Gibson's involvement in a third railway company took place when he opened the Marysville Cotton Mill, which was not yet served by a railway line. In 1882 he became president of the Northern and Western Railway Company, which had been incorporated to build a railway from Fredericton to the towns of Newcastle and Chatham on the Miramichi River in northeastern New Brunswick. The federal and provincial governments pledged subsidies of $3,000 and $3,200 per mile, respectively. A line between Gibson and Marysville was completed in the summer of 1884, while the remainder was finished by September 1886. In 1893 Gibson bought out his partner Jabez Bunting Snowball and became sole owner of the company, which had become the Canada Eastern Railway in 1890. In 1904 he sold the railway to the federal government for $800,000.