Canadian National Launches Innovative Guaranteed Car Supply Program.

Business Editors

MONTREAL--(BUSINESS WIRE)--Sept. 20, 2000

Canadian National (NYSE:CNI)(TSE:CNR.) raised the bar for customer service again today with the introduction of a guaranteed car supply program.

The guarantee applies to CN's fleet of 73-foot center-beam flat cars used primarily for lumber loading in Canada.

The fleet is 4,200 cars strong.

The program will be extended to all CN owned or controlled boxcars, flat cars and gondola cars in the near future.

Stan Jablonski, CN's vice-president, forest products, said: "This innovative guarantee program represents a major philosophical change in CN's car supply strategy and its relationship to shippers. We firmly believe that a guaranteed delivery policy will produce major benefits for shippers, their customers and CN. At the end of the day, it's all about getting the product delivered on time and this program will give everyone the necessary reliability."

CN and the ordering shipper will now be subject to an agreement requiring CN to guarantee delivery of empty center-beam cars to shippers on specified dates.

"We think this program makes a lot of sense for CN and its customers," said Jablonski. "The program will enable our customers to anticipate car supply with confidence, ensuring effective management of their inventory and supply chain costs. The program will also help CN to anticipate orders, improve its demand forecasting and overall distribution planning, and generate better asset utilization."

The guaranteed car supply program was launched after a successful two-month CN pilot project earlier this year with a small group of lumber customers in Northern British Columbia. CN supplied these customers with 100 per cent of their car orders on the desired date of placement.

Customers may advance order center-beam cars at any time. The earlier cars are ordered the more assured the customer is of the quantity of cars available for the specified delivery date.

Guaranteed cars can be ordered via email at [e-mail]. Shippers should include their name, telephone number, loading location, car type, loading date and number of empties required for each loading day.

Shippers can get further information by contacting their CN marketing representatives.

Canadian National Railway Company 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 cities of Toronto, Buffalo, Chicago, Detroit, Memphis, St. Louis, and Jackson, Miss., with connections to all points in North America.