Early railroads in Canada were mainly for shortline and were developed for transportation all year round, so when the canals and rivers were frozen there was still a way to get around. The development in railroads in Canada increased economic activity both in production of products and transportation of natural resources but also in the financial world as money needed to be raised to invest in railways. The cost of railway construction was great for governments who had supported the railroads with money, grants of land, and this caused
great financial difficulties for these governments. More positive economic impact from railways came from the development of new territory both in agriculture and forestry. As the country became more industrialized railways were used to carry raw materials to factories and then used to ship finished goods to markets throughout the country. Railways became a huge source of employment for workers on trains and for people who worked for centres. Economic benefits from the growth of railways are the growth of hotels and businesses that were found close to the stations and railway yards. The railways also provided a cheaper method of transportation to haul goods, the raw materials transported to factories and the manufactured goods to markets. The cheaper method for transportation also allowed for a growth in industrial development in Canada. The Development of the railways in Canada brought the formation of the country together.
The railways united the Maritime colonies within the Canadian colonies, and later it was railways that brought British Columbia into Confederation, as railways developed across the country the whole of British North America was united into a common country. The railroads themselves created economic growth with new jobs and a need for steel and coal, they also provided transportation of raw and manufactured goods which allowed for the development of industry in Canada. It was the development of the railway in Canada that brought the formation of the country together.