U.S. Mexico Chamber of Commerce – Mid America Chapter

October 18th - Southfield, MI

U.S. MEXICO RAIL TRANSBORDER TRAFFIC OVERVIEWU.S. MEXICO RAIL TRANSBORDER TRAFFIC OVERVIEW

Cumulative, 40 Weeks - US Rail Traffic Ending October 6:

2012 2011 ChangeCarloads 11,325,845 11,633,099 -2.60%Intermodal 9,462,377 9,123,282 3.70%

(Top Commodities Shipped Coal, Chemicals & Grain)

Cumulative, 40 Weeks - MX Rail Traffic Ending October 6:

2012 2011 ChangeCarloads 574,395 573,825 0.10%Intermodal 396,116 335,428 18.10%

(Top Commodities Vehicles/Parts, Stone/Clay/Glass & Metallic Ores) Source AAR

Mexico's Railway Network Carried Record 108 million Tonnes in 2011, of Which 6.9 Million was IM. (Freight Volumes Increased Over 100% Since Privatization)

Rail Carries About 42 Percent of Freight in US, But Only 26 Percent in Mexico.Great Deal of Growth Potential Still Untapped.

Rail Offers Better Security on Freight Goods. Customer Claims Due to Theft, Vandalism or Damage Account for Only .02 of total shipments.

U.S. / Mexico Rail Traffic Overview

UP and BN

CSX and NS

CN and CP

FXE and KCSM

KCS

CGR

0

5

10

15

20

25

30

2006 2007 2008 2009 2010 2011

Laredo, TX

Eagle Pass, TX

Nogales, AZ

El Paso, TX

U.S.Trade With Mexico by Top Rail Ports:2006 – 2011

Value in Billions of U.S. Dollars

Source: BTS Transborder Surface Freight Data

Rail Service from Detroit to MX

Origin Destination Transit

Detroit Monterrey 8 days

Detroit San Luis Potosi 9 days

Detroit Mexico City 10 days

“For shipments over 1,000 miles, using intermodal transport cuts fuel use

and greenhouse gas emissions by 65%, relative to truck alone.”

U.S. Environmental Protection Agency

“For shipments over 1,000 miles, using intermodal transport cuts fuel use

and greenhouse gas emissions by 65%, relative to truck alone.”

U.S. Environmental Protection Agency

In 2011, U.S. freight railroads moved a ton of freight an average of 469 miles per gallon of fuel. Source: AARIn 2011, U.S. freight railroads moved a ton of freight an average of 469 miles per gallon of fuel. Source: AAR

Railroads: The Green Option

AutomotiveDistributionCenter

Rail Bargeand Ferry

Warehousing Customs andTransportationManagement

FreightForwarding

GroundTransportation

Door to Door

Supply Chain Solutions

In Summary

Respond quickly to changing markets

Continue to make innovative investments

Listen to customers’ broader transportation needs and

launch new solutions