Improving Efficiency, Reducing Environmental Impact, and Enhancing Safety through Chassis Management

1. Implementing Greater Efficiency, Environmental Impact Reduction and Improvements in Safety through Improving our Chassis Management Process

2. Content of Presentation • Overview of Direct Chassis Link Model • Benefits to Industry (Efficient Operations, Environmental Benefits and Safety Benefits)

3. Overview of Model - Basic “Mechanics” • Truckers establish a commercial relationship with Direct Chassis Link • Truckers establish a chassis interchange contract with Direct Chassis Link which can be obtained on the website www.chassislink.com • Once in place, truckers are free to obtain chassis for use. No appointments are required for pick up or return of chassis • At this time the main chassis pool location is Port Elizabeth, Berth 88, with additional locations posted on a daily basis (e.g., Ironbound, Croxton/NS) • Chassis use is based on a fee per day charge billed biweekly by DCLI • Numerous other competitive leasing alternatives for truckers

4. Overview of Model - Background and Objectives • The basis for the changes to the previous chassis management process is rooted in the following needs and core missions of our company: • Increase efficiency and simplicity for our customers, our business partners, and us collectively • Drive out avoidable cost • Reduce the size of our environmental footprint • Improve the safety of our operations for our staff, and those who engage in business with us • Introduce and implement changes to business processes that benefit our customers (i.e., truckers, terminals) • Implement best practices used elsewhere in the world that are not widely utilized in US to improve container transport operations

5. Benefits to Industry - Efficiency and Simplicity for Terminals • All users of services in NY/NJ have access to chassis for use from a common pool of equipment - creating efficiency and convenience • Less storage of chassis on terminals frees up space for more efficient terminal operations • Efficient Terminals will have improved gate times and a positive effect on Trucker’s Hours of Service.

6. Benefits To Drayage Companies under Chassis-Owning IEP Model • Drayage Companies Avoid • Fleet Capital Expense • Cost of Land, Yard Space • Positioning Costs • Off Peak Storage • Insurance Costs • Maintenance Costs • Offhire Costs • Functions are responsibility of the Chassis owning IEP • Truckers concentrate on core business, not equipment management

7. Efficiency and Simplicity – Benefits to Truckers Trucking efficiencies - • Truckers can reduce time picking up chassis • Truckers who have their own chassis (i.e., owned or from this pool) can get containers faster • The chassis can be used for multiple purposes at the terminal, eliminating the need to have to wait in different lines for different purposes, constantly getting new equipment • We believe that efficiencies will allow for increased daily turns and earnings for truckers • This is borne out by statements received from the industry

8. Environmental Benefits US Environmental Protection Agency (EPA) recommends common chassis approach More efficient operations save fuel and reduce air emissions • Less idling • Less creeping • Fewer trips to get and drop chassis

9. Environmental Benefits - continued • Reducing fuel use reduces air emissions of • Carbon dioxide CO2 is a greenhouse gas • Fine particles PM has health effects • Nitrogen oxides NOx has health effects and contributes to ground-level ozone • Emissions reductions*: • 2 to 4% in port areas (5 mile radius) * Using US EPA DrayFLEET model

10. Estimated emissions reductions per year:Based on US EPA DrayFLEET model and EPA Greenhouse Gas Equivalencies Calculator

11. CO2 Emissions reduction equivalents Based on US EPA DrayFLEET model and EPA Greenhouse Gas Equivalencies Calculator • DCLI program could reduce the drayage carbon footprint in NY-NJ by at least 850 tons per year • Equivalent to Carbon sequestered by over 20,000 tree seedlings grown for 10 years • Carbon sequestered annually by over 180 acres of pine or fir forests • When implemented nationally, CO2 reductions are estimated to be over 4,000 tons. • Equivalent to Carbon sequestered by 100,000 tree seedlings grown for 10 years • Carbon sequestered annually by almost 900 acres of pine or fir forests • If all drayage nationally switched to this model, the Carbon footprint of drayage (CO2 emissions) would be reduced by 50,000 to 70,000 tons. • Equivalent to carbon dioxide used by over a million tree seedlings grown for 10 years, or the carbon sequestered annually by over 10,000 acres of pine or fir forests • Equivalent to saving over 5 million gallons of gasoline

12. Truck CO2 emissions Fuel a truck with 2 drums of diesel (110 gal or 760 lbs) Truck travels600 – 900 miles Generates 1 ton CO2 How much is a ton of CO2? or or = .6m 1m 1m Block of dry ice about the size of a file cabinet Fills an average 1400 sq ft house Fills about 8 containers

13. The new chassis fleet business model will improve safety by Reducing wear and tear on the equipment Fewer connects/disconnects Less congestion on/near the terminals No hunting for chassis Fewer chassis stored on terminal Better traffic flow Maintenance practices will not change Continued care for equipment condition and preventive maintenance Safety Benefits

14. 11 WEEK OVERVIEW UPDATE • 740+ Drayage Firms in the Northeast and Ohio Valley have already registered and signed our interchange contract • No disruption in service experienced at any of our operating terminals or in our customer’s supply chain • Marine & Rail Facilities very pleased with the initiative and support a national neutral chassis pool • Contacted by several Port Authorities (lsa/lgb/sea/tac) interested in a similar model in their region • Over 150 chassis a week have been used by draymen for non-ML/SAF activity which indicates the efficiency that we wanted to create • Draymen have suggested the DCLI model benefits Hours of Service efficiencies. DCLI model may be a positive benefit to drayage community if current HOS is rolled back by Administration in 2010.

15. As a Customer of Direct Chassis Link • Benefits as a Customer of Direct Chassis Link include the following: • Reduction in costs by reducing costs incidental to procuring chassis for single or multiple pick ups and deliveries • Reduction in costs by utilizing chassis maintained under Direct Chassis Link’s world-class maintenance and repair capability • Build and maintain a strong relationship with Direct Chassis Link at all levels of customer service and response to equipment quality concerns.

16. Thank you