“Asian Gateway” + “Midwest Express” =The 1st truly continental NAFTA super-railroad

(coming right through our town)

Midwest Express: CN’s ambitions to move containers of goods manufactured in China into the

heartland of North America right through Barrington, IL

** If we don’t stop the merger of CN and EJ&E **

CN Snapshot (from www.cn.ca)

We are a more efficient railroad

CN has one of the best operating ratios in this industry and is committed to moving more freight, more quickly and with fewer assets.

We are a more connected railroad

CN is the only railroad which crosses the continent east-west and north-south, serving ports on the Atlantic, Pacific and Gulf coasts while linking customers to all three NAFTA nations.

Facts & Figures• Employed an average of 22,696 people in Canada and the United States. • Has approximately 20,421 route-miles of track in Canada and the United States • Earned CDN$7.9 billion in revenue in 2007

– 51% from U.S. domestic and cross-border traffic

– 26% from international traffic

– 23% from Canadian domestic traffic

• Stocks trade on the New York and Toronto stock exchanges

CN’s Global Capabilities

With the focused development of the port in Prince Rupert, British Columbia, as an official "Asian Gateway," Canadian National is positioned as the first truly continental NAFTA super-railroad, reaching from Canada to Mexico through the heart of the U.S. On Sept. 12, Canadian National used the opening of its new container terminal at Prince Rupert to declare the railroad the "Midwest Express," a reference to its ambition to move containers of good manufactured in China into the heartland of North America through distribution hubs in Chicago and Memphis.

CN’s Asian Gateway

““Asian Gateway”Asian Gateway”

Prince Rupert, British Columbia

www.youtube.com/watch?v=oRAs9B4EV84

Watch this!!!

According to the Canadian National website, the now-

completed Phase I development of the Canadian National Prince

Rupert container terminal has a capacity to handle 500,000 20-foot containers per year, growing to a 2 million container capacity in 2010, when Phase II development of the

150-acre facility is completed.

Asian Gateway(in the press)

http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=57590

The Chinese deep-water port at Yangshan, near Shanghai, provides ample evidence North America is about to be hit by a tsunami of containers from China.

Yangshan is a reclaimed island the size of 470 soccer fields that lies in the East China Sea Port, offshore from Shanghai.

According to Bloomberg News, the Chinese have invested $15 billion to develop Yangshan, currently the largest port in China.

Currently handling 20 million containers a year, Yangshan is expected by 2010 to operate up to 30 berths, capable of exporting 30 million containers a year, with the vast majority destined for North America.

The Chinese developed Yangshan to accommodate the largest post-Panamax megaships now being constructed, with a capacity to carry up to 12,500 containers, three or four times the size of container ships now operating.

With the West Coast ports "sagging from the weight" of the massive increase anticipated in containers coming from China, Goetz and Bandyopadhyay suggest the transportation infrastructure of North America is being transformed, with a plan of opening new international trade "gateways," including deep-water ports in Canada and Mexico, as well as developing advanced truck-train transportation infrastructure, including newly configured north-south transportation corridors connecting the U.S. with Mexico and Canada.

In 2005, the largest container ships carried an average of less than 2,500 containers. Today, megaships containing 9,500 containers are in operation. The Emma Maersk, one of the largest container ships, is over four football fields long (1,300 feet) and capable of handling 12,500 containers, stacked in 22 rows across its deck.

A YouTube.com video showing the Emma Maersk at sea gives an idea of the megaship's magnitude. http://www.youtube.com/watch?v=2oRlthTwEEM

CN’s Midwest Express

““Midwest Express”Midwest Express”

“CNR's rail lines going east from Prince Rupert are currently vastly underused, so the new container traffic will be shipped on uncongested lines,” said Blackmont analyst Avi Dalfen.

The railway plans to transfer manufactured goods from Asia to distribution centers in Chicago and Memphis from the port, earning the CN line from Prince Rupert the moniker “The Midwest Express.”

What is “Midwest Express”?

The Midwest Express is CN’s plans for a new corridor, which has been nicknamed the Midwest Express after its ambitions to move manufactured goods imported from Asia to distribution centers in Chicago and Memphis more quickly than any other West Coast port. (James Foote, CN's Vice-President of Sales and Marketing)

Q: How do you expect the new terminal to help grow your business?

A: It clearly positions our international, intermodal business to have significant growth over the next few years as the terminal opens up and ramps up to full capacity, which we have said is 500,000 TEU [twenty-foot equivalent units] by the end of 2007. That's quite a big ramp-up for us. In addition to that, it also creates a lot of opportunity for us to develop new lines of business to take advantage of the empty capacity that will be going back towards Asia.

2,000,000

TEU in

phase 2!

Where does Chicago fit?Southern RegionThe Southern Region extends from Winnipeg, Manitoba, to Chicago, Illinois then on to New Orleans, Louisiana, on the Gulf of Mexico, and from Minneapolis and St. Paul, Minnesota to Sault Ste. Marie, Ontario, and from Sioux City, Iowa and Omaha, Nebraska, heading east to Port Huron and Detroit, Michigan. It includes the territory from Winnipeg to Letellier, Manitoba, and from Fort Frances and the inland port of Thunder Bay, Ontario. This Region of approximately 7, 400 route miles of track serves the Gulf ports of Mobile, Alabama and New Orleans, Louisiana, and the river ports of Memphis, Tennessee and Baton Rouge, Louisiana.

Major commodities transported include automotive, iron and steel, petroleum and chemicals, forest products, coal, fertilizers and grain.

The Region interchanges traffic with Kansas City Southern Railroad (KCS) at Jackson, Mississippi, as part of the marketing alliance that provides CN customers’ access to Mexico and the U.S. Southwest.

With connections in Chicago and other locations to all North American Class I carriers, the Southern Region serves as a critical link to the rest of the U.S. market. Gordon T. Trafton

Sr. VP, Southern Region

CN+EJ&E equals doom for Barrington

EJ&E will move the majority of CN’s traffic from existing CN (red) lines to EJ&E (short) lines. If the merger is approved, most of the traffic will be redirected over existing EJ&E lines – through Barrington and other, currently, “quiet” communities.

Can Barrington survive a NAFTA Super-railway???

Can Barrington Survive?

What if…

With the focused development of the port in Prince Rupert, British Columbia, as an official "Asian Gateway," Canadian National is positioned as the first truly continental NAFTA super-railroad, reaching from Canada to Mexico through Barrington, IL. On Sept. 12, Canadian National used the opening of its new container terminal at Prince Rupert to declare the railroad the "Midwest Express," a reference to its ambition to move containers of good manufactured in China into the heartland of North America through distribution hubs in Barrington, IL and Memphis.

CN’s Future Capacity

Multiple factors affect the capacity and throughput of CN’s “Midwest Express”. All are tied to growth.

– Deep-water port at Yangshan, China• Increase of 10 million more (30 million total) containers a year, with the vast

majority destined for North America. – Requires 667 additional Emma “megaships” to handle just the growth – which is

now served by existing ships. This does not include the 20 million capacity of today which would be moved to EJ&E lines.

– Shipping vessels size and speed• From 2,500 TEU (containers) to 15,000 TEUs in 2008

– More Emmas and more 20 ft containers arriving in Prince Rupert terminal

– Prince Rupert container terminal • From 500,000 TEUs per year to 2,000,000 TEUs/year

– Phase 1=20,000 25-container trains/yr (now)» At 50% traffic, Barrington would experience (27) 25-TEU trains/day» Up from about 17/day today

– Phase 2=60,000 MORE 25-container trains/yr » At the same 50%, Barrington would experience (82) more 25-TEU

trains/day!– TOTAL TRAINS PER DAY=109 25-container trains/day through Barrington

– Size and length of trains• Double-stacked, more cars/containers

Future impact to Barrington

• The Math…– Of the (30) million TEUs (containers) from Yangshan, Prince

Rupert terminal will be able to handle 7% of Yangshan’s future capacity. (7%=2M TEUs)

– 2,000,000 TEUs from Prince Rupert into the Midwest Express• 80,000 25-TEU trains• 50,000 40-TEU trains

– If 50% of the Midwest Express trains went through Barrington:• 40,000 25-TEU trains/year = (109) 25-TEU trains/day • 25,000 40-TEU trains/year = (68) 40-TEU trains/day

– CN’s future capacity increases daily freight trains through Barrington from 17 to 109 when CN completes Phase 2. That’s 92 more trains per day than today.

Q: Will CN have “supply” to fill their Phase 2 plans?A: Yes. Phase 2 capacity = only 7% of Yangshan’s output!!!

How does CN explain the impact to Barrington???

Let’s read from a letter to Congresswoman Bean…

Text removed. See full letter at: http://www.cn.ca/about/EJE/pdf/letter-to-Rep-Bean-03272008.pdf

CN states that the impact to Barrington is

equal to waiting for one additional

stop light?!

CN explains that (92) additional 25-container trains per day through Barrington be comparable to waiting for an

additional stop light?

If you don’t agree with CN, get involved and voice your opinion!!!

STOPThe

Trains!!!

Sourceshttp://www.financialpost.com/story.html?id=4eb674f9-f802-4781-aaaf-5d177a7487e0&k=99548

http://network.nationalpost.com/np/blogs/tradingdesk/archive/2007/9/11/prince-rupert-port-opening-big-boon-for-cn-rail.aspx

http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=57714

http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=57590

www.CN.ca

http://www.forbes.com/2002/10/10/1010sf.html

www.yahoo.com

www.google.com

Definitions

• Prince Rupert – phase I = 500,000 TEU/year (completed 2007)

• 33 Emmas

– phase II = 2,000,000 TEU/year• 133 Emmas

• 1 TEU = Twenty foot Equivalent Unit (20 ft container)• Emma capacity = 15,000 TEU

– With it’s 207’ beam, it’s not designed for the Panama or Suez Canal – it’s strictly transpacific.

• 31 knots versus 18-20 knots (typical container ship)– Shaves 4 days off typical ship time

• 2005 ships = 2,500 TEU

• 2007 ships = 9,000 TEU