Transportation & Logistics

TRANSPORTATION & LOGISTICS

INDUSTRY UPDATE │ JANUARY 2015

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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.

0 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JANUARY 2015

WHAT WE’RE READING

CONTENTS LOGISTICS | SHIPPERS ADJUST SUPPLY CHAINS TO COPE WITH CONGESTION . M&A TRANSACTIONS From port congestion and new ocean alliances to driver shortages and rail service . PUBLIC MARKETS OVERVIEW worries, the global supply chain is more fragile than at any point in recent memory. Three shippers discuss how they’re adjusting to the challenges. . STOCK PRICE PERFORMANCE Journal of Commerce . OUR GROUP

LOGISTICS | WHAT TO DO WITH THE RETURNS?

The holiday season is now over and from all indications; it was a success for online CONTACTS retail. While all data has yet to be compiled, estimates show online retail sales increased 15% to 18%. Meanwhile, estimates suggest U.S. in-store sales declined 7% UNITED STATES to 10%, depending on source. Transport Intelligence Frank Mountcastle Managing Director TRUCKING | A COMEBACK FOR DEDICATED CONTRACT CARRIAGE [email protected] +1 (804) 915-0124 A crisis in trucking capacity is forcing shippers to embrace new strategies to keep Jason Bass their freight moving while maintaining customers’ delivery commitments. To Managing Director guarantee the trucks they need, many shippers are contracting with asset-based [email protected] providers for dedicated carrier services. That’s a marked shift from the greater +1 (804) 915-0132 reliance we’ve seen in recent years on brokered freight. Joe Conner Transport Topics Managing Director [email protected] RAIL | U.S. SHIPPERS PULL BACK ON INTERMODAL FOR FIRST TIME SINCE 2010 +1 (804) 915-0151 Jeff Burkett U.S. intermodal shippers surveyed by an investment research firm pulled more Vice President freight off intermodal trains and put it back on trucks during the third quarter than [email protected] vice-versa, the first time the survey tracked intermodal conversion losing ground +1 (804) 932-1334 since 2010. Shippers said they expect to further decelerate their conversion of loads to rail, but survey results suggest intermodal rails will ultimately begin Jershon Jones Vice President regaining share over the next six to 12 months. [email protected] Journal of Commerce +1 (804) 932-1356 Jeff Kidd RAIL | AAR REPORTS INCREASED FREIGHT RAIL TRAFFIC FOR 2014 Vice President [email protected] The Association of American Railroads (AAR) today reported increased freight rail +1 (804) 915-0178 traffic for all of 2014, December and the week. Total combined traffic for 2014 on U.S. railroads was 28,673,776 carloads, containers, and trailers, up 1,233,184 units or EUROPE 4.5 percent over 2013 and the highest annual total since 2007. Association of American Railroads Jeffery Perkins Managing Director MARINE | PANAMA CANAL EXPANSION A BOON FOR MIDSIZE COMPANIES, TOO [email protected] +49 (0) 69 3650638 00 When the much-anticipated expansion of the Panama Canal is completed late next year, cargo ships the size of aircraft carriers will ferry goods from Latin America 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 patterns developed over the last century and will affect nearly every sector of the U.S. economy. CFO

AIR | GLOBAL AIR FREIGHT TO GROW BY 4.5% IN 2015, SAYS IATA

International Air Transport Association (IATA) expects global air freight markets to expand by 4.5% in 2015, outpacing the projected growth for world trade of 4%. The trade association formed by global airlines revealed that demand measured in freight tonne kilometers (FTK) rose by 4.2% in November 2014 as compared to same time in the previous year. Carriers in the Asia-Pacific and Middle East regions has experienced the most prominent growth, 5.9% and 12.9% respectively. Logistics Business Review

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PAGE | 1 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JANUARY 2015 M&A TRANSACTIONS

RECENT M&A TRANSACTIONS1,2

Date Sector Target Business Description Acquirer

Ontario Teachers' Pension Pending Logistics PODS Enterprises, Inc. Provides container-based moving and storage services. Plan

GENCO Distribution Provides product lifecycle and reverse logistics solutions in North Pending Logistics FedEx Corporation Systems, Inc. America and internationally.

Non-asset based third party logistics provider to the petroleum and Pending Logistics Charter Brokerage LLC Berkshire Hathaway Inc. chemical industries.

Engages in Jones Act container shipping with primary service to ports Matson Navigation Pending Marine Horizon Lines, Inc. within the continental United States, Alaska, Hawaii, and Puerto Rico. Company, Inc.

Neovia Logistics Provides third party contract logistics services, including warehouse The Goldman Sachs Group Pending Logistics Services, LLC management, fulfillment, and distribution solutions. Rhone Capital L.L.C.

Provides regional less-than truckload, truckload, and specialized 1/9/2015 Trucking Gardewine Group Inc. Mullen Group Ltd. truckload services primarily in Manitoba and Ontario.

Largest provider of online freight brokerage services in the United C.H. Robinson Company, 1/5/2015 Logistics Freightquote.com, Inc. States. Inc.

Provides international e-commerce support services, including duty 12/16/2014 Logistics Bongo International, LLC FedEx Corporation and tax calculations, export compliance, and currency conversions.

Provides freight transportation services in Canada and the United 12/2/2014 Trucking Contrans Group Inc. TransForce Inc. States, including van, flatbed, waste, tank, dump, and logistics.

Logistics Management Non-asset based third party logistics provider with particular strength 11/5/2014 Logistics Transplace Inc. Solutions LLC in the chemical and industrial manufacturing sectors.

Regional for-hire and dedicated truckload carrier providing dry van 10/24/2014 Trucking A&S Services Group, LLC Celadon Group Inc. transportation, logistics, warehousing, and distribution services.

Transportation Insight, Full-service, non-asset based third party logistics provider in North 10/15/2014 Logistics Ridgemont Equity Partners LLC America.

United Parcel Service, 10/7/2014 Logistics i-parcel, LLC U.S.-based international e-commerce enabler and logistics company. Inc.

Lone Star Transportation, Provides heavy haul and open-deck carrier services in North 10/3/2015 Trucking Daseke, Inc. LLC America.

Transport Investments, Asset-light company focused on providing flatbed, drop-deck, Yukon Partners 9/18/2014 Trucking Inc. specialized, and heavy-haul trucking and brokerage services. Revelstoke Capital

New Breed Holding Provides complex, technology-enabled contract logistics for 9/2/2014 Logistics XPO Logistics, Inc. Company companies in high-growth sectors.

Jacobson Holding Offers value-added warehousing services in North America with Norbert Dentressangle 8/29/2014 Logistics Company, L.C. integrated domestic transportation management capabilities. S.A.

Provides supply chain solutions to customers with sensitive or time- Roadrunner Transportation 8/27/2014 Logistics Active Aero Group, Inc. critical freight, principally in the United States and Mexico. Systems, Inc.

PAGE | 2 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JANUARY 2015 PUBLIC MARKETS OVERVIEW

TEV / LTM EBITDA TEV / 2015P EBITDA

Logistics Providers 11.5x Logistics Providers 10.1x

Rail & Rail Services 10.8x Rail & Rail Services 8.7x

Marine 9.5x Marine 8.4x

Trucking 8.7x Trucking 7.0x

Transportation Transportation 7.7x 6.0x Equipment Equipment

AVERAGE REVENUE GROWTH (2011 – 2014E) AVERAGE REVENUE GROWTH (2014E – 2016P)

Rail & Rail Services 11.8% Trucking 7.7%

Trucking 10.0% Marine 7.6%

Transportation 8.7% Equipment Rail & Rail Services 6.6%

Logistics Providers 7.6% Logistics Providers 6.6%

Transportation Marine 6.1% 5.9% Equipment

AVERAGE EBITDA GROWTH (2011 – 2014E) AVERAGE EBITDA GROWTH (2014E – 2016P)

Rail & Rail Services 18.8% Trucking 13.7%

Trucking 14.0% Marine 12.9%

Marine 9.0% Logistics Providers 11.6%

Transportation 8.7% Rail & Rail Services 11.2% Equipment

Transportation Logistics Providers 8.0% 10.3% Equipment

PAGE | 3 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JANUARY 2015 STOCK PRICE PERFORMANCE

MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH)

Transportation 8.3% Equipment Trucking 29.3%

Rail & Rail Services 0.6% Rail & Rail Services 12.8%

Transportation Trucking (0.3%) 9.7% Equipment

Logistics Providers (0.3%) Logistics Providers 4.1%

Marine (0.4%) Marine (18.6%)

TRAILING TWELVE MONTHS

(Indexed to January 13, 2014)

50%

40%

30%

20%

10%

(10%)

(20%) 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

PAGE | 4 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JANUARY 2015 OUR GROUP

Harris Williams & Co. is a leading advisor to the transportation and logistics M&A market. Our Transportation & Logistics Group has experience across a broad range of sectors, including third-party logistics, rail and rail services, marine transportation, transportation equipment, niche transportation, automotive and heavy duty vehicle, and airport and aviation services.

2014 CLOSED T&L TRANSACTIONS

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DEEP EXPERIENCE ACROSS T&L SECTORS

THIRD-PARTY LOGISTICS

RAIL & RAIL SERVICES

MARINE TRANSPORTATION

TRANSPORTATION EQUIPMENT

NICHE TRANSPORTATION

AUTOMOTIVE & HEAVY DUTY VEHICLE

AIRPORT & AVIATION SERVICES

PAGE | 5 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JANUARY 2015

OUR GROUP

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 and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website at www.harriswilliams.com/industries.

Aerospace, Defense Building Products Business Consumer Industrials & Government & Materials Services Services

Energy Healthcare Specialty Technology, Transportation & Power & Lifesciences Distribution Media & Telecom & Logistics

HARRIS WILLIAMS & CO. OFFICE LOCATIONS

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Boston Philadelphia Frankfurt Two International Place 1600 Market Street Bockenheimer Landstrasse 33-35 24th Floor 21st Floor 60325 Frankfurt Boston, Massachusetts 02110 Philadelphia, Pennsylvania 19103 Germany Phone: +1 (617) 482-7501 Phone: +1 (267) 675-5900 Phone: +49 069 3650638 00 Fax: +1 (617) 482-7503 Fax: +1 (267) 675-5901 Fax: +49 069 3650638 01 Cleveland Richmond (U.S. Headquarters) London 1900 East 9th Street 1001 Haxall Point 63 Brook Street 20th Floor 9th Floor London W1K 4HS, England Cleveland, Ohio 44114 Richmond, Virginia 23219 Phone: +44 (0) 20 7518 8900 Phone: +1 (216) 689-2400 Phone: +1 (804) 648-0072 Fax: +44 (0) 20 7526 2187 Fax: +1 (216) 689-2401 Fax: +1 (804) 648-0073 Minneapolis San Francisco NETWORK OFFICES 222 South 9th Street 575 Market Street Suite 3350 31st Floor Beijing New Delhi Minneapolis, Minnesota 55402 San Francisco, California 94105, USA Phone: +1 (612) 359-2700 Phone: +1 (415) 288-4260 Hong Kong Shanghai Fax: +1 (612) 359-2701 Fax: +1 (415) 288-4269 Mumbai

PAGE | 6 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JANUARY 2015 PUBLIC COMPARABLES

Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA EBITDA TEV Jan-15 Dec-14 Prior Month Prior Year High % of High Jan-14 Jul-14 Current 2014E 2015P Transportation & Logistics

Logistics Providers Agility Public Warehousing Company KSC $2,629 $2.52 $2.64 (4.6%) 3.7% $2.93 86.0% 8.4x 8.9x 8.3x NA NA Air Transport Services Group, Inc. 871 8.20 7.84 4.6% 5.8% 9.57 85.7% 5.6x 5.2x 5.0x 5.0x 4.7x Atlas Air Worldwide Holdings, Inc. 2,904 46.66 46.62 0.1% 8.5% 50.12 93.1% 8.2x 8.0x 8.4x 9.1x 8.6x CH Robinson Worldwide Inc. 11,370 72.90 72.29 0.9% 26.3% 77.49 94.1% 13.0x 13.9x 14.9x 14.2x 12.7x Deutsche Post AG 41,762 31.45 32.72 (3.9%) (11.5%) 33.65 93.5% 9.9x 9.7x 9.7x 7.9x 7.7x DSV A/S 6,244 31.14 30.47 2.2% (4.6%) 31.17 99.9% 12.7x 12.0x 12.2x 11.9x 11.2x Echo Global Logistics, Inc. 623 26.75 27.67 (3.3%) 29.5% 30.18 88.6% 15.7x 14.7x 19.2x 14.0x 11.3x Expeditors International of Washington Inc. 7,390 43.61 44.67 (2.4%) 0.0% 47.24 92.3% 12.6x 12.4x 11.9x 11.6x 10.7x FedEx Corporation 51,360 172.57 175.79 (1.8%) 21.0% 183.51 94.0% 7.4x 7.7x 8.0x 8.6x 7.5x Forward Air Corp. 1,407 46.97 49.24 (4.6%) 5.8% 51.37 91.4% 11.8x 12.3x 11.5x 10.5x 9.2x Hub Group Inc. 1,278 34.70 35.82 (3.1%) (17.9%) 51.47 67.4% 11.1x 13.0x 9.2x 11.2x 9.7x JB Hunt Transport Services Inc. 10,191 79.87 82.16 (2.8%) 0.8% 85.54 93.4% 12.1x 11.0x 11.5x 11.1x 9.9x Kuehne + Nagel International AG 15,299 134.82 135.17 (0.3%) 0.8% 136.78 98.6% 14.0x 13.7x 14.8x 15.0x 14.2x Landstar System Inc. 2,974 67.17 73.53 (8.6%) 15.8% 81.80 82.1% 13.3x 13.1x 13.1x 11.9x 10.7x Panalpina World Transport Holding Ltd. 2,864 134.23 135.69 (1.1%) (18.2%) 153.02 87.7% NM 19.1x 18.2x 15.3x 12.0x Roadrunner Transportation Systems, Inc. 1,337 23.90 21.69 10.2% (17.2%) 29.82 80.1% 11.5x 11.3x 11.0x 11.0x 8.9x Ryder System, Inc. 9,106 88.14 87.71 0.5% 20.7% 95.82 92.0% 5.3x 5.9x 5.8x 5.6x 5.2x TransForce Inc. 3,458 25.01 24.93 0.3% 12.1% 25.37 98.6% 8.9x 9.9x 10.6x 9.9x 7.4x United Parcel Service, Inc. 106,007 109.64 110.00 (0.3%) 6.9% 113.10 96.9% 11.4x 12.6x 13.3x 11.3x 10.3x Universal Truckload Services Inc. 974 25.17 28.45 (11.5%) (19.0%) 34.07 73.9% 9.9x 8.9x 8.8x 8.4x 7.3x UTi Worldwide Inc. 1,786 11.85 11.07 7.0% (31.9%) 17.57 67.4% NM 18.0x NM 16.7x 18.7x World Fuel Services Corp. 3,765 46.94 47.00 (0.1%) 4.1% 49.80 94.3% 11.3x 12.6x 12.1x 11.5x 10.5x XPO Logistics, Inc. 3,333 38.77 37.32 3.9% 31.3% 42.55 91.1% NM NM NM NM 14.7x Median (0.3%) 4.1% 92.0% 11.3x 12.1x 11.5x 11.2x 10.1x Trucking ArcBest Corporation $1,021 $41.59 $44.00 (5.5%) 21.3% $47.52 87.5% 8.5x 7.8x 6.9x 6.6x 5.0x Celadon Group Inc. 845 22.55 21.16 6.6% 10.5% 24.69 91.4% 7.7x 7.8x 8.3x 8.3x 6.9x Con-way Inc. 2,899 44.93 47.08 (4.6%) 5.1% 53.54 83.9% 6.4x 6.7x 6.0x 5.5x 5.0x Covenant Transportation Group, Inc. 722 28.61 27.89 2.6% 251.9% 29.50 97.0% 4.7x 5.7x 10.0x 8.5x 7.2x Heartland Express, Inc. 2,305 26.29 25.78 2.0% 25.9% 27.96 94.0% 10.8x 11.1x 12.1x 9.5x 8.3x Knight Transportation Inc. 2,732 33.22 32.11 3.5% 69.7% 34.69 95.8% 8.4x 9.7x 12.7x 11.1x 9.4x Marten Transport Ltd. 733 21.22 20.65 2.8% 6.1% 25.71 82.5% 6.0x 6.5x 6.7x 6.3x 5.4x Old Dominion Freight Line Inc. 6,494 73.33 77.84 (5.8%) 32.7% 81.48 90.0% 10.8x 10.7x 12.0x 11.2x 9.6x P.A.M. Transportation Services, Inc. 449 53.06 49.76 6.6% 154.5% 55.11 96.3% 5.1x 6.1x 8.1x 7.5x 6.4x Quality Distribution Inc. 605 8.88 9.90 (10.3%) (38.5%) 15.83 56.1% 10.6x 11.8x 8.8x 7.7x 6.6x Saia, Inc. 1,319 51.03 54.19 (5.8%) 46.8% 57.60 88.6% 7.4x 8.8x 9.6x 9.1x 7.3x Swift Transportation Company 5,366 27.99 28.15 (0.6%) 34.3% 29.44 95.1% 7.9x 9.2x 9.8x 8.9x 7.9x Universal Truckload Services Inc. 974 25.17 28.45 (11.5%) (19.0%) 34.07 73.9% 9.9x 8.9x 8.8x 8.4x 7.3x USA Truck Inc. 411 28.67 22.52 27.3% 105.5% 28.75 99.7% 8.4x 7.2x 8.7x 7.2x 7.0x Werner Enterprises Inc. 2,211 30.39 30.38 0.0% 19.8% 31.71 95.8% 6.3x 6.4x 7.3x 6.7x 6.0x YRC Worldwide Inc. 1,540 19.57 23.27 (15.9%) 44.1% 29.21 67.0% 6.5x 12.2x 8.7x 7.0x 4.6x Median (0.3%) 29.3% 90.7% 7.8x 8.3x 8.7x 8.0x 7.0x

PAGE | 7 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JANUARY 2015

PUBLIC COMPARABLES CONT.

Rail and Rail Services American Railcar Industries, Inc. $1,262 $49.18 $48.79 0.8% 11.8% $82.82 59.4% 5.7x 8.0x 6.2x 6.2x 5.6x Canadian National Railway Company 60,359 66.20 63.95 3.5% 21.7% 72.08 91.8% 11.4x 12.8x 12.6x 12.4x 11.6x Canadian Pacific Railway Limited 34,235 177.81 177.24 0.3% 16.2% 207.48 85.7% 14.1x 15.1x 14.4x 13.7x 11.9x CSX Corp. 42,340 33.91 34.84 (2.7%) 17.4% 37.99 89.3% 8.2x 8.8x 8.9x 8.9x 8.2x FreightCar America Inc. 234 25.52 25.29 0.9% 0.9% 37.48 68.1% NM NM NM 11.5x 4.2x Genesee & Wyoming Inc. 6,063 82.36 84.39 (2.4%) (11.7%) 106.02 77.7% 12.4x 13.4x 11.0x 10.4x 9.3x The Greenbrier Companies, Inc. 1,787 50.61 45.00 12.5% 45.9% 78.32 64.6% 8.4x 10.5x 6.9x 7.1x 4.7x Kansas City Southern 14,714 113.30 109.62 3.4% (2.6%) 126.49 89.6% 15.4x 14.0x 13.6x 13.4x 11.7x Norfolk Southern Corporation 39,176 101.97 101.55 0.4% 11.3% 117.64 86.7% 8.7x 9.2x 8.7x 8.6x 7.9x Trinity Industries Inc. 7,384 25.93 26.99 (3.9%) (7.6%) 50.77 51.1% 7.6x 7.6x 5.6x 5.1x 4.9x Union Pacific Corporation 110,949 113.97 112.55 1.3% 33.8% 123.61 92.2% 9.4x 10.1x 10.8x 10.5x 9.5x Westinghouse Air Brake Technologies Corporation 8,386 83.90 84.91 (1.2%) 13.9% 92.20 91.0% 15.1x 15.0x 15.0x 14.3x 12.7x Median 0.6% 12.8% 86.2% 9.4x 10.5x 10.8x 10.4x 8.7x Marine Aegean Marine Petroleum Network Inc. $1,478 $14.54 $12.01 21.1% 33.9% $14.74 98.6% 15.0x 13.5x 15.3x 13.9x 10.8x Costamare Inc. 2,904 16.38 18.22 (10.1%) (11.0%) 24.94 65.7% 12.3x 11.9x 9.4x 8.8x 8.8x Diana Shipping Inc. 717 6.53 6.62 (1.4%) (46.4%) 13.93 46.9% NM 19.6x 16.5x 13.2x 9.4x Kirby Corporation 5,260 80.67 86.84 (7.1%) (17.8%) 124.12 65.0% 11.1x 11.8x 8.2x 8.2x 7.9x Matson, Inc. 1,649 34.91 34.74 0.5% 32.9% 36.73 95.0% 7.8x 8.7x 9.6x 7.9x 7.3x Neptune Orient Lines Limited 5,790 0.68 0.63 7.2% (19.4%) 0.80 84.6% NM NM NM 19.7x 11.1x Nordic American Tankers Limited 1,201 11.66 9.26 25.9% 18.3% 12.61 92.5% NM NM NM 14.1x 10.0x Rand Logistics, Inc. 262 3.74 3.88 (3.6%) (34.4%) 7.49 49.9% 9.6x 10.1x 8.7x 8.2x 7.2x SEACOR Holdings Inc. 1,767 68.76 70.38 (2.3%) (22.9%) 92.42 74.4% 11.1x 8.8x 7.7x 7.3x 6.3x Wilh. Wilhelmsen ASA 2,198 6.13 5.67 8.2% (33.4%) 7.90 77.7% NM NM 16.2x 5.4x 4.8x Median (0.4%) (18.6%) 76.1% 11.1x 11.8x 9.5x 8.5x 8.4x Transportation Equipment Accuride Corp. $530 $4.63 $4.57 1.3% 10.0% $5.91 78.3% 11.9x 9.4x 7.7x 6.6x 5.8x Dana Holding Corporation 4,067 21.57 20.15 7.0% 9.7% 24.82 86.9% 5.5x 6.3x 5.8x 5.5x 5.3x Gentherm Incorporated 1,353 36.80 32.64 12.7% 44.8% 52.29 70.4% 11.4x 14.8x 10.9x 10.5x 9.1x Spartan Motors Inc. 158 5.33 4.92 8.3% (20.1%) 6.87 77.6% NM 15.5x 14.1x 15.1x 8.0x Wabash National Corp. 1,073 11.90 10.54 12.9% (7.9%) 14.91 79.8% 8.5x 8.4x 7.1x 6.5x 6.0x Median 8.3% 9.7% 78.3% 10.0x 9.4x 7.7x 6.6x 6.0x

PAGE | 8 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JANUARY 2015

PUBLIC COMPARABLES CONT.

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth 2011 2012 2013 2014E 2015P 2016P '11-14E '14E-16P 2011 2012 2013 2014E 2015E 2016P '11-14E '14E-16P Transportation & Logistics Logistics Providers Agility Public Warehousing Company KSC $4,775 $5,039 $4,873 NA NA NA NA NA $199 $254 $296 NA NA NA NA NA Air Transport Services Group, Inc. 730 607 580 581 589 619 (7.3%) 3.2% 181 163 158 176 186 191 (1.0%) 4.1% Atlas Air Worldwide Holdings, Inc. 1,384 1,632 1,643 1,806 1,757 1,831 9.3% 0.7% 203 296 307 328 344 345 17.2% 2.7% CH Robinson Worldwide Inc. 10,336 11,359 12,752 13,452 14,729 15,681 9.2% 8.0% 720 751 731 804 895 969 3.8% 9.8% Deutsche Post AG 68,631 73,191 75,859 68,449 69,777 72,446 (0.1%) 2.9% 3,384 4,129 4,719 5,260 5,432 5,979 15.8% 6.6% DSV A/S 7,639 7,937 8,439 7,896 8,088 8,499 1.1% 3.7% 498 519 543 518 545 579 1.3% 5.7% Echo Global Logistics, Inc. 603 758 884 1,175 1,404 1,663 24.9% 19.0% 23 27 27 45 55 66 25.3% 21.0% Expeditors International of Washington Inc. 6,162 5,992 6,080 6,556 6,948 7,409 2.1% 6.3% 655 571 600 637 690 737 (0.9%) 7.6% FedEx Corporation 39,304 42,680 44,287 45,371 47,700 50,474 4.9% 5.5% 4,506 5,367 5,597 6,023 6,869 7,884 10.2% 14.4% Forward Air Corp. 509 558 626 783 854 928 15.5% 8.9% 97 104 107 134 154 166 11.4% 11.3% Hub Group Inc. 2,752 3,124 3,374 3,552 3,750 3,945 8.9% 5.4% 112 134 138 113 133 151 0.1% 15.6% JB Hunt Transport Services Inc. 3,678 4,058 4,527 6,176 6,848 7,540 18.9% 10.5% 658 759 830 916 1,035 1,156 11.6% 12.3% Kuehne + Nagel International AG 17,351 18,699 19,290 21,376 21,872 22,915 7.2% 3.5% 1,038 979 1,070 1,018 1,079 1,144 (0.7%) 6.0% Landstar System Inc. 2,628 2,771 2,665 3,157 3,435 3,724 6.3% 8.6% 204 223 201 250 278 302 6.9% 9.8% Panalpina World Transport Holding Ltd. 6,954 7,227 7,589 6,779 6,978 7,297 (0.8%) 3.8% 220 92 161 185 231 286 (5.6%) 24.3% Roadrunner Transportation Systems, Inc. 844 1,073 1,361 1,826 2,130 2,397 29.4% 14.6% 53 81 111 121 147 170 31.5% 18.8% Ryder System, Inc. 6,051 6,257 6,419 6,663 6,991 7,358 3.3% 5.1% 1,290 1,396 1,462 1,632 1,775 1,906 8.2% 8.1% TransForce Inc. 2,378 2,822 2,620 3,168 3,821 3,924 10.0% 11.3% 313 392 317 350 464 493 3.8% 18.6% United Parcel Service, Inc. 53,105 54,127 55,438 58,166 61,439 65,005 3.1% 5.7% 7,830 3,182 8,864 9,353 10,278 11,122 6.1% 9.0% Universal Truckload Services Inc. 991 1,037 1,033 1,187 1,251 1,303 6.2% 4.8% 84 96 105 116 136 146 11.5% 12.1% UTi Worldwide Inc. 4,550 4,914 4,608 4,450 4,285 4,397 (0.7%) (0.6%) 183 213 146 106 97 180 NM NM World Fuel Services Corp. 34,623 38,945 41,562 45,255 49,121 52,785 9.3% 8.0% 291 291 301 330 364 426 4.3% 13.5% XPO Logistics, Inc. 177 279 702 2,285 4,171 6,041 NM NM 3 (20) (28) 76 239 389 NM NM Total $276,154 $295,087 $307,211 $310,108 $327,940 $348,180 7.6% 6.6% $22,745 $19,999 $26,763 $28,490 $31,427 $34,785 8.0% 11.6% Trucking ArcBest Corporation $1,908 $2,066 $2,300 $2,598 $2,798 $3,015 10.9% 7.7% $82 $70 $104 $154 $206 $223 23.2% 20.4% Celadon Group Inc. 467 475 489 762 855 950 17.7% 11.7% 89 103 106 101 123 138 4.3% 16.7% Con-way Inc. 5,290 5,580 5,473 5,816 6,184 6,609 3.2% 6.6% 386 428 427 522 579 632 10.6% 10.0% Covenant Transportation Group, Inc. 512 527 539 704 739 790 11.2% 5.9% 63 71 65 83 100 113 9.5% 16.3% Heartland Express, Inc. 529 546 582 888 938 991 18.9% 5.6% 132 138 149 241 275 298 22.2% 11.2% Knight Transportation Inc. 697 752 792 1,090 1,270 1,411 16.0% 13.8% 169 184 192 245 296 327 13.2% 15.5% Marten Transport Ltd. 604 638 659 676 733 788 3.9% 8.0% 97 101 110 116 134 144 6.3% 11.4% Old Dominion Freight Line Inc. 1,904 2,135 2,338 2,780 3,129 3,531 13.5% 12.7% 326 396 460 577 671 780 21.0% 16.2% P.A.M. Transportation Services, Inc. 284 298 313 409 435 NA 12.9% NA 29 41 50 60 71 NA 27.8% NA Quality Distribution Inc. 628 719 805 991 1,032 1,096 16.4% 5.2% 70 74 73 80 90 98 4.2% 11.2% Saia, Inc. 1,030 1,099 1,139 1,274 1,395 1,537 7.3% 9.8% 65 107 126 144 181 208 30.2% 20.2% Swift Transportation Company 3,779 3,976 4,118 4,303 4,644 4,973 4.4% 7.5% 549 573 577 604 678 754 3.2% 11.8% Universal Truckload Services Inc. 991 1,037 1,033 1,187 1,251 1,303 6.2% 4.8% 84 96 105 116 136 146 11.5% 12.1% USA Truck Inc. 411 409 444 607 631 687 13.9% 6.3% 33 20 35 57 58 69 20.1% 10.1% Werner Enterprises Inc. 2,003 2,036 2,029 2,141 2,248 2,368 2.2% 5.2% 311 318 296 331 369 390 2.1% 8.5% YRC Worldwide Inc. 4,869 4,851 4,865 5,102 5,386 5,651 1.6% 5.2% 49 198 205 226 335 416 NM NM Total $25,905 $27,143 $27,919 $31,328 $33,667 $35,698 10.0% 7.7% $2,536 $2,917 $3,080 $3,658 $4,301 $4,737 14.0% 13.7%

PAGE | 9 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JANUARY 2015

PUBLIC COMPARABLES CONT.

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth 2011 2012 2013 2014E 2015P 2016P '11-14E '14E-16P 2011 2012 2013 2014E 2015E 2016P '11-14E '14E-16P Transportation & Logistics Rail and Rail Services American Railcar Industries, Inc. $519 $712 $751 $749 $842 $849 13.0% 6.5% $55 $145 $179 $203 $227 $239 NM 8.7% Canadian National Railway Company 8,881 9,952 9,954 10,364 10,788 11,468 5.3% 5.2% 4,112 4,624 4,568 4,819 5,120 5,613 5.4% 7.9% Canadian Pacific Railway Limited 4,970 5,568 5,631 5,695 6,075 6,656 4.6% 8.1% 1,378 1,778 2,190 2,470 2,864 3,232 21.5% 14.4% CSX Corp. 11,795 11,763 12,026 12,656 12,787 13,525 2.4% 3.4% 4,446 4,523 4,577 4,779 5,148 5,485 2.4% 7.1% FreightCar America Inc. 487 677 290 581 832 893 6.0% NM 12 41 (8) 21 58 67 20.9% NM Genesee & Wyoming Inc. 829 875 1,569 1,639 1,749 1,856 25.5% 6.4% 252 277 533 580 651 706 32.1% 10.3% The Greenbrier Companies, Inc. 1,174 1,736 1,685 2,209 2,605 2,815 23.5% 12.9% 97 152 145 252 382 448 37.3% 33.2% Kansas City Southern 2,098 2,239 2,369 2,594 2,811 3,079 7.3% 9.0% 772 872 962 1,108 1,249 1,406 12.8% 12.7% Norfolk Southern Corporation 11,172 11,040 11,245 11,671 12,127 12,620 1.5% 4.0% 4,073 4,036 4,169 4,544 4,924 5,230 3.7% 7.3% Trinity Industries Inc. 2,938 3,812 4,365 6,123 6,640 6,434 27.7% 2.5% 575 751 963 1,469 1,517 1,463 36.8% (0.2%) Union Pacific Corporation 18,508 19,686 20,684 23,955 25,381 26,998 9.0% 6.2% 7,341 8,505 9,223 10,563 11,688 12,784 12.9% 10.0% Westinghouse Air Brake Technologies Corporation 1,968 2,391 2,566 3,031 3,351 3,586 15.5% 8.8% 334 436 489 586 661 740 20.7% 12.3% Total $65,339 $70,451 $73,136 $81,265 $85,988 $90,779 11.8% 6.6% $23,446 $26,139 $27,989 $31,395 $34,489 $37,412 18.8% 11.2% Marine Aegean Marine Petroleum Network Inc. $6,965 $7,259 $6,335 $6,977 $7,121 $7,753 0.1% 5.4% $75 $85 $75 $111 $141 $155 13.8% 18.1% Costamare Inc. 382 386 414 482 501 533 8.0% 5.2% 236 238 258 329 329 362 11.7% 4.8% Diana Shipping Inc. 256 221 164 176 213 257 (11.7%) 20.9% 166 121 53 54 75 79 (31.2%) 21.3% Kirby Corporation 1,850 2,113 2,242 2,495 2,452 2,629 10.5% 2.6% 445 509 582 640 665 716 12.9% 5.8% Matson, Inc. 1,463 1,560 1,637 1,730 1,879 2,062 5.8% 9.2% 142 175 172 208 226 250 13.7% 9.6% Neptune Orient Lines Limited 9,211 9,512 8,831 8,713 9,007 9,382 (1.8%) 3.8% (90) 96 131 299 566 620 NM NM Nordic American Tankers Limited 95 131 244 158 208 216 18.6% 16.8% 10 7 (22) 84 103 125 NM 22.0% Rand Logistics, Inc. 98 109 119 155 153 161 16.6% 2.0% 16 28 25 32 36 39 26.7% 11.4% SEACOR Holdings Inc. 1,032 1,308 1,247 1,322 1,393 NA 8.6% NA 155 164 197 240 288 NA 15.6% NA Wilh. Wilhelmsen ASA 309 395 325 2,611 2,610 2,733 NM 2.3% 147 227 154 410 455 499 NM 10.4% Total $21,661 $22,993 $21,559 $24,819 $25,539 $25,724 6.1% 7.6% $1,301 $1,648 $1,626 $2,407 $2,884 $2,846 9.0% 12.9% Transportation Equipment Accuride Corp. $805 $795 $643 $700 $739 $744 (4.5%) 3.1% $74 $65 $43 $80 $90 $93 2.8% 7.7% Dana Holding Corporation 7,544 7,224 6,769 6,600 6,699 7,207 (4.4%) 4.5% 720 753 698 744 760 857 1.1% 7.3% Gentherm Incorporated 370 555 662 814 915 1,045 30.1% 13.4% 46 70 83 128 150 176 40.4% 17.3% Spartan Motors Inc. 426 471 470 510 538 569 6.2% 5.7% 14 15 6 10 20 32 (9.5%) NM Wabash National Corp. 1,187 1,462 1,636 1,856 1,954 1,962 16.1% 2.8% 33 108 142 162 179 191 NM 8.7% Total $10,331 $10,506 $10,179 $10,480 $10,845 $11,528 8.7% 5.9% $888 $1,011 $972 $1,125 $1,199 $1,350 8.7% 10.3%

PAGE | 10 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JANUARY 2015

TRANSPORTATION & LOGISTICS

SOURCES

1. Capital IQ.

2. MergerMarket.

DISCLOSURES

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