Filed by Canadian National Railway Company
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: Canadian National Railway Company
Commission File No. 333-94399
North America's Railroad FOR IMMEDIATE RELEASE
Stock symbols: TSE: CNR / NYSE: CNI
www.cn.ca
CN/BNSF combination offers Quebec shippers
and the Port of Montreal new-competitive
rail links to key U.S. markets and Mexican gateways, says CN's
Paul M. Tellier
MONTREAL, March 6, 2000 -- The Canadian National/Burlington Northern Santa Fe
combination will expand the market reach of Quebec shippers and the Port of
Montreal significantly via new truck-competitive rail links to major United
States markets and Mexican gateways, says CN President and Chief Executive
Officer Paul M. Tellier.
Tellier said today the combination responds to powerful forces that are
reshaping the North American economy - the rapid rise of north-south trade; the
increasing integration of the Canadian, U.S. and Mexican economies; and
shippers' demands for more efficient transportation services to markets in all
three countries.
"The combination of CN and BNSF joins ... the two most efficient railroads in
North America," Tellier told the Canadian Club of Montreal. "They will operate
as an integrated rail network with a continental reach, with critical new
north-south corridors."
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Tellier said trade is essential to the Quebec economy - 84 per cent of its
exports are destined for the U.S. - and that the CN/BNSF combination will make
it easier for Quebec business to penetrate new markets in the U.S. and Mexico.
Traditionally, CN has moved Quebec products - 120,000 carloads alone last year
- - to U.S. points nearest the province: newsprint to Chicago; lumber to
Pennsylvania and aluminum ore to processors to the east. That's left truckers
to seize the huge market for north-south traffic bound for consuming areas
deeper in the North American interior.
Tellier said the combination will change that. "With the combination with BNSF,
we can offer single-line service to new markets in Houston, Denver and Los
Angeles. Plastics and chemical companies will have single-line service to Texas
and Mexico. Domestic intermodal customers will have a network that puts most of
the continent within reach on a single line.
"The Port of Montreal can attract traffic for the Western U.S. We can offer
trans-Atlantic shipping companies a competitive alternative to markets in
Minneapolis-St. Paul now served" by a rival railroad.
Tellier said the single-line service capabilities of the combined CN/BNSF will
enhance rail competitiveness, benefiting rail customers. Single-line service
"is -seamless...And shippers don't lose time through switching and
interchanging. On a single line, we reduce car cycle time, increasing the
capacity of our system. We've already seen this happen since our merger with
Illinois Central."
<PAGE>
CN and Burlington Northern Santa Fe Corporation announced their proposed
combination through a new company, North American Railways, Inc. on Dec. 20,
1999. The combination will create a rail system stretching 50,000 miles,
linking eight Canadian provinces and 33 states in the western and central
United States, and employing 67,000 people. The combined system will offer
North American rail shippers greatly expanded single-line service options and
gateway routings; a coordinated marketing plan; reduced transit times; enhanced
reliability; unified customer service information, including easier tracking,
tracing and ordering; simplified billing; greater capacity; and improved asset
utilization.
CN and BNSF will remain separate and intact, with North American Railways
providing strategic direction and coordination for the carriers. The new
corporation's headquarters will be in Montreal; Tellier will be its chief
executive officer; no one stockholder will be able to own more than 15 per cent
of its voting shares; and its business will be conducted in both of Canada's
official languages.
Tellier said the end-to-end nature of the combination and the common
information technology platform shared by CN and BNSF will permit a smooth
integration of rail services.
Tellier said the combination will raise the bar for rail industry
consolidations. That's why CN and BNSF have taken the unprecedented step of
guaranteeing shippers equal or better rail service over their railroads after
they are combined. Today, CN and BNSF provide the best service in the rail
industry.
In addition, CN and BNSF will also guarantee route options for shippers. This
means existing gateways will remain open after the combination takes effect,
and a rail alternative will be assured for the very few shippers who would
otherwise have one rather than two railroads to use after the combination is
effective.
<PAGE>
Canadian National Railway Company 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 cities of Toronto, Buffalo, Chicago, Detroit, Memphis, St.
Louis, and Jackson, Miss., with connections to all points in North America.
CN and North American Railways, Inc. have filed a registration statement on
Form F-4/S-4 with the United States Securities and Exchange Commission (SEC) in
connection with the securities to be issued in the combination. The
registration statement has not been declared effective. This filing also
includes the preliminary proxy statement for the shareholders' meetings to be
held for approval of the combination. Investors should read this document and
other documents filed with the SEC by CN, BNSF and North American Railways,
Inc. about the combination because they contain important information. These
documents may be obtained for free at the SEC's Web site, www.sec.gov. Other
filings made by CN on Forms 40-F and 6-K may be obtained for free from the CN
Corporate Secretary's office at (514) 399-6569. Other filings made by BNSF on
Forms 10-K, 10-Q and 8-K may be obtained for free from the BNSF Corporate
Secretary's office at (817) 352-6856. For information concerning participants
in CN's solicitation of proxies for approval of the combination, see "Certain
Information Concerning Participants" filed by CN under Rule 14a-12. For
information concerning participants in BNSF's solicitation of proxies for
approval of the combination, see "Certain Information Concerning Participants"
filed by BNSF on Schedule 14A under Rule 14a-12.
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Contact: Mark Hallman
System Director, Media Relations
(416) 217-6390
