BNSF Railway Moving you Forward Northwestern University Transportation Center April 15, 2010 All slides are copyright 2010, BNSF Railway Company, All Rights Reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from the copyright owner. The information on these slides is accurate as of the date of this presentation and BNSF assumes no duty to update the information for future developments. 0
Moving You Forward Logistics Parks Coverage Infrastructure Investments International Freight Demand Service Excellence Environmental Advantage 1
Overview Market Share BNSF Moves One Fourth of ALL North American Rail Freight 8.4 7.8 5.9 5.7 4.0 2.4 1.0 BNSF UP NS CSX CN CP KCS Total Units Handled (Millions) 2
Overview Intermodal Importance More Customers Depend on BNSF to Deliver Their Intermodal Freight Western Railroads 46% 38% Eastern Railroads 42% 32% Intermodal as Percent of Volume (Full Year 2009) Source: AAR 3
Overview Volume Total units and % of total Thousands Coal 2,390 28% Ag 945 11% Consumer Products 3,911 International Intermodal 1,954 50% (of CP Volume) 47% Industrial Products 1,172 14% 2009 Total BNSF Volume 8,418 Auto 98 2% (of CP Volume) Domestic Intermodal 1,859 48% (of CP Volume) 4
Coverage Footprint Over 110 weekly container vessel calls to 6 major West Coast Ports. Over 300 Eastbound Intermodal Train Departures per week 5
Coverage Footprint Copyright BNSF Railway 62010
Infrastructure Investments Int l Intermodal International business generates $2B- $3B in revenues at BNSF 14% of BNSF revenue in 2009 47% of BNSF Intermodal revenue BNSF has invested Billions of dollars to support international business Double/triple track primary routes between west coast ports and inland markets Inland facilities and Logistics Parks (Chicago, Dallas/Fort Worth, Memphis, Kansas City, Atlanta) West Coast intermodal facilities in PSW and PNW $1,869 $2,110 $337 Domestic Intermodal = $2,110 International Intermodal = $1,869 Auto = $337 We believe Asia and specifically China will continue to grow as a trade partner with the US 7
Infrastructure Investments $30 Billion in 12 yrs 8
Infrastructure Investments Logistics Park Chicago 9
Infrastructure Investments Memphis Intermodal Facility 10
International Freight Demand Coastal Share Trends Transpacific Container Imports Coastal Share Trends Gulf East Coast West Coast 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: IHS Global Insight 11
All-water service continues to grow, is penetrating major inland markets, and will grow more when Panama Canal expansion is complete. International Freight Demand Inland Markets IMPORT 8.6M TEUs INLAND 4.7M TEUs INLAND 0.5M TEUs IMPORT 3.5M TEUs TERMINATED TRAFFIC LOCAL WESTERN RR EASTERN RR Source: Various, including Piers, Transearch, etc. 12
International Freight Demand Summary Transit via the WC is 7-10 days faster than all-water service East Coast markets require 2,000 more miles of transit to reach destination and inland markets require additional miles Not Practical Extra miles burn more fuel, produce more carbon emissions East Coast routing requires at least 2-3 more vessels, millions of dollars more investment in vessels Panama Canal will increase transit fees to recover debt incurred for expansion East Coast ports will not be able to accommodate large vessels without significant dredging Most NY/NJ ports will not be able to accommodate larger vessels without addressing Bayonne Bridge clearance ($2B+ project) 13
Service Excellence Customers 14
Service Excellence Improvements To best fit shipper needs, we added 105 new and enhanced services impacting 80% of our total volume. SERVICE IMPROVEMENTS 2009 Goal Enhancements 54 New Services 23 2010 Goal Enhancements: 29 TOTAL: 105 Premium COFC Service Improvements LANE (Domestic) REDUCED IMPACT Southern Cal Chicago 8-10 hrs 4 th pm to 4 th am Chicago Southern Cal 7-8 hrs 4 th pm to 4 th am Memphis Southern Cal 6 hrs 4 th pm to 4 th am Chicago Portland 4 hrs 4 th am to Early am 15
Environmental Advantages Intermodal Contributing to the sustainability of those we serve Increasing Fuel Efficiency Improving Air Quality Reducing Highway Congestion Source: AAR 16 10
Conclusions BNSF Railway is the Intermodal Expert Providing extensive coverage to improve your supply chain Investing for future growth Delivering shipments consistently and reliably on-time Committed to helping you meet your environmental goals What can we do to help you move forward today? 17