Bulk Delivery. Just Better

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2 Bulk Delivery. Just Better Website: Video: Intermobile containers are contaminate-free, as well as completely enclosed and portable, capable of fulfilling rail, road or sea transportation needs. This technology allows for unparalleled solutions in shipping and transport, saving you time, money, and complexity. 2

3 Intermobile Container Standard Design Cubic feet of interior capacity Tare Weight of 8,000 lbs +/- 25 Ton payload, depending on product bulk density designed to comply with US DOT which restricts max load to 80K pounds total over the road gross weight without permit 8 6 Means of Portability: Forklift - side fork channels Overhead Crane - top corner hooks Loading Method: 3 Top Loading Hatches For Gravity Feed Unloading Methods: 3 Unloading Gates Pneumatics discharge at up to 5 psi Designed to Meet or Exceed all ISO 20 container specifications and requirements for Global Intermodal Transportation. 3

4 Intermobile Container HQ Design Cubic feet of interior capacity Tare Weight of 8,600 lbs +/- 34 Ton payload, depending on product bulk density 9 6 Means of Portability: Forklift - side fork channels Overhead Crane - top corner hooks Loading Method: 3 Top Loading Hatches For Gravity Feed Unloading Methods: 4 Unloading Gates Pneumatics discharge at up to 5 psi The HQ container is designed to Meet or Exceed all ISO container specifications while giving added internal volume for efficient global transportation. 4

5 Certifications 5

6 Immediate Benefits vs. Traditional Supply Chain Streamline shipping. Boost business. Cost-saving results. The Solution: By using a single unit of mobile storage, our intermodal container delivers a high-quality product with security and ease. Freight and storage is made possible by truck, rail or even via ocean transport. Cost of in-process lost product Cost of in-process material handling Time of in-process material handling Quality assurance of product Cost of quality contaminated or degredated product X X X X X Traditional supply chains are an ineffective way of transporting products, marked by high cost, increased time, and product degradation due to multiple handlings. We offer a turn-key intermodal supply chain solution, by preventing the redundant costs and time associated with additional handling. Transit time on rail Product loading time Product unloading time Capital cost in supply chain (pneumatic trailers, silos, rail spurs, railcars, etc.) Benefits of footprint flexibility Revenue for additional product shipped per lane Rail Demurrage Trucking Demurrage X X X X X X X X 6

7 Common Products for Intermobile Container Use Shipping Markets With an exclusive global footing, Intermobile is able to circumvent the problems currently afflicting suppliers and buyers of bulk materials around the world. Our mobile storage technology eradicates the need for capital investment of machinery and equipment including silos, rail cars, rail spurs, and pneumatic truck. Energy Industrial Agriculture/Mining Fly Ash Guar Seed Sand/Silica Sand Proppants Fine Chemicals Cement Grouts and Admixtures Soda Ash Calcium Carbonate Titanium Dioxide Silicone Powder Starch Powder Rare Earth Potash Fertilizer Corn Grains Decreased Costs. Improved Efficiency 7

8 Portability of Intermobile Containers Over the Road on Standard ISO chassis Over the Rail on standard intermodal well car 1 loaded container, or 2 empty AAR Certified to transport over North American railway Over the ocean via steamship or barge Stacked up to 8 high loaded Storing the container on land for inventory or staging product Stacked up to 8 high loaded Mobility and Portability within each segment of your Supply Chain 8

9 Understanding Rail 9

10 Manifest Rail Manifest Rail is the standard rail model, it is the typical model most of us think of that involves rail spurs at the shipper and receiver locations. With a high cost structure the shipper has to invest in equipment and facilities to utilize this system - total Capex to utilize the manifest system might be as much as $4 Million. A rail customer has to build track that might take a year to build. $1 Million per rail spur Cost of rail siding at destination A rail customer must buy or lease rail cars to have at location inventory. The least efficient way to ship freight, though convenient, has the lowest priority on the rails (time becomes an issue here). Shipper may be subject to demurrage charges (ie. fines and penalties) if the system logjams for some reason. 10

11 Unit Train (Rail) Unit Train Typically 75 to 100 cars that utilize the manifest rail system and get priority on the rail over manifest trains because of the higher number of cars. These provide lower shipping costs than manifest rail. Provide more flexibility because a shipper can move freight wherever they need to ship it. Few companies can put that many cars together for a single train. Requires a round trip to return rail cars to the shipper s location. 11

12 Intermodal System (Rail) Intermodal rail systems have their own separate rail systems and rail yards. Intermodal trains have first priority on the rails and is 40% faster than using the manifest system. You do not need a rail spur, just equipment to onload and offload the containers at the intermodal rail site. Currently no one is using this system to move dry bulk goods that are not in super sacks. Intermodal trains have the highest priority on the rail system and are 1/4 th to 1/5 th the cost of manifest rail. The ability to rapidly unload the containers allows locomotives to be used more efficiently. Intermodal containers cannot be offloaded in a private rail yard. No Demurrage Expenses ever! 12

13 Advantages Using Intermobile Containers and Intermodal Rail System Rail transportation costs are significantly lower with the use of the Intermobile Container Example: Compared to manifest railcar hauling 100 tons of dry bulk goods the costs are $8,000 for a unit train and only $6,400 for round trip for Intermodal. Demurrage charges can be significant with manifest and unit train systems - there are no demurrage charges for the Intermodal system. Significantly reduces Capex for the shipper they only need to buy or lease the Containers, does not incur the costs of rail spurs or rail cars or storage silos. Significant cost savings for transportation fees. Saves time because of higher priority on the rail system. Provides instant supply chain and infrastructure for shippers. Containers can be staged and stacked eliminating the need for silos or rail yards. If a contract ends for a shipper they have not lost their investment in rail sidings, location inventory, etc. In this sense it is a risk mitigation tool. 13

14 Challenges Using Intermobile Containers and Intermodal Rail System Rail transportation costs are significantly lower with the use of the Intermobile Container Some loss of flexibility as the intermodal trains does not go direct to the shipper s location. They will have to transport the containers from the intermodal rail yard to the final destination by truck. 14

15 Understanding Maritime Shipping 15

16 Maritime Shipping The containers meet all standard ISO intermodal requirements and have all certifications required for transport by ship. The containers will transload seamlessly like any other intermodal container. An option for GPS Tracking will allow inventory control and monitoring during transit. 16

17 Understanding Trucking 17

18 Trucking The containers meet all standard ISO intermodal requirements and have all certifications required for transport by truck. In the US, gross vehicle weight restrictions will limit the total over the road weight of trucks to 80,000 pounds. The density of the dry bulk product being transported will dictate whether the customer can best use the HQ 725 ft3 model or the Standard 550 ft3 model. In some countries there are no weight restrictions that limit the gross vehicle weight of the trucks, which makes the HQ 725 ft3 model more efficient for shipping more in one load. Weight restrictions will not be a limiting factor in any country if used off road only to access rail or port locations. 18

19 Manufacturing - China Proven Partners. Quality Manufacturing. Reliable Fulfillment. Largest manufacturer of containers in the world Key Certifications: ABS, CSC, AAR, ISO certified facility Production Output: Intermobile containers per month On-site testing, QA/QC process, & customs clearance On-site river access Export: Port of Shanghai Intermobile has a Shanghai based Engineering and Sales team, focusing on quality assurance, manufacturing oversight, continuous improvement (R&D), logistic coordination, and Asia based sales. 19

20 Consulting Sales Approach 22

21 Sales Approach Can you walk me through your supply chain Sales representative needs to understand the customers current supply chain from beginning to end so they know how the IMC will benefit the customer and understand the total cost of ownership of the supply chain (TCO) Product loss during shipping How much product loss does the customer incur with their current model Show how the IMC can reduce product loss by eliminating the need for transferring their product. Product is sealed in the container-no loss to moisture, or blowing away. This is an environmental concern with the cilica dust from frac sand. Quality loss during shipping Sealed containers avoid product loss due to contamination and moisture (barite is a good example of a moisture sensitive mining product) 23

22 Sales Approach (Cont d) Reduced Labor Cost for bagging, loading, unloading, material handling. Load it once and unload it once. Capex No cost for rail spurs, rail cars, product inventory, material handling equipment, storage. Other leased equipment - unnecessary storage, material handling, rail cars, etc. Warehousing is reduced or eliminated Cost savings due to flexibility of Intermobile containers. Saving Time over other systems reduced transload times, priority rail service when using the intermodal rail. No Demurrage cost Container has a 10+ year life when maintained correctly. 24

23 Sales Approach (Cont d) Standard 550 ft3 vs. HQ 725 ft3 model - Which product for which customer and commodity. These numbers refer to the maximum volume each container can carry. Dry bulk products have varying densities depending on their properties. You can reference a Dry Bulk Density Chart for various dry bulk materials. Each material on the chart is assigned a density number. In determining which model container is best for your customer you must consider the density of the product being transported and where the container s are being used. In the US, customers transporting high density materials with density values above 70lbs/ft3 such as cement dust, frack sand, and so forth on US public roadways would buy the 550 ft3 model. The reason for this has to do with maximum gross vehicle weight restrictions of 80,000 pounds in the US without special permits. Due to the higher volume of the HQ 725 ft3 model, trucks could easily exceed the GVWR s if they were hauling denser materials. 25

24 Sales Approach (Cont d) The exception is when a customer is okay with paying the special permit fee per truck to ship more product in one load with the HQ (725 ft3) model For products that have density values below 70lbs/ft3 the HQ model will work on US roadways and in most other applications Customers who will only be utilizing rail or ships to transport their products will likely require the HQ 725 ft3 model so they can transport more product per container. International customers will also benefit from the use of the HQ 725 ft3 model as they are not typically as restricted by over the road weight limits and should be able to fully utilize the additional capacity in any mode of transportation. 26

25 Sales Approach (Cont d) Intermobile Container vs. Traditional Super Sack Model: Super sacks cost range in cost from $10 - $50 and are discarded after a single use - IMC is reusable eliminating waste and reducing costs A standard 20 foot ISO container referred to as a TEU (Twenty foot equivalent container) will hold 10 super sacks that hold 1 to 1.5 tons of material each. Containers are shipped by number of containers not weight. A traditional TEU container filled with super sacks can carry approximately tons of product. The HQ model can carry up to 35 tons in a single container. In most cases target customers will need to be using at least 2 of the 3 intermodal methods of trucking, rail, or ships to make this a cost effective solution. There may be exceptions to this rule so take the time to determine the customers needs and normal supply chain considerations before writing a single mode customer off. 27

26 Sales Approach (Cont d) Startup companies are somewhat better target customers as they likely will not have already invested in equipment, rail facilities, etc. like more established companies. Environmental Considerations No product released into the atmosphere Reduced chance of spill No super sacks to landfills 28

27 Ordering and Delivery Considerations Containers are FOB Shanghai, customer will need to arrange for shipping to their location Current delivery time to Shanghai is days. Plan on 2 weeks additional time for delivery to a West Coast US port city. More if it needs to go to the East Coast through the Panama Canal. Delivery time may improve after the process comes up to speed. The customer will deposit 50% of the purchase price for the containers when the order is placed and the remaining 50% is due when the containers are delivered to Shanghai. 29

28 CEO Reilly Schueler (580) COO Michael Simon III (832) EVP - Jim Trudell (702) jim@imcontainer.com

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