1Genesee & Wyoming Inc. Shale & Railroads Marketing & Operations Impact Marty Pohlod, Vice President – Commercial Genesee & Wyoming – Ohio Valley Region September 23, 2013

2Genesee & Wyoming Inc.

3 Key Shale-by-Rail Locations Natural Gas/NGLs Locations Ohio: Utica Shale (liquids rich) Pennsylvania: Marcellus (dry gas) Louisiana: Haynesville (dry gas; activity down) Crude Oil Locations Texas: Eagle Ford Formation and Permian Basin North Dakota: Bakken Canada: Alberta tar sands

4Genesee & Wyoming Inc. G&W Lines and U.S. Shale Geography

5Genesee & Wyoming Inc. Utica Shale In Ohio Utica Shale = rich natural gas liquids (NGLs) – Ethane, Propane, Butane, condensate and/or natural gasoline. Utica Shale does not produce significant crude oil –Western portion potentially crude oil rich, not yet economically recoverable. Production to grow dramatically with new processing and fractionation is available –Processing: Separation of NGLs, water and other impurities from dry gas –Fractionation: Separation of NGLs into components (e.g., ethane, propane, butane, etc.)

6Genesee & Wyoming Inc. Site prep ~ 200 railcars of stone Inputs ~ 30+ railcars per well: ­4-6 railcars of OCTG (pipe) ­ railcars of sand ­½ railcar of cement NGL Outputs ~ 10+ railcars per well: ­ 4-6 railcars of drill cuttings ­ 2-3+ railcars of NGLs/day Shale to Rail – What Does It Mean? Crude Outputs ­Multiple unit trains per week

7Genesee & Wyoming Inc. Railcar Storage Impact More storage required than traditional rail customers Frac sand terminal 5+ grades, may need 1-2 miles car storage. NGL Fractionation plants require even more track. –Varying tank cars by commodity –Multiple shippers/marketers in one facility

8Genesee & Wyoming Inc. Liquids Shipments Safety Implication “Key Train” Status –20 or more haz-mat placard cars –No unattended trains –Close coordination at interchange –Stays on mainline when passing other trains More detailed haz-mat traffic lanes identification More interaction with FRA at key haz-mat locations

9Genesee & Wyoming Inc. Service Impact Not incremental traffic – Trainload(s) of new traffic Design train service to fit commodity & customer demand Careful pre-planning Close communication with customers Hiring of additional operating employees Premium service and cost

10Genesee & Wyoming Inc. Big Picture Rail & Shale Defining the market –Pipelines vs. rail? Competition amongst shale plays and end-markets? Committing to long-term track investments –Capacity is available and scalable Optimizing use of sites (particularly in East) Maintaining service to existing (non-shale) customers Strong competition between railroads for projects Public policy alignment –Private RRs invest significant private capital –More rail shipments make roads safer and last longer (saves everybody $) –Encourage road funding & TSW policies to work with, not against RRs