An

Portfolio Company

Company Deck 1

Company Overview

GRID Logistics Inc. Proposes to design, build, maintain, and operate strategically selected container port complexes and inland urban freight networks using proprietary docking and crane designs, providing clean and robust logistics connectivity.

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45% of our nation’s

freight enters U.S. from San Pedro

Bay Ports

Of that, 44% of the freight travels on Class 1 Trains to the U.S. interior run by the BNSF and Union Pacific Railroads, while 56% is truck delivered mostly

to the Regional Southern California Market and beyond.

45%

Our National Trading Gateway

BNSF

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A Global Shipping Industry Problem in Need of Solutions

The Sizes of Container Ships are Rapidly Growing due to Expanding Globalization

New generations of Ultra-large Container Ships (ULCs) have grown in size over the last 20 years carrying 300% more container units (TEUs)

The Industry is in agreement that a new generation of “Containerport” complexes designed and built to efficiently and cleanly service these ships are now in demand

Maersk Line with Triple E Container Ships have been leading the industry in developing the Next generation of Ultra-large Container Ships too large for the newly widened Panama Canal

Servicing this 21st Century Fleet of ULCs from water to land will force a paradigm shift in strategically positioned

container port complexes all over the world.

3-Part Problem ALL in need of Addressing Ship to Shore Crane Technologies

Freight Tunnel/Pipeline Network

New Railyard Designs

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50 Year Old “A” Frame Crane Designs

50 Year Old Truck Logistics Utilization

50 Year Old Intermodal Terminal Designs

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SURFACE & UNDERGROUND

ALAMEDA CORRIDOR Class 1 Trains

FUTURE EXPANSION OPPORTUNITIES

(1) SUPERDOCK

URBAN FREIGHT

NETWORK INLAND

ALA

MED

A C

OR

RID

OR

EAST (A

CE)

(2) ZERO EMISSIONS RIGHT OF WAY (R.O.W.)

(3) FEEDER

TERMINALS

3- Part Solution: SuperDock™, Freight Network and Inland Feeder Terminals

(3) FEEDER

TERMINALS

(3) FEEDER

TERMINALS

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SuperDock™

E-3 SuperCrane™

3X Faster Vessel Berth Service 10X Class 1 Train Processing 15X Storage Fully Electrified

Game-Changing Bay-by-Bay Discharge & Loadback Crane/Systems Capabilities

Our Proprietary Patent-Pending Zero Emissions Container Moving Platforms

All GRID Infrastructure can be constructed with zero interruptions to current port related logistics operations

SPB Ports

A Genuine 21st Century Urban Freight Transportation Problem

Blue Dots on So. California Maps Indicate Warehousing

1) Trucks are universally despised by commuters and tax payers due to their disproportionate negative impacts on traffic congestion, safety, road damage, and air quality. Reducing the numbers of trucks from our freeway networks has great potential for public support.

2) Southern California truck population growth proportionate to projected port growth forecasts are unsustainable. This fact is being ignored by ports, cities, and their respective municipal planning organizations because freeway expansion is institutional and status quo defended.

3) Critical to the freight supply chain and regardless of fuel source, Trucks are by far the most inefficient and costly method of freight delivery when compared to vessel and railed transport. GRID Logistics Inc. recognizes great untapped value opportunities. 8

Urban Freight Network

SOLUTION; California’s Green Urban Freight Network

Eliminating Millions of Trucks from our Freeway Networks

152 Mile Freight Network Circuit

1) It costs from $600 to $800 to move a single container between berthed container ships and inland warehouses. GRID’s Urban Freight Network would capture over 50% of Southern California truck deliveries (over 25% of all port originating logistics activity)

2) Infrastructure costs for GRID’s Urban Freight Network would be paid by tolls on port-related freight. Additionally, a city-to-city freight delivery network has strong potential for generating non-port-related revenues from this new “Cleantech” freight concession

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Urban Freight Network

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Inland Feeder Terminals Network

Containers are loaded and unloaded at inland hub and spoke distribution nodes called “Feeder Terminals”. Reduced delivery distances from Feeder Terminals to destinations are conducive to alternative fuel trucks. Reductions to Truck Vehicle Miles Traveled (VMTs) to be independently researched by university studies on

The GRID System.

Why GRID and Why the SPB Ports?

The global grid will foster a transportation system based on multiple transshipments, facilitated by innovative shipping and handling port technologies.

The Fourth Revolution Theory (2007) addresses the long-term developments of the global service pattern. The theory predicts the emergence of new, bi-directional Equatorial-Round-The-World (ERTW) services intersecting with North & South services, creating a "global grid".

(SOURCE) Dr. Asaf Ashar is a research professor with the National Ports & Waterways Initiative (NPWI), USA 11

Why GRID and Why the SPB Ports?

3) GRID adds value to shippers, railroads, ports, and benefits organized labor, environmental interests and municipal transportation in the Southern California Mega-region

1) Southern California’s San Pedro Bay has significant geographical advantages (ERTW) over other Western Hemisphere Ports

2) Innovative and superior container vessel discharge and load-back operations, GRID adds value to freight carriers on land, rail, road and sea creating a “True Transshipment” Gateway

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FUEL Accounts for approximately 50% of Container Carrier’s Operating Costs

8 more travel days to Panama Canal in round trip vs. SPB Ports

GRID PROJECT BUDGET ESTIMATE at $18 Billion

INLAND So. CalMega-REGION

SPB Port ComplexesPOLA/POLB

$11.5B

$6.5B

This is a REGIONAL Freight Transportation Infrastructure Project with a Ports Modernization COMPONENT

70 60 50 40 30 20 10

In Billions ($)

21st Century Transportation Infrastructure Cost Perspectives

Project Costs Compared with LA to SF High Speed Rail Project

In 2007 the U.S. Government Accounting Office (GAO) Report, Stated that 27,000 jobs are created for every $1 Billion Invested in Transportation Infrastructure

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“The Movement of Freight is one of the most Important transportation questions of the 21st Century”

Ranking T&I Committee Special Panel on Freight - Jarrod Nadler D-NY

“Freight doesn’t move just by ship, or by rail car, or by truck. Chances are the goods you buy at the store got on the shelves thanks to all of these methods of transportation. That’s why improving the flow of freight across all modes of Transportation is so critical to a health economy”. Transportation Sub-Committee Chairman Rep. John Duncan

Transportation and Infrastructure Committee Announces Special Panel Tasked with Developing Freight Transportation Improvements (Press Release April 16, 2013)

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The College of Engineering and Computer Science at CSUN in partnership with GRID Logistics Inc. is pursuing an estimated $1.6M, 20 month, feasibility study of The GRID Concept

• Defender: The current port system and growth strategy

• Challenger: GRID project

Proof of Concepts is a key short term objective to GRID’s successful launch.

Construct a Small Scaled SuperDock - SuperCrane Module and Freight Pipeline/Tunnel segment that will demonstrate the systems container moving operations.

Proposal: build a GRID System Physical Proof of Concept in a collaborative effort by academic researchers, private sector consultants, crane builders, and port, transportation, and regional stakeholder interests.

Physical Proof of Concept

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1.….2…..3.….4…..5.….6…..7.….8.….9…..10…..11.….12.….13…..14…..15…..16.….17.….18.….19…..20

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Month

GRID Development Timelines

Continue Stakeholder Outreach

Deal Structure/Agreements between Ports, Class 1 railroads, and Shipping Lines

Secure Stakeholder Support

Formation of PPP

Develop Project Financing P3 Contracts

SHO

VEL

TO

GR

OU

ND

Series A Round

Funding

GRID Feasibility Study

Permitting

Establish GRID as an Environmental Mitigation with Support from the Environmental Community

Congress to Designate GRID as a Project of National Significance Streamlining Permitting Processes

Physical Proof of Concept

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Organized Labor

Environmental And Social

Justice Advocates

Contractors Public and

Private R&D

Ports, Shippers and Class 1 Railroads Elected

Leaders

Stakeholders / Becoming a Part of GRID

A licensed professional engineer in California, Texas, and Oklahoma, Richard has been involved in the design and fabrication of large diameter pipe and pipelines for over 30 years. Richard is also experienced in the research and design of using such pipe for transporting solid freight. In the mid-90’s Richard co-founded Tubexpress Inc., a freight pipeline company proposing proprietary Pneumatic Capsule Propulsion delivering palletized freight in high traffic corridors that would substantially reduce trucks from main roads and freeways. In late 2009, Dave met Richard. They immediately realized that moving port container cargo using large diameter pipe and/or tunneling had tremendous promise for Southern California.

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Co-Founders

Richard I. Mueller P.E. Sr. Vice President / CFO

A native Angelino, Dave has been involved in commercial logistics for over 20 years. Seven of those years he managed all facets of container terminal operations involving vessel, yard/gate, and On/Dock Class 1 rail operations. Within his first year at the ports, Dave identified tremendous inefficiencies clogging the container supply chain. Dave made his profound discovery when he realized that the design of the entire container port complex was outdated and that no improvements to any part of the container logistics network in its present condition was feasible. A complete modernization “overhaul” is clearly in order. Dave committed six years developing the Green Rail Intelligent Development solutions you are now evaluating. Dave is a graduate from the School of International Relations at the University of Southern California.

David J. Alba President / CEO

“We’ve Often Described our Meeting as One of those Classic Peanut Butter and Chocolate Moments” - Dave Alba

An

Portfolio Company

Company Deck 20

CONTACT: Dave Alba Co-Founder and President

d_alba@gridlogisticsinc.com T: (626) 513-3650

Thank You