Port of Quebec, terminals and CN work together to reduce Quebec City-Toronto
transit times by 30 per cent

Collaboration bodes well for port's competitiveness in handling other import commodities headed for central Canada and U.S. Midwest

QUEBEC CITY and MONTREAL, Aug. 6 /CNW Telbec/ - The Port of Quebec, a terminal operator at the port, and CN (TSX: CNR)(NYSE: CNI) announced today a service arrangement that will reduce transit times for shipments destined to Toronto to 38 hours from 53 hours, an improvement of almost 30 per cent.

The improvement resulted from the port and terminal operator agreeing to more consistent release times for shipments and CN adjusting schedules to expedite the movement of traffic over its network between Quebec City and Toronto.

CN will explore opportunities to expedite the shipment by rail of other commodities moving over the Port of Quebec, including metals and minerals concentrates.

Ross Gaudreault, president and chief executive officer of the Quebec Port Authority, said: "I am pleased with the cooperation among all port stakeholders and thank CN for its efforts to accelerate service from the Port of Quebec. Thanks to CN, the Toronto and the U.S. Midwest markets are more accessible than ever before by rail for both the port and its partner terminal operators."

Marc Dulude, executive vice-president and chief operating officer of Port of Quebec operation of International-Matex Tank Terminals (IMTT), said: "IMTT believes the collaborative work among stakeholders will make the Port of Quebec an increasingly competitive option for shipments destined to North America, including energy products, and drive new efficiencies in the supply chain. Toronto is now only hours away from Quebec City, and this significant performance improvement will benefit other markets near Toronto and further west."

Air Canada jet fuel arrives by vessel at IMTT's Port of Quebec terminal and moves via CN's freight network to a fuel terminal near Toronto's Lester B. Pearson International Airport.

Jeff Liepelt, CN senior vice-president, Eastern Region, said: "CN is focused on developing innovative solutions that help our customers and partners compete more effectively in their end markets. Improved transit times from the Port of Quebec to the North American interior will help the port accommodate more merchandise and bulk commodity traffic with greater efficiency."

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.

The Québec Port Authority is an independent federal legacy created under the Canada Marine Act, whose mission is to promote and develop maritime trade, serve the economic interests of the Québec area and Canada, and to make a profit while respecting both its community and the environment.

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.

For further information: For Quebec Port Authority: Media and Investors: Patrick Robitaille, Vice-President, Marketing and Development, [phone]; For CN: Media: Mark Hallman, Director, Communications & Public Affairs, [phone]; Investors: Robert Noorigian, Vice-President, [phone]