The Importance of Rail to Ports-to-Plains

San Angelo Junction - Presidio, Tx.

OVERVIEW

GEOGRAPHICAL LOCATION / INTERLINE CONNECTIONS

LINE UP-GRADING

REHABILITATION WORKS

INTERNATIONAL BRIDGE

OPERATING CONDITIONS

TRAFFIC

HISTORICAL DATA

SHIPPERS

FINANCIAL RESULTS

GROWTH STRATEGY

TEXAS PACIFICO TRANSPORTATION Ltd.

BNSF

San AngeloMcCamey

Fort Stockton BCFPTAlpine

Paisano

Presidio

UP

BNSF

San Angelo Jct.

Brownwood

FortWorth

Dallas

UP

Ojinaga

MEXICO

EUA (TEXAS)

Ricker

to Lubbock

Sulphur Jct.

Rankin

San Angelo Junction - Presidio, Tx

DIVISION TRAMO MILLAS KM

San Angelo Jct - San Angelo 70.7 113.8

San Angelo - McCamey 124.1 199.7

subtotal: 194.8 313.4

McCamey - Fort Stockton 43.1 69.3

Fort Stockton - Alpine 62.6 100.7

Alpine - Paisano 12.4 20.0

Paisano - Presidio 69.8 112.3

subtotal: 187.9 302.3

Total: 382.7 615.8

ALPINE

SAN ANGELO

Texas Pacifico & Connections

FWRR

1720 1837 2008 2072 23791657

26903302

2392

4212

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

# c

ars

Texas Pacifico TransportationRevenue Cars

Track rehabilitation cars = 388

Note: Low wheat harvest years; 2006 = 181 cars, 2009 = 144

Wheat harvestHirschfeld-

SteelBadger-Sand -

San AngeloBuddys-

Potash, UreaHudson-Molasses

HTC-Bonemeal,

Tankage

General-Storage San

Angelo

Kasberg-Grain,Milo

Angelo-PelletMoore ranch

grain

Tapia-Grain, Canola, Mash,

Feed

Ind. Tubular-Tubing

SA Yard-FeedBallinger-

CottonAcme-Iron-

ScrapTrac Works

BallastOthers

Halliburton -sand

Badger-Sand-Rankin

Vestas-Wind Towers

Edg Mur-Pipe Texsand SandProfill-

LimestoneUP storage

2001 385 316 7 32 307 28 141 1 59 121 323

2002 451 393 30 44 115 130 6 84 177 219 188

2003 473 372 55 63 183 16 12 61 107 16 25 236 389

2004 604 352 97 63 118 20 47 79 1 3 194 494

2005 782 255 136 101 102 22 53 60 42 193 561 72

2006 181 328 110 105 38 64 44 46 73 80 588

2007 1042 441 109 88 24 165 34 29 15 70 49 480 144

2008 792 608 110 94 29 456 172 62 11 32 48 419 199 270

2009 144 251 165 198 90 52 117 34 84 24 17 2 5 153 1056

2010 1141 402 757 222 93 106 11 32 79 10 388 11 538 422

0

200

400

600

800

1000

1200

Texas Pacifico Transportation Ltd Revenue carsMain Customers / Commodities 2001 - 2010

1720

1837

2008

TOTALS

2072

2379

1657

2690

3302

2392

4212

Mertzon – Fort Stockton

20%

Class of Operating

from to from to Track Speed limits

0.3 75 San Angelo Jct San Angelo Excepted track 10 mph

712 722 San Angelo San Angelo Excepted track 10 mph

722 869.41 San Angelo Sulphur Jct Class II 25 mph

869.41 1029.1 Sulphur Jct Presidio Excepted track 10 mph

TRACK OPERATING CONDITIONS AT TIME OF TRANSFERENCE (2001)

Mile Post Location

SECTION TIES TERMINATION CONTRIBUTION

INSTALLED DATE BY

SN ANGELO JCT-SAN ANGELO I 15,000 Feb/2003 1,278,550.40$ TXPF

SAN ANGELO JCT-SAN ANGELO II 7,000 253,465.00$ TXPF

PAISANO JCT-PRESIDIO III 6,500 Aug/2003 684,749.65$ TXPF

SAN ANGELO- ALPINE III 27,000 Dic/2003 2,875,470.19$ TXPF

TOTAL TXPF 5,092,235.25$

PAISANO JCT-PRESIDIO III-A 37,236 Sep/2005 5,457,430.00$ TXDOT

TOTAL TxDOT 5,457,430.00$

TRACK REHABILITATION WORKS (2002-2005)

COST

YEAR FOUNDING COMMENTS YEAR FOUNDING COMMENTS

2004 212,356.00$ Omnibus ACT (reminder) 2007 910,000.00$ Contribution from TXPF

2009 14,090,000.00$ ARRA Funds 2009 4,600,000.00$ Contribution from TXPF

2010 1,000,000.00$ FRA earmark (Conaway for 7107-09-005) 2009 899,000.00$ Contribution from TXPF Tie cost

2010 1,000,000.00$ FRA earmark (Rodriguez for 7106-03-001) his district worse track2011 1,400,000.00$ Contribution from TXPF

2010 250,000.00$ Donation from city of San Angelo for 7107-09-005

2010 3,000,000.00$ Texas General Revenue (Darby) for Coleman- San Angelo

TOTAL 19,552,356.00$ 71% TOTAL 7,809,000.00$ 29%

PROJECTS

1 Ballinger Rail Bridge Replacement

2 Tie & Rail Rehabilitation

3 Anchor Project

4 Grade Crossing & Railroad Rehabilitation

5 Additional Bridge Rehabilitations

6 San Angelo Junction Siding Project

7 San Angelo -Ft Stockton tie project

FEDERAL TXPF

TXPF & FEDERAL CONTRIBUTION FUNDS FOR ADDITIONAL TRACK REHABILITATION WORKS (2009-2012)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Revenues $819,483 $950,716 $1,042,484 $954,870 $1,389,046 $2,051,836 $2,993,525 $3,532,852 $2,457,259 $3,920,952

Expenses $(1,068,963) $(1,296,172) $(1,541,165) $(2,428,779) $(2,718,110) $(3,725,507) $(4,605,662) $(5,184,329) $(4,051,480) $(4,393,707)

Net Income $(249,480) $(345,456) $(498,681) $(1,473,909) $(1,329,064) $(1,673,671) $(1,612,137) $(1,651,477) $(1,594,221) $(472,755)

$(6,000,000)

$(4,000,000)

$(2,000,000)

$-

$2,000,000

$4,000,000

$6,000,000

usd

Year

Texas Pacifico Transportation Ltd.Financial Results 2001-2010

EMPHASIS ON SECTION SAN ANGELO – SAN ANGELO Jct .

SERVICES TO SATISFY REAL VOLUMES, IN SECTION SAN ANGELO – Ft. STOCKTON – ALPINE.

INTERNATIONAL TRAFFIC.

INTERLINE TRAFFIC PROMOTION.

REVENUE PROJECTIONS.

ADDITIONAL INVESTMENTS.

T X P F G R O W T H S T R A T E G Y