J.B. Hunt Transport Services, Inc.

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J.B. Hunt Transport Services, Inc.

• The Future of Intermodal Transportation in
  Memphis and the Mid-South Region
• November 2007

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Overview

• J.B. Hunt Transport, the intermodal
  transportation company
• Memphis footprint
• Current/Future Intermodal Opportunities
• Trans-Con/Transloading
• Eastern Rail Network
• North America
• Sustainability
• Questions

The Transportation Solutions Company
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JBHT Financials Increasingly Intermodal
(Six Months Ended June 30, 2007 in millions)
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Memphis Road/Rail/Road Intermodal Footprint
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Transcontinental - Transloading Opportunities
1 (example excludes fuel surcharge)
Long Beach,CA to Fremont,OH1
8 Days Transit
Five (5) 40 Intact Movements 10,275 Includes
Intact IPI Movement, Inland Door Delivery,
Related Accessorial Charges
6 Days Transit
Three (3) 53 JBHU Movements 8,550 Includes
Drayage, Transloading, Inland Door Delivery
Transloading Benefits - Cargo Consolidation
(fewer total shipments) - Reduction in
Inventory Carrying Costs - Defer Final
Deployment Decision Until Arrives in US -
Consistency of Transit Visibility to
Movement - Insulate Against Steamship Carrier
Rationalization
2006 West Coast Imports Intact Local Trans 53
Loads 40 Imports Discharged 6.1M 46 30
24 878,000 45 Imports Discharged
456K 41 30 29 99,000 Every 1 increase
in transloading would result in 40,000 53
container loads/year
Source Pacific Maritime Association
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The Eastern Rail Market Opportunity

• A win-win for
• JBHT Shareholders Growth in an attractive
  business segment
• Rail Partners Growth in an attractive business
  segment
• Taxpayers Delayed and avoided costs to expand
  highway infrastructure
• Motorists Fewer accidents and less congestion
  on highways
• Truck Drivers Creation of more desirable, lower
  turnover driving jobs
• The Environment 50 reduction, 1 ton, in carbon
  emissions per load
• Shippers More economical service option,
  insulation from fuel prices

70 - 211 Million People Inside the Red Line
30 - 90 Million People Outside of the Red Line
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Eastern Corridor Truck vs. Rail
Chicago, IL to Albany, NY

• Customers can save 5-15 on transport costs
• Intermodal fuel surcharges are more favorable
• Service differential is minimal and often same
• Customer can take advantage of weekend days
• Thursday shipment can deliver Monday

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Eastern Corridor Convertible OTR Volume
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Memphis Eastern Corridor Opportunity
Key Service Lanes
Lane Volume Ratio Current Transit Target Transit
Memphis - Elizabeth 2.5 4 days 2.4 days
Memphis Harrisburg 2.0 4 days 2.5 days
Memphis Columbus 1.0 5 days 1.5 days
Memphis Toledo 1.0 4 days 2.0 days
Memphis Norfolk 0.5 4 days 1.9 days
Includes Rail Transit, dwell and dray
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North American Opportunities

• January 1, 2008 - Passports required for US truck
  drivers
• Transcon Canadian and Mexican lanes
  underutilized
• Memphis Opportunities
• Toronto
• Montreal
• Laredo
• Mexico City

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Intermodal carbon-light transportation
Reducing carbon emissions from transportation
activity requires increased energy
efficiency. While many things can be done to
improve overall energy efficiency when
transporting via highway, like eliminating all
idle via an auxiliary power source or minimizing
empty miles between loads, the impact is modest
4 in this example. The single largest
transportation emission reduction strategy is to
convert highway-only shipments to intermodal
moves. In this example, carbon emissions are
reduced 60 or 1.8 tonnes per load. As Ray
Anderson of Interace, Inc. has written, Resource
efficient transportation, the fifth
(sustainability) front, is the front that is
least within our control and hardest for us to
crack.. Ship by rail whenever possible -
Mid-Course Correction, by Ray C. Anderson
60 less carbon 1.8 fewer tonnes
Estimated carbon emissions for an 1,800 mile
truckload shipment based on Raven Ridge
Resources, Inc. methodology for calculating
carbon emissions for truckload shipments via
highway and intermodal service. See
http//www.ghgworks.com/pdf/JBHTIntermodalVerifica
tionReport.pdf