CN orders 232 new iron ore cars, undertakes 500-car refurbishment program, as part of long-term upgrade of Upper Midwest ore fleet



    DULUTH, MN, Oct. 9 /CNW Telbec/ - CN (TSX: CNR)(NYSE:   CNI) announced
today the acquisition of 232 rapid-discharge ore cars and refurbishment of 500
existing ore cars as part of a long-term plan to upgrade the company's car
fleet for transporting pelletized iron ore produced in the Upper Midwest.

    Delivery of the new ore cars will start in January 2009, permitting the
retirement of the same number of older cars.

    The refurbishment of 500 existing ore cars is underway and includes the
installation of new trucks and couplers, modernizing the braking system and
repairing outlet gates.

    CN's existing iron-ore fleet consists of almost 2,200 cars. CN foresees
acquiring more new iron ore cars over the next three to five years and
refurbishing another 500 cars next year. In the years ahead the new cars will
permit the retirement of an equivalent number of cars.

    James Foote, CN executive vice-president, Sales and Marketing, said:
"CN's iron ore business in the U.S. is performing well and we anticipate
continued strength in this market segment in future. That's why we think the
time is right for CN to acquire new iron-ore cars and to rebuild other cars to
extend their service lives.

    "Our fleet renewal program will increase rail efficiency and deliver
better service to our iron-ore customers, who are important economic forces
and employers in northern Minnesota and northern Michigan."

    CN hauls pelletized iron ore in unit trains from three mines in northern
Minnesota and one in Michigan primarily to Great Lakes ports for
transportation to North American steel producers. Some traffic moves on
all-rail routes, and some is moved to export position for overseas markets.

    Forward-Looking Statements

    This news release contains forward-looking statements. CN cautions that,
by their nature, forward-looking statements involve risk, uncertainties and
assumptions. In addition to the other assumptions contained in this release,
the Company believes the U.S. economy may currently be in a mild recession but
that it will gradually recover in the second half of 2008 and that the global
economy will grow at a moderate pace throughout the year. The Company cautions
that these, as well as its other assumptions stated above, may not
materialize. The Company's results could differ materially from those
expressed or implied in such forward-looking statements. Important factors
that could cause such differences include, but are not limited to, industry
competition, legislative and/or regulatory developments, compliance with
environmental laws and regulations, various events which could disrupt
operations, including natural events such as severe weather, droughts, floods
and earthquakes, the effects of adverse general economic and business
conditions, inflation, currency fluctuations, changes in fuel prices, labor
disruptions, environmental claims, investigations or proceedings, other types
of claims and litigation, and other risks detailed from time to time in
reports filed by CN with securities regulators in Canada and the United
States. Reference should be made to "Management's Discussion and Analysis" in
CN's annual and interim reports and Annual Information Form and Form 40-F
filed with Canadian and U.S. securities regulators, available on CN's website,
for a summary of major risks.
    CN assumes no obligation to update or revise forward-looking statements
to reflect future events, changes in circumstances, or changes in beliefs,
unless required by applicable laws. In the event CN does update any
forward-looking statement, no inference should be made that CN will make
additional updates with respect to that statement, related matters, or any
other forward-looking statement.

    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, 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: Media: Mark Hallman, Director, Communications,
Media, (905) 669-3384; Investment Community: Robert Noorigian, Vice-President,
Investor Relations, (514) 399-0052


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