Annual Conference, Toronto Ontario NOVEMBER 17, 2008 Canadian Association of Movers TONY BIANCO National Account Manager.

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Presentation transcript:

Annual Conference, Toronto Ontario NOVEMBER 17, 2008 Canadian Association of Movers TONY BIANCO National Account Manager

OUTLINE Company Overview CNTL Service Capacity Environmental Benefits of Shipping Rail

Forest Products20% Intermodal18% Grain and Fertilizers17% Petroleum and Chemicals15% Metals and Minerals10% Other Revenues9% Automotive6% Coal5% Domestic Canada 23% Transborder 32% Domestic US 19% Global Europe 4% Global Asia 19% Global South America 3% Based on 2007 revenues Merchandise 52% Intermodal 18% Bulk 21% Other 9% Great North American franchise

Truck-competitive, cost effective service CN offers a 24-hour advantage over its rail competition from Central to Western Canada Transit times are competitive with single truck driver service As a result, CN handles the majority of the Canadian wholesale customer base Truck-competitive, cost effective service

Service Fast transit times Network of terminals Flexibility Our offering Capacity Rail capacity Containers CNTL truck transportation Access Major urban centers Door-to-door

Our customers

Ground Transportation Services

Capabilities Door-to-door retail Intermodal Ramp-to-door drayage Asset-based intercity over the road door- to-door Non-asset-based over the road door-to-door GROUND TRANSPORTATION SERVICES All supported by an innovative customer nurturing program managed by our service delivery teams

CNTL Canada Wholly-owned CN subsidiary, incorporated in drivers, 5,000 containers, 1,000 full load deliveries per day Supports $350M Canadian retail Intermodal franchise Covered over 300 million rail miles and 30 million highway miles in 2006 Top tier safety record GROUND TRANSPORTATION SERVICES

Service

Daily scheduled service SERVICE Toronto, ON to Vancouver, BC 4 th AM Montreal, PQ to Calgary, AB: 4 th AM Toronto, ON to Calgary, AB: 3 rd AM

Customer service Service delivery team Equipment types, weights, ordering process Online track and trace capabilities Customs process Door delivery scheduling Performance measures SERVICE Rate quote Establish credit Account manager

Capacity

BASIC CAPITAL COMMITMENT $Million (Cdn) Over 50% of CN capex on basic infrastructure In 2007: CN added 50 new 4,300-horsepower 3000 platforms for intermodal service Investing to create capacity CAPACITY

Velocity creates capacity Vancouver to Jasper Up 5% Edmonton to Winnepeg Up 3% Winnepeg to Chicago Up 4% Winnepeg to Toronto Up 4% Jasper to Edmonton Up 7% Increase in average track speed (mph), 2003 – 2007 CAPACITY

Keeping boxes on chassis creates capacity Import container loaded directly from truck to chassis to train – or vice versa Just-in-time live loading reduces time and costs of duplicate handling and storage Automated gate system to streamline the process and increase gate throughput CN yards for extra containers and chassis No domestic containers on the ground CAPACITY

Environmental Benefits of Shipping Rail

Growing pressures to lower CO 2 emissions ENVIRONMENTAL BENEFITS OF SHIPPING RAIL First steps to reducing a companys carbon footprint Transportation areas to target for carbon footprint reduction* Identify and reduce emissions from operations Look for savings within the supply chain Target transportation: largest source of CO 2 emissions in the supply chain Destination market optimization Eliminate miles through network re-alignment and route optimization Maximize payload for every shipment Convert to energy-efficient, cost-effective modes Rail emits 6x less GHG than heavy trucks Ship rail for long haul and truck for short haul Use the most efficient carriers Precision Railroading and solid asset utilization Smartway Transport Partners *Source: J.B. Hunt, October 1, 2008

Shipping by rail is energy efficient ENERGY INTENSITY OF FREIGHT MODES, 2006 Megajoules / Tonne-kilometre 5.0 Source: National Resources Canada, Office of Energy Efficiency. Energy Use Data Handbook, August CN can move one tonne of freight 197 kilometres on just one litre of fuel ENVIRONMENTAL BENEFITS OF SHIPPING RAIL

Shipping by rail reduces greenhouse gases GHG BY TRANSPORTATION MODE Mt of CO 2 E Source: National Resources Canada, Office of Energy Efficiency. Energy Use Data Handbook, August Rail has been shown to emit six times less greenhouse gases than heavy trucks ENVIRONMENTAL BENEFITS OF SHIPPING RAIL

For shipments over 1,000 miles using intermodal transport cuts fuel use and greenhouse gas emissions by 65%, relative to truck transport alone. U.S. Environmental Protection Agency ENVIRONMENTAL BENEFITS OF SHIPPING RAIL

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