CN-Union Pacific Traffic Interchange

MONTREAL - Nov 24/04 - SNS -- CN and Union Pacific Railroad (UP) have reached a routing protocol agreement to streamline their exchange of rail traffic in an effort to reduce rail congestion at Chicago.

Under the protocol, CN and UP have established a structured plan to direct rail traffic flows through the most efficient interchange locations, a change that will improve transit times and asset utilization for the customers of CN and UP. The new routing protocol will be implemented over a three-month period.

The major interchange points for traffic moving between CN and UP are Superior, Wis., Chicago, Salem, Ill., Memphis, Baton Rouge, La., and, via Burlington Northern Santa Fe, Vancouver, B.C.

The routing protocol will result in a number of changes in traffic patterns:

- Rail traffic moving between Western Canada and Texas will now be consolidated and interchanged at Superior, avoiding the Chicago terminal and reducing handlings en route;

- Wisconsin traffic between Texas and Arkansas will move in a new run-through service to Salem in southern Illinois, rather than being interchanged at Chicago, and

- Traffic moving between eastern Canada and the south-central United States will be interchanged at Memphis, avoiding congestion in Chicago.