to delay. Aside from all sorts of small shipments for all kinds of businesses such products as cream, butter, poultry and eggs were handled along with fresh flowers, fish and other sea foods some handled in separate refrigerated cars. Horses and livestock along with birds and small animals including prize cattle for exhibition were carried often in special horse cars that had facilities for grooms to ride with their animals.

Automobiles for individuals were also handled by express in closed boxcars. Gold and silver bullion as well as cash were carried in large amounts between the mint and banks and Express messengers were armed for security. Small business money shipments and valuables such as jewellery were routinely handled in small packets. Money orders and travellers' cheques were an important part of the express company's business and were used worldwide in the years before credit cards. Canadian Express Cartage Department was formed in March 1937 to handle pickup and delivery of most express shipments including less-than-carload freight. Their trucks were painted Killarney (dark) green while regular express company vehicles were painted bright red. Express routes using highway trucks beginning in November 1945 in southern Ontario and Alberta co-ordinated railway and highway service expanded service to better serve smaller locations especially on branchlines. Trucking operations would go on to expand across Canada making it an important transport provider for small shipments. Deregulation in the 1980s, however, changed everything and trucking services were ended after many attempts to change with the times.

Between the 1890s and 1933, the CPR transported raw silk from Vancouver, where it had been shipped from the Orient, to silk mills in New York and New Jersey. A silk train could carry several million dollars' worth of silk; so they had their own armed guards. To avoid train robberies and so minimize insurance costs, they travelled quickly and stopped only to change locomotives and crews, which was often done in under five minutes. The silk trains had superior rights over all other trains; even passenger trains (including the Royal Train of 1939) would be put in sidings to make the silk trains' trip faster. At the end of World War II, the invention of nylon made silk less valuable; so the silk trains died out.

Funeral trains would carry the remains of important people, such as prime ministers. As the train would pass, mourners would be at certain spots to show respect. Two of the CPR's funeral trains are particularly well-known. On 10 June 1891, the funeral train of Prime Minister Sir John A. Macdonald ran from Ottawa to Kingston, Ontario. The train consisted of five heavily draped passenger cars and was pulled by 4-4-0 No. 283. On 14 September 1915, the funeral train of former CPR president Sir William Cornelius Van Horne ran from Montreal to Joliet, Illinois, pulled by 4-6-2 No. 2213.

The CPR ran a number of trains that transported members of the Canadian Royal Family when they have toured the country. These trains transported royalty through Canada's scenery, forests, small towns and enabled people to see and greet them. Their trains were elegantly decorated; some had amenities such as a post office and barber shop. The CPR's most notable royal train was in 1939. In 1939, the CPR and the CNR had the honour of giving King George VI and Queen Elizabeth a rail tour of Canada, from Quebec City to Vancouver. This was the first visit to Canada by a reigning Monarch. The steam locomotives used to pull the train included CPR 2850, a Hudson (4-6-4) built by Montreal Locomotive Works in 1938, CNR 6400, a U-4-a Northern (4-8-4) and CNR 6028 a U-1-b Mountain (4-8-2) type. They were specially painted royal blue, with the exception of CNR 6028 which was not painted, with silver trim as was the entire train. The locomotives ran across Canada, through 25 changes of crew, without engine failure. The King, somewhat of a railbuff, rode in the cab when possible. After the tour, King George gave the CPR permission to use the term "Royal Hudson" for the CPR locomotives and to display Royal Crowns on their running boards. This applied only to the semi-streamlined locomotives (2820–2864), not the "standard" Hudsons (2800–2819).

CPR provided the rollingstock for the Better Farming Train which toured rural Saskatchewan between 1914 and 1922 to promote the latest information on agricultural research. It was staffed by the University of Saskatchewan and operating expenses were covered by the Department of Agriculture.

Between 1927 and the early 1950s, the CPR ran a school car to reach people who lived in Northern Ontario, far from schools. A teacher would travel in a specially designed car to remote areas and would stay to teach in one area for two to three days, then leave for another area. Each car had a blackboard and a few sets of chairs and desks. They also contained miniature libraries and accommodation for the teacher.

Major shooting for the 1976 film "Silver Streak", a fictional comedy tale of a murder-infested train trip from Los Angeles to Chicago, was done on the CPR, mainly in the Alberta area with station footage at Toronto's Union Station. The train set was so lightly disguised as the fictional "AMRoad" that the locomotives and cars still carried their original names and numbers, along with the easily identifiable CP Rail red-striped paint scheme. Most of the cars are still in revenue service on Via Rail Canada; the lead locomotive (CP 4070) and the second unit (CP 4067) were sold to Via Rail and CTCUM respectively.

Starting in 1999, CP runs a Holiday Train along its main line during the months of November and December. The Holiday Train celebrates the holiday season and collects donations for community food banks and hunger issues. The Holiday Train also provides publicity for CP and a few of its customers. Each train has a box car stage for entertainers who are travelling along with the train.

The train is a freight train, but also pulls vintage passenger cars which are used as lodging/transportation for the crew and entertainers. Only entertainers and CP employees are allowed to board the train aside from a coach car that takes employees and their families from one stop to the next. All donations collected in a community remain in that community for distribution.

There are two Holiday Trains that cover 150 stops in Canada and the United States Northeast and Midwest. Each train is roughly in length with brightly decorated railway cars, including a modified box car that has been turned into a travelling stage for performers. They are each decorated with hundred of thousands of LED Christmas lights. In 2013 to celebrate the program's 15th year, three signature events were held in Hamilton, Ontario, Calgary, Alberta, and Cottage Grove, Minnesota, to further raise awareness for hunger issues.
The trains feature different entertainers each year; in 2016, one train featured Dallas Smith and the Odds, while the other featured Colin James and Kelly Prescott. After its 20th anniversary tour in 2018, which hosted Terri Clark, Sam Roberts Band, The Trews and Willy Porter, the tour reported to have raised more than and collected more than of food since 1999..

On 7 June 2000, the CPR inaugurated the Royal Canadian Pacific, a luxury excursion service that operates between the months of June and September. It operates along a route from Calgary, through the Columbia Valley in British Columbia, and returning to Calgary via Crowsnest Pass. The trip takes six days and five nights. The train consists of up to eight luxury passenger cars built between 1916 and 1931 and is powered by first-generation diesel locomotives.

In 1998, the CPR repatriated one of its former passenger steam locomotives that had been on static display in the United States following its sale in January 1964, long after the close of the steam era. CPR Hudson 2816 was re-designated "Empress 2816" following a 30-month restoration that cost in excess of $1 million. It was subsequently returned to service to promote public relations. It has operated across much of the CPR system, including lines in the U.S. and been used for various charitable purposes; 100% of the money raised goes to the nationwide charity Breakfast for Learning — the CPR bears all of the expenses associated with the operation of the train. 2816 is the subject of "Rocky Mountain Express", a 2011 IMAX film which follows the locomotive on an eastbound journey beginning in Vancouver, and which tells the story of the building of the CPR.

In 2008, Canadian Pacific partnered with the 2010 Olympic and Paralympic Winter Games to present a "Spirit Train" tour that featured Olympic-themed events at various stops. Colin James was a headline entertainer. Several stops were met by protesters who argued that the games were slated to take place on stolen indigenous land.

In 2017, CP ran the CP Canada 150 Train from Port Moody to Ottawa to celebrate Canada's 150th year since Confederation. The train stopped in 13 cities along its 3-week summer tour, offering a free block party and concert from Dean Brody, Kelly Prescott and Dallas Arcand. The heritage train drew out thousands to sign the special "Spirit of Tomorrow" car, where children were invited to write their wishes for the future of Canada and send them to Ottawa. Prime Minister Justin Trudeau and daughter Ella-Grace Trudeau also visited the train and rode it from Revelstoke to Calgary.

Historically, Canadian Pacific operated several non-railway businesses. In 1971, these businesses were split off into the separate company Canadian Pacific Limited, and in 2001, that company was further split into five companies. CP no longer provides any of these services.

The original charter of the CPR granted in 1881 provided for the right to create an electric telegraph and telephone service including charging for it. The telephone had barely been invented but telegraph was well established as a means of communicating quickly across great distances. Being allowed to sell this service meant the railway could offset the costs of constructing and maintaining a pole line along its tracks across vast distances for its own purposes which were largely for dispatching trains. It began doing so in 1882 as the separate Telegraph Department. It would go on to provide a link between the cables under the Atlantic and Pacific oceans when they were completed. Before the CPR line, messages to the west could be sent only via the United States.

Paid for by the word, the telegram was an expensive way to send messages, but they were vital to businesses. An individual receiving a personal telegram was seen as being someone important except for those that transmitted sorrow in the form of death notices. Messengers on bicycles delivered telegrams and picked up a reply in cities. In smaller locations, the local railway station agent would handle this on a commission basis. To speed things, at the local end messages would first be telephoned. In 1931, it became the Communications Department in recognition of the expanding services provided which included telephones lines, news wire, ticker quotations for the stock market and eventually teleprinters. All were faster than mail and very important to business and the public alike for many decades before mobile phones and computers came along. It was the coming of these newer technologies especially cellular telephones that eventually resulted in the demise of these services even after formation in 1967 of CN-CP Telecommunications in an effort to effect efficiencies through consolidation rather than competition. Deregulation in the 1980s, brought about mergers and the sale of remaining services and facilities.

On 17 January 1930, the CPR applied for licences to operate radio stations in 11 cities from coast to coast for the purpose of organising its own radio network in order to compete with the CNR Radio service. The CNR had built a radio network with the aim of promoting itself as well as entertaining its passengers during their travels. The onset of the Great Depression hurt the CPR's financial plan for a rival project and in April they withdrew their applications for stations in all but Toronto, Montreal and Winnipeg. CPR did not end up pursuing these applications but instead operated a phantom station in Toronto known as "CPRY," with initials standing for "Canadian Pacific Royal York" which operated out of studios at CP's Royal York Hotel and leased time on CFRB and CKGW. A network of affiliates carried the CPR radio network's broadcasts in the first half of the 1930s, but the takeover of CNR's Radio service by the new Canadian Radio Broadcasting Commission removed CPR's need to have a network for competitive reasons and CPR's radio service was discontinued in 1935.

In 1884, CPR began purchasing sailing ships as part of a railway supply service on the Great Lakes. Over time, CPR became a railroad company with widely organized water transportation auxiliaries including the Great Lakes service, the trans-Pacific service, the Pacific coastal service, the British Columbia lake and river service, the trans-Atlantic service and the Bay of Fundy Ferry service. In the 20th century, the company evolved into an intercontinental railway which operated two transoceanic services which connected Canada with Europe and with Asia. The range of CPR services were aspects of an integrated plan.
Once the railway was completed to British Columbia, the CPR chartered and soon bought their own passenger steamships as a link to the Orient. These sleek steamships were of the latest design and christened with "Empress" names (e. g., RMS "Empress of Britain", "Empress of Canada", "Empress of Australia", and so forth). Travel to and from the Orient and cargo, especially imported tea and silk, were an important source of revenue, aided by Royal Mail contracts. This was an important part of the All-Red Route linking the various parts of the British Empire.

The other ocean part was the Atlantic service to and from the United Kingdom, which began with acquisition of two existing lines, Beaver Line, owned by Elder Dempster and Allan Lines. These two segments became Canadian Pacific Ocean Services (later, Canadian Pacific Steamships) and operated separately from the various lake services operated in Canada, which were considered to be a direct part of the railway's operations. These trans-ocean routes made it possible to travel from Britain to Hong Kong using only the CPR's ships, trains and hotels. CP's 'Empress' ships became world-famous for their luxury and speed. They had a practical role, too, in transporting immigrants from much of Europe to Canada, especially to populate the vast prairies. They also played an important role in both world wars with many of them being lost to enemy action, including "Empress of Britain".

There were also a number of rail ferries operated over the years as well including, between Windsor, Ontario and Detroit from 1890 until 1915. This began with two paddle-wheelers capable of carrying 16 cars. Passenger cars were carried as well as freight. This service ended in 1915 when the CPR made an agreement with the Michigan Central to use their Detroit River tunnel opened in 1910. Pennsylvania-Ontario Transportation Company was formed jointly with the PRR in 1906 to operate a ferry across Lake Erie between Ashtabula, Ohio and Port Burwell, Ontario to carry freight cars, mostly of coal, much of it to be burned in CPR steam locomotives. Only one ferry boat was ever operated, "Ashtabula", a large vessel which eventually sank in a harbour collision in Ashtabula on 18 September 1958, thus ending the service.

Canadian Pacific Car and Passenger Transfer Company was formed by other interest in 1888 linking the CPR in Prescott, Ontario, and the NYC in Ogdensburg, New York. Service on this route had actually begun very early, in 1854, along with service from Brockville. A bridge built in 1958 ended passenger service however, freight continued until Ogdensburg's dock was destroyed by fire 25 September 1970, thus ending all service. CPC&PTC was never owned by the CPR. Bay of Fundy ferry service was operated for passengers and freight for many years linking Digby, Nova Scotia, and Saint John, New Brunswick. Eventually, after 78 years, with the changing times the scheduled passenger services would all be ended as well as ocean cruises. Cargo would continue on both oceans with a change over to containers. CP was an intermodal pioneer especially on land with road and railway mixing to provide the best service. CP Ships was the final operation, and in the end it too left CP ownership when it was spun off in 2001. CP Ships was merged with Hapag-Lloyd in 2005.

The Canadian Pacific Railway Coast Service (British Columbia Coast Steamships or BCCS) was established when the CPR acquired in 1901 Canadian Pacific Navigation Company (no relation) and its large fleet of ships that served 72 ports along the coast of British Columbia including on Vancouver Island. Service included the Vancouver-Victoria-Seattle "Triangle Route", Gulf Islands, Powell River, as well as Vancouver-Alaska service. BCCS operated a fleet of 14 passenger ships made up of a number of "Princess" ships, pocket versions of the famous oceangoing "Empress" ships along with a freighter, three tugs and five railway car barges. Popular with tourists, the Princess ships were famous in their own right especially "Princess Marguerite" (II) which operated from 1949 until 1985 and was the last coastal liner in operation. The best known of the princess ships, however, is "Princess Sophia", which sank with no survivors in October 1918 after striking the Vanderbilt Reef in Alaska's Lynn Canal, constituting the largest maritime disaster in the history of the Pacific Northwest. These services continued for many years until changing conditions in the late 1950s brought about their decline and eventual demise at the end of season in 1974. "Princess Marguerite" was acquired by the province's British Columbia Steamship (1975) Ltd. and continued to operate for a number of years. In 1977 although BCCSS was the legal name, it was rebranded as Coastal Marine Operations (CMO). By 1998 the company was bought by the Washington Marine Group which after purchase was renamed Seaspan Coastal Intermodal Company and then subsequently rebranded in 2011 as Seaspan Ferries Corporation. Passenger service ended in 1981.

The Canadian Pacific Railway Lake and River Service (British Columbia Lake and River Service) developed slowly and in spurts of growth. CP began a long history of service in the Kootenays region of southern British Columbia beginning with the purchase in 1897 of the Columbia and Kootenay Steam Navigation Company which operated a fleet of steamers and barges on the Arrow Lakes and was merged into the CPR as the CPR Lake and River Service which also served the Arrow Lakes and Columbia River, Kootenay Lake and Kootenai River, Lake Okanagan and Skaha Lake, Slocan Lake, Trout Lake, and Shuswap Lake and the Thompson River/Kamloops Lake.

All of these lake operations had one thing in common, the need for shallow draft therefore sternwheelers were the choice of ship. Tugs and barges handled railway equipment including one operation that saw the entire train including the locomotive and caboose go along. These services gradually declined and ended in 1975 except for a freight barge on Slocan Lake. This was the one where the entire train went along since the barge was a link to an isolated section of track. The "Iris G" tug boat and a barge were operated under contract to CP Rail until the last train ran late in December 1988. The sternwheel steamship "Moyie" on Kootenay Lake was the last CPR passenger boat in BC lake service, having operated from 1898 until 1957. She became a beached historical exhibit, as are also the "Sicamous" and "Naramata" at Penticton on Lake Okanagan.

To promote tourism and passenger ridership the Canadian Pacific established a series of first class hotels. These hotels became landmarks famous in their own right. They include the Algonquin in St. Andrews, Château Frontenac in Quebec, Royal York in Toronto, Minaki Lodge in Minaki Ontario, Hotel Vancouver, Empress Hotel in Victoria and the Banff Springs Hotel and Chateau Lake Louise in the Canadian Rockies. Several signature hotels were acquired from its competitor Canadian National during the 1980s, including the Jasper Park Lodge. The hotels retain their Canadian Pacific heritage, but are no longer operated by the railroad. In 1998, Canadian Pacific Hotels acquired Fairmont Hotels, an American company, becoming Fairmont Hotels and Resorts, Inc.; the combined corporation operated the historic Canadian properties as well as the Fairmont's U.S. properties until merged with Raffles Hotels and Resorts and Swissôtel in 2006.

Canadian Pacific Airlines, also called CP Air, operated from 1942 to 1987 and was the main competitor of Canadian government-owned Air Canada. Based at Vancouver International Airport, it served Canadian and international routes until it was purchased by Pacific Western Airlines which merged PWA and CP Air to create Canadian Airlines.

In the CPR's early years, it made extensive use of American-type 4-4-0 steam locomotives, and an example of this is the "Countess of Dufferin". Later, considerable use was also made of the 4-6-0 type for passenger and 2-8-0 type for freight. Starting in the 20th century, the CPR bought and built hundreds of Ten-Wheeler-type 4-6-0s for passenger and freight service and similar quantities of 2-8-0s and 2-10-2s for freight. 2-10-2s were also used in passenger service on mountain routes. The CPR bought hundreds of 4-6-2 Pacifics between 1906 and 1948 with later versions being true dual-purpose passenger and fast-freight locomotives.

The CPR built hundreds of its own locomotives at its shops in Montreal, first at the "New Shops", as the DeLorimer shops were commonly referred to, and at the massive Angus Shops that replaced them in 1904. Some of the CPR's best-known locomotives were the 4-6-4 Hudsons. First built in 1929, they began a new era of modern locomotives with capabilities that changed how transcontinental passenger trains ran, eliminating frequent changes en route. What once took 24 changes of engines in 1886, all of them 4-4-0s except for two of 2-8-0s in the mountains, for between Montreal and Vancouver became 8 changes. The 2800s, as the Hudson type was known, ran from Toronto to Fort William, a distance of, while another lengthy engine district was from Winnipeg to Calgary.
Especially notable were the semi-streamlined H1 class Royal Hudsons, locomotives that were given their name because one of their class hauled the royal train carrying King George VI and Queen Elizabeth on the 1939 royal tour across Canada without change or failure. That locomotive, No. 2850, is preserved in the Exporail exhibit hall of the Canadian Railway Museum in Saint-Constant, Quebec. One of the class, No. 2860, was restored by the British Columbia government and used in excursion service on the British Columbia Railway between 1974 and 1999.

The CPR also made many of their older 2-8-0s, built in the turn of the century, into 2-8-2s.

In 1929, the CPR received its first 2-10-4 Selkirk locomotives, the largest steam locomotives to run in Canada and the British Empire. Named after the Selkirk Mountains where they served, these locomotives were well suited for steep grades. They were regularly used in passenger and freight service. The CPR would own 37 of these locomotives, including number 8000, an experimental high pressure engine. The last steam locomotives that the CPR received, in 1949, were Selkirks, numbered 5930–5935.

In 1937, the CPR acquired its first diesel-electric locomotive, a custom-built one-of-a-kind switcher numbered 7000. This locomotive was not successful and was not repeated. Production-model diesels were imported from American Locomotive Company (Alco) starting with five model S-2 yard switchers in 1943 and followed by further orders. In 1949, operations on lines in Vermont were dieselized with Alco FA1 road locomotives (eight A and four B units), five ALCO RS-2 road switchers, three Alco S-2 switchers and three EMD E8 passenger locomotives. In 1948 Montreal Locomotive Works began production of ALCO designs.

In 1949, the CPR acquired 13 Baldwin-designed locomotives from the Canadian Locomotive Company for its isolated Esquimalt and Nanaimo Railway and Vancouver Island was quickly dieselized. Following that successful experiment, the CPR started to dieselize its main network. Dieselization was completed 11 years later, with its last steam locomotive running on 6 November 1960. The CPR's first-generation locomotives were mostly made by General Motors Diesel and Montreal Locomotive Works (American Locomotive Company designs), with some made by the Canadian Locomotive Company to Baldwin and Fairbanks Morse designs.

CP was the first railway in North America to pioneer AC traction diesel-electric locomotives, in 1984. In 1995 CP turned to GE Transportation Systems for the first production AC traction locomotives in Canada, and now has the highest percentage of AC locomotives in service of all North American Class I railways.

The fleet includes these types:

Canadian Pacific Railway Limited ( ) is a Canadian railway transportation company that operates the Canadian Pacific Railway. It was created in 2001 when the CPR's former parent company, Canadian Pacific Limited, spun off its railway operations. On 3 October 2001, the company's shares began to trade on the New York Stock Exchange and the Toronto Stock Exchange under the "CP" symbol. During 2003, the company earned $C3.5 billion in freight revenue. In October 2008, Canadian Pacific Railway Ltd was named one of "Canada's Top 100 Employers" by Mediacorp Canada Inc., and was featured in "Maclean's". Later that month, CPR was named one of Alberta's Top Employers, which was reported in both the "Calgary Herald" and the "Edmonton Journal".

CP owns a large number of large yards and repair shops across their system, which are used for many operations ranging from intermodal terminals to classification yards. Below are some examples of these.

Hump yards work by using a small hill over which cars are pushed, before being released down a slope and switched automatically into cuts of cars, ready to be made into outbound trains. Many of these yards were closed in 2012 and 2013 under Hunter Harrison's company-wide restructuring; only the St. Paul Yard hump remains open.