TA Petro Overview of SVC Leases and Financial Upside
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Resilient Demand Drivers And Secular Tailwinds
Trucking Remains Primary Freight Transportation Mode
The U.S. freight industry is forecasted to continue to grow and trucking is expected to remain the
primary mode of freight transportation (1).
• The domestic economy continues to represent the main driving force behind the performance of the U.S. freight industry
Despite transient headwinds (e.g. pandemic and trade tensions), we believe that domestic economic fundamentals are
rebounding, and, together with a spike in e-commerce, it supports freight industry volume and revenue growth
• Trucks accounted for ~71% of total primary tonnage and -80% of revenue in 2018, and are expected to continue to dominate the
overall freight transportation market(1)
- Truck transported freight volume is expected to grow at a CAGR of 1.2% for the 2018A - 2030E period with truck revenue
growing at a CAGR of 1.5% (1)
U.S. Freight Volume by Mode 2018A-2030E (1)
($ in billions)
Truck Volume
Growth (%)
1.7%
1.4%
7.8%
11.2%
2018A 2030E Truck CAGR: 1.2%
2018A 2030E Total CAGR: 1.3%
20,627
18,536
16,090
16,421
16,738
5
(1)
11,485
11,680
11,838
12,766
14,190
2018A
2019E
2020E
Truck Pipeline
Rail
2025E
2030E
Water
Air
American Trucking Associations: Freight Transportation Forecast 2019 to 2030.
Fundamentally-Driven Investors Positive on
Trucking Outlook
11
Trucks are going to be
around for a very long time.
Who knows when driverless
trucks are going to come
along and what level of
penetration they have.
- Warren Buffett, Chairman, President,
and CEO of Berkshire Hathaway
TA PETRO TAEXPRESS
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