CLEAN PORTS - GREEN PORTS

A DRAYAGE CARRIER PERSPECTIVE

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PURPOSE The purpose of this document is to outline a strategy and specific steps to implemented in order to achieve our environmental objectives OUR GOALS As a drayage carrier we have two primary goals with regard to transportation activities at the ports and rail ramp facilities within our operating area.

1. Improve air quality, by reducing greenhouse gasses, in the Port areas and rail ramp areas, in particular and in the outlying areas, in general.

2. Reduce congestion in the port areas and in the rail ramp areas by reducing

the number of vehicles needed to service the shipping public. WHO WE ARE The Evans Network of Companies is comprised of seven affiliated companies providing truck transportation services in the forty-eight contiguous states. The Evans Network was founded in 1939 in Pottsville, Pennsylvania by Albert L. Evans, Sr. The company is owned an operated by Albert L. Evans, Jr. Here are some operating statistics for calendar year 2008

$230,000,000 Revenue Billed 301,000 Container Drayage Shipments 149,000 LTL Shipments 41,000 Van Truckload Shipments

1,400 Tractors 500 Dry Van Trailers 76 Operating Service Centers

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SERVICE CENTER LOCATIONS

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ENVIRONMENTAL ISSUES The container drayage industry is largely handled by independent contractor fleets. It is a highly competitive and price driven business. As a result, the independent contractors, for the most part, purchase second hand equipment after it has served its initial life with a larger over-the-road carrier. The following are the EPA heavy duty engine standards starting with model year 1984.

Model Year EPA NOx Standards

EPA Particulate Matter (PM) standards

2007 0.2 PM .01 2004 2.4 PM .10 1998 4.0 PM .10 1994 5.0 PM .10 1991 5.0 PM .25 1984 10.7 PM .60

* US EPA heavy duty engine standards - Port Authority of NYNJ Publication The Evans independent contractor fleet is no exception to the prevailing age distribution. The following table shows the percentage of the independent contractor fleet by model year and indicates the number of tractors which fall in to the respective EPA Heavy Duty Engine Standards.

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WHAT WE HAVE DONE Company Owned Tractor Fleet In 2008, we implemented a number of strategies aimed to reduce fuel consumption and improve overall efficiencies. These included the following:

• All engine Electronic Control Modules (ECM) were reset to limit road speed to 65 MPH.

• Engine idling was reduced to a five minute “hard” limit. A program to measure and monitor idling time was implemented.

• A driver training program was implemented to improve driving skills with regard to fuel efficiency.

• All tractors were fitted with ESPAR® cab heaters to reduce the need for engine idling while loading, unloading or at rest stops.

• A comprehensive tire management system was implemented to insure proper inflation.

• A program to install Anderson ECO-flaps® on company owned vehicles was initiated.

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• A program to install additional aero dynamic tractor fairing was implemented. • Expanded the use of Idle-Aire® services at truck stops. • Reduced the amount of deadhead miles by better load matching.

Independent Contractor Tractor Fleet In addition to the steps we took with the company owned fleet, we initiated programs specifically directed to the independent contractor fleet.

• Evans committed to spend up to $100,000, in matching funds, per port to implement emission reduction technologies with respect to the independent contractor fleet.

• Searched for an emission reduction technology which would provide an effective yet feasible solution in reducing greenhouse gas emissions in and around the ports.

• Identified the Donaldson Company’s Diesel Multistage Filter as the best available technology for our application.

• Partnered with the Port of Virginia and the Hampton Roads Clean Cities Coalition to install up to thirty DMFs on independent contractor’s tractors (1998 & newer) where Evans would match fifty percent of the cost, up to $100,000.

• Purchased Donaldson Data Loggers in order to perform on-site testing of independent contractor’s tractors so that we could verify the effectiveness of the technology.

• Purchased the first ten DMFs and began the installation phase, in Virginia. • Partnered with the South Carolina Ports to provide matching funds to install up

to sixty Donaldson DMFs in the Port of Charleston. This program is scheduled to begin in July. Evans will fund up to $100,000 for this project.

• Implemented a program of awarding ESPAR® Cab Heaters to independent contractors as safe driving awards.

IMPORT-EXPORT LOAD MATCHING According to the American Association of Port Authorities statistics North American ports handled 21,984,659 containers in 2007. Most of these containers were transported on a “round-trip” basis and very few import shipments were matched with export shipments. We believe that this represents an excellent opportunity for not only improving air quality in general, but reducing highway congestion as well. While it is generally held that matching import and export shipments is too difficult, our belief is that these difficulties can be overcome.

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Based on our own internal estimates we found that by matching just fifty percent of the available loads could result in a savings in diesel fuel consumed of approximately 350,000,000 gallons annually. That’s almost 1,000,000 gallons per day. This is, in fact, a complex process and there are a number of key elements involved. The following chart graphically illustrates the components of load matching.

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EXPORT CONTAINER AND LOAD OPTIMIZATION Based upon the need to optimize export loads and containers we named this program Export Container Optimization and Matching or ECO-MATCH™.

We have discussed this concept and program with a number of steamship lines, importers, exporters and forwarders. Up to this point, our discussions have met with mixed results. The importers, exporters and forwarders react positively while the steamship lines are not overly receptive. Many of the steamship lines conduct their business in a certain manner and our slow to change to meet the needs of a comprehensive import-export load program. However we firmly believe that this is an opportunity for the industry. By way of example, based on our own records, we looked at specific traffic lanes originating and terminating in the Port of Charleston, South Carolina.

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Our records indicated that, during a twelve month period, Evans Delivery Company transported 5,380 import loads and 3,786 export loads between the Port and three specific destination areas (Atlanta, Spartanburg and Charlotte). A match of seventy-five percent of these shipments would produce a savings of 242,691 gallons of diesel fuel and nearly 3,000 trips to the Port. FUTURE STEPS TO BE TAKEN

• Continue retro fitting independent contractor’s tractors with emission reduction technology.

• Pursue the ECO-MATCH™ program and promote the efficient use of transportation resources.

• Develop and implement a program designed to eliminate and replace the oldest, heaviest polluting, independent contractor tractors from port operations.

• Explore and develop anti-idling practices in port operations, shipper locations and importer locations.

SMARTWAY There are a number of areas where we need assistance from SmartWay. These include: Having the drayage transportation segment of the supply chain become part of SmartWay. Create awareness among the SmartWay Shipper Partners to encourage the use of SmartWay Drayage Carriers. Work with Port, Marine Terminal and Rail Ramp Facility operators to improve terminal processes in order to expedite transportation and reduce air pollution and congestion.