8 November 2004

Customer Bulletin - CN-CPR-NS Agreement

The following announcement is from the Executive Vice President of CPR.

Canadian Pacific Railway, CN and Norfolk Southern Railway announced today an agreement for freight haulage and trackage rights that will provide shippers with significantly improved freight service between Eastern Canada and the Eastern United States.

The agreement provides a shorter, more direct north-south routing for NSR-CN interline freight traffic by routing it over CPR's Delaware and Hudson Railway (D&H) subsidiary south of Montreal. The new routing is 330 miles shorter and as much as two days faster than the routing CN and NSR currently take through the Buffalo, N.Y., gateway.

The railways expect to begin using the new routing on Nov. 19.

In addition to improving service, CPR's agreement with CN and NSR will increase traffic density, further strengthening our D&H subsidiary. A stronger D&H in the important northeastern U.S. market will mean improved competitive options and transportation stability for shippers.

Under the new three-railroad agreement:

-- CN traffic destined for the Eastern U.S. will move in CPR trains on D&H's line between Rouses Point, N.Y., and Saratoga Springs, N.Y., under a freight haulage arrangement between CPR and NSR;

-- This CN traffic will then move in NSR trains over D&H's line between Saratoga Springs and the NSR connection near Harrisburg, Pa., under trackage rights agreements between CPR and NSR.

This latest development follows a series of transactions between CPR and NSR that will improve operational efficiency on the D&H and enhance rail service in the northeastern U.S. These transactions involve trackage rights and freight haulage and yard services.