b'SEPTEMBER 13 - 26, 2021INTERMODAL 17(DISCLOSEScontinuedworse when the Union Pacificresult in reducing congestion(TRUSTScontinued fromannouncedamergerproposal from page 16) announced it was suspendingand increasing fluidity in thepage 6) backinMarch,priortothe FritzacknowledgedtheserviceJuly18thforsevenrail system. though it was lower, althoughCN bid, will be able to work problem in the July 22nd call:daystoclearthebacklogMichaelSussman,presi- itisworthnotingthatanythrough the details within that Whileourfinancialresultsofthousandsofcontainersdent of Strategic Rail Financemerger would still require aperiod, or at all. were impressive in the secondstackedinChicagosoastoInc,advisesclientsonrail- STB review before signoff. Whilebuildingaconti-quarter, our customers felt thereducethebacklogofinter- related projects. He also headsCPPresidentandCEOnentalrailwaywithareach impactofintermodalsupplymodaltrainsarrivingfroma transportation think tank.was quoted in a press releasethroughtheMidwesttothe chain disruptions and costly railWest Coast ports. Sussman toldAJOT thatassaying,Welookfor- U.S.Gulfisdesirablethere equipmentincidents.WithinThesuspensionpromptedClass 1 railroads, such as UP,wardtore-engagingwithare many that feel that KCS theintermodalspace,weveone Northern California freightneed to move away from thethe KCS Board of Directorsdeal for either Canadian rail-takennumerousactionstoforwarderconsultanttocom- PSRmodelandgobacktotoadvancethisuniqueandroadisover-priced.Further, mitigate the customer impact,plainitissimplyamess.Itraditional railroading: achievable Class 1 combina- that it doesnt serve the inter-and are actively working withdont even touch any rail book- One might think the Classtion that provides compellingestsofCanadianshippers. all parties in the supply chain.ing with a ten-foot pole. 1railroadswoulddirectlyshort-andlong-termvalue.There is also some feeling in Even so, its likely these issuesAnotherCaliforniafor- support and even fund theseCP-KCSistheonlytrulythe U.S. that the interests of willpersistthroughtheendwarder said that a client gotindustrieseffortstoaccessend-to-endClass1mergerU.S.railshippersalsomay of the year, as the capacity tosodesperateduetoarail- theirnetworksasaformofthatpreservesandenhancesnotbenefitfromthemerger move boxes from our ramp toroad delaying the loading ofbusinessdevelopmentandcompetition.Itistheper- to either Canadian railroad. the final destination falls shortcontainersfromaSoutherncustomerservice.Thattypefect combination, and we areStill, the KCS is a unique of demand. Californiaportthatthefor- offinancialsupportintheready to go to work to unlockrail asset in North America. Its Fritz, however, defendedwarder ended up trucking thescopeandscalerequiredisthis unique opportunity, cre- internationalholdingsinclude PSR: I want to make sure wecontainers from California tonot forthcomingatingsomethingspecialforKansasCitySouthernde dont miss on the call. Wevea Midwest customer at a costAsaresult,PSRisthethe rail industry and for com- Mexico,S.A.deC.V.,serv-talkedaboutthetransitoryofthousandsofadditionallogical outgrowth of the Classmerce in North America. ingnortheasternandcentral issuesthatwevegottenindollars and at the forwarders1railroadstrategies:PSRA September 12th deadlineMexico and the port cities of thenetwork,weshowedown expense. strategies succeed by decreas- has been put on the deal by CP.Lzaro Crdenas, Tampico and someoftheservicereflec- Union Pacifics responseingoverheadexpenseandAt this writing it isnt certainVeracruz, and a 50% interest in tions of that. But PSR and theisthatthesuspensionwillincreasing asset utilization.that CP and KCS, which hadPanama Canal Railway Co. factthatwevetransformed our railroad has us in a whole differentballparkofperfor-mancethanthesekindsof issues would have us in three, four, five years ago. And we shouldnt miss that.JeffKauffman,anana-lystidentifiedwithVertical ResearchPartners,asked Hamann a follow up question about the $7 billion in which sheemphasizedthefunds weretobeusedforshare repurchases and not work-ingcashflowgeneration.CLOSERHere is the exchange:Jennifer Hamann: Well, Jeff, just to clarify, when we talkedaboutthe$7billion thats related to share repur-chases,notworkingcash flow generation.Jeff Kauffman: Oh, okay.JenniferHamann:And,ON THE COLUMBIA RIVER IN WASHINGTON STATEand as you know, we are usingFASTERourbalancesheetandour EBITDA[EarningsBefore Interest, Taxes, Depreciation, and Amortization] growth to be able to fund some of that share repurchases. So, I ref-erenced we did the $2 billion in May, and that was fundedDIRECT CONNECTIONS TO MAINLINE RAIL & INTERSTATE HIGHWAYSthrough debt issuance. So, weSMARTERdoseecashgrowing.Some ofthatintermsofthefree cashflowfallisimpacted by the fact that we did have, andImentionedthisinmy remarks, taxes year-over-year relative to the Cares Act are higher and impacting some of that free cash flow a little bitSTORAGE OPTIONS & FOREIGN TRADE ZONE SPACEmore. But the comments onBETTERthe $7 billion were specific to share repurchases.Jeff Kauffman: Now that answersmyquestion.Ijust couldnt get the math to work. So thank you.Delaysintrainsleaving fortheirdestinationfrom thePortsofLosAngelesON-DOCK RAIL & DUAL-SERVED BY BNSF & UPandLongBeach,rosefrom 7.9 days in January of 2021 to11.8daysinJune,2021, according to the Pacific Mer-chantShippingAssociationCONTACT US AT [email protected] | PORTOFLONGVIEW.COMJuly, 2021 report.Thesituationgoteven'