CN
TSX : CNR
NYSE : CNI

CN

June 12, 2007 16:12 ET

CN targets major growth opportunities in northern Alberta's oil sands sector, says president and CEO E. Hunter Harrison

EDMONTON, ALBERTA--(Marketwire - June 12, 2007) - E. Hunter Harrison, president and chief executive officer of CN (TSX:CNR) (NYSE:CNI), said today the railway is strongly positioned to seize growing freight opportunities driven by Alberta's booming oil sands energy sector.

Harrison, speaking to the Edmonton Chamber of Commerce, said CN's extensive network in northern Alberta, coupled with its continental reach and access to three coasts and beyond, make it a leading transportation services provider for the oil sands and other industrial developments in the region.

Transportation opportunities are significant for CN. The oil sands reserves in northern Alberta are second only to Saudi Arabia's, and, according to the Conference Board of Canada, industry will invest more than C$100 billion over the next decade in oil sands development, construction and infrastructure upgrading.

Harrison said CN's main line through Edmonton will play a key role in another major economic opportunity for the company - the new Port of Prince Rupert container terminal, scheduled to start operation in the third quarter of 2007. The terminal will create a new North American gateway for products and commodities moving between Asia and key centres on CN's rail network.

Harrison said CN has invested heavily - and will continue to invest - in Western Canada to prepare itself for these major developments. These investments will improve transportation for shippers and aid regional economic development.

In Western Canada alone, CN in 2007 plans to invest nearly C$350 million in track infrastructure to enhance the plant and to take advantage of growth prospects in North American trade with Asia and the boom in the West.

CN also announced today construction of a C$1.6-million transload facility at one of the company's main Edmonton rail yards off Yellowhead Trail. The Edmonton Bissell CargoFlo operation, to be operated by CN WorldWide North America, will permit rail-to-truck transfer of products such as methanol, sodium hydroxide, drilling mud, ethanol, and biodiesel.

CN has leveraged its continental freight franchise to attract methanol imports to the Edmonton area from Kitimat, B.C., Ste. Rose, La., and Limoilou, Que.

For more information on CN's oil sands freight franchise, visit http://www.cn.ca/productsservices/petroleum_chemicals/en_pandc_oilsands.shtml.

This news release contains forward-looking statements. CN cautions that, by their nature, forward-looking statements involve risk and uncertainties, including the assumption that, while CN expects a moderate slowdown in the North American economy in the near term, its business prospects assume positive economic conditions in North America and globally, and that its results could differ materially from those expressed or implied in such statements. Important factors that could cause such differences include, but are not limited to, industry competition, legislative and/or regulatory developments, compliance with environmental laws and regulations, various events which could disrupt operations, including natural events such as severe weather, droughts, floods and earthquakes, the effects of adverse general economic and business conditions, inflation, currency fluctuations, changes in fuel prices, labour disruptions, environmental claims, investigations or proceedings, other types of claims and litigation, and other risks detailed from time to time in reports filed by CN with securities regulators in Canada and the United States. Reference should be made to CN's most recent Form 40-F filed with the United States Securities and Exchange Commission, its Annual Information Form filed with the Canadian securities regulators, and its 2006 Annual Consolidated Financial Statements and Notes thereto and Management's Discussion and Analysis (MD&A), for a summary of major risks.

CN - 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. For more information on CN, visit the company's website at www.cn.ca.

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Contact Information

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    Jim Feeny (Media)
    Senior Manager, Public and Government Affairs
    (780) 421-6123
    or
    CN
    Robert Noorigian (Investment Community)
    Vice-President, Investor Relations
    (514) 399-0052