EFTA01371093.pdf

31 October 2017 Railroads Canadian Rails North American Railroads The North American rail industry is made up of seven Class I rail operators, which are defined as having annual revenues of at least 8250M or more in 1991 dollars, or about $475M in current terms, who operate roughly 140,000 of track miles across the continent. In addition, there are over 20 regional railroads and 50O local railroads. Total rail volumes in North America last year totaled roughly 35 million carloads (including intermodal) with 26.1M originating in the U.S. (76%), 6.8M in Canada (20%), and I.3M in Mexico (4%). The largest contributor to North American rail volumes comes from Intermodal (50%), followed by coal (13%) and agricultural products (9%). fFigure 14: North American hail traffic originations by country Figure 15: North American rail traffic by type (ex- intermodal) - Other 4% & Food Products Nonmetallic minerals 16% ChemF & 13% • U.S. Carloads Petroleum 17% • Canada Carloads Autos & parts 7% Mexico Carloads Metallic ores & metals 8% Forest products 4% Sane tialsch• &RR Meacomon Meek••nRita* (Mat Sams Evuradrio Set MR The carload breakdown, however, doesn't tell us the full story. While Intermodal volumes make up roughly half of North American rail carloads, it makes up just i1/4„,,....._,.... one fifth of revenues for the rails. ,.,....,, ,. j Figure 16: North American revenue contribution by type , rat:, rtv.,Pil r Other 4% Socom (cowryteamMetal CR OW CDC KSU, USG UNF1 Page 10 Deutsche Bank Securities Inc. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0064280 CONFIDENTIAL SDNY_GM_00210464 EFTA01371093