Pacer International is a leading asset-light transportation and logistics services provider. Within North America, Pacer manages one of the most comprehensive intermodal networks with over 100,000 miles of double-stack rail operations, integrated with a nationwide truck drayage network for door-to-door service delivery. Pacer accounts for over 20% of all domestic intermodal container moves in the U.S. and we are the largest single provider of intermodal container services between the U.S. and Mexico. To support these operations, we purchase more than $1 billion of rail transportation annually and manage one of the largest intermodal fleets in North America with more than 29,000 double-stack containers, 30,000 chassis, and 1,850 railcars.

In addition to intermodal services, Pacer offers an extensive portfolio of complementary transportation services including truck brokerage, specialized trucking, international ocean shipping and freight forwarding, warehousing and distribution, and supply chain management. Pacer’s customers include Fortune 1000 shippers (manufacturers, retailers, importers, etc.), and transportation third parties.

As an asset-light provider, Pacer limits investment in equipment and facilities, and reduces working capital requirements through arrangements with transportation carriers and equipment providers. This strategy provides access to capacity and resources, yet enables us to exert control over transportation-related equipment without owning assets (freight terminals and facilities).

Through our management processes and information systems we create efficiencies and operational excellence in the delivery of our services, which also benefits our suppliers through increased asset utilization. As a result, we gain an important competitive advantage, including freight procurement leverage, and an opportunity to pass volume rate savings and economies of scale to our customers. Our increased control allows us to provide more reliable and consistent services.

The breadth of our intermodal and logistics services allows us to rapidly expand customer relationships with significant opportunity to cross-sell services, and provides a flexible infrastructure that supports service customization in response to our customers' changing needs. This also helps us generate growth internally by purchasing services from our own operating units, and enhancing our position with respect to process control, cost and service quality.

In late 2006, we made adjustments in our operating segments to better reflect economic value creation. Now, Pacer operations are organized as two segments: Intermodal and Logistics. The Intermodal segment reports the combined financial performance from Pacer Stacktrain, Pacer Cartage and the Pacer Rail Brokerage operating group of Pacer Transportation Solutions. The Logistics segment reports the combined financial performance of all other Pacer International subsidiary companies, which include Pacer Transportation Solutions (exclusive of the rail brokerage operating group), Pacer Transport, Pacer Distribution Services, Ocean World Lines, and RF International.