1. Transportation, Distribution & Logistics
September 2004

2. Source: American Trucking Association
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
,000 per year average
,000 per year average
,000 - replacements
Barriers to entry - No new company start-ups
Inability to obtain insurance
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 – 1990’S 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