Key Issues Raised by Rail Freight Service Review Panel (RFSR) CN Response – a Comprehensive Service Agenda of Continuous Improvement and Supply Chain Collaboration Key RFSR Issues Need to improve rail service on a commercial basis Need to establish supply chain collaboration agreements with operational/commercial stakeholders Need to enhance supply chain visibility through better performance reporting on a bilateral basis Need to address other key issues: Dispute Resolution mechanism Non Transportation charges Central Elements of CN’s Service Agenda Proof Points Major CN effort to improve fulfillment of customer car orders for shippers of industrial products 94% weekly car order fulfillment in 2012 Scheduled Grain Plan -- breakthrough in CN’s car spotting reliability at grain elevators in the countryside 85% daily spotting reliability since January 2010 New and improved notification of service changes and exceptions at customer facilities Improved communication and listening by CN confirmed in regular customer surveys Fastest, best quality terminal to terminal service, a top CN priority CN recognized by RFSR as industry leader Major CN push to implement collaboration agreements in the last two years Agreements with all major ports and terminals in Canada Signed service agreements with customers across all business segments Agreements with customers representing close to 50% of revenues Seeking similar agreements with smaller customers Reached out twice to all CN customers to offer service-level agreements Core component of CN’s strategic agenda, enabling the development of a much more efficient supply chain Built trust and confidence required to manage information Intermodal container business, a prime example of customer engagement through daily sharing of key performance metrics Significant reduction in time spent by containers at ocean terminals, making Canadian ports highly efficient and competitive Daily collaboration with Canadian grain companies, coal producers, generating greater efficiency and fluidity in these supply chains Recent record grain traffic performance on West coast, increased coal exports Revamped, efficient, commercial CN dispute resolution mechanism Commercial Dispute Resolution process available and widely communicated to all customers Major initiative to address this pain point by improving accuracy of invoicing Invoicing accuracy at 98%, significant improvement in last three years