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Railcar Fleet

We provide our customers with railcars and fleet services related to the transportation of liquid hydrocarbons and biofuels by rail on a multi-year, take-or-pay basis. As of December 31, 2015, our fleet consisted of 3,306 railcars, which we leased from various railcar manufacturers and financial entities. We do not own any railcars. We provide customers with railcar-specific fleet services, which may include, among other things, administrative and billing services, the maintenance of railcars in accordance with standard industry practice and applicable law, the management and tracking of the movement of railcars, the regulatory and administrative reporting and compliance as required in connection with the movement of railcars, and the negotiation for and sourcing of railcars. Approximately 85% of our railcars currently in service were constructed in 2013 and later. The average age of our fleet currently in service is approximately three years, as compared with the estimated 50-year life associated with these types of railcars. We have partnered with leaders in the railcar supply industry, such as CIT Rail, Union Tank Car Company, Trinity Industries and others. We believe that our relationships with these industry leaders enable us to obtain railcar market insight and to procure railcars on advantageous terms, with shorter lead times than our competitors. As of December 31, 2015, our railcar fleet consisted of a mix of 2,108 coiled and insulated, or C&I, railcars and 1,198 non-coiled, non-insulated railcars. Our C&I railcars can reheat heavy viscous crude oil grades, reducing the need to blend these heavier crude grades with diluents.