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I.T.T.S Freight in the Southeast Conference February 10 , 2011 David S. Congdon

I.T.T.S Freight in the Southeast Conference February 10 , 2011 David S. Congdon President, C.E.O. Old Dominion Freight Line, Inc. ODFL Overview. 6 th largest LTL (Less than truckload) -Founded 1934 214 Service Centers – 11,000 FT Employees

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I.T.T.S Freight in the Southeast Conference February 10 , 2011 David S. Congdon

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  1. I.T.T.S Freight in the Southeast Conference February 10, 2011 • David S. Congdon • President, C.E.O. • Old Dominion Freight Line, Inc.

  2. ODFL Overview • 6th largest LTL (Less than truckload) -Founded 1934 • 214 Service Centers – 11,000 FT Employees • OD Domestic - Multi-regional, inter-regional, 48 state coverage • OD Global – 48 states to/from the world • 5,800 power units – 388 million miles – 64 million gallons of fuel • 21,000 - 28’pup trailers over the road • Sustainability/Green trucking are obviously key focal points

  3. ODFL Green Initiatives forPower equipment • Smartway certified • Aerodynamics since 1971 • Most efficient engines & equipment available • LRR Tires and automatic tire pressure systems • Driver training – Fuel Efficient driving techniques • Peoplenet Onboard system – Driver metrics, route optimization, E-Logs • Maximize cube utilization - Load bars, bags, straps • Load & route optimization software – 15 yrs. • Triple 28’ trailers where allowed (more later)

  4. BOTTOM LINE • We are utilizing every proven means available to us as a fleet operator • Professionally managed LTL and large T/L fleets are too • Increasing vehicle productivity by allowing for increased size and weight is the only meaningful lever left to pull !!

  5. Tremendous Challenges ahead • Growing U.S. population – 2.6 million per year driving more consumer demand • Inevitable we will have more cars, trucks, congestion if nothing changes • Nothing?? – Unacceptable – last 20 years • Add highway capacity with focus on bottlenecks – expensive & time consuming but has to be done • Improve productivity of ALL existing modes !

  6. "Get more trucks off the highway" • “Shift more freight to rail” – Common theme • Shippers, consignees, consumers • Want everything now! We’re in a hurry! • Shippers consider total supply chain cost – 1st and last mile $$, rail intermodal$$, inventory carrying $$, etc. vs. door to door LTL or TL • In many cases intermodal works – not THE answer. • Great idea and we endorse ! – But will this realistically solve the problem ? • MORE PRODUCTIVE TRUCKS will get trucks off the highway !!

  7. Facts about LTL service • LTL Customers demand tight door to door transit times • Next day up to 600 miles • Second day up to 1,400 miles • Third day up to 2100 miles • 4th & 5th – beyond 2,100 miles • For OD, we have found rail intermodal works only in long haul, head haul lanes, over weekends, end of the month/quarter surges • Trucks are the only answer for “first and last mile”

  8. Facts about LTL service • 28’trailers are most efficient in LTL network from cost and transit time standpoint • OD utilizes100% 28’trailers in line haul • Doubles everywhere (97% of line haul miles) • Triples where allowed in western states • Very typical of LTL industry • In LTL environment we cube out trailers before weigh out. ODFL total GCW averages 64,000 lbs • Triples avg 90,340 GCW spread over 32 more ft • WE’VE GONE AS FAR AS WE CAN GO AND NEED THE EXPANDED USE OF TRIPLES !!

  9. Legislation IS the bottleneck The Problem • 1991 - I.S.T.E.A froze states from allowing more productive vehicles – 20 years ago!!! • Times have changed!! – Nation’s needs have changes It’s time to free up that legislative bottleneck ! The Solution • Lifting the freeze, allowing more use of triples provides proven and significant benefits ! • Benefits are IMMEDIATE, SAFE, and require negligible cost or capital investment.

  10. BENEFITS - Triples • Reduced trucks & congestion • OD’s experience - D.O.T. accident ratio is 13% better on mileage and 20% on tonnage • Fuel consumption - Ton mpg improves 20 – 25% • Reduce Carbon & GHG emissions • No impact on highway infrastructure • Negligible capital or operating costs increase • Shippers / Consumers will benefit • Productivity improvement and benefits are IMMEDIATE !!

  11. Now I want to prove it ! ODFL only, just 1 month

  12. ODFL BENEFITS - Triples • One month – July 2010 at ODFL • Just these 10 selected routes would save 2.84 million miles ONE MONTH - 10% of total miles • Annualized 5,672,700 gallons of diesel !! • 62,967 tons of carbon per year !! • 9.6 % fewer trucks on the road – 4,825 per month • JUST 1 FLEET, 10 routes, one slow month • WHAT IF all interstates and all LTL carriers???

  13. What we need from you • Recognize that allowing more productive trucks is a big part of the answer to our nation’s current and future freight transportation problems • Recognize that this solution is IMMEDIATE, SAFE, and will provide economic benefits to shippers and consumers • Help us dispel unfounded perceptions and change legislation to allow MORE PRODUCTIVE TRUCKS !!

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