BHP Billiton Iron Ore Railroad Presentation to Analysts June 2005 Mike Darby, Vice President Rail Iron Ore
Rail System Location Map The Nelson Point - Newman Railway is 426km Port Hedland-Yarrie Railway is 208km Yandi spur line is 30km Area C spur line extension from Yandi is 38km Jimblebar spur line is 32km Page 2
Safety Performance - Rail Classified Injuries 50 47.3 Classified Injury Frequency Rate for Rail (including contractors) 45 40 35 30 28.1 25 20 17.2 15 10 7.8 10.4 12.6 11.6 10.5 9.5 11.6 10.5 10.5 9.5 10.5 8.2 5 0 00/01 01/02 02/03 03/04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Historical Actual CI Actual Page 3
Page 4 61 110 FY66 FY68 FY84 FY86 FY88 FY90 FY92 FY94 FY02 FY04 RGP FY96 FY98 FY00 Tonnes Railed Rapid Growth Period FY70 FY72 FY74 FY76 FY78 FY80 FY82
Jul-04 Sep-04 Nov-04 J an-05 Mar-05 Rail KPI s - Long Trains (300-336 Cars) Number of Train Runs Apr 05 3,642 Long Trains YTD 1,053 Trains Yandi & MAC Newman Sep-00 Nov-00 J an-01 Mar-01 M ay-01 Jul-01 Sep-01 Nov-01 J an-02 Mar-02 M ay-02 Jul-02 Sep-02 Nov-02 J an-03 Mar-03 M ay-03 Jul-03 Sep-03 Nov-03 J an-04 Mar-04 Jul-00 M ay-04 Page 5 3,642
Million Tonnes Railed Per Employee Employee Productivity Tripled in the last 10 years 0.353 0.301 0.216 0.245 0.258 0.126 0.148 0.151 0.167 0.179 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 Page 6
Railroad Manning 362 297 288 290 302 322 339 375 FY99 FY00 FY01 FY02 FY03 FY04 FY05 Actual FY05 Plan Page 7
Rolling Stock Fleet Expansion Program 4,000 Original 3,500 8 AC600 Locos 40 Dash 8 Locos Rakes Ore Cars Arrival of 6 SD40 3,203 Arrival of 13 SD70 3,410 2210 Ore Car 2,971 3,000 Arrival of 6 SD40 33 33 33 Arrival of 5 SD40 2,484 32 32 32 31 31 2,500 30 30 2,210 29 29 29 29 29 28 28 27 27 Arrival of 3 SD40 26 26 25 25 2,000 24 24 23 23 23 22 22 22 22 21 21 21 1,500 1,000 12 Train Schedule 500 10 Train Schedule 0 Feb-03 Mar-03 Apr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Page 8 50 45 40 35 30 25 20 15 10 5 0
Locomotive Fleet Dash 8 AC6000 SD40 SD70ace Number 40 8 20 13 (Oct05) Traction Horsepower 4,000 6,000 3,000 4,300 Dash 8 SD40 AC6000 Page 9
Page 10 Automatic Train Protection - ATP System
Current Train Operations Newman Line 12 ore trains per day / 14 trains 1 July 05 Flexibility of One / Two / Three Rake Trains Train configuration: 1 rake = 104 ore cars = 12,480 tonnes of ore 2 rakes = 208 ore cars = 24,960 tonnes of ore 3 rakes = 312 ore cars = 37,440 tonnes of ore Goldsworthy Line 4 ore trains per day Train configuration: 90 ore cars = 7,650 tonne of ore Page 11
Asset Protection 12 Hotbox / Hot Wheel Detectors 1 Cold Wheel Detector 1 Wheel Impact Monitor 3 in Motion Weighbridges Acoustic Bearing Detection Dragging Equipment Detectors Auto Locomotive Downloads Video Imaging Page 12
Instrumented Ore Cars (IOC) 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 Page 13
IOC Reporting Automatic data downloading Dumping Forces Measured Page 14 Car side wall strains
IOC Other Applications Bearing Temperature & Brake Pressure Track Assessment Sensors Improve Car Body Life Strain Gauge on Sidewalls Measure Car Body Dumping Strains Control Service Dumping Peaks Page 15 Strain Gauge on Draft Gear Pocket Measure Longitudinal Train Forces Control Service Loading Peaks & In Train Forces
Acoustic Bearing Detection The following bearing faults are detected: Cone Faults Roller Faults Audible Wheel Flats Cup Faults Looseness / fretting Noisy Wheel sets (flanging) Page 16
Video Imagining Technology Flange Height Flange Width Vertical Flange Hollowing Depth Rim Thickness Page 17 Wheel Diameter
Video Imaging Reporting 1. Tabulated 2. Pictorial 3. Graphical Page 18
37 Traceable Components for each Ore Cars Page 19
Wheels Ultrasonic Testing Page 20
Train Driving Simulator Used To Define Driving Strategy & Training Needs Page 21
Aluminothermic / Flash Butt Page 22
In Track Flash Butt Welder Page 23
Rail KPI s Broken Rails 62 69 64 56 49 37 34 29 25 36 27 23 4 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 April Page 24 Calendar Year
Best Practice R&D programme since 1970, combination of in-house & Monash University It focuses on four main areas:- Rail / Wheel Interface Higher Axle Load Train Lengths / Cycle Time Components Life Page 25
Higher Axle Load Operating Improvements Axle Load 40.2 tonnes Wet tonnes per wagon 28.5 tonnes 89 30.0 tonnes 32.5 tonnes 96 107 35.0 tonnes 116 Yandi 37.5 tonnes 126 Yandi 1970 1974 1986 1996 99-04 Page 26
Rail / Wheel Interface 1.9 Ore Car Wheel Life Million Tonne Kms 0.34 1980 2005 1,800 Rail Life (Tangent Track) Million Gross Tonnes 350 Page 27 1980 2005
Train Lengths / Cycle Time 312 180 208 Train Lengths Train Length Cars per Train Cars / Train 131 1972 1984 1992 40 Current 36 Train Cycle Time Hours 30 Page 28 1972 1984 Current
Environmental & Efficiency 1.45 Contributing Factors Rail / Wheel profile Page 29 0.68 1978 2005 Fuel Savings Aerodynamic Ore Cars Efficient Locomotives Distributed Power Higher Axle Load Longer Trains Driver Strategy
What s in the Future Continued Safety Focus 40 tonne axle loading Cruise Control Train Automation Electric Brake Trials Increased Tonnage (16 train schedule arrival based) Page 30