Toll Freeze and New Tariff Target Growth in Traffic

February 19, 2008

Cornwall, Ontario (February 19, 2008) – The St. Lawrence Seaway Management Corporation (SLSMC) is pleased to announce a three-year toll freeze that, together with a revised tariff structure, will provide a significant boost to new business growth. With the goal of maximizing the volume of existing commodities, while at the same time attracting new cargoes to the Seaway / Great Lakes System, the new tolls structure underscores the commitment of the SLSMC and Transport Canada to increased use of the Seaway.

“By maintaining stable rates through the 2008, 2009 and 2010 seasons and by introducing targeted incentives, we are setting the stage for our stakeholders to aggressively seek new business in an era of escalating costs, and to advance their business plans with a greater degree of certainty” stated Dick Corfe, SLSMC President and CEO.

A New Business Incentive Program targeted at carriers and shippers will allow for a 20% discount on cargo tolls over the course of three years for commodity / origin / destination combinations approved by the Corporation as “new business”. To be eligible, a carrier will have to submit to the SLSMC an application for the proposed cargo / origin / destination combination. Notably, all containerized cargo movements are eligible for the discount, from 2008 to 2012.

A Volume Rebate Incentive Program targeted at shippers has also been introduced. Offering a 10% reduction on cargo tolls applicable to incremental volumes meeting a set of criteria, this program is designed to stimulate movement of the Seaway’s traditional staple cargoes. Applicable criteria can be found within the full 2008 Schedule of Tolls.

To encourage smaller cargo vessels and shipments to come into the system, the Welland Canal lockage fees have been restructured, with a net benefit applicable to all vessels. The fixed charges per lock transit have been replaced with charges proportional to a vessel’s GRT. This change will benefit small and medium sized vessels. Larger vessels will benefit from a cap placed on the maximum charge per vessel.

In a bid to promote short sea shipping within the Seaway / Great Lakes System, the definition of domestic cargo now includes all movements between any combination of Canadian and American points within the Seaway / Great Lakes System. This will allow these intra-system movements to be subject to advantageous bulk rates.

To assist our customers in qualifying for these incentives, the SLSMC has established the [email protected] e-mail address. Clients and potential clients may submit their inquiries to this address.

For more information, please consult the Web site.