CNR Letter of change increase of storage charges at BIT - Oct. 2003

News Item Entered: Tuesday, November 11, 2003

INTERNATIONAL STORAGE POLICY UPDATE


Attention: International Customers


On October 17, 2003, we advised you of our plan to raise the charge for storing loaded containers in our terminals. Specifically, we intend to reduce free time to two days and increase storage charges to $100.00 a day. This increase was in response to the continuing issue of loaded containers sitting in our terminals and congesting our operations.

After discussions with many customers, we have reconsidered this decision and will not be changing our loaded storage policy on a system wide basis. It will remain at the current charge of three free days and $75.00 per day thereafter.

However, we are changing the storage policy at Brampton Intermodal Terminal (“BIT”). Effective December 1, 2003, the policy at BIT will be three free days and a charge of $150.00 per day thereafter.

Container velocity remains a critical success factor in the operation of intermodal terminals. We strongly urge your consideration of off hour and weekend pick-up and deliveries to help manage this number.

These charges will be applicable at all Canadian and U.S. facilities and will be reflected in CN’s tariff 7589.

We value your business and appreciated your cooperation.


Sincerely,

Andy Gonta
Vice-President
Automotive & Intermodal Sales