CN Brampton Import Storage

9 February 2006(revised 31 March 2006)

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AgendaAgenda

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Backgound Import storage policy Off-site storage options Rail 101

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BackgroundBackground

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The rapid growth in international trade is placing a strain on all components of the supply chain

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BackgroundBackground

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Port Throughput - China

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1999 2000 2001 2002 2003 2004

000

TE

U

30%

26%

27%

35%17%

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BackgroundBackground

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Import Volumes CN Brampton

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

140% Growth

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BackgroundBackground

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CN is positioning itself, and thereby positioning its customers, to capitalize on this growth Expansion of operating hours Provision of reserved capacity Terminal expansion

CN’s Brampton storage policy is designed to create the capacity for CN’s customers to continue growing Brampton is a cross-dock facility Storage is offerred where land is not required for primary operations

Customers are better served by ensuring their costs are related to the infrastructure they consume

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Import Storage PolicyImport Storage Policy

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Import storage – one free day, thereafter $200/day or part thereof Day of availability Day after availability 07:00 the next day

Day 0 Day 1 Day 2 Day 3

Import Available

Free DayDay of Availability $200 $400

07:00 07:00

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Off-Site Storage OptionsOff-Site Storage Options

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CN provides lower cost off-site storage options for customers unable to pick up their imports upon arrival $125 for up to 2 days of storage

– Day of availability, next two days, up to 07:00 the next day $75 for each additional 24 hours or part thereof Excludes Dangerous Goods, running reefers, containers not released by Canada

Customs Containers without a pick up appointment at the time of grounding will be

moved to off-site storage Alternatively importers may select from a variety of service providers who will

remove an import form CN Brampton within the free time and store it until the importer is ready to receive it

Day 0 Day 1 Day 2 Day 3

Import Available

Free DayDay of Availability $200 $400

Day of Availability $125 + $75

Brampton

Misc Day of Availability plus Two Days for $125

07:0007:00

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Rail 101Rail 101

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Import trains: Halifax – daily departure 20:05 Atlantic, arrival 02:30 day 2 (30h transit), pad 03:45 Montreal – daily departure 07:15 Eastern, arrival 17:35 (10h transit), pad 02:30 day 1 Deltaport – daily departure 03:00 Pacific, arrival 03:20 day 4 (93h transit), variable pad Vancouver waterfront – daily dearture 20:00 Pacific, arrival 09:30 day 5 (106h transit),

pad 16:00 day 5 Port loading patterns, ETA availability Booking appointments

Import must have a published availability– Loaded vs moving

Appointment system must be open

Sunday Tuesday Wednesday Thursday FridayMonday

TD Halifax TA Brampton Import Available Brampton

Appointment system opens for Friday

TD Vancouver Waterfront TA BramptonImport Available Brampton

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Rail 101Rail 101

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Pad Availability To assist the importer with planning their pick up CN will update its systems with an

anticipated “pad availability” by noon the day before scheduled placement – This will enable an importer to arrange/comfirm their pick up with the importer

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Rail 101Rail 101

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Intermodal Shipment Status

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Rail 101Rail 101

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Points to Note: Scheduled placement is generally conservative

– Designed to ensure availability by listed time If no appointment is made prior to grounding the import will be moved off-site

– To ensure import remains at Brampton do not wait until day of placement to make appointment Appointment may be made when import dispays ETA

– Reconfirm after pad availability is displayed– An alert will be sent to the registered email address if pad availability precludes appointment

from being fulfilled Certain circumstances may prevent an import being available immediately at scheduled

pad placement. To prevent a dead run:– Monitor actual pad availability when scheduling tight– Plan pick up for the free day

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Rail 101Rail 101

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Considerations: If CN has not provided a scheduled pad availability by noon the day before, the import

will continue to have two free days Storage clock will begin with the later of scheduled pad availability or actual availability If an appointment cannot be fulfilled due to rescheduling/late pad placement the import

will continue to have two free days

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Rail 101Rail 101

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Storage: Any party that will guarantee storage should be set up to do so on line At the present time, storage may only be guaranteed once the container grounds