Transportation & Logistics Council Annual Conference

2013

Intermodal - What You Need to

Know

Integra Logistics Services, LLC

Corporate Headquarters: Houston, TX

Operating Offices:Chicago, ILDallas, TX

Los Angeles, CAHouston, TX

Rutherford, NJSt. Louis, MO

Tampa, FL

Mission Statement

Utilize Integra’s experienced personnel and its proprietary web

based technology systems to deliver an unparalleled customer service experience to our clients

and their customers

Products and Services Intermodal ServicesHighway ServicesSupply Chain SolutionsWarehousing SolutionsTechnology SystemsLoad Design & Product Integrity Solutions

Large network of flexible capacity

Supply Chain strategy expertise and best practices

Combine advantages of single source with flexibility of large provider base

Technology

Value to Customers

Rapidly Changing TimesPope’s inauguration in St. Peters Square in Rome. A very telling illustration as to our advancement in technology, just over the course of 8 years.

What is Intermodal Transportation?

A seamless form of transportation via two or more modes, with authority under a single

bill of lading.

Union Pacific Railroad (UPRR) Burlington Northern Santa Fe (BNSF) CSX Norfolk Southern (NS) Canadian National (CN) Canadian Pacific (CP) Kansas City Southern (KCS) Florida East Coast (FEC)

North American Rail System

Intermodal Railroad Network

Containers (COFC) 20’ 40’ 45’ 53’

Trailers (TOFC) 28’ 53’

Refrigerated Trailers/Containers 20’ 40’ 45’ 53’

Bulk ISO Tanks Rail Decks – 53’ flatbed

Equipment Types Moving Intermodal

Industry Equipment Supply

Railroad Owned Dry Containers

48% Private

Owned Dry Containers

52%

Private/Railroad Container Assets

North American Domestic Containers ~175,000

What is Driving Intermodal Growth?

Today

2020

Highway Congestion is bad and getting worse

Equipment and driver shortages make service performance increasingly erratic

Fuel increases introduce sudden spikes in freight rates

Hours of service changes

The Federal Motor Carrier Safety Administration (“FMCSA”) published final driver hours of service rules in December 2011, to be effective July 1, 2013. Among the changes are more restrictive requirements covering driver use of the 34-hour restart rule and a new mandatory 30-minute rest period after 8 hours on duty. The trucking industry association and consumer advocate groups both appealed these changes before the court in March 2013. The court has not yet issued a ruling. Assuming the rules are adopted without change, we currently believe the new rules will result in a decrease in truck productivity and could tighten up supply relative to demand in the freight market.

What is Driving Intermodal Growth?

State of the Trucking IndustryGrowth was the name of the game in

intermodal for 2012. Most providers saw shippers shift their capacity strategy from over- the-road to intermodal to eliminate some of the pressures of the long haul trucking industry such as fuel cost and driver capacity. As the railroads continue to improve reliability in their network, intermodal becomes a much more viable option even with longer transit times. Shippers are adapting and taking advantage by just planning out longer lead times. Dray and railroad costs continue to push rates higher, but at a much more tempered pace than the over the road carriers. Market analysts anticipate the same in 2013 with rates climbing about 3-5 percent overall.

State of the Trucking IndustryThe worsening driver shortage will continue to impact capacity and apply strong upward pressure on rates in 2013 regardless of the direction of the economy. Market analysts suggest in 2013 truckload rates will climb about 6-8 percent overall. Simply stated – it is widely accepted that the driver shortage is a long-term trend in the trucking industry that will be minimally impacted by the monthly swings in the U.S. economy. The most recent survey of for-hire trucking executives by Randall Reilly Market Place Survey bears this point out. In February of 2011, driver availability became the area of greatest concern for trucking executives and has remained the top concern of executives since by a wide margin in this survey.

Transportation line haul savings vs. OTR Lower FSC vs. OTR based on mileage Capacity Speed and reliability has and continues to

improve Length of haul that works has been reduced High value cargo services available Claims are low Green Friendly

Intermodal Benefits

Contracts with all class one, smaller regional, Mexico, & Canadian railroads.

Multiple resources for capacity The ISP manages drop pools and equipment Creating synergies within ISP’s network Optimizing shippers network The ISP arranges all legs of the move with

service providers including origin drayage, rail linehaul, and destination drayage

Benefits of Intermodal Service Providers (ISP)

The ISP monitors shipments and handles all service issues directly with service providers to ensure on-time deliveries.

Customer asset reduction through outsourcing.

Takes ownership of the claims process Communications

Benefits of Intermodal Service Providers (ISP)

Employ External ExpertiseFew mid sized manufacturers have the time and internal expertise to effectively manage day-to-day delivery operations. Most understand this reality and readily look for external expertise.

Transportation Strategies Rank

Use capable service providers 1 Enhance transportation processes 2 Adopt transportation technology 3* Collaborate with major customers 3*

Survey Says

Collaborative DistributionAccording to mid-sized manufacturers, their quest for greater collaboration is enhanced by 3PL providers with strong customer relationships.

3PL Capabilities Rank Customer relationship management 1 Flexible transportation capacity 2 Data capture and analysis 3 Performance metrics compliance 4 Logistics network optimization 5

Survey Says

Integra Logistics Services, Inc.Corporate Offices

4760 World Houston Parkway #180Houston, TX 77032

281-227-8888www.intlog.com

People + Technology = Performance