COMPANY NEWS

CN Customer Advisory Notice Related to Potential Strike at CP

April 20, 2018 – In the event of a labour disruption at CP, CN has advised that it will immediately take the following actions to avoid impacting its operational performance:

• Embargo all loads and revenue empties to and from all their interchanges.

• Continue to serve dual serve customers – based on its regular run rates. It will not accept additional empties or loads beyond the traffic that is being handled today.

• Continue to serve CN steamship lines at agreed-to allocation levels by port.

• Continue to directly serve the terminals of Vanterm and Centerm in the Port of Vancouver.

Further, it said, the co-production agreement in Southern British Columbia will not be in effect in the event of a strike. CN will continue to serve Vancouver exclusively on CN direct lines. Canaan Transport interprets these comments as an acknowledgement that CN will be affected by any strike at CP Rail.

CP Rail special notice on shutdown of services

April 19, 2018 – In a customer advisory sent Wednesday evening April 18, Canadian Pacific said it had received notice from the Teamsters Canada Rail Conference Train and Engine (TCRC) and the International Brotherhood of Electrical Workers (IBEW) that members of the respective unions would be withdrawing services to operate freight and passenger trains and to maintain CP’s signaling systems in Canada effective 0001, Saturday, April 21.

CP said it has commenced and will continue to execute a safe and structured shutdown of its train operations in Canada.

An embargo application for shipments routing to and from CP Canadian locations is in place to be effective 0001 Saturday April 21. The embargo applies to:

· All shipments originating in Canada that are billed to any Canadian or U.S. destination

· All shipments originating in the United States that are billed to any Canadian destination

· The embargo can be rescinded at any time

Canaan Transport has already received notices from carriers that they will stop accepting any containers for CP shortly. CP said it will continue to bargain in good faith with the TCRC and the IBEW and remains committed to achieving a win-win solution for the company and the two unions.

72 hour strike notice served on CP Rail

April 18, 2018 – Canadian Pacific Railway Limited (CP.TO) (CP) has received 72-hour strike notice from the Teamsters Canada Rail Conference-Train & Engine (TCRC) and the International Brotherhood of Electrical Workers (IBEW) of their respective plans to strike at 12:01 a.m. eastern time on April 21, 2018 .

CP has been working closely with both the TCRC and the IBEW to reach a negotiated settlement in the best interests of the entire CP family, its customers, shareholders and the broader North American economy.

"Serving a strike notice is part of the bargaining process that unions must follow if they want to be able to strike," said Keith Creel , CP President and CEO. "We remain committed to achieving a win-win solution and urge the two unions to work closely with us and the federal mediators to achieve a positive outcome as soon as possible in the hours leading up to the deadline."

CP continues to work closely with the TCRC and made significant movement in bargaining Monday afternoon, presenting the TCRC with new progressive three- and five-year agreement options.

CP is meeting with the IBEW later today and is presenting the union with streamlined three-year and five-year agreements for consideration. Canaan Transport will keep you updated on the progress.

CP Rail talks not optimistic

April 16, 2018 – Canadian Pacific Railway says a new labour agreement with thousands of train conductors and other workers remains elusive, less than a week before the deadline for the start of a strike that could cripple its network.

“Despite CP’s best efforts, a significant gap remains” between the company and two unions, the Teamsters Canada Rail Conference and the International Brotherhood of Electrical Workers, the Calgary-based railway said in a statement late Friday. A work stoppage could occur as early as April 21.

The talks come as the country’s second biggest railroad grapples with increased volumes following contract wins.

A work stoppage “will severely impact CP’s ability to continue to provide safe and efficient freight and passenger and commuter service,” Canadian Pacific said. “All customers and commodities would be impacted at a time when demand is soaring.”

CP Rail potential strike update

April 14, 2018 – Please see the following update:

CP and two of its unions – the Teamsters Canada Rail Conference – Train & Engine (TCRC) and the International Brotherhood of Electrical Workers (IBEW) – are currently working through the collective bargaining process. A significant gap remains between CP and these unions, but talks are ongoing. In the event an agreement cannot be reached, a work stoppage could occur as early as 00:01 on April 21. Given the challenging winter, increased demand across commodities and struggles for others in the transportation supply chain, the environment is such that there is no latent capacity in the system and recovery from a work stoppage, of any length, will be prolonged.

Currently, further meetings with the TCRC and the IBEW are planned for the week of April 16.

Potential CP Rail strike looming

April 12, 2018 – CIFFA (the Canadian Freight Forwarder’s Association), of which Canaan Transport is a member, has sent a letter to four federal ministers asking for their attention and intervention in a possible strike at CP Rail.

On April 11, CIFFA contacted the Honourable Patty Hajdu, Minister of Employment, Workforce Development and Labour, the Honourable Marc Garneau, Minister of Transport, the Honourable François-Philippe Champagne, Minister of International Trade, and the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, expressing concern and a sense of urgency regarding the movement of goods and intermodal marine transportation.

It underlined the potentially catastrophic impacts to Canada’s trade, to our ports and to our economy of the current labour negotiations at CP Rail and to urge the Government of Canada to take any necessary action to keep the railroad operating.

The union representing engineers and conductors employed with CP Rail voted to authorize strike action as early as April 21, according to an announcement made last week.

With a 92 percent margin in favour, the strike authorization affects 3,000 members across Canada and ‘a few hundred’ in the southeast corner of B.C., according to a Teamsters Canada Rail Conference spokesperson.

The last contract between the two sides expired at the end of December 2017, while a one-year ratification vote was rejected by union members in November after an initial agreement was struck a few months earlier.

The union argues that rising profits are based off cuts, layoffs, closures and working crews to the point of exhaustion, said a press release. Canaan Transport will continue to update its customers about a potential strike action.

CP Rail possible strike and termination of Toronto Montreal Expressway

April 9, 2018 – Canadian Pacific Railway conductors and locomotive engineers on Friday voted to authorize a strike action that could have the 3,000 workers walk off the job as early as April 21, Teamsters Canada said in a statement. The workers, whose collective agreement expired late last year, are asking for more predictable schedules to combat crew fatigue, among other demands, a Teamsters spokesman said. The union also said that it opposes cuts and concessions requested by CP, because the company is reporting higher profits and strong fundamentals.

In addition, on June 1, 2018 CP Rail will cancel its express service between Toronto and Montreal. Although unannounced publicly, Canaan Transport is already making contingent plans for our customers affected by this change.

Humboldt tragedy statement

April 6, 2018 – Canaan Transport Group Inc. extends its deepest condolences to the families and individuals affected by the tragic accident today. We mourn for those who passed away and pray for those who are recovery. May God Bless this situation.

Port of Montreal still has issues

March 26, 2018 – The trucking situation remained problematic on Friday at the Port of Montreal. Late gates were open, from 6:00 am until 11:00 pm, only for Maisonneuve Terminal at Termont. The port is aware of the situation and attempting to identify causes and longer-term solutions. Appointments could be considered as options.

Port of Prince Rupert update

March 25, 2018 – On Friday, the Port of Prince Rupert advised that recovery is well in hand. Ground count is way down. Average dwell times on the dock are now down to 3 days and falling. The port expects to issue a communication in the coming weeks outlining its action plan to ensure that the port stays fluid.