(erielack) NS gets trackage rights on ex-DL&W lines

["TIMOTHY O. STUY" <njmidland_@_compuserve.com>]

July 2, 2002

                                        Canadian Pacific Railway And
Norfolk Southern =

                                        Streamline Operations In Northeas=
t
U.S. =


                                        CALGARY, AB and NORFOLK, VA --
Norfolk Southern Corporation (NYSE: NSC) =

                                        and Canadian Pacific Railway
(NYSE/TSE: CP) today announced that CPR =

                                        has granted Norfolk Southern
Railway Company (NS) trackage rights =

                                        between Sunbury, Pennsylvania and=

Mechanicville, New York. The granting =

                                        of trackage rights is part of a
continuing joint effort by both =

                                        companies to improve freight
service to upstate New York, northern =

                                        Pennsylvania and New England.
                                        "This agreement is part of our
mission to build strong strategic =

                                        partnerships with North American
railways that deliver value to =

                                        customers and shareholders alike,=
"
said Fred Green, CPR's Senior Vice =

                                        President of Marketing & Sales.
"The agreement is in line with CPR's =

                                        strategy to maximize the value of=

its network in the Northeastern U.S. =

                                        by creating additional traffic
density on our Delaware & Hudson (D&H) =

                                        lines, which will aid in improvin=
g
the financial performance of the D&H =

                                        substantially."
                                        "This agreement further improves
our competitive routes between New =

                                        England and the Midwest and
Southeast," said Jim McClellan, Norfolk =

                                        Southern's senior vice president
Strategic Planning. "We also gain a =

                                        new, direct and efficient route
between central New York state and =

                                        points south." =

                                        To accommodate the increase in
traffic, a new passing siding will =

                                        be constructed on CPR's D&H line =
at
Clarks Summit, Pa. CPR, NS and the =

                                        Commonwealth of Pennsylvania will=

jointly fund the $2 million project. =

                                        Additionally, the new agreement
modifies existing trackage and haulage =

                                        agreements. =

                                        The agreement expands on the
successful partnership between NS and =

                                        CPR in the Northeast. In 1998, NS=

and CPR completed a $12 million =

                                        upgrade of the Sunbury Line betwe=
en
Sunbury and Scranton. In 2001, CPR =

                                        and NS introduced a new intermoda=
l
service between the Port of New =

                                        York/New Jersey, Montreal and
Toronto. =

                                        Canadian Pacific Railway is North=

America's first transcontinental =

                                        railway, and is the only
transcontinental carrier with direct service =

                                        to the U.S. Eastern Seaboard. CPR=
's
14,000-mile network serves the =

                                        principal centres of Canada, from=

Montreal to Vancouver, as well as the =

                                        U.S. Midwest and Northeast region=
s,
and links North America with Europe =

                                        and the Pacific Rim. Alliances wi=
th
other carriers extend CPR's market =

                                        reach beyond its own network in t=
he
U.S., and into the major business =

                                        centres of Mexico. For more
information, visit CPR's website at =

                                        www.cpr.ca.
                                        Norfolk Southern Corporation is a=

Virginia-based holding company =

                                        with headquarters in Norfolk. It
owns a major freight railroad, Norfolk =

                                        Southern Railway Company, which
operates approximately 21,500 route =

                                        miles in 22 states, the District =
of
Columbia and the province of =

                                        Ontario. For more information,
visit Norfolk Southern's website at =

                                        www.nscorp.com.

------------------------------