North America’s Railroad The Van Horne Institute Calgary Chamber of Commerce October 20, 2005

2 The Canadian Chamber of Commerce The Voice of Canadian Business

3 North America’s Railroad

4 CN Network — 1995 Traffic flows mainly between Eastern and Western Canada Prince Rupert Vancouver Edmonton Winnipeg Halifax Chicago Calgary

5 CN Network — 1999 Prince Rupert Vancouver Edmonton Winnipeg Halifax Acquisition of Illinois Central Jackson Memphis New Orleans Chicago Calgary

6 CN Network — 1999 Prince Rupert Vancouver Edmonton Winnipeg Halifax Strategic Alliance with Kansas City Southern and Transportacion Ferroviaria Mexicana Shreveport Kansas City Laredo Jackson Memphis New Orleans Chicago Calgary

7 CN Network — 2001 Acquisition of Wisconsin Central Prince Rupert Vancouver Edmonton Winnipeg Halifax Chicago Jackson Memphis New Orleans Shreveport Kansas City Laredo Calgary

8 CN Network — Recent Developments Vancouver Edmonton Winnipeg Halifax Chicago Jackson Memphis New Orleans Shreveport Kansas City Laredo Acquisition of Great Lakes Fleet and BC Rail Calgary Prince Rupert

9 CN Today — A “3-Coast” Network CN is North America’s Railroad Vancouver Edmonton Winnipeg Halifax Chicago Jackson Memphis New Orleans Shreveport Kansas City Laredo Calgary Prince Rupert

10 Market Capitalization (Cdn $ billion)

11 This is Excellence

12 This is the Competition

13 This is our Capacity

14 This is the Engine

15 A Culture of Precision Challenge everything and improve it! A Simple and Powerful Game Plan “Success Breeds Success”

16 Rail Safety: Investing in our Network

17 Lake Wabamun, Alberta  Major incident  Within days… – 80,000 feet of booms – 400+ spill-trained contract workers – Specialized equipment, e.g. skimmers – World-renowned experts – CN Wildlife Recovery Centre  Excellent progress on clean-up; more in the spring  CN-led and coordinated response  Good cooperation  CN is committed!

18 What’s Next?  CN in China and Asia: – Beijing – Shanghai – Hong Kong – Taipei – Tokyo – Seoul

19 Prince Rupert  Ready for the future  Excellent natural harbour  Can handle the largest container ships  Closest North American port to China: an extra round-trip voyage every year

20 North America’s Railroad