BNSF Railway The West Coast is the Best Coast Fred Malesa Vice President International Marketing Oct. 11, 2011 All slides are copyright 2011. Burlington Northern Santa Fe Corporation and 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. 1
BNSF Railway And The Best Is Yet To Come Fred Malesa Vice President International Marketing Oct. 11, 2011 All slides are copyright 2011. Burlington Northern Santa Fe Corporation and 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. 2
Best in Opportunity Capacity Connectivity Collaboration
Consumer Spending is on the Rise Indexed Consumer Spending 1.05 1.00 0.95 0.90 0.85 0.80 2005 2006 2007 2008 2009 2010 2011 Retail sales adjusted for inflation
Intermodal Continues to Strengthen 9.2% volume growth 1 st half 2011
U.S. Population Will Grow nearly 100 million more people by2030
America s Centers of Economic Activity 94% of nation s economic growth will occur in these metro areas
Spurring Growth in Goods Demand 4 billion tons of additional freight
West Coast Handles 2.5 Times More New York 2.2M TEUs Savannah 1.4M TEUs Norfolk 0.7M TEUs Charleston 0.4M TEUs Houston 0.3M TEUs U.S. West Coast 12.7M TEUs U.S. East Coast 5M TEUs
Best in Capabilities West Coast ports fare better than East Coast ports in three key areas Long Beach Los Angeles Seattle / Tacoma Oakland New York Norfolk Charleston Draft Local Market Inland Rail Connectivity EAST WEST Savannah Poor Fair Good
Most Preferred Gateway from Asia % of TEUs 30% East Coast 70% West Coast
Ports Investing For Future Growth Photo courtesy of Port of Los Angeles
Port of Los Angeles Investments over $3B Deepening channel Expanding terminals Adding infrastructure Photo courtesy of Port of Los Angeles
Port of Long Beach Investments over $5B New terminals Modernization Deepening channel Photo courtesy of Port of Long Beach
Southern California International Gateway $500 Million private investment 22,000 new jobs in S. California by 2036 Eliminating 1.5M trucks from the 710
San Pedro Bay Ports Deliver Prosperity supports 3.3M jobs nationwide
North America s Intermodal Leader Intermodal percentage of business 48% 34% BNSF Other RRs
Over $30 billion invested since 2000
Best Connectivity to Major Markets
Fastest Service to Major Markets 4 days 4 days 4 days 4 days 5 days
Moving Mountains for the Supply Chain Abo Canyon 5 miles of new track 3.6 million tons of rock blasted 9 bridges constructed
Leading the Logistics Park Movement
Adding Facilities to Meet Demand 1.5 million annual unit capacity at full-build out Kansas City Logistics Park
Logistics Park Chicago
Best Reach to Growing Markets 90% over of Asian inland imports move on Western railroads
Asia Will Lead World s Growth 350 million Will be added to China s urban population by 2025 more than the population of today s United States
Best Positioned for U.S. Exports to Asia West East 67% 31% Containerized Exports Gulf 2%
BNSF Leading Rail Export Carrier
The West Coast is the Best Coast Best Gateway for Growth Best Access to Major Markets Best Overall Capabilities And the best is yet to come