The company was incorporated on November 10, 1852, as the Grand Trunk Railway Company of Canada to build a railway line between Montreal and Toronto.[2]
The charter was soon extended east to Portland, Maine and west to Sarnia, Canada West. In 1853 the GTR purchased the St. Lawrence and Atlantic Railroad from Montreal to the Canada East – Vermont border, and the parent company Atlantic and St. Lawrence Railroad through to the harbour facilities at Portland. A line was also built to Lévis, via Richmond from Montreal in 1855, part of the much-talked about "Maritime connection" in British North America. In the same year it purchased the Toronto and Guelph Railroad, whose railway was already under construction. But the Grand Trunk Railway Company changed the original route of the T&G and extended the line to Sarnia, a hub for Chicago-bound traffic. By July, 1856, the section from Sarnia to Toronto opened, and the section from Montreal to Toronto opened in October of that year. By 1859 a ferry service was established across the St. Clair River to Fort Gratiot (now Port Huron, Michigan).[2]
The Grand Trunk was one of the main factors that pushed British North America towards Confederation. The original colonial economy structured along the water route from the Maritimes up the St. Lawrence River and the lower Great Lakes was greatly expanded by the duplicate route of the Grand Trunk. The explosive growth in trade during the 1850s within the United Province of Canada and further east by water to the Maritimes demanded that a railway link the entire geopolitical region together. During this time the GTR extended its line to Lévis further east to Rivière-du-Loup.
Grand Trunk's Bonaventure Station, Montreal, 1900s
By 1860, the Grand Trunk was on the verge of bankruptcy and in no position to expand further east to Halifax. On the eve of the American Civil War, it stretched from Sarnia in the west to Rivière-du-Loup in the east and Portland in the southeast. Colonists in the United Province of Canada, some of whom had experienced their territory being attacked by the United States fifty years earlier (in the War of 1812), were uncomfortably close to the giant Union Army and faced terrorist attacks during the mid-19th century in the form of Fenian raids.
Such security concerns led to demands for a year-round transportation system that British reinforcements could use should their territory be attacked during winter when the St. Lawrence River was frozen, and the only railway for British reinforcements to use would be the Grand Trunk connection at Portland, in the United States. Many citizens thought that the only way to finish the Grand Trunk – and protect the country – would be to unite all the colonies into a federation so that they could share the costs of an expanded railway system. Thus the British North America Act, 1867 included the provision for an Intercolonial Railway to link with the Grand Trunk at Rivière-du-Loup.
Group of men working on GTR construction, Glengarry County, Ontario, between 1895 and 1910
The end of the American Civil War saw British North America on the verge of uniting in a single federation, and the GTR's financial prospects improved as the railway was well-positioned to take advantage of increased population and economic growth. By 1867, it had become the largest railroad system in the world by accumulating more than 2,055 km (1,277 mi) of track that connected locations between its ocean port at Portland, Maine, its river port at Rivière-du-Loup, the three northern New England states, and much of the southern areas of the new provinces of Quebec and Ontario. By 1880, the Grand Trunk Railway system stretched all the way from Portland in the east to Chicago, Illinois, in the west (by means of the Grand Trunk Western Railroad between Port Huron and Chicago).
Several impressive construction feats were associated with the GTR: the first successful bridging of the St. Lawrence River on August 25, 1860, with the opening of the first Victoria Bridge at Montreal (replaced by the present structure in 1898); the bridging of the Niagara River between Fort Erie, Ontario and Buffalo, New York; and the construction of a tunnel beneath the St. Clair River, connecting Sarnia, Ontario, and Port Huron, Michigan. The latter work opened in August 1890 and replaced the railcar ferry at the same location.