CN Commitment to the Port of Halifax Remains Strong.

MONTREAL--(BUSINESS WIRE)--May 7, 1999--

Canadian National (CN) (ME:CNR) (TSE:CNR) (NYSE:CNI) remains committed to the Port of Halifax and is confident the port will attract new container volumes destined for the U.S. Midwest.

CN issued the statement after Maersk Inc. and Sea-Land Service Inc. selected the Port of New York/New Jersey to accommodate their post-Panamax vessels.

CN expressed disappointment that the steamship lines did not choose to route new container business through the Port of Halifax.

CN said all stakeholders at the Port of Halifax worked hard to secure the Maersk-Sea-Land business and that the competition from the Port of New York/New Jersey and the Port of Baltimore was extremely tough.

CN's commitment to Halifax is clear. CN has made critical investments in its Halifax Intermodal Terminal, St. Clair Tunnel at Sarnia, Ont.-Port Huron, Mich., and Gateway Intermodal Terminal at Chicago to help position the port as a key gateway to North America. Moreover, CN has pursued service and pricing strategies that make it cost competitive for all steamship lines to increase their volumes through Halifax.

Halifax's deep-water port has strong competitive advantages, and CN is committed to continue to work with all stakeholders to generate new container business for the Port of Halifax.

Canadian National Railway Company serves all of Canada and the U.S. Midwest, including the ports of Vancouver, Montreal, Halifax and the key cities of Toronto, Chicago, Detroit and Buffalo, with connections to all points in North America.