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Panama Canal& the Barge Industry

American Institute of Marine Underwriters

May 8, 2013

Jerry KnapperAVP, Strategic Planning

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Introduction to Ingram Marine Group

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ESTABLISHED

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Family-owned andFamily-operated

Martha IngramChairman Emerita

Orrin IngramChairman, Ingram Barge Co.

Pres. & CEO, Ingram Industries

John IngramChairman of the Board

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Grand Rivers, KY

Columbus, KY

Paducah, KY

St. Louis, MO

LaPlace, LA

Baton Rouge, LA

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Ingram Marine Group

We operate152 towboats

26 Lower Miss Boats91 Locking River Boats

35 ISS/Fleet Boats

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Ingram operateson all major rivers

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Ingram InfrastructureSystem (ISS)Hub and Spoke Operations

Linehaul Motor VesselDeployment To/From Hubs

Hubs

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Ingram Linehaul Boats by RiverIngram Linehaul Boats by River

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Largest dry cargo carrier;

4th largest liquid carrier

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Strategic Situation: Competitors

The industry is relativelyconsolidated & half of the top

10 carriers are shipper owned *

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Commodities We CarryDry Cargo Tons

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Energy-RelatedCoal, Coke, Other

62%TONS

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Agriculture-RelatedGrain, Fertilizer

12%TONS

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Metals-RelatedAlloys, Iron, Steel, Ores, Scrap

14%TONS

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Construction-RelatedCement Products, Stone

10%TONS

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Chemicals (No hazardous chemicals or black oil)Caustic soda, Methanol, Acetone, Styrene, VAM

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Nearly 12,000 Miles 9ft & Over

198 lock sites / 241 chambers

Operated by Army Corps of Engineers

System is mature; but availablecapacity to support traffic growth

Nearly 12,000 Miles 9ft & Over

198 lock sites / 241 chambers

Operated by Army Corps of Engineers

System is mature; but availablecapacity to support traffic growth

Lock & Dam Sites

Areas of Congestion

Todays Inland Waterway SystemTodays Inland Waterway System

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The Lower Mississippi is an open

river with no lock structures,allowing larger tows moving

more than 80,000 tons

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Inland Waterway Volumes

Large Post-Panamax cargoes will strengthen theCenter Gulf gateway

Grain: larger geographic reach for exports

Oil Products & Chemicals: Asian destinations

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Soybeans: Draw Area Expansion Potential

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Soybeans: Draw Area Expansion Potential

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Container Distribution Network

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Port Expansions

Currently Norfolk and Baltimore are the only East Coast(or Gulf) ports deep enough for Post-Panamax vessels

New Orleans draft depth: 45 feet

Necessary draft depth: 50 feet

No plan in New Orleans yet

Panama Port Readiness

Norfolk NY/NJ Miami Charleston Savannah Houston NOLA

Already50 ft.

depth

50 ft. depthestimated

completed by12/31/2014

Seekingapproval

Planning, butno funding

Hold up for spoildisposal &

environmentalstudy

Secured fundingfor 45 ft. depth,

building newcontainerterminal

Operatingwith no

announcedplans

Panama Port Readiness

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Panama Canal Expansion (2014)

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TEUs per Barge

Twenty-foot Equivalent Units (TEUs) Container dimensions: 8 x 8 x 20

Dry cargo barge box internal dimensions:

27 x 15 x 189

~40,000 barges shipped Northbound EMPTY in 2012 (totalindustry)

Twenty-foot Equivalent Units (TEUs) Container dimensions: 8 x 8 x 20

Dry cargo barge box internal dimensions:

27 x 15 x 189

~40,000 barges shipped Northbound EMPTY in 2012 (totalindustry)

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189189

2727

17171515

Barge w/containers: Birds-Eye ViewBarge w/containers: Birds-Eye View

Barge w/containers: Side ViewBarge w/containers: Side View

TEUsperbarge=3x9x4=108TEUs

Tons per TEU = 13.5 tons (avg)

Tons per barge w/containers = 1458

TEUsperbarge=3x9x4=108TEUs

Tons per TEU = 13.5 tons (avg)

Tons per barge w/containers = 1458

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Below Cairo, IL To New Orleans

Maximum Tow Sizes

35

280

TEUs per Flotilla: 108 x 40 = 4320TEUs per Flotilla: 108 x 40 = 4320

Flotillas per Post-Panamax Ship:

10,000 / 4320 = ~2.5

Flotillas per Post-Panamax Ship:

10,000 / 4320 = ~2.5

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Post-Panamax Barge Potential

Barge Constraints Lack of Post-Panamax-ready port (50 channel depth)

Velocity

North/South network orientation

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Post-Panamax Barge Potential

Barge Advantages Industry is in a position to grow for eitherBulk

Commodity or Containermoves, both North and South

North bound barge movements

Availability of empties (40,000 barges = 4.3 million

TEUs.)

Favorable Rates

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Final Slide

Ingram Barge logo