CN
TSX : CNR
NYSE : CNI

CN
Ontario Northland Transportation Commission

February 25, 2005 10:01 ET

CN AND ONTARIO NORTHLAND SIGN ROUTING PROTOCOL FOR ONTARIO AND QUEBEC RAIL TRAFFIC


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CANADIAN NATIONAL RAILWAY COMPANY

TSX SYMBOL: CNR
NYSE SYMBOL: CNI



AND ONTARIO NORTHLAND TRANSPORTATION COMMISSION

FEBRUARY 25, 2005 - 10:01 ET

CN AND ONTARIO NORTHLAND SIGN ROUTING PROTOCOL
FOR ONTARIO AND QUEBEC RAIL TRAFFIC

TORONTO, AND NORTH BAY, ONTARIO--(CCNMatthews - Feb. 25, 2005) - CN and
Ontario Northland announced today a two-year routing agreement to
expedite the transportation of northeastern Ontario and northwestern
Quebec freight traffic.

Under the haulage agreement, CN will pay Ontario Northland a fee to
transport its freight traffic between North Bay and Noranda, Que., and
between Noranda and Hearst, Ont., cutting almost 850 miles off previous
all-CN and CN-O.N. Rail routings.

CN and O.N. Rail, Ontario Northland's rail division, connect at
Rouyn-Noranda, a major natural resources centre in northwestern Quebec,
and at the northern Ontario communities of North Bay and Hearst. North
Bay is located approximately 200 miles north of Toronto; Hearst is
situated almost 300 miles north of Sault Ste. Marie, Ont.

O.N. Rail's Noranda-North Bay haulage route and CN's North Bay-Toronto
route - for rail traffic moving between CN's network in Quebec's Abitibi
Region and Toronto for furtherance to points throughout North America -
together are approximately 220 miles shorter than the all-CN route via
Quebec and allow traffic to avoid a major CN classification yard in
Montreal. Initiated a year ago as a pilot project, this CN and O.N. Rail
routing has proved highly successful.

In addition, CN and Ontario Northland have agreed on a haulage route
between Hearst and Noranda for traffic moving between western
Canada/western U.S. and northwestern Quebec. This route over O.N. Rail
is approximately 620 miles shorter than the current one over CN via
Toronto and O.N. Rail via North Bay. It also allows this traffic to
avoid marshalling at CN's Toronto yard.

Keith E. Creel, senior vice-president of CN's Eastern Canada Region,
said: "This agreement is a winning proposition for CN and Ontario
Northland, reducing costs and improving network fluidity. But the real
winners are our rail customers in northeastern Ontario and northwestern
Quebec, whose traffic will reach key markets in Canada and the United
States more quickly. This will increase their competitiveness in the
marketplace."

Steve Carmichael, president and chief executive officer of Ontario
Northland Transportation Commission (ONTC), said: "Our routing agreement
with CN is an important step forward in our strategic plan to improve
customer service, grow our business and improve the economics of Ontario
Northland's rail division. Importantly, the haulage agreement will add
greater freight density to our line between Hearst and Cochrane, Ont."

Under the agreement, O.N. Rail is increasing train frequency over the
haulage routes for CN from five to six or seven days per week. In
addition, CN is making its Guaranteed Car Order Program available to key
O.N. Rail customers and assuming responsibility for switching O.N.Rail's
customers at Noranda.

Canadian National Railway Company spans Canada and mid-America, from the
Atlantic and Pacific oceans to the Gulf of Mexico, serving the ports of
Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and
Mobile, Ala., and the key cities of Toronto, Buffalo, Chicago, Detroit,
Duluth, Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul,
Memphis, St. Louis, and Jackson, Miss., with connections to all points
in North America.

Ontario Northland Transportation Commission, an operational enterprise
of the Province of Ontario, was established in 1902 and is a recognized
leader in promoting sustainable economic growth by establishing and
operating transportation and telecommunication links throughout northern
Ontario.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    CN
    Mark Hallman
    System Director, Media Relations
    (905) 669-3384
    or
    ONTC
    Beverly Watkins
    Manager of Public Relations
    (705) 472-4500 or (800) 363-7512 ext. 265
    www.cn.ca