CN Selected as ZIM's Inland Rail Carrier for New ZIM Pacific Service

Business Wire, May 24, 1999

MONTREAL--(BUSINESS WIRE)--May 24, 1999--

Canadian National (ME:CNR.) (TSE:CNR.) (NYSE:CNI) announced today that ZIM Israel Navigation Company has chosen CN as its inland rail carrier for a new container ship service between Asia and North America.

The inaugural vessel, the ZIM Vancouver, arrived today in the Port of Vancouver. Two dedicated doublestack unit trains will depart Vancouver tomorrow, one destined for the U.S. Midwest and the other for Central Canada.

ZIM Israel Navigation Company is a major international container carrier. ZIM cited the Port of Vancouver's automated container terminals and direct rail links to the U.S. Midwest for choosing it as the first port of call. The new ZIM Pacific Service will capitalize on the strong demand for Asian imports in North America.

James Foote, CN's senior vice-president, sales and marketing, said: "CN's doublestack service from the Port of Vancouver to its Gateway Intermodal Terminal in Chicago gives ZIM a competitive edge for imports destined for the U.S. Midwest. CN's merger with Illinois Central will strengthen the railroad's North American franchise, giving ZIM's customers direct access to points south of Chicago such as Memphis and St. Louis."

CN will run two weekly dedicated doublestack unit trains to the U.S. Midwest and Toronto and Montreal for the new ZIM Pacific Service, in addition to its existing daily doublestack service between Vancouver and Chicago and Vancouver and Central Canada.

The ZIM Pacific Service has six vessels; the ships have an individual capacity ranging from 1,400 to 2,000 TEUs (20-foot equivalent containers). The vessels will depart from Shekou, China, calling at Hong Kong, Shanghai, Pusan, Vancouver, Long Beach, Oakland, Seattle and then return.

CN has been ZIM's inland rail carrier from the Port of Halifax for over 25 years.

Canadian National Railway Company serves all of Canada and the U.S. Midwest, including the ports of Vancouver, Montreal, Halifax and the key cities of Toronto, Chicago, Detroit and Buffalo, with connections to all points in North America.