Global Rail and Road

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Global - Road & Rail 0199 - 2136 - 2010

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INDUSTRY PROFILE

Global Road & Rail

Reference Code: 0199-2136

Publication Date: November 2010

EXECUTIVE SUMMARY

Global - Road & Rail 0199 - 2136 - 2010


EXECUTIVE SUMMARY

Market value

The global road & rail industry grew by 8.4% in 2010 to reach a value of $1,882.2 billion.

Market value forecast

In 2015, the global road & rail industry is forecast to have a value of $2,397.8 billion, an increase of 27.4% since 2010.

Market volume

The global road & rail industry grew by 7.5% in 2010 to reach a volume of 19,564.3 billion FTKs.

Market volume forecast

In 2015, the global road & rail industry is forecast to have a volume of 24,563.8 billion FTKs, an increase of 25.6% since 2010.

Market segmentation I

Road Freight is the largest segment of the global road & rail industry, accounting for 91.4% of the industry's total value.

Market segmentation II

Americas accounts for 54.7% of the global road & rail industry value.

Market rivalry

Underlying industry forces are expected to stabilize and the industry is expected to gain momentum over the coming years.

CONTENTS

Global - Road & Rail 0199 - 2136 - 2010


TABLE OF CONTENTS

EXECUTIVE SUMMARY 2

MARKET OVERVIEW 6

Market definition 6 Research highlights 7 Market analysis 8

MARKET VALUE 9

MARKET VOLUME 10

MARKET SEGMENTATION I 11

MARKET SEGMENTATION II 12

COMPETITIVE LANDSCAPE 13

LEADING COMPANIES 16

DHL 16 Deutsche Bahn AG 20 FedEx Corporation 25 United Parcel Service, Inc. 30

MARKET FORECASTS 34

Market value forecast 34 Market volume forecast 35

APPENDIX 36

Methodology 36 Industry associations 37 Related Datamonitor research 37 Disclaimer 38

ABOUT DATAMONITOR 39

Premium Reports 39 Summary Reports 39 Datamonitor consulting 39

CONTENTS

Global - Road & Rail 0199 - 2136 - 2010


LIST OF TABLES Table 1: Global road & rail industry value: $ billion, 2006–10(e) 9

Table 2: Global road & rail industry volume: billion FTKs, 2006–10(e) 10

Table 3: Global road & rail industry segmentation I:% share, by value, 2010(e) 11

Table 4: Global road & rail industry segmentation II: % share, by value, 2010(e) 12

Table 5: DHL: key facts 16

Table 6: DHL: key financials ($) 18

Table 7: DHL: key financials (€) 18

Table 8: DHL: key financial ratios 18

Table 9: Deutsche Bahn AG: key facts 20

Table 10: Deutsche Bahn AG: key financials ($) 23

Table 11: Deutsche Bahn AG: key financials (€) 23

Table 12: Deutsche Bahn AG: key financial ratios 23

Table 13: FedEx Corporation: key facts 25

Table 14: FedEx Corporation: key financials ($) 28

Table 15: FedEx Corporation: key financial ratios 28

Table 16: United Parcel Service, Inc.: key facts 30

Table 17: United Parcel Service, Inc.: key financials ($) 32

Table 18: United Parcel Service, Inc.: key financial ratios 32

Table 19: Global road & rail industry value forecast: $ billion, 2010–15 34

Table 20: Global road & rail industry volume forecast: billion FTKs, 2010–15 35

CONTENTS

Global - Road & Rail 0199 - 2136 - 2010


LIST OF FIGURES Figure 1: Global road & rail industry value: $ billion, 2006–10(e) 9

Figure 2: Global road & rail industry volume: billion FTKs, 2006–10(e) 10

Figure 3: Global road & rail industry segmentation I:% share, by value, 2010(e) 11

Figure 4: Global road & rail industry segmentation II: % share, by value, 2010(e) 12

Figure 5: DHL: revenues & profitability 19

Figure 6: DHL: assets & liabilities 19

Figure 7: Deutsche Bahn AG: revenues & profitability 24

Figure 8: Deutsche Bahn AG: assets & liabilities 24

Figure 9: FedEx Corporation: revenues & profitability 29

Figure 10: FedEx Corporation: assets & liabilities 29

Figure 11: United Parcel Service, Inc.: revenues & profitability 33

Figure 12: United Parcel Service, Inc.: assets & liabilities 33

Figure 13: Global road & rail industry value forecast: $ billion, 2010–15 34

Figure 14: Global road & rail industry volume forecast: billion FTKs, 2010–15 35

MARKET OVERVIEW

Global - Road & Rail 0199 - 2136 - 2010


MARKET OVERVIEW

Market definition

The road & rail freight industry consists of revenues generated from freight transportation by road and rail. Units of volumes are measured in freight ton kilometers (FTK). Both road and rail freight volumes include both domestic and international freight, which for the purposes of this report are counted in the country of origin.

The road freight sector is defined as consisting of revenues generated from freight transportation by road. Units of volumes are measured in freight ton kilometers (FTK). Volumes include both domestic and international freight, which for the purposes of this report are counted in the country of origin.

The rail freight sector is defined as consisting of revenues generated from freight transportation by rail. Units of volume are measured in freight ton kilometers (FTK). Rail freight volumes include both domestic and international freight, which for the purposes of this report are counted in the country of origin.

Any currency conversions used in the creation of this report have been calculated using constant 2009 annual average exchange rates.

For the purposes of this report, the global market consists of North America, South America, Western Europe, Eastern Europe, and Asia-Pacific.

North America consists of Canada, Mexico, and the United States.

South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela.

Western Europe comprises Belgium, Denmark, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, and the United Kingdom.

Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine.

Asia-Pacific comprises Australia, China, India, Japan, Singapore, South Korea, and Taiwan.

MARKET OVERVIEW

Global - Road & Rail 0199 - 2136 - 2010


Research highlights

The global road & rail industry is expected to have total revenue of $1,882.2 billion in 2010, representing a compound annual growth rate (CAGR) of 0.8% for the period spanning 2006-2010.

Industry consumption volumes will increase with a CAGR of 2.5% between 2006 and 2010, to reach a total of 19,564.3 billion freight tone kilometres (FTKs) in 2010.

The performance of the industry is forecast to accelerate, with an anticipated CAGR of 5% for the five-year period 2010-2015, which is expected to drive the industry to a value of $2,397.8 billion by the end of 2015.

MARKET OVERVIEW

Global - Road & Rail 0199 - 2136 - 2010


Market analysis

The global road & rail industry experienced double-digit decline during the economic downturn in 2009, with Europe being particularly hard hit. The industry is however expected to rebound and post fairly strong growth through to the end of the forecast period.

The global road & rail industry is expected to have total revenue of $1,882.2 billion in 2010, representing a compound annual growth rate (CAGR) of 0.8% for the period spanning 2006-2010. In comparison, the European industry is forecast to decline with a compound annual rate of charge (CARC) of -2.9%, and the Asia-Pacific industry to increase with a CAGR of 5.6%, over the same period, to reach respective values of $446.9 billion and $405.9 billion in 2010.

Industry consumption volumes will increase with a CAGR of 2.5% between 2006 and 2010, to reach a total of 19,564.3 billion freight tone kilometres (FTKs) in 2010. The industry's volume is expected to rise to 24,563.8 billion FTKs by the end of 2015, representing a CAGR of 4.7% for the 2010-2015 period.

The road freight segment is expected to be the most lucrative for the global road & rail industry in 2010, with total revenues of $1,720.4 billion, equivalent to 91.4% of the industry's overall value. In comparison, the rail freight segment is expected to generate revenues of $161.8 billion in 2010, equating to 8.6% of the industry's aggregate revenues.

The performance of the industry is forecast to accelerate, with an anticipated CAGR of 5% for the five-year period 2010-2015, which is expected to drive the industry to a value of $2,397.8 billion by the end of 2015. Comparatively, the European and Asia-Pacific industries will grow with CAGRs of 5.4% and 6.1% respectively, over the same period, to reach respective values of $582.4 billion and $546.4 billion in 2015.

MARKET VALUE

Global - Road & Rail 0199 - 2136 - 2010


MARKET VALUE

The global road & rail industry grew by 8.4% in 2010 to reach a value of $1,882.2 billion.

The compound annual growth rate of the industry in the period 2006–10 was 0.8%.

Table 1: Global road & rail industry value: $ billion, 2006–10(e) Year $ billion € billion % Growth2006 1,826.0 1,313.2 2007 1,899.6 1,366.1 4.02008 1,999.8 1,438.2 5.32009 1,735.8 1,248.3 -13.22010(e) 1,882.2 1,353.6 8.4

CAGR: 2006–10 0.8%

Source: Datamonitor D A T A M O N I T O R

Figure 1: Global road & rail industry value: $ billion, 2006–10(e)


MARKET VOLUME

Global - Road & Rail 0199 - 2136 - 2010


MARKET VOLUME

The global road & rail industry grew by 7.5% in 2010 to reach a volume of 19,564.3 billion FTKs.

The compound annual growth rate of the industry in the period 2006–10 was 2.5%.

Table 2: Global road & rail industry volume: billion FTKs, 2006–10(e) Year billion FTKs % Growth2006 17,707.02007 18,649.9 5.32008 19,061.5 2.22009 18,202.8 -4.52010(e) 19,564.3 7.5

CAGR: 2006–10 2.5%


Figure 2: Global road & rail industry volume: billion FTKs, 2006–10(e)


MARKET SEGMENTATION I

Global - Road & Rail 0199 - 2136 - 2010


MARKET SEGMENTATION I

Road Freight is the largest segment of the global road & rail industry, accounting for 91.4% of the industry's total value.

The rail freight segment accounts for the remaining 8.6% of the industry.

Table 3: Global road & rail industry segmentation I:% share, by value, 2010(e) Category % ShareRoad Freight 91.4%Rail Freight 8.6%

Total 100%


Figure 3: Global road & rail industry segmentation I:% share, by value, 2010(e)


MARKET SEGMENTATION II

Global - Road & Rail 0199 - 2136 - 2010


MARKET SEGMENTATION II

Americas accounts for 54.7% of the global road & rail industry value.

Europe accounts for a further 23.7% of the global industry.

Table 4: Global road & rail industry segmentation II: % share, by value, 2010(e) Category % ShareAmericas 54.7%Europe 23.7%Asia-Pacific 21.6%

Total 100%


Figure 4: Global road & rail industry segmentation II: % share, by value, 2010(e)


COMPETITIVE LANDSCAPE

Global - Road & Rail 0199 - 2136 - 2010



The road & rail market will be analyzed taking companies whose business activities focus on transportation of goods via road and rail as players. The key buyers will be taken as customers (mostly companies), and fuel, electrical power, and rolling stock providers as the key suppliers.

Underlying industry forces are expected to stabilize and the industry is expected to gain momentum over the coming years.

The road and rail industry consists of the railroads and the trucking sector. The large variety of potential customers, coupled with the importance of services offered within the industry, reduces buyer power significantly. Due to the inherent lack of capacity in rail networks, there are typically a limited number of operators on specific routes, which raises switching costs. In some countries, their rail networks lack liberalization, and hold a near-monopoly, reducing the level of rivalry. Entry barriers to the railroad sector of the industry are typically high, and the threat of new entrants is therefore correspondingly low. Larger customers have the option of integrating backwards by establishing their own fleets thus reducing supplier power. It is possible to enter the road sector on a smaller scale, reducing fixed costs and entry barriers. Here however, the risk of new entrants, as well as the level of rivalry, may be higher. Within the industry, road and rail transportation can act as substitutes to one another, with both having distinct advantages and drawbacks.

Due to the inherent lack of capacity in rail networks, there are typically a limited number of operators on specific routes. In addition, some countries’ rail networks lack liberalization, and hold a near-monopoly reducing buyers’ scope of choice furthermore. Amongst market players, there are a wide range of logistics and transportation companies. As it is vital for manufacturers to distribute their products to end users, transportation services are very important to them, reducing buyer power to some extent. However, the relative lack of service differentiation means customers have a high degree of choice, boosting buyer power somewhat. Moreover, switching costs are rather low and brand loyalty does not seem to be an important factor within this industry, thus boosting buyer power even further. In addition, larger customers have the option of integrating backwards by establishing their own fleets, whereas it is unlikely that road companies would integrate forwards into end-users' areas. Overall, buyer power is assessed as moderate in the industry as a whole.

Key inputs for rail and road operators include fuel, electrical power, and the rolling stock of car and vehicles themselves, as well as labor, IT and office space providers. Some of these supplies are offered by a small number of (usually) large companies. Such suppliers may exert strong bargaining power, due to their large size and importance of input they offer. Switching costs may be high, especially when large and/or long-term contracts are involved. Players within this industry are rarely in a position to exert a strong influence on fuel prices. Larger fuel retailers often promote loyalty by offering discount incentives for road companies through their fuel card systems. Although this is beneficial to road firms, it actually increases switching costs, and so additionally boosts supplier power. Railroad companies can buy or lease locomotives and rolling stock from a small handful of companies.


Global - Road & Rail 0199 - 2136 - 2010


Furthermore, the high barriers to entry for the capital-intensive rolling stock manufacturing industry means that if leaving the industry, finding a suitable new source for these vital inputs may be difficult. Overall, supplier power is assessed as moderate in the industry as a whole.

The ease of entering this industry largely depends on the sector. Entry barriers to the railroad sector are typically higher, and the threat of new entrants is therefore correspondingly lower than in road sector. The main barrier is the limited capacity of railroads, restricting companies' rights to use existing railroad infrastructure. The number of operators of railway trains on a particular line is usually limited and must be carefully managed. Moreover, the freedom of a train operator to use other rail lines is limited by track usage contracts or government regulatory authority, as well as by physical characteristics of the rail network, such as track gauge. Regulation is usually strict. Entering the railroad sector requires substantial capital outlay for the purchase or leasing of rolling stock.

Entry to the road sector is possible on a small scale and the entry barriers are lower. Essentially, anyone who can afford a second-hand truck can enter the sector as a sole-proprietor business. Relatively low fixed costs, a lack of brand strength among existing players, and easy access to end-users combine to make entry to the sector relatively easy. However, more stringent government regulations on emissions and driver shortages may present significant difficulties for companies entering the sector in many countries. The road infrastructure in some countries may discourage new entrants since poor roads and their insufficient coverage mean that road transport is highly unreliable and other means of transport are more preferred. Overall, the likelihood of new entrants is assessed as moderate.

Within this industry, road and rail transportation can act as substitutes to one another, with both having distinct advantages and drawbacks. Road transport may be favored over rail transport due to flexibility offered by road networks. Rail freight companies face indirect competition from road haulage and river barge transportation companies. Road haulage has clear advantages for end-users that need to deliver products door to door. However, increasing road congestion, regulations on exhaust emissions, and driver shortages are creating significant problems for the road transport sector. Substitutions to both road and rail include air transportation. Budget airlines offer low cost domestic and international flights, which in some cases are competitive against rail fares. Overall there is a moderate threat from substitutes in this industry.

The strength of rivalry, similar to the threat of new entrants, depends on the industry sector. The economic importance of railroad transport means that it is often a focus of government policy, reducing the number of players and limiting competition. Historically, rail companies operated both train and track, a model which led to the view that railroads are natural monopolies: since it is uneconomical to have several parallel tracks on the same route, one company would tend to dominate a given route. Nationalization has also been common in the rail industry. Unbundling trains and infrastructure is a common basis for introducing competition, but this has proceeded to varying extents. Rivalry is intensified by high fixed, entry and exit costs.


Global - Road & Rail 0199 - 2136 - 2010


The road sector is fragmented and composed predominantly of a large number of small to medium sized enterprises. The sheer number of competitors and the existence of high exit barriers increase the competition level. Additionally, the services offered by companies within the sector, although diversified, are similar for all the market players. There are some limited possibilities of differentiation within the sector, such as additional services or discounts for regular customers. Larger market players have diversified their operations geographically and offer more complex transportation services; however, they present similar business models, which boosts rivalry further. Rivalry within this industry is assessed as strong.

LEADING COMPANIES

Global - Road & Rail 0199 - 2136 - 2010


LEADING COMPANIES

DHL

Table 5: DHL: key facts Head office: Deutsche Post DHL, Charles-de-Gaulle-Str. 20 53113, Bonn, DEU Telephone: 49 228 182 90 00 Fax: 49 228 182 70 60 Website: www.dhl.de Financial year-end: December Ticker: DPW Stock exchange: Frankfurt Source: company website D A T A M O N I T O R

Deutsche Post DHL is the leading postal and logistics group. Its integrated DHL and Deutsche Post brands offer comprehensive services in international express, air and ocean freight, road and rail transportation and contract logistics. The company is Germany's only universal provider of postal services and delivers mail and parcels in Germany and worldwide. It also offers dialogue marketing and press distribution services as well as corporate communications solutions.

The company operates through four divisions: mail; express; global forwarding/freight; and supply chain/CIS (corporate information solutions).

The mail division is engaged in the transport and delivery of written communications. It provides special services such as cash-on-delivery and registered mail. This division operates through 82 mail centers, processing an average of around 70 million items per working day, and 33 parcel centers, handling a volume of more than 2.5 million parcels per working day within Germany. The network spans 14,000 retail outlets. The mail division also offers some 2,200 points of sale for letter and parcel postage and around 6,200 machines such as Packstations, Paketboxes and stamp dispensers. This division is subdivided into the five business units: mail communication, dialogue marketing, press services, parcel Germany and global mail.

LEADING COMPANIES

Global - Road & Rail 0199 - 2136 - 2010


The express division offers national and international courier, express and parcel (CEP) services to corporate and private customers under the DHL brand. It operates a network of more than 30,000 service points. This division operates a large network of intercontinental transport and cross-border transport. The company offers standard products and tailored solutions to its customers. The express division provides specialized services like special pick-up and delivery services, information services, customs clearance services, transport of dangerous goods, payment/billing, insurance and packaging services. The express division comprises the Express Europe, Express Americas, Express Asia Pacific and Express EEMEA business units.

The global forwarding/freight division is engaged in the transportation of goods by rail, road, air and sea. It is the world's largest provider of air and ocean freight services and one of the leading overland freight forwarders in Europe and the Middle East. The division manages the flow of goods and information across a customer's global supply chain, connecting suppliers, carriers, customs brokers and end-users through a seamless supply of distribution services. The global forwarding/freight division also provides trade fair, exhibition and event logistics. It offers customized full-service solutions for exhibitors, international trade fair organizers, event management and staging companies as well as event agencies. This division operates through two business units: global forwarding and freight.

The supply chain/CIS division specializes in contract logistics and provides warehousing and ground-based transport services as well as sector-based value-added services along the entire supply chain. The division also offers end-to-end solutions for corporate information and communications management. It operates warehouses, provide packaging services and manage transportation networks. This division operates through two business units: supply chain and corporate information solutions.

Key Metrics

The company recorded revenues of $64,243 million in the fiscal year ending December 2009, a decrease of 15.2% compared to fiscal 2008. Its net income was $923 million in fiscal 2009, compared to a net loss of $2,752 million in the preceding year.

LEADING COMPANIES

Global - Road & Rail 0199 - 2136 - 2010


Table 6: DHL: key financials ($) $ million 2005 2006 2007 2008 2009Revenues 62,008.5 84,188.5 75,147.4 75,746.7 64,243.0Net income (loss) 3,404.0 3,173.1 2,604.4 (2,751.8) 923.3Total assets 240,057.8 302,711.5 327,418.1 327,354.1 48,303.6Total liabilities 222,794.6 283,311.1 308,147.0 308,147.0 13,511.6Employees 502,545 461,222 470,123 511,292 436,651 Source: company filings D A T A M O N I T O R

Table 7: DHL: key financials (€) € million 2005 2006 2007 2008 2009Revenues 44,594.0 60,545.0 54,043.0 54,474.0 46,201.0Net income (loss) 2,448.0 2,282.0 1,873.0 (1,979.0) 664.0Total assets 172,640.0 217,698.0 235,466.0 235,420.0 34,738.0Total liabilities 160,225.0 203,746.0 221,607.0 221,607.0 9,717.0 Source: company filings D A T A M O N I T O R

Table 8: DHL: key financial ratios Ratio 2005 2006 2007 2008 2009Profit margin 5.5% 3.8% 3.5% (3.6%) 1.4%Revenue growth 3.3% 35.8% (10.7%) 0.8% (15.2%)Asset growth 12.5% 26.1% 8.2% 0.0% (85.2%)Liabilities growth 10.9% 27.2% 8.8% 0.0% (95.6%)Debt/asset ratio 92.8% 93.6% 94.1% 94.1% 28.0%Return on assets 1.5% 1.2% 0.8% (0.8%) 0.5%Revenue per employee $123,389 $182,534 $159,846 $148,148 $147,127Profit per employee $6,773 $6,880 $5,540 ($5,382) $2,115 Source: company filings D A T A M O N I T O R

LEADING COMPANIES

Global - Road & Rail 0199 - 2136 - 2010


Figure 5: DHL: revenues & profitability

Source: company filings D A T A M O N I T O R

Figure 6: DHL: assets & liabilities


LEADING COMPANIES

Global - Road & Rail 0199 - 2136 - 2010


Deutsche Bahn AG

Table 9: Deutsche Bahn AG: key facts Head office: Potsdamer Platz 2, 10785 Berlin, DEU Telephone: 49 30 297 61676 Fax: 49 30 297 20110 Website: www.deutschebahn.com Financial year-end: December Source: company website D A T A M O N I T O R

Deutsche Bahn (DB) provides mobility, transport and logistics services. DB is a government-owned railway group in Germany. The group has operations in Germany, rest of Europe, Asia Pacific, North America and other countries.

DB operates through nine business segments: DB Schenker Logistics, DB Bahn Regional, DB Schenker Rail, DB Netze Track, DB Bahn Long-Distance, DB Bahn Urban, DB Services, DB Netze Stations, and subsidiaries and other activities. The group organizes its segments into four business divisions: passenger transport; transportation and logistics; services; and infrastructure.

The group's passenger transport division comprises three segments: DB Bahn Regional, DB Bahn Long-Distance and DB Bahn Urban. The passenger transport division includes rail and bus transport operations of the group. All the segments of the passenger transport division primarily offer transport services in Germany.

The division's DB Bahn Regional segment comprises activities related to regional passenger transport and other services. This segment offers a range of regional transport network connection in metropolitan areas and surroundings. The integrated public transport operations of DB Bahn Region and its subsidiaries offer rail and bus transportation services. DB Bahn Long-Distance segment of the passenger transport division comprises all the group's operations related to long-distance passenger transport and other services. This segment provides national and cross-border long-distance rail transport services. This segment operates through DBAutoZug and CityNightLine CNL, which provide car carrier and night train transport services.

The DB Bahn Urban segment includes the metropolitan transport systems in Berlin and Hamburg as well as for 22 bus companies in Germany. This segment offers public road passenger transport services on behalf of cities and counties.

LEADING COMPANIES

Global - Road & Rail 0199 - 2136 - 2010


The transportation and logistics division includes two segments: DB Schenker Logistics and DB Schenker Rail. DB Schenker Logistics, a logistics service provider, engaged in freight transport, forwarding and other services. This segment's operations include global freight exchange including in-land transport; global air and sea freight; and related logistics services. It has its operations in 1,500 locations in over 130 countries.

The DB Schenker Rail segment includes the group's activities for freight transport services. It operates an open network system for the transport of single cars and groups of cars, and provides block train routes for point-to-point transport services, together with selected extra logistical services. This segment operates primarily in Germany, Denmark, the Netherlands, Sweden and Italy. The distribution activity in urban transport is carried out mostly through trucks. The freight logistics includes the distribution and organization of the Europe-wide transport of bulk goods. This segment also offers logistics solutions.

The services division operates through DB Services, which offers mobility and logistical services. This segment provides services in six separate areas: DB Fahrzeuginstandhaltung (vehicle maintenance), DB Systel, DB Services, DB Fuhrpark (fleet management), as well as DB Kommunikationstechnik (communications technology) and DB Sicherheit (security).

DB Fahrzeuginstandhaltung focuses on heavy maintenance of rail vehicles and provides comprehensive inspection and maintenance work as well as conversion, modernization, upgrading trains, as well as overhaul work on components like wheel sets, bogies and brakes at 15 locations. DB Systel is a provider of information technology (IT) and telecommunications services. It is also a full-service provider develops and operates IT and telecommunications solutions for the passenger travel and the logistics markets. Its portfolio covers the entire IT value chain from consultancy and concept development through development to operation and support services. DB Services is a systems provider of services related to real estate and transport.

DB Fuhrpark (fleet management) provides mobility and fleet management services to the group with about 26,000 vehicles throughout Germany. DB Kommunikationstechnik (communications technology) is a specialist provider of nationwide technical support services. Its services include the maintenance and repair of IT and network technology, security technology and passenger information facilities, automatic ticketing machines as well as printing and information logistics. DB Sicherheit (security) bundles together the security functions within the group and provides professional security services for travelers, employees, freight, group facilities and real estate.

The infrastructure division operates through DB Netze Track, DB Netze Stations, and subsidiaries and other activities. This division operates passenger stations, network, energy supply, service and facility management, fleet management, IT management, telematics and vehicle maintenance areas.

LEADING COMPANIES

Global - Road & Rail 0199 - 2136 - 2010


The DB Netze Track segment is engaged in installing, maintaining and operating the complete track related rail infrastructure in Germany. It operates the rail infrastructure including long-distance metropolitan network, regional network, marshalling yards, and transshipment terminals. It provides approximately 340 railroad companies, with about 34,000 kilometers of transport network. The DB Netze stations segment is engaged in the operation, development and marketing of passenger stations and retail facilities in stations in Germany. The group's subsidiary DB Netze Energy is responsible for supplying the train operating companies with all energy-related services. The subsidiaries and other activities segment of DB is engaged in the management of holding company for the DB Group, DB Energie, Stinnes, DB Projektbau as well as other investments and activities.

Key Metrics

The company recorded revenues of $40,791 million in the fiscal year ending December 2009, a decrease of 12.3% compared to fiscal 2008. Its net income was $1,154 million in fiscal 2009, compared to a net income of $1,837 million in the preceding year.

LEADING COMPANIES

Global - Road & Rail 0199 - 2136 - 2010


Table 10: Deutsche Bahn AG: key financials ($) $ million 2005 2006 2007 2008 2009Revenues 34,839.3 41,789.0 43,535.5 46,515.4 40,790.6Net income (loss) 849.6 2,336.1 2,386.1 1,836.9 1,154.1Total assets 65,494.5 67,356.4 67,480.1 67,012.9 65,775.3Total liabilities 54,822.3 54,544.2 52,241.5 50,111.2 47,809.9Employees 216,389 229,200 237,078 240,242 251,000 Source: company filings D A T A M O N I T O R

Table 11: Deutsche Bahn AG: key financials (€) € million 2005 2006 2007 2008 2009Revenues 25,055.0 30,053.0 31,309.0 33,452.0 29,335.0Net income (loss) 611.0 1,680.0 1,716.0 1,321.0 830.0Total assets 47,101.0 48,440.0 48,529.0 48,193.0 47,303.0Total liabilities 39,426.0 39,226.0 37,570.0 36,038.0 34,383.0 Source: company filings D A T A M O N I T O R

Table 12: Deutsche Bahn AG: key financial ratios Ratio 2005 2006 2007 2008 2009Profit margin 2.4% 5.6% 5.5% 3.9% 2.8%Revenue growth 4.6% 19.9% 4.2% 6.8% (12.3%)Asset growth (1.1%) 2.8% 0.2% (0.7%) (1.8%)Liabilities growth (2.8%) (0.5%) (4.2%) (4.1%) (4.6%)Debt/asset ratio 83.7% 81.0% 77.4% 74.8% 72.7%Return on assets 1.3% 3.5% 3.5% 2.7% 1.7%Revenue per employee $161,003 $182,326 $183,634 $193,619 $162,513Profit per employee $3,926 $10,192 $10,065 $7,646 $4,598 Source: company filings D A T A M O N I T O R

LEADING COMPANIES

Global - Road & Rail 0199 - 2136 - 2010


Figure 7: Deutsche Bahn AG: revenues & profitability


Figure 8: Deutsche Bahn AG: assets & liabilities


LEADING COMPANIES

Global - Road & Rail 0199 - 2136 - 2010


FedEx Corporation

Table 13: FedEx Corporation: key facts Head office: 942 South Shady Grove Road, Memphis, Tennessee 38120, USA Telephone: 1 901 818 7500 Fax: 1 901 395 2000 Website: www.fedex.com Financial year-end: May Ticker: FDX Stock exchange: New York Source: company website D A T A M O N I T O R

FedEx provides transportation, e-commerce, and business services. The company offers integrated business applications through its operating companies. The company's subsidiary, Federal Express Corporation (FedEx Express), is the world's largest express transportation company. FedEx operates throughout the US as well as in 220 countries worldwide.

The company operates its business through four main segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services.

FedEx Express, one of the largest express transportation companies, makes packages and freight deliveries throughout the US and to 220 countries worldwide. FedEx Express offers time-bound delivery for documents, packages, and freight. With its US express service, delivery is ensured in one to three business days within the US. FedEx Express offers three US overnight delivery services: FedEx First Overnight, FedEx Priority Overnight, and FedEx Standard Overnight. FedEx SameDay service is provided for urgent shipments up to 70 pounds to all US destinations. FedEx Express also offers express freight services backed by money-back guarantees to handle the needs of the time-definite global freight market. FedEx Express also has approximately 5,000 drop boxes at US Post Offices in approximately 340 metropolitan areas and provides transportation and delivery for the US Postal Service's international delivery service called Global Express Guaranteed (GXG). FedEx Express has an integrated global network, comprising 57,000 drop-off locations, 654 aircrafts, and 51,000 vehicles and trailers.

FedEx Express's primary sorting facility, located in Memphis, serves as the center of the company's multiple hub-and-spoke system. A second national hub facility is located in Indianapolis. In addition to these national hubs, FedEx Express operates regional hubs in Newark, Oakland, and Fort Worth; and major metropolitan sorting facilities in Los Angeles and Chicago. In June 2009, FedEx Express began operations at a new regional hub in Greensboro, North Carolina.

LEADING COMPANIES

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The FedEx Express segment also includes FedEx Trade Networks, which provides international trade services, specializing in customs brokerage and global cargo distribution. The value-added services of the company include global trade data, an information tool that allows customers to track and manage imports. FedEx Trade Networks provides international trade advisory services, including assistance with the Customs-Trade Partnership Against Terrorism (C-TPAT) program. Through WorldTariff subsidiary, FedEx Trade Networks publishes customs duty and tax information for over 100 customs areas worldwide. FedEx Trade Networks operates through 90 offices in 75 service locations throughout North America and in Asia.

FedEx Ground Package Systems (FedEx Ground) serves customers in the North American small-package market, focusing primarily on business and residential delivery of packages weighing up to 150 pounds. FedEx Ground offers ground services for delivery of small-packages. Ground services are provided through out the US and Canada. Overnight delivery, up to 400 miles, is offered to most of the US. FedEx Ground operates a multiple hub-and-spoke sorting and distribution system consisting of 520 facilities and 32 hubs in the US and Canada. FedEx Ground conducts its operations primarily through 22,500 owner-operated vehicles and 31,500 company-owned trailers.

The FedEx Ground segment also includes FedEx SmartPost, which specializes in the consolidation and delivery of high volumes of low-weight, less time-sensitive business-to-consumer packages using the US Postal Service (USPS) for final delivery to residences. The company picks up shipments from customers (including e-retailers and catalog companies), provides sorting and linehaul services, and then delivers the packages to a USPS facility for final delivery by a postal carrier. Through its network of 22 distribution hubs, FedEx SmartPost provides delivery Monday through Saturday to all residential addresses in the US, including PO boxes and military destinations.

The segment also includes operations of FedEx Home Delivery which is dedicated exclusively to meet the delivery needs of residential customers. FedEx Home Delivery provides its services primarily to residential shippers and their customers and also offers a money-back guarantee.

The FedEx Freight provides less-than-truckload (LTL) freight services through its FedEx Freight business (regional next-day and second-day and interregional LTL freight services), its FedEx National LTL business (long-haul LTL freight services), and its FedEx Freight Canada business. FedEx Freight provides regional LTL freight service to all US zone improvement plan (ZIP) codes, including Alaska and Hawaii. FedEx Freight also offers a premium service between all regions in the US. Internationally, FedEx Freight serves Canada, Mexico, Puerto Rico, Central and South America, the Caribbean, Europe, and Asia. FedEx Freight operates approximately 59,000 vehicles and trailers across 480 service centers. Its subsidiary, Caribbean Transportation Services (CTS), provides airfreight forwarding services between the US and countries such as Puerto Rico, Dominican Republic, and Costa Rica. This segment also includes FedEx Custom Critical service.

LEADING COMPANIES

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FedEx Custom Critical provides a time-specific freight-shipping services throughout the US, Canada, and Mexico. The services of the company include the following: surface expedite, for exclusive use and FedEx Freight network based transport of critical shipments and expedited LTL shipments; air expedite, which offers an array of air solutions to meet customers' critical delivery times; and white glove services, for shipments that require extra care in handling, temperature control, or specialized security. FedEx Custom Critical utilizes approximately 1,300 vehicles, operated by owner-operators and their drivers, which are dispatched out of approximately 140 geographically-based staging areas.

FedEx Services provides sales, marketing, information technology, and customer service support, primarily for the benefit of FedEx Express and FedEx Ground. Through FedEx Services and its subsidiary, FedEx Customer Information Services, the company provides a single point of access for many customer support functions.

FedEx Services offers a range of supply chain solutions, including critical inventory logistics, transportation management, fulfillment, and fleet services through its FedEx Global Supply Chain Services subsidiary. FedEx Global Supply Chain Services focuses on IT-sensitive business to meet the needs of its customers and to drive transportation business to other FedEx operating companies. FedEx Global Supply Chain Services' service offerings use electronic data interchanges to speed communications between customers and their suppliers.

FedEx Office is a provider of document solutions and business services. FedEx Office's global network of digitally-connected locations offers access to copying and digital printing, professional finishing, document creation, Internet access, computer rentals, video conferencing, signs and graphics, notary, direct mail, web-based printing, and range of FedEx day-definite ground shipping and time-definite global express shipping services.

FedEx Office offers a range of FedEx Express and FedEx Ground services at all US locations. In addition, FedEx Office offers packing services at all US Office and Print Centers, and packing supplies and boxes. As of May 31, 2009, FedEx Office's operations included approximately 1,800 FedEx Office and Print Centers in the US and 135 additional locations in seven other countries, as well as 29 commercial production centers.

LEADING COMPANIES

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Key Metrics

The company recorded revenues of $35,497 million in the fiscal year ending May 2009, a decrease of 6.5% compared to fiscal 2008. Its net income was $98 million in fiscal 2009, compared to a net income of $1,125 million in the preceding year.

Table 14: FedEx Corporation: key financials ($) $ million 2005 2006 2007 2008 2009Revenues 29,363.0 32,294.0 35,214.0 37,953.0 35,497.0Net income (loss) 1,449.0 1,806.0 2,016.0 1,125.0 98.0Total assets 20,404.0 22,690.0 24,000.0 25,633.0 24,244.0Total liabilities 10,816.0 11,179.0 11,344.0 11,107.0 9,718.0Employees 215,838 221,677 238,935 254,142 290,000 Source: company filings D A T A M O N I T O R

Table 15: FedEx Corporation: key financial ratios Ratio 2005 2006 2007 2008 2009Profit margin 4.9% 5.6% 5.7% 3.0% 0.3%Revenue growth 18.8% 10.0% 9.0% 7.8% (6.5%)Asset growth 6.6% 11.2% 5.8% 6.8% (5.4%)Liabilities growth (2.5%) 3.4% 1.5% (2.1%) (12.5%)Debt/asset ratio 53.0% 49.3% 47.3% 43.3% 40.1%Return on assets 7.3% 8.4% 8.6% 4.5% 0.4%Revenue per employee $136,042 $145,680 $147,379 $149,338 $122,403Profit per employee $6,713 $8,147 $8,437 $4,427 $338 Source: company filings D A T A M O N I T O R

LEADING COMPANIES

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Figure 9: FedEx Corporation: revenues & profitability


Figure 10: FedEx Corporation: assets & liabilities


LEADING COMPANIES

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United Parcel Service, Inc.

Table 16: United Parcel Service, Inc.: key facts Head office: 55 Glenlake Parkway, N.E Atlanta, Georgia, 30328, USA Telephone: 1 404 828 6000 Website: www.ups.com Financial year-end: December Ticker: UPS Stock exchange: New York Source: company website D A T A M O N I T O R

United Parcel Service (UPS) provides transportation services, primarily domestic and international letter and package delivery. Through its non-package subsidiaries, it also provides specialized transportation, logistics and financial services. The primary business of the company includes time-definite delivery of packages and documents. UPS has extended its service portfolio to include less-than-truckload (LTL) transportation, primarily in the US, and supply chain services.

On every business day, the company delivers packages to 1.8 million shipping customers and to 6.1 million consignees in over 200 countries and territories. In FY2008, it delivered an average of 15.5 million pieces per day worldwide. In addition, the company also provides supply chain solutions to clients in over 175 countries and territories. The company operates a ground fleet of approximately 107,000 vehicles, ranging from custom-built package cars to large tractors and trailers and utilizes nearly 570 aircraft.

The company provides its customers with easy access to UPS. There are approximately 150,000 domestic and international access points to UPS. These include nearly 38,800 branded drop-boxes, more than 1,000 UPS customer centers, over 6,000 independently owned and operated The UPS Store and Mail Boxes Etc. locations worldwide, more than 2,800 alliance partner locations, in excess of 13,200 authorized shipping outlets and commercial counters, and more than 87,000 UPS drivers who can accept packages given to them.

The company operates through three business segments: the US domestic package; international package; and supply chain and freight.

LEADING COMPANIES

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The US domestic package segment's operations include time-definite delivery of letters, documents, and packages throughout the US. The segment's standard ground service is available to every address in the 50 states of the US. It handles packages, which weigh up to 150 pounds. The company also offers same-day pickup of air and ground packages. The company has made significant upgrade to its US ground package delivery network, accelerating the transit times for more than a half-million packages by one day or more.

UPS also offers customized package distribution solutions such as UPS CampusShip, Consignee Billing, Quantum View Manage, Delivery Confirmation and UPS Returns. In addition to the standard ground delivery product, the company also offers same-day pickup of air and ground packages through UPS Hundredweight Service.

The international package segment includes delivery of individually labeled packages or pallets to customers across 200 countries and territories worldwide. These operations include shipments wholly outside the US, as well as shipments with either origin or distribution outside the US. This segment operates across Europe, Asia and Americas. In Europe, the segment provides both express and domestic service.

The segment serves more than 40 Asia Pacific countries and territories through more than two dozen alliances with Asian delivery companies. In Canada, it provides both domestic and import and export services. The company is one of the largest air cargo carrier and a leading logistics provider in Latin America and the Caribbean.

The supply chain and freight segment comprises freight forwarding and logistics operations, UPS Freight and other aggregated business units. The company's forwarding and logistics business provides services in more than 175 countries and territories worldwide, and includes supply chain design and management, freight distribution, customs brokerage, mail and consulting services. UPS Freight offers a variety of LTL and truckload (TL) services to customers in North America. The segment also comprises of other aggregated business units including Mail Boxes Etc. (the franchisor of Mail Boxes, Etc. and The UPS Store) and UPS Capital.

This segment provides transportation solutions to customers worldwide, including air, ocean and ground freight, as well as customs brokerage, and trade and materials management. It also offers service, information technology systems and distribution facilities adapted to the unique supply chains of specific industries such as healthcare, technology, and consumer/retail.

The company also provides a variety of UPS technology solutions such as UPS Worldship, UPS CampusShip, UPS Online, UPS ready, Quantum View, UPS TradeAbility and UPS internet shipping to support automated shipping and tracking.

LEADING COMPANIES

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Key Metrics

The company recorded revenues of $45,297 million in the fiscal year ending December 2009, a decrease of 12.0% compared to fiscal 2008. Its net income was $2,152 million in fiscal 2009, compared to a net income of $3,003 million in the preceding year.

Table 17: United Parcel Service, Inc.: key financials ($) $ million 2005 2006 2007 2008 2009Revenues 42,581.0 47,547.0 49,692.0 51,486.0 45,297.0Net income (loss) 3,870.0 4,202.0 382.0 3,003.0 2,152.0Total assets 34,947.0 33,210.0 39,042.0 31,879.0 31,883.0Total liabilities 18,063.0 17,728.0 26,859.0 25,099.0 24,187.0Employees 407,000 428,000 425,300 426,000 408,000 Source: company filings D A T A M O N I T O R

Table 18: United Parcel Service, Inc.: key financial ratios Ratio 2005 2006 2007 2008 2009Profit margin 9.1% 8.8% 0.8% 5.8% 4.8%Revenue growth 16.4% 11.7% 4.5% 3.6% (12.0%)Asset growth 6.4% (5.0%) 17.6% (18.3%) 0.0%Liabilities growth 9.7% (1.9%) 51.5% (6.6%) (3.6%)Debt/asset ratio 51.7% 53.4% 68.8% 78.7% 75.9%Return on assets 11.4% 12.3% 1.1% 8.5% 6.8%Revenue per employee $104,622 $111,091 $116,840 $120,859 $111,022Profit per employee $9,509 $9,818 $898 $7,049 $5,275 Source: company filings D A T A M O N I T O R

LEADING COMPANIES

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Figure 11: United Parcel Service, Inc.: revenues & profitability


Figure 12: United Parcel Service, Inc.: assets & liabilities


MARKET FORECASTS

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MARKET FORECASTS

Market value forecast

In 2015, the global road & rail industry is forecast to have a value of $2,397.8 billion, an increase of 27.4% since 2010.

The compound annual growth rate of the industry in the period 2010–15 is predicted to be 5%.

Table 19: Global road & rail industry value forecast: $ billion, 2010–15 Year $ billion € billion % Growth2010 1,882.2 1,353.6 8.4%2011 1,983.8 1,426.7 5.4%2012 2,080.0 1,495.9 4.8%2013 2,183.0 1,569.9 5.0%2014 2,297.4 1,652.2 5.2%2015 2,397.8 1,724.4 4.4%

CAGR: 2010–15 5.0%


Figure 13: Global road & rail industry value forecast: $ billion, 2010–15


MARKET FORECASTS

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Market volume forecast

In 2015, the global road & rail industry is forecast to have a volume of 24,563.8 billion FTKs, an increase of 25.6% since 2010.

The compound annual growth rate of the industry in the period 2010–15 is predicted to be 4.7%.

Table 20: Global road & rail industry volume forecast: billion FTKs, 2010–15 Year billion FTKs % Growth2010 19,564.3 7.5%2011 20,478.7 4.7%2012 21,457.7 4.8%2013 22,494.3 4.8%2014 23,583.6 4.8%2015 24,563.8 4.2%

CAGR: 2010–15 4.7%


Figure 14: Global road & rail industry volume forecast: billion FTKs, 2010–15


APPENDIX

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APPENDIX

Methodology

Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-checked and presented in a consistent and accessible style.

Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, Datamonitor’s in-house databases provide the foundation for all related industry profiles

Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview

Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients

Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends

Datamonitor aggregates and analyzes a number of secondary information sources, including: - National/Governmental statistics - International data (official international sources) - National and International trade associations - Broker and analyst reports - Company Annual Reports - Business information libraries and databases

Modeling & forecasting tools – Datamonitor has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

APPENDIX

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Industry associations

International Union of Railways (UIC) 16 rue Jean Rey, 75015 Paris, France Tel.: 33 0 1 44 49 20 20 Fax: 33 0 1 44 49 20 29 www.uic.org

Related Datamonitor research

Industry Profile

Road & Rail in the United States

Road & Rail in Canada

Road & Rail in Mexico

Road & Rail in Brazil

APPENDIX

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Disclaimer

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The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

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Global - Road & Rail 0199 - 2136 - 2010


ABOUT DATAMONITOR

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