CP built a substation in Revelstoke and from it constructed a 35 kV operating distribution line along the railway right-of-way; originally built using both 69 kV insulators and construction standards. On August 27, 1984, the Selkirk Construction joint venture (comprising S.A. Healey,
Foundation Company of Canada, and Atlas Construction) began blasting from the east portal. By mid-October, sufficient room existed to install their , tunnel-boring machine (TBM). In December 1985, the tunnel passed below the Connaught one, almost directly beneath the mountain peak. On completion, Selkirk Construction had advanced westward. On October 5, 1984, the Manning-Kumagai (MK) joint venture (comprising Manning Construction and Kumagai Gumi) began from the west portal. Using the
drilling and blasting method, 30 men, rostered in 3 shifts, completed eastward. Meanwhile, the highway was temporarily relocated to construct a reinforced concrete box in a
cut-and-cover trench. This structure carries both the highway and protects the portal from avalanches. In 1985, the words "Mount Macdonald Tunnel 1988" were stamped into the concrete cladding above the portal. The eastern work camp was near the Mount Shaughnessy Tunnel, and the western one at Flat Creek. A third camp for summer surface workers existed near Rogers. Breaking through on October 24, 1986, the approaching tunnels joined. Cementation Canada sank the , ventilation shaft. MK drilled and blasted the gate chamber below, and air tunnels to, this shaft. After concrete lining, the tunnel height is , and the width is on the straights, and on the curves. In September 1988, the final track concrete was poured. The paved concrete track (PaCT) rests on a , reinforced concrete slab. The height clearance can accommodate any future electrification. A fleet of 50 dump cars were built exclusively for the project. About 5,000 tons of material were removed daily from the western side.
Parks Canada allowed some dumping about from the portal, creating a bed for track twinning. The remainder was dumped outside the park boundary at various proposed double-tracking sites between Golden and Revelstoke. The of rubble produced daily at the eastern end was dumped into a large depression to create the grade. Minus the bridge, this fill covered the distance to the Mount Shaughnessy Tunnel. ==Tunnel ventilation==