CN and CSX Transportation, Inc., (CSXT) announced today a long-term agreement for CN to haul CSXT traffic to and from Sarnia, Ont., and CSXT connections in Buffalo, N.Y., and Toledo, Ohio.

CSXT's important Sarnia customers will see better service and faster transit times via CN, compared with the more circuitous routing their traffic now takes via Chatham, Ont., Windsor, Detroit, Plymouth, Mich., and Toledo.

CN will also transport long-haul CSXT traffic destined for Canadian
Pacific Railway Ltd. (CPR) to London, Ont., for interchange with CPR,
improving transit times for CPR. This traffic is currently interchanged
between CSXT and CPR at Chatham.

CSXT will retain track and continue to serve its customers in Sarnia,
and maintain operations on 27 miles of its line between Sarnia and
Wallaceburg, Ont. CSXT plans to discontinue about 26 miles of track
between Wallaceburg and Chatham in accordance with the Canada
Transportation Act.

CN will purchase 12.5 miles of CSXT track between Chatham and Blenheim,
Ont., acquiring control of trackage connecting CN's network to its
Windsor classification yards and the Detroit-Windsor rail tunnel.

Implementation of the agreement is scheduled for Jan. 31, 2006.

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