“Barging Petcoke Through The Mississippi and Intercoastal

Waterways”Presentation by

C.M.(Chuck) Jones, Jr.

IC RailMarine Terminal

Convent, LA

Biography

• C.M. (Chuck) Jones, Jr. has worked for Peabody Coal, AMAX Coal, Federal Barge Lines, Drummond Coal, Oxbow Carbon & Minerals, and IC RailMarine Terminal during is tenure in the marketing of coal, petroleum coke, and barge/terminalling services since 1974.

• His responsibilities included sales/marketing of coals located in the Appalachian, Illinois, and Powder River Basin coals, as well as South America (Colombian and Venezuelan) coals.

Biography • While representing Federal Barge Lines, he negotiated

barge freight contracts of carbon products, including coal and petroleum coke. At Oxbow, he represented petroleum coke and Colorado coal to customers in the Southeast and Midwest.

• Most recently, he was the Director of Constituent Services for the State of Alabama at the State Capitol in Montgomery, AL for Governor Bob Riley.

• He has a wife (Becky) and two children (Kelly and Matt) who attend college in Alabama. Austin Peay State University, Clarksville, TN, is his alma mater.

Focus

• Study barge shipments delivering petroleum coke to potential Lower Mississippi River and Gulf Intercoastal Waterway terminals.

• Reflect on the activities of petroleum coke shipments to these various transportation points.

Overview of Refinery Marketing

• Petroleum coke marketing agreements incorporate short and longer term arrangements (Monthly-Multiyear).

• Barging arrangements either mirror the individual marketing agreement (“Back-to Back”) or construct separate agreements structured toward origin/destination preferences.

• Typically, open hopper, inland river barges of approximately 1500 tons per barge are used. However, some dedicated movements sometimes use “stumbo” barges (700-1000 tons) or specialty barges (3000 tons).

• Refineries located near a river system or open water usually have barge loading capabilities. Petroleum coke is delivered by conveyor belt, rail, or truck to the barge loadout. Then, barges are transported to their domestic customers.

Overview of Refinery Marketing(Continued)

• Refineries located near a river system or open water usually have barge loading capabilities. Petroleum coke is delivered by conveyor belt, rail, or truck to the barge loadout. Then, barges are transported to their domestic customers.

• If a refinery is near the Gulf of Mexico, shipments are transferred from barges to vessels for delivery to foreign customers at a fixed, deep draft terminal or floating cranes which midstream load these vessels.

• If a refinery is near the Gulf of Mexico, shipments are transferred from barges to Blue Water vessels for delivery to foreign customers at a fixed, deep draft terminal or floating cranes which midstream load these vessels.

U.S. Gulf Coast Petroleum Coke-2003

(PADD 3)(@ 8.0% Moisture)

• Production-21.7 Million Metric Tons

• Exports- 15.7 Million Metric Tons

Export vs. Fuel Grade Petcoke

New Orleans District Export Volumes vs. Fuel Grade Petcoke Export Price

0.0

0.5

1.0

1.5

2.0

2.5

1996 1997 1998 1999 2000 2001 2002 2003

millions MT

0

5

10

15

20

25$/MT

New Orleans Area Ports

>50 HGI Export Price

Source: Pace Petroleum Coke Quarterly

Export Volume vs. Petcoke Price

New Orleans District Export Volumes vs. Fuel Grade Petcoke Export Price

0.0

0.5

1.0

1.5

2.0

2.5

1996 1997 1998 1999 2000 2001 2002 2003

millions MT

0

5

10

15

20

25$/MT

New Orleans Area Ports

Lake Charles >50 HGI Export Price

Source: Pace Petroleum Coke Quarterly

Marathon-Garyville, LA

U.S. Cokers-Jacobs Consultancy

Lower Mississippi Cokers

• ExxonMobil-Baton Rouge, LA (MP 232.2)

• Marathon (MAP)-Garyville, LA (MP 140.5)

• Chalmette LLC-Chalmette, LA (MP 89.1)

Gulf Intercoastal Waterway (West) Cokers

• ConocoPhillips-Lake Charles, LA

(MP 245.2)

• CITGO-Lake Charles, LA (MP 247.4)

Gulf Intercoastal Waterway (West) Cokers

• Equilon-Port Arthur, TX (MP 278.3)• Premcor-Port Arthur, TX (MP 290.5)• ExxonMobil-Beaumont, TX (MP 293.3)• ExxonMobil-Texas City, TX (MP 358.0)• BP-Amoco-Texas City, TX (MP 358.0)• Sweeney-Houston, TX (MP 399.1)• Crown-Houston, TX (MP 399.1)• Shell Deer Park, Houston, TX (MP 399.1)• CITGO-Corpus Christi, TX (MP 555.6)• Valero, Corpus Christi, TX (MP 558.0)

Intercoastal Waterway (East) Cokers

• ChevronTexaco-Pascagoula, MS

(MP 111.0)

IC RailMarine Terminal

IC RailMarine Terminal

IC RailMarine Terminal

IC RailMarine Terminal

• Only unit train, rail-served facility on lower Mississippi that has dual crane discharging capability, transfer from ground storage and/or direct transfer from marine vessel directly to rail.

• Ability to discharge deepwater vessels at a rate of 10-20,000 metric tons per day as a minimum depending upon which commodity being transferred. Speed of vessel turnaround time very important for marine vessel owners/charterers.

• Bottom/rotary car dumper ideal for barge cargos ex railcars.• Flexibility with conveyors means ships can be discharging

while barges are loading.• State-of-the-art concrete capped storage pads can be swept

clean promptly and can switchover between cargos very quickly.

• Environmental permits to handle a wide variety of bulk commodities without delays for reviews.