Supporting Service Excellence

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1 Supporting Service Excellence Barry Michaels, VP Intermodal Operations November 4, 1 Service Improvement Cycle High Performance Standards Asset Utilization Technology Drivers Continuous Improvement Capital Process Technology Organization 2 1

2 Premium Operations Overview Key Responsibilities Ramp Operations Logistics Train / Shipment Management Terminal Capacity Modeling Fleet Plan / Asset Management / Maintenance & Repair Department Highlights Intermodal Automotive Workforce * 1,200 ~500 Facilities Equipment Annual Budget (In Millions) ~50,000 Containers ~32,500 Chassis ~15,500 Multi-Levels ~1,600 Boxcars $300 $35 *Includes third party contractors 3 Intermodal Network Performance 63 Intermodal Customer Satisfaction Performance Drivers Right Container / Right Train / Right Day Intermodal 7-Day Carloadings (In Thousands) On-Time Origin Departures Road Performance Destination Arrival to Availability 4 2

3 Managing Service Variability Drivers/Enablers Intermodal Train Arrival Span (In Hours) Good 14-57% Gate/Train Reservation System Resource Availability Disciplined Plan Execution Root Cause Analysis Development of Action Plans to Address Root Cause Failures 2008 Sept YTD 6 Supports Customer Supply Chain Management Reduces Terminal Dwell Reduces Capital Requirements 5 Intermodal Train Size Productivity Average Intermodal Train Size (Containers and Trailers Per Train) Intermodal 7-Day Carloadings (000s) 1 Unit Saves 150 Train Starts Annually! Drivers/Enablers Lane Density Equipment Fleet / Mix Weight Limits Route Restrictions Business Decision Rules Unified Plan Fleet Plan Capital Reduced Train Starts Improved Fleet Utilization Increased Profitability 6 3

4 of a Modern Intermodal Terminal Technology Drives Productivity and Service New Facilities are State-of-the-Art Vantage TOS GPS Crane Guidance Automated Gate System (AGS) Optical Character Recognition Imaging (OCR) Automated Inventory Gate Processing (In Minutes) Good -83% Previous Current Immediate With New Technology On Time Departures +47% Gate Inspection Time -100% Inventory Validation Time -75% Train Inspection -50% Train Arrival to Van Ground -32% Lifts Per Man-Hour Good +40% Previous Current 7 Intermodal Process/Technology Enhancements Joliet Intermodal Terminal AGS OCR Gate System First Hybrid Crane ICTF Mobile Vehicle OCR Inventory System Lean Process Terminal Capacity Wide Span Gantry Technology Centralized AGS Gates / Load Plan Chassis Control International Chassis Pools - Domestic Train Slot Reservation System 8 4

5 Automotive Network Performance Automotive Customer Satisfaction Performance Drivers Train to Train Connections On-Time Originations Automotive 7-Day Carloadings (In Thousands) Interchange Connection Performance Road Performance 9 Managing Service Variability Drivers/Enablers Good Automotive Trip Plan Span 24 (In Hours) -33% 16 Resource Availability Disciplined Plan Execution Interchange Connections Root Cause Analysis Development of Action Plans to Address Root Cause Failures 2008 Sept YTD Supports Customer Supply Chain Management Reduces Terminal Dwell Reduces Capital Requirements 10 5

6 Automotive Train Size Productivity Average Automotive Train Size Automotive 7-Day Carloadings (000s) Drivers /Enablers Lane Density Route Restrictions Business Decision Rules Unified Plan Utilize Intermodal Network Capital Reduced Train Starts Improved Fleet Utilization Increased Profitability 1 Car Saves 200 Train Starts Annually! 11 Automotive Process/Technology Enhancements New Chock Systems Auto Loading Ramps Interline Measurement System Rail Car Co-Loading Co-Load Haulaway Pilot Best Day Loading Practices Quality Control Damage Prevention Delivery Zone Software 12 6

7 Summary Record Service Levels Record Customer Satisfaction Continuous Service Improvement Additional process and technology improvements Leverage capital investments Yield Expansion 13 7

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