You mean, when did CN give up the desire for an alternate route from Washago to Toronto?
I don't have a definitive answer, but I would blame Paul Tellier and privatisation. Tellier arrived at CN in 1992, privatisation happened in 1995. The line north of Barrie was abandoned in November 1996. The Newmarket would have been looked at in a different light as CN prepared for the IPO, I suspect....the whole trouble with pre privatised CN is that it was perpetually overcapitalized.
As to why the line was never CTC'd, I suspect that while there may have been a plan, the capital expenditure just never got to the top of the priority list. CN did use the Newmarket for detours right up until the end (sorry, I don't have notes of exact instances, but I do recall those occasions going around the grapevine), but the number of times that was needed, and the line's having too little traffic to make CTC economic, made CTC a bit of a pipe dream. When there were detours, they tended to be unidirectional.
With today's long trains and added traffic, if that route were still available, I bet CN would want to run directionally. As trains have lengthened, the sidings on the Bala Sub are inadequate.
- Paul