1Genesee & Wyoming Australia

South Australia and the

Northern Territory:

New centres for Heavy Haul

27 August 2014

IAN HALL – Genesee & Wyoming Australia

2Genesee & Wyoming Australia

Agenda

1. Genesee & Wyoming Inc.

2. Genesee & Wyoming Australia

3. Heavy Haul in the NT & SA

• Intermodal

• Bulk Minerals

4. Future growth opportunities

5. Challenges

6. Optimising train capacity

7. Technology

3Genesee & Wyoming Australia

• Railroads: 112 worldwide with ~24,000 km

of track and over 2,000 customers

• People: 5,000 worldwide

• Equipment: >1,000 locomotives and

22,000 wagons

• Annual Carloads: ~1.9 million

• Public Company: New York Stock Exchange-

listed (GWR) with ~A$6 billion market value

• Operations: 40 U.S. states, four Canadian provinces,

four Australian states & one territory, the Netherlands and

Belgium

• Contract Switching & Port Operations: Serve 37 ports and ~50 industrial facilities

and mines

Genesee & Wyoming Inc.

4Genesee & Wyoming Australia

Genesee & Wyoming Inc. 2014

*RCPE subject to U.S. Surface Transportation Board acquisition approval and the satisfaction of certain closing conditions.

5Genesee & Wyoming Australia

Industry-Leading Safety Performance

2014 Injury Frequency Rate per 200,000 man-hours(1)

3.22

1.441.31

1.171.04 1.02

0.91

0.49

U.S. shortline railroads

(2)

KCS NS Class I Avg BNSF UP CSX G&W

Class I (i.e. largest)

Railroads

(2) Most comparable to most G&W operations(1) G&W through June; others through April

Private & Confidential

Genesee & Wyoming AustraliaNew centres for Heavy Haul

7Genesee & Wyoming Australia

Genesee & Wyoming Australia (GWA)• 3,500+ km of owned track (2,200 km Tarcoola to Darwin)

• Accredited rail operator in six states and territories

(all but Tasmania and the ACT)

• 540+ employees

• 100 locomotives and 1,000 wagons

• 40+ daily train starts across South Australia,

the Northern Territory

Haulage Task

• Adelaide-Darwin / Intermodal – six services

each week

• Iron Ore

• Copper

• Manganese

• Grain

• Gypsum

8Genesee & Wyoming Australia

GWA Safety Performance

Injury Frequency Rate per 200,000 Employee Hours

0.480.81

0.55 0.530.27

0.47

0.0

1.0

2.0

3.0

2006 2007 2008 2009 2010 2011 2012 2013 14 YTD

1.42

9Genesee & Wyoming Australia

Intermodal Overview• Services departing Adelaide and Darwin 6 Days per week

• Up to 1,800 meters in length

• Flats and double stacked well wagons

• Container Services (both refrigerated and general)

• Piggyback Services (bulk liquids trailers)

• Interface Terminals (Adelaide, Alice Springs, Tennant Creek, Katherine

and Darwin)

• Cargo Include:

• Dry Groceries

• Chilled/Frozen Groceries

• Building/Construction Material

• Automotive Vehicles and Parts

• Mining Consumables

• Liquor

• Mail

10Genesee & Wyoming Inc. Private & Confidential

Bootu CreekManganese Ore

• Commenced operations in May 2006

• Bulk Manganese Ore from the Bootu Creek mine 125 km north of Tennant Creek (1400km

round trip)

• Operating from the Muckaty siding on the Tarcoola-to-Darwin railroad to Berrimah

• Four services per week at 8000 tonne per train

• Bulk hopper wagons, bottom discharged at the Darwin Port Corporation bulk handling

facilities at East Arm Port

11Genesee & Wyoming Inc. Private & Confidential

• Commenced operations in July 2007

• Iron ore mined at Frances Creek 200km south of Darwin near the town of Pine Creek

• Railed from the Union Reef siding between Katherine and Darwin to Berrimah

• Up to eight services per week with up to 8000 tonne per train

• Bulk hopper wagons, bottom discharged at the Darwin Port Corporation bulk handling facilities at

East Arm Port

Frances CreekIron Ore

12Genesee & Wyoming Australia

Arrium Southern Iron

• Commenced operations in December 2012

from Wirrida in SA to Darwin after 2 years of

planning

• 16,000 tonne train carrying iron ore 2000km

reportedly the greatest distance in the world for

iron ore haulage

• Train included 160 hoppers with four 4300hp

DC traction locomotives, inline fuel and crew

accommodation

• In March 2013 haulage task switched to the

newly built Arrium port at Whyalla

• Recruitment of 40 people with 24 new hires with

significant training required

13Genesee & Wyoming Australia

14Genesee & Wyoming Australia

• Distance and remoteness

– Availability of fuel/ response in emergency situations

– Communications

• Staff

– Recruitment of qualified staff in SA/NT

– Training of new hires to meet start-up time frames

– Route competencies

– Relay working

• Operations

– Train length limitations at 1800m

• Below Rail

– Optimised design limiting axle load to 23 tonne

– 4 passing loops between Alice Springs and Darwin

limiting network capacity

NT/SA Challenges

NEED TO CONSIDER

IMAGES

15Genesee & Wyoming Australia

Optimising train capacity

• Infrastructure design limiting axle load to 23

tonne

• Four passing loops between Alice Springs and

Darwin limiting network capacity

• Limited network capacity to support new

opportunities in the south

• Train length limitations at 1800m

• Vehicle design

16Genesee & Wyoming Australia

Technology

• Distributive power adopted for some operations to

maximise train capacity

• ECP braking to assist in train management

• Fuel management systems to manage significant

cost component

• Utilisation of inline fuel systems

• Monitoring remote locomotives

• Wayside detection devices

17Genesee & Wyoming Australia