Canadian National's Paul M. Tellier Urges Major Railroads to Adopt a "Customer Bill of Rights".

CHICAGO, ILLINOIS--(BUSINESS WIRE)--Aug. 31, 1998--CN(ME:CNR.) (TSE:CNR.) (NYSE:CNI) North American railroads need to change the way they do business and owe customers a "bill of rights" promising them timely, consistent and accountable rail service, says Canadian National President and Chief Executive Officer Paul M. Tellier.

Tellier outlined his proposal here today at the first of at least five "shipper outreach" meetings being sponsored by the Association of American Railroads across the United States. The meetings, designed to help railroads and their customers better understand each others' concerns, were proposed by railroads in April during U.S. Surface Transportation Board hearings on railroad service and competition issues. The STB directed the carriers to proceed with the outreach proposal.

Tellier said: "You have told us that railroad service is not what it should be. I prefer to believe it is not what it can be. My Class 1 [railroad] colleagues all understand this, and I believe you will see all of us working to make our service what it can be.

"Today, I want to give you my vision of where those changes should lead - 10 points that form a customer bill of rights for the rail industry."

Tellier said shippers have the right to expect that railroads recognize that they exist to serve customers. Shippers also have the right to expect railroads to provide quality service, clearly measurable performance standards, consistent delivery times, accountability, transparency, competitive pricing and good equipment. Rail carriers, too, must display resourcefulness and foster true partnerships.

"My vision for the railroad industry, succinctly put, is this: the product we sell is service. And we must provide it with no secrets, no surprises, and no excuses."

For the industry to raise the bar on service quality, shippers must work in concert with railroads, Tellier said. "We need your help in predicting and preparing for the peaks and valleys in demand. We need your help in coordinating shipments to take advantage of the valleys. If you have the option, use us when there's more capacity available."

Tellier said shippers can also help the rail industry by ordering freight cars for shipments in an accurate and timely manner, providing information in the bill of lading prior to the release of shipments and loading and unloading equipment quickly to improve car cycle times.

Tellier said the rail industry has made significant capital investments to improve customer service and rail safety, but more must be spent to increase capacity.

Tellier stressed that the rail industry is undergoing dramatic change, with Norfolk Southern Corporation and CSX Corporation poised to usher in a new era of rail competition in the eastern U.S., and CN proposing to create a new North American railroad that will connect three coasts in Canada and the U.S.

"All of these changes are intended to make rail service better, and they will. But this kind of dramatic change, in any industry, is never easy and is never without significant challenges. I believe we are up to the challenge, and with your continued help, we can make this change work for all of us."

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

   CONTACT: Canadian National Railway Company
             Mark Hallman, 416/217-6390
              http://www.cn.ca