Sophisticated Simplicity

Heavy Haul Operations Supported by Proven

Technology

Mike DarbyKarribrook WA Pty Ltd

Presentation Overview

What is “Sophisticated Simplicity”?

BHP Billiton’s Railway NW Australia

BHPB’s use of technology

Example of Sophisticated Simplicity in a

Heavy Haul Railway Operations supported

by proven technology

04/18/232

What is Sophisticated Simplicity?

Traditional Approach

Simple System

Proven Technologies

BHP Billiton Ltd

Is the worlds largest diversified resources company

(>US$100 billion)

Global resource development company

BHP Billiton Iron Ore located in Northern Australia:

• Developed a “Fit for Purpose” Railway

• Operates in a harsh and isolated environment

• Operates the heaviest axle loads/trains in the world

Operations in ‘Cyclone Alley’

BHP Billiton Iron Ore Railway

History of the BHP Billiton Railway

Mt Whaleback was the largest single iron ore deposit in the world (>1 billion tonnes)

Historically Iron Ore deposits in Western Australia seen as too far (400 km) from tidewater prior to heavy haul railways

Heavy haul rail line built in 1969 by North American contractor

In 1970 Oroville Dam Project cars and dumpers brought from California to Australia / evolved as a North American Railroad

Regulated by Mines Department not DOT

BHP Billiton Iron Ore Railway

Good Safety Is Good Business

Continuous Improvement

Use Assets to Their Full Potential

Research and Development

Operating Philosophies:

High axle load issues

Hot bearing-Hot/Cold Wheel Detectors

Wheel Impact Monitor

“Weigh-in-Motion” Weighbridges

Acoustic Bearing Detection

Instrumented ore cars

Auto Locomotive Downloads

Video Imaging

Workshop Initiatives

Proven Technologies

Axle Load Evolution

1970 1974 1986 1996 2005

28.5 tonnes 30.0 tonnes32.5 tonnes

35.0 tonnes40 tonnes

Wettonnes

per wagon

Axle Loading

Issues with 40 tonne Axle Load

“Thermit” Welds/Flash Butt Welds- 6000 “Thermit” welds – 2% failure/annum- 35000 flash butt welds - .008% failure/annum- Program in place to replace “thermit” welds

Rail Grinding Program

Wheel/Rail Interface

Weekly Rail Ultra Sonic Inspection

Thermit/Flash Butt Welds

Stress Free Temperature (SFT) Incorrect SFT leads to:

•Track buckles – when hot

• Rail Breaks – when cold

1,000 meters rail @ 60°C is 999.386meters @ 5°C

25°C change causes 92 tonnes of tensile force

“Thermit” welds

• Sensitive to SFT & lateral loading

Concrete SFT 33 - 38°C

Timber & Steel SFT 35 - 40°

Painting Welds

Reduce lateral loading

Hot/Cold Wheel/Bearing Detection

18 hot bearing wheel detectors 1 cold wheel detector Automated and site activated

Impact Detection & Weigh-In Motion

1 impact load detector4 weigh-in motion scales

Acoustic Bearing Detection

Following faults are detected:

Cone Faults

Roller Faults

Audible Wheel Flats

Cup Faults

Looseness / fretting

Noisy Wheel sets (flanging)

Consequence of System Breakdown

Result of System Breakdown

4 IOC’s in service

Vertical suspension travel (ride quality)

Wheel-rail acceleration (rail condition)

In-train forces

Lateral stability (hunting)

Longitudinal acceleration

Car body/draft gear pocket strains

Temperature

Brake pipe pressure

Instrumented Ore Cars (IOC)

Auto Locomotive Downloads

The “Black-Box” is downloaded at each arrival at port

Driver education/incident management

Fuel utilization

Data for automated train operation

All operating parameters

Video Imaging

Measures:

Flange Height

Flange Width

Vertical Flange

Hollowing Depth

Rim Thickness

Wheel Diameter

Workshop Initiatives

Component Tracking

Ultra-Sonic Wheel Testing

Super Clean Wheel Specs

Bearing Quality Assurance

“H” Class Bearings

40 tonne trucks

Side Wall Thickness Tracking

Asset Protection Information Integration

Ultrasonic Wheel Inspection

Shop Facilities

37 Traceable Components for each Ore Cars Component Tracking

Coupler Inspection

Developed in UK, for

in-situe inspection

Uses ultrasonic probe

inserted through the

drain hole

Detect lower pulling lug

cracks which are the

primary mode of failure

for fixed & rotary

couplers

BHP Iron Ore Railroad

Ore Car Wheel Life1980 2006million km million km Life extension

0.34 1.95 6.5 fold increase

Rail Life (Tangent Track)

1980 2006million gross million grossmetric tonnes metric tonnes Life extension

350 1,200 3.4 fold increase

R&D into the

rail/wheel

interface

allows for the

useful life of

assets to be

extended

Productivity Results

126148 151

167179

216

245258

301

353

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Employee Productivity Tripled in the last 10 years

(‘000’s tonnes per employee /yr)

Heavy Haul Railways of the Future

KIS: Keep it simple• Train operation designed with minimum interfaces

Implicit safe operation• Design the operation to avoid train movements

Intense capital utilization• Use assets to the fullest

Integrated knowledge process implementation• Proven technology to protect assets

The Knowledge Process

Integrateddata collection information

implementation

knowledge

System management

What’s in the Future ?

Continued safety focus

Human resource efficiency

Higher axle loads

Evolution of “Cruise Control”

Automated trains

Electric brakes

Electric Brakes Handbrakes on grades can be managed Ease of train handling

• all brakes on and off simultaneously within 7 seconds• graduated release• Faster brake charging time

Reduced in train coupler forces and less brake shoe wear Distributed power (no radio based locotrol) End of train monitoring Brake system charges while brakes are applied Load / empty features not required

Advantages cont. Faster train cycle time

• Faster accelerations brakes release sooner• May be able to increase speed of loaded trains• Graduated release of train brakes

Individual wagon brake status monitoring Fault finding i.e. train break location Faster train brake charging times (uses less air) Fuel savings as brakes release faster Increased wheel life

• No sticking brakes / hot wheels Even wearing brake shoes

“Highway” for future Developments

Derailment detection Hot bearing / hot wheel detection Hand brake status “GPS” train braking

(individual brakes graduated as loads traverse undulation)

Car weights linked to load out facilities(ensures each car is loaded to maximum)

Automated trains platform

Objective

“Move 6 million tonnes of product per annum a

distance of 100 km”

Simple ApproachTraditional Approach

250 cars/wagons

7 locomotives

Rotary/Bottom dump wagons

Rotary or bottom dump station

80 employees

Extensive track/yard system

Cost for plant >US$100 million

High maintenance costs

80 cars/wagons

3 locomotives (Push/Pull)

Side dump cars/wagons

Flat unloading platform

35 employees

Simple track/yard system

Cost for plant <US$30 million

Less plant to maintain

Supported by proven technology

The End Result