Monday - 215-315 GW SCORT Presentation 9-23-13

Shale & RailroadsMarketing & Operations ImpactMarty Pohlod, Vice President CommercialGenesee & Wyoming Ohio Valley RegionSeptember 23, 2013#Genesee & Wyoming Inc.

#Genesee & Wyoming Inc.2Key Shale-by-Rail Locations

Natural Gas/NGLs LocationsOhio: Utica Shale (liquids rich)Pennsylvania: Marcellus (dry gas)Louisiana: Haynesville (dry gas; activity down)

Crude Oil LocationsTexas: Eagle Ford Formation and Permian BasinNorth Dakota: BakkenCanada: Alberta tar sands

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

#Genesee & Wyoming Inc.Utica Shale In OhioUtica Shale = rich natural gas liquids (NGLs) Ethane, Propane, Butane, condensate and/or natural gasoline.

Utica Shale does not produce significant crude oilWestern portion potentially crude oil rich, not yet economically recoverable.

Production to grow dramatically with new processing and fractionation is availableProcessing: Separation of NGLs, water and other impurities from dry gasFractionation: Separation of NGLs into components (e.g., ethane, propane, butane, etc.)#Genesee & Wyoming Inc.Site prep ~ 200 railcars of stoneInputs ~ 30+ railcars per well:4-6 railcars of OCTG (pipe)15-30+ railcars of sand railcar of cement

NGL Outputs ~ 10+ railcars per well: 4-6 railcars of drill cuttings 2-3+ railcars of NGLs/dayShale to Rail What Does It Mean?Crude OutputsMultiple unit trains per week#Genesee & Wyoming Inc.Railcar Storage ImpactMore storage required than traditional rail customersFrac sand terminal 5+ grades, may need 1-2 miles car storage.NGL Fractionation plants require even more track.Varying tank cars by commodityMultiple shippers/marketers in one facility#Genesee & Wyoming Inc.Liquids Shipments Safety ImplicationKey Train Status20 or more haz-mat placard carsNo unattended trainsClose coordination at interchangeStays on mainline when passing other trainsMore detailed haz-mat traffic lanes identificationMore interaction with FRA at key haz-mat locations

#Genesee & Wyoming Inc.Service ImpactNot incremental traffic Trainload(s) of new trafficDesign train service to fit commodity & customer demandCareful pre-planningClose communication with customersHiring of additional operating employeesPremium service and cost#Genesee & Wyoming Inc.Big Picture Rail & Shale

Defining the marketPipelines vs. rail? Competition amongst shale plays and end-markets?Committing to long-term track investmentsCapacity is available and scalable Optimizing use of sites (particularly in East)Maintaining service to existing (non-shale) customersStrong competition between railroads for projectsPublic policy alignmentPrivate RRs invest significant private capitalMore rail shipments make roads safer and last longer (saves everybody $)Encourage road funding & TSW policies to work with, not against RRs

#Genesee & Wyoming Inc.