Genesee & Wyoming Inc.

Transcription

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2 Presentation to the Yorke and Mid North 2

3 GWI Overview Listed on New York Stock Exchange ( GWR ) with a market capitalization of approximately US $2.2 billion Own 63 railroads with over US $700 million in revenue following FreightLink Acquisition Approximately 2,400 employees Operate over nearly 10,000 miles of track with 569 locomotives Provide rail service in the United States, Canada, Australia and the Netherlands 3

4 2011 GWI Operations 4

5 Safety leader in the rail industry 0 Injuries 3 GWI Class I 1.4 (e.g., BNSF, CSX, NS, UP) FRA Group (Medium railroads, e.g., DM&E, Florida East Coast, Montana Rail Link, NJ Transit) FRA Group (U.S. short line railroads) 2010 YTD Injury Frequency Rate per 200,000 man-hours worked Injuries reportable to the Federal Railroad Administration (FRA) of the United States Full-year GWI results; all others through October 5

6 Continuous Improvement in Safety GWI Injury Frequency Rate vs. U.S. Rail Industry Averages Injury Frequency Rate per 200,000 Employee Hours *Full-year 2010 GWI results; all other 2010 results through October 6

7 Commitment to Outstanding Customer Service December 2009 survey by leading customer satisfaction firm*: Genesee & Wyoming s Top Two Highest Rated Attributes by Customers: Operating personnel demonstrate a clear commitment to safety 8.56 Professionalism of personnel 8.46 Overall Satisfaction with Genesee & Wyoming vs. Other Transportation Service Providers Genesee & Wyoming 7.81 (up from 7.42) Trucking Industry 7.29 (up from 7.12) Railroad Industry 6.46 (up from 5.95) * Scale of 1 = worst and 10 = best 7

8 GWI in Australia 8

9 Genesee & Wyoming (GWI) history in Australia 1996 GWI privatises Australia National s SA business Start-up of intra-facility contract to serve OneSteel Whyalla Formation of Australian Railroad Group (ARG) with partner Wesfarmers ARG buys Westrail, manages above and below rail services GWI invests in FreightLink - begins operating construction trains GWI crews operate first FreightLink train QR and Babcock & Brown make unsolicited offer and purchase certain ARG assets GWI retains original SA business, names it Genesee & Wyoming Australia (GWA) 2010 GWI purchases FreightLink 9

10 Expanding Presence in Australia FreightLink Acquisition Acquisition completed Dec 2010 Freight rail business over 2,240-km Tarcoola to Darwin line Domestic intermodal, bulk fuels and general freight to Darwin Bulk minerals for export to Asia iron ore, manganese and copper Above rail (train service) as well as Below rail (track owner and access provider) Genesee & Wyoming Australia (GWA) FreightLink GWA-Operated Track Interstate Lines with Open Access 10

11 Genesee & Wyoming Australia 1.35 Lost Time Injury Frequency Rate in 2010 (per million man hours) 300+ employees 70+ locomotives 950 active wagons Accredited rail operator in six states (all but Tasmania) Significant experience starting up new rail operations in Australia 11

12 Safety leader in the rail industry Genesee & Wyoming Australia - FRAFR Injuries reportable to the Federal Railroad Administration (FRA) of the United States 12

13 GWI Capabilities

14 Global Natural Resources Experience United States Australia Canada GWI s Contract Coal Loading G&W loads 95% of the coal in the Powder River Basin, approaching 400 million tons per year G&W directs all train movements in and out for long-haul trains (200 daily) loading at more than 15 mines OneSteel Haul ~ 7 million tons of iron ore per year Operate railroads to two iron ore mines in Whyalla, South Australia Perform all in-plant shunting for steel production process including servicing blast furnaces under multi-year contract Consolidated Thompson Haul ~ 8 million tons of iron ore per year Operate railroad to iron ore mines in Labrador, Canada Expansion plans to 16 million tons of ore per year 14

15 Experienced with Environmentally Sensitive Traffic In 2010, GWI railroads transported more than 85,000 wagons of chemicals and petroleum products to customers in all operating regions Main Line Haul Service to chemical facilities (i.e. Dow), refineries (i.e. United Refining) and industrial users of chemicals (i.e. Georgia Pacific). GWA Permitted hauler of uranium between Adelaide and Darwin in shipping containers for customers such as BHP since Industrial Switching 12 intra-facility operations switching chemicals and petroleum products Rail provider for OZ Minerals for the movement of copper concentrates from Prominent Hill mine. 15

16 Considerable Local Presence GWA currently operates across the following locations; Operating base in Adelaide (Islington and Dry Creek) Multiple daily train operations on the Tarcoola to Darwin corridor Depots in Darwin, Whyalla, Port Lincoln, Ceduna, Alice Springs, Katherine, Tennant Creek, Port Pirie, Tailem Bend and Port Augusta. Following the FreightLink acquisition, GWA manages below rail access on Tarcoola to Darwin (through statutory access regime) GWA retains balance sheet capacity to make investments supported by long-term customer contracts Experienced management team focused on delivering high quality customer service and industry leading safety results 16

17 GWA Mid North and YP rail task current and future

18 GWA Rail Grain Task Mid North Estimated Tonnes July 08 to June 09 July 09 to June 10 July 10 to April , , ,000 All volume hauled to Port Adelaide Originating sites include Bowmans, Gladstone, Jamestown, Port Pirie and Snowtown Increased volumes relate to improved seasonal conditions 18

19 Grain Logistics Changes Privatisation and Commercialisation of rail, handling and marketing companies Historically grain was railed to Port Pirie and Wallaroo for export now all road based activities Grain freight task contestable between rail and road options Port, handling and shipping costs are factors considered, not simply freight rates Rail task is contestable to other operators but volume and seasonal instability make it difficult for others to establish competitive options 19

20 Road vs Rail Considerations Short haul vs long haul capabilities Volume capacities and demand High Capital costs associated with rail infrastructure Flexibility Infrastructure capacity 20

21 Alternative Port and Logistics Options SA Mineral provinces demand alternative logistics solutions Lack of deep water ports to load Cape size vessels driving exporters to seek alternative options Tuesday, 31 May :21 Australia s Sea Transport Corporation (STC) is developing an innovative trans-shipment solution for Ironclad Mining in South Australia. Ironclad was facing high production costs for their Wilcherry Hill iron ore mine due to the excessive transport and logistics costs associated with freighting the ore to the nearest available port some 540 kilometres from the mine site. STC developed a floating harbour trans-shipment solution that its said would offer significant cost savings in exporting the ore. Iron Ore will be road freighted to a small harbour close to the mine and shipped to an offshore trans-shipment facility three miles offshore using self-propelled feeder barges. The floating harbour trans-shipper (FHT) will stockpile the ore and then periodically load overseas export vessels bound for Asian markets. Similar trans-shipment operations exist throughout the world, however the system from STC has the ability to operate in higher sea states (up to four metres) and a larger capacity offshore stockpile. Source: Baird Maritime website 21

22 Future developments Southern Iron (Western Plains Resources subsidiary) iron ore to Port Pirie GWA contracted rail haulier 3.3m tonnes per annum ex Wirrida (50km south of Coober Pedy) 2 train sets operating 6 services per week Commencing mid 2012 Shed storage to barge for gulf loading of Cape Size vessels Rail access and paths contracted with ARTC Consistency of volume demand ideal rail freight task 22

23 Future developments cont Braemar Alliance Iron ore prospects west of Broken Hill Prospective high volume export requirements Seeking deep water port alternatives Wallaroo to Port Pirie Rotary dump containers to Port Adelaide for start up volumes? Rail capacity on the ARTC Broken Hill line Potential long term users of the future Port Bonython shipping facilities? 23

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