Southeast Association of Rail Shippers Intermodal Perspective

Don Ingersoll Vice President of Transportation

XPO Today: A Top Ten Global Leader

XPO provides cutting-edge supply chain solutions to the most successful companies in the world

! #2 contract logistics provider worldwide by square footage

! #2 freight brokerage firm worldwide by net revenue

! #1 last mile logistics provider for heavy goods in North America

! #1 manager of expedited shipments in North America

! #3 provider of intermodal in North America

! Largest owned fleet in Europe

! Largest platform for outsourced e-fulfillment in Europe

! Growing presence in global freight forwarding

2 | Intermodal Perspective

Source: Industry publications and company filings

3 | Intermodal Perspective

XPO’s Combined Revenue

Note: Freight Brokerage includes truck brokerage, intermodal, last mile and expedite Pro-forma for the Con-way acquisition, trailing 12 months as of June 30, 2015 Sources: Con-way company data and XPO company data

By Line of Business

Contract Logistics

34%

Freight Brokerage

29%

FTL 9%

Global Forwarding

3%

LTL 25%

By Country of Operation

United States 61%

France 13%

UK 10%

Spain 4%

Other 12%

Intermodal

4 | Intermodal Perspective

! Approximately 11,500 53’ containers under XPO’s control, and access to another 65,000 EMP and UMAX 53-ft. containers

! Over 50,000 units in our small box program

! Service at more than 80 ramps, and a drayage presence at every key port

! Long-term rail agreements in place

! 30 years’ experience in cross-border Mexico intermodal

! Cross-docking and transloading

Domestic and international containers, and ramp and port drayage, in one seamless solution

Source: Company filings

Third largest intermodal provider in North America

Drayage

5 | Intermodal Perspective

! National network capacity of more than 2,200 independent drayage owner operators

–  Access to over 25,000 additional drayage trucks

! 42 terminals with yard storage and 10 empty lifts

–  Container yards equipped with electric guard dog fencing

! Hazmat and tank-endorsed drivers

! C-TPAT and Smart-way Partner

Top ten drayage customers served for over 19 years

Source: Company information

One of the largest and safest drayage operations in North America

6 | Intermodal Perspective

Intermodal Locations

Why Intermodal?

•  Cost Savings

Double Stack Efficiency FSC Reduction

•  Consistent Capacity

OTR Trucking Alternative Surge Ability Railroad Infrastructure

•  Sustainability

Carbon Footprint Savings 1 Train = 280 Trucks Traffic Congestion Reduction

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Intermodal Volume Growth

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Current Challenges

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Intermodal Train Speeds

| Intermodal Perspective 10 Source: AAR

Terminal Dwell

| Intermodal Perspective 11 Source: AAR

Path to Recovery

The problems could not be solved overnight

! Crews (6-9 months)

! Locomotives (12 months)

! Freight Cars (12 months)

! Terminals (18-36 months)

! Track Capacity (18-36 months)

Recent railroad improvements in consistency have helped us improve our customers service to over 98% on-time

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Shifting Truck Driver Demographics

| Intermodal Perspective 13 Source: American Transportation Research Institute

Attracting and Retaining Drivers

! True Safety Focus

! Drivers Must Feel Valued

–  Local Relationships –  Quality Facilities –  Discount Programs

! Consistent Utilization

–  Attractive Business/Lanes –  Home Time –  Flexible Appointments

! Competitive Rates

There is No Silver Bullet

| Intermodal Perspective 14 Source: Journal of Commerce

Container and Chassis Capacity

Container

•  Variability in rail service has resulted longer terminal dwell

•  Longer rail transits and slow turn times result in need for more containers

•  Overall volume increases consuming more capacity

•  Disruptions in network flows making it more difficult to provide planned capacity

Chassis

•  Increase in terminal dwell causing more wheeled units to sit longer

•  Misalignment of chassis demand and supply

•  Steamship lines leaving chassis ownership

•  Challenges with pool chassis maintenance

•  More interest from shippers to develop a long-term dedicated chassis program

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Tailwinds for the Southeast

Shifting Demographics to Southern States West Coast Port Issues Port Diversification Panama Canal Expansion Eastern Ports Infrastructure Improvements Near Sourcing Trend

| Intermodal Perspective 16

Population Change in U.S. States 2010 to 2013

Thank You

| Intermodal Perspective 17