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TRANSPORTATION & LOGISTICS€¦ · INDUSTRY UPDATE │ JANUARY 2015 LOGISTICS | SHIPPERS ADJUST SUPPLY CHAINS TO COPE WITH CONGESTION LOGISTICS | WHAT TO DO WITH THE RETURNS? TRUCKING
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www.harriswilliams.com
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised andregulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
TRANSPORTATION & LOGISTICS
0
INDUSTRY UPDATE │ JANUARY 2015
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www.harriswilliams.com
MARINE | PANAMA CANAL EXPANSION A BOON FOR MIDSIZE COMPANIES, TOO
Jeffery PerkinsManaging Director [email protected]+49 (0) 69 3650638 00
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JANUARY 2015
LOGISTICS | SHIPPERS ADJUST SUPPLY CHAINS TO COPE WITH CONGESTION
LOGISTICS | WHAT TO DO WITH THE RETURNS?
TRUCKING | A COMEBACK FOR DEDICATED CONTRACT CARRIAGE
AIR | GLOBAL AIR FREIGHT TO GROW BY 4.5% IN 2015, SAYS IATA
From port congestion and new ocean alliances to driver shortages and rail serviceworries, the global supply chain is more fragile than at any point in recent memory.Three shippers discuss how they’re adjusting to the challenges.Journal of Commerce
The holiday season is now over and from all indications; it was a success for onlineretail. While all data has yet to be compiled, estimates show online retail salesincreased 15% to 18%. Meanwhile, estimates suggest U.S. in-store sales declined 7%to 10%, depending on source.Transport Intelligence
A crisis in trucking capacity is forcing shippers to embrace new strategies to keeptheir freight moving while maintaining customers’ delivery commitments. Toguarantee the trucks they need, many shippers are contracting with asset-basedproviders for dedicated carrier services. That’s a marked shift from the greaterreliance we’ve seen in recent years on brokered freight.Transport Topics
When the much-anticipated expansion of the Panama Canal is completed latenext year, cargo ships the size of aircraft carriers will ferry goods from LatinAmerica and Asia directly to East Coast ports and back. These ships — up to two-and-a-half times bigger than those currently allowed — will uproot trade patternsdeveloped over the last century and will affect nearly every sector of the U.S.economy.CFO
RAIL | AAR REPORTS INCREASED FREIGHT RAIL TRAFFIC FOR 2014
The Association of American Railroads (AAR) today reported increased freight railtraffic for all of 2014, December and the week. Total combined traffic for 2014 onU.S. railroads was 28,673,776 carloads, containers, and trailers, up 1,233,184 units or4.5 percent over 2013 and the highest annual total since 2007.Association of American Railroads
RAIL | U.S. SHIPPERS PULL BACK ON INTERMODAL FOR FIRST TIME SINCE 2010
U.S. intermodal shippers surveyed by an investment research firm pulled morefreight off intermodal trains and put it back on trucks during the third quarter thanvice-versa, the first time the survey tracked intermodal conversion losing groundsince 2010. Shippers said they expect to further decelerate their conversion ofloads to rail, but survey results suggest intermodal rails will ultimately beginregaining share over the next six to 12 months.Journal of Commerce
International Air Transport Association (IATA) expects global air freight markets toexpand by 4.5% in 2015, outpacing the projected growth for world trade of 4%.The trade association formed by global airlines revealed that demand measuredin freight tonne kilometers (FTK) rose by 4.2% in November 2014 as compared tosame time in the previous year. Carriers in the Asia-Pacific and Middle East regionshas experienced the most prominent growth, 5.9% and 12.9% respectively.Logistics Business Review
8/27/2014 Logistics Active Aero Group, Inc.Prov ides supply chain solutions to customers with sensitive or time-
critical freight, principally in the United States and Mexico.
Roadrunner Transportation
Systems, Inc.
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PUBLIC MARKETS OVERVIEW
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TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JANUARY 2015
TEV / LTM EBITDA TEV / 2015P EBITDA
AVERAGE REVENUE GROWTH (2011 – 2014E) AVERAGE REVENUE GROWTH (2014E – 2016P)
AVERAGE EBITDA GROWTH (2011 – 2014E) AVERAGE EBITDA GROWTH (2014E – 2016P)
7.7x
8.7x
9.5x
10.8x
11.5x
Transportation
Equipment
Trucking
Marine
Rail & Rail Services
Logistics Providers
5.9%
6.6%
6.6%
7.6%
7.7%
Transportation
Equipment
Logistics Providers
Rail & Rail Services
Marine
Trucking
8.0%
8.7%
9.0%
14.0%
18.8%
Logistics Providers
Transportation
Equipment
Marine
Trucking
Rail & Rail Services
6.0x
7.0x
8.4x
8.7x
10.1x
Transportation
Equipment
Trucking
Marine
Rail & Rail Services
Logistics Providers
6.1%
7.6%
8.7%
10.0%
11.8%
Marine
Logistics Providers
Transportation
Equipment
Trucking
Rail & Rail Services
10.3%
11.2%
11.6%
12.9%
13.7%
Transportation
Equipment
Rail & Rail Services
Logistics Providers
Marine
Trucking
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STOCK PRICE PERFORMANCE
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TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JANUARY 2015
(Indexed to January 13, 2014)
TRAILING TWELVE MONTHS
(20%)
(10%)
0%
10%
20%
30%
40%
50%
1/13/14 4/13/14 7/13/14 10/13/14 1/13/15
Logistics Providers Trucking Rail & Rail Services
Marine Transportation Equipment S&P 500 Index
MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH)
(0.4%)
(0.3%)
(0.3%)
0.6%
8.3%
Marine
Logistics Providers
Trucking
Rail & Rail Services
Transportation
Equipment
(18.6%)
4.1%
9.7%
12.8%
29.3%
Marine
Logistics Providers
Transportation
Equipment
Rail & Rail Services
Trucking
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OUR GROUP
Harris Williams & Co. is a leading advisor to the transportation and logistics M&A market. Our Transportation & LogisticsGroup has experience across a broad range of sectors, including third-party logistics, rail and rail services, marinetransportation, transportation equipment, niche transportation, automotive and heavy duty vehicle, and airport andaviation services.
Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities.Our clients benefit from our deep-sector experience, integrated industry intelligence andcollaboration across the firm, and our commitment to learning what makes them unique. For moreinformation, visit our website at www.harriswilliams.com/industries.
Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
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