Quebecor World Logistics NEWS FLASH - Issue #222
Transportation Delays Continue; Flooding Mississippi Damages Midwest

June 17, 2008

Flooding Locations Update:

Severe flooding remains throughout the Midwest as the Mississippi River continues to expand beyond its banks, shutting down neighborhoods and towns throughout several states making travel to or from the affected areas arduous at best. Much of the flooding throughout the Midwest is funneling into the Mississippi River leading to the government’s prediction that 27 levees could overflow along the riverbanks if the weather persists and enough sand bags are not put into place. A levee broke this morning due to the swelling pressures of the Mississippi in Gulfport, Illinois, forcing several levees to be reinforced across the river in Burlington, IA.

Conditions will be somewhat contingent on the success of the locals adequately supporting levees along the Mississippi with sand bags. If levees continue to overflow or break with the rising Mississippi, flooding can be expected to continue throughout the week, severely hindering all transportation modes throughout the Midwest. Quebecor World Logistics will continue to leverage our relationships with over 9,300 carriers in our best efforts to limit potential delays to and from the affected areas.

Union Pacific Abbreviated Release:

Full release available here.

• Union Pacific continues to have embargoes in place this week for traffic moving across parts of our east-west main line across Iowa, with a permit application process in place to offer a regulated flow of traffic as our limited operation returns to normal

• Main line track in several UP subdivisions, including the River Subdivision between Kansas City and St. Louis, and on the Adams Subdivision between Chicago and Minneapolis and St. Paul, have been taken out of service intermittently over the past several days due to high water and washouts

• Iowa has seen the worst of the flooding, with 83 of 99 counties already declared disaster areas

• A section of our Overland Route on the east-west main line near Cedar Rapids remains out of service, along with the north-south spine line between Kansas City and Des Moines

• Currently anticipate re-opening the east-west main line this week, as water levels recede. At that point, Union Pacific crews will begin to work off the backlog of traffic as engineering continues repairs to track, yards and signal systems

Canadian National Abbreviated Release:

Full release available here.

June 17, 2008

• Previously reported flooding conditions in the Midwestern United States continue to affect CN's rail operations in the area

• As a result of these conditions, a series of rail embargoes has recently been imposed through the AAR. These embargoes affect some of CN's interchange traffic with other carriers. For a full list of rail embargoes, please visit http://aarembargo.railinc.com

• The bridge located near Cedar Falls, IA was repaired by 1500hrs CDT on Saturday, June 15th. As a safety precaution, speed restrictions remain in effect as trains go through the area. Some damage to CN signals in the area is causing additional delays

• According to current estimates, the bridge located near Denison, IA, on CN’s Omaha subdivision, will reopen on June 19th. Portions of CN's Osage subdivision, between Albert Lea, MN, and Waterloo, IA, remain affected by the weather conditions. According to current estimates, this subdivision is due to resume operations as of late Monday, June 16th

• Traffic has been running through the Neenah subdivision of the CN line since late Friday June 13th. A speed restriction remains in effect for the time being; as a result, traffic scheduled to move through this area is subject to some delays

BNSF Abbreviated Release:

Full release available here.

• Effects of flooding persist along the Mississippi and its tributaries, as well as at isolated locations on rivers in Iowa and Missouri

• BNSF's east-west main line across southern Iowa is closed due to flooding at Ottumwa

• Flooding on the Mississippi River has also closed BNSF's east-west line via Quincy, Ill., and main lines are out of service along the Mississippi at several locations between Burlington, Iowa, and St. Louis, Mo., and between St. Louis and Memphis, Tenn

• Although our Transcon main line remains open at Fort Madison, Iowa, trains through that area are experiencing some delay as we raise our main line tracks to keep them above water. The river is expected to crest at Fort Madison late Tuesday, June 17

• BNSF is managing traffic flows through the affected areas, detouring trains where alternate routes are available and making every effort to alleviate the effects of the flooding on your shipments. Although some shipments through the flooded areas are experiencing major delays, we are continuing to provide service to the extent possible and remain committed to doing so

U.S. Postal Service Abbreviated Release:

Full release available here.

Fond du Lac, WI, 54935

• Effective June 16, the Fond du Lac, WI, Post Office is closed until at least June 26. The office will not be accepting drop shipments. All drop shipments destined for Fond du Lac, WI, 54935, must be redirected to the Oshkosh, WI, Post Office at 1025 West 20th Ave, Oshkosh, WI, 54902

Over-the-Road Conditions

Iowa

Full release available here.

Over-the-Road Conditions, Iowa

Wisconsin

Full release available here.

Over-the-Road Conditions, Wisconsin

Quebecor World Logistics continues to monitor the impact of the flooding on all modes of transportation. QWL will do everything within our power to stay abreast of the situation and react accordingly to mitigate possible delays.