Canadian National. Normand Pellerin Assistant Vice President Environment. Canadian National Box 8100 Montreal, Quebec Canada H3C 3N4

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1 March 15, 2017 Canadian National Normand Pellerin Assistant Vice President Environment Canadian National Box 8100 Montreal, Quebec Canada H3C 3N4 Canadien National Vice-président adjoint Environnement Canadian National C.P Montréal (Québec) Canada H3C 3N4 Ms. Lesley Griffiths Panel Chair c/o Canadian Environmental Assessment Agency 160 Elgin Street Ottawa ON, K1A 0H3 By Dear Ms. Griffiths: I am writing in response to your letter dated March 1, 2017 regarding the Panel s intention to conduct a tour of an intermodal terminal to gain an understanding of how an intermodal terminal operates. In response to your request and to aid in the panel s selection of a suitable terminal to tour, appended to this letter is an overview of CN s intermodal network, as well as a brief description of those intermodal terminals that most resemble the Milton Logistics Hub (the Project ) in terms of container throughput. As requested, for each of these terminals, information is provided regarding: - Location of the terminal; - Spatial orientation; - Proximity to other infrastructure; - Size of the terminal and terminal infrastructure; - Age of the terminal; and - Estimated gate volumes. We trust this information will be helpful in the decision as to which intermodal facility is best suited for a tour. Should the panel require any further information, please do not hesitate to contact us. Sincerely, <Original signed by> Normand Pellerin Assistant Vice-President, Environment Cc: Dr. Isobel Heathcote, Review Panel Member Mr. William McMurray, Review Panel Member

2 Overview of CN s Intermodal Network CN operates an extensive network of 10 inland intermodal terminals across Canada and 9 in the United States and serves several ports on the east, west and gulf coasts. Each terminal is unique in terms of size and operation in order to meet the needs of the local and national economies, as well as to ensure CN s operation remains efficient in meeting customer demands. Each Canadian terminal plays a critical role in the overall network ensuring that Canadians and Canadian businesses are able to access everyday goods easily at the lowest possible cost and helping Canada to remain competitive in the global marketplace. CN s intermodal network is displayed in the figure below. As indicated in the EIS, the Project has an anticipated capacity of 450,000 containers per year at full capacity. To ensure that the terminal toured by the panel is reflective of the anticipated conditions at the Milton facility, only existing terminals that are within a range of 150,000 to 550,000 annual containers handled are described further. Only one terminal in the United States, the Memphis Logistics Park (MLP), falls within the above criterion. However, as the Project is located in Canada and the MLP is a combined CN/CSX terminal with a considerably different operating model than the Project, additional details have not been provided on the MLP. The MLP operates primarily using gantry cranes and is primarily wheeled storage (containers on chassis) versus a mobile reach stacker crane operation with a mix of ground storage (stacked containers) and wheeled storage as proposed for the Project. In Canada, Prince George, Saskatoon, Winnipeg, Moncton and Halifax are all below the 150,000 annual containers threshold while Brampton, at just below 1 million containers handled per year, is significantly greater than the volume expected in Milton. The remaining terminals that meet the volume criterion and have the same operating model as the Project are: - Calgary Logistics Park (CLP) - Montreal Intermodal Terminal (MIT) - Edmonton Intermodal Terminal (EIT) - Vancouver Intermodal Terminal (VIT) For reference, a summary of the terminal characteristics for the Project has also been provided below.

3 The Proposed Milton Logistics Hub The proposed Milton Logistics Hub is located in the GTHA within the Town of Milton in the Regional Municipality of Halton. The terminal is located adjacent and parallel to the existing mainline on properties entirely owned by CN. The terminal is located in close proximity to highways 401, 403 & the 407 ETR. The proposed terminal location is bordered by residential to the north and zoned agricultural lands to the east, west and south. The majority of the Project site is to be constructed on lands identified in the most recent Regional Official Plan as employment lands as of There is a 1.7 km access road on CN property leading to a queuing area on CN property. At the time of construction, and based on current Regional planning documents, the access road will outlet onto a six lane road. The table below outlines the key physical characteristics of this terminal. Installation of Gate Systems Number and length of tracks Description 400 acres (162 hectares) Speed Gate TM System 6 inbound lanes & 4 outbound lanes 3 pad tracks and 3 support tracks approximately 8,500 ft in length each Operates using mobile reach stacker cranes (8-12 cranes) Terminal Opening Date Anticipated opening date Gate volumes 800 trucks in/out per day

4 Calgary Logistics Park (CLP) The most recently built intermodal facility of CN s Canadian terminals, the CLP was built in 2013 on a greenfield site using the most current technologies. The logistics park is surrounded by residential and agricultural lands with several ponds, streams and woodlots in close proximity. The CLP has an 800 m access road that outlets onto a two lane road. The facility is located just over 6 kilometres from the nearest major highway (Highway 201). The terminal was constructed parallel to an existing mainline. Relative to the other terminals, the administration building at the CLP most closely reflects the proposed administration building and garage anticipated for the Project. The table below outlines the key physical characteristics of this terminal. Description 350 acres (140 hectares) Installation of Gate Systems 2013 (Speed Gate TM System) Most reflective of the planned system at Milton Number and length of tracks Terminal Opening Date inbound lanes & 3 outbound lanes 2 pad tracks and 3 support tracks approximately 9,000 ft in length each Operates using mobile reach stacker cranes (6 cranes) Gate volumes ~500 trucks in/out per day in 2016

5 Montreal Intermodal Terminal (MIT) The MIT is located in a repurposed section of the Montreal Taschereau yard. Taschereau yard is a general purpose rail yard which supports several different business units including intermodal operations. As shown in the figure below, the MIT is located in close proximity to highways 520, 13, 20 and 40 at the junction of two mainlines and runs parallel to one and perpendicular to the other. To the east and south of the terminal are residential communities and a golf course. To the north and west are mixed use commercial and light industrial areas. Similar to the Project, there is a long access road on CN property leading to a queuing area on CN property. The access road outlets onto a four lane road. The table below outlines the key physical characteristics of this terminal. Installation of Gate Systems Number and length of tracks Terminal Opening Date 2002 Description 220 acres (89 hectares) 2002 Speed Gate TM System similar system to the planned system at Milton but different manufacturer 6 inbound lanes & 4 outbound lanes 4 pad tracks and 3 support tracks approximately 7,500 ft in length each Operates using mobile reach stacker cranes (9 cranes) Gate volumes ~800 trucks in/out per day in 2016

6 Edmonton Intermodal Terminal (EIT) The EIT was built in 2001 on a greenfield site at the northern end of Edmonton near CN s Walker rail yard. The Terminal is surrounded by a mix of residential communities and commercial/light industrial lands. While the area is undergoing development, the terminal is located in proximity to some small water bodies/ wetlands. The EIT has a 250 metre access road which outlets onto a four lane road. The facility is located just over 1 kilometre from the nearest major highway (Highway 16). The terminal was constructed at a junction between two railway mainlines allowing for train access to the terminal from both ends. The table below outlines the key physical characteristics of this terminal. Description 130 acres (55 hectares) Type of Gate Systems 2014 (Speed Gate TM System) Reflective of the planned system at Milton 4 inbound lanes & 2 outbound lanes Number and length of tracks 2 pad tracks and 6 support tracks approximately 7,500 ft in length each Operates using mobile reach stacker cranes (5 cranes) Terminal Opening Date 2001 Expansion in 2012 Gate volumes ~375 trucks in/out per day in 2016

7 Vancouver Intermodal Terminal (VIT) The VIT was constructed on a greenfield site on the eastern edge of Vancouver in the city of Surrey. The VIT is adjacent to light industry and a residential community that overlooks the terminal on the southwest side. A large woodlot is adjacent to the Terminal on the northeast side and Highway 17 parallels on the southwest side. The VIT has a 650 metre access road which outlets onto a Highway 17, a four lane road. Highway 17 is considered to be a major Highway with the intersection approximately 250 metres from the start of the CN access road. The terminal was constructed parallel to the mainline allowing for train access to the terminal from both ends. The table below outlines the key physical characteristics of this terminal. Type of Gate Systems Number and length of tracks Terminal Opening Date 1992 Description 90 acres (35 hectares) 2007 Speed Gate TM System similar to the planned system at Milton but different manufacturer 3 inbound lanes & 3 outbound lanes 2 pad tracks and 2 support tracks approximately 5,500 ft Operates using mobile reach stacker cranes (7 cranes) Gate volumes ~600 trucks in/out per day in 2016

8 Summary of s The table below summarizes the information provided in the previous pages to facilitate the comparison between the terminals meeting the annual volume criterion. As shown in the table below, CN s more recent terminals include more acreage to provide additional buffer lands between surrounding infrastructure and the terminal where possible. In the case of the CLP for example, which was constructed on a greenfield site, additional space was required for the stormwater management ponds and other facilities versus MIT, where the intermodal terminal was constructed in a repurposed section of an existing rail yard where these types of utilities and facilities already existed as part of the general purpose yard. Additionally, it is important to note that each terminal is unique in its operation in terms of truck volumes irrespective of the acreage of the terminal. The types of trips made to and from the terminal influence the overall number of trips generated. As an example, a terminal may have several empty trips where a truck is arriving or leaving without a container to either drop off or pick up versus a scenario where a truck arrives with a container and departs with another container, minimizing the number of empty moves. Milton Logistics Hub Calgary Logistics Park Montreal Intermodal Terminal Edmonton Intermodal Terminal Vancouver Intermodal Terminal (acres) Installation of Gate Systems Similarity to the Project Speed Gate System TM 2013 High Medium 2014 High 2007 Low 6 inbound 4 outbound 4 inbound 3 outbound 6 inbound 4 outbound 4 inbound 2 outbound 3 inbound 3 outbound Number of pad tracks 3 pad tracks 2 pad tracks 4 pad tracks 2 pad tracks 2 pad tracks Number of support tracks 3 support tracks 3 support tracks 3 support tracks 6 support tracks 2 support tracks Average track footage 8,500 ft 9,000 ft 7,500 ft 7,500 ft 5,500 ft Number of Mobile Cranes 8-12 mobile cranes 6 mobile cranes 9 cranes 5 cranes 7 mobile cranes 24 hrs/7 days 24 hrs/7 days 24 hrs/7 days 24 hrs/7 days 24 hrs/7days Terminal Opening Date Anticipated Approximate gate volumes in trucks in/out per day ~500 trucks in/out per day ~600 trucks in/out per day ~375 trucks in/out per day ~600 trucks in/out per day Surrounding Infrastructure Residential/ Agricultural Residential/ Agricultural Light Industrial (in general purpose railyard) Residential/ Light Industrial Residential/ Light Industrial/ Woodlot Similar administration Building/Garage to the Project - Yes No No No