Southeast Association of Rail Shippers Intermodal Perspective

Don Ingersoll Vice President of Transportation XPO Today: A Top Ten Global Leader

XPO provides cutting-edge supply chain solutions to the most successful companies in the world #2 contract logistics provider worldwide by square footage #2 freight brokerage firm worldwide by net revenue #1 last mile logistics provider for heavy goods in North America #1 manager of expedited shipments in North America #3 provider of intermodal in North America Largest owned fleet in Europe Largest platform for outsourced e-fulfillment in Europe Growing presence in global freight forwarding

Source: Industry publications and company filings

2 | Intermodal Perspective XPO’s Combined Revenue

By Line of Business By Country of Operation

Other 12% LTL 25% Spain Contract 4% United States Logistics 61% 34%

UK 10%

Global Forwarding 3%

FTL France 9% 13%

Freight Brokerage 29%

Note: Freight Brokerage includes truck brokerage, intermodal, last mile and expedite Pro-forma for the Con-way acquisition, trailing 12 months as of June 30, 2015 Sources: Con-way company data and XPO company data 3 | Intermodal Perspective Intermodal

Third largest intermodal provider in North America

Approximately 11,500 53’ containers under XPO’s control, and access to another 65,000 EMP and UMAX 53-ft. containers Over 50,000 units in our small box program Service at more than 80 ramps, and a drayage presence at every key port Long-term rail agreements in place 30 years’ experience in cross-border Mexico intermodal Cross-docking and transloading

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

Source: Company filings

4 | Intermodal Perspective Drayage

One of the largest and safest drayage operations in North America

National network capacity of more than 2,200 independent drayage owner operators – Access to over 25,000 additional drayage trucks 42 terminals with yard storage and 10 empty lifts – Container yards equipped with electric guard dog fencing Hazmat and tank-endorsed drivers C-TPAT and Smart-way Partner

Top ten drayage customers served for over 19 years

Source: Company information

5 | Intermodal Perspective Intermodal Locations

6 | Intermodal Perspective Why Intermodal?

• Cost Savings

Double Stack Efficiency FSC Reduction

• Consistent Capacity

OTR Trucking Alternative Surge Ability Railroad Infrastructure

• Sustainability

Carbon Footprint Savings 1 Train = 280 Trucks Traffic Congestion Reduction

7 | Intermodal Perspective Intermodal Volume Growth

8 | Intermodal Perspective Current Challenges

9 | Intermodal Perspective Intermodal Train Speeds

Source: AAR 10 | Intermodal Perspective Terminal Dwell

Source: AAR 11 | Intermodal Perspective Path to Recovery

The problems could not be solved overnight

Crews (6-9 months)

Locomotives (12 months)

Freight Cars (12 months)

Terminals (18-36 months)

Track Capacity (18-36 months)

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

12 | Intermodal Perspective Shifting Truck Driver Demographics

Source: American Transportation Research Institute 13 | Intermodal Perspective Attracting and Retaining Drivers

There is No Silver Bullet

True Safety Focus

Drivers Must Feel Valued

– Local Relationships – Quality Facilities – Discount Programs Consistent Utilization

– Attractive Business/Lanes – Home Time – Flexible Appointments Competitive Rates

14 | Intermodal Perspective Source: Journal of Commerce Container and Chassis Capacity

Container

• Variability in rail service has resulted longer terminal dwell

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

• Overall volume increases consuming more capacity

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

Chassis

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

• Misalignment of chassis demand and supply

• Steamship lines leaving chassis ownership

• Challenges with pool chassis maintenance

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

15 | Intermodal Perspective Tailwinds for the Southeast

Shifting Demographics to Population Change in U.S. States 2010 to 2013 Southern States

West Coast Port Issues

Port Diversification

Panama Canal Expansion

Eastern Ports Infrastructure Improvements

Near Sourcing Trend

16 | Intermodal Perspective Thank You

17 | Intermodal Perspective