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CN pursues alternative fuels growth strategy

05/05/2007 AT 08:54

James Foote, CN's executive vice-president, Sales and Marketing, said: “Industries and consumers throughout North America and overseas are increasingly looking to alternative fuels to reduce energy costs, fuel-related emissions and greenhouse gases.”

Foote said CN's geographic franchise in Canada and the United States is particularly well positioned to take advantage of growing markets for:

CN's rail network has extensive access to the U.S. Midwest Corn Belt, source of much of the ethanol produced in the United States. From the Midwest, CN also offers corn farmers direct access to ethanol producers in Ontario, while in Western Canada CN is positioned to transport wheat for use as feedstock for ethanol production.

More than 30 per cent of gasoline in the U.S. is blended with ethanol, with the blended product used in 28 states. In Eastern Canada, the Ontario government on Jan. 1, 2007, mandated a five per cent blend of ethanol with gasoline.

Major power plants in North America, Europe and Asia are turning to wood pellets as an alternative to fuel oil, gas or electricity to heat homes. CN's North American network and direct access to export terminals on the Pacific, Atlantic and Gulf coasts position the company perfectly to serve growing markets for wood pellets, which do not contribute to global warming because they emit the lowest greenhouse gases of any fuel burned. In addition, because wood pellets are made from scrap wood, they are a natural fuel that is completely recycled.

Biodiesel is a clean burning fuel produced from renewable resources such as vegetable oil, animal fats or waste greases, and in its pure form is commonly blended with petroleum diesel or heating oil, resulting in an alternative fuel that is biodegradable, non-toxic and essentially free of sulphur and aromatics. CN serves two biodiesel facilities in Iowa and will serve further facilities that are planned for development in the U.S. Midwest.

CN to build C$20-million transload centre

CN announced it will construct a C$20-million transload operation and intermodal rail terminal in Prince George, B.C., for the export of containerized products to and from Asian markets through the new Port of Prince Rupert, B.C., rail/maritime intermodal facility.

CN derailment disrupts VIA service

Due to a 32-car Canadian National freight train derailment east of Kingston, Ontario, this morning, VIA Rail Canada is replacing its regular train service with motor coach between Toronto and Montreal/Ottawa, in both directions, until the line is reopened to rail traffic.

2007 1st Quarter News Releases

CN will issue its fourth-quarter 2006 financial and operating results on Jan. 23, 2007, shortly after 4 p.m. Eastern time (ET). CN’s senior officers will review the results and the railway’s outlook later that day in a conference call/webcast starting at 4.30 p.m. ET.

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