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CN NORTH AMERICA AND CSX INTERMODAL ANNOUNCE SERVICE AGREEMENT

 MONTREAL, June 22 /PRNewswire/ -- CN North America and CSX Intermodal (CSXI) announced today a new interline service that streamlines the flow of highway trailers moving by rail between Canada and the U.S. Southeast and Midwest.
 The service now links all terminals on CSXI's Eastern network, the Florida East Coast Railway and 12 points on CN's network. Traffic will be exchanged between CN and CSXI at Detroit and Chicago.
 "Such partnerships and alliances with other carriers help us extend our market reach and be more competitive," said CN President and Chief Executive Officer Paul M. Tellier.
 CSXI provides transcontinental intermodal service via a network of 33 terminals located throughout the United States and Canada. CN North America integrates the marketing and operations of CN in Canada and its three American railroads -- Grand Trunk Western; Duluth, Winnipeg and Pacific; and the Central Vermont -- to improve Canada-U.S. freight service for shippers and receivers.
 In early April of this year, CSXI and CN North America began rail intermodal trailer service between the U.S. Southeast and Toronto through Detroit. CSXI-originated trailers previously moved to Eastern Canada destinations by CSXI's motor carrier operation after rail delivery to Detroit.
 Seeing the potential in the 3,200 intermodal trailers that had entered Canada via the highway in 1992, CN and CSXI agreed on interline through rates for trailer movements on CN's daily Chicago-Detroit-Toronto Laser trains.
 In early May, the plan was expanded to include all CN points in both Eastern and Western Canada, through Chicago as well as Detroit.
 "The results have already been excellent," said Mr. Tellier. "Detroit-Eastern Canada volume has grown by about 20 trailers a day, and a second train will go into service this Fall, in the Chicago-Detroit-Toronto-Montreal corridor."
 The service improvement is of direct benefit to CN and CSXI customers alike. A shipper in Montreal can now count on consistent and seamless transportation for delivery at major CSXI terminals such as Atlanta, New Orleans and Jacksonville, Fla. A recent addition to the CN-CSXI service is Battle Creek, Mich., on the Chicago-Detroit main line. From there, CN-CSXI provides second morning delivery to and from Atlanta.
 For service to Western Canada, CN utilizes its haulage agreement with Burlington Northern between Chicago and Duluth, Minn., to deliver trailers to Winnipeg for prompt connection with fast transcontinental intermodal trains. Currently, service is provided from Atlanta to Edmonton on a schedule that is service-competitive with long-haul trucking while providing shippers the economies of rail intermodal.
 -0- 6/22/93
 /CONTACT: Roger Cameron of CN North America, 514-399-6630; or Robert Gould, 410-584-0119, or Audrey Thomasson, 410-584-0145, both of CSXI/


CO: CN North America; CSX Intermodal ST: Quebec IN: TRN SU:

GK -- NY064 -- 4632 06/22/93 14:29 EDT
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Publication:PR Newswire
Date:Jun 22, 1993
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