CN investments strengthen national rail network and support Canada's competitive position in the global marketplace



    MONTREAL, Feb. 1 /CNW Telbec/ - E. Hunter Harrison, president and chief
executive officer of CN (TSX: CNR)(NYSE:   CNI), said today the Company's
investments in recent acquisitions, continued infrastructure improvements and
new locomotives strengthen Canada's domestic rail network and bolsters its
position in the international market place.
    Harrison said: "CN's purchase of regional railways in Alberta and our
commitment to upgrade these railways, our substantial investments in network
capacity and new locomotive acquisitions, along with the investments to
support global trade at the Port of Prince Rupert and in-land at Prince
George, B.C., are significant for the economy of Canada.
    "We are protecting and ensuring the sustainability of rail service to
resource industries in Alberta and investing in plant and equipment to provide
quality rail infrastructure and service to all Canadian shippers. CN's
investments are strengthening the Canadian rail network and helping to support
the competitiveness of Canadian industry in North American and global
markets."
    CN has targeted its significant investments on the following additions
and improvements to its rail infrastructure:

    
    - In December 2007, the Company announced the C$25-million acquisition of
      the Athabasca Northern Railway Ltd. (ANY) and plans to rehabilitate
      ANY's rail line for C$135 million over three years.
    - CN in 2006 purchased the Mackenzie Northern (MKNR) Railway and Lakeland
      & Waterways Railway (LWR) for C$26 million and the Savage Alberta
      Railway, Inc., (SAR) for C$25 million. The Company spent more than
      C$60 million upgrading the three railways in 2006 and 2007, and will
      spend another C$26 million on further upgrades to the properties in
      2008.
    - CN invested almost C$300 million in Canada during 2003-2007 to extend
      sidings for more efficient train operations, to increase network train
      speeds and to improve the fluidity of yards and terminals.
    

    CN's extended siding program includes longer passing tracks on the
Company's B.C. North Line to the Port of Prince Rupert, home of a new
international container terminal that opened in October 2007. As part of its
Rupert investments, CN committed approximately C$100 million to the
acquisition of new locomotives to handle the container traffic between the
port and the principal centres of Canada and the United States Midwest.

    CN - Canadian National Railway Company and its operating railway
subsidiaries - spans Canada and mid-America, from the Atlantic and Pacific
oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert,
B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the key
metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth,
Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul, Memphis,
St. Louis, and Jackson, Miss., with connections to all points in North
America. For more information on CN, visit the company's website at www.cn.ca.




For further information:

For further information: Bryan Tucker (Media), Senior Manager, Public
Affairs and Media Relations, CN, (514) 399-6450; Robert Noorigian (Investment
Community), Vice-President, Investor Relations, CN, (514) 399-0052


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