Port of Mobile & New Intermodal Container Transfer Facility (ICTF) · 2017-06-01 · March 2016 Port of Mobile & New Intermodal Container Transfer Facility (ICTF) Prince Rupert Prince

SUCCEEDING THROUGH PARTNERSHIP & SUPPLY CHAIN EXCELLENCE

March 2016

Port of Mobile & New Intermodal Container Transfer Facility (ICTF)

Prince Rupert

Prince George

Vancouver

Edmonton

Calgary

Saskatoon

Winnipeg

Chippewa Falls

Arcadia

Chicago Joliet

Indianapolis Decatur

Detroit

Toronto

Montreal

Moncton

Saint John Halifax

Memphis

Jackson

New Orleans

CN Intermodal terminals CN-served ports CN-served destinations

Mobile 2

CN Terminal Investment

Port Partner Investment

Diversified Portfolio Create Matchback

Intermodal 23%

Petroleum and Chemicals 19%

Grain and Fertilizers 16%

Forest Products 14%

Metals and Minerals 11%

Automotive 6%

Other Revenues 6%

Coal 5%

23,000 engaged employees

20,000 route-miles

C$12.6B of customer support

C$60B of shareholder support

Enabling over $250 billion worth of business

CN is a Solid Partner With a great Network

$1.825 $2.000 $2.297

$2.700 $2.900

2012 2013 2014 2015 2016

•  Capital budget calls for more than C$200M increase over 2015

•  Network efficiency improvements: o  Track infrastructure (rail, ties, bridges etc…) o  Rolling stock o  Positive Train Control (portions of U.S. network)

•  60 new locomotives in 2014, 90 in 2015 and another 90 high horsepower locomotives in 2016.

2015 Direct Intermodal $ Spending Over $1 billion invested in Intermodal alone total to support our growth agenda

Investing 21% of revenues and over 50% of operating income across the company

Investing to Support Capacity, Efficiency & Service for our Partners

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CN currently 7% faster

Than U.S. peer average

Source: AAR – U.S Peers include BNSF, UP, CSX, NS, KCS

Capital Expenditures ($ millions)

Continuing to Invest for Tomorrow’s Service

41%

39%

20%

Containers

TerminalEquipment

TerminalDevelopment

Evolved from railroad thinking…

…to Supply Chain Thinking & Round Trip Thinking

exp b

True destination CNTL

Round-trip

True origin

Rail origin Rail destination

“ It’s about the velocity of the container through the Entire Supply Chain”

Delivering & Refining the End-to-End Supply Chain

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US East Coast

Ports

Suez Canal

Panama Canal

Mobile

HongKongtoMemphisViaPanama(Days)

MobileOcean 31

PortDwell 2Inland 2

TotalTransitTime 35

Memphis

Chicago

HongKongtoChicagoViaPanama(Days)

MobileOcean 31

PortDwell 2Inland 3

TotalTransitTime 36

Hong Kong

Quickest total transit time to the US Midwest 5

Gulf Advantage: Panama Vs. Suez

Port of Mobile May 2016 CN Opens Gateway to U.S. Mid-West & Central Canada

NOW •  Operated by APM Terminals •  2,000 Ft / 610 m berth at 45-foot / 14 m draft •  Weekly carrier service on major trade lanes •  Maersk / CMA CGM / MSC / ZIM / CSCL •  Now: 2 cranes reaching 19 across •  Planning 2 additional cranes reaching 22 across •  Can handle vessels up to 10,000 TEU

CHICAGO DETROIT

MEMPHIS

JACKSON

MOBILE

TORONTO

MONTREAL

INDIANAPOLIS DECATUR

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ICTF PHASE I & II •  80 ac. / 32 ha. Facility - 10,800 ft / 3300 m of working tracks -12,000 ft / 3700 m of support tracks •  Run-around track handling up to 3 unit trains per day •  Dedicated vehicle flyover bridge connecting to the marine terminal •  200,000 TEU annual throughput capacity at completion •  Intermodal ready May 2016

Existing Mobile Container Terminal

Intermodal Container Transfer Facility completed May 2016

Prince Rupert

Prince George

Vancouver

Edmonton

Calgary

Saskatoon

Winnipeg

Chippewa Falls

Arcadia

Chicago Joliet

Indianapolis Decatur

Detroit

Toronto

Montreal

Moncton

Saint John Halifax

Memphis

Jackson

New Orleans

CN Intermodal terminals CN-served ports CN-served destinations

Mobile

Louisville

Cincinnati

Cleveland Columbus

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55 Hours

65 Hours

29 Hours 25 Hours

Goal: 48 Hours

Focusing on Low Ocean terminal Dwell (H2 2015)

Transit Time (Days) Start Up Manifest Service

Rail Port Memphis Chicago Toronto

CN Mobile 2nd Day PM 3rd Day PM 5th Day PM

Transit Time (Days) Critical Mass Intermodal Service

Rail Port Memphis Chicago Toronto

CN Mobile Next Day AM 2nd Day AM 4th Day AM

Last-mile solutions

8 Offering last-mile transportation to your customers

•  CNTL, our trucking division, is a wholly-owned CN subsidiary, incorporated in Canada in 1998.

•  CNTL maintains a fleet of 8,000+ containers, 8,200+ chassis, and 3,000 DRP boxes per week.

•  Over 1100 drivers work for CNTL in Canada & USA. the company has less than 2% annual driver turnover, and a collective agreement until 2019

•  CNTL has an industry-leading safety record.

•  The company operates a state-of-the-art, centralized dispatch with live wireless communication.

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•  250 service-ready locomotives on stand-by •  150,000 feet of Intermodal railcars

in storage at strategic locations •  1,150 fully trained operating crews currently

in laid-off status

Lot’s of Standby Rail Evacuation Capacity in Reserve

“We Can Handle Port Rail Loading Surge and the Recovery From Rail Operational Challenges”

Capacity to grow (Fleet Upgrades)

•  Expanded fleet of over 60 powerpacks •  Average age of the entire fleet is a little over 1 year •  Young Fleet of Nose mount gensets (50 Clips) •  Expanded Fleet of genset chassis.

Robust Monitoring & Exception Management

•  Industry leading monitoring capability •  Innovative technology to remotely monitor PLM

equipped units •  In Transit check for super sensitive loads (Chilled) •  Robust Terminal Process (Minimum off plug hours)

Expansion of Domestic & Cross border reefer Program

•  Currently operating a fleet of 420 X 53’FT reefer intermodal units. •  Expanding the fleet further in 2016. •  State of the art monitoring technology with real time data. •  CN the first railroad to offer reefer intermodal service on rail to Mexico.

“CN invests C$20-million in expansion of cold supply chain reefer capacity” Expanding Products, Capacity and Value For the Cold Supply Chain

We’re Growing Locally and Expanding Globally

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Diversified Asset & Resource Base Expanding the Scope & Reach of Cold Chain

•  First Mile / Last Mile service – OTR Conversion enabling sustainable growth (Fleet of Underslung chassis)

•  Reefer Vendor set up – Calgary (Addressing exceptions with high sense of Urgency) •  In Transit Checks – Superior Intransit checks for highly sensitive chilled loads •  Fleet of Nose Mount gensets – Providing flexibility to start small (Cross border Markets)

•  Cost saving initiatives – DRP, Empty Pipeline management – Moving from surplus location to Demand origins

Operational Excellence :

Service Excellence :

Innovation :

•  24/7 Reefer desk with an expanded team of Logistics Professional following the box •  Reefer Champions within all CN terminals to ensure SOP compliance •  Superior reporting process ( Start up temp / Temp after 15 mins) enabling quicker decision making process •  FOOD SECURITY – Core to CN Supply Cold Chain

•  CN Introduces next generation genset “CN IntelliGEN” enabling better visibility on Train

•  Opportunities to collaborate with CN 53’RF Fleet by offering TRANSLOAD Model on selected corridors

11 Leading The Industry Through Constant Innovation & Investment

International Specific : 15 fully trained Logistics staff

!  Import/Export o  Online tracking from end to end. o  Proactive customer communication

on movement and exceptions o  Daily monitoring of port glowing boxes

!  Equipment Control o  Customised reporting capability o  Monitor DRP equipment turn around time o  Plan and execute empty repositioning to

the ports o  End to End pipeline management

!  Cargo Cool Reefers o  Dedicated reefer specialist o  End to End monitoring of traffic o  Manage reefer allocations by service &

customer o  Import glowing box monitoring at all ports

!  Auto Team o  Dedicated single point of contact o  Customized reports created by extracting the automotive customer from the rail bill o  Ability to prioritize the unloading of hot containers at the destination terminal o  Identify automotive export shipments at the origin terminal to ensure they make the intended vessel

“what gets measured, gets done” Export desk, Reefer desk, Automotive desk,

Equipment desk, customer specific service Rep.

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Proactive, Specialized Supply Chain Logistics Support

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•  100+ hours of exclusive berth space options available

•  Currently serving 8,200 TEU Post Panamax vessels with ability to service 11,000 TEU vessels 19 slots wide.

•  4 days available for exclusive use of berth space

Available space for new services and larger vessels

Today’s Window of Opportunity

Port Expansion Underway

Deep Water Port

Post Panamax Ready

Low Port Dwell

Significant On Dock Capacity

Motivated Labour Force

Ample Berth Window Availability

Rail Terminal Expansion Underway Significant

Intermodal Rail Capacity

Supply Chain Collaboration with Partners

Service Level Agreement Performance Measurements

Import and Export Positioned

Transit Time Advantage to the US Midwest

Extensive Inland Reach

Cold Chain Ready

Cost Competitive

Summary : Service, Capacity and Cost Advantage

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