EFTA01371093

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 26.1 M 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%). f - Sane tialsch• &RR Meacomon Meek•• n Rita* (Mat Figure 14: North American hail traffic originations by Figure 15: North American rail traffic by type (excountry intermodal) • U.S. Carloads • Canada Carloads Mexico Carloads Other 4% Nonmetallic minerals 13% Autos & parts 7% Metallic ores & metals 8% Forest products 4% Sams Evuradrio Set MR & Food Products 16% Chem F & Petroleum 17% 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 one fifth of revenues for the rails. j Figure 16: North American revenue contribution by type i1/4„....._,.... ,.,. , rat:, rtv.,Pil Socom (cowry team Metal CR OW CDC KSU, USG UNF1 r Other 4% Page 10 Deutsche Bank Securities Inc. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL DB-SDNY-0064280 SDNY_GM_00210464 EFTA01371093