General Rate Increase - Effective January 1, 2007

December 29, 2006

Dear Customer:

Coastal Transportation, Inc. has filed with the Surface Transportation Board
a general rate increase of 4.9% in our Alaska Tariff STB CSIW 8.
The effective date of the increase is Jan 1, 2007
We appreciate your business and look forward to serving you in the future.

Sincerely,

Tim Shaffer, General Manager

Our schedule information can be found on our web site: http://www.coastaltrans.com