Great Lakes Central Railroad

Freight

GLC Provides Transportation Solutions

• Rail to rail shipping
• Rail to truck via transload (in-bound to Michigan industrial base)
• Truck to rail via transload (out-bound to customers all over the world)
• GLC proving transportation integration works for everyone’s benefit

GLC is a Good Steward

• Takes its job as custodian of State owned rail assets seriously…
• Adding to Michigan’s industrial base
• Adding additional rail facilities
• Adding additional truck coordinated transportation
• Providing statewide infrastructure growth

GLC Helps Relieve State Highway Congestion

• Average line haul - 220 miles
• Average tonnage per load - 100 tons
• Current annual shipments - 10,000
• Total gross ton miles of freight hauled over 300,000,000 annually
• Less highway wear and tear - lower statewide maintenance

GLC is fuel efficient!

GLC Has Power!

• 11 diesel locomotives
• Well maintained
• All current to AAR/FRA standards
• Ditch light systems
• Event recorders - “Black Box”
• State of the art communications
• End of train sensors

GLC Has Quality Track and Bridges!
Rated for 286,000 lb carloads

• 65% - Class III, 40 mph speed limit Freight, 59 mph speed limit Passenger
• 26% - Class II, 25 mph speed limit Freight, 30 mph speed limit Passenger
• 6% - Class I, 10 mph speed limit Freight, 15 mph speed limit Passenger
• 3% - Excepted track rated
• Strong maintenance of way standards

GLC is Financially Secure!

• Purchased by Federated Railways, a wholly owned subsidiary of Federated
  Financial Corporation of America, in March 2006
• Consistent revenue growth since 1991
• Positive cash flowing operation

GLC is Changing!

• New facilities
• New opportunities
• New Directions

GLC Purchases Owosso Shops

January, 1998 Grand Truck Western Railroad sells the GLC its Owosso property including:

• 4 miles of mainline track through City of Owosso
• Car and locomotive shop buildings
• Storage and work equipment repair facilities
• Dispatch and control office facilities
• 72 acreage inside Owosso city limits

March 31, 2006 Federated Railways purchases GLC

Our New Opportunities

• Sand movement increases
• Owosso Sand transload
• Poly Pavilion
• Cadillac coke transload
• South Boardman freight loading facility
• Two planned Ethanol Plants on line

Poly Pavilion Transload Facility

Poly Pavilion was completed in 1997. It was built to service the entire plastics industry in the northwestern lower peninsula of Michigan via rail to truck transload capability.

GLC has a loyal customer base! To name a few…

• Alma Iron & Steel
• Brown Milling - Grain Products
• Rhe-Tec, Inc. - Plastics & Glycol
• ABC Coke - Coke
• Holcim Cement - Cement Products
• Auburn Bean & Grain - Grain Products
• MAC - Grain Products
• C.O.G Marketers – Liquid Fertilizer
• East Jordan Plastics
• Heritage Grain - Grain Products
• Falmouth Co-op - Grain
• Highland Plastics
• Howes & Howes - Sand
• Petoskey Plastics - Plastic Pellets
• Hydrolake – Utility Poles
• Cherry Growers - Traverse City Cherries
• Terra International - Fertilizer Products
• Northern Dry Bulk - Plastic
• Delta Truss - Lumber Products
• Renosol – Liquid Chemicals
• Integrity Iron - Scrap Products
• North Pacific Lumber
• Wexford Sand - Sand
• Letherer Truss - Trusses
• Superior Fertilizer - Fertilizer Products
• Tonowanda Coke

Great Lakes Central Railroad

Car loadings and revenue growth + Fixed operating expenses =

• Service growth
• Infrastructure growth
• Lowest customer rates
• GLC financial stability
• And a stronger Michigan economic base

Our Story is Basic

Dependable Integrated Transportation Benefits:

• Our growing customer base
• The State of Michigan
• Economic development/Job retention and growth
• The tourist industry
• The commuting public