Two additional extended sidings, costing a total of C$10 million, are planned for this main line in 2012.

Keith Creel, executive vice-president and chief operating officer, said: “CN’s main line through Northern Ontario is a critical link in our transcontinental network connecting Central, Eastern and Western Canada. The strategic investments in longer sidings will help to further increase our ability to process freight trains efficiently across this line, enhance network velocity and productivity, and improve the safety of operations.”

CN’s longer sidings program is creating sidings of 12,000 to 13,000 feet long from sidings that were previously 6,000 to 7,000 feet in length.

CN’s main line through Northern Ontario sees an average of 14 freight trains daily, including intermodal trains between Toronto, the principal cities of Winnipeg, Edmonton and Calgary, and the west coast ports of Vancouver and Prince Rupert. The corridor also hosts two transcontinental passenger trains three days a week.

Extended sidings allow CN to maximize the benefits of its longer-train operating plan in main-line corridors across its system. These more efficient trains are equipped with distributed power (DP) technology, which permits remote control of a locomotive or locomotives throughout a train from the lead control locomotive. DP provides faster, smoother train starts, improved braking and lower pulling forces at the head-end of a train, and improved safety. With more optimum matching of motive power to train weight, DP locomotives also allow CN to reduce fuel consumption and reduce emissions.

CN’s infrastructure improvements to date in Northern Ontario permit the highest average freight train speeds on its entire system – as high as 40 miles per hour. And those investments, along with DP locomotive technology, significantly improve winter operations in the region.

CN’s Northern Ontario siding investments are part of the company’s C$1.7-billion 2011 capital expenditure program to maintain a safe and fluid railway network, to grow the business efficiently and to continue to provide customers with a high level of service.

Creel said: “These extended siding investments in the almost 1,200-mile corridor between Toronto and Winnipeg will help CN deliver greater supply chain efficiencies.

CN is committed to greater productivity and service innovation to help our customers compete better in their markets.”

Forward-Looking Statements
Certain information included in this news release are “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws. CN cautions that, by their nature, these forward-looking statements involve risks, uncertainties and assumptions. The Company cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results of performance of the Company or the rail industry to be materially different from the outlook or any future results or performance implied by such statements.

Important risk factors that could affect the forward-looking statements include, but are not limited to, the effects of general economic and business conditions, industry competition, inflation, currency and interest rate fluctuations, changes in fuel prices, legislative and/or regulatory developments, compliance with environmental laws and regulations, actions by regulators, various events which could disrupt operations, including natural events such as severe weather, droughts, floods and earthquakes, labor negotiations and disruptions, environmental claims, uncertainties of investigations, proceedings or other types of claims and litigation, risks and liabilities arising from derailments, 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 “Management’s Discussion and Analysis” in CN’s annual and interim reports, Annual Information Form and Form 40-F filed with Canadian and U.S. securities regulators, available on CN’s website, for a summary of major risks.

CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable Canadian securities laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related maters, or any other forward-looking statement.

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