Automated Container Conveyance as Key New Component of Rail Tech

CONTAINER LOGISTICS

August, 2017

Intermodal Takes Flight TM

How Smarter Short-haul Transfer and Shuttling of Shipping Containers Can Increase Traditional Rail Volume and Improve Port KPI’s.

Insight: One Process Holding Back Industry

Smarter, efficient long-haul trucks

Larger Vessels

Revamped Intermodal Rail

Larger Cranes, Stackers

Intermodal transfer process unaddressed, unresolved…Intermodal transfer process unaddressed, unresolved

Smarter, efficient long-haul trucks

Revamped Intermodal Rail

Lack of investment in drayage and gate clearance technology!

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CONTAINER LOGISTICS

Only Three Ways to Solve The Problem

Typical of may situations, the Port of Santos is at the heart of the Brazilian economy and one of the most constrained infrastructures in the world.Typical of may situations, the Port of Santos is at the heart of the Brazilian economy

1 More Highways, Truck Lanes & Gates

2 Extending Traditional Rail to “on Port”

3 Innovate and Automate

CONTAINER LOGISTICS

BIG IDEA – Automating a Repetitive Process

Current Method Container Port Entrance/Exit Movement Future “Conveyance” Method

Modeled on factory and warehouse automation.Unblock Last Constraint Using Automation AND Unused Airspace.

CONTAINER LOGISTICS

“Conveyance” Method

Robotic Warehouse Technology for Containers

SAME CONCEPT:Automated carriers move individual packets on repetitive routes from pre-set pick-up points to a limited number of destinations.

Dynamic algorithmic routing software determines best order, route, and overall system balance, plus, ensure empty carriers are in the right queues waiting pick-ups.

CONTAINER LOGISTICS

EagleRail is the Global Leader in This New Field

Creating more efficient port and intermodal operations through:

AutomationSmart routingData Centric

Results:Greater ProfitabilitySpeed & Thru-putAccuracyIncreased SafetyCleaner Operations

CONTAINER LOGISTICS

Automating Repetitive High Volumes to Limited, Fixed Destinations Via Robotics.

EagleRail Powered by ZPMC

CONTAINER LOGISTICS

ZPMC, the global leader in automated container port equipment, is building our equipment in their new ‘Smart

Solutions’ automation division. EagleRail will also be included in their global offerings.

EagleRail Powered by ZPMC

ZPMC, the global leader in automated

Traditional Railroad is Not Competition…

Our mission is to deliver to long-haul railroad (and long-haul trucks) faster and smarter than drayage trucking…

CONTAINER LOGISTICS

We will help RR’s meet their “Road-to-Rail” initiatives and give highways and roads back to the public.

But our #1 partner in creating a coordinated short/long delivery system.

Container Conveyance As Short-Line Rail Solution

CONTAINER LOGISTICS

Intermodal Takes Flight TM

System is Built to Feed Long-haul Rail

Logistics Terminal

Improved Deliveryfor Sorting

Direct from Ship

Back-of-Stacks

Design Considerations:▪ Length of track▪ Topo obstacles & height changes▪ Container volumes▪ Loading stations▪ Cycle times▪ Peak loads

CONTAINER LOGISTICS

Improves Unit-Train Building

CONTAINER LOGISTICS

EagleRail Traverses Topographical Challenges

Overhead, suspended track-design stays level over topo changes and passes over other infrastructure and natural impediments, including water.

Over Existing Infrastructure

Inland Waterways & Deep Sea Ports

Uneven Grades and Incline/Declines

MEETS CHALLENGES THAT

GROUND RAIL CANNOT:

CONTAINER LOGISTICS

EagleRail Traverses Topographical Challenges

For example: imagine automated conveyance from the terminals in Valparaiso, Chile to the ZEAL depot.

CONTAINER LOGISTICS

EagleRail Traverses Urban Congestion

CONTAINER LOGISTICS

Automated Overhead Conveyance Connections

A Better Way to Connect Ports, Intermodal Terminals and Rail Loading Zones.

Port with No On-Dock Rail

Intermodal Yard/Rail Head

Automated Short-haul Conveyance Connection

Lengths of 1 Km to 20 Km overhead track with automated, single box carriers.

CONTAINER LOGISTICS

Automated Overhead Conveyance Connections

Overhead system allows for truck and pedestrian traffic to

pass beneath without inhibiting existing operations.

EagleRail overhead system is installed in-and-around key areas of rail loading facilities and interfaces via standard RMG stacking cranes.

CONTAINER LOGISTICS

Rail Cars Load Station

RMGEAGLERAIL BYPASS

LANE

EAGLERAIL UNLOAD

LANE

Elevation View

STANDARD XL RMG STACKING CRANE

EAGLERAIL LIFT & LOAD CRANE

CONTAINER LOGISTICS

Rail Cars Load Station

Rail Car

LOADER LOADER

Rail CarRail Car

Rail CarRail Car

Rail CarRail Car

Rail CarRail Car

Rail CarRail Car

Rail CarRail Car

Rail CarRail Car

Rail CarRail Car

Rail CarRail Car

Plan View

Rail CarRail Car

Rail CarRail Car

Rail CarRail Car

Rail CarRail Car

Rail CarRail Car

Rail CarRail Car

Rail CarRail Car

Rail CarRail Car

Rail CarRail Car

Rail Car Rail CarRail Car Rail Car

Rail CarRail Car

Rail Car

Rail Car Rail Car Rail Car Rail CarRail Car Rail Car Rail Car Rail CarRail Car

EAGLERAIL SWITCH

EAGLERAIL UNLOAD

LANE

EAGLERAIL MAIN LINE

EAGLERAIL SWITCH

EagleRail system integrates in rail-loading facilities and interfaces via standard RMG stacking cranes.

RMG CRANE RMG CRANE

Conveyance Improves the Entire Process

CURRENT MEGA-SORTING AT YARD

SMALLER STACKS VIA REMOTE BUFFERING

Thousands of truck go through port

gates and in-and-amongst stacks

Conveyance system will gather containers at remote buffer terminals and coordinate a ‘smart’ shuttle process.

1-20 KM Network for Container Movement

Container Sources

CONTAINER LOGISTICS

CONTAINER LOGISTICS

Supports Global Push For “Road-to-Rail”

The EU Commission is pushing to replace long-haul truck traffic with rail:

- 30% by 2030

- 50% by 2050

Accelerating Road-to-Rail with New Short Line

CONTAINER LOGISTICS

Reasons to “Buy”:• Efficiency/productivity gains• Space constraints &

congestion relief• Pollution & green efforts• Filling the data black-hole• Feeds long-haul trucking

and RR more predictably

Reasons to “Buy”:Reasons to “Buy”:Reasons to “Buy”:Reasons to “Buy”:Efficiency/productivity gains

Feeds long

Reasons to “Buy”:Efficiency/productivity gains

pace constraints & congestion reliefPollution & green effortsFilling the data blackFeeds long-haul trucking and RR more predictably

Reasons to “Buy”:

•

•

Reasons to “Buy”:• Efficiency/productivity gains

• Feeds longPORT

SEA ACCESS

TOWN CENTER

MAIN ROADS

BEACH & REC. USAGE

URBAN DEVELOPMENT

URBAN DEVELOPMENT

BEACH & REC. USAGE

INLAND TERMINALS

MAIN WATER

WAY

Conveyance Is The Solution:

• Ports Can’t/Don’t Relocate

• Good Ports are Growing (1.5X - 2.0X in Next 5 Years)

• Towns Surround Ports So Expansion is Impossible

• Larger Ships Cause Unload “Bunching” So Berth Property Has to Be “Turned” Faster

• Increased Volumes Have to Go Inland and More Quickly

• Current Roads Can’t Handle Additional Traffic

• Existing On-dock, Short-line to Switching Yards Less Economical

Prototypical Port Town

System Overview

CONTAINER LOGISTICS

Intermodal Takes Flight TM

Technology Components

Motorized Carriers EROS and Eagle iTrack, Rail & SwitchTruss & ColumnLift and Loaders

• Independent, automated motorized container carriers that transport 72,000 lb. containers

• Estimated 2,000+ needed in first three years

• On-going need could be as high as 3,000 per year

• Parts and support network needed

• EROS: EagleRail Operating System

• Overall grouping of all carrier and system software

• Includes Command & Control for basic carrier motion

• And system-wide intelligence for smart container routing algorithms

• Need to study and design universal track standard

• Track should not change with updated system and carrier upgrades and redesigns

• Need to assure customers that superstructure and track will have 50+ year shelf-life

• Currently studying span design, weight and length options

• Column heights dictated by obstacle crossings

• Design and material selection dictated by local conditions

• Fabrication will be locally driven, sourced

• Three types of system are needed:

- Main unit mobile, high-volume

- Main unit fixed, high-volume

- Mobile, drivable unit with low-to moderate-volume

CONTAINER LOGISTICS

EagleRail Technology From ZPMC

CONTAINER LOGISTICS

EagleRail carriers, lifting equipment and switches to

be manufactured in Shanghai at same ZPMC factories as STS cranes,

straddle cranes and AGV’s.

equipment and switches to

straddle cranes and AGV’s.

Backbone: Eagle-i Proprietary Software

Vessel Stowage Manifest

Terminal operating System (TOS) Software

Intermodal Planning & Routing Software

Bringing Modern Warehouse Shipping & Tracking Software

to the Ports

Shipping Lines

Port Operators

EagleRail

Long-haul Trucking & Railroad Co.

CONTAINER LOGISTICS

EagleRail

Port Intelligence with VisionTM

1. Intermodal & Port Cultural AlignmentCorporate operating and management culture of ‘Safety First’: on dock, in yard and in office

2. Continuous Monitoring of Suspended LoadContinuous position and twist-lock status monitoring for both loaded and empty carriers when on rail

3. Anti-Collision & Avoidance SystemsEnsuring containers never enter into each other’s safety zone

4. System-wide Redundant Safety Measures Multiple safety measures at every human/infrastructure interface point in the operating system

Safety is Job #1

CONTAINER LOGISTICS

Market & Governmental Relationship Progress

CONTAINER LOGISTICS

Intermodal Takes Flight TM

Market Acceptance

South Africa –ERSA

Port of DurbanM.O.U. in Negotiations

Researching Financing Options & Route

Brazil – ERBR

Port of Santos Feasibility Study

thru DERSA

Pilot system with Embraport or BTP

CSN Steel Plant in Rio/Sepitiba

China – ERC

JV with ZMPC

Pilot system in Shanghai, China by

2018

Selling to Chinese ports now

Other Markets

U.S. – Southern & S.E. Ports

India

Colombia

Panama

Spain

CONTAINER LOGISTICS

International Gov’t. & Banking Relationships

The African National Conference (ANC)

Transnet South Africa

Southern African Development Community (SADC)

South African Department of Trade and Industry (DTI)

Transnet South Africa

Development Bank of Southern Africa (DBSA)

Brazilian Infrastructure Investment Program (ELP)

Brazilian Federal Ministério dos Transportes

MRS National Railroad

Port Authority of Santos, BR -CODESP

Financial Lenders Brazil

U.S. Federal Maritime Administration (MARAD)

U.S. Dept. of Commerce Commercial Services

U.S. Trade and Development Agency (USTDA)

United States Chamber of Commerce

The World Bank

Global Green Ports & UN Relationship

✓ Strengthening Global Supply Chain with More Data and Tracking

✓ Improving Container Check-in, Check-out and Customs and Border-crossing Speeds and Efficiencies

✓ Creating Cleaner Ports: Green-ovation

✓ Higher-Tech and Gender-Equality Jobs

✓ Increasing Safety In and Around Ports and Intermodal Yards

✓ Improving Hand-offs to Rail and Trucking Industry

CONTAINER LOGISTICS

Smart Cities Council Membership

CONTAINER LOGISTICS

EagleRail Has Been Actively Courted to Join This Elite Group of

Global Leadership Companies.

EagleRail Co-creates Int’l Study Group

CONTAINER LOGISTICS

Bridging the Blue Economy aims at fostering the connection between Research Centers and Private Sector towardsSustainable Ports. We look for an integrated approachconsidering both profitableand sustainable solutions.

EagleRail is optimal solution for deep-water container retrieval and requires no road or rail bed.

The Right Solution

CONTAINER LOGISTICS

Intermodal Takes Flight TM

Why EagleRail Works

A better option for short-haul container movement in the port and intermodal space is greatly needed, and the market is ready to accept it. Even drive it.

Traditional rail can help to make this happen.

o Truck congestion getting worse

o Intermodal and port KPI’s under extreme pressure

o Accelerated ‘intelligent automated handling’ in all industries

o Expanding roads not a reality

o Feeds long-haul rail efficiently

o Improved road safety and environmental sustainability

o Infrastructure and job creation

CONTAINER LOGISTICS

Right Industry. Right Time

Market Need Market TimingMarket Size

All Players Aligned on Goals Automation Investment RaceLarge, with Endless Growth

Public and private sectors bothdemand change in congestion,

efficiencies, & pollution.

Over $5.5 Billion invested annually in port automation

hardware & software.

Container ships, and shipping volume, grows even in economic downturns.

CONTAINER LOGISTICS

Right Idea for the Planet & Its People

Developmental Needs Social ProgressEnvironmental

African, Asian, So. American & Indian Sub-continent

Investing in Human CapitalCleaner, Greener Ports

Developing economies are seeking port improvement to

supply growing middle classes.

Replacing drayage toil with smarter jobs, more skills and

female empowerment.

Dirty diesel-truck elimination greatly reduces pollution of port

air, land and water.

CONTAINER LOGISTICS

Valter Calamita – Chief Financial Officer/Brazil LeadValter.calamita@eaglerail.com

Carlo Marzano – New Business Development BrazilCarlo.marzano@eaglerail.com

Jayme Kurtyka – Executive Director Corporate Financejayme.kurtyka@eaglerail.com

For Investment Information:

CONTAINER LOGISTICS

Intermodal Takes Flight TM