TRENDS in 3PL / CUSTOMER RELATIONSHIPS Trucking in Mexico

TRENDS IN 3PLTrucking / CUSTOMER in Mexico: RELATIONSHIPSNavigating the Opportunity

NovemberJune 2017 2016

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Trucking in Mexico totaled $60.0 billion in 2016. Proximity to the United States, low wages, increases in manufacturing competencies, and retail investments throughout Mexico are keeping trucking in Mexico afloat. While trucking in Mexico is bobbing relative to the United States due to currency fluctuations, the complexities of intra-Mexico and cross-border trucking with the United States requires expertise.

Retail companies such as Walmex (Wal-Mart de Mexico SAB) are expanding throughout Mexico. Walmex is investing $863.0 million in opening and remodeling stores and bolstering logistics and online commerce. A total of $112.19 million is earmarked specifically for logistics. In addition to the amount Walmex plans to spend on store expansions, it is investing $1.3 billion in logistics over the next three years.1 Companies, such as Wal-Mart, are expanding into Mexico for shorter leadtimes. Ocean transit cannot react as quickly to consumer demands as truckload transit.

The expansion of retail companies throughout Mexico bodes well for third-party logistics (3PL) providers. According to the Armstrong and Associates report “Trends in 3PL/Customer Relationships – 2017”, 90% of Domestic Fortune 500 companies rely on 3PL providers for outsourced logistics and supply chain services. Mexico-based 3PLs have a high proportion of customers in Retailing and Healthcare. These industry verticals tend to use fewer 3PL services per relationship but they are often more strategic. Major customers include Johnson & Johnson, FEMSA, Nestle, Proctor & Gamble, Stanley Black & Decker, PepsiCo, Bio-Rad Laboratories, and Kraft Heinz.

Figure 1. Mexico: 3PL Distribution of Customer Relationships by Industry Vertical

The Mexican trucking market is divided into intra-Mexico and cross-border import/export trucking with the United States. Domestic trucking’s core is the Mexico City area, connecting to major cities like Monterrey and Guadalajara. Cross-border traffic is dominated by export/import activity involving the United States. Eighty-one percent of the Mexican exports are to the United States. Mexico is the second- largest market for U.S. exports and tied with Canada for second-largest for imports into the United States. Mexico accounts for 13.2% of total U.S. imports, and more than 4 million containers and trailers cross the border each year.2 The average truckload freight value is about $52,000.

1 Harrup, A. (2017, March 15). Wal-Mart de Mexico to Invest 17 Billion Pesos in 2017. Retrieved March 28, 2017, from http://www.morning- star.com/news/dow-jones/retail/TDJNDN_2017031411317/walmart-de-mexico-to-invest-17-billion-pesos-in-2017.html 2 https://www.cia.gov

The busiest cross-border port is Laredo, Texas which averages 12,200 trailers and containers a day. The other primary ports are Otay Mesa, California; El Paso, Texas; Hidalgo, Texas; and Nogales, Arizona.3

Table 1. Top 10 U.S./Mexico Border Crossings Ranked by Loaded Truck Containers – 2016

Source: U.S. Department of Transportation, Bureau of Transportation Statistics

According to the U.S. Department of Transportation Bureau of Transportation Statistics, the primary commodities shipped to and from Mexico are “Electrical Machinery; Equipment and Parts,” “Vehicles Other than Railway” and “Computer-Related Machinery and Parts”. For vehicles, the parts move south and finished vehicles move north. There are about 30 automotive assembly plants operating in Mexico.

In general, cross-border traffic flows are about sixty percent northbound and forty percent southbound. Trailer capacity for northbound movements can be very tight during the summer produce season.

Most cross-border movements involve a U.S. carrier and a Mexican carrier. Each works with a customs broker on its side of the border.

There are two governmental agencies involved in any cross-border shipment. U.S. Customs and Border Protection (CBP) is part of the U.S. Department of Homeland Security. The corresponding Mexican agency is the Ministry of Commerce and Industrial Development which is in the Department of Customs. All shipments are handled by the Mexican authorities through the use of pedimentos which are import/ export forms. Importing and exporting are covered by each country’s individual laws and NAFTA (North American Free Trade Agreement).

Mexico maintains a national registry of importers and exporters. About 18,000 companies with U.S. investment are involved in Mexico. Shipments into Mexico are subject to value-added taxes.

Not surprisingly, there is a host of customs brokers waiting to help. There are 225 brokers in Laredo alone. The shipper needs one broker of record for CBP and one for Mexican customs.

Mexican carrier tractors, without U.S. Federal Motor Carrier Safety Administration (FMCSA) authority, are restricted to operating within 25 miles (40 km) of the border. In effect, this reduces most operations to shuttling. To keep shipments to a “single line” move, some U.S. carriers have acquired Mexican subsidiaries. For examples, Celadon Group has Servicio de Transportacion Jaguar,

3 U.S. Department of Transportation, Bureau of Transportation Statistics

and Swift Transportation acquired Trans-Mex. Currently, a U.S. company cannot purchase and own a Mexican carrier. Other trucking companies set up control relationships with dedicated Mexican trucking companies and profit handsomely from it. For example, Ryder Supply Chain Solutions has two dedicated companies, Servicio de Transporte Internacional (STIL) to handle intra-Mexico movements and Akna Transportes (Akna) for cross-border shuttling. Ryder normally completes cross-border (yard to yard) movements of trailers in less than two hours in Laredo. A key to Ryder’s success is the use of C-TPAT (Customs-Trade Partnership Against Terrorism) and FAST (Free and Secure Trade). C-TPAT is a certification program for shippers, carriers and brokers that allows them to establish recognized, good standing as law-abiding importers. FAST provides qualified drivers with cards that identify them and allow for much quicker crossing approval. At Laredo, there are four northbound and four southbound FAST lanes to expedite the flow for C-TPAT partners. Mexican companies and drivers can participate in C-TPAT and FAST. Major carriers like Werner Enterprises, Celadon/Jaguar and Swift/Trans-Mex have programs for effective use of C-TPAT, FAST and other standardized practices to minimize border delays.

Intermodal container trains have special customs clearance processes that allow them to clear 250 containers in 30 minutes.4

There are over 135,000 trucking companies in Mexico including approximately 111,000 (82%) owner- operator companies with one to five trucks. There are 25 carriers with 1,000 or more trucks.

Figure 2. Mexican Trucking Carrier Size Breakdown

Source: Secretaria de Comunicaciones y Transportes (SCT)

With limited exceptions, Mexican carriers have not been allowed to operate in the U.S. Similarly, with a few exceptions, U.S. truckers have not been allowed to work directly in Mexico.

4 Mark Szakonyi, The Journal of Commerce, Page 10, September 3, 2012

Two major U.S. exceptions are Celadon/Jaguar and Swift/Trans-Mex. Both of these U.S. companies acquired Mexican companies during a window in 2004 before Mexico changed its licensing requirements. That licensing requirement forbids foreign ownership of Mexican truckers. Trans-Mex operates 769 trucks in Mexico. Jaguar has 400.

Many Mexican carriers concentrate on intra-country operations. Autotransportes de Carga Tres Guerras, the largest trucker, operates 450 trucks and 1000 tractors. Many of its operations involve shipper owned trailers and containers. Tres Guerras provides consolidation services throughout Mexico.

Super Transporte Internacional (STI) emphasizes cross-border operations. Typically, it will pick up a load and deliver it to a terminal in Laredo where Mexican customs is cleared. The load will be moved cross- border to a U.S. carrier terminal. Once cleared by U.S. Customs, it is transported by the U.S. carrier to its destination.

Figure 3. STI Strategic Alliances with Leading Companies

Source: http://www.STI.com.mx

Since 2014, a small number of Mexican carriers have obtained permanent U.S. operating authorities. The authorities are for general commodities but require that any loads picked up in the U.S. must be destined to a foreign country. That is, the Mexican carrier cannot do cabotage in the U.S. (This restriction is a marked contrast to Europe, where carriers are allowed to handle up to three intra-country loads after delivering an inter-country load.) Thirteen carriers have acquired all of the Federal Motor Carrier Safety Administration (FMCSA) driver and equipment requirements.

Table 2. FMCSA Authorized Mexican Carriers

Source: https://www.fmcsa.dot.gov/international-programs/us-mexico-cross-border-trucking-pilot-program-data

In December 2015, international obligations under the North American Free Trade Agreement chapter on cross-border trade services were fulfilled, and the leasing restriction from the Motor Carrier Safety Improvement Act of 1999 was lifted. Now Mexican carriers are permitted to lease equipment to U.S. carriers regardless of the destination of the cargo as long as the authorized U.S. carrier assumes “complete responsibility for the operation of the equipment for the duration of the lease.”5

The Mexican carriers we have dealt with like FEMSA Logistica, STIL, and STI, all meet the FMCSA requirements. To the extent there are issues - they are with very small companies.

A good example of Laredo operations is Ryder Supply Chain Solutions. Ryder manages over 150,000 U.S./Mexico truck border crossings a year and owns 730 dedicated transportation assets (tractors, trailers, straight trucks, etc.). Twenty minutes west of the U.S./Mexico border, Ryder operates a 16.8 acre cross-border interchange operation in Nuevo Laredo. The operation started in 2009 and has grown to a staff of 220 employees, 13 acres of yard space with a parking capacity of 384 trailers and 60 trucks. The secondary, remote facility has a capacity of 240 trailers. In Laredo, Ryder has a 103,000 square foot cross-dock/warehouse and office and 140 trailer spaces. The main Nuevo Laredo yard houses the control tower, driver quarters and restaurant, a maintenance shop and fuel station. The second Nuevo Laredo yard is primarily an overflow trailer parking yard, but it is also very secure. Ryder’s infrastructure on both sides of the border allows it to accommodate (in a secure environment) all volume peaks arising from holiday differences between the two countries, end of month and end of quarter volumes, security lockdowns in Nuevo Laredo, and other factors.

In Nuevo Laredo, Ryder has 30 transportation managers handling dispatch, end-to-end tracking and event management. Using Ryder’s LMS software and online software, it optimizes customer networks with planned and unplanned routes, handles event exception tracking, consolidates shipments and controls cross-border activities. Nuevo Laredo dedicated operations consist of 185 routes, over 130,000 miles and 1,300 border crossings per week. The dedicated fleet consists of 80 tractors, 130 drivers, and 120 trailers. Half are used exclusively for border crossings.

5 Mexican Carriers Now Permitted to Lease Equipment to US Carriers, FMCSA Says. (2016, November 21). Retrieved April 13, 2017, from http://www.ttnews.com/articles/basetemplate.aspx?storyid=43993

Given the amount of traffic moving to and from Ryder’s Nuevo Laredo facility, a high level of security needs to be maintained. The facility and yard are wall-fenced, have a plethora of cameras and four K-9 units working with security personnel 24/7 at the guarded front entrance.

Ryder uses a combination of global positioning systems (GPS) and driver reporting to monitor truck and trailer locations and activities constantly. Current status for each run is available at RydeSmart, an in- house mobile application.

In addition to its tight security control of all tractor-trailers, Ryder employees have an in-cab technology called GreenRoad. GreenRoad supplies drivers with color-coded alerts involving acceleration, braking, speed, and maneuvering. Cabs are equipped with a camera, microphone, and panic button. Other sensors cover the trailer door which has a keypad, unhooking which was an armored security lock, fuel cut-out, and an anti-vandal siren.

To facilitate regulatory visibility and speed cross-border operations, Ryder participates in C-TPAT and Canada’s Partners in Protection (PIP). Because of the restrictions, Ryder is not a licensed trucking company in Mexico and uses C-TPAT certified carriers extensively. C-TPAT certification allows for the use of FAST process lanes to clear customs.

At Laredo, there are 16 processing lanes open 16 hours a day on weekdays, eight hours on Saturdays and four hours on Sundays. Customs and Border Protection (CBP) uses its Automated Export System (AES) for tracking all import movements through the Port of Laredo. U.S. Customs and Border Protection, Port Director, Gregory Alvarez, heads the Port of Laredo. It’s important to note that C-TPAT also applies to facilities. All Ryder facilities in Laredo and Nuevo Laredo, as well as all facilities operated by Ryder further south in Mexico, are C-TPAT certified. In addition, all carriers serving Ryder are subject to a rigorous Ryder driver clearance program to ensure all drivers meet standards beyond those required by C-TPAT.

Physical inspections are performed on a stratified random sample of the units crossing each day. In addition, Alvarez and his staff are on the watch out for variant behaviors which trigger additional inspections.

Dedicated FAST driver lanes (four north and four south) and C-TPAT standing reduce average crossing times to less than two hours per Ryder tractor-trailer unit. Hazardous materials movements (»2,000 a day) are all handled via Colombia Bridge which is 20 miles west of Laredo in Nuevo Leon.

In order to comply with Mexican law, Ryder set up close partnerships with several carriers in Mexico such as Transportes Monroy Schiavon (TMS), Transportes Lazo, STIL, Akna, and others. These carriers, while small for U.S. standards, are of significant size in Mexico. These contracted partners serve many customers, but also serve as dedicated contract carriers for Ryder’s customers. Ryder buys and contracts equipment to them. All of the equipment has the safety and security systems needed. STIL and Akna are Ryder’s main carriers in the Laredo/Nuevo Laredo border crossing. Both carriers are C-TPAT certified, and drivers meet the standards set by Ryder, which meet U.S. DOT requirements. The units are bar-coded. Maintenance is scheduled automatically by Ryder’s FleetFocus vehicle maintenance system. In addition, Ryder’s Yardview Yard Management System tracks all equipment in Nuevo Laredo, Monterrey, Mexico City, Puebla, and Guadalajara.

STIL trucks are used over-the-road in Mexico for dedicated operations including milk and peddle runs. They are also used to deliver into the U.S. at distances up to 700-800 miles. Services include dry van and flatbed loads. Akna tractors are used for cross-border trailer movements. Production is three to four trips per driver per day. All STIL and Akna personnel participate in Ryder’s STAR quality program which gives seven standardized metrics for each employee per month.

Ryder’s Nuevo Laredo operations provide transportation management services for 34 customers. Customer relationships vary from those of an agent to being an active and complete manager. As an agent, Ryder provides the system, tracking and reporting. As an active manager, Ryder covers all shipments, carrier management and value-adds end-to-end. Besides Nuevo Laredo, Ryder’s other control tower (Operations Management Center) primarily dedicated to U.S. operations is in Novi, Michigan. Between the two locations, there are 95 staff members providing 24/7/365 coverage. Ninety thousand loads are managed per month.

The basic process flow for Mexico export shipments to the U.S. is shown in Figure 4.

Figure 4. Ryder Nuevo Laredo Mexico Export Shipment Process Flow

Using this export shipment process flow, the Ryder operation is currently managing 1,300 outbound loads per week and has the capacity to handle 2,500 border crossings per week.

Profiles for Ryder and 13 additional U.S.-Mexico Truckload Carrier/3PL Providers are noted in Appendix A. Further detail about Ryder’s Mexican capabilities, as well as Werner and XPO Logistics, are expanded upon in Appendix B.

Mexican-based trucking companies emphasize intra-Mexico and cross-border traffic. The amount of emphasis on each varies by company. Revenues for the top 45 Mexican Motor Carrier companies range from $28.6 to $217.0 million and are noted in Appendix C.

As manufacturing competencies and retail expansion continues, the expertise needed to navigate the regulatory environment puts Mexican carriers and third-party logistics providers such as Ryder in a strong position of opportunity. And while Mexico’s economic headwinds and currency valuation versus the U.S. Dollar threaten the forecast for 2017, the three-year outlook looks positive for trucking in Mexico.

Appendix A: U.S. - Mexico Truckload Carrier/3PL Profiles C.H. Robinson

Ave. Eugenio Garza Laguera 933. Piso #4 San Pedro Garza Garcia, Nuevo Leon, Mexico 66269 +(52) 818-1335600 www.chrobinson.com

Ownership: Public

3PL Revenue: $13,144.0 million

Mexican 3PL Revenue: $100.0 million*

Officers: John Weihoff, Chairman and CEO Dan Ryan, Vice President

Mexican Contact: Mike Burkhart, Director - Mexico Region ([email protected])

Mexican Operations: C.H. Robinson was the fifth largest global 3PL by revenue in 2016. It is the largest truckload and less- than-truckload broker in North America with over 50,000 carriers under contract. The C.H. Robinson de Mexico S.A. de C.V. wholly-owned subsidiary has been operating in Mexico since 1990. It is headquartered in Monterrey with offices in Mexico City, Queretaro, Guadalajara, and it has Mexico- centric operations along the U.S. border in San Diego, Nogales, El Paso, Laredo, and McAllen. The Mexican operation uses the same proprietary single instance global TMS technology, Navisphere, as all other C.H. Robinson locations.

In addition to truckload (van, reefer, flatbed), intermodal, and LTL brokerage, the organization provides ocean and air freight forwarding and customs house brokerage. The border locations include warehouse and cross-docking space. The Mexican operation houses over 200 bilingual employees and focuses on the automotive, consumer, food and beverage, high-tech, and industrial manufacturing industries.

*Source: Primary, Company Information; Secondary, A&A Estimates

U.S. – Mexico Truckload Carrier/3PL Profile

DHL Supply Chain

Carretera Mex-Qro Km 34.5 Colonia Rancho San Isidro Estado de Mexico, Mexico, C.P. 54740 +(52) 55-30032600 www.dhl.com.mx

Ownership: Deutche Post DHL

3PL Revenue: $4,200.0 million

Mexican 3PL Revenue: $280.0 million*

Officers: Agustin Croche, President DHL Supply Chain Mexico

Mexican Contact: Will Heywood, Vice President, Operations Excellence at DHL Supply Chain (will. [email protected])

Mexican Operations: DHL was established in Mexico in 1979 and has 4,044 employees. It has 57 service centers in Mexico. DHL has five major international gateways with 12 dedicated domestic flights and 10 owned international flights. It has 1,400 vehicles in its fleet. DHL Express Mexico has a dedicated network with four large transfer centers.

DHL’s dedicated and shared user warehousing solutions include assembly, kitting, packaging, pre- retail services (such as labeling and returns management), quality control, customs compliance, consolidation/deconsolidation, bonded warehousing, and global coverage.

DHL Supply Chain has a strategic alliance with Pernod Ricard Mexico, a global provider of premium beverage and spirits. The DHL Macrocentro facilities in Cuautitlan Izcalli, State of Mexico, offers storage, product conditioning, promotional sales kits, and national distribution to retailers, wholesalers, and customers. DHL Supply Chain Mexico services food and beverage, personal care, home care, and appliance companies.

*Source: Primary, Company Information; Secondary, A&A Estimates

U.S. – Mexico Truckload Carrier/3PL Profile FEMSA Logistica

General Anaya 601 Monterrey, Nuevo Leon, Mexico 64410 +(52) 81-83286000 www.logisticafemsa.com

Ownership: Public

3PL Revenue: $957.0 million

Mexican 3PL Revenue: $410.0 million*

Officers: Jesus Dima Vega Garcia, Director General FEMSA Logistics Ramiro Gerardo Delgado Aldrete, Director Operaciones Mexico

Mexican Contact: Roberto de la Torre ([email protected])

Mexican Operations: FEMSA Logistica is one of Mexico’s major dedicated contract carriage and transportation providers. FEMSA’s Mexican operations have approximately 8,500 employees throughout 57 locations. FEMSA offers road, rail and intermodal, ocean freight forwarding, and warehousing services to customers. FEMSA services customers within the Food and Beverage industry including Coca-Cola, Heineken, and OXXO.

FEMSA Logistica has 2,100 trailers, 1,500 tractors, and 1,100 trucks in Mexico.

FEMSA Logistica brokerage has become a respectable player with approximately 200,000 in annual shipments and over $150 million in revenue.

*Source: Primary, Company Information; Secondary, A&A Estimates

U.S. – Mexico Truckload Carrier/3PL Profile Kuehne + Nagel

Torre Zafiro I Periférico Sur No. 4118, 3rd Floor Col. Jardines del Pedregal C.P. 01900, Mexico D.F. +(52) 55-54498000 mx.kuehne-nagel.com

Ownership: Kuehne + Nagel International AG

3PL Revenue: $4,909.0 million

Mexican 3PL Revenue: $100.0 million*

Officers: Mauro Rodrigo Gonzalez, President and Managing Director

Mexican Contact: Carina Rodriguez Contreras, Sales Administration and Marketing Manager (carina. [email protected])

Mexican Operations: Kuehne + Nagel Mexico has 20 offices with 327,191 m² warehouse space and 2,371 employees. It is extensively involved in value-added warehousing and distribution (VAWD) activities for Michelin, Pirelli, Magna, BMW, and Bosch. Toyota is also a large customer.

K+N has dedicated and shared warehousing space, less-than-truckload, full truckload, and messenger service distribution. It offers tax warehouse and NOM (certificate of labeling) services and printing, labeling, kitting, and clam shell value-added services.

K+N focuses on automotive, consumer goods, high-technology, real estate management, petrochemistry, perishables, pharmaceuticals, and healthcare industries.

*Source: Primary, Company Information; Secondary, A&A Estimates

U.S. – Mexico Truckload Carrier/3PL Profile P.A.M. Transportation Services

297 West Henri de Tonti Blvd. Tontitown, AR 72770 (800) 879-7261 www.pamtransport.com

Ownership: Public

3PL Revenue: $433.0 million

Mexican 3PL Revenue: $140.0 million*

Officers: Daniel Cushman, President Allen West, CFO

Mexican Contact: Fernando Gonzalez – Monterrey ([email protected], 956-758-2400)

Mexican Operations: P.A.M. is a mid-sized truckload carrier. It operates a fleet of 1,855 trucks. All trucks have Qualcomm display units that allow fleet managers to communicate directory with drivers.

The Mexico Division has extensive ties to the auto industry and new growth with retail and manufacturing customers.

P.A.M. partners with 40 Mexican carriers and has terminals in Laredo and El Paso, Texas, as well as an office in Monterrey, Mexico.

*Source: Primary, Company Information; Secondary, A&A Estimates

U.S. – Mexico Truckload Carrier/3PL Profile ProTrans de Mexico, S. de R.L. de C.V.

Carretera Miguel Aleman KM 14.5 Esquina con Avenida Isidoro Sepulveda Martinez Edificio 3-E, Monterrey Business Park Apodaca, Nueva Leon, Mexico 66478 +(52) 818-1968800 www.protrans.com

Ownership: Private

3PL Revenue: $302.8 million

Mexican 3PL Revenue: $4.5 million*

Officers: Craig Roeder, President Shawn Masters, CCO John Woods, EVP Sales Ratnam Philip, CAO Lisa Doerner, CFO Allen Phelps, CIO Chris Blunk, COO

Mexican Contact: Armando Hernandez, Director General Operaciones Mexicanas

Mexican Operations: ProTrans International, Inc. (ProTrans) is headquartered in Indianapolis, IN with regional offices in Novi, MI and Monterrey, Mexico. ProTrans operates over 24 service centers throughout Canada, Mexico and the U.S.

During ProTrans’ founding era, the North American Free Trade Agreement (NAFTA) presented logistics opportunities with the emerging maquiladora operations along the United States and Mexico border. In 1999, ProTrans expanded its business with the formation and registration of ProTrans de Mexico, S. de R. L. de C.V. located in Monterrey, Mexico (Apodaca, NL). ProTrans de Mexico currently has over 175 employees including supply chain managers in different states in the Mexican Republic.

The same customer-focused, functional teams at the corporate headquarters in Indianapolis are duplicated in the Monterrey office. The office in Monterrey includes engineering and analysis, accounting, human resources, route management, supply chain management, logistics administration, procurement and central cross-dock operations. All of these teams are specifically focused on customer operations that reside in Mexico.

In addition to the regional office, there are warehouses/cross-docks in Queretaro and Monterrey.

*Source: Primary, Company Information; Secondary, A&A Estimates

U.S. – Mexico Truckload Carrier/3PL Profile Ryder Supply Chain Solutions

11690 N.W. 105th St. Miami, FL 33178 (888) 887-9337 www.ryderscs.com

Ownership: Public

3PL Revenue: $2,659.0 million

Mexican 3PL Revenue: $240.0 million*

Officers: Robert Sanchez, Chairman and CEO

Mexican Contact: Gene Sevilla, VP International Operations ([email protected])

Mexican Operations: Ryder Mexico has over 2,500 employees and 33 operations including 17 warehousing and 16 customer plant locations. Ryder runs sequencing operations for GM in Ramos Arizpe and San Luis Potosi. It also provides services for Toyota, Mazda, Honda, VW, Nissan, Mercedes and Chrysler.

In Mexico, Ryder leases close to 1,000 vehicles to Mexican carriers that provide dedicated contract carriage (DCC) services to Ryder and its customers.

Ryder Mexico is a multifaceted, integrated third-party logistics provider within Mexico. It has significant cross-border, manufacturing support, transportation management, and finished goods value-added warehousing and distribution capabilities.

*Source: Primary, Company Information; Secondary, A&A Estimates

U.S. – Mexico Truckload Carrier/3PL Profile Schneider Logistics

3101 S. Packerland Dr. Green Bay, WI 54306 (800) 558-6767 www.schneider.com

Ownership: Private

3PL Revenue: $2,063.0 million

Mexican 3PL Revenue: $165.0 million*

Officers: Chris Lofgren, President and CEO Lori Lutey, EVP and CFO

Mexican Contact: Bernardo Rodarte, Vice President and General Manager Mexico (+52 55 1105-2000)

Mexican Operations: Since 2005, Schneider National Mexico’s main office is in Santa Fe (Mexico City).

Schneider’s Mexican operations have 108 SCS customer accounts and managed warehouse space totaling approximately 4.5 million square feet. The Mexico operations manage approximately 15,800 border crossings each month between Mexico, the U.S. and Canada.

*Source: Primary, Company Information; Secondary, A&A Estimates

U.S. – Mexico Truckload Carrier/3PL Profile Super Transporte Internacional

13519 Mercury Drive N.D. Hachar Industrial Park Laredo, TX 78045 (956) 791-9002 www.sti.com.mx

Ownership: Private

3PL Revenue: $50.0 million

Mexican 3PL Revenue: $50.0 million*

Officers: Ernesto Gaytan Palomo, President

Mexican Contact: Sara Rojas, Marketing ([email protected])

Mexican Operations: STI Group has six locations in Mexico: Nuevo Laredo, Monterrey, Saltillo, San Luis Potosi, Queretaro, and Silao. Customers include Penske, Ryder, Fiat Chrysler Automobiles, Siemens, MADISA, and Alstom. STI Group is C-TPAT and ISO 9001 certified.

*Source: Primary, Company Information; Secondary, A&A Estimates

U.S. – Mexico Truckload Carrier/3PL Profile Swift Transportation/Trans-Mex

2200 S. 75th Avenue Phoenix, AZ 85043 (800) 800-2200 www.swifttrans.com

Ownership: Public

3PL Revenue: $1,431.0 million

Mexican 3PL Revenue: $111.0 million*

Officers: Richard Stocking, President and CEO Virginia Henkels, CFO, Treasurer and Executive Vice President

Mexican Contact: Jose Gonzalez, VP of Mexico Operations ([email protected])

Mexican Operations: Swift has a wholly-owned subsidiary, Trans-Mex, which handles its Mexican cross-border traffic. Swift bought it in 2004 when there was a brief window for complete foreign ownership. Trans-Mex is primarily the legal entity. It has 769 tractors. Owned terminals in Mexico are at Nuevo Laredo, Nogales and Monterrey. Other locations utilized are in Reynosa, Mexico City, Guadalajara, Cuidad Juarez, Chihuahua, Mexicali, Toluca, and Tijuana.

Swift is C-TPAT certified and has a Mexican operating authority.

All operations use the same computer systems within Swift and the same communications networks. All tractors have Qualcomm units and are equipped with satellite tracking.

*Source: Primary, Company Information; Secondary, A&A Estimates

U.S. – Mexico Truckload Carrier/3PL Profile Transplace

11302 East Point Drive Laredo, TX 78045 (956) 722-3878 www.transplace.com

Ownership: Greenbriar Equity Group

3PL Revenue: $1,620.0 million

Mexican 3PL Revenue: $9.0 million*

Officers: Tom Sanderson, CEO Jay Baker, CFO Frank McGuigan, COO

Mexican Contact: Troy Ryley, Managing Director for Mexico

Mexican Operations: Transplace’s Mexico operation was founded in 2008 with operations in Monterrey, MX and Laredo, TX. Transplace Mexico has expanded to a total of 10 locations throughout Mexico. Transplace has over 600 employees in Mexico and along the southern border.

Services and capabilities include transportation management, intermodal, intra-Mexico, cross-border transportation, warehouse and distribution, and U.S./Mexico customs services.

*Source: Primary, Company Information; Secondary, A&A Estimates

U.S. – Mexico Truckload Carrier/3PL Profile Werner Enterprises

14507 Frontier Road Omaha, NE 68138 (800) 228-2240 www.werner.com

Ownership: Public

3PL Revenue: $1,156.0 million

Mexican 3PL Revenue: $300.0 million*

Officers: Derek Leathers, President and CEO John Steele, EVP, Treasurer and CFO Marty Nordlund, COO

Mexican Contact: Lance Dixon, Senior Vice President – Mexico (800-228-2240 Ext. 2007)

Mexican Operations: Werner, Celadon and Swift are usually mentioned as the largest truckload carriers to and from Mexico. Werner’s total Mexican revenue was $300.0 million in 2016.

Werner moves approximately 140,000 loads in and out of Mexico each year. Werner is C-TPAT, FAST and BASC certified.

*Source: Primary, Company Information; Secondary, A&A Estimates

U.S. – Mexico Truckload Carrier/3PL Profile XPO Logistics Supply Chain

4035 Piedmont Parkway High Point, NC 27265 (866) 463-9273 www.xpo.com

Ownership: Public

3PL Revenue: $8,638.0 million

Mexican 3PL Revenue: $70.0 million*

Officers: Ashfaque Chowdhury, President, Americas and Asia Pacific William Fraine, COO John Mitchell, CIO

Mexican Contact: Gary Frantz, Director, Corporate Communications ([email protected])

Mexican Operations: XPO operates four value-added warehouses/distribution centers in Guadalajara, Queretaro, Monterrey, and Mexico City. Its automotive customers include Ford, Navistar, Toyota, General Motors, and Lear Corporation.

XPO Supply Chain’s Mexico certifications include C-TPAT and SmartWay.

*Source: Primary, Company Information; Secondary, A&A Estimates

U.S. – Mexico Truckload Carrier/3PL Profile Xpress Internacional

Xpress Internacional S. de R.L. de C.V. Carretera Mex. 2 Km 17 Nuevo Laredo, Tamaulipas +(51) 867-8900500 +(52) 867-8900500 (866) 529-8202 www.xpress-mexico.com

Ownership: U.S. Xpress

3PL Revenue: $49.3 million

Mexican 3PL Revenue: $49.3 million*

Officers: Ernesto Knosel, CEO Guillermo Ruiz, CFO Jorge Solis, COO

Mexican Contact: Ashley Simmons, Corporate Communications Manager ([email protected])

Mexican Operations: U.S. Xpress is 95% owner of Xpress Internacional. U.S. Xpress has a 3PL revenue of $604.0 million.

Xpress Internacional was founded in 2007, and it was set up to be the same trailer connector for U.S. Xpress. It operates through Nuevo Laredo and has emphasis on northern and central Mexican locations. Xpress Internacional is C-TPAT certified and in the process of obtaining its NEEC Certification. Xpress Internacional is an official Mexican authorized transporter.

All drivers are cell phone equipped. Xpress Internacional has 400 tractors total. Fifty are used for border shuttles, 35 are in yards for hostling and local runs, 95 are used exclusively for hazardous materials. Within Mexico it uses Concisa for driver qualification and Recurso for driver background checks. Like the other established operators, it has extensive security procedures.

Xpress Internacional has terminals in Monterrey, San Luis Potosi, Aguascalientes, Queretaro, Mexico City and Juarez.

*Source: Primary, Company Information; Secondary, A&A Estimates

Appendix B: 3PL Provider Mexico Capabilities Ryder Mexico Capabilities Established in 1994, Ryder Mexico has built an extensive network. Its staff of over 2,500 manage 33 operations including 17 warehousing and 16 customer plant operations. Major Ryder facilities are located in Mexico City, Monterrey, Guadalajara, Ramos Arizpe, Toluca, Silao, Nuevo Laredo and Ciudad Juarez. Ryder manages over 150,000 U.S./Mexico truck border crossings a year and owns 730 dedicated transportation assets (tractors, trailers, straight trucks, etc.).

Dedicated contract carriage in Mexico takes a slightly different form because of Mexican laws prohibiting ownership of trucking operations by non-Mexicans. Ryder leases tractors and trucks to Mexican trucking companies that contract with Ryder to provide services. About 300 tractors, 50 trucks and 500 trailers are involved in DCC-like transportation management operations. Ryder Mexico equipment is leased to Mexican customers, including Mexican carriers. Some of these carriers dedicate equipment to Ryder and Ryder utilizes it interchangeably for its customers.

Nuevo Laredo Cross Border Operations Twenty minutes west of the U.S./Mexico border, Ryder operates a 16.8 acre cross border interchange operation in Nuevo Laredo. The operation started in 2009 and has grown to a staff of 220 employees, 13 acres of yard space with the capacity for 384 trailers and 60 trucks. It runs Monday through Friday from 7 A.M. to 11 P.M. and manages 1,300 border crossings per week. It is ISO 9001, C-TPAT (Customs- Trade Partnership Against Terrorism), and NEEC (Mexico’s equivalent of C-TPAT) certified. Security is supported by 108 cameras, including infrared cameras, monitoring all aspects of the operation. The facility is operational 24/7 for non-scheduled operations to handle delays or emergencies.

While the operation is currently managing 1,300 outbound loads per week, it has the capacity to handle 2,500 border crossings per week.

FINSA Industrial Park Value-Added Warehousing and Distribution Operations Ryder manages multiple value-added warehousing and distribution operations in the FINSA Industrial park located about 15 kilometers southwest of Monterrey in Santa Caterina.

Tobacco Products Customer FINSA Warehouse 4 is a 137,000 square foot dedicated operation for a tobacco products customer. The warehouse has 38’ high ceilings, and 28 dock doors (14 for receiving and 14 for shipping). It is a high-profile facility with in-rack fire control sprinklers, over 50 CCTV cameras, and access control. The operation’s certifications include: C-TPAT, NEEC, and ISO 9001:2008.

Ryder began working with this customer in 2006 to manage finished goods exports to Canada where Ryder manages the distribution and last-mile delivery of cigarettes to retailers. In 2009, Ryder started managing its point-of-sale materials and then after winning a bid in 2010, it began handling the distribution of finished goods shipments of packaging materials and cigarettes for the domestic Mexico market. Ryder is in the middle of a second three-year agreement with this customer.

The operation is run by a 75 person team. Half of the warehouse is utilized to store over 100 SKUs (stock keeping units) of tobacco leaf which is held as raw materials for production. The tobacco leaf is sourced from multiple countries including the United States, Canada, Mexico, and Brazil. It is held in a bulk

storage area comprising 40,000 positions for large corrugated boxes containing tobacco leaf. In addition to the bulk leaf storage, the warehouse also has a 6,000 square foot, 20 degree Celsius conditioned room for menthol capsules, leaf paper, and other materials used in production.

To meet the needs of the customer’s plant in downtown Monterrey, Ryder manages a shuttle operation delivering 20 outbound truckloads of materials (leaf, other materials, and approximately five truckloads of packaging materials) to the plant each day. On return, Ryder brings back approximately five to seven truckloads of cigarettes to the warehouse. Ryder has two people on staff at the plant to coordinate logistics with production. Approximately 70% of the packaging materials utilized by the customer are sourced in Mexico. Ryder manages some of the inbound transportation of packaging materials into the warehouse.

Domestic Mexico distribution includes finished goods shipments of point-of-sale materials and cigarettes to Mexico City, Guadalajara, and Monterrey. One hundred sixty SKUs of finished goods products are stored in racks comprising 282 pallet positions. Three outbound truckloads are shipped to domestic customers.

HVAC Systems Customer Since forming its relationship with a heating, ventilating and air conditioning (HVAC) systems customer in 2001, Ryder has built a significant supply chain management relationship. Its supports four of the customer’s Mexico air conditioner manufacturing operations with a staff of 400 in and around Monterrey. The operation also includes an inbound warehouse, a VMI (vendor managed inventory) operation, outbound distribution center, and large outside distribution yard operation for loading over-sized units destined to commercial buildings.

At a 290,626 square foot multi-client warehouse (number 8) in the FINSA industrial park, Ryder is managing the VMI operation for the customer. The VMI operation has a staff of 44 working in three shifts. Each month, 68 truckloads and 22 full ocean containers of inbound parts and materials from 17 suppliers in the U.S., China, and Malaysia are managed through Nuevo Laredo, and the ocean ports of Manzanillo and Lazaro Cardenas, to Warehouse 8. The VMI operation is run in 66,982 square feet of the facility. Ryder performs a 100% verification of all inbound parts and materials, which average 2,000 units per day. The operation has over 300 SKUs of on-hand parts and materials inventory maintained in approximately 4,300 locations. Ryder fulfills approximately two to three outbound orders per day of parts and materials to the customer’s Plant B.

In conjunction to the VMI operation, Warehouse 8 also manages an inbound materials management operation for non-VMI parts and materials destined to the customer’s Plant B. The 20 person, one shift operation is housed in 35,521 square feet of the warehouse and stores approximately 1,200 SKUs of product in 1,280 pallet locations. Combined VMI and non-VMI parts and materials shipments to Plant B run every four hours and total approximately 10 outbound truckloads per day.

Ryder Mexico has grown into a multifaceted, integrated third-party logistics provider within Mexico. It has significant cross border, manufacturing support, transportation management, and finished goods value-added warehousing and distribution capabilities.

Ryder personnel are imbedded at automotive, industrial, high-technology and consumer goods locations. Overall, Ryder’s Mexican business is 33% industrial, 30% automotive, 19% high-technology, 11% retail consumer product goods and 7% other.

Werner Enterprises Mexico Capabilities Werner is a $1.2 billion logistics company operating throughout North America. Its total fleet consists of 7,100 tractors and 24,350 trailers.

Werner is a top U.S. motor carrier serving the Mexico market. Company President and Chief Executive Officer Derek Leathers started Werner’s Mexico operations in 1999. Leathers, 47, lived in Mexico for eight years. He and his associates understand the culture well. In 2001, Werner built a terminal in Laredo, Texas, and the company has continued to expand its footprint.

History in Mexico

Intra-Mexico operations at Werner have grown substantially. These loads involve intermodal and ocean dray movements.

Werner is C-TPAT certified and validated by the Department of Homeland Security. Werner has developed policies and procedures that provide secure supply chains. Security is at the forefront of Werner’s operations. The same level of policies and procedures is applied to its Mexican partners as well.

XPO Logistics Supply Chain Mexico Capabilities XPO Logistics is the fastest growing and most acquisitive provider of transportation logistics in North America. In October 2015, XPO Logistics acquired major trucking and logistics provider Con-way for $3 billion. Menlo Logistics was included in this deal. XPO operates as one integrated team providing seven essential supply chain solutions. Globally, XPO Logistics manages more than 150 million square feet of warehouse space, 80 of which are in North America.

In Mexico, XPO operates four value-added warehouses/distribution centers and has a significant transportation-related presence in the country, providing managed transportation, intermodal, brokerage, and less-than-truckload (LTL) services.

XPO Supply Chain The four distribution centers are located in the key cities of Guadalajara, Monterrey, Queretaro, and Mexico City, and are strategically located with easy access to main highways. Each of these Lean certified locations are multi-tenant, primarily serving the retail, automotive, technology, and industrial verticals, with support for others as well.

XPO Logistics Distribution Centers in Mexico

• Mexico City— XPO’s Mexico City facility is located in the north side of the city. This multi-client site offers a full-service warehousing facility that provides a complete range of logistics services. This warehouse is strategically positioned within the Mexico City metro area, with fast access to the Chamapa-La Venta highway, which feeds into the most important routes to the rest of the country. An extensive pickup and delivery network operates from this facility. • Guadalajara— XPO’s Guadalajara distribution center is a multi-client, full-service warehousing facility that provides a complete range of logistics services. • Monterrey— XPO’s Monterrey facility is located within the metropolitan area of the city. This multi-client site offers a full-service warehousing facility that is ISO 9001-certified and TAPA compliant • Queretaro— Located in the Parque Industrial Bernardo Quintana, XPO’s Queretaro distribution center is strategically located near both major highways to and from Mexico City and the main corridor to the Bajio region.

Supply Chain Value-Added Services XPO Logistics Supply Chain’s value-added services for warehousing include:

• Warehousing (Inbound and Outbound) • Light Assembly • Labeling

• Testing • Audit • Kitting • Pick and Pack • Reverse Logistics • Order Consolidation • Order Tracking • Vendor Managed Inventory (VMI) • Order Planning

XPO Managed Transportation XPO Logistics Supply Chain’s managed transportation services include:

• International inbound/outbound programs: ‐‐ LTL and FTL point-to-point moves from or to the U.S. and Canada ‐‐ Multimodal point-to-point moves from or to the U.S. and Canada ‐‐ LTL and FTL moves from any U.S./Mexico border location ‐‐ Container movements from and to Mexican ports (Manzanillo, Veracruz, Altamira and Lazaro Cardenas) • Domestic inbound/outbound programs: ‐‐ Inbound/outbound point-to-point LTL and FTL programs ‐‐ Inbound/outbound milk-run supplier pick-up programs • Control towers located in Monterrey and Guadalajara

Managed Transportation Value-Added Services XPO Logistics Supply Chain’s security services include:

• Security-escort services • Motor and door locking systems • Satellite and GPS monitoring systems • Radio/mobile communication links • High-risk zone identification • Security process documentation • Resource certification (Drivers)

XPO 4PL/Lead-Logistics Provider XPO Logistics Supply Chain’s 4PL services include:

• Integrating resources, capabilities and technology • Developing and deploying complex logistics networks • Building and running a comprehensive supply chain solution • Providing global visibility systems and metrics • Continual optimization of total supply chain costs • Maquiladora services and IMMEX Program

XPO’s Transportation-Related Services XPO’s intermodal capabilities include:

• 9,000 XPO-controlled 53’ containers • Over 115,000 large and small boxes on call • More than 10 intermodal ramps in Mexico • Operational personnel located at the majority of intermodal terminals in Mexico, including Monterrey, San Luis Potosi, Silao, Pantaco, Toluca, and Hermosillo • Service at all major U.S.-Mexico border crossings • Drayage presence at key sea ports • Intra-Mexico intermodal services, focused on spare parts transportation by train and truckload

XPO’s brokerage capabilities include: • Over 38,000 vetted carrier relationships representing over 1 million trucks • Truckload, LTL, drayage, expedite, and heavy haul • Management of interchange agreements between U.S. and Mexico carriers • Bilingual reps at all XPO brokerage service centers • Experienced in flows of raw materials and finished goods, sensitive freight, high-value freight, high-security freight, and government shipments

XPO’s LTL capabilities include: • 8,500 tractors and 25,000 trailers • Reliable regional, inter-regional, national, or cross-border time-definite service • Fast transit times • Next-day and second-day service after customs clearance

XPO Customers in Mexico

XPO’s Mexico Footprint

Appendix C: Mexican Motor Carrier Profiles

Gross Revenue Mexican Motor Carrier Profile (US$ Millions)

Autotransportes de Carga Tres Guerras S.A. de C.V. Carretera Celaya-Villagrán Km. 3.57 S/N Localidad Estrada Celaya, Guanajuato 38110, México Jorge Almanza Mosqueda, CEO (461) 618-7000 [email protected] www.tresguerras.com.mx English

Year Established: 1935 Fleet Type: General Freight (LTL, Package) Equipment: 450 Trucks, 1000 Tractors Additional Information: $217.0 • Certification ISO 9001:2008 • 48 offices and 15 temporary warehouses (cross-docks) in 400 cities within the Mexican territory • Services: ‐‐ Consolidated freight, full truck and dedicated service ‐‐ Local service in 24 hours ‐‐ National service in 2 to 3 days ‐‐ Custody service México City and Guadalajara ‐‐ Storage ‐‐ Consolidate service to retailers and distribution centers

Transportes Castores de Baja California S.A. de C.V. Blvd. José Ma. Morelos #2975, Col. Alfaro, León, Guanajuato 37238, México Refugio Muñoz Herrera, CEO Jorge Morales, Marketing Manager (477) 710-0700 [email protected] www.castores.com.mx $207.2

Year Established: 1974 Fleet Type: General Freight (LTL, Package) Equipment: 180 Straight Trucks, 450 Tractors, 650 Trailers

* Source: Primary, Company Information; Secondary, A&A Estimates

Gross Revenue Mexican Motor Carrier Profile (US$ Millions)

Auto Líneas América S.A. de C.V. Carretera Colombia Numero 3200, Escobedo, Nuevo León 66050, México Víctor M. Salazar, CEO (81) 8154-5000 [email protected] www.alasa.com English $169.6 Year Established: 1959 Fleet Type: General Freight (TL) Equipment: 1,000 Tractors, 1,600 Trailers

Transportes Julián de Obregón S.A. de C.V. 16 de Septiembre # 902, Col. Obregón, León, Guanajuato 37320, México Pedro González Zaragoza, CEO Gustavo Márquez García, Marketing Manager (477) 788-5200 [email protected] www.juliandeobregon.com.mx $162.8

Year Established: 1941 Fleet Type: General Freight (LTL) Equipment: 300 Straight Trucks, 300 Tractors, 400 Trailers

Transportistas Unidos Mexicanos Div. Nte. Eucalipto #2, Fracc. Ind. Tabla Honda, Tlalnepantla, Estado de México 54126, México Miguel Quintanilla Rebollar, CEO (55) 5392-4642 [email protected] www.tum.com.mx $141.0 Year Established: 1938 Fleet Type: General Freight (TL, Auto Parts) Equipment: 1,800 Straight Trucks, 1,200 Tractors, 2,500 Trailers Additional Information: • Certification ISO 9000 Series • C-TPAT Certification • Operates 18 terminals throughout Mexico.

* Source: Primary, Company Information; Secondary, A&A Estimates

Gross Revenue Mexican Motor Carrier Profile (US$ Millions)

Transportadora Nacional S.A. de C.V. Calle 3a Sur #40, Col. Independencia, Tultitlan, Estado de México 54914, México Edgar Parra, CEO (55) 5899-8200 [email protected] www.tn.com.mx $136.1 Year Established: 1972 Fleet Type: General Freight (TL) Equipment: 50 Straight Trucks, 150 Tractors, 100 Trailers

Transportes Cuauhtémoc S.A. de C.V. Parque Ind. Stiva Aeropuerto, Av. Tratado Libre Co 600, Apodaca, Nuevo León 66600, México Gerardo Elizondo DáVila, CEO Bernardo Escajadillo, Marketing Manager (81) 5000-3300 [email protected] $127. 2 www.tc.com.mx English

Year Established: 1959 Fleet Type: General Freight (TL) Equipment: 600 Tractors, 842 Trailers

Frialsa Logística S.A. de C.V. Parque Industrial Cuamatla Av. André Marie Ampere, Cuautitlán Izcalli, Estado de México 54730, México Luis Jorba Servitje, CEO Carlos Gonzales, COO (55) 5872-3280 [email protected] $127.1 www.frialsa.com.mx English

Year Established: 1983 Fleet Type: Refrigerated Solids (LTL, Produce, Refrigerated and Frozen Products) Equipment: 300 Tractors, 300 Trailers (reefer)

* Source: Primary, Company Information; Secondary, A&A Estimates

Gross Revenue Mexican Motor Carrier Profile (US$ Millions)

Trans-Mex, Inc. S.A. de C.V. Carretera Mexico II, Km 16 Pte., Colonia Ejido el Progresso, Nuevo Laredo, Tamaulipas 88123, México José González , VP of Mexico Operations (867) 890-4600 [email protected] www.swifttrans.com English $111.0

Year Established: 1994 Fleet Type: General Freight (TL) Equipment: 769 Trucks

Auto Líneas Regiomontanas, S.A. de C.V. Avenida Ordaz #205, Col. Díaz Ordaz, San Nicolás de los Garza, Nuevo León 66480, México Florencio Flores Aguirre, President Ramiro Ortiz Salinas, Sales (81) 8353-3050 [email protected] $97.6 www.alr.com.mx English

Year Established: 1970 Fleet Type: General Freight (TL, Solvents, Chemicals) Equipment: 18 Straight Trucks, 289 Tractors, 505 Trailers

Servicio de Transportacion Jaguar San Juan #7, Col. San Juan Ixhuatepec, Tlalnepantla, Estado de México 54180, México George Chasteen, CEO Enrique Favila, Business Development (55) 5718-0099 México City (81) 8286-1150 Monterrey $88.8 [email protected] www.jaguar.com.mx English

Year Established: 1994 Fleet Type: General Freight (LTL) Equipment: 400 Trucks

* Source: Primary, Company Information; Secondary, A&A Estimates

Gross Revenue Mexican Motor Carrier Profile (US$ Millions)

Grupo TMM / Lacto Comercial Organizada S.A. de C.V. Av. San Francisco #104, Los Reyes La Paz, Estado de México 56400, México José Serrano Sergovia, CEO (55) 5856-3945 www.grupotmm.com English

Year Established: 1961 $85.8 Fleet Type: General Freight (TL) Equipment: 307 Straight Trucks, 373 Tractors, 283 Trailers

Transportadora Hercel S.A. de C.V. / Transportadores Unidos S.A. de C.V. (Grupo Transportes) Av. Wake #193, Col. Electricistas, D.F. 02060, México Sergio Padilla Corona, CEO Sara Olvera, Sales (55) 5561-3699 [email protected] $84.9 www.grupotransportes.com.mx

Year Established: 1975 Fleet Type: General Freight (LTL, TL, Petroleum Products) Equipment: 300 Tractors, 600 Trailers (tank)

Transportes Pitic, S.A. de C.V. Libramiento México II Km 27.5 Col. Ejido el Progreso, Nuevo Laredo, Tamaulipas 88000, México Jorge Cons Figueroa, CEO Liliana López, Sales (662) 259-9000 [email protected] $78.9 www.tpitic.com.mx English

Year Established: 1973 Fleet Type: Package (General Freight, LTL) Equipment: 40 Straight Trucks, 177 Tractors, 400 Trailers

* Source: Primary, Company Information; Secondary, A&A Estimates

Gross Revenue Mexican Motor Carrier Profile (US$ Millions)

Express Tres Fronteras S.A. de C.V. Eje. Vial Juan Gabriel, Col. Partido Iglesias, Ciudad Juárez, Chihuahua 32528, México Manuel Andazola Gonzalez, CEO (656) 639-8000 [email protected] www.3fronteras.com.mx $71.0

Year Established: 1992 Fleet Type: General Freight (TL) Equipment: 525 Tractors, 550 Trailers

Transportes Quintanilla S.A. de C.V. Av. Cesar López #3868, Col. Anáhuac, Nuevo Laredo, Tamaulipas 88260, México Roberto Quintanilla B., CEO Oscar Guerra, Sales (867) 715-3515 [email protected] www.tq.com.mx English $65.1

Year Established: 1979 Fleet Type: General Freight (TL, Refrigerated Products, Dry Freight, Package) Equipment: 306 Tractors, 550 Trailers

Central de Fletes Monterrey, S.A. de C.V. / Transportes Gonzalez S.A. de C.V. (Grupo MG) Rio Tlalnepantla, Col. San José de la Escalera, D.F. 07630, México Jean Paris González Díaz, CEO Salvador Santos, Sales (55) 5039-9004 [email protected] $64.1

Year Established: 1970 Fleet Type: General Freight (TL, Flatbed, Dry Freight) Equipment: 300 Tractors, 400 Trailers

* Source: Primary, Company Information; Secondary, A&A Estimates

Gross Revenue Mexican Motor Carrier Profile (US$ Millions)

Transportadora Egoba S.A. de C.V. Av. 5 de Feb #1730, Zona Industrial Benito Juarez, Querétaro, Querétaro 76120, México Alejandro Soto, CEO Alejandra Ramírez, Sales (442) 209-7000 [email protected] $62.1 www.egoba.com.mx English

Year Established: 1994 Fleet Type: General Freight (TL, Steel, Copper Wire, Auto Parts) Equipment: 294 Tractors, 1,372 Trailers (55 flatbed, 1,317 van)

Transportes Especializados Antonio de la Torre e Hijos, S.A. de C.V. Av. Veracruz #206, Col. Tulpetlac, Ecatepec, Estado de México 55400, México Marco Antonio de la Torre González, CEO Lic. Guillermo Mendoza A., COO (55) 5776-3831 [email protected] www.transportes-delatorre.com English $61.2

Year Established: 1962 Fleet Type: Petroleum Products (TL, Oil, Electronics, Farm Machinery, Refrigerated Products) Equipment: 500 Tractors, 70 Trailers

Transportes Comandos del Norte S.A. de C.V. Francisco Eusebio Kino S/N, Col. Huertas de la Progreso, Mexicali, B.C. 21190, México Marco Antonio Eguia, CEO Guillermo Sánchez R., Marketing Manager (686) 568-0160 Ext. 2050 [email protected] $59.2 www.comandos.com.mx

Year Established: 1989 Fleet Type: General Freight (LTL) Equipment: 150 Tractors, 300 Trailers

* Source: Primary, Company Information; Secondary, A&A Estimates

Gross Revenue Mexican Motor Carrier Profile (US$ Millions)

Transportes de Nuevo Laredo S.A. de C.V. Carretera al Aeropuerto, Col. Enrique Cárdenas Glez., Nuevo Laredo, Tamaulipas 88295, México Genner Díaz, Commercial Manager (867) 711-1777 Ext. 7153 [email protected] www.tnl.com.mx English $58.2

Year Established: 1956 Fleet Type: General Freight (TL, LTL, Machinery, Auto Parts) Equipment: 60 Straight Trucks, 370 Tractors, 800 Trailers

Transportes Lar-Mex, S.A. de C.V. Central de Carga, Av. Cinco #102, San Nicolás de los Garza, Nuevo León 66129, México Octaviano García Rodríguez, CEO Valeria González, Sales (81) 8158-6969 [email protected] $53.3

Year Established: 1964 Fleet Type: General Freight (TL, Fuel, Gas, Petroleum) Equipment: 448 Tractors, 400 Trailers

Transportes Auto Tanques Ochoa S.A. de C.V. San Juan #7, Col. San Juan Ixhuatepec, Tlalnepantla, Estado de México 54180, México Mariano Ochoa, CEO (55) 5746-8475 [email protected] www.atosa.com.mx English $53.2

Year Established: 1967 Fleet Type: Tank Truck (TL, Oil Products, Solvents, Chemicals, General Freight) Equipment: 250 Tractors, 250 Trailers

* Source: Primary, Company Information; Secondary, A&A Estimates

Gross Revenue Mexican Motor Carrier Profile (US$ Millions)

Transportes Fema S.A. de C.V. Carretera Aeropuerto-Piedras Negras Km 0.440, Concordia, Nuevo Laredo, Tamaulipas 88295, México Carlos Alberto Fernández, CEO Alberto Ramírez, Sales (867) 711-2500 [email protected] $52.3 www.tfema.com

Year Established: 1987 Fleet Type: General Freight (LTL, Hazmat) Equipment: 230 Trucks, 330 Transfer Trucks, 700 Trailers

Fletes Internacionales Coss S.A. de C.V. Carretera San Fernando No. 1715, Col. Arcoiris, Reynosa, Tamaulipas 88797, México Jorge De Coss Garza, CEO (899) 957-3060 [email protected] www.decoss.com.mx $51.3

Year Established: 1990 Fleet Type: General Freight (TL, Flatbed) Equipment: 150 Straight Trucks, 177 Tractors, 450 Trailers

Super Transporte Internacional S.A. de C.V. Carretera Piedras Negras Km 17, Ejido San Francisco, Nuevo Laredo, Tamaulipas 88176, México Ernesto Gaytan, CEO Sara Rojas, Marketing (867) 711-1700 [email protected] $50.0 www.sti.com.mx English

Year Established: 1989 Fleet Type: Heavy Haul (Flatbed, TL, Heavy Equipment, General Freight) Equipment: 300 Tractors, 338 Flatbeds

* Source: Primary, Company Information; Secondary, A&A Estimates

Gross Revenue Mexican Motor Carrier Profile (US$ Millions)

Express Anáhuac S.A. de C.V. Av. Platón Sánchez #2000, Col. del Norte, Monterrey, Nuevo León 64500, México Alejandro Frías, CEO Luis Exsome, Sales (81) 8331-3000 Ext.102 [email protected] www.exan.com.mx English $48.3

Year Established: 1948 Fleet Type: Heavy Haul (TL, Heavy Commodities, Agricultural Equipment, Construction Materials, Machinery) Equipment: 156 Tractors, 303 Flatbeds

Transportes Lopez e Hijos S.A. de C.V. Carretera Colombia #2100, Escobedo, Nuevo León 66050, México Pablo Martinez Cavazos, CEO (81) 8154-8500 [email protected] www.tlh.com.mx $43.4 Year Established: 1960 Fleet Type: General Freight (TL) Equipment: 11 Straight Trucks, 221 Tractors, 140 Trailers

TRACOMEX S.A. de C.V. Avenida Ejercito Nacional 539 P, Col. Ampliación Granada, D.F. 11520, México Alejandro Dibildox Nieto, CEO Guadalupe Pineda (55) 5203-9022 [email protected] www.tracomex.com.mx $42.4

Year Established: 1974 Fleet Type: General Freight (TL, Automobiles) Equipment: 200 Tractors, 200 Trailers

* Source: Primary, Company Information; Secondary, A&A Estimates

Gross Revenue Mexican Motor Carrier Profile (US$ Millions)

Autotransportes de Carga El Duero / Fletes El Duero S.A. de C.V. Carlos A. Madrazo y Avenida Juárez, Col. Ejidal, Zamora, Michoacán 59660, México Jorge Madrigal Sierra, CEO Juan Magaña, CFO (351) 517-2212 [email protected] $41.4

Year Established: 1954 Fleet Type: General Freight (LTL, Packages, Steel Rods) Equipment: 18 Straight Trucks, 95 Tractors, 75 Trailers

Transportes del Valle Prolongación Madero 4217 Oriente, Colonia Fierro, Monterrey, Nuevo León 64590, México Hernando Cárdenas, CEO Primitivo Costilla, COO (818) 354-7140 [email protected] $40.5 www.tdvalle.com.mx

Year Established: 1955 Fleet Type: General Freight (LTL, Packages) Equipment: 95 Tractors, 155 Trailers

Transportes Elola S.A. de C.V. Carr. Mex-Qro Km. 34.5, Col. Las Conchitas, Cuautitlán Izcalli, Estado de México 54750, México Antonio Elola Salas, CEO Arturo Sánchez (55) 5864-0110 [email protected] $39.4 www.elola.com.mx

Year Established: 1990 Fleet Type: General Freight (TL) Equipment: 155 Tractors, 476 Trailers

* Source: Primary, Company Information; Secondary, A&A Estimates

Gross Revenue Mexican Motor Carrier Profile (US$ Millions)

Transportes Internacionales JCV S.A. de C.V. Carr. Internacional km 20, Nogales, Sonora 84000, México Manuel Huerta, CEO Gabriel Salazar, Sales (631) 209-4030 [email protected] www.mht-jcv.com English $38.4

Year Established: 1975 Fleet Type: General Freight (TL, Produce, Paper) Equipment: 300 Trucks, 500 Trailers (reefer)

Ryder Capital S. de R.L. de C.V. Alfonso Nápoles Gandara No. 50 Primer Piso, Col. Santa Fe Pena Blanca, D.F. 01210, México Gene Sevilla Sacasa, General Director Ricardo Alvarez – Sales Director (55) 5257-6900 [email protected] $37.0 www.ryder.com English

Year Established: 1994 Fleet Type: General Freight (TL) Equipment: 20 Straight Trucks, 150 Tractors, 300 Trailers

Transportes Canales S.A. de C.V. Brecha #115, Colonia Emilio Portes Gil, Rio Bravo, Tamaulipas 88900, México Carlos A. Canales, CEO Davis González, Sales (899) 934-0100 [email protected] www.grupocanales.com.mx English $36.5

Year Established: 1991 Fleet Type: General Freight (TL) Equipment: 170 Tractors, 320 Trailers

* Source: Primary, Company Information; Secondary, A&A Estimates

Gross Revenue Mexican Motor Carrier Profile (US$ Millions)

Auto Express Tijuana México Tijuana S.A. de C.V. Júpiter #80A, Colonia Nueva Industrial Vallejo, D.F. 07700, México Luis Miguel Cesar Gastelum, CEO (55) 3536-8465 [email protected] www.aet.com.mx $36.2 Year Established: 1975 Fleet Type: Package (LTL, Fruit, Vegetables, Beef, Perishables) Equipment: 85 Tractors, 170 Trailers Additional Information: Perishables transportation only.

Transportes León-México S.A. de C.V. Prol. Españita #909, Colonia Los Gavilanes, León, Guanajuato 37270, México Maria Isabel Guerrero Cano, CEO Edgardo Amezcua Suarez, Sales (477) 763-0723 [email protected] www.leon-mexico.com.mx $33.5

Year Established: 1961 Fleet Type: General Freight (LTL) Equipment: 83 Straight Trucks, 61 Tractors, 82 Trailers

Centauros del Sureste, S.A. de C.V. Prol. Rosario #569, Col. Lorenzo Boturini, D.F. 15820, México Heleodoro Salgado Pineda, CEO (55) 5552-3122 [email protected] www.centaurosdelsureste.com.mx $31.7 Year Established: 1957 Fleet Type: General Freight (TL, Heavy Equipment) Equipment: 160 Tractors, 60 Trailers

* Source: Primary, Company Information; Secondary, A&A Estimates

Gross Revenue Mexican Motor Carrier Profile (US$ Millions)

Transportes Unidos Tampiqueños S.A. de C.V. Antigua Carretera Tamaulipas Monterrey, Col. Ampliación Villarreal, Altamira, Tamaulipas 89609, México José Reyes Carrillo, CEO Leoncio Zuñiga Ramírez, COO (833) 230-3062 [email protected] $31.6 www.gruporeyes.com.mx

Year Established: 1973 Fleet Type: General Freight (TL, Package, Containers, Chemicals) Equipment: 150 Tractors, 200 Trailers

Autotransportes Rápidos de Aguascalientes Aguascalientes Esq. Valle Gpe 5, Col. Bosques del Prado, Aguascalientes, Aguascalientes 20290, México Ramiro Ponce Guardado, CEO (55) 5310-2363 [email protected] www.trapidosdeaguascalientes.com $31.4

Year Established: 1994 Fleet Type: General Freight (TL, Refrigerated Products, Heavy Machinery) Equipment: 148 Tractors, 50 Trailers

Grupo GOR S.A. de C.V. Carretera a Monterrey Km. 214.5, Fraccionamiento Moderno, Reynosa, Tamaulipas 88710, México Salvador Ruiz, CFO Idalia Yado, Sales (899) 923-0190 [email protected] $31.2 www.grupogor.com.mx

Year Established: 1975 Fleet Type: General Freight (TL, Raw Materials, Industrial Waste, Hazmat) Equipment: 30 Straight Trucks, 137 Tractors, 250 Trailers

* Source: Primary, Company Information; Secondary, A&A Estimates

Gross Revenue Mexican Motor Carrier Profile (US$ Millions)

Transportes Garza Leal S.A. de C.V. Periférico Km 14.5, Lerdo, Durango 35150, México Edelmiro Garza Leal, CEO (871) 175-0614 [email protected] www.tgarzaleal.com $30.6

Year Established: 1989 Fleet Type: Refrigerated Liquids (TL, General Freight, Perishables, Milk) Equipment: 145 Tractors, 217 Trailers (75 reefer, 142 tank)

Transportes Sultana S.A. de C.V. Calle Poniente 146, Col. Industrial Vallejo, D.F. 02300, México Sergio Bahena Mondragón, CEO José Luis Ángeles, Sales (55) 5333-5570 Ext. 1113 $29.5 [email protected] Year Established: 1961 Fleet Type: General Freight (TL, Packages, Textiles) Equipment: 140 Tractors, 450 Trailers

Fletes y Materiales Forsis S.A. de C.V. Autopista Monterrey-Cadereyta Km 32.5, Cadereyta Jiménez, Nuevo León 67451, México Roger Garza Cantu, CEO (828) 284-4444 $29.4 www.forsis.com.mx

Year Established: 1990 Fleet Type: General Freight (LTL, Hazmat, Construction Materials) Equipment: 70 Tractors, 150 Trailers

Autotransportes Dasa S.A. de C.V. Hector Saucedo #1534, Col. Avícola, Saltillo, Coahuila 25230, México Leonardo Davila Salinas, CEO (844) 489-7878 [email protected] $28.6 www.autodasa.com.mx

Year Established: 1981 Fleet Type: General Freight (TL, Auto Parts) Equipment: 230 Tractors, 430 Trailers

* Source: Primary, Company Information; Secondary, A&A Estimates

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