MONTREAL, July 21 /PRNewswire-FirstCall/ - CN (TSX: CNR) (NYSE:CNI) is developing a fast-growing business supplying jet fuel to airlines serving Toronto's Lester B. Pearson International Airport.

The effectiveness of CN's rail pipeline for jet fuel to Pearson prompted the construction of a C$65-million new Jet Fuel Rail Offloading, Storage and Distribution Facility near the airport, adjacent to CN's Malport rail yard in northwest Toronto. Today, CN and airline and supplier representatives celebrated the official opening of the terminal.

James Foote, executive vice-president, Sales and Marketing for CN, said: 'The changing dynamics of jet-fuel supply for airlines serving Pearson airport now require the carriers to strategically source fuel across the globe, and this has opened the door to rail to play an increasingly important role in these longer supply chains. We've developed a substantial business at Pearson - one that didn't exist a half-decade ago - and we see potential for future jet-fuel traffic moves in Vancouver, Calgary and Winnipeg.'

New jet-fuel sourcing strategies in Canada follow the closing of some refineries and the decisions of some oil companies to shift production from aviation fuel to diesel and other distillates in greater demand. While only 10 per cent of Canada's aviation fuel was imported eight years ago, imports accounted for 33 per cent last year.

James Fee, president of FSM Management Group Inc. of Dorval, Que., said: 'The new Toronto transloading terminal is testament to the effectiveness of CN in assuring a continual flow of jet fuel for the airlines at Pearson. And we see further expansion in the future.'

FSM administers the new Pearson rail jet fuel terminal on behalf of the 33-airline member Toronto Fuel Committee, which leases the facility from owner Pearson International Fuel Facilities Corporation. PIFFC owns all fuel facilities at Pearson, including the storage tanks, operation building and offices, hydrant carts and fuel tankers.

Fee said FSM expects to transfer 775,000,000 litres of jet fuel to the new terminal from tank cars in 2009, which will represent close to 40 per cent of Pearson's annual requirement of two billion litres, based on an average of 20 tank cars per day.

Air Canada was the impetus for the new terminal.