CN Rail`s Response - City of North Vancouver

Delivering responsibly is one of the most important dimensions of what CN stands for. It drives how we
conduct our business every day – moving customers goods safely and efficiently; ensuring environmental
stewardship and adhering to the highest ethical standards, building safer, stronger communities.
In 2013 CN earned four major accolades in the area of sustainability:
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A position in the CDP’s Canada 200 Climate Disclosure Leadership Index
Inclusion on the Dow Jones Sustainability World Index, with a 98% score for our climate strategy
Being named one of the 50 Best Corporate Citizens in Canada by Corporate Knights
Being listed on the Global 100 Most Sustainable Companies in the World
In addition, CN is recognized as the most fuel efficient railroad in North America. Since 1991, CN’s fuel
efficiency has improved by 38% and today CN uses 15% less fuel per gross ton mile overall than the
industry average. In both 2012 and 2013, CN reduced fuel consumption by 1% per ton mile. As
compared with heavy trucking, shipping by rail is six times more fuel efficient; a train moves 1 ton of
freight 190 kilometres on a litre of fuel. This is a 75% reduction in GHG emissions moving freight by rail
rather than by heavy trucks, and a single train will take 280 transport trucks off the road.
CN, along with other railways, participated in the Railway Association of Canada (RAC)’s locomotive
emissions monitoring program , an MOU signed in May 2007 between the RAC, Environment Canada
and Transport Canada. CN has achieved a 14% reduction in GHG emissions intensity from 2005 levels ,
a 20% reduction since 2009 in building and yard natural gas and electricity GHGs and a 16% reduction in
waste since 2010.
CN tests natural gas/diesel fuel powered locomotives
between Edmonton and Fort McMurray, Alta.
EDMONTON, Sept. 27, 2012 — CN (TSX: CNR) (NYSE: CNI) announced today it is testing two mainline dieselelectric locomotives fuelled principally by natural gas in revenue service in northern Alberta.
Keith Creel, executive vice-president and chief operating officer, said: “CN launched this locomotive test to explore
the use of natural gas as a potential alternative to conventional diesel fuel. This reflects CN's continuing drive to look
for ways to improve operating efficiency and advance the company's sustainability agenda.
“Natural gas has a lower carbon content compared with diesel fuel, so that locomotives using natural gas – if the
railway technology employing this form of energy ultimately proves viable – would produce significantly fewer carbon
dioxide emissions.”
CN retrofitted the diesel engines in two 3,000-horsepower Electro-Motive Diesel (EMD, a subsidiary of Progress Rail
Services, a Caterpillar Company (NYSE: CAT)) -- SD40-2 locomotives to run on natural gas using conversion kits
supplied by Energy Conversions Inc. (ECI) of Tacoma, Wash. ECI says the hybrid fuel locomotive will reduce carbon
dioxide emissions by 30 per cent and nitrogen oxide emissions by 70 per cent over a locomotive duty cycle. Click on
here to view the locomotive set.
The retrofitted locomotives, using 90 per cent natural gas, with 10 per cent diesel fuel for ignition, are paired with a
natural gas fuel tender, or specially equipped and protected tank car, between them. The tender was upgraded by a
unit of Chart Industries, Inc., (NASDAQ: GTLS), located in New Prague, Minn. Natural gas fueling is being provided
by Encana Corporation (TSX: ECA) (NYSE: ECA).
The natural gas fuelled locomotives are testing on the 300-mile run north of Edmonton to Fort McMurray, rail gateway
to the oil sands region of northern Alberta. Fueling and maintenance take place in Edmonton.
CN is also working with EMD, Westport Innovations Inc. (TSX: WPT) (NASDAQ: WPRT) and Gaz Métro Transport
Solutions (GMTS), a wholly owned subsidiary of Gaz Métro, on a longer term project to explore a state-of-the-art
natural gas railway engine and a standardized railway tender.
CN will provide two 4,300-horsepower SD70M-2 EMD locomotives for the test program. EMD, in addition to the
engine conversion, will supply technical expertise to integrate the natural gas engine, related components and
controls into the locomotive, including Westport™ high-pressure direct injection (HPDI) technology and natural gas
fuel system technologies. GMTS will develop natural gas liquefaction requirements and distribution systems. An
innovative natural gas tender for this initiative will be jointly developed by the project partners.
The CN-led group expects to conduct engine laboratory tests in 2013 and to roll out the prototype main-line
locomotives for road tests in 2014.
As part of the project, Westport secured a funding commitment of C$2.3 million from the Canadian government's
Sustainable Development Technology Canada program to develop the HPDI technology for high-horsepower
applications.
CN leads the North American rail industry in fuel efficiency, consuming close to 15 per cent less fuel per gross-tonmile overall than the industry average. CN's lower fuel consumption results in significantly fewer greenhouse gas
emissions.
Forward-Looking Statements
Certain information included in this news release constitutes “forward-looking statements” within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws. CN cautions that,
by their nature, these forward-looking statements involve risks, uncertainties and assumptions. The Company
cautions that its assumptions may not materialize and that current economic conditions render such assumptions,
although reasonable at the time they were made, subject to greater uncertainty. Such forward-looking statements are
not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which
may cause the actual results or performance of the Company or the rail industry to be materially different from the
outlook or any future results or performance implied by such statements.
Important risk factors that could affect the forward-looking statements include, but are not limited to, the effects of
general economic and business conditions, industry competition, inflation, currency and interest rate fluctuations,
changes in fuel prices, legislative and/or regulatory developments, compliance with environmental laws and
regulations, actions by regulators, various events which could disrupt operations, including natural events such as
severe weather, droughts, floods and earthquakes, labor negotiations and disruptions, environmental claims,
uncertainties of investigations, proceedings or other types of claims and litigation, risks and liabilities arising from
derailments, and other risks detailed from time to time in reports filed by CN with securities regulators in Canada and
the United States. Reference should be made to “Management's Discussion and Analysis” in CN's annual and interim
reports, Annual Information Form and Form 40-F filed with Canadian and U.S. securities regulators, available on CN's
website, for a summary of major risks.
CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in
circumstances, or changes in beliefs, unless required by applicable Canadian securities laws. In the event CN does
update any forward-looking statement, no inference should be made that CN will make additional updates with
respect to that statement, related maters, or any other forward-looking statement.
About CN
CN – Canadian National Railway Company and its operating railway subsidiaries – spans Canada and mid-America,
from the Atlantic and Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert, B.C.,
Montreal, Halifax, New Orleans, and Mobile, Ala., and the key metropolitan areas of Toronto, Buffalo, Chicago,
Detroit, Duluth, Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul, Memphis, St. Louis, and Jackson, Miss.,
with connections to all points in North America.
Contacts
Media
MarkHallman
Director
Communications and Public Affairs
905-669-3384
416-458-0741