How TTX Manages its Title of Presentation North American Fleet

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2 2 How TTX Manages its Title of Presentation North American Fleet Name of Presenter Thomas F. Wells President and Chief Executive Officer Month Date, Year Copyright 2009 TTX Company : : CONFIDENTIAL

3 The railroad industry is stretched for capital: TTX provides as solution 3 Source: Wolfe Research

4 TTX provides the railroad industry with a non-capital option for reliable, high quality, low cost railcars to meet the specific needs of their rail customers Right car - right quantity - lowest cost Serves/owned by North America s leading railroads Own, operate, maintain national pool of railcars (220,000+ cars) Intermodal Automotive General Equipment Pooling approved by Surface Transportation Board Functions as a railcar cooperative Reduces capital, empty miles, and spreads risk Significant railcar design and modification capabilities Performs neutral, fact-based market studies 4

5 5 The TTX fleet is diverse handling intermodal, automotive and general merchandise markets

6 6 TTX provides many railcar solutions Intermodal Double Stack Stand Alone Articulated Conventional Automotive Bi & Tri-levels Frame flats General Service Heavy Duty Flat & Depressed decks ton capacity Centerbeams 62-ft Bulkhead Chain Tie-down 89-ft Flats (70 & 110 ton) Pipe, steel & other products Boxcars Gondolas New Cars TTUX Flat car of the Future

7 7 TTX provides benefit to railroads through a low cost structure and via the benefits of pooling Low cost source of equipment: Minimized car hire rates Efficient pools/free running equipment reduce empty miles Predictable car with wide customer acceptance TTX performs maintenance Pay cash dividends in the form of rate decreases No owner capital cost for new equipment Virtually eliminates owners equipment risks: Five-day turnback on most cars Modification of cars for alternative uses Market analysis and planning Engineering research and development

8 The benefits of a poolable resource create a fungible asset, maximizing utilization Potential TBOX flow Newsprint to Los Angeles Canned tomatoes to Seattle Plywood to Ohio Scrap paper to Mexico Beer to Chicago 8

9 9 The benefits of pooling also drive maximized usage in the intermodal market Potential DTTX flow Import: Seattle to Columbus Domestic: Columbus to Miami Domestic: Miami to Atlanta Export: Atlanta to Los Angeles Domestic: Los Angeles to NY

10 TTX s Pooling Helps Reduce Empty Miles 10

11 Today, TTX Manages 2 Types of Intermodal Cars 11 Double Stack Cars for Containers All Purpose Conventional Cars for Trailers and Containers

12 12 TTX Automotive Fleet Moves Automobiles and Commercial Vehicles

13 TTX General Service Fleet Boxcars 13 Move Paper and Forest Products

14 Equipment Management Strategy 14 Caterpillar Heavy Duty Multi-Level Reload RBOX/GONX TBOX Intermodal Centerbeams Bulkheads GNTX 16C National Pools -Minimizes empty miles -Computer modeling of flows -Advance scheduling (Reload) -Specific empty routing Formulaic Allocation -Specific capacity allocated -Mutually agreed upon formula -TTX manages fleet daily -TTX issues directives -Penalties for non-compliance -Demand driven fleet size modeling -Acquisitions based on model 16C Allocation - Specific car # s allocated - Reverse route empty cars -Swaps permitted (encouraged) -Cars acquired in response to owner requests -Minor TTX involvement

15 15 TTX is an industry leader, providing management as well as engineering & design expertise TTX is responsible for managing: TTX Pools Boxcars, Centerbeams, Bulkheads, Military, Intermodal Railroad Pools North American Boxcar Pool (Railroad ownership) Industry Pools Multilevel (mixed ownership TTX/Railroad) TTX has significant Engineering & Design capabilities: Two TTX-owned shops with a network of independent repair facilities Full-time engineering staff with design capabilities including: 3-D Modeling Finite Element Analysis (FEA) tools Extensive Railcar/Railroad Experience Testing Capabilities (in laboratory or at test track)

16 16 TTX provides many other services and products Maintenance repair billing and auditing Assist private fleet owners with fleet management Provide both engineering and maintenance solutions Develop equipment sensor technology Assist railroads with car hire accounting Provide economic forecasting and industry publications

17 TTX Capital Expenditures (New Railcars) 17

18 Market knowledge provides information allowing TTX to provide maximum benefit at lowest cost 18 Forecast utilization rates for existing fleet Create capital plans for additional fleet Create capital plans for modifications Develop/innovate for new railcars Find new uses for idle fleet

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