Canadian National and Clarke Launch Third-Party Logistics Joint Venture Spanning Freight Markets in Canada, the U.S. and Mexico.

Business Editors

TORONTO--(BUSINESS WIRE)--Jan. 6, 2000

(TSE:CNR.) (NYSE:CNI)

Canadian National Railway Company and Clarke Inc. (TSE: CKI) today launched a third-party logistics joint venture offering shippers seamless rail and over-the-road freight transportation and logistics services throughout North America.

The stand-alone joint venture, Clarke Logistics Inc. (CLI), allows CN to offer shippers one-stop-shopping for freight shipments to and from points in Canada, the contiguous 48 United States and Mexico that extend beyond its rail network and require over-the-road transportation.

The joint venture gives Clarke, for the first time, a significant presence in domestic U.S. freight markets, and strengthens its existing intermodal and highway brokerage business between Canada, the U.S. and Mexico.

Clarke holds an 80 per cent equity stake in CLI. CN's investment in CLI consists of a 10 per cent direct interest and a 10 per cent indirect stake through Transci Transportation Systems, a wholly-owned subsidiary of CN.

Transci, a non-asset-based truck brokerage company acquired by CN when it purchased Illinois Central Corporation last year, provides over-the-road services to a large customer base throughout the U.S. and has considerable expertise in coordinating highway transportation of intermodal trailers and containers.

James M. Foote, CN's senior vice-president, sales and marketing, said: "This new joint venture gives CN a strategic alternative in the existing third party logistics market place. It will provide our customers with convenient, cost-effective ways to tap markets beyond our North American rail network and will also generate new market opportunities and revenue for CN. Users of CN's intermodal services and CargoFlo transload operations for moving bulk commodities will be the key beneficiaries."

Douglas Payne, Clarke Logistic's senior vice-president, said: "Clarke is a strategic partner with CN today, playing a major role in CN's Canada-U.S. and Canadian intermodal offerings. Clarke on its own has a significant truck brokerage business in transborder markets, with offices throughout North America. Now, CLI offers us a tremendous opportunity to expand our customer base in domestic U.S. markets and to provide existing customers new market reach."

Transci President John Glennon said: "Transci brings to the table in this new venture a thorough knowledge of the domestic U.S. market place and brokerage relationships with more than 2,000 trucking companies in Canada and the U.S. Our expertise will benefit CN, strengthen its marketing capabilities and help it achieve the most efficient use of its intermodal and transload assets."

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, 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.

Clarke Inc. is one of Canada's leading providers of freight transportation and logistics services throughout North America. Through its five operating divisions (Concord Transportation, Clarke Transport, Clarke Road Transport, Clarke Logistics and Clarke Contract Services), the Company offers: expedited highway service, for both truckload and less-than-truckload ("LTL") shippers; intermodal full load and LTL service throughout Canada and between Canada and the United States; freight marketing and logistics services between locations in Canada, the U.S. and Mexico; and dedicated contract services. The Company employs more than 1,500 people and is headquartered in Etobicoke, Ont. To access more information on Clarke Inc., visit the Company's web site at www.clarkeinc.com.