A Brief History

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A Brief History

• 1818 Founded in Amsterdam by Johann Peter Bunge
• 1884 Bunge y Born established in Argentina by
  grandson, Ernest Bunge
• 1905 Bunge y Born expanded into Brazil
• 1923 Bunge North American Grain Corporation
  founded in New York City to trade raw
  agricultural commodities
• 2001 Changed our name to Bunge North America
  prior to the initial public offering of our
  parent company, Bunge Limited
• 2002 Bunge Limited acquired Cereol, which
  included Central Soya in the United States and
  CanAmera Foods in Canada

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Corporate Organization

• Bunge Limited
• Traded on NYSE BG (IPO 8/2/2001)
• Global Headquarters White Plains, NY
• 22,000 employees
• Offices in 32 countries
• 2005 Net Sales 24 Billion

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Vertically Integrated

• Worlds leading oilseed processor and seller of
  bottled oils
• Leading miller of wheat in South America and corn
  in North America
• South Americas leading fertilizer producer

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Bunge North America
Bunge North America, Inc., is the North American
operating arm of Bunge Limited (NYSE BG),with
facilities in the U.S., Canada and Mexico.
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Bunge North America
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Waterways the U.S. Economy

• One in every four acres of U.S. ag production is
  exported worth over 60 billion a year.
• In 2005, the U.S. exported over 111 million
  metric tons of grain and oilseed products valued
  at over 20 billion.
• Close to 60 percent of that moves through New
  Orleans to the Gulf.
• Our best natural comparative advantage in ag
  trade
• the Mississippi River and its tributaries!

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Waterways the U.S. Economy

• The New Orleans Customs District handled 32.4
  billion of U.S. exports and 97.3 billion in
  imports in 2005.
• The largest agricultural exports by value passing
  through these ports were
• 3.3 billion of soybeans (52 percent of total
  soybean exports)
• 2.8 billion of corn (58 percent of total corn
  exports)
• 784 million of wheat (18 percent of total wheat
  exports)

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Factors Impacting Barge Freight

• Strong demand for both traditional southbound and
  increased northbound barge traffic
• 2003 to 2004 inbound tonnage through New Orleans
  increased by more than 42 percent.
• 2004 to 2005 increased by more than 23 percent.
  
• New demand for northbound movements to interior
  locations lengthens turn-around times and barge
  availability for southbound movements of
  agricultural commodities.
• Significant increases in major commodity imports
  such as crude petroleum and petroleum products
  chemicals sand, gravel and stone primary
  manufacturing goods and manufacturing equipment.

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Factors Impacting Barge Freight

• Reduction in the number of barges in the river
  fleet
• 2005 covered hopper barge fleet at 11,300 barges.
  
• 2 percent less than the number of barges
  available in 2004 8.9 percent less than 1998.
• Low water levels
• Naturally occurring
• Lack of routine, federal maintenance

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Factors Impacting Barge Freight

• Rail truck transportation often not viable.
• Rail shipping is already at full capacity.
• Labor shortage of certified truck drivers.
• Shipping by barge remains the lowest cost and
  most overall efficient method of transporting
  agricultural commodities to export!

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Global Competitiveness

• Value of public infrastructure investments
• Foresight of previous generations paying
  dividends today
• Federal governments role
• Multi-state implications
• Legal liability for private investors
• Absolute neutrality benefits all sectors

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Global Competitiveness

• Freight cost advantage of our waterways system
• Many international competitors maintain an
  overall lower cost of production in commodities
  such as corn and soybeans. The U.S. makes up the
  difference through efficient handling and
  shipping.
• Deterioration of our river system and investments
  in foreign transportation infrastructure has
  diminished the U.S. freight advantage over global
  competitors such as Brazil.
• Investments in public infrastructure are key to
  maintaining U.S. competitiveness.
• We must renew our commitment to maintaining the
  entire waterways system.

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Origination Destination - Low-Use Waterways

• Tributary waterways are a vital transportation
  system linking agricultural production to the
  Mississippi River system and export markets
  beyond.
• 65 percent of commerce moving on the Mississippi
  River stems from tributary waterways.
• Fewer miles fewer ton-miles
• Tributaries are part of a waterways system.
• Nearly 99 of tributary ton-miles derived from
  traffic moving to or from an origin or
  destination on another waterway.
• Without access to terminals on that tributary
  waterway, the entire movement and total ton-miles
  would not occur.

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The Funding Crisis

• Tributaries and other low-use waterways have
  been targeted for budget savings over the years.
• The Presidents FY 04, 05, 06 07 Budgets
  completely eliminate funds for Mississippi River
  tributaries ports setting a 1 million ton/1
  billion ton-mile threshold.
• Consequently, the bases of these channels are
  rising and their navigability is at risk.

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Impact on Agriculture

• Aging infrastructure and deferred maintenance
  created by insufficient investment levels will
  result in
• degraded system performance
• safety concerns
• increased delays
• higher transportation costs
• negative impacts on GDP and employment

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Impact on Agriculture

• Inability to load barges to full capacity because
  shallow depths limit navigation.
• Direct correspondence to commodity basis
  deterioration
• Loss of barge freight 10 to 25 per bushel
  lost revenue
• 500 acres of corn planted avg trendline yield
  of 150 bushels/acre
• 150 bushels/acre 75,000 bushels of corn
• Loss of barge transportation 7,500 to 18,750
  lost revenue

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The Road Ahead

• Integrate tributaries shallow ports into larger
  campaign to maintain the system.
• National Association of Manufacturers (NAM)
  Coalition
• Waterways inclusion in intermodal transportation
  system
• Bridge gap between authorization commitments and
  appropriations
• WRDA final action
• Operations Maintenance appropriations

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