CN and CPR announce new network initiatives to improve customer service, rail asset utilization

CN and CPR announce new network initiatives to improve customer
service, rail asset utilization
(Editors: Downloadable maps illustrating the network initiatives are available
on the CN and CPR websites) 


MONTREAL and CALGARY, Nov. 16  /PRNewswire-FirstCall/ -- CN and Canadian
Pacific Railway (CPR) have reached agreement on three new network initiatives
that will improve railway transit times and asset utilization in British
Columbia, Alberta and Ontario.

  The latest initiatives provide for:

  -  A slot-sharing arrangement allowing CPR to move eight trains a week of
     bulk commodities over CN's line between Edmonton and CPR's network at
     Coho, B.C., near Kamloops, a distance of about 550 miles. Under the
     arrangement, which has been tested for the past several months by the
     railways, trains are equipped with CPR locomotives and operated by CN
     crews. At Coho, CPR trains enter already-established directional
     running trackage that sees all westbound trains of both railways move
     through the Fraser Valley on CN's line and all eastbound trains move
     on CPR's line.

  -  Directional running over about 100 miles of parallel CPR and CN track
     in Ontario between Waterfall, near Sudbury, and Parry Sound. The two
     railways will operate eastbound trains over the CN line and westbound
     trains over CPR's line, improving network fluidity in this corridor;

  -  A haulage arrangement, with CN freight moving over about 300 miles of
     CPR track in Ontario between Thunder Bay and a junction with CN at
     Franz using CPR's route north of Lake Superior. This arrangement will
     permit the rationalization of about 200 miles of CN secondary track in
     Ontario between Thunder Bay and Longlac. CN will maintain
     transportation service to affected shippers.



E. Hunter Harrison, president and chief executive officer of CN, said: "With
these new arrangements, CN and CPR are unlocking efficient ways of improving
service, increasing track capacity and maximizing utilization of railway
infrastructure. These agreements are clear wins for our respective customers
and shareholders."

Robert Ritchie, CPR's president and chief executive officer, said: "These
initiatives are the product of an extensive review that showed opportunities in
eastern and western Canada for quick improvements in the utilization of railway
infrastructure. Along with our Port of Vancouver agreements to make rail
operations more efficient for port freight traffic, these new initiatives again
demonstrate that the highly competitive railway industry can work in a spirit
of co-operation to respond to shipper needs."

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, visit CN's website at http://www.cn.ca/.

Canadian Pacific Railway is a transcontinental carrier operating in Canada and
the U.S. Its 14,000-mile rail network serves the principal centres of Canada,
from Montreal to Vancouver, and the U.S. Northeast and Midwest regions. CPR
feeds directly into America's heartland from the East and West coasts.
Alliances with other carriers extend its market reach throughout the U.S. and
into Mexico. Canadian Pacific Logistics Solutions provides logistics and supply
chain expertise worldwide. For more information, visit CPR's website at
http://www.cpr.ca/. 

DATASOURCE: Canadian Pacific Railway



CONTACT: CN: Media - Mark Hallman, [phone];

Investors - Robert Noorigian, [phone]; Canadian Pacific Railway:

Media - Len Cocolicchio, [phone], E-mail: ;

Investors - Paul Bell, Vice-President, Investor Relations, [phone],

E-mail: 

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