Transportation Overview September 9, 2013 Costco Today 2nd

Transportation Overview September 9, 2013 Costco Today  2nd

Transportation Overview September 9, 2013 Costco Today 2nd Largest U.S. retailer* 7th Largest retailer in the world

24th Largest in Fortune 500 $44+ Billion market cap *Based on worldwide sales Costco Today

Sales $100B (LTM) 88M+ Sq. Ft. (143K / whse.) 173K employees worldwide >2M transactions / day Warehouse Locations 632 Worldwide 9 Countries 448 in U.S.

29 in WA state U.S. Annual Shipment Volumes Inbound Truckloads 1,075,000 20% shipped freight collect, 80% shipped prepaid by vendors

Outbound Truckloads 450,000 Import Containers (FEUs) 49,000 Export Containers (FEUs) 24,000 LTL Shipments

487,000 Small Parcel 9,400,000 U.S. Distribution Network (Outbound) 11 cross-dock facilities 450,000 outbound loads shipped annually All loads received and shipped same day

70% received at selling location same evening Utilize heavy haul equipment when possible WA, OR, UT, ID, MT, CO, FL Private fleet utilized at 6 distribution centers Washington State Shipments

Inbound Truckload Over the Road 16,000 30% shipped to/from California (I-5) Intermodal Import Containers 6,000

Export Containers 2,000 6,000 Outbound from Sumner, WA Truckload 53,000 truckloads shipped 48,000 loads shipped OTR to WA, ID & OR

22,000 loads shipped via Costco Fleet 5,000 ocean loads shipped to AK Locations serviced by Sumner, WA Federal Challenges

80,000lb. GVW Limitation Limited access to use LCVs Hours of Service CSA Washington State Challenges Ports

Infrastructure Road conditions Port access (Seattle) Construction (Seattle) Lack of PM hours of operation Labor Washington State Challenges Highway infrastructure Traffic congestion

Emergency conditions Flooding, Pass closures Tolls Bridge conditions SR-167 Questions?

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