CN, Prince Rupert Port Authority and Maher Terminals sign Level of Service
Agreement setting specific targets, measures for continuous improvement in
gateway performance

MONTREAL, Sept. 17 /CNW Telbec/ - CN (TSX: CNR)(NYSE: CNI), the Prince Rupert Port Authority (PRPA) and Maher Terminals Holding Corp. announced today a Level of Service Agreement to promote and better measure improvements in port performance and to enhance Prince Rupert's role as a preferred gateway on the west coast for Central Canada and U.S. Midwest markets.

The agreement establishes performance targets, customer service measures and productivity indicators to improve the flow of containers through the Prince Rupert gateway, including specific times for unloading and loading containers between vessels and rail cars, dwell times at the terminal, and CN transit times to markets in Canada and the U.S.

Claude Mongeau, CN president and chief executive officer, said: "I am pleased to see CN reach another important supply chain collaboration agreement with the principal stakeholders of a vital gateway for international trade. This agreement fully aligns the interests of CN, the PRPA and Maher in achieving continuous performance improvement at the port, will permit transparency in data collection, and encourage balanced accountability of port stakeholders.

"I also want to recognize Maher Terminals as the first container terminal operator to engage in electronic data interchange with CN, a major step forward allowing both parties to quickly capture and measure all events in the supply chain, from container vessel discharge at port to arrival at final destination."

Don Krusel, president and chief executive officer of the PRPA, said: "We are pleased to have built upon the strong collaborative environment at the Prince Rupert Gateway. This agreement forges a strong partnership to further improve the performance of the West Coast's most efficient gateway for transpacific trade and sets the stage for greater transparency for shippers in their supply chain management."

John Buckley, president and chief executive officer of Maher Terminals, said: "This agreement further underscores the excellent relationship and level of cooperation among CN, PRPA and Maher. In the relatively short period of time since start-up of operations in late 2007, the Prince Rupert Gateway has distinguished itself as the premier service provider for the transpacific trade. The Level of Service Agreement further enhances the commitment amongst the stakeholders to provide superior levels of service to ocean carriers and shippers alike."

CN has signed similar agreements with the Port of Halifax and its two container terminal operators, Port Metro Vancouver and two of its container terminal operators, and the Port of Quebec and one of its terminal operators.

Forward-Looking Statements

Certain information included in this news release constitutes "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 factors that could affect the above 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.

CN - Canadian National Railway Company and its operating railway subsidiaries - 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 metropolitan areas 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 on CN, visit the company's website at www.cn.ca.

For further information: For CN: Media: Mark Hallman, Director, Communications & Public Affairs, [phone]; Investment Community: Robert Noorigian, Vice-President, Investor Relations, [phone]; For Prince Rupert Port Authority: Media: Barry Bartlett, Manager, Corporate Communications, [phone]; For Maher Terminals: Media: Frans van Riemsdyk, Executive Vice-President, Corporate Development & Strategy, [phone]