BAJA CALIFORNIA RAILROAD, INC.

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1 BAJA CALIFORNIA RAILROAD, INC.

2 BAJA CALIFORNIA RAILROAD The safest most efficient way to transport heavy loads over long distances Baja California Railroad INC. (BJRR) is the company that operates the Tijuana-Tecate short line in the state of Baja California, Mexico. Our main activity is the transport of freight & goods between both sides of the California s border. Currently connecting with San Diego Imperial Valley (SDIY) interchanging units with BNSF in downtown San Diego, a class 1 railroad in the United States.

3 SHORT LINE CONNECTIVITY Where are we located?

4 BJRR CHARACTERISTICS What do we transport? How do we do it? Competitive advantages Coming soon:

5 COMMODITIES [NOMBRE DE CATEGORÍA ] [PORCENTA JE] [NOMBRE DE CATEGORÍA ] [PORCENTA JE] [NOMBRE DE CATEGORÍA ] [PORCENTA JE] [NOMBRE DE CATEGORÍA ] [PORCENTA JE] [NOMBRE DE CATEGORÍA ] [PORCENTA JE] [NOMBRE DE CATEGORÍA ] [PORCENTA JE] [NOMBRE DE CATEGORÍA ] [PORCENTA JE] [NOMBRE DE CATEGORÍA ] [PORCENTA JE] What do we move?

6 INFRASTRUCTURE & SERVICES Tijuana Station: Mexico-USA Railcar Interchange 68 Railcars capacity Administration Office Customs Procedures Control of Pediments Customs office S.A.T. Procedures S.A.G.A.R.P.A. Procedures CESVBC Infraestructure development Railway design and engineering Railway construction Rail road maintenance

7 INFRASTRUCTURE & SERVICES Garcia Transloading Station 46 railcar capacity Cargo handling services Door to door logistics Load monitoring Loading / unloading service Rail car identification and dragging Storage services Railcar Storage Merchandise Storage.

8 INFRASTRUCTURE & SERVICES Garcia Transloading Station Unloading/Loading docks Tracks Paved

9 INFRASTRUCTURE & SERVICES Garcia Transloading Station Since its construction, Garcia Transloading Station has fulfilled its purpose, handling different types of commodities such as: Lumber Paper Rolls Yellow Corn Soy Flour Canola Lignosulfonate of Sodium Corn Distillate Silica Sand Bean Rice Sorghum

10 DESERT LINE PROJECT

11 RESTRICTIONS ON THE WEST RAILWAY Impossibility to handle Double Stack Elevated cost by using the service of 2 railway companies. Most of the products and raw materials come from the west side of the country. SDIV has an operating window from 2 am to 4 am. SDIV uses the same rail line that operates MTS (Trolley) Limited height by electric trolley network

12 DESERT LINE The impossible line, becomes possible On June 9th, BJRR obtains Sublease rights from Pacific Imperial Railroad (PIR is the lessor of the concession for the Desert Line that is owned by the San Diego MTS)

13 DESERT LINE PROJECT On the right track, strengthening our region In October 2016, PIR declares bankruptcy and BJRR applies for the rights to acquire the assets of PIR. On march 10 of 2017, the US Federal Court grants the right to BJRR including the concession from MTS. BJRR will perform the necessary rehabilitation works starting in Campo, CA, border to Imperial Valley, CA, interchanging with Union Pacific on the east.

14 DESERT LINE RAILWAY REHABILITATION PROJECT Lindero Terminal at Tecate, México 49.5 Acres Extension ,000 Liters fuel storage capacity Four intermodal tracks (14,000+feet) Two fuel storage tracks (6,800+feet) Truck and container adecuate space Coyote Wells Transload Terminal at Imperial Valley Ca. 500 Acres Extension Annual lift capacity of 876,000 lifts Six intermodal tracks (8,000+feet) Six-train per day operation support Truck and container adecuate space Division Bridge MP 60.9 Bridge MP 110 CBP-MTS-BJRR Desert Line Meeting

15 DESERT LINE PROJECT On the right track, strengthening our region Exclusive Benefits Rail entry point Tecate BC - Campo CA 24/7 Full connectivity with class 1 railroad Intermodal facility Reduce delays on border crossings Reduce Logistic costs Double Stack capacity Optimizing delivery times Less traffic on highways & freeways Operating the Desert Line will reduce the emission of 7.5 millions tons of CO2 annually, reducing truck traffic.

16 DESERT LINE REHABILITATION Proyect phases The Desert Line rehabilitation plan is developed in three phases. The first phase of the project begins with the rehabilitation of the bridge in MP to Jacumba Station. Phase 1.. Entry Point Tecate to Jacumba Phase 2.. Dos Cabezas to Plaster City Phase 3.. Jacumba to Dos Cabezas

17 DESERT LINE CONNECTIVITY BJRR future connection

18 REGIONAL CONNECTIVITY Full connectivity with Class One Railways

19 EXPORT Finished Goods 6% Rims 1% Sand 33% Intermodal 44% Tacoma 15% Furniture 1%

20 HYDROCARBONS PROJECT

21 FEDERAL PERMITTING

22 THE BEST ALLY

23 UNLOADING JUST IN TIME Unloading just in time Competitive rates Security of your products

24 MASTER PLAN PHASE 1 FUEL RACKING (TRANSLOAD) ESTIMATED COST: $ 1.4 MDD PHASE 2 FUEL STORAGE TANKS ESTIMATED COST $ 11.8 MDD EXISTING ROAD PHASE 3 FUEL DISTPATCH ESTIMATED COST$ 1.4 MDD RAILW AY MAIN LINE

25 RAILCAR RECEPTION TERMINAL FLOW OPERATION FUEL DISTPATCH

26 PROJECT DESCRIPTION Investment The Estimated Investment for the Project is in the amount of $18,529,091 usd. Life span of the Project The programmed life span for this project is 30 years for construction and operation, that includes a permanent preventive and corrective maintenance program for all works and installations. The execution time of the works is estimated at 23 Months. Future Expantion As soon as the Lindero Terminal is put into operation, it is considered to meet the growing demand for fuel in the region, however, the possibility of terminal growth has been considered, for which there is an area of 12,000 m2 for expansion of the Storage Area (Tanks) and an area of 21,200 m2 for expansion of Reception Area (spurs).

27 BAJA CALIFORNIA RAILROAD, INC. CONTACT: Tijuana (664) San Diego (619) COPYRIGHT 2018 Baja California Railroad All rights reserved. This material can t be reproduced, saved or transmit in any way without the consent of the owner.

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