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Last updated on April 24, 2014 at 16:34 EDT

CN disappointed with passage of Canadian rail service legislation, says President and CEO Claude Mongeau

June 21, 2013

MONTREAL, June 21, 2013 /PRNewswire/ – Claude Mongeau, president and
chief executive officer of CN (TSX: CNR) (NYSE: CNI), reiterated his
disappointment with Canadian government rail service legislation that
completed passage through Parliament following Senate approval today.

“It is unfortunate that the government has passed this legislation
because it is not consistent with a sound public policy agenda that
encourages increased productivity and innovation in Canada,” Mongeau
said.

“Canada’s railways are recognized globally for their efficiency and
service. There is always room for continuous improvement, but we
operate in a well-functioning market where there are no systemic
service issues. This enviable situation is the result of 25 years of
successful public policy that progressively deregulated railways and
encouraged greater reliance on normal commercial market forces.

“The federal government’s Rail Freight Service Review, launched in 2008,
encouraged railways to embrace greater supply chain collaboration and
to strengthen service levels. It was certainly an important catalyst in
CN’s decision to launch a series of collaboration agreements with
customers and partners in all sectors of the business.

“Since 2010, we have introduced an innovative scheduled grain service in
Western Canada, entered into supply chain collaboration agreements with
all of Canada’s major ports and intermodal terminal operators, and
adopted a new supply chain focus for the movement of many of our other
key commodities. All of these innovations were commercially negotiated.
They are encouraging stakeholders in the supply chain to achieve
improved service levels and greater productivity. They are helping CN’s
customers compete more effectively in global markets and contributing
to the health of the Canadian economy.

“We believe the government should have recognized these significant
successes and resolved to promote further progress within a commercial
framework. Instead, the government adopted new rail regulation -
regulation that could actually chill supply chain innovation that
benefits both the rail industry and its customers.”

CN is a true backbone of the economy, transporting approximately C$250
billion worth of goods annually for a wide range of business sectors
ranging from resource products to manufactured products to consumer
goods, across a rail network spanning Canada and mid-America, from the
Atlantic and Pacific oceans to the Gulf of Mexico. CN – Canadian
National Railway Company, along with its operating railway subsidiaries
— serves the ports of Vancouver, Prince Rupert, B.C., Montreal,
Halifax, New Orleans, and Mobile, Ala., and the metropolitan areas of
Toronto, Chicago, Detroit, Duluth, Minn./Superior, Wis., Green Bay,
Wis., Minneapolis/St. Paul, Memphis, 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.

SOURCE CN


Source: PR Newswire