Kasgro Rail Corporation121 Rundle RoadNew Castle, PA 16102Ken Heydorn, Vice President – Sales630-235-7716

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Harry KettermanOctober 1, 2014

Welcome

“We are dedicated to providing the highest quality product available in the industry. We thank you for the confidence you have in Kasgro and we are honored for the opportunity to serve

you.”

Joseph S. Crawford, Jr.President and CEO

Kasgro History1950 Garret Company is founded as a railcar repair shop.

1984 Garret (along with Gabe Kassab as VP Operations) become an AAR certified new car builder.

1985 Garret designs and builds new trolley cars for City of Galveston.

1986 W.H. Miner acquires Garret.

1989 Itel Rail Corporation acquires W.H. Miner.

1993 Gabe Kassab acquires Itel New Castle facility and renames company Kasgro Rail.

1999 Kasgro acquires Union Pacific and CSX Railroad heavy-duty railcar fleet.

2000 Kasgro is sold and Joseph Crawford becomes President and CEO.

2001 Kasgro acquires Burlington Northern Santa Fe Railroad heavy-duty railcar fleet.

2003 Kasgro maintains largest North American fleet of heavy-duty railcars.

2003 Kasgro begins to build standard type railcars in addition to heavy-duty railcars.

Kasgro History Continued

2007 Kasgro receives order to design and test a M-290 railcar to meet “AAR” standard S-2043, “Performance Specification for Trains Carrying High Level Radioactive Material.”

2008 Kasgro receives order to design and manufacture (2) 20-axle depressed center flat cars with shift/lift capabilities.

2010 Kasgro receives order to build a 36-axle Schnabel Car. “The World’sLargest Railcar.”

2013 Kasgro acquires the NS Railway heavy-duty railcar fleet.

Kasgro Facilities

Kasgro is located in New Castle, PA. New Castle is approximately 30 miles north of Pittsburgh. The facility is served by the CSX and Norfolk Southern railroads. The facility has 9 buildings on 11 acres of land, 70,000 square feet is under roof.

Kasgro Plant UtilizationKasgro currently works four 10-hour production shifts per week. As needed, we are able to add a 2nd and/or 3rd production shift. We are currently operating at 50% capacity.

Total Kasgro Employees 62

Current Direct Labor Employees 35(33 certified welders)

Full time Engineers 5

KASGRO RAIL CAR MANAGEMENT

Office at Corydon, Indiana

5 Employees ( 3 full-time and 2 part-time)

Cars are distributed and contracted

Invoicing activities

Kasgro Quality Systems

Association of American Railroad (AAR) CertifiedKasgro has met the requirements as specified in AAR M-1003 Quality Assurance Program.

Kasgro is certified as a New Car Builder in accordance with AAR Standard S-2034.

NDT Non Destructive Testing ServicesKasgro has hired NDT to perform Certified Weld Inspection (CWI), ultrasonic and magnetic particle inspection services. CWI, ultrasonic and magnetic particle services are performed per NDT Work Instructions WI-08-002 (MT) and PA-WI-08-005 (UT). Acceptance criteria will be AWS D15.1 – Railroad Welding Specification for Railcars.

Kasgro 12-axle Depressed Center

8 Axle FM (straight deck) 70’ 230 ton

4 Axle Depressed Flat 25’ FD 122 ton

Kasgro 16-axle Depressed Center

Kasgro 20-axle Depressed Center

Schnabel Cars (36-axle)

US Navy Cask Railcar – Movement of Spent Nuclear Fuel

Active Schnabel Cars – North America(20-axles or greater)

BBCX 1000 Emmert Out of Service in 2022 (50 years) 20-axles

CEBX 800 Westinghouse Out of Service in 2020 (40 years) 36-axles

CEBX 801 Westinghouse Out of Service in 2053 (40 years) 36-axles

TEXX 1135 TTS Out of Service in 2019 (40 years) 20-axles

CCRX 40010 Contractors Cargo Out of Service in 2021 (50 years) 20-axles

HEPX 200 Hydro One Out of Service in 2023 (50 years) 20-axles

KWUX101 Siemens Out of Service in 2017 (40 years) 20-axles

KWUX 102 Siemens Out of Service in 2019 (50 years) 22-axles

PTDX 202 ABB Out of Service in 2019 (50 years) 20-axles

* there are many lighter duty Schnabel cars with less than 20-axles in North America.

Number of Heavy Duty Railcars – North AmericaNumber of depressed center railcars

4-axle Depressed Center Railcars (FD) 53 cars

8-axle Depressed Center Railcars (FD) 155 cars

12-axle Depressed Center Railcars (FD) 25 cars

16-axle Depressed Center Railcars (FD) 3 cars

Schnabel Railcars 9 cars

Capacity – Schnabel Cars and Owners

BBCX 1000 Emmert 20-axles 500-ton Carrying Capacity

CEBX 800 Westinghouse 36-axles 890-ton Carrying Capacity

CEBX 801 Westinghouse 36-axles 890-ton Carrying Capacity

TEXX 1135 TTS 20-axles 490-ton Carrying Capacity

CCRX 40010 Contractors Cargo 20-axles 550-ton Carrying Capacity

HEPX 200 Hydro One 20-axles 500-ton Carrying Capacity

KWUX101 Siemens 20-axles 523-ton Carrying Capacity

KWUX 102 Siemens 22-axles 608-ton Carrying Capacity

PTDX 202 ABB 20-axles 500-ton Carrying Capacity

Number of Heavy Duty Railcars – North AmericaStraight deck (FM) heavy-duty railcars

4-axle Straight Deck (FM) Railcars 66 cars

8-axle Straight Deck (FM) Railcars 455 cars

12-axle Straight Deck (FM) Railcars 118 cars

Total Fleet of Heavy-Duty Rated Cars Cars with 200,000# capacity or special

Currently between Kasgro, Trailer Train and private

» 1980 Nationwide fleet had dwindles to 260 +-

» Currently fleet of KRL, TTX and Private» Heavy-duty cars is about 900 total cars

Available Information Through Web

Kasgro.com– Site contains car specs, access to rate information on usage

and detention and contact information.

RICA (Railway Industrial Clearance Association)– RICA.ORG– Site contains details of organization, membership,

conference details, access to railroads websites and other topics pertaining to shipment of high, wide and heavy loads.

HEAVY-DUTY CAR ORDERING

Car orders must be placed through servicing railroad.

Kasgro may be contacted concerning availability and specifications of specific cars.

Heavy-duty cars do carry “Use and Detention Charges” in railroad Tariff 6740-G and will be billed by car owner. Tariff available at www.railinc.com– Click on Publications at bottom of page.– Go to Industry Lookups

• National Tariffs• RIC6740-G to latest supplement 46 Item 720-Y