Transportation, Distribution

1
Transportation, Distribution Logistics
September 2004
2
Our Industry - Truckload
Source American Trucking Association
in billions

• Celadon is the tenth largest truckload carrier
• Point to point service with no intermediate
  handling of freight
• Demand growing 5 to 6 annually
• Non-union

3
Truckload Industry 2001 - 2004

• Industry dynamics
• 15 of all fleets failed
• Difficulty in obtaining insurance
• High fuel cost
• Lack of financing
• Production of class 8 trucks declined
• 1998-2000 240,000 per year average
• 2001-2003 140,000 per year average
• 2004 250,000 - replacements
• Barriers to entry - No new company start-ups
• Inability to obtain insurance
• High fuel cost
• Shortage of drivers
• Cost of technology

4
CELADON Highlights

• Leading truckload carrier with international
  focus
• Domestic - 54 of revenue
• Mexico - 38 of revenue (own Mexican carrier)
• Canada 8 of revenue (own Canadian carrier)
• 2,531 tractors, 6,966 trailers
• Award winning safety and service

5
SKILLS TRANSITION

• REGULATORY EXPERTS Pre-Deregulation
• ABILITY TO DECIPHER GOVERNMENT REGULATIONS
• NEGOTIATORS Post-Deregulation
• SKILLED AT FINDING LOW COST PROVIDER
• SOPHISTICATED LOGISTICIANS 1990S to Present
• Optimal mix of modes
• Sourcing Raw Materials
• Order Frequency
• Locating Plant Distribution Centers
• Systems Development

6
WORKFORCE SKILLS

• MARKETING
• SYSTEMS DEVELOPMENT
• SALES TRAINING
• ENGINEERING
• FACILITY MANAGEMENT