CANDO RAIL SERVICES

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CUSTOMERS

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WHAT IS OUR BEST MARKETING TOOL?

Our present blue-chip customers!

Forest Products

▪ Domtar –Dryden, ON and Rothschild and Nekoosa, WI

▪ Resolute Forest Products – Thunder Bay, ON

▪ Aditya Birla – Terrace Bay, ON

▪ West Fraser – Hinton, AB

▪ Georgia Pacific - Crossett, AR

Energy and Chemicals

▪ ExxonMobil/Imperial Oil Ltd. – Edmonton, AB,

Hay River, NT and Bird’s Hill, MB

▪ Shell – Ft Saskatchewan, AB and Winnipeg, MB

▪ Pembina Pipeline Corp – Redwater, AB

▪ Inter Pipeline – Redwater, AB

▪ Gibsons Energy – Edmonton, AB

▪ Parkland Fuel Corporation – Hamilton and Milton, ON

▪ Co-Op Refineries – Regina, SK

▪ Tundra Crude to Rail Facility – Cromer, MB

Automotive

▪ Magna International – St. Thomas and Milton,

ON and Bowling Green, KY

▪ Toyota – Cambridge and Woodstock, ON

Potash, Fertilizer and Grain

▪ Mosaic – Belle Plaine, Colonsay and Esterhazy,

SK

▪ Nutrien – Allan, Vanscoy and Rocanville, SK

▪ Cargill – Clavet, SK

Intermodal and Railway

▪ CP Vaughan Intermodal Terminal – Vaughan,

ON

▪ Central Manitoba Railway (CEMR)

▪ Barrie-Collingwood Railway (BCRY)

Who gives us the most referrals? CN and CP do because our service enables them to be successful as well.

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• Railcar switching, unloading, product blending and inventory management

• Customized transportation solutions from rail-to-truck or truck-to-rail

transloading to facility management

• Material handling - Handle a wide range of industrial products including

bulk petroleum products, chemicals, dry bulk and lumber

• Various value-added support services including inventory management,

quality control sampling, car tracking, consist tripping, car inspection,

repair and cleaning

• Cross trained/composite employees

• Track inspection and light track maintenance

• Yard maintenance – vegetation control, yard clean-up

• Railcar storage network across Canada providing storage, staging and

multiple value-added services

• Quasar platform – industry leading supply chain technology

RAIL SERVICES OVERVIEW

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FOREST PRODUCTS HIGHLIGHTS• 85-100 Cando employees work in forest products operations

• 10-12 Cando Locomotives and 3 TrackMobiles deployed

• Cando handles over 5M tons of forest product including pulp and paper,

wood chips, lumber and chemicals

• Winnipeg Lumber transloading – 3.5M board feet per month or 42M

board feet annually

• Lumber transloading operations touch every lumber producer in

Canada

• Our Kamloops, BC Rail Terminal can provide the same lumber

transloading services as well

• Cando connects with CN, CP, and BNSF in Canada and has extended

reach through our customer locations and inter-switching with all Class

1’s

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WINNIPEG LUMBER TRANSLOAD

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PULP & PAPER RAIL SERVICES• All in-plant railcar switching – tank cars, covered hopper cars, box cars,

wood cars and weighing cars as required

• Railcar air testing, marshalling and blocking services

• Railcar cleaning/preparation and light railcar repair (doors and floors)

• Container/trailer shunting services

• Warehouse loading and shipping services, including photography

o Designed loading patterns for all car types

• Shipping Supervisor – SAP Super User and Trainer, Special Projects

• Cross trained/composite employees

• Track inspection and light track maintenance

• Yard maintenance – vegetation control, yard clean-up

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WOOD YARD

BEFORE AFTER

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PULP & PAPER ADVANTAGE• Expertise in the industry

• Thorough understanding of the critical mill process systems and are

able to adjust priorities to flow to the work

• Experience handling hazardous materials related to the paper-making

process i.e., caustic soda, Sulphur, turpentine, starch, lime etc.

• Experience in SAP and LIMS (Log Inventory Management System)

• Complete understanding of all safety and environmental policies related

to the paper industry

• Provide dedicated service to optimize efficient operations across mill

internal customers

• Develop customer relationships with emphasis on long term

partnerships

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FUEL TERMINALS AND TRANSLOADING

• We provide rail services to refineries, fuel terminals and transload

operations

• We handle diesel, gasoline, ethanol, biodiesel and execute blending

operations to produce E10 and B20

• Hamilton, ON – 1.1M litres/day or over 400M litres annually

• Milton, ON – 1.1M litres/day or over 400M litres annually

• Winnipeg, MB – 450K litres/day or over 18M litres annually

• Looking at building another 3 fuel terminals in Ontario

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HAMILTON FUEL TRANSLOADING

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MILTON FUEL TRANSLOADING

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WINNIPEG FUEL TRANSLOADING

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CANDO SAFETY CULTURE• Cando’s Safety Management System (SMS)

o CEO is the Accountable Executive

o Annual Safety Policy Review

o Rules and Regulatory Compliance

o Identification and analysis of safety concerns

o Risk Management Process

o Targets and Initiatives

o Continuous Improvement

• TrackSmart

• Cando Safety Centre – Innovative Industry Leading Software

o Efficiency testing

o Crew evaluations

o Incidents

o Training

• Award Winning Employee Safety Education Program16

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CANDO SAFETY CULTURE

Safety Recognition

• Winner of the Imperial Contractor Gold Safety Award Q2 2018

and Silver Safety Award winner Q2 2017. Cando recognized out

of over 200 embedded contractors.

• Winner of a number of CN and CP Safe Handling (Transloading)

awards, i.e. zero Non-Accidental Release (NARs)

• Railway Association of Canada (RAC) 2018 National Safety

Award for behavior-based safety culture training

• Industry leading Safety Management System

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Domtar - Rothschild, WIDave FaucettMill Manager715-212-4432

Domtar - Nekoosa, WIMartin BurkhardtMill Manager715-252-3006

Georgia Pacific – Crossett, ARMarty HiltonProduct System Leader870-500-8007

Magna InternationalBowling Green, KYBrian ParkMaterials Department Leader270-901-1555

The Mosaic CompanySenior Manager, North AmericanRail TransportationDavid Kirkpatrick813-500-6561

Imperial Oil - Edmonton, AB

Strathcona Refinery

Jason Nixon

Refinery Rail Superintendent

780-668-6857

Nutrien - Allan, SKMill SuperintendentKarl Antaya306-257-5366

West Fraser Hinton, ABTransportation and Warehouse ManagerTodd Erickson780-865-8116

REFERENCES

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CANDO ADVANTAGE▪ Industry-leading safety performance

▪ Improve productivity of the facility – ensure switching success

▪ Industry-leading yard management inventory system

▪ Improve cycle times of the car fleets

▪ On-site railcar cleaning and repair (reduction of empty freight costs)

▪ Reduction/elimination of demurrage costs

▪ Eliminate additional ancillary charges e.g. 2nd switch costs

▪ Dedicated assignment – reduce requirement for capital capacity expansion

▪ Provide light track maintenance and monthly inspections

▪ Provide 1 to 4-year capital track maintenance plan

▪ Strong working relationship with Class 1s

▪ Strong relationship with the regulators

▪ Mainline capability

▪ Turn-key service package – comprehensive start-up plan

▪ Enables customer to focus on core activities of production

▪ Predominant rail service provider in Canada and growing in the US

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CANDO RAIL SERVICES’

GOAL IS TO BE YOUR PREFERRED

RAIL SERVICE PROVIDER.

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