case study: the adelaide to darwin rail link

1 Genesee & Wyoming Inc.

Genesee & Wyoming Australia

October 2012

AusIntermodal 2012


Discussion

• Overview of GWI

• GWA & Business

• Intermodal Business

• Investment

• Future Opportunities


Genesee & Wyoming Inc

4 Genesee & Wyoming Inc. 4 Genesee & Wyoming Inc.

Genesee & Wyoming Inc Overview

• Listed on New York Stock Exchange with market cap of ~$2.9 billion (pre Rail America)

• Own 66 railroads and employ ~2,600 people

• Operate over ~ 9,000 track miles with ~600 locomotives

• Over 850 Customers

• Provide rail service in the United States, Canada, Australia, the Netherlands and Belgium


Outstanding Safety Performance 2012 Injury Frequency Rate per 200,000 man-hours. Through August

3.10 3.00

2.28

1.03 1.0

0.07

0.67 0.53 0.48 0.49

0 0 0 0 0


Genesee & Wyoming 2012


Genesee & Wyoming 2012 (Rail America)


Our Core Purpose

To be the safest and most respected rail service provider in the world.


Industry Leading Customer Satisfaction


Genesee & Wyoming (GWI) History in Australia

1996 • GWI privatises Australia National’s SA business

1999 • Start-up of intra-facility contract to serve OneSteel Whyalla

2000 • Formation of Australian Railroad Group (ARG) with partner Wesfarmers • ARG buys Westrail, owns and manages above and below rail services

2001 • GWI invests in FreightLink - begins operating construction trains • GWI crews operate first FreightLink train (2004)

2006 • QR and Babcock & Brown make unsolicited offer and purchase certain ARG assets • GWI retains original SA business, names it Genesee & Wyoming Australia (GWA)

2010 • GWA purchases FreightLink, expanding presence in Australia

12 Genesee & Wyoming Inc. 12 Genesee & Wyoming Inc.

Genesee & Wyoming Australia Pty Ltd

• 0.67 reportable injury rate YTD 2012 (2 injuries) – Currently 222 days injury free at 23 October 2012

• 400+ employees – located in Adelaide, Alice Springs, Darwin, Ceduna, Port Lincoln, Whyalla, Port Augusta, Tailem Bend and Parkes (NSW)

• 85+ locomotives and 950 wagons – 19 new high-horsepower locos

• 3,500+ km of owned track

• Accredited rail operator in six states (all but Tasmania)


GWA Safety


Injury Frequency Rate per 200,000 Employee Hours as at September 30, 2012

0.48 0.81 0.55 0.53 0.27

0.67 0.50 0.0

1.0

2.0

3.0

2006 2007 2008 2009 2010 2011 2012 YTD 2012Goal

GWA


Customer Base - SA • Arrium (6.8mtpa of iron ore exports and intra-facility

shunting in Whyalla NG, 3.8mtpa Wirrida to Whyalla ST)

• Viterra/Glencore (3mtpa of grain in South Australia)

• Bulk Minerals • GRA (1.8mtpa of gypsum)

• Penrice (0.5mtpa of marble)

• Crewing Services • SCT services

• Parkes-Pt Augusta – 1 service per week

• Melbourne-Perth 4 services per week


OZ Minerals • Up to 250,000 tonnes of copper-gold concentrate

ore per annum

• Rail haulage to Port Adelaide

• 116 kilometre haul road to Wirrida rail siding

• Direct loading of 20’ half height containers road to rail at Wirrida

• Two dedicated rail services per week between Wirrida and Port Adelaide

• Two new 3000hp locomotives and over 44 flat wagons

Adelaide

Bigrlyi Uranium

Nolans Bore Molyhil Tungsten

Tarcoola

Darwin

Alice Springs

Tennant Creek

Prominent Hill Wirrida


OM Manganese • 900,000 tonnes of manganese ore per annum • Rail haulage over 800 kilometres Muckaty to

Darwin • 60 kilometre haul road to Muckaty rail siding

from mine • Stockpile to bulk rail wagon loading at Muckaty

siding • Four dedicated trains per week to Darwin • Bottom discharge from rail wagons to stockpile

at Port of Darwin

Bigrlyi Uranium


Darwin

Bootu Creek

Tennant Creek

Alice Springs

Muckaty


Territory Resources • Task 1.5 million tpa of haematite iron ore

• Rail haulage 210 kilometres to Darwin

• 15 kilometre haul road to Union Reef rail siding

• Stockpile to bulk rail wagon loading at Union Reef

• Eight dedicated trains per week between Union Reef and Darwin

• Bottom discharge from rail wagons to stockpile at Port of Darwin

Bigrlyi Uranium


Darwin

Francis Creek

Tennant Creek

Alice Springs

Union Reef


GWA Intermodal - Northbound • 6 services per week • Trains 1800 m long • Average 4000 tonnes • Journey to Darwin – 2 days • Crews work relay working – state of art

resting facilities • New high horse power locomotives

Adelaide

Bigrlyi Uranium


Tarcoola

Darwin

Alice Springs

Katherine

Tennant Creek

2000 kms


GWA Intermodal

• Terminals – Adelaide - services provided under contract by PN – Alice Springs – GWA owned & operated – Tennant Creek – GWA owned & services provided

under contract by Linfox – Katherine – GWA owned & services provided

under contract by Linfox – Darwin – GWA owned & operated


GWA Intermodal • Locations Serviced

– Adelaide – Alice Springs – Tennant Creek – Katherine – Darwin

• Container Types – 6.1m (20’), 12.2m (40’), 13.7m (45’),

14.6m (48’) and 16.15m (54’) – Refrigerated (diesel powered) – Insulated / Ventilated – General Purpose – Tautliners – Transi-flats /Flat Racks


GWA Intermodal • Major Customers

– Scott Group (NTFS) – Toll Group (Toll Express, NQX,

Automotive, Ipec) – Woolworths – Northline – Linfox

• Major Commodities – Fresh Fruit and Vegetables – Fast Moving Consumer Goods – Motor Vehicles – Cement – Commercial Furniture – Mail – Whitegoods – Personal Effects


Freight Availability

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Freight Availability - Northbound

2010

2011

2012


Freight Availability

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Freight Availability - Southbound

2010

2011

2012


Intermodal Traffic

0

200

400

600

800

1000

1200

1400

1600

1800

2000


Total Intermodal Containers

2010 2011 2012

Jan, Feb, Mar 2012 includes containers terminated Katherine due Edith River Bridge


Investment • Locomotives

– 9 x 4300 AC Locomotives – for Intermodal & Other Business were delivered June 2012 and are in service on the corridor.

• Crew Vans – Overhaul of existing 4 Crew Vans – 4 are completed.

• Lifting Equipment – Purchase of new lifting equipment for Alice Springs & Darwin

• 2 Darwin • 1 Alice Springs

• In-line fuelling – Purchase of equipment for In-Line fuelling (intermodal) – five

systems commissioned and in service.

• Terminal Acquisition – Purchase of Alice Springs Terminal


Infrastructure Investment • McKinlay River bridge scour protection -

completed

• Place at various locations - additional inventory (rail, sleepers, ballast) for emergency recovery - completed

• Earth bund at Bridge Creek to mitigate

• Investment in weather monitoring and advance weather warning services

• Rail defect removal program Tarcoola-Alice Springs

August 2011

December 2011


Organic Growth Opportunities

-

Adelaide

Darwin

Tarcoola

Developing Natural Resources Projects in South Australia and Northern Territory:

• Iron Ore • Rare Earths • Phosphates • Manganese • Nickel • Coal • Copper/Gold/Uranium

Katherine

Alice Springs

Roxby Downs

case study: the adelaide to darwin rail link

Business

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genesee wyoming australia

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wirrida rail

rail wagons

dedicated rail services

linfox darwin gwa

muckaty rail siding