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BIOFUELS DISTRIBUTION Tom Lynch NTTC Vice President and General Counsel

BIOFUELS DISTRIBUTION Tom Lynch NTTC Vice President and General Counsel. Introduction. National Tank Truck Carriers, Inc. (NTTC): Represents approximately 210 for-hire bulk highway carriers Transporting hazardous cargoes, food products, and dry bulk.

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BIOFUELS DISTRIBUTION Tom Lynch NTTC Vice President and General Counsel

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  1. BIOFUELS DISTRIBUTION Tom Lynch NTTC Vice President and General Counsel

  2. Introduction • National Tank Truck Carriers, Inc. (NTTC): • Represents approximately 210 for-hire bulk highway carriers • Transporting hazardous cargoes, food products, and dry bulk

  3. NTTC MEMBERS OPERATE (source: NTTC Equipment Survey, 2003) • More than 10,000 fuel delivery trailers • More than 26,000 chemical trailers • Approximately 2,200 compressed gas trailers • Almost 10,000 dry bulk trailers • Approximately 6,600 “non-spec” trailers

  4. The For-Hire Bulk Highway Industry

  5. KEY ISSUES • Burgeoning and Volatile Marketplaces • Biodiesel • Ethanol • No pipelines • Tank truck Transportation is Critical (Along with that of Rail and Barge)

  6. KEY TANK TRUCK ISSUES • Driver Shortage • Equipment Shortage • Delivery Window

  7. KEY TANK TRUCK ISSUES • Driver Shortage (compounded by hazardous cargo requirements i.e. Ethanol) • Hours of Service • Hazardous Materials Endorsement and other Federal Background Checks • FAST • TWIC

  8. 2. Equipment Shortage The Aluminum Associations, Inc. reported that the aluminum market experienced a growth rate of approximately 100 percent during the 1990s, with passenger cars responsible for most of the increase.(source: Aluminum Associations, Inc. Alcoa Announces Price Increase for Aluminum PowderPITTSBURGH -- June 5, 2007: Alcoa has experienced significant aluminum powder cost increases… (source: ALCOA website) Cutbacks Are Set to Lift Cost of Aluminum BUSINESS ASIA By Bloomberg27 December 2005, 12:00 CST By Tan Hwee Ann Aluminum prices may rise for a fourth year because of a combination of increasing demand and a shortage of smelters to make the metal…(source: International Herald Tribune) KEY TANK TRUCK ISSUES

  9. KEY TANK TRUCK ISSUES 2. Equipment Shortage (source: Report on THERMEX QST for Financial Year 2006-07)

  10. KEY TANK TRUCK ISSUES 3. Timeliness/Delivery Window • Especially with Ethanol, Customers Chase Production and Shop Price • Challenge of out-of-route deliveries due to volatility of markets • Historically, easier to load ethanol tank trucks from barges than rail cars

  11. MOTOR CARRIER CONCERNS • ISSUE: Increasing patchwork quilt of state boutique biodiesel mandates. (see e.g. Minnesota) • NEED: Uniformity – a federal biodiesel mandate. • Quality Standards • Labeling to deal with different grades of biodiesel

  12. www.tanktruck.org 703/838-1960 BIOFUELS DISTRIBUTION

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