american commercial lines (“acl”) - mission...

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• Operating since 1915• Over $1B in revenues• Over 3,300 employees• 2,440 dry barges, 384 tank

barges and 162 towboats• Leading transporter of dry and

liquid commodities• Leading manufacturer of marine

equipment• Leading provider of environmental

and industrial services• Leading marine architectural and

engineering firm

American Commercial Lines (“ACL”)A fully integrated marine transportation company

33

Recent Highlights

• Top 50 Indiana Companies1 in 2007

• Top 25 stocks in 20062

• Top 5 IPO’s in 20053

• Best safety record4 in the industry

• Recognized by the Indiana Department of Environmental Management for its environmental stewardship programs in 2007

• Established Liquids Division Headquarters in Houston, TX

• Strategic acquisitions in Environmental Consulting and Naval Engineering and Marine Architectural Services

1 Indiana Business, June 2007 2 Wall Street Journal3 Forbes, March 13, 20064 Safety Data – American Chemistry Council Responsible Care® Partnership Program

Inland Barging

55Source: American Trucking Association (2005 “Forecast” Report); U.S. Bureau of Transportation Statistics

Water transportation moves one-sixth of the tonnage in the United States annually

3.78 Trillion Domestic Ton Miles

Railroad39.8%

Truck28%

Water16.5%

Pipelines15.3%

Air0.4%

66

Minerals & Stone

18%

Metals & Ores

5%

Chemicals &

Petroleum30%

Grain & Agricultural

Products15%

Coal29%

Other3%

Inland barges move critical commodities and bulk freight to many U.S. markets, including ports for export

Barge Industry

Source: Informa Economics Barge Commodity Profile March, 2007

Barge Network

580 Million Tons

77

Marine Equipment

Tow Towboat Covered Hopper Barges

Tank Barge

88

Barges in Operation by Year of Construction

• Approximately 17,900 dry cargo barges in operation today

• 21% of the existing barges were built for the Income Tax Credits (ITC) of 1979 - 1981

• Average barge life is 25 - 30 years

• 2007 is 9th consecutive year of dry cargo fleet reduction with an additional 3,750 barges forecasted for retirement over the next 5 years1

Dry Cargo Barges Tank Barges

• Approximately 2,800 tank barges in operation today

• 17% of the existing tank barges were built for the Income Tax Credits (ITC) of 1979 - 1981

• Average tank barge life is 30 – 40 years

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Dry

Barg

es

1972

1980

2006

ITC

0

50

100

150

200

250

Tank B

arg

es

1972

1980

2006

ITC

Source: Informa Economics Long-Term Outlook Update, December 2007

99

Lowest cost, cleanest & safest mode of transportation

Sources: Texas Transportation InstituteU.S. Army Corps of Engineers.

Carbon monoxide pollutants (in grams produced per ton mile)Injury rate per billion ton miles

Safest 5.814

Cost per ton-mile (cents) 0.72¢ 2.24¢ 26.61¢

Reliability

Available Capacity 40 – 50% ? ?

Ton mile per gallon of fuel

-

16 Railcars 70 Truck TrailersEquivalent Units 1 Barge

Lowest Cost

576 413 155

Cleanest - Carbon Monoxide 0.046 0.064 0.136

Injury rate 0.045 99.044

= =

- Industry ? 70-80% 95%+

- ACL 80 – 90% - -

1010

Infrastructure issues affect all transport modes

• Transportation Research Board projects 70% increase in nation’s output of goods and services by 2020

• Truck traffic will increase by 67% • Estimated annual cost to maintain current highways

and bridges 2005-24 is $80 billion• Rail traffic will increase by 88% over the next 30 years• AAR says rail will need to spend $148B over the next

28 years• Corps of Engineers says $8B - $9B needed over next

30 years

Transportation Research Board: Freight Capacity for the 21st CenturyAmerican Association of State Highway and Transportation Officials: Freight-

Rail Bottom Line ReportAAR/Cambridge Systematics Inc. September 2007

1111

ACL is THE leader in the Industry

American Waterways Operators, ViceChairman Inland Liquid SectorCommittee & Board of Directors

Waterways Council Inc., MembershipChairman & Executive Committee

U.S. Chamber of Commerce,Transportation & InfrastructureCommittee, Board Member

Jim Adams, Vice President Governmental Policy

Clayton Yeutter, ChairmanACL Board of Directors

Senior Advisor, InternationalTrade, Hogan & Hartson L.L.P.

Former Secretary of Agriculture;U.S. Trade Representative;President and CEO of theChicago Mercantile Exchange;Former board of directors: B.A.T.Industries; ConAgra, Inc.; FMCCorporation; Texas Instruments,Inc.; Weyerhaeuser Company

Manny Rouvelas, DirectorACL Board of Directors

Partner, Kirkpatrick & LockhartPreston Gates Ellis LLP (K&LGates) recognized authority inocean shipping law

Former counsel to the U.S.Senate Committee on Commerceand chief counsel to its MerchantMarine and Foreign CommerceSubcommittees

River Industry Executive Task Force, Chairman

Former board member AmericanWaterways Operators, WaterwaysCouncil, Inc., ORSANCO, NationalWaterways Conference

Mike Monahan, Sr. Vice President Transportation Services

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ACL is THE leader in the Industry

USCG Towing Safety Advisory Committee (TSAC), Chairman

TSAC Towing Vessel Inspection Work Group, Chairman

Western Rivers Maritime Security Committee (WRAMS), ExecutiveSteering Committee

Area Maritime Security Committee, Co-Chair, Sector Louisville

AWO Towing Safety Steering Committee

Responsible Care® Partnership

IN Department of Environmental Management (IDEM), Partners for Pollution Prevention, Executive Committee

KY Excel Program, Master Level Member

IN Environmental Stewardship Program, Charter Member

Living Lands and Waters, Inc., Major Sponsor

Sam George, Vice President Environmental Compliance

Mario Munoz, Vice President Regulatory Compliance

Society of Naval Architects and Marine Engineers (SNAME), Fellow & Section Librarian

Passenger Vessel Association (PVA), Regulatory & Access Committees

AWO, Member

Offshore Marine Service Association (OMSA), Member

John Waterhouse, President Elliott Bay Design Group, LLC

Founder of Summit Contracting, LLC, a nationwide environmental services and civil contracting company

Engineering expertise in heavy construction projects involving transportation infrastructure

Expert in environmental emergency and catastrophic response services

Eric Dodd, President & CEOSummit Contracting, LLC

American Commercial Lines

1414

10.2x

11.6x

5.0x

1.8x

0.6x

2.73x

0

2

4

6

8

10

12

2002 2003 2004 2005 2006 2007

Our financial performance demonstrates stability and financial strength

$670

$584 $602

$715

$943

$1,050

$0

$200

$400

$600

$800

$1,000

$1,200

2002 2003 2004 2005 2006 2007

$64 $61$82

$111

$212

$161

$0

$50

$100

$150

$200

$250

2002 2003 2004 2005 2006 2007

EBITDA

Revenue($MM)

Debt-to-EBITDA

($MM)

1515

Transportation Services Division • We provide tailored services to a wide variety

of shippers

• Our barge operations are complemented by fleet management, marine repair and maintenance, cleaning and port services

• We offer product transfer services in key markets: Houston, Baton Rouge, Chicago, St. Louis, Memphis, and Louisville

• We provide logistics services in partnership with our customers to supplement our transportation network

1616

We develop transportation solutions for industry-leading companies

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• Located on the Ohio River, Jeffboat is the largest inland shipyard in the United States and is a leader in marine design and construction

• Lean manufacturing initiatives drive efficiency and productivity

• Jeffboat is one of two leading manufacturers of barges

• Industry leader in safety

Manufacturing Services Division

1818

Professional Services Division

Detailed Design & LoftingNaval Architecture & Marine Engineering

Environmental & Civil Engineering

Industrial Development

Telematics Hardware – GPS Positioning

1919

ACL is investing substantial capital in the business

$24$34 $37

$23

$56$67

$13$9

$13

$90

$122

$47

-$10

$10

$30

$50

$70

$90

$110

$130

$150

2002 2003 2004 2005 2006 2007

Cap

ital E

xpen

ditu

res

New Builds Maint. & Rehab Capex Acquisitions

$12

($MM)

• Facilities in strategic locations (Houston, Lemont, Baton Rouge, Cairo, Louisville) have undergone complete renovations and expansion to accommodate customer needs

• In 2008 new tank barge builds will add 900,000 barrels of new capacity to our liquid fleet

Houston, TX fleet facility

Chicago area terminal & warehouse facility

2020

ACL Liquid Barge Fleet

10

15

20

25

30

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Avg

Age

(Yea

rs)

ACL Liquid Tankers Industry Tanker Age

Source: Informa and Company estimates

ACL Covered Hopper Fleet

10

15

20

25

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Avg

Age

Covered Hoppers Industry Hopper Age

Source: Informa and Company estimates

• ACL liquid fleet averages 18 years vs. industry average of 24 years

• ACL dry fleet on track to be newer than industry average in 2008

Building a first class fleet

Strategic Value Map

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Transform ACL from a barge operator and manufacturer into a Transportation Company serving the evolving needs

of the marketplace

SafetyAsset UtilizationYield Management PeopleSOX Compliance

Process DevelopmentIntegration PlanningExecution

Expand MarketsAccount PenetrationNew Products & ServicesCustomer ServiceEnhance Portfolio MixInnovation

Phase IAchieve Our

Potential

Phase IIOrganic Growth

Phase IIIInorganic Growth

Strategic Priorities

2323

0

5

10

15

20

'92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07

ACL Transportation ACL Manufacturing

Phase I: The Best Safety Record in the Industry

• Manufacturing Industry average rate was 10.7 as of December 2006

• Transportation Industry average rate was 2.5 as of September 2006

Inci

den

t Rat

e

*ACL data as of December 31, 2007

1.833.54

Crew members of the M/V Bill Carneal commended for their Mississippi River rescue of a family from a capsized boat

USCG Tankerman licensing class graduates from SGS Training

Center in Baton Rouge, LA

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0

1,000

2,000

3,000

4,000

5,000

6,000

2002 2003 2004 2005 2006 200711.5

12.0

12.5

13.0

13.5

14.0

14.5

15.0

15.5

ACL Domestic Barges Operated Millions of Ton-Miles per Barge

Fleet efficiencyimprovements

Phase I: Fleet Utilization

• Only barge line in industry building reliability and accountability which is competitive with both truck and rail

• Established scheduled service during 2007• Attained over 86% on-time delivery performance in 2007

AC

L b

arg

es

op

era

ted

To

n M

iles p

er B

arg

e (m

illion

s)

2525

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07

Phase I: Investing in our people

• Turnover remains low despite 26% increase in headcount during last two years

• People will go where they are welcomed and stay where they are well treated

Employee Turnover

2626


of the marketplace




Phase IAchieve Our

Potential




2727

Liquid24%

Grain32%

Bulk28%

Steel8%

Coal8%

Liquid27%

Grain25%

Bulk31% Steel

9%

Coal8%

Liquid40%

Bulk20%

Grain10%

Steel5%

Emerging Markets

5%

Coal20%

Phase II: Organic Growth Strategy

2006

• Objective is to double liquid revenue, double coal revenue and halve grain revenue over a three year period

Transportation Revenue

2007 2009

2828

Project Cargo

Phase II: Organic Growth, Emerging Markets

Rail Conversion

“Breaking the Mold”

2929


of the marketplace




Phase IAchieve Our

Potential




3030

Inorganic Growth:

• Enhance Market Leadership Position– Consolidation in complementary barge operating and manufacturing markets

• Leverage Manufacturing Capacity– Expand manufacturing portfolio to include diversified sectors within and outside of

transportation equipment

• Expand into Additional Modes– Leverage overlapping networks, supply chains, and customers currently served by

barge through multi-modal expansion

• Diversify and Broaden Service Offerings– Move up and across the transportation supply chain to include “non-asset” and

“asset-light” models. Additional opportunities exist to broaden offerings inancillary services, environmental, engineering, finance, and commodities.

Opportunities presented by mergers, acquisitions and new strategic partnerships are what we call inorganic growth

Phase III: Inorganic Growth

3131

Inorganic GrowthRecent and future acquisitions will create value by aligning with our business strategy

McKinney Towing: February 2007• Doubles size of ACL operation in the Gulf region• Increases ACL operated fleet by 27 boats and adds

over 200 new employees

Summit Contracting LLC: May 2007• Fast-growing environmental engineering and civil

contracting company• Provides critical services in the transportation and

energy sectors, including: emergency response, environmental remediation, dock construction and many other civil and environmental areas

Elliott Bay Design Group: October 2007• Industry-leading naval architecture and marine

engineering firm• Known for innovation in boat and barge design, vessel

manufacturing and marine engineering

2007 TransactionsStrategic Opportunities

Diversified Transportation

& Manufacturing

Inland Barge & Towing*

Shipyards

3PL & Logistics

Diversified Transportation

Ports & Terminals

Diversified Manufacturing

Naval Architects*

Other Services*

* 2007 Transactions

3232

This is truly an exciting time to be part of ACL

We are committed to our strategy for success through:

• Achieving Our Potential

• Organic Growth

• Inorganic Growth

Our strategy will result in significant opportunities for employees, strong earnings for our shareholders and the advancement of our industry. Each of us is empowered for success.

3333

This presentation includes certain “forward-looking statements” within the

meaning of the Private Securities Litigation Reform Act of 1995. These

forward-looking statements are based on management’s present expectations

and beliefs about future events. As with any projection or forecast, these

statements are inherently susceptible to risks, uncertainty and changes in

circumstance. Important factors could cause actual results to differ materially

from those expressed or implied by the forward-looking statements and should

be considered in evaluating the outlook of American Commercial Lines Inc.

Risks and uncertainties are detailed from time to time in American Commercial

Lines Inc.’s filings with the SEC, including its most recently filed Form 10-K

and Form 10-Q. American Commercial Lines Inc. is under no obligation to,

and expressly disclaims any obligation to, update or alter its forward-looking

statements, whether as a result of changes, new information, subsequent

events or otherwise.

Forward Looking Statements

american commercial lines (“acl”) - mission...

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