Mississauga Intermodal Service Centre (MISC)

August 13, 2004

13 August 2004

Mississauga Intermodal Service Centre (MISC)

The following message is from CN’s Customer Support Centre.

In 2003 CN initiated a review of all its Intermodal facilities (including the Mississauga Intermodal Service Centre) and the costs associated with the storage of various types of containers. This has been a complicated process having to consider the continuing growth in the Greater Toronto Area, the relationship between MISC and CN's Brampton Terminal, and the convenience this facility provides to our complete customer base.

Since the review was completed there have been a number of initiatives launched to improve the flow of containers into and out of CN's Intermodal Terminals, and to increase the potential for growth at CN's facilities.

In consideration of the above factors CN is pleased to advise that the MISC Terminal will continue its current relationship with CN. The MISC facility, located in close proximity to CN Brampton, offers a wide range of services including the storage capability for a large volume of containers.

As a result of a number of improvements being initiated at CN Brampton that will involve an increased use of the MISC facility, CN advises that effective September 6, 2004 the following fee structure will apply at MISC:

-- Each empty container ingated at MISC will be subject to a $20 gate fee
-- Each empty container outgated at MISC (except those containers outgated for use in CN's domestic program) will be subject to a $20 gate fee
-- Daily storage of empty containers will continue to be $1 per container-day
-- Special lift requests will continue to be subject to $40 charge
-- Bad order storage fee provision of $10 per day will be cancelled
-- Bad order containers not identified for empty movement under a booking will be subject to a $100 fee.

MISC will extend it's operating hours to allow service between 14:00 Sunday and 14:00 Saturday. This will assist carters to use BIT and MISC during non-peak hours, and will assist the forwarder community in picking up containers required for the domestic program. MISC is currently reviewing its existing operation to protect an increased capability for empty container storage required for exporting purposes.

In the next few weeks CN will revise the Brampton empty container street turn program. During the period Monday to Friday there will be empty bookings available to Pier locations on a limited basis, based on overall daily demand for available train space. Customers unable to secure reservations for these specific time frames but requiring containers to be returned to CN Brampton for rail repositioning may return these to MISC. CN will shuttle these containers to BIT during off peak times. This shuttle will be paid by CN.

CN has recently advised its customers of the current situation at its Brampton Terminal. A number of improvements were outlined, and this is another initiative that CN believes will assist in providing a consistent and efficient level of service to its customers. With the continuing growth of imports and domestic freight CN is attempting to take all steps to ensure a fluid operation.

The continued support of the MISC operation by CN provides our customers with an excellent location for storage with capacity for growth. The fee structure is competitive with similar facilities in the Toronto area, and the expansion to a 24-hour operation for most of the week provides greater flexibility to the shipping community.

The shuttle operation from MISC to BIT, at no cost to you, will provide greater flexibility for the return of empty containers to CN and allow for an enhanced level of service for all users of this facility.

Your cooperation continues to be appreciated as these improvements are implemented. Should you have further inquiries please contact your Account Manager.

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