CN's former H&SW lines on Nova Scotia's South Shore and in the Annapolis Valley were proving uneconomic by the early 1980s, even for freight service. In 1982, permission was given to abandon the far end of the mainline from Liverpool to Yarmouth as well as the branch line of the former NSCR line between Bridgewater and Bridgetown via Middleton, as well as the New Germany to Caledonia. Reduced to a line running from Halifax to Liverpool, CN depended on the Bowater paper mill and the Michelin tire plant, but even these customers were unable to keep the line generating positive income.