CN
TSX : CNR
NYSE : CNI

CN
Terminal Systems Inc.

April 14, 2005 13:03 ET

CN AND TSI SAY DELTAPORT OPERATIONS NOW FLUID


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CANADIAN NATIONAL RAILWAY COMPANY

TSX SYMBOL: CNR
NYSE SYMBOL: CNI



AND TERMINAL SYSTEMS INC.

APRIL 14, 2005 - 13:03 ET

CN AND TSI SAY DELTAPORT OPERATIONS NOW FLUID

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 14, 2005) - CN and
Terminal Systems Inc. (TSI) announced today that the backlog of import
containers at Deltaport terminal has been cleared and that the two
companies have forged an improved working relationship.

A combination of factors, including severe winter weather in western
Canada and an unexpected surge in container imports early in the New
Year, had caused congestion at Deltaport. In response, CN added more car
capacity and there was a temporary 25 per cent reduction in vessel
discharges at the terminal, pending clearance of the backlog.

Morley Strachan, TSI's vice-president, business development and
strategic planning, said: "We believe it's important that our customers
and wider Port of Vancouver constituency know that Deltaport today is
fluid and operating at normal levels. In tackling a series of challenges
this winter, TSI and CN concluded that a better relationship should help
the two parties successfully manage increased flows of container traffic
through the terminal, now and in the future."

Paul Waite, vice-president, IMX (Intermodal Excellence), for CN, said:
"We now have a four-week rolling forecast of expected import traffic to
Deltaport that will allow all stakeholders to anticipate incoming
container volumes. There is also a new working committee, with
representatives from CN - which chairs it - TSI and the steamship
community, that will give terminal players an important forum in which
to address current and emerging issues."

TSI announced a series of initiatives in March to improve the efficiency
and capacity of Deltaport and Vanterm terminals, including the
investment in new cranes, rubber tired gantries, support equipment and
expansions.

CN earlier this year introduced its IMX Reservation System for export
container traffic destined to Vancouver from CN terminals in Toronto,
Montreal and Winnipeg. The new system will provide a more consistent
supply of cars to Vancouver terminals.

CN's IMX Reservation System was implemented in 2003, first in the
company's domestic market. The objective is to move traffic smoothly,
and on a scheduled basis. This improves network fluidity, asset
utilization, and ultimately increases capacity and reduces costs.

Waite said: "CN believes strongly in taking a collaborative approach in
the market place. We think that by working together better, the
railways, ports and steamship companies could effectively increase
capacity of the intermodal system by 15 per cent to 20 per cent - and
reduce costs."

Another CN initiative to better serve the international shipping
community is working with Canadian Pacific Railway to permit the Port of
Vancouver to increase its daily volume by 10 per cent.

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.

TSI operates Vanterm and Deltaport on long-term leases with the
Vancouver Port Authority. In 2004, TSI handled 764,255 container units
for 1,313,489 TEUs. TSI also provides terminal services to all cruise
line vessels that call at the Port of Vancouver's Canada Place and
Ballantyne Pier terminals during the Alaska Cruise Season.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    CN
    Mark Hallman
    (905) 669-3384
    or
    TSI
    Morley Strachan
    (604) 251-9360
    www.cn.ca