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Intermodal Todd Strever GENERAL DIRECTOR, CONSUMER PRODUCTS - PowerPoint PPT Presentation

BNSF Intermodal Todd Strever GENERAL DIRECTOR, CONSUMER PRODUCTS OCTOBER 10, 2017 BNSFs Intermodal Solutions Team Northwest Jace Thompson Northeast - North Jeremy Young Central Chad Schuirmann Ohio Valley Northeast - South Riley


  1. BNSF Intermodal Todd Strever GENERAL DIRECTOR, CONSUMER PRODUCTS OCTOBER 10, 2017

  2. BNSF’s Intermodal Solutions Team Northwest Jace Thompson Northeast - North Jeremy Young Central Chad Schuirmann Ohio Valley Northeast - South Riley Simpson Kevin Ghassemi Southwest Alissa Murray Central Caleb Maki Southeast Jenni Bergeland South Central Bryon Arita Todd Strever: General Director David Clark: West Director (Northwest/Southwest/Central/North Central/South Central) Ben Banks: East Director (Northeast North/Northeast South/Ohio Valley/Southeast

  3. Growth Between 1990 and 2016 +30% +30% +229% +229% Source: U.S. Census and AAR

  4. Consumer Products is Half of BNSF’s Volume More intermodal shipments Consumer Products represents 50 percent of BNSF’s business portfolio than any Class I railroad BNSF VOLUME 2016 2016 INTERMODAL VOLUMES HANDLED BY 9,758 (THOUSANDS) U.S. CLASS I RAILROADS (THOUSANDS) 4,945 3,863 3,683 Consumer Products – 52% Coal – 19% 2,758 Industrial Products – 18% Ag – 11% 455 BNSF NS UP CSXT KCS Source: AAR and BNSF Internal Data

  5. BNSF Volume – YTD 2017 through Q2 Total units and % change from 2016 In Thousands 565 Ag +7.8% 912 YTD 2017 2,654 Coal +19.5% TOTAL VOLUME 5,009 Consumer Products +7.6% +5.7% 878 Industrial Products +2.3%

  6. The Culture of Consumerism is Changing

  7. Retail Leaders – Here’s What They’re Saying “ FREE “ FOCUS ON 85M 85M MILLENNIALS SHIPPING …there are 85 million is now the standard” of them” “Companies have to remove the “ Retail is not dead weakest link in their supply chains …. disruption is necessary but mediocre retail experiences are dead” in order to innovate” “ 1/3 of retail shoppers “ Americans have lost 1/3 of their attention span in the last decade. would rather wash dishes than It is now just 8.25 seconds and physically go to a store” going down”

  8. Poll Question: When evaluating opportunities to • Value • Speed convert freight from over-the- • Consistency road to intermodal, which of • Transparency these factors is the most (*choose top 2) important to your business...

  9. Poll Results TOP 2 OTR TO INTERMODAL CONVERSION FACTORS Value 35% Speed 19% Consistency 41% Transparency 5%

  10. Innovation Around Our Product

  11. Southern Transcon Investments 99.8% $3B 2,200 mile route double track investment

  12. Expansion in the Northern Corridor +$5B in Maintenance & Capital Expansion 2014-2017 +1,000 miles of CTC +135 miles of double-track 13 new sidings added 15 sidings extended

  13. New PNW-Texas Service Seattle 1 day Portland faster (PNW to Texas) 5 days per week service Dallas/Fort Worth

  14. New Joint Service with KCS to/from Mexico 5 days per week service BNSF KCS Ferromex

  15. Innovation in the Supply Chain

  16. Increasing Supply Information Location Chain Efficiency Transparency

  17. Integrated Service Plan is Improving Consistency Seattle Chicago 90% of Denver participating loads are meeting our customers’ need Pacific Southwest Memphis date (between PSW Dallas/Fort Worth and Chicago)

  18. Better Supply Chain Visibility with ETN

  19. RailPASS Technology Provides Efficiency >27K users >7K CA users 3x faster gate 5x fewer exceptions

  20. How far along is BNSF with installation? As of August 18, 2017

  21. Co-Location Cost Savings EXAMPLE Site A: Logistics Park BNSF Site B: 20 miles away BNSF Intermodal Based on a hypothetical scenario with 5,000 annual inbound intermodal Facility shipments: Site A RESULTS WITH SITE A By Locating at Logistics Park BNSF You’ll Save: • $117 in drayage costs per unit Site B • $585,000 total annually on inbound shipments to your distribution center • $1.17 in annual rent savings per SF for a 500,000 SF distribution center facility

  22. Industry Facing Headwinds Crumbling Driver Permitting Infrastructure Shortages Increased Industry Regulations Consolidation

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