In 1886, the NB&PEI was tasked with extended the Intercolonial Railway from Sackville, NB to Cape Tormentine, PEI. The rail line reached Cape Tormentine by September 9, 1886.
On August 1, 1914 the NB&PEI became part of the Canadian Government Railways.
In 1919 the line was extended from Cape Tormentine to the Prince Edward Island Ferry Terminal to link up with year-round ferry service from Cape Tormentine to Borden.
On January 20, 1923 this line together with many others became part of Canadian National. It became known as the Tormentine Subdivision.
CN applied to abandon portions of the railway on PEI between 1972 and 1983, but the Canadian Transport Commission ordered their continuance. On January 1, 1988 the National Transportation Act came into effect and CN's original abandonment requests were reconsidered. On December 6, 1988 CN applied to the National Transportation Agency to abandon the Borden (PEI), Kensington (PEI) and Tormentine (NB) Subdivisions.
CN contended that their break-even point of traffic was 3144 carloads. In 1987 they served 1667 carloads and did not foresee any improvement in traffic.
On July 12, 1989 CN was ordered to abandon all remaining properties on PEI and the Tormentine Subdivision in New Brunswick through Order No. 1989-R-180 by December 31, 1989. By November 1993 all of the rails had been removed.