Post on 16-Feb-2018
1 Genesee & Wyoming Inc.
Genesee & Wyoming Australia
SAFC/ICHCA:
Sustainable Supply Chains Solutions Conference
October, 2014
Making Rail Freight Safe, Sustainable, Efficient & Productive
2 Genesee & Wyoming Inc.
Forward-Looking Statements
This presentation contains “forward-looking statements” regarding future events and the future
performance of Genesee & Wyoming Inc. that involve risks and uncertainties that could cause
actual results to differ materially from those expressed or forecasted, including, but not limited
to, economic conditions, customer demand, increased competition in the relevant market, the
integration of RailAmerica railroads, and others, many of which are beyond our control. The
Company refers you to the documents that it files from time to time with the Securities and
Exchange Commission, such as the Company’s Forms 10-Q and 10-K, which contain additional
important factors that could cause its actual results to differ from its current expectations and
from the forward-looking statements discussed during this presentation. Forward-looking
statements speak only as of the date of this presentation or the date they were made. Genesee
& Wyoming Inc. does not undertake, and expressly disclaims, any duty to update any forward-
looking statement contained in this presentation whether as a result of new information, future
events or otherwise, except as required by law.
3 Genesee & Wyoming Inc.
G&W Priorities
1. Safety: Our No. 1 priority
2. Customer Service: We exist to serve our customers
3. Local Accountability: Make decisions closest to the facts
4. Commitment to Excellence: Continuous improvement
5. Long-Term Partnerships: Customers, Large US Railroads, Local Communities
6. Long-Term Decision Making: Stewards of vital infrastructure assets
4 Genesee & Wyoming Inc.
• 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 capitalisation
• 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.
5 Genesee & Wyoming Inc.
Genesee & Wyoming 1899
The original
Genesee & Wyoming Railroad
14-miles in upstate
New York serving
one customer – a salt mine
we still serve today
7 Genesee & Wyoming Inc.
Our Core Purpose
To be the
safest and
most respected
rail service
provider
in the world.
8 Genesee & Wyoming Inc.
International Railroad Business
U.S. 70%
8 Regions
Australia
20%
Canada
9% Europe 1% Eleven regions with strong local
management combined with centralised
administrative and functional support
G&W’s organisational structure is designed
to provide the following benefits:
• Continuous Safety Improvement
• Focused Regional Marketing
• Lower Operating Costs through Local
Management
• Efficiently Deploy Capital
Canada
9%
Revenue by Geography Decentralised Organisational
Structure
10 Genesee & Wyoming Inc.
G&W History in Australia Since 1997
1997 • GWI privatises Australia National’s South Australia business
1999 • Start-up of intra-facility contract to serve OneSteel Whyalla (now Arrium)
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 to purchase certain ARG assets
• GWI retains original SA business, names it Genesee & Wyoming Australia (GWA)
2010 • GWA purchases FreightLink, expanding presence in central Australia
2012 • GWA signs long-term agreement to serve Arrium operations in South Australia
2013
• Bought in-house Terminal Operations - Alice Springs, Tennant Creek, Katherine and Darwin
• Insourcing of track maintenance
• Significant investment in locomotives & inline fuelling capability
2014 • Insourcing of mechanical maintenance
Since 2006,
G&W has
invested
more than
$650m in
Australia
11 Genesee & Wyoming Inc.
Safety is our number one priority….GWA initiatives
• Stop Work Authorisation
• Stop! Take 5
• October Safety Focus
12 Genesee & Wyoming Inc.
Amazingly no-one died…this time
• Idiot tries to drive a 4x4 across our
railway trying to mount the
embankment, ballast and rails
• Taking a huge risk with lives
• Crew was traumatised - he did not
know if anybody was in the car
• Network outage
• Cost to customers
• Significant cost to GWA
• A dumb way to die – Darwin Award…
13 Genesee & Wyoming Inc.
Genesee & Wyoming Australia (GWA) • 3,500+ km of owned track (2,200 km Tarcoola to Darwin)
• Accredited rail operator in six states
(all but Tasmania)
• 540+ employees
• 100 locomotives and 1,000 wagons
• 40+ daily train starts across South Australia,
the Northern Territory and Victoria
Key Customers / Commodities
• Arrium / Iron Ore
• Viterra / Grain
• Gypsum Resources / Gypsum
• Territory Resources / Iron Ore
• OM Holdings / Manganese
• OZ Minerals / Copper
• Adelaide-Darwin / Intermodal – six services
round trip each week
14 Genesee & Wyoming Inc.
Intermodal Overview
• Services departing Adelaide and Darwin 6 Days per week
• Enroute services to Alice Springs, Tennant Creek and
Katherine
• Container Services (both refrigerated and general)
• Piggyback Services (bulk liquids trailers)
• Interface Terminals (Adelaide, Alice Springs, Tennant Creek,
Katherine and Darwin)
• Commodities Include:
• Dry Groceries
• Chilled/Frozen Groceries
• Building/Construction Material
• Automotive Vehicles and Parts
• Mining Consumables
• Liquor
15 Genesee & Wyoming Inc.
Rail’s share of containerised freight
Source: Australasian Railway Association
16 Genesee & Wyoming Inc.
Sustainable & Efficient meet customer expectations
A Customer Perspective…
16
• Reliability (meet advertised Freight Availability times)
• Right balance of service, cost and risk
• Customer focused – the operators need to clearly understand customers’
needs…
• Understand customers’ supply chains
• Need to be able to “sensibly” compete with road freight – productivity
and flexibility
• Logistics – efficient terminal access and locations
• Price
Source: Australasian Railway Association
17 Genesee & Wyoming Inc.
Genesee & Wyoming Australia Capabilities
• As an accredited above and below rail operator
in Australia, GWA has in place
– Compliant Safety Management programs
– Compliant Risk Management systems
– Systems and personnel for train control
– Management systems for above and below rail maintenance
– Systems and personnel for terminal operations
– Long-term relationships with rolling stock providers in Australia and internationally
– Long term relationships with third party below rail maintenance providers
– In house training programs for drivers and other operating personnel