Canadian National Invests $64 Million in British Columbia.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Sept. 16, 1997--CN (ME, TSE:CNR.,NYSE:CNI) Canadian National is spending about $64 million this year in British Columbia. More than $2 million is being invested in 47 intermediate signals that will help expedite traffic along CN's busy southern corridor to the Port of Vancouver. An additional $2 million is being spent to purchase 17 new hot box detectors throughout the province. The hot box detectors are part of CN's coast-to-coast electronic train inspection system that helps ensure the continued safety of CN operations. As well, $36.4 million is being invested in upgrading CN's basic rail network throughout B.C.

"CN operations in British Columbia are vital to the success of the railway," said President and Chief Executive Officer Paul M. Tellier. "The province's rich natural resources account for a significant portion of our overall business. Our customers depend on B.C.'s ports for access to export markets around the world."

CN's total capital expenditure in B.C. this year is part of the railway's total 1997 capital investment of $560 million. Over the past three years, CN has spent more than $1.4 billion on capital projects across its system.

CN's investment in British Columbia during 1997 includes:

- $36.4 million for ties, rail, and other track materials.

Included among this year's projects is the replacement of 160

miles of rail throughout the province, the installation of

50,000 new ties in northern B.C., and the renewal of 30 miles

of ballast and track in southern B.C.

- $23 million for special projects, including construction of a

new fuel car unloading depot at CN's Thornton yard in

Vancouver, the installation of 47 new intermediate signals,

and the purchase of 17 new hot box detectors.

- $2.5 million for bridge improvements and maintenance. This

includes upgrading the last two of 14 bridges and trestles 

on the line to the Port of Kitimat. This completes a 6-year,

$11 million project that brought that line to main line

standard.

- $2 million for new rail lines to serve the Port of Vancouver's

recently-opened Deltaport intermodal import/export terminal.

CN operates about 430 trains a week in British Columbia. The

railway's main-line corridors to the ports of Vancouver and

Prince Rupert are among the busiest on the system.

CN operates 1,883 route-kilometres (1,177 route-miles) of track in B.C., and employs almost 2,000 people in the province who have an annual payroll of about $200 million. CN pays about $33 million in taxes annually in B.C. and spends $162 million on fuel and other purchases.

CN's presence in British Columbia includes the Vancouver Intermodal Terminal; Thornton Yard at Surrey, B.C.; extensive trackage at the ports of Vancouver, Prince Rupert and Kitimat, and rail yards in Kamloops and Prince George. CN's Aquatrain barge service ferries rail cars between the Port of Prince Rupert and Whittier, Alaska.

CN's Pacific District is headquartered in North Delta, and marketing offices for CN's forest products, intermodal, and automotive business groups are located in Vancouver. CN's chairman of the board is also located in Vancouver.

Canadian National Railway Company is Canada's largest and North America's sixth-largest freight railroad, based on 1996 revenues of $4 billion. It serves all of Canada, including the key ports of Vancouver, Montreal and Halifax, and the cities of Chicago and Detroit with connections to all points in North America.

CONTACT: Canadian National Railway Company

Christine Skjerven, 403/421-6150

http://www.cn.ca