CN and TSI say Deltaport operations now fluid

    News Editors

    VANCOUVER, British Columbia--(BUSINESS WIRE)--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.



    www.cn.ca

    Canadian National Railway Company (TSX:CNR) (NYSE:CNI)

--30--CCN/na*

CONTACT: CN Mark Hallman (905) 669-3384 OR TSI Morley Strachan (604) 251-9360

KEYWORD: NEW YORK INTERNATIONAL CANADA INDUSTRY KEYWORD: TRANSPORTATION SOURCE: Canadian National Railway Company

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