<Tr> <Th> Headquarters </Th> <Td> Charlottetown, Prince Edward Island </Td> </Tr> <P> The Prince Edward Island Railway (PEIR) was a historic Canadian railway on Prince Edward Island (PEI). The railway ran tip - to - tip on the island, from Tignish in the west to Elmira in the east, with major spurs serving Borden - Carleton's train ferry dock, the capital in Charlottetown, Montague and Georgetown and the original eastern terminus at Souris . A major spur from Charlottetown served Murray Harbour on the south coast . </P> <P> Construction began in 1871 but costs almost bankrupted the government by the next year, a problem that helped pave PEI's entrance into Confederation . The work was picked up by the Canadian Government Railways and largely completed by the mid-1880s . The PEIR saw heavy use, especially during World War II, but like many railways saw declining use through the 1970s . The line officially closed on 31 December 1989 and the rails removed between 1990 and 1992, with the provincial government receiving a one - time payment of $200 million to upgrade the road network in exchange for not opposing the closure . </P> <P> The provincial government purchased the properties in 1994, and 75% of the route now forms the basis of the Confederation Trail rail trail system . The station in Elmira, at the eastern end of the line, is now used as the Elmira Railway Museum . </P>

When did the trains stop running in pei