Indiana Logistics Summit 2007

U.S. Barge Transportation – An Overview

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3.76 Trillion Domestic Ton Miles3.76 Trillion Domestic Ton Miles$739 Billion Transportation Market$739 Billion Transportation Market

Source: 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

Railroad39.8%

Truck 28%

Water16.5%

Pipelines

15.3%

Air0.4%

Railroad6.6%

Truck84.2%

Water1.3%

Pipelines

4.7% Air3.2%

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With over 25,000 vessels navigating 12,000 miles of waterway, inland barging makes a significant contribution to the nation’s economy by:

• Contributing over $5 Billion to the U.S. economy annually

• Employing over 500,000 U.S. workers in industries supplied by barging

• Transporting 20% of the nation’s coal and 60% of all U.S. grain exports

• Playing a critical role in the transport of chemical, heating oil, and petroleum products

Source: American Waterways Operators.

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Minerals & Stone

18%

Metals & Ores

6%

Chemicals &

Petroleum32%

Grain & Agricultural

Products12%

Coal30%

Other2%

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

595 Million Tons

Key CommoditiesKey Commodities

Source: 2005, Informa Economics Barge Commodity Profile

U.S. Inland Navigation SystemU.S. Inland Navigation System

Jeffersonville, IN

St. Louis, MOLouisville, KYCairo, IL

Houston, TX

Lemont, IL

Memphis, TN

Armant, LA

Harahan, LA Marrero, LA

Baton Rouge, LA

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Sources: Iowa Department of Transportation.Wilson, Transportation of America (19th edition, 2002). U.S. Army Corps of Engineers.

Carbon monoxide pollutants (in pounds) produced by moving one ton of cargo 1,000 miles. Injury rate per billion ton miles.

With unmatched unit capacity, moving cargo by barge is the lowest cost, cleanest and most fuel efficient method of shipping freight

Ton mile per gallon of fuel

Safest - Injuries

15 Railcars 80 Truck Trailers

BargeBarge RailRail TruckTruck

Equivalent Units 1 Barge

Lowest Cost

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

514 202 59

Cleanest - Carbon Monoxide 0.2 0.6 1.9

0.09 21.77 NA

= =

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• Approximately 17,800 dry cargo barges in operation today; 24% were built between 1979 and 1981

• Average barge life is approximately 25 - 30 years

• High steel prices have accelerated scrapping of old equipment and limited new builds

Source: Informa Economics, Inc. and Criton

ITC

Dry Cargo Barges in Operation by Year of ConstructionDry Cargo Barges in Operation by Year of Construction

ACL – An Overview

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• Operating since 1915• Over 2,600 employees• Over 3,000 barges and 120

towboats• Leading transporter of dry and

liquid commodities• Leading manufacturer of marine

equipment• Approximately $1B in revenues• One of the top 5 IPO’s in the U.S.

during 2005*

Fully integrated marine transportation company and industry leader in barge transportation and manufacturing

American Commercial Lines (“ACL”)

*Forbes March 13, 2006

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ACL is THE industry leader in safety

Personal Injury Incident RatePersonal Injury Incident Rate

0

2

4

6

8

10

12

14

16

18

ACL Transportation ACL Manufacturing

Inci

dent

Rate

• ACL Transportation Services’ Incident Rate for 2006 was 0.97 while the transportation industry* averaged 2.5

• ACL’s Jeffboat shipyard had a 2006 Incident Rate of 4.07 while the shipyard manufacturing industry has averaged 12.1

0.97

4.07

*AWO reporting companies

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We transport a diversified mix of both liquid and dry commodities

16.5%Manufacturing

$155MM83.5%

Transportation$788MM

32%Grain

24%Liquids

8%Coal

25%Bulk & Other

2006 Revenues2006 Revenues 2006 Transportation Revenues2006 Transportation Revenues

$943 Million $788 Million

8%Steel

3% Fertilizer

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Ingram 3,716 20.9%

ACL 2,803 15.8%

AEP MEMCO 2,318 13.0%

ARTCO 2,076 11.7%

Cargo Carriers 909 5.1%

ACL is uniquely positioned to service both dry and liquid customers

Dry CargoDry Cargo Liquid CargoLiquid Cargo

Source: Informa Economics, Inc. as of 12/31/05 & Barge Fleet Profile March 2006

Units % of Total

Total Top 5 Dry 11,822 66.5%

Units % of Total

Kirby 897 32.3%

ACL 371 13.3%

Marathon 170 6.1%

Canal 169 6.1%

Ingram 165 5.9%

Total Top 5 Liquid 1,772 63.7%

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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 Manufacturing Services Division

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Organic Growth Strategy

Blue Water18%

Hoppers35%

Tankers47%

Blue Water15%

Power15%

Hoppers30%Tankers

40%

Steel8%

Liquid24%

Grain32%

Bulk28%

Coal8%

Steel5%

Coal20%

Liquid40%

Bulk20%

Emerging Markets

5%Grain10%

2006 Transportation Revenue 2009 Transportation Revenue

2006 Manufacturing Revenue 2009 Manufacturing Revenue

EBITDA Potential 20 – 25% EBITDA Potential ≥ 30%

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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 in ancillary services, environmental, engineering, finance, and commodities.

Inorganic GrowthInorganic Growth

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

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We develop transportation solutions for industry-leading companiesWe develop transportation solutions for industry-leading companies

Ethanol – A Transportation Opportunity

1818© 2007 Informa Economics, Inc.

Ethanol FacilitiesOperational Status

ConstructionExpansionOperatingProposed

Corn Production Density(Acres per Sq. Mile)

200 to 532100 to 200

50 to 10025 to 5010 to 25

0 to 10

Geography of the Ethanol Industry in 2007

1919

Overview of Ethanol Transportation

• Rail is the dominant mode– Rail = 70-75% of shipments– Truck = 15-20% of shipments– Barge = 5-15% of shipments

Source: Informa Economics, Inc.

2020

Ethanol Production and Domestic Barge Volumes

YearProduction

GallonsInternal Barge

GallonsInternal Share

2001 1,765,638,000 162,037,359 9%2002 2,140,320,000 305,901,127 14%2003 2,804,424,000 334,419,968 12%2004 3,402,378,000 426,588,728 13%2005 3,903,984,000 365,615,459 9%2006 4,855,368,000 536,320,891 11%2007 6,654,854,080 725,917,193 11%

Source: Informa Economics, Inc.

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Waterborne: Inland Barge

• Waterborne Movement

– Only 5 existing plants (622 mmgy) & 2 plants under construction (192 mmgy) are on the Mississippi/Illinois/Ohio River system (Source: Jaworski, ACL)

– Original ethanol plants produced 20 to 30 million gallons annually

– River located plants produce 100 to 200 million gallons annually

Source: Informa Economics, Inc.

Indiana’s Waterways – A Growth Opportunity

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Indiana Waterways – Strategic Advantage

• Three Ports

– Port of Burns Harbor – Port of Jeffersonville – Port of Mount Vernon

• 358 Miles of Ohio River Shoreline

• Access to the Atlantic Ocean, Great Lakes and Gulf of Mexico

• Capacity for Growth in a Congested Freight Market

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Almost 40 million tons of commodities moved by water to, from and within Indiana – and almost 120 million tons moved to from within and past Indiana on our waterways

Coal18,303

Petroleum2,108

Aggregates10,380

Grain3,952

Chemicals1,290

Ores & Minerals890

Iron & Steel887

Other550

Source: 2004 U.S. Army Corps of Engineers Waterborne Commerce StatisticsShipments on Ohio River Basin waterways only

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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 Forward Looking Statements