Photography by Ed Zoller, Owner-Operator, Optimus Transport, Inc John & Jenni Bourdon Optimus Transport, Inc. Arrow Industries – Warehouse & Transload Transportation Issues and the Hardwood Industry

How Smaller Fleets fill the Niches in Regional Transportation -- What’s a “niche?” “The expression niche is borrowed from ecology and implies a situation or an activity perfectly suited to a person, a given type of personality, a business model...nicheecologyactivity …the process of finding and serving small industry segments and designing custom-made products or services for them....productsservices …big companies find those market segments too small to serve profitably as they often lack economies of scale;economies of scale …niche fillers are often reliant on the loyalty business model.”loyalty business model Etymology – by Wikipedia.org

What “niches” do smaller fleets fill? Logistics o Logistics – “one call does it all” Regional carriers : Know their traffic lanes Have built relationships with industry partners Can more effectively plan freight movement into, out of, and within their area Liaison o Liaison Familiar with regional mills, shippers/receivers, transloads, Ports-of-Entry, etc. Better control over trucking – work directly with their own drivers/Owner Ops Loyalty o Loyalty Able to more effectively prioritize shipments for established customers Give preference to and make allowances for the needs of established customers And what constitutes a “smaller” fleet? ◊Transport Topics Weekly says – Less than 150 tractor units Less than 150 tractor units ◊ Jenni B says – For a Regional Carrier, less than 30 For a Regional Carrier, less than 30

What to expect from your “Niche” filler -- Communicative o Communicative Accessible, attentive, attuned Competent They do what they say they’ll do when they say they’ll do it Capable of facilitating seamless freight movement& communicating progress Competitive Provide real-life rates that help you stay competitive and trucks stay on the road “How can I help?”

Weekly Retail Diesel Prices

April 2004 Oct 2004 April 2005 Oct 2005 April 2006 West Coast Averages 23+ % increase over past 12 months Dec 2003 $1.60

Challenges for OTR transportation -- Across the board increase in all types of expenses Soaring fuel costs (nearly 70% annually - previous three year period) Shortage of qualified, competent drivers Reduced highway capacity – increase in traffic volume and density for most regions Increased regulations & security measures including Homeland Security rules, etc.

Driver shortage – issues that impact Lifestyle Lifestyle Driver Pay Driver Pay Increased Cost of Truck Ownership Increased Cost of Truck Ownership Skyrocketing Fuel Prices Skyrocketing Fuel Prices Changes to Hours-of-service Changes to Hours-of-service Aging Workforce Aging Workforce

How can we help? Optimus Transport, Inc years serving the Northwest (WA, OR, ID, MT) 20 + maxi curtain vans 20 + maxi curtain vans Platinum Fleet Safety Award Winner Platinum Fleet Safety Award Winner Arrow Industries - - Warehouse & Transload Indoor railcar and container load/unload Indoor railcar and container load/unload Centrally located to the region at the Port of Olympia, WA Centrally located to the region at the Port of Olympia, WA (just south of Tacoma/Seattle & north of Vancouver/Portland ) (just south of Tacoma/Seattle & north of Vancouver/Portland )

O ptimus Transport, Inc. Phone:  Phone:  Fax: 