A Multimodal Perspective

AASHTO Councils on Rail and Water Transportation

Customer First – Safety Always! Customer First Foundation Principles Customer First - Safety Always!

Value Our Customers • Earn their business every day by providing Safe, Accurate, and Timely Service • Create solutions that deliver value for our Customers and Watco over the long term

Value Our People • SAFE Service, ALWAYS • Be Honest and Fair

Safely Improve Every Day • Always do the right thing and always try to find a better way • Build a tremendous future by making decisions that protect our Customer, Team, Community, and Environment

Customer First – Safety Always! 2 Watco Timeline

Customer First – Safety Always! 3 Watco System Map

Customer First – Safety Always! 4 Watco’s Unique Service Offerings

Customer First – Safety Always! 5 Watco Overview Commodity Mix

2017 YTD Transportation Freight Revenue 2017 YTD Terminal and Revenue

• “Heat and Eat” commodities – Commodities less affected by consumer discretionary spend account for 77% of Freight Revenues and 53% of WTPS Revenues

Customer ♦ Commodity ♦ Geography ♦ Service 6 Transloading Commodities Handling over 200 products: Sample of food grade to hazardous materials

Liquids Liquids Liquids (Flammable) (Gas) (Acid)

Ethanol Propane Hydrogen Peroxide Liquids Jet Fuel Butane Hydrochloric (Non-Haz) Gasolines Argon Sulfuric 2 Diesel & Bio/DEF CO Muratic Veg Oil Additives Acetylene Phosphoric Used Oil Mineral Spirits Pit Sludge Isopro Alcohol Bulk Terathane Breakbulk Asphalt Glycols Plastics Nitrate Solutions Steel Coil / Plate Soda Ash / Caustic Lignin Liquor Rebar / Wire Rod Food Grade Limestone Wax OD Project Cargo Fly Ash Yellow Grease Bar/Structural Flour Frac Sand Ferrous Chloride Lumber Syrups/Fructose Cement / Aggregates Ferric Chloride Palletized GC Corn Starch Grain/Beans Leachate / Waste Logs Other Grains Dry Fertilizers Fertilizers Crane Mats Pharmaceuticals Scrap

Customer First – Safety Always! 7 Watco Terminal & Services Commodity Images and Terminal Breakout

Liquids Oversize / Heavy Lift WTPS Terminal Types

Other Deepwater Switching

Crude/Energy

Hazardous Steel

Container/ In-Plant Barge

Lumber Bulk - Rail Bulk - Barge

Transload

Customer First – Safety Always! 8 Watco & The Ohio River

Customer First – Safety Always! 9 Customer First – Safety Always! 10 Columbus, MS SW Brooklyn MTS

Terminal Specifics: Terminal Specifics: • 1 barge dock • 72 Container Storage spaces on pier • Commodities: Carbon scrap, pig iron, HBI, DRI, • 1 loading berth, 1 barge storage berth and ferro alloys • Supports Waste Management and NYC Sanitation Department with the export of Transportation Modes: Brooklyn, NY’s solid waste by providing the • Delivering Rail Carrier: BNSF, KCS city with empty containers and loading full • Tenn-Tom Waterway (mile marker 331) containers onto barge for export to Elizabeth. Major Features: • Harbor Boat Transportation Modes: • E-Crane Various Buckets • Marine transportation via tug/barge • Maintenance Shop Terminal Services: • Front End Loader Major Features: • Barge offloading Terminal Services: • Scrap handling • 2 Kuenz rail mounted gantry cranes • Barge/shuttle car/pier transfers • 1 loading berth, 1 barge storage berth • 4 shuttle cars

Customer First – Safety Always! 13 Customer First – Safety Always! 11

Elizabeth MTS - NJ Brooklyn Junction, WV Terminal Specifics: • 196 Container Storage spaces on pier Terminal Specifics: • 78 Container Storage spaces on secondary pad for empty containers. • 46 car spots • 2 barge berths • Commodity – Quick Lime • Supports Waste Management and NYC Sanitation • 1 barge dock Department with the export of Brooklyn, NY’s solid waste by transferring loaded containers to truck • Barge fleeting area for 15 barges and loading barge with empty containers. Transportation Modes: Transportation Modes: • Delivering Rail Carrier: CSX • Marine transportation via tug/barge • Ohio River (Mile marker 129.5) • Outbound containers via truck transported to rail yard. Major Features: Major Features: • Fuller Kovako Vacuum Unloader • 2 Kuenz rail mounted gantry cranes • RBT conveyor Terminal Services: • Taylor Reach Stacker, CAT 938 • Tug Boat (Betty Lou) • Barge to Rail • 1 loading berth, 1 barge storage berth • Rail to Truck

Terminal Services: • Barge/truck/pier transfers Customer First – Safety Always! 11

Customer First – Safety Always! 14 Customer First – Safety Always! 12 New Johnsonville, TN Hamilton MTS - Brooklyn

Terminal Specifics: Terminal Specifics: • 17 railcar spots Salt dock Ore dock • 72 Container Storage spaces on pier • In plant service on Customers • 1 loading berth, 3 barge storage berths property • Commodities: Titanium ores, • Supports Waste Management and NYC Pet-Coke, Rock Salt, Liquid Sanitation Department with the export of Caustic Soda Brooklyn, NY’s solid waste by providing the city with empty containers and loading full Transportation Modes: containers onto barge for export to Elizabeth. • Inbound ore railcars • Inbound barges via TN. River Terminal Services: Transportation Modes: (mile 100) • Unload barge, truck, & rail • Marine transportation via tug/barge • Inbound trucks to storage buildings • HWY 70 Humphreys Co. / • Load out liquid caustic nearest interstate I-40 Ore Storage soda Major Features: • 2 Kuenz rail mounted gantry cranes Major Features: • 1 loading berth, 3 barge storage berths • Fuchs MHL 380 • Manitowoc 3950 D • 4 shuttle cars • Sennebogen 870 • 2-Volvo L-150 front-end loaders Terminal Services: • Conveyor belts • Barge/shuttle car/pier transfers

Customer First – Safety Always! Customer First – Safety Always! 15

Blytheville, AR Louisville, KY

Terminal Specifics: Terminal Specifics: • 731 acres • 4 acres • 50 car spots • 1 barge dock • 1 barge dock • Commodities: Scrap metal • 40,000 sq ft storage capacity • Tank storage 410,000 BBLS Transportation Modes: • Commodities: Ammonium, polyphosphate, bulk • Ohio River (mile marker 602) fertilizer, coil steel, injection carbon and grains • Connecting highways I-65, I-64 & I-71

Transportation Modes: Major Features: • Delivering Rail Carrier: BNSF • Scrap chute • Mississippi River (mile marker 810.6) • Manitowoc crane • State Highway 18, Interstate 55 Terminal Services: • 9310 American crane • Rail/truck transload • Skid steer Major Features: • Warehouse to/from barge • 13K forklift Terminal Services: • Fertilizer System • Direct truck to barge

Customer First – Safety Always! 12 Customer First – Safety Always! 18 Customer First – Safety Always! 16 Cincinnati, OH - Steel Warehouse Cahokia Terminal - Sauget, IL

Terminal Specifics: Terminal Specifics: • 40,000 sq ft • 84 acres • Commodities: Steel and break bulk products • 350 car spots • Inside storage 20,000 sq ft Transportation Modes: • Outside storage 80 acres • Ohio River (mile marker 474.5) • 120,000 BBLS liquid storage • 4 barge docks Major Features: • Commodities: Chemicals, coal, copper, steel, • Direct transfer operation cement, and iron • 200 ton mobile crane • 32,000 ft track capacity • USACE Dock Ready Site (No current dock) Transportation Modes: • Delivering Rail Carrier: KCS, UP Terminal Services: • Mississippi River (mile marker 178.2) • Truck transload Terminal Services: • Warehouse Major Features: • Transloading, trucking, barge, rail • Coal/bulk handling system • Certified truck scale • Cranes and forklifts

Customer First – Safety Always! 21 Customer First – Safety Always! 19

Cincinnati, OH – River T Chicago, IL – Chicago Ferro

Terminal Specifics: Terminal Specifics: • 6 railcar spots • 3.5 acres outside storage • 11 Tanks – 238,704 BBL capacity • 20 railcar spots • 2 Barge docks – 1 liquid – 1 bulk • 243,000 sq ft inside storage • Terminal is 4 feet above flood stage (Cincinnati) • 1 barge dock (Ferro Site) • Commodities: Bulk salt, petroleum, and chemicals • 2 Lake Vessel Berths/docks (A-West Site) • Commodities: Ferro-alloys Transportation Modes: • Rail Carrier: CSX Transportation Modes: • Rail Ohio River (mile marker 479.4) • Delivering Rail Carrier: IHB & NS • Access to Interstates 71,74 and 75 • Seaway via Lake Michigan & Illinois River (mile marker 328.3) Terminal Services: Major Features: • Interstate Highways 55, 57, 65, 80, 90, 94 and Terminal Services: • Lake Vessel/Barge 294 LIQUIDS: BULK: • Barge, truck, rail • Rail/Truck/Container • 8 Truck racks (in & outbound) • Telestacker • Warehouse to/from barge • 3 Rail racks (in & outbound) • Conveyor systems Major Features: • 1 Barge dock (in & outbound) • Direct transfer (outbound) • Ferroalloy crush, screen, and bag • Tank heating & mixing • 3 Front end loaders • 1 Truck scale • 3 Truck scales • Overhead Cranes • State of the Art Dust Collection System Customer First – Safety Always! 13 Customer First – Safety Always! 22 Customer First – Safety Always! 20 Dravosburg, PA Cora Terminal - Rockwood, IL

Terminal Specifics: Terminal Specifics: • 4 acres • 480 acres • 243,000 BBL liquid storage • 600 railcar spots • 2 barge docks • 1,250,000 tons open storage • 35 tanks • Unit loading capable • 4 railcar spots • Commodities: Coal, grain, and petcoke • Commodities: Chemicals and petroleum Transportation Modes: Transportation Modes: • Delivering Rail Carrier: UP • Delivering Rail Carrier: NS • Mississippi River (mile marker 99.7) • Monongahela River (mile marker 16) Major Features: Major Features: • Rotary Dump • Cranes with 200 ton capacity • Two loop tracks Terminal Services: Terminal Services: • Flat bed delivery • Rail, barge, truck, liquid tank • Four unit train capacity • Barge, Truck, Rail • Certified Truck Scale storage • JBL sampler systems • Certified scales and belt management

Customer First – Safety Always! 25 Customer First – Safety Always! 23

Ghent, KY Decatur, AL – Ferro & River Port

Terminal Specifics: Terminal Specifics: • Single Barge Dock • 5 railcar spots • Commodities Handled: Scrap, ferro alloys, steel • 12.56 acres slabs, break bulk, and various bulk products • 1 acre outside storage • 133,500 sq ft inside storage Transportation Modes: • 1 barge dock • Ohio River (mile 33.5) • Commodities: Steel coils, steel plates, pig iron, ferro alloys, coke, cottonseed, grain, • Servicing Railroad: CSX other bulk materials • Major Roadways: Interstate 71 Transportation Modes: Major Features: • Delivering Rail Carrier: NS • Crane lift capacity up to 150 tons • Tennessee River (mile marker 299) • Bulk product handling via excavator(s) Terminal Services: • Various front end loaders and fork trucks • Transfers from barge to truck / truck to Major Features: • Access to truck scale barge • Cranes with 20 ton capacity Terminal Services: • Short term outdoor storage • 65,000lbs forklift • Bagging Operations • Rail, barge, truck • Crushing/Screening operations • Flat bed delivery • Certified truck scale Customer First – Safety Always! 14 Customer First – Safety Always! 26 Customer First – Safety Always! 24 Houston, TX - Ferro Grand Rivers, KY

Terminal Specifics: Terminal Specifics: • 10,000 sq ft warehouse space • Direct rail to barge loading • 98,000 sq ft open storage • 105 acres outside storage • One barge dock • 505 railcar spots • Commodities: Ferro alloys, pig iron, non-ferrous metals, steel, aggregates, fertilizer • 1,000,000 tons open storage on asphalt • Blended unit train capable Transportation Modes: • Railcar repair capabilities • Houston Channel • Commodities: Coal, petcoke, • Servicing Railroad: UP fertilizer, grains, iron/ore products, limestone, tire • Major Roadways: State Hwy 225, Interstates 10, chips, and wood products 610, and 45, and U.S. Hwy 59 Transportation Modes: Major Features: • Rail Service: BNSF, UP, CSX, CN, NS via P&L RR • Excavator for bulk material handling Terminal Services: Tennessee River (mile post 22.7) • Various front end loaders • To and from barge, truck, rail, and/or • Truck Scales storage Major Features: • Crushing and screening equipment for ferro Terminal Services: • 4-way blending ability alloys • Transloading, trucking, barge, rail • Packaging of ferro alloys • JBL Sampler Systems • Certified scales & belt magnet

Customer First – Safety Always! 29 Customer First – Safety Always! 27

Industry, PA Guntersville, AL

Terminal Specifics: Terminal Specifics: • 15 railcar spots • 15 railcar spots • 435,000 sq ft covered storage • 5 acres outside storage • 200,000 sq ft improved outdoor storage • 12,000 sq ft on-site space • Two barge docks • Commodities: Ferro alloys, pig iron, gypsum, • 2 barge docks non-ferrous metals, break-bulk • 2 liquid docks • Commodities: Caustic soda, coke, wire rod, tin Transportation Modes: plate, steel coils, plate, rebar, pig iron, alloys & • Ohio River (mile 33.5) non-hazmat • Servicing Railroad: Norfolk Southern Terminal Services: • Major Roadways: PA 60 and Interstates 70, 76, • Transfers from barge, rail, and truck Transportation Modes: 79, 80 and 276 either direct or through storage • Delivering Rail Carrier CSX • Crushing and screening of ferro alloys • Tennessee River Major Features: • Packaging ferro alloys • Crane lift capacity up to 100 tons • Bonded warehousing Major Features: • Bulk product handling via excavator(s) Terminal Services: • Various front end loaders and fork trucks • Two Caustic Soda Tanks • Transloading, trucking, barge, rail • Truck scales • One Direct Truck Dump • 100 Ton Crane Customer First – Safety Always! Customer First – Safety Always! 30 Customer First – Safety Always! 15 28 Memphis, TN (Port) Jeffersonville, IN

Terminal Specifics: Terminal Specifics: • 20 railcar spots • 10 railcar spots • 2 barge docks • 2.25 acres • Commodities: Steel, fertilizer, grain, alloys, • 132,000 sq ft warehouse space general cargo, caustic soda, scrap, DDG’s, • 2 barge docks vegetable oil and pig iron • Commodities: Steel, products, aluminum products, and steel scrap Transportation Modes: • Delivering Rail Carrier: CN, UP, BNSF Transportation Modes: • Mississippi River (mile marker 725) • Delivering Rail Carrier: CSX and NS via Louisville & Indiana RR Major Features: • Ohio River (mile marker 597.2) • Transfer station to receive bulk from inbound rail to storage Major Features: Terminal Services: Terminal Services: • Transloading, trucking, barge, rail • Transloading, trucking, barge, rail • Crane with a 150 ton lift capacity • Front end loaders • Fork lifts

Customer First – Safety Always! 33 Customer First – Safety Always! 31

Omaha, NE Louisville, KY (River Road)

Terminal Specifics: Terminal Specifics: • 22 acres • 26,000 sq ft storage capacity • 40,000 Sq. Ft. Break Bulk Warehouse • 4 railcar spots • 30 railcar spots • 2 barge docks • 6 Storage Domes for Bulk Products • Commodities: Coal, salt, fertilizer, and other • Commodities: Steel, pipe, rebar, coils, fertilizer, bulk products feed products, bagged salt, ethanol, lumber, palletized products Transportation Modes: Transportation Modes: • Delivering Rail Carrier: CSX • Delivering Rail Carrier: Union Pacific • Ohio River (mile marker 601) – Open to: BNSF, CN • River (mile marker 725) Major Features: – Potential Barge Access (Dock Construction Required) Terminal Services: • Transfer station to receive bulk from inbound rail • Transloading, trucking, barge, rail Major Features: to storage Terminal Services: • RBT Conveyors • Dock upgrades to be complete in 2018 • Transloading, barge, trucking, rail • End Loaders • Multiple Forklifts • Crane • Railcar Dump Pit / Conveyor Load-outs Customer First – Safety Always! Customer First – Safety Always! 34 Customer First – Safety Always! 16 32 Houston – Terminals Owensboro East - Hawesville, KY

Terminal Specifics: Terminal Specifics: • 29 acres • 58 acres • 155,000 sq ft covered storage • 208,000 sq ft warehouse space • 7 acres outside storage • 16 railcar spots • Commodities: Aluminum products, alloys, • Commodities: Break-bulk steel, ferro alloys and other bulk commodities

Transportation Modes: Transportation Modes: • Houston Ship Channel-Buffalo Bayou; 270 LF • Delivering Rail Carrier: CSX Barge Dock • Ohio River (mile marker 727) • Servicing Railroad: UP railroad at 2 locations; 13 total railcar spots Major Features: • Major Roadways: State Hwy 225, Interstates • Foreign Trade Zone (FTZ) location Terminal Services: 10, 610, and 45, and U.S. Hwy 59 • Certified Truck Scale • Transloading, barge, trucking, rail Terminal Services: • Ohio River access Major Features: • To and from vessel, barge, truck, rail, • CXT rail service • Multiple overhead cranes in inside storage and/or storage • 208,000 sq ft warehouse space • 2 50-ton cranes, 12 forklifts • 150 ton and 250 ton crawler cranes • Shuttlewagon railcar mover • Multiple Forklifts in varying sizes and capacities • Front end loader

Customer First – Safety Always! 37 Customer First – Safety Always! 35

Port of Pine Bluff, AR Vicksburg, MS - Port

Terminal Specifics: Terminal Specifics: • 25 acre facility • 20 railcar spots • 25 Railcar spots • 80,000 sq ft general warehouse storage • 11 acres • 20,000 sq ft fertilizer storage • 120,000 sq ft inside storage; additional • 248,000 sq ft offsite warehouse storage may be available depending upon • 300 ton grain storage tank need • One barge dock • 2 Barge Docks • Commodities: Grain, fertilizer, steel, break-bulk • Steel, break-bulk, and various bulk products

Transportation Modes: • Arkansas River (mile marker 70) Transportation Modes: • Servicing Railroad: BN and UP • Mississippi River (LMR 437) • Major Roadways: Highway 79, Interstate 530, and • Servicing Railroad: Vicksburg Southern (KCS U.S Highways 65 and 63 connection) • Major Roadways: Interstate 20 and 55 Major Features: Terminal Services: • 20 ton overhead crane • Truck, rail, barge • (2) 80 ton crawler crane Major Features: Terminal Services: • Various fork lifts and front end loaders • 15 ton overhead crane • To and from barge, truck, rail, and/or • Pneumatic grain probe • 125 ton crawler crane storage • Four barge winch system • Various fork lifts and front end loaders • Local truck delivery • Truck scale • Precision barge stowage and handling • Track mobile Customer First – Safety Always! 17 Customer First – Safety Always! 38 Customer First – Safety Always! 36 Watco-Owned & Operated Ports

Customer First – Safety Always! 18 Tuloma/Tulsa Terminal Catoosa, OK

Terminal Specifics: • 30,000 sq ft warehouse • 20 railcar spots • Commodities: Pipe, steel coils, plates

Transportation Modes: • Rail Service: BNSF, SKOL • Port of Catoosa

Major Features: • Coal/Bulk Handling System Terminal Services: • 120,000 liquid storage • Barge, truck, rail, and/or storage

Customer First – Safety Always! 19 Port Birmingham, AL

Terminal Specifics: • 184 acres • 140 railcar spots, unit train capable • 5 barge docks • Commodities: Coal, coke, break-bulk, ores and metals

Transportation Modes: • Black Warrior River • Rail Service: Birmingham Terminal Railway (NS, CSX, and BNSF) • Major Features: • 25 ton and 23 ton gantry crane with bulk and break bulk capabilities Terminal Services: • 100 ton derrick crane • To and from barge, truck, rail, • Conveyor system for rail/truck in of bulk products and/or storage either direct to barge or to storage • Unit train capacity loop track system

Customer First – Safety Always! 20 Rail and Barge Benefit – Economies of Scale

1 Railcar = 4 Truckloads 60 Truckloads = 15 Railcars = 1 Barge

Truck Rail Barge 100k tons export “product” $800 per truck $2,500 per railcar $15/PNT from Port Birmingham > Port of Mobile Assets Required: 3850 trucks 1000 Railcars 67 Barges

Total Costs: $3,080,000* $2,500,000* $1,500,000*

* Estimated cost Barge = 50% savings vs Truck Barge = 40% savings vs Rail.

Customer First – Safety Always! 21 Greens Port Industrial Terminal

Greens Port

Customer First – Safety Always! 22 Customer First – Safety Always! 23 Customer First – Safety Always! 24 Thank you and Questions

Laura McNichol SVP, Government & Industry Relations [email protected] 703-472-5642

Customer First – Safety Always! 25