Rails Intermodal Services: An Innovative Business and a Public Policy Solution

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Rails Intermodal Services An Innovative
Business and a Public Policy Solution

• Bill Rowat President CEO
• Railway Association of Canada

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Intermodal Services

• Intermodal connectors tie the transportation
  system together to marry the best features of
  different modes
• Involves a greater use of existing rail capacity
  as an alternative to current congestion or costly
  expansion of highways
• Reduces shipping and travel costs
• Addresses public interest objectives for
  environment, fuel conservation, safety and land
  use

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Intermodal Characteristics

• New roll-on/roll-off and piggy back systems
• Introduction of high-capacity, double-stack
  container cars and multi-level auto carriers
• Expansion of high-throughput intermodal terminals
  with sophisticated inventory control
• New information technology and e-customs clearance

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Intermodal is the largest line of business
Agriculture
Intermodal
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16
Manufactured
Coal
Miscellaneous 2
11
Food Products 1
Paper Products
7
Minerals
14
Fuels Chemicals
13
Forest Products
Machinery Auto
11
Metals 4
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Source Railway Association of Canada, Railway
Trends
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CN Intermodal

• Two product segments
• Domestic consumer products and manufactured
  goods, operating through both retail and
  wholesale channels within Canada and U.S.
• Accounted for 58 of business units revenues in
  2001
• International handling import and export traffic
  through the ports of Vancouver, Montreal,
  Halifax, Mobile and New Orleans
• Accounted for 42 of business units revenues in
  2001

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1,121
994
1,103
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CNs Network

• CN is the only railroad offering coast-to-coast
  service across North America with 20 Intermodal
  terminals strategically located close to all
  major industrial centres in Canada, New England,
  and the mid-west U.S. Through partner railways
  we can provide service to Mexico.

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CNs Intermodal Philosophy Service Offerings

• Need-for-speed trains truck competitive
• One day transit time reduction between Toronto
  and Western Canada (4th a.m.)
• One day transit time reduction between Chicago
  and Vancouver (4th a.m.)

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CNs Service Offerings

• Service agreements truck competitive
• CN-CSXI offers Vancouver to New York in five days
• CN-UP service for shipments between Central
  Canada, Michigan, Texas and Mexico City (i.e. 3rd
  a.m. Houston)

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CNs Terminal Expansion

• Edmonton Intermodal Terminal
• Opened October 2001
• 23 million facility on 370 acres
• Can handle 150,000 containers and trailers
  yearly, with room to expand to 225,000 containers
• Taschereau (Montreal)
• Scheduled opening Fall 2002
• Part of 47 million terminal consolidation
• Will allow 30 more Intermodal traffic at
  Montreal hub

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CPR Network -North America
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• CPR's COMPETITIVE ADVANTAGE
• A network of 23 intermodal terminals, with recent
  capacity expansions in strategic locations -
  Vancouver, Calgary, Chicago, Toronto, and
  Montreal.
• The only carrier that can move non-reinforced
  trailers by rail.
• The leading provider of rail service to overseas
  container shipping lines calling at Vancouver and
  Montreal.
• Daily service from Montreal to all major CPR
  inland points in Canada and the U.S.
• The only railway offering direct service from the
  Port of Vancouver to Chicago over its own track.
• Value-added shipment management through
  Integrated Supply Services.

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• Expressway is an innovative intermodal
  transportation system, designed for the
  short-haul market.
• Expressway operates dedicated trains between
  dedicated terminals.
• Expressway railcars combine high-ride quality
  with flexible loading (using a drive-on drive-off
  ramp system) to safely handle standard
  non-reinforced highway trailers.
• Expressway is backed by an award winning computer
  system which provides easy to use automated
  reservations and terminal check-in to keep truck
  turnaround times to a minimum.
• Each corridor has four train starts a day, two in
  each direction, six days a week. Each train has
  the capacity for sixty 53ft trailers. (240
  trailers a day)

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• Intermodal Success Stories
• Canadian Tire began building its western
  distribution centre next to Calgary Terminal.
• Consolidated Fastfrate, one of the largest
  freight forwarders in Canada, opened a cross-dock
  facility next to Toronto terminal in 2000.
• Hudson's Bay Company and Canadian Pacific Railway
  (CPR) announced a new partnership for shipping
  16,000 truck trailers a year by rail, to reduce
  traffic congestion and greenhouse gas emissions
  on Highway 401.
• Retail giant Sears opened eastern and western
  distribution anchors next to Toronto and Calgary
  terminals in 2000.
• Daimlerchrysler Canada signed an agreement with
  CPR that will reduce the number of trucks by 120
  per day on the 401, which equates to 48,000
  kilometers per day of reduced highway usage

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Success Stories contd

• CN Navigator GPS technology tracks truck
  movements and instantly gives location of all
  pick-ups and deliveries
• Speed Gate Allows truck drivers quicker access
  to terminals through automated self-serve gate
  stands
• eBusiness Intermodal Direct provides online
  ordering of equipment, shipment tracking,
  invoicing and payment

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Conclusion

• Public officials can assist the intermodal
  business model to thrive by
• Providing tax incentives to shippers and trucking
  companies that use intermodal
• Levelling the tax, regulatory and infrastructure
  imbalance that characterizes the treatment of
  surface modes
• Intermodal can help meet Canadas trade growth
  imperatives and its environmental goals.