Transportation OverviewSeptember 9, 2013

Costco Today

• 2nd Largest U.S. retailer*

• 7th Largest retailer in the world

• 24th Largest in Fortune 500

• $44+ Billion market cap

*Based on worldwide sales

Costco Today

• Sales $100B (LTM)

• 88M+ Sq. Ft. (143K / whse.)

• 173K employees worldwide

• >2M transactions / day

Warehouse Locations

• 632 Worldwide–9 Countries

• 448 in U.S.

• 29 in WA state

U.S. Annual Shipment Volumes

• Inbound Truckloads 1,075,000– 20% shipped freight collect, 80%

shipped prepaid by vendors

• Outbound Truckloads 450,000• Import Containers (FEU’s) 49,000• Export Containers (FEU’s) 24,000• LTL Shipments 487,000• Small Parcel 9,400,000

U.S. Distribution Network(Outbound)

• 11 cross-dock facilities• 450,000 outbound loads shipped annually• All loads received and shipped same day– 70% received at selling location same evening

• Utilize heavy haul equipment when possible–WA, OR, UT, ID, MT, CO, FL

• Private fleet utilized at 6 distribution centers

Washington State Shipments

• Inbound Truckload– Over the Road 16,000• 30% shipped to/from California (I-5)

– Intermodal 6,000

– Import Containers 6,000

– Export Containers 2,000

Outbound from Sumner, WA

• Truckload– 53,000 truckloads shipped

– 48,000 loads shipped OTR to WA, ID & OR• 22,000 loads shipped via Costco Fleet

– 5,000 ocean loads shipped to AK

Locations serviced by Sumner, WA

Federal Challenges

• 80,000lb. GVW Limitation• Limited access to use LCV’s• Hours of Service• CSA

Washington State Challenges

• Ports– Infrastructure– Road conditions– Port access (Seattle)– Construction (Seattle)– Lack of PM hours of operation– Labor

Washington State Challenges

• Highway infrastructure– Traffic congestion– Emergency conditions• Flooding, Pass closures

– Tolls– Bridge conditions– SR-167

Questions?