CN and Amtrak Reach Agreements to Strengthen Passenger Rail Service and Safety

WASHINGTON, D.C. and HOMEWOOD, Ill. – CN (TSX: CNR) (NYSE: CNI) U.S. rail subsidiaries (Illinois Central Railroad Company and Grand Trunk Western Railroad Company, together “CN”) and the National Railroad Passenger Corporation (Amtrak) today announced that they have reached agreements that strengthen their partnership and support safe, reliable passenger and freight service on CN’s U.S. rail network.

The parties have signed a new eight-year operating agreement governing Amtrak service on CN owned rail lines. The agreement resolves a more than decade-long proceeding before the Surface Transportation Board (STB) concerning the terms and conditions for Amtrak services such as the City of New Orleans, Illini/Saluki, and Wolverine.

The operating agreement establishes an updated framework for CN and Amtrak to work together, including a revised performance payment system more closely aligned with the Federal Railroad Administration’s (FRA) on-time performance standard, regular reviews of Amtrak’s schedules, and processes to address operational issues and resolve disputes.

In addition, the parties will work together on a process for Amtrak to equip its trains operating on CN’s network with Onboard Shunt Enhancers (OSEs), a technology that improves how trains are detected as they approach rail grade crossings. OSEs help ensure crossing warning systems, including gates, flashing lights and bells, activate when they should.  OSEs both improve safety and provide greater operating flexibility, supporting improved on-time performance for passenger rail service while helping freight and passenger traffic move efficiently across corridors Amtrak shares with CN.

“CN is pleased to have reached agreements that allow us to move forward with a clear framework for safely and efficiently sharing our network. Together with the deployment of OSE technology, these agreements will support safer grade crossings and reliable passenger and freight service.”

• Patrick Whitehead, Executive Vice-President and Chief Operating Officer, CN

“These agreements give Amtrak and CN a strong foundation to move forward together and deliver efficient, reliable passenger rail service. Together, we are improving performance for our passengers while investing in technology that enhances safety in the communities we serve. With steady encouragement from the STB and grant approval from FRA, we are able to bring this train into the station.”

• Byl Herrmann, Interim President, Amtrak

Installation of OSEs is supported through FRA funding and builds on more than a decade of research and testing led by CN, Amtrak and the FRA.

The parties expressed gratitude to the FRA for its leadership and investment in OSE technology and to the STB for its guidance and encouragement, which was instrumental in helping the parties amicably resolve their long-running operating agreement dispute.