A Brief History

2. 1818: Founded in Amsterdam by Johann Peter Bunge 1884: Bunge y Born established in Argentina by grandson, Ernest Bunge 1905: Bunge y Born expanded into Brazil 1923: Bunge North American Grain Corporation founded in New York City to trade raw agricultural commodities 2001: Changed our name to Bunge North America prior to the initial public offering of our parent company, Bunge Limited 2002: Bunge Limited acquired Cereol, which included Central Soya in the United States and CanAmera Foods in Canada A Brief History

3. Corporate Organization • Bunge Limited • Traded on NYSE: BG (IPO: 8/2/2001) • Global Headquarters: White Plains, NY • 22,000 employees • Offices in 32 countries • 2005 Net Sales: $24 Billion

4. Vertically Integrated • World’s leading oilseed processor and seller of bottled oils • Leading miller of wheat in South America and corn in North America • South America’s leading fertilizer producer

5. Bunge North America Bunge North America, Inc., is the North American operating arm of Bunge Limited (NYSE: BG),with facilities in the U.S., Canada and Mexico.

6. Bunge North America

7. Waterways & the U.S. Economy • One in every four acres of U.S. ag production is exported – worth over $60 billion a year. • In 2005, the U.S. exported over 111 million metric tons of grain and oilseed products valued at over $20 billion. • Close to 60 percent of that moves through New Orleans to the Gulf. • Our best natural comparative advantage in ag trade – the Mississippi River and its tributaries!

8. Waterways & the U.S. Economy • The New Orleans Customs District handled $32.4 billion of U.S. exports and $97.3 billion in imports in 2005. • The largest agricultural exports by value passing through these ports were: • $3.3 billion of soybeans (52 percent of total soybean exports) • $2.8 billion of corn (58 percent of total corn exports) • $784 million of wheat (18 percent of total wheat exports)

9. Factors Impacting Barge Freight • Strong demand for both traditional southbound and increased northbound barge traffic • 2003 to 2004: inbound tonnage through New Orleans increased by more than 42 percent. • 2004 to 2005: increased by more than 23 percent. • New demand for northbound movements to interior locations lengthens turn-around times and barge availability for southbound movements of agricultural commodities. • Significant increases in major commodity imports such as crude petroleum and petroleum products; chemicals; sand, gravel and stone; primary manufacturing goods and manufacturing equipment.

10. Factors Impacting Barge Freight • Reduction in the number of barges in the river fleet • 2005 covered hopper barge fleet at 11,300 barges. • 2 percent less than the number of barges available in 2004; 8.9 percent less than 1998. • Low water levels • Naturally occurring • Lack of routine, federal maintenance

11. Factors Impacting Barge Freight • Rail & truck transportation often not viable. • Rail shipping is already at full capacity. • Labor shortage of certified truck drivers. Shipping by barge remains the lowest cost and most overall efficient method of transporting agricultural commodities to export!

12. Global Competitiveness • Value of public infrastructure investments • Foresight of previous generations paying dividends today • Federal government’s role • Multi-state implications • Legal liability for private investors • Absolute neutrality benefits all sectors

13. Global Competitiveness • Freight cost advantage of our waterways system • Many international competitors maintain an overall lower cost of production in commodities such as corn and soybeans. The U.S. makes up the difference through efficient handling and shipping. • Deterioration of our river system and investments in foreign transportation infrastructure has diminished the U.S. freight advantage over global competitors such as Brazil. • Investments in public infrastructure are key to maintaining U.S. competitiveness. • We must renew our commitment to maintaining the entire waterways system.

14. Origination & Destination - “Low-Use” Waterways • Tributary waterways are a vital transportation system linking agricultural production to the Mississippi River system and export markets beyond. • 65 percent of commerce moving on the Mississippi River stems from tributary waterways. • Fewer miles = fewer ton-miles • Tributaries are part of a waterways system. • Nearly 99% of tributary ton-miles derived from traffic moving to or from an origin or destination on another waterway. • Without access to terminals on that tributary waterway, the entire movement and total ton-miles would not occur.

15. The Funding Crisis • Tributaries and other “low-use” waterways have been targeted for budget savings over the years. • The President’s FY ‘04, ‘05, ‘06 & ’07 Budgets completely eliminate funds for Mississippi River tributaries & ports – setting a 1 million ton/1 billion ton-mile threshold. • Consequently, the bases of these channels are rising and their navigability is at risk.

16. Impact on Agriculture • Aging infrastructure and deferred maintenance created by insufficient investment levels will result in • degraded system performance • safety concerns • increased delays • higher transportation costs • negative impacts on GDP and employment

17. Impact on Agriculture • Inability to load barges to full capacity because shallow depths limit navigation. • Direct correspondence to commodity “basis” deterioration • Loss of barge freight = 10¢ to 25¢per bushel lost revenue 500 acres of corn planted = avg trendline yield of 150 bushels/acre 150 bushels/acre = 75,000 bushels of corn Loss of barge transportation = $7,500 to $18,750 lost revenue

18. The Road Ahead • Integrate tributaries & shallow ports into larger campaign to maintain the system. • National Association of Manufacturers (NAM) Coalition • Waterways inclusion in intermodal transportation system • Bridge gap between authorization commitments and appropriations • WRDA final action • Operations & Maintenance appropriations