Ross Edwards Market Manager Corn Feed Products

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2. 1 BNSF Volume Growth This chart will give you a clearer picture of this fact…as you can see, over the last 10 years, international has grown at a significantly higher rate than any other segment of BNSF business.This chart will give you a clearer picture of this fact…as you can see, over the last 10 years, international has grown at a significantly higher rate than any other segment of BNSF business.

3. 2 Class 1 Railroad Grain Volume Ransom 2003 Waverly, Mendota, Toluca, Galva 2004 Lowder 2005 Ransom 2003 Waverly, Mendota, Toluca, Galva 2004 Lowder 2005

4. 3 BNSF Ag Volume BNSF’s Agricultural Products volume has grown at a compound annual growth rate of 2 percent since 1997; the bulk of the growth occurred within the last four years. Until very recently, U.S. flour demand has been declining and milling margins have been shrinking. BNSF’s Agricultural Products volume has grown at a compound annual growth rate of 2 percent since 1997; the bulk of the growth occurred within the last four years. Until very recently, U.S. flour demand has been declining and milling margins have been shrinking.

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6. 5 Agricultural ProductsFull Year 2007

7. 6 Rail Deliveries to Port

8. 7 BNSF Ethanol Franchise

9. 8 2008/2009 US DDG Production

10. 9 DDG NET Exports / Imports

11. 10 Strategy: VelocityDevelop Unit Train Programs - DDGS

12. 11 DDG Unit Train Economics One Origin to One Destination 100-car Unit trains have $1000+ rate savings compared to single car traffic. Two Origin to One Destination 100-car Unit Trains have $800+ rate savings compared to single car traffic.

13. 12 Merchandise Network Move

14. 13 Shuttle Move

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16. 15 Highway Congestion, 2000

17. 16 Highway Congestion, 2020 prediction

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19. 18 Now, let’s look at the same corridors and their current capacity levels. This map illustrates the volume-to-capacity ratios expressed in grades for each primary rail corridor based on current train volumes and current capacity. Each color represents a letter grade. The green lines, or service levels A-C, represent areas below practical capacity. The yellow lines, or D corridors, are near practical capacity. Corridors operating at practical capacity are represented by the orange lines. And rail corridors operating above capacity are mapped in red. Eighty-eight percent of today’s primary corridor mileage is operating below practical capacity levels (A-C). Twelve percent is near or at practical capacity (E) and less than 1 percent is operating above capacity (F). Let’s not assume though that just because everything is green, that there is plenty of capacity in the network. Level C accounts for 39 percent of the total, which is approaching capacity. As traffic continues to grow, that 39 percent of the network will be the first lines that will be looked at to increase capacity within the next few years. Now, let’s look at the same corridors and their current capacity levels. This map illustrates the volume-to-capacity ratios expressed in grades for each primary rail corridor based on current train volumes and current capacity. Each color represents a letter grade. The green lines, or service levels A-C, represent areas below practical capacity. The yellow lines, or D corridors, are near practical capacity. Corridors operating at practical capacity are represented by the orange lines. And rail corridors operating above capacity are mapped in red. Eighty-eight percent of today’s primary corridor mileage is operating below practical capacity levels (A-C). Twelve percent is near or at practical capacity (E) and less than 1 percent is operating above capacity (F). Let’s not assume though that just because everything is green, that there is plenty of capacity in the network. Level C accounts for 39 percent of the total, which is approaching capacity. As traffic continues to grow, that 39 percent of the network will be the first lines that will be looked at to increase capacity within the next few years.

20. 19 This is the same map with future corridor volumes compared to current capacity without any capacity improvements to keep up with demand. Again, green lines represent areas below practical capacity, yellow represents corridors near practical capacity, orange is at practical capacity and red is above capacity. In this scenario, 45 percent of the primary corridors will be operating below capacity, 25 percent will be operating near or at capacity and 30 percent will be operating above capacity. It is safe to conclude that without capacity improvements, congestion would affect nearly every region of this country. This is the same map with future corridor volumes compared to current capacity without any capacity improvements to keep up with demand. Again, green lines represent areas below practical capacity, yellow represents corridors near practical capacity, orange is at practical capacity and red is above capacity. In this scenario, 45 percent of the primary corridors will be operating below capacity, 25 percent will be operating near or at capacity and 30 percent will be operating above capacity. It is safe to conclude that without capacity improvements, congestion would affect nearly every region of this country.

21. 20 However, with the right investments in rail infrastructure, we can accommodate future demand. Here’s the same map looking at future freight volumes compared to future train capacity in 2035 with improvements. Ninety-eight percent of the network is in the green, or below practical capacity. Only two percent will be near, at, or below capacity. So how much is needed to ensure the rail network will be able to operate in this scenario? However, with the right investments in rail infrastructure, we can accommodate future demand. Here’s the same map looking at future freight volumes compared to future train capacity in 2035 with improvements. Ninety-eight percent of the network is in the green, or below practical capacity. Only two percent will be near, at, or below capacity. So how much is needed to ensure the rail network will be able to operate in this scenario?

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