Watco Supply Chain Services

People. Technology. Solutions.

1983Dick Webb opens Watco’s original switching operations in DeRidder, LA

1985First mechanical

railcar repair facility opened in

Coffeyville, KS

1987Purchased the Company's first short line, the SKO from the Union Pacific

1992-1993Eastern Idaho Railroad

was first short line to provide on-time

guarantee

1998Rick Webb takes the helm as CEO

2001K&O rail lines were acquired

by Watco

2004Watco acquires Great Northwest Railroad

2005KCS outsources

short line railroads to Watco

2007Watco begins AWRR with partner (freight & commuter rail)

Watco acquires Millennium Rail, Inc. (MRI)

2008Watco acquires Mansfield,

LA & Green River, WY switching operations

Watco acquires Reload and Fitzgerald, Baton

Rouge Southern Railroad, Pacific Sun Railroad

2009Watco acquires Grand Elk Railroad, Alabama Warrior Railway, & Boise Valley Railroad

2011Watco agrees to purchase Wisconsin & Southern Railroad and Birmingham Southern Railroad

Watco announces start-up of Autauga Northern Railroad

2010Watco launches rail operations

in Western Australia

Watco announces Kinder Morgan relationship

Watco acquires full ownership of Greens Port Industrial Park on the Houston ship channel

2011Watco Companies, LLC Announces Creation of Compliance Services Division Watco Transportation Services, LLC to operate Swan Ranch Railroad

2013Watco purchases Ann Arbor Railroad, Inc.

2012Watco Transportation Services

to begin operations of Pecos Valley Southern Railway

Watco Companies LLC acquires Cudahy Car Shop, Inc.

Watco Companies, LLC launches San Antonio

Central Railroad

2014Watco and Greenbrier

launch joint venture

Stillwater Central Railroad awarded Sooner Sub

Watco Companies, LLC announces creation of Supply

Chain Services Division

The largest short line railroad operator in the U.S.3rd largest industrial contract switching provider

610,000+ annual carloads

Watco Facts

400+ locomotives3,900 railcars

4,500 track miles»Largest car repair service provider in U.S.

»38 Greenbrier Watco (joint venture) mechanical shops

»23 rail repair shops

»35 short line railroads servicing 23 states and Western Australia

»28 switching operations

»49 terminal locations

»Owns and operates Greens Port Industrial Park on the Houston Ship Channel

»2 motor carrier operating authorities and brokerage authority

»Watco SCS provides coverage throughout North America as well as around the globe

International service in Western Australia

and Canada

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Customer FocusWatco Supply Chain Services was created for one reason: to provide our Customers, with world-class supply chain solutions.

Watco Supply Chain Services has inherited

a rich history of taking care of the Customer.

Our experienced team is made up of industry-

knowledgeable people that take great pride in

their work and care deeply for our Customers.

Along with the latest technology, we are able

to offer our Customers the most efficient,

cost effective supply chain solutions.

Listen Understand Grow

Customer First!

Watco Companies · est. 1983

Eric Wolfe // PresidentEric worked in the supply chain industry for over 26 years before joining Watco Companies to implement Watco Supply Chain Services. Eric has either led or played a key role in the launch of four separate third party logistics companies during his career, including J.B. Hunt Logistics, Cardinal Logistics, Clicklogistics, and BNSF Logistics, where he led the company for many years and eventually served as the Chief Operating Officer.

James H. Rader // Senior Vice-President, Engineering & Regulatory Consulting Jim has over 40 years of experience in the railroad industry in asset management, consulting, engineering, and transportation compliance with two Class I railroads, the AAR, the FRA, two railcar asset management companies, and a private car builder. Jim was instrumental in producing several federal rulemakings and industry standards based on incident investigations and research concerning transportation safety in the US and Canada.

Judd Gilgen // Vice-President, Risk Management Judd has worked in the supply chain industry for over 21 years, most recently with BNSF Logistics. He has experience in many areas including risk management, compliance, operations, and project management. Judd has successfully implemented several high-profile transportation outsourcing agreements and helped design and start the first web-based track, trace, and reporting applications.

Meet Our Team

Amy Parady // Vice-President, Business DevelopmentAs Vice President of Marketing for the Gulf/Southeast region at Watco Companies, Amy led the marketing efforts in 15 acquisitions of new Watco Railroads over an 11 year period, adding an excess of $90M in revenue to the company portfolio. She pioneered organic growth efforts, where she provided solutions to Customers not only on a rail basis, but across the entire supply chain.

Lynda Patterson // Vice-President, Growth StrategiesLynda has worked in the logistics industry for over 20 years and has joined our team as Vice President of Growth Strategies. Lynda led Strategic Sourcing and Supplier Management initiatives as an expert in the formalized sourcing process to create a competitive advantage for BNSF Railway, including realizing over $15M in sustainable savings and $20M in free cash flow impact.

Watco Supply Chain Services takes great pride in providing supply chain excellence to shippers throughout North America and around the globe. Our technology and processes enable our people to create valuable solutions for our Customers. R

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From optimizing a Customer’s network to

supplying capacity for challenging lanes

or equipment types, we analyze the most

difficult Customer challenges and provide

smart solutions that fit your needs.

Through ongoing analysis and optimization

of your network from end-to-end, we can

provide cost effective, innovative solutions.

we think smarter.

Here at Watco Supply Chain Services, we are focused on results for you, our Customer. Using innovative technology, and time-tested expertise of

our team, we not only deliver your products, but lasting results.

Recognize the opportunityEngineer alternative solutionsSystematically analyze solutionsUtilize review and selection processLaunch new business processes Track results Strategically audit for excellence

Highway LogisticsTRUCKLOAD Dry Van Watco Supply Chain Services professionals have experience in multi-drop, power-only, drop-trailers, floor-loading, and consolidated shipments. Even during peak seasons, Watco Supply Chain Services secures the appropriate equipment, ensures that carrier obligations are fulfilled, and monitors service and quality throughout the entire process.

Temperature Controlled We have access to insulated and temperature controlled equipment to keep your freight at its desired temperature throughout the entire transportation process.

Flatbed and Oversized Whether it’s a standard flatbed or specialized multi-axle equipment to handle oversized or heavy shipments, Watco Supply Chain Services provides Customers with the appropriate transportation equipment to make sure your freight is transported safely and effectively at competitive rates.

LTL Less-than-truckload (LTL) freight is moved efficiently, with underlying network design and transit time analysis taken into account.

Watco Supply Chain Services offers project management services for LTL Customers that include: » Temperature Controlled LTL » Pool Point Options » Consolidation Opportunities » Trade Exhibit Shipment Management

Outsourced Transportation and Logistics Management ServicesWatco Supply Chain Services offers outsourced services in which we can be deployed to provide transportation and logistics department services as an extension of our Customers’ operations. Services include:

Watco Supply Chain Services provides highway logistics solutions that range from spot, lane specific, or technology driven logistics management outsource solutions.

» Contracting» Tendering» In-Transit Monitoring» Daily Optimization

» Freight Audit & Payment» Claims Management» Business Intelligence and Reporting

Rail LogisticsOur company is home to the largest privately owned railcar company in the U.S. and manages a virtual fleet of rail-owned equipment to provide our Customers with the most efficient railcar services at the most competitive rates. Although we maintain a strong relationship with Watco Companies, Watco Supply Chain Services remains unbiased and rail neutral, finding you the most logical, cost-effective transportation for your shipments.

Turnkey Door-to-Door Coordination of Project and Dimensional Cargo // turning complex movements into a seamless, safe, reliable and economical solution (proven track record with wind logistics, boilers, generators, machinery and other oversized cargo).

Single or Double-Sided Transload Rail Solutions // making rail a viable, cost competitive alternative for shippers that are not direct rail served at one or both ends of the move.

Rail Administrative Management // including rail billing, tracking and tracing, diversion and empty disposition, demurrage management, freight audit and payment and reporting.

GBW Railcar Services // by utilizing the existing Watco Companies repair shops and mobile command centers across the US, complimented by outside contracted railcar maintenance vendors, no matter where your railcar requires repair, it will be scheduled and managed throughout the process, including maintenance and compliance reporting requirements.

Rail Engineering // including load diagram configuration, railcar retrofitting and secure designs to meet AAR specifications.

Rail Fleet Management // to maximize the return on your asset investment through proper balance, placement, monitoring and availability when and where your railcars are needed, ultimately reducing turn-times, demurrage and storage within your private fleet. Connecting people with technology, Watco Supply Chain Services Fleet Management brings unsurpassed professional support with state-of-the art asset health and location monitoring systems.

Intermodal LogisticsToday’s supply chains require smart solutions.

Solutions that blend multiple modes together to ensure efficiency and capacity, and ultimately service reliability. Watco Supply Chain Services contracts with all major railroads to provide the best intermodal solution for your freight needs. With access to over 65,000 rail controlled assets, we provide a reliable source of capacity while providing a cost effective alternative to over-the-road transportation.

In today’s environment of truck and driver shortages, increasing highway congestion, rising fuel costs and regulatory pressures, our industry leading intermodal professionals understand what it takes to provide a seamless intermodal solution for your freight. » Transit options to meet your service expectations» Single point of contact that understands your business» Access to dry and refrigerated equipment» Coast to coast coverage» Unprecedented Customer service

Engineering & Regulatory Compliance Services Engineering Consulting

» Professional support for product design, development, modifications, and test protocols» Design of railroad rolling stock» Development of rolling stock tank car qualification/ maintenance programs» Metallurgical and service failure analysis» Consulting services for facility layout, process development, and the efficient use of resources in repair, modification, and manufacturing operations» Expert witness in support of litigation

Regulatory Consulting » Professional regulatory assistance and interpretations» Identification of process improvements through audits and assessments» Development of engineering solutions » Assistance in railroad-related accident and incident investigations» Expert advice and witness to insurance companies, federal mitigation, and litigation

Quality Management » Identify and reduce variations in the workplace» Development of quality management systems, procedures, manuals, work instructions, and records conforming to regulatory requirements» Assistance in improving processes and ensuring compliance

Inspection » Experienced inspectors at manufacturing, maintenance, repair, and overhaul facilities» Professional assessments of pre- and post-acquisitions of rolling stock» Skilled JIC assessors with respect to damaged rolling stock inspections» Auditing expertise to verify Car Repair Billing against actual field repair» Conversant inspectors in both English and Spanish

The Watco Supply Chain Services Engineering and Regulatory Consulting team delivers highly technical, compliance-based, services to the railroad, switching, shipping, manufacturing, and repair industries. Our services help our Customers move product from design to destination in a safe, compliant, and cost effective manner.

Integrated Solutions

Watco Supply Chain Services is committed to helping you grow your business. Through strong relationships and modern technology, we are able to optimize across water, highway, intermodal, and carload networks.

We provide the most value when engaged beyond a single transaction, becoming more involved with complex, multi-modal solutions.

We excel in customized solutions that involve our modal expertise applied with the appropriate technology to exceed Customer expectations.

Let us show you how we can help grow your business.

3905 Elliott Ave • Springdale, Arkansas 72762P: 877.215.8782 • www.watcosupplychain.comsales@watcosupplychain.comConnect With Us!

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Watc

o Supply Chain Services

People. Technology. Solutions.