Transportation & Logistics Industry Update

TRANSPORTATION & LOGISTICS

INDUSTRY UPDATE │ SEPTEMBER 2016

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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 │ SEPTEMBER 2016

WHAT WE’RE READING

CONTENTS LOGISTICS | AUTOMATED TRUCKS, WAREHOUSES SEEN TRANSFORMING . M&A TRANSACTIONS When the future of driverless or autonomous trucks is discussed, the focus tends to . PUBLIC MARKETS OVERVIEW fall on the technology, their effect on drivers, or how they would share highways . STOCK PRICE PERFORMANCE with motorists, and rarely on their impact on warehousing and industrial distribution . OUR GROUP networks. Autonomous trucks are coming, and they will change how warehouses, receiving docks and logistics parks are designed, a report from industrial real estates services firm CBRE Group says. “From CBRE’s point of view, this (autonomous vehicles) will change the kind of buildings we do deals in and where CONTACTS they’ll be located,” David Egan, CBRE’s Head of Industrial & Logistics Research in the Americas. “This is just starting, and it will evolve significantly.” UNITED STATES Journal of Commerce Frank Mountcastle TRUCKING | TRUCKLOADS SURGE ON US SPOT MARKET, BUT NOT RATES Managing Director [email protected] +1 (804) 915-0124 Shipments on the truckload spot market increased year-over-year for the first time since December 2014 in August, led by a 32 percent jump in dry van loads, DAT Jason Bass Solutions said. Spot freight volumes on DAT’s load boards were 11 percent higher Managing Director year-over-year in August. Dry van and refrigerated loads increased, but weak [email protected] industrial markets depressed flatbed freight. Month-to-month, spot market freight +1 (804) 915-0132 volume increased 1.5 percent to the second-highest level this year, DAT said. Dry Joe Conner van spot freight loads rose 8.7 percent from July to August. Spot truck freight rates, Managing Director however, didn’t move in tandem with loads. Compared with August 2015, the [email protected] average line haul rate fell 6.6 percent for vans, the load-board operator said. +1 (804) 915-0151 Jeff Burkett Journal of Commerce Director [email protected] MARINE | HANJIN AIMS TO SELL MORE THAN HALF ITS SHIPS +1 (804) 932-1334 Jershon Jones Debt-ridden Hanjin Shipping Co. is working on a restructuring plan that calls for the Director drastic reduction of its owned fleet and returning the vast majority of the ships it [email protected] charters to their owners, according to people with direct knowledge of the matter. +1 (804) 932-1356 Since Hanjin filed for bankruptcy in Korea in late August, dozens of its ships have Jeff Kidd been denied access to ports around the world due to uncertainty about who Vice President would pay docking fees and container-storage and unloading bills. Those ships are [email protected] carrying half a million containers with cargo valued at more than $14 billion. Some +1 (804) 915-0178 of them have been seized by the company’s creditors. James O’Malley Wall Street Journal Vice President [email protected] RAIL | EXCLUDING COAL, AUGUST CARLOADS DOWN ONLY 1% +1 (804) 915-0165

The Association of American Railroads (AAR) released August monthly figures with this nugget: Exclude coal, and the industry's carloads were down only 1% in August 2016 from August 2015, or 8,703 carloads. Include coal, and traffic in August EUROPE totaled 1,347,989 carloads, down 6.6% or 95,341 carloads from August 2015. U.S. railroads also originated 1,327,274 containers and trailers in August 2016, down 4.8% or 66,889 units from the same month last year. For August 2016, combined U.S. Jeffery Perkins Managing Director carload and intermodal originations were 2,675,263 down 5.7% or 162,230 carloads [email protected] and intermodal units from August 2015. +49 (0) 69 3650638 00 RailwayAge

AIR | DEMAND FOR AIR CARGO STRENGTHENS IN JULY

The International Air Transport Association (IATA) released data for global air freight markets in July 2016 showing robust growth in demand. Measured in freight tonne kilometers (FTKs), demand increased 5.0% in July 2016, compared to July 2015. This was the fastest pace in almost 18 months. Freight capacity measured in available freight tonne kilometers (AFTKs) increased by 5.2% year-on-year, outstripping demand and keeping yields under pressure. IATA www.harriswilliams.com

PAGE | 1 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ SEPTEMBER 2016

M&A TRANSACTIONS

RECENT M&A TRANSACTIONS1,2

Date Sector Target Business Description Acquirer 9/13/2016 Trucking Heidtman Steel Products Provides flatbed trucking services. PS Logistics, LLC Logistics Division

9/7/2016 Logistics LogFire Provides cloud-based warehouse management services. Oracle

9/7/2016* Logistics Nolan Transportation Provides freight brokerage and logistic services. Ridgemont Equity Partners Group

9/2/2016 Logistics Logistics & Distribution Provides distribution and logistics services. ABF Logistics Services LLC

8/31/2016 Logistics APC Logistics Provides freight forwarding and customs brokerage services in C.H. Robinson Australia and New Zealand.

8/30/2016 Logistics ShipXpress Provides cloud-based software solutions that enable corporations to GE Transportation efficiently operate with supply chain partners.

8/18/2016 Logistics Consolidated Provides customized re-distribution services. Lineage Logistics, LLC Distribution Corporation

8/16/2016 Logistics Arpin Military Provides relocation services specializing in household goods moves Tier One Relocation for military personnel.

8/15/2016 Rail Providence and Operates over 163 miles of owned track and 350 miles under track Genesee & Wyoming Inc. Worcester Railroad Co. access agreements in southeastern New England.

8/9/2016* Logistics Blue-Grace Logistics Provides freight and logistic services. Warburg Pincus LLC

8/9/2016 Transportation Premier Trailer Leasing Provides trailer leasing, rental assets and related value-added Redwood Capital Equipment services in the U.S. Investments

8/8/2016 Logistics United Express Services, Provides freight brokerage transportation services. NFI Industries, Inc. Inc.

8/8/2016 Logistics Abbey Logistics Group Provides niche logistics solutions including the transportation of food NorthEdge Capital LLP Ltd. products in liquid and powder tankers across the UK and Northern Europe. 8/5/2016 Rail DBi Services Provides infrastructure maintenance, operations and management Sterling Partners solutions in North America and Europe.

8/4/2016 Trucking Walbon & Co., Inc. Provides assets and operations related to trucking transportation Kottke Trucking, Inc. services.

8/3/2016 Trucking Triumph Transport Provides intermodal, drayage, and related services. Forward Air

8/2/2016 Logistics Transporeon GmbH Operates web platforms for online logistics services. TPG Partner Holdings LP

8/2/2016 Logistics Sandbox Enterprises LLC Provides logistic solutions and technology for the transportation of U.S. Silica Holdings, Inc. proppant used in hydraulic fracturing.

8/1/2016 Logistics Epic Logistics, Inc. Provides LTL, truckload, container delivery, expedited, and air freight EPES Logistics Services, services. Inc. *Denotes minority investment

PAGE | 2 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ SEPTEMBER 2016

PUBLIC MARKETS OVERVIEW

TEV / LTM EBITDA TEV / 2016E EBITDA

Logistics Providers 10.1x Rail & Rail Services 9.3x

Rail & Rail Services 9.3x Logistics Providers 8.0x

Marine 7.5x Marine 7.2x

Transportation Trucking 5.5x 5.9x Equipment Transportation 5.4x Equipment Trucking 5.5x

AVERAGE REVENUE GROWTH (2012 – 2015) AVERAGE REVENUE GROWTH (2015 – 2017P)

Rail & Rail Services 7.2% Logistics Providers 4.7%

Trucking 5.3% Trucking 1.2%

Transportation Logistics Providers 4.7% (0.6%) Equipment

Transportation 3.4% Equipment Marine (5.9%)

Marine (0.0%) Rail & Rail Services (7.0%)

AVERAGE EBITDA GROWTH (2012 – 2015) AVERAGE EBITDA GROWTH (2015 – 2017P)

Transportation 17.0% Logistics Providers 11.3% Equipment

Trucking 15.8% Marine 3.5%

Rail & Rail Services 14.5% Trucking 1.3%

Transportation Logistics Providers 8.5% (3.3%) Equipment

Marine 2.5% Rail & Rail Services (6.5%)

PAGE | 3 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ SEPTEMBER 2016

STOCK PRICE PERFORMANCE

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

Marine 2.1% S&P 500 7.5%

Rail & Rail Services 0.5% Logistics Providers 3.1%

Transportation Equipment 0.2% Rail & Rail Services (1.1%)

Trucking (0.1%) Marine (13.2%)

Logistics Providers (2.5%) Transportation Equipment (17.0%)

S&P 500 (2.7%) Trucking (18.3%)

TRAILING TWELVE MONTHS

(Indexed to September 144h, 2015)

15%

10%

(5%)

(10%)

(15%)

(20%)

(25%)

(30%) Sep-15 Dec-15 Mar-16 Jun-16 Sep-16

Logistics Providers Trucking Rail and Rail Services Marine Transportation Equipment S&P 500 Index

PAGE | 4 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ SEPTEMBER 2016

OUR GROUP

Harris Williams & Co. is a leading advisor to the transportation and logistics M&A market. Our Transportation & Logistics Group serves companies in a broad range of attractive niches, including third-party logistics (3PL), truck, rail, marine and air transportation, transportation equipment, and the automotive and heavy duty vehicle market.

RECENTLY CLOSED T&L TRANSACTIONS

has merged with a portfolio company of a portfolio company of a portfolio company of a portfolio company of

an operating company of has been acquired by has acquired

has been acquired by has been acquired by has been acquired by in a recapitalization by

a portfolio company of and

RCL Services Group

in partnership with a portfolio company of and a portfolio company of a portfolio company of a portfolio company of a portfolio company of has sold and

has been acquired by to has been acquired by has been acquired by has been acquired by has been acquired by

DEEP EXPERIENCE ACROSS T&L SECTORS

THIRD-PARTY LOGISTICS

RAIL & RAIL SERVICES

MARINE TRANSPORTATION

TRANSPORTATION EQUIPMENT

NICHE TRANSPORTATION

AUTOMOTIVE & HEAVY DUTY VEHICLE

AIR TRANSPORTATION

PAGE | 5 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ SEPTEMBER 2016

OUR FIRM

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.

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PAGE | 6 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ SEPTEMBER 2016

PUBLIC COMPARABLES

Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA EBITDA ($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Sep-15 Mar-16 Current 2016E 2017P Transportation & Logistics Logistics Providers Agility Public Warehousing Co. K.S.C. $1,993 $1.53 (4.0%) (19.2%) $1.96 78.1% 8.5x 5.8x 6.5x 6.1x 6.0x Air Transport Services Group, Inc. 1,235 13.41 (5.9%) 52.7% 15.53 86.3% 4.5x 6.2x 6.2x 5.7x 4.7x Atlas Air Worldwide Holdings, Inc. 2,679 37.54 8.2% (6.2%) 57.77 65.0% 6.4x 8.9x 11.9x 6.4x 5.6x C.H. Robinson Worldwide, Inc. 10,392 67.27 (3.5%) (3.2%) 76.10 88.4% 12.8x 12.3x 11.0x 11.0x 10.7x Deutsche Post AG 43,796 30.67 (3.5%) 11.1% 32.70 93.8% 11.4x 12.3x 12.7x 8.0x 7.5x DSV A/S 10,479 49.07 0.2% 34.7% 51.16 95.9% 13.1x 13.6x 18.5x 16.9x 13.9x Echo Global Logistics, Inc 845 23.16 (10.4%) 7.7% 28.49 81.3% 17.6x 16.1x 13.2x 10.7x 9.0x Expeditors International of Washington, Inc. 8,204 50.13 (2.2%) 1.7% 52.58 95.3% 11.8x 10.9x 11.0x 11.1x 10.6x FedEx Corporation 54,820 159.45 (3.7%) 3.5% 169.57 94.0% 9.4x 8.3x 8.9x 6.6x 6.1x Forward Air Corporation 1,393 44.88 (2.1%) 0.2% 50.47 88.9% 11.9x 10.6x 9.8x 9.4x 8.2x Hub Group, Inc. Class A 1,342 39.99 (2.4%) 3.3% 43.51 91.9% 10.0x 8.2x 7.8x 7.9x 7.5x J.B. Hunt Transport Services, Inc. 10,094 80.41 (2.5%) 3.1% 89.43 89.9% 10.1x 10.0x 9.3x 9.2x 8.4x Kuhne & Nagel International AG 16,677 142.81 (0.5%) 10.6% 147.27 97.0% 14.3x 14.9x 15.3x 14.5x 13.8x Landstar System, Inc. 2,733 66.07 (3.2%) (2.9%) 72.97 90.5% 11.4x 10.2x 10.6x 11.1x 10.3x Panalpina Welttransport (Holding) AG 2,960 139.01 (1.7%) 13.8% 146.33 95.0% 13.5x 10.6x 15.0x 16.7x 12.9x Roadrunner Transportation Systems, Inc. 709 8.10 5.7% (62.0%) 21.56 37.6% 9.0x 6.9x 7.7x 6.8x 5.7x Ryder System, Inc. 9,042 65.08 (0.3%) (22.4%) 85.08 76.5% 6.1x 5.2x 5.2x 5.1x 4.7x TransForce Inc. 2,580 20.02 (0.0%) 12.2% 21.45 93.3% 10.1x 8.6x 8.3x 7.9x 7.3x United Parcel Service, Inc. Class B 103,823 106.86 (2.8%) 6.3% 111.83 95.6% 12.1x 10.8x 10.7x 9.9x 9.5x Universal Logistics Holdings, Inc. 583 13.10 (3.9%) (32.7%) 20.35 64.4% 6.8x 6.5x 5.8x 5.9x 5.5x XPO Logistics, Inc. 9,542 33.24 (8.2%) 0.8% 37.94 87.6% NM 17.1x 10.1x 7.5x 6.5x Median (2.5%) 3.1% 89.9% 10.8x 10.2x 10.1x 8.0x 7.5x Trucking ArcBest Corporation $512 $19.20 11.0% (33.8%) $29.72 64.6% 4.0x 3.4x 3.6x 3.8x 3.2x Celadon Group, Inc. 678 8.40 19.3% (53.2%) 18.76 44.8% 8.3x 6.4x 5.7x 5.0x 5.7x Covenant Transportation Group, Inc. Class A 540 18.74 (14.7%) (15.8%) 25.77 72.7% 4.6x 4.3x 4.0x 4.9x 4.5x Heartland Express, Inc. 1,502 18.96 (0.1%) (10.0%) 21.95 86.4% 8.5x 8.1x 8.1x 7.7x 7.4x Knight Transportation, Inc. 2,367 28.66 2.1% 2.8% 30.38 94.3% 8.4x 7.8x 8.6x 8.8x 8.0x Marten Transport, Ltd. 698 21.25 (0.8%) 13.6% 22.27 95.4% 5.1x 5.1x 5.3x 5.1x 4.8x Old Dominion Freight Line, Inc. 5,852 67.69 (2.4%) (1.1%) 72.45 93.4% 9.1x 8.7x 8.6x 8.7x 8.0x P.A.M. Transportation Services, Inc. 259 19.71 5.0% (53.1%) 45.80 43.0% 6.0x 5.5x 4.4x 4.0x 3.8x Saia, Inc. 893 29.47 (0.1%) (19.1%) 36.77 80.1% 6.4x 4.8x 6.1x 5.7x 5.2x Swift Transportation Company Class A 3,862 20.83 11.7% 4.0% 21.12 98.6% 6.7x 5.8x 6.6x 6.6x 6.0x Universal Logistics Holdings, Inc. 583 13.10 (3.9%) (32.7%) 20.35 64.4% 6.8x 6.5x 5.8x 5.9x 5.5x USA Truck, Inc. 228 11.10 (11.0%) (48.8%) 23.25 47.7% 5.0x 4.9x 5.0x 5.7x 4.9x Werner Enterprises, Inc. 1,816 23.30 (0.4%) (17.4%) 28.80 80.9% 6.0x 5.3x 5.2x 5.4x 5.0x YRC Worldwide Inc. 1,123 11.66 3.4% (30.2%) 18.50 63.0% 5.1x 4.4x 4.4x 3.8x 3.3x Median (0.1%) (18.3%) 76.4% 6.2x 5.4x 5.5x 5.5x 5.1x

PAGE | 7 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ SEPTEMBER 2016

PUBLIC COMPARABLES

Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA EBITDA ($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Sep-15 Mar-16 Current 2016E 2017P Transportation & Logistics Rail and Rail Services American Railcar Industries, Inc. $1,117 $38.42 (6.5%) (4.5%) $57.93 66.3% 5.2x 4.5x 4.7x 5.6x 6.4x Canadian National Railway Company 55,409 61.35 (2.9%) 9.4% 66.26 92.6% 10.0x 11.1x 11.2x 11.3x 10.7x Canadian Pacific Railway Limited 28,978 147.06 (0.5%) 0.5% 158.12 93.0% 10.9x 10.9x 12.4x 11.5x 10.8x CSX Corporation 37,282 28.95 3.2% 0.2% 30.53 94.8% 7.7x 7.3x 8.3x 8.3x 7.9x FreightCar America, Inc. 84 13.69 (1.7%) (31.7%) 24.95 54.9% 5.2x 1.3x 1.7x 3.8x 4.0x Genesee & Wyoming, Inc. Class A 5,962 65.75 2.8% (0.3%) 73.33 89.7% 10.3x 9.8x 10.4x 10.5x 9.7x Greenbrier Companies, Inc. 1,302 33.05 4.7% (16.6%) 42.04 78.6% 3.8x 2.1x 2.6x 2.9x 4.4x Kansas City Southern 12,568 92.55 (4.6%) (1.9%) 100.69 91.9% 11.4x 10.8x 11.0x 10.8x 10.0x Norfolk Southern Corporation 36,126 90.67 2.6% 12.6% 98.75 91.8% 7.8x 8.5x 9.0x 8.9x 8.3x Trinity Industries, Inc. 6,146 23.25 0.1% (13.5%) 30.38 76.5% 4.9x 3.6x 4.9x 6.1x 6.8x Union Pacific Corporation 90,920 92.72 0.9% 5.4% 98.28 94.3% 8.3x 8.2x 9.6x 9.8x 9.0x Westinghouse Air Brake Technologies Corporation 6,980 74.44 4.2% (22.2%) 98.76 75.4% 14.7x 11.1x 10.2x 11.1x 10.5x Median 0.5% (1.1%) 90.7% 8.1x 8.3x 9.3x 9.3x 8.7x Marine Aegean Marine Petroleum Network Inc. $1,087 $9.59 16.0% 38.2% $11.41 84.0% 18.1x 11.2x 13.4x 8.2x 7.6x Costamare Inc. 2,054 8.87 (2.8%) (38.8%) 15.10 58.7% 8.3x 6.4x 6.0x 6.5x 6.9x Diana Shipping Inc. 678 2.58 1.2% (58.8%) 7.29 35.4% 19.4x NM NM NM NM Kirby Corporation 3,776 55.55 3.0% (19.4%) 73.25 75.8% 7.5x 7.0x 7.3x 8.7x 8.6x Matson, Inc. 2,088 37.90 3.7% 0.1% 53.18 71.3% 9.0x 7.0x 7.1x 6.9x 6.4x Neptune Orient Lines Limited 5,306 0.95 (1.5%) 59.2% 0.98 97.7% 9.5x 15.7x NM 12.8x 9.2x Nordic American Tankers Limited 1,266 10.19 (16.5%) (30.3%) 17.02 59.9% 9.7x 7.3x 6.3x 7.2x 8.3x Rand Logistics, Inc. 232 0.82 (16.3%) (64.0%) 2.68 30.6% 7.2x 7.7x 7.7x 7.0x NA SEACOR Holdings Inc. 1,486 56.88 4.8% (6.9%) 67.60 84.1% 8.9x 9.4x 11.3x 13.4x 8.7x Wilh. Wilhelmsen ASA 2,073 2.97 24.4% 17.4% 5.55 53.5% 17.5x 14.1x 12.5x 4.8x 5.7x Median 2.1% (13.2%) 65.6% 9.2x 7.7x 7.5x 7.2x 7.9x Transportation Equipment Accuride Corporation $426 $2.54 74.0% (23.0%) $3.40 74.7% 5.6x 4.9x 6.2x 5.9x 6.8x Dana Incorporated 2,972 14.41 4.2% (17.0%) 18.12 79.5% 5.0x 4.3x 4.6x 4.6x 4.5x Gentherm Incorporated 1,114 30.13 (3.6%) (35.8%) 51.71 58.3% 12.3x 9.0x 7.1x 7.5x 6.8x Spartan Motors, Inc. 282 9.19 0.0% 122.5% 9.95 92.4% 10.5x NM NM 15.7x 10.8x Wabash National Corporation 985 13.26 0.2% 12.2% 14.97 88.6% 5.8x 4.4x 3.8x 4.0x 5.2x Median 0.2% (17.0%) 79.5% 5.8x 4.7x 5.4x 5.9x 6.8x

PAGE | 8 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ SEPTEMBER 2016

PUBLIC COMPARABLES

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) 2012 2013 2014 2015 2016E 2017P '12-15 '15-17P 2012 2013 2014 2015 2016E 2017P '12-15 '15-17P Transportation & Logistics Logistics Providers Agility Public Warehousing Co. K.S.C. $5,061 $4,846 $4,767 $4,330 $4,121 $4,177 (5.1%) (1.8%) $258 $289 $276 $292 $325 $332 4.2% 6.6% Air Transport Services Group, Inc. 607 580 590 619 729 794 0.6% 13.2% 157 158 179 198 218 269 8.0% 16.5% Atlas Air Worldwide Holdings, Inc. 1,646 1,657 1,799 1,823 1,881 2,019 3.5% 5.3% 296 292 327 271 391 441 (2.9%) 27.5% C.H. Robinson Worldwide, Inc. 11,359 12,752 13,470 13,476 12,971 13,824 5.9% 1.3% 723 740 805 925 942 971 8.5% 2.5% Deutsche Post AG 71,303 73,132 75,117 65,681 66,098 68,192 (2.7%) 1.9% 3,715 4,013 4,197 2,888 5,489 5,786 (8.1%) 41.6% DSV A/S 7,750 8,137 8,645 7,563 10,232 10,829 (0.8%) 19.7% 530 543 560 532 637 762 0.1% 19.7% Echo Global Logistics, Inc 758 884 1,173 1,512 1,734 2,023 25.9% 15.6% 34 34 44 54 80 91 16.5% 30.0% Expeditors International of Washington, Inc. 5,981 6,080 6,565 6,617 6,049 6,371 3.4% (1.9%) 571 600 644 767 742 773 10.4% 0.3% FedEx Corporation 44,287 45,567 47,453 50,365 60,104 62,432 4.4% 11.3% 5,597 6,033 4,951 6,165 8,212 8,900 3.3% 20.2% Forward Air Corporation 584 652 781 959 989 1,050 18.0% 4.6% 105 109 128 128 152 171 7.0% 15.4% Hub Group, Inc. Class A 3,124 3,374 3,571 3,526 3,526 3,728 4.1% 2.8% 134 137 136 154 170 179 4.8% 7.8% J.B. Hunt Transport Services, Inc. 5,055 5,585 6,165 6,188 6,575 7,181 7.0% 7.7% 759 825 920 1,054 1,105 1,200 11.6% 6.7% Kuhne & Nagel International AG 18,248 18,529 19,118 17,376 20,893 21,639 (1.6%) 11.6% 956 1,028 1,073 1,062 1,160 1,220 3.6% 7.2% Landstar System, Inc. 2,793 2,665 3,185 3,321 3,066 3,255 5.9% (1.0%) 232 203 251 269 247 268 5.1% (0.3%) Panalpina Welttransport (Holding) AG 7,053 7,289 7,327 6,081 5,570 5,786 (4.8%) (2.5%) 102 172 205 199 181 232 24.8% 7.9% Roadrunner Transportation Systems, Inc. 1,073 1,361 1,873 1,995 1,929 2,011 23.0% 0.4% 81 103 125 130 104 124 17.0% (2.3%) Ryder System, Inc. 6,257 6,419 6,639 6,572 6,756 7,057 1.7% 3.6% 1,299 1,361 1,505 1,660 1,808 1,892 8.5% 6.8% TransForce Inc. 3,141 3,018 3,363 3,150 2,958 3,028 0.1% (2.0%) 386 319 372 332 327 351 (4.9%) 2.8% United Parcel Service, Inc. Class B 54,064 55,491 58,256 58,050 60,654 63,584 2.4% 4.7% 3,109 8,765 6,889 9,429 10,507 10,977 44.7% 7.9% Universal Logistics Holdings, Inc. 1,037 1,033 1,192 1,129 1,093 1,117 2.9% (0.5%) 87 123 114 108 100 109 7.4% 0.4% XPO Logistics, Inc. 279 702 2,357 7,623 14,865 15,822 NM NM (25) (17) 92 474 1,268 1,460 NM NM Total $251,461 $259,756 $273,405 $267,955 $292,789 $305,918 4.7% 4.7% $19,107 $25,831 $23,793 $27,092 $34,162 $36,505 8.5% 11.3% Trucking ArcBest Corporation $2,066 $2,300 $2,613 $2,667 $2,644 $2,769 8.9% 1.9% $71 $107 $154 $167 $134 $160 33.0% (2.1%) Celadon Group, Inc. 599 614 742 901 1,065 1,063 14.6% 8.6% 94 99 87 117 132 112 7.7% (2.2%) Covenant Transportation Group, Inc. Class A 674 685 719 724 663 701 2.4% (1.6%) 63 63 89 143 110 119 31.2% (8.7%) Heartland Express, Inc. 546 582 871 736 652 677 10.5% (4.1%) 138 149 208 193 194 202 12.0% 2.3% Knight Transportation, Inc. 936 969 1,102 1,183 1,112 1,194 8.1% 0.5% 193 193 256 281 269 294 13.3% 2.3% Marten Transport, Ltd. 638 659 673 665 662 714 1.4% 3.6% 101 110 115 127 138 144 7.7% 6.8% Old Dominion Freight Line, Inc. 2,110 2,338 2,788 2,972 2,988 3,203 12.1% 3.8% 396 466 606 676 672 733 19.5% 4.1% P.A.M. Transportation Services, Inc. 381 403 411 417 436 463 3.1% 5.4% 41 50 55 63 65 68 15.3% 4.3% Saia, Inc. 1,099 1,139 1,272 1,221 1,207 1,260 3.6% 1.6% 106 125 145 155 156 174 13.5% 5.7% Swift Transportation Company Class A 3,493 4,118 4,299 4,229 4,096 4,276 6.6% 0.6% 528 577 583 611 582 643 5.0% 2.6% Universal Logistics Holdings, Inc. 1,037 1,033 1,192 1,129 1,093 1,117 2.9% (0.5%) 87 123 114 108 100 109 7.4% 0.4% USA Truck, Inc. 512 555 602 508 446 472 (0.3%) (3.6%) 20 41 60 56 40 46 41.6% (8.8%) Werner Enterprises, Inc. 2,036 2,029 2,139 2,094 1,992 2,083 0.9% (0.3%) 318 295 316 370 334 359 5.2% (1.4%) YRC Worldwide Inc. 4,851 4,865 5,069 4,832 4,716 4,869 (0.1%) 0.4% 198 205 197 259 299 333 9.3% 13.5% Total $20,979 $22,289 $24,492 $24,279 $23,772 $24,860 5.3% 1.2% $2,355 $2,603 $2,984 $3,326 $3,224 $3,498 15.8% 1.3%

*Excluded from averages

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PUBLIC COMPARABLES

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) 2012 2013 2014 2015 2016E 2017P '12-15 '15-17P 2012 2013 2014 2015 2016E 2017P '12-15 '15-17P Transportation & Logistics Rail and Rail Services American Railcar Industries, Inc. $712 $751 $733 $889 $628 $540 7.7% (22.1%) $146 $179 $204 $273 $201 $175 23.2% (19.9%) Canadian National Railway Company 9,923 10,263 10,986 9,857 9,088 9,570 (0.2%) (1.5%) 4,611 4,710 5,137 5,021 4,913 5,169 2.9% 1.5% Canadian Pacific Railway Limited 5,697 5,952 5,994 5,246 4,848 5,117 (2.7%) (1.2%) 1,800 2,340 2,640 2,431 2,517 2,688 10.5% 5.2% CSX Corporation 11,756 12,026 12,669 11,811 10,803 11,268 0.2% (2.3%) 4,422 4,534 4,764 4,792 4,489 4,756 2.7% (0.4%) FreightCar America, Inc. 677 290 599 773 541 462 4.5% (22.7%) 41 (4) 17 51 21 22 7.9% (34.2%) Genesee & Wyoming, Inc. Class A 875 1,569 1,639 2,000 1,975 2,050 31.7% 1.2% 277 533 579 586 567 608 28.4% 1.9% Greenbrier Companies, Inc. 1,812 1,755 2,203 2,605 2,701 2,074 12.9% (10.8%) 157 143 237 430 462 294 40.0% (17.3%) Kansas City Southern 2,239 2,369 2,577 2,419 2,341 2,502 2.6% 1.7% 872 962 1,106 1,098 1,165 1,263 8.0% 7.2% Norfolk Southern Corporation 11,040 11,245 11,624 10,511 9,868 10,353 (1.6%) (0.8%) 4,040 4,173 4,526 3,938 4,065 4,338 (0.8%) 5.0% Trinity Industries, Inc. 3,812 4,365 6,170 6,393 4,742 4,149 18.8% (19.4%) 730 963 1,402 1,528 998 890 27.9% (23.7%) Union Pacific Corporation 20,926 21,963 23,988 21,813 19,832 20,843 1.4% (2.2%) 8,505 9,223 10,657 10,064 9,346 10,032 5.8% (0.2%) Westinghouse Air Brake Technologies Corporation 2,391 2,566 3,044 3,308 2,971 3,058 11.4% (3.8%) 436 489 588 701 625 653 17.1% (3.4%) Total $71,860 $75,115 $82,227 $77,625 $70,339 $71,986 7.2% (7.0%) $26,035 $28,243 $31,857 $30,912 $29,369 $30,889 14.5% (6.5%) Marine Aegean Marine Petroleum Network Inc. $7,259 $6,335 $6,662 $4,232 $3,917 $4,588 (16.5%) 4.1% $102 $84 $54 $81 $137 $141 (7.5%) 31.9% Costamare Inc. 386 414 484 490 458 439 8.3% (5.4%) 246 267 330 325 318 303 9.8% (3.5%) Diana Shipping Inc. 221 164 176 158 102 137 (10.6%) (6.9%) 121 55 52 28 (17) 6 (38.5%) (52.5%) Kirby Corporation 2,113 2,242 2,566 2,148 1,719 1,738 0.5% (10.0%) 507 582 646 573 431 434 4.2% (13.0%) Matson, Inc. 1,560 1,637 1,714 1,885 1,956 2,045 6.5% 4.2% 175 182 203 298 298 330 19.5% 5.4% Neptune Orient Lines Limited 9,512 8,831 8,617 5,383 NA NA (17.3%) NA 93 144 353 321 416 579 51.2% 34.3% Nordic American Tankers Limited 131 244 351 446 265 269 50.5% (22.4%) 13 (7) 74 211 173 166 NM (11.2%) Rand Logistics, Inc. 157 156 153 148 116 NA (1.8%) NA 28 33 34 32 33 NA 4.5% NA SEACOR Holdings Inc. 1,581 1,247 1,319 1,055 848 947 (12.6%) (5.2%) 235 197 245 150 106 154 (14.0%) 1.5% Wilh. Wilhelmsen ASA 395 325 285 313 2,158 2,221 (7.5%) NM 226 170 134 186 338 357 (6.3%) 38.5% Total $23,314 $21,595 $22,327 $16,257 $11,538 $12,384 (0.0%) (5.9%) $1,747 $1,706 $2,125 $2,205 $2,234 $2,471 2.5% 3.5% Transportation Equipment Accuride Corporation $930 $643 $705 $686 $617 $607 (9.7%) (5.9%) $50 $43 $75 $77 $72 $62 15.6% (9.7%) Dana Incorporated 7,224 6,769 6,617 6,060 5,791 5,956 (5.7%) (0.9%) 753 706 705 654 640 659 (4.6%) 0.4% Gentherm Incorporated 555 662 812 856 935 1,013 15.6% 8.7% 68 83 135 155 151 165 31.4% 3.2% Spartan Motors, Inc. 471 470 507 550 587 604 5.4% 4.8% 16 6 10 0 18 26 NM NM Wabash National Corporation 1,462 1,636 1,863 2,027 1,862 1,645 11.5% (9.9%) 110 142 161 219 247 190 25.7% (7.0%) Total $10,641 $10,179 $10,504 $10,180 $9,791 $9,824 3.4% (0.6%) $997 $981 $1,086 $1,105 $1,128 $1,103 17.0% (3.3%)

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TRANSPORTATION & LOGISTICS

SOURCES

1. FactSet.

2. MergerMarket.

3. Pitchbook.

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