High Water in Southern Alberta and Saskatchewan

24 June 2010

Dear Valued Customer,

With the recent floods in Alberta and Saskatchewan and more rain in the forecast predicted over the next 72 hours, Environment Canada forecasting up to 20 millimeters of rain for parts of southern Alberta including Medicine Hat, where hundreds of residents have already been evacuated due to prior flooding.

High water levels has also affected CP's right of way on the Maple Creek Subdivision between Medicine Hat. AB, and Swift Current, SK. mainline is closed, but CPR have remained operational by rerouting traffic over other available rail lines. Train operations in this area remain suspended while crews work to restore service in the affected areas and detour/reroute options are being implemented. CP will not move import and export marine containers conveying perishable traffic arriving at CP inland terminals after cut-off on Monday, June 21, 2010. Any container arriving after cut-off on that date will be held at the origin terminal. Effective Wednesday, June 23, 2010, CP will not accept perishable containers at the gate. This includes shipments powered by clip-on generators.

CPR are also deploying over 60 management and unionized train crew employees and other resources to facilitate movement of traffic on other routes. This will allow CP to reroute traffic to the greatest extent possible over our northern route and via other railways. With the restoration today of our Montana Subdivision between Lethbridge and Coutts/Sweetgrass after last week's washout, we are now also able to use this line for both normal traffic and as an alternate route. CP engineers are employing significant resources to restore our route as soon as safely possible, and CP's operations team is working to move all traffic by continuing to expand our capability to move additional traffic on alternate routes.

In terms of delays, presently the impact is estimated 5- 6 days depending on weather conditions, currently the trans Canada highway is also closed due to sink holes which have been hampering the process to reach the affected areas.

We express our appreciation for your continued support and patience during this unforeseen circumstance.

Please feel free to contact your local APL Sales or Customer Service representative should you have questions or require further information on this matter.

Yours Sincerely,