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As Canada's largest railway system, Canadian National's rail network spans the nation and serves all of Canada's major ports, and includes strategic connections into the United States. Founded originally with the dual premise of being a commercial business and an instrument of government, Canadian National grew with the nation. Having been transformed from a Crown corporation into a private sector entity, Canadian National now operates as an investor-owned railway.

In the period from 1850 to 1915, more than 56,000 kilometres of track were laid across Canada and operated by various independent railway companies. However, in 1919 the federal government assumed control of a number the individual rail lines across the country, many of which were in debt to the government itself, and Parliament passed an Act incorporating the Canadian National Railway Company. It doing so it created one of the largest railways in the world, with approximately 108,000 employees, and with 35,000 kilometres of tracks in addition to telegraph lines, hotels (built to provide first-class accommodations en route), steamships, barges, and tugs.

By 1923 the basic groundwork of consolidation had been completed, with the CNR harmonizing the various activities of the separate rail networks that comprised the Crown corporation. In the 1920s the CNR also established the first radio network in Canada; eventually, this network became a separate company, the forerunner of today's Canadian Broadcasting Corporation.

Also during the 1920s the CNR launched a fleet of passenger ships that sailed between Canada's east coast and the Caribbean. Subsequently, as aircraft began to carry more and more passengers, mail and cargo by the mid 1930s, the Canadian government incorporated Trans-Canada Air Lines, as part of the CNR. (This airline later became Air Canada.) During World War II, CNR traffic doubled, and by 1942 it was moving an average of 138 tons of freight every minute of every day, seven days a week. When Newfoundland entered Confederation in 1949, the CNR was given the added responsibility of operating the rail network in that province also.

During the post-war period, railways were faced with new competition from trucks and private passenger vehicles. In response, CNR modernized its operations, and began to convert its locomotive fleet from steam to diesel. In 1957 its marine freight service came to an end, although it continued to operate its marine passenger service.

In 1961 the company's name was shortened to Canadian National and the familiar CN logo was adopted. The 1970s saw a reorganization of the many components that comprised CN. The various branches of the company, such as hotels and telecommunications, became individual profit centres and the passenger train service was entrusted to a new Crown corporation, VIA Rail.

In the 1980s and early 1990s, faced with the fact that 90 per cent of CN's traffic was carried on only 33 per cent of its rail network, the company implemented a cost-driven turnaround. To enable CN to concentrate on its core activity of rail service more fully, the company sold all non-rail assets, including the CN Tower, and successfully rationalized its rail network by 14 per cent.

In 1995, after 76 years of ownership by the Canadian government, Canadian National was transformed into an investor-owned company in the single largest initial public share offering in Canadian history. The railway now operates 17,000 route miles of track in Canada and the United States. As Canadian National looks to the future, its goal is to become North America’s preeminent railway and to continue providing its customers with the service they have come to expect and rely on.