Clean Coal Day presentation - JCOAL 一般財団法人 ... · Clean Coal Day presentation Mike...
Transcript of Clean Coal Day presentation - JCOAL 一般財団法人 ... · Clean Coal Day presentation Mike...
Clean Coal Day presentation
Mike CarterMike CarterExecutive Vice President, Network
September 2013p
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Aurizon overviewAurizon overview• Australia’s largest rail
f i ht h lfreight hauler• Top 50 ASX-listed
company• Market capitalisation• Market capitalisation
more than AU $9 billion*• More than 100 sites
across Australia • Employing
approximately 8000 people in hundreds of
iticommunities across Australia
• We move products worth more thanworth more than $50 billion in export earnings every year
* at 12 August 2013
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* at 12 August 2013
K tKey revenue streams
• Haul on average >700 000 tonnes of coal
• Hauling 49.3 Mtpa of bulk minerals and
• We operate and manage the 2 670
• First third party haulage provider to>700,000 tonnes of coal
each day, hauling over 194 Mtpa
• Servicing near to 50 mine sites in
bulk minerals and commodities including Alumina, Bauxite, Nickel, across road and rail
manage the 2,670 kilometre open access Central Queensland Coal Network (CQCN)
• Construction of
haulage provider to the iron ore industry in Western Australia
• Headquartered in Perth with six iron50 mine sites in
Queensland and New South Wales
• Supply chain solutions
• Strategically located maintenance depots across Australia
Construction of brownfield and greenfield rail expansion projects
• Additional network
Perth with six iron ore depots across Western Australia
• Hauling 24.7 Mtpa of iron ore across 1,300km
services of track
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L d t A t liLeveraged to Australian resources
Aurizon FY12 CommodityRevenueMixAurizon FY12 Commodity Revenue Mix
18%
Coal
54%10%
6%Bulk Minerals
Agricultural Products
13%
Iron Ore
Other
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Japan is a strong long-term Queensland and Aurizon partner We encourage continuing Japanese involvement and commitment to the growth of g g p g
Australian coal
Thermal coal exports (volume) by destination FY12
Metallurgical coal exports (volume) by d ti ti FY12
11%
8%18%
28%
destination, FY12destination, FY12
11%
18%
44%6%
28%
Japan So th Korea 18%
18%1%
12%
15%20%
Japan
ChinaTaiwanIndiaSouth Korea
Other
Source: Australian Bureau of Statistics, customised report
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, p
Aurizon rail tonnagesg
FY11 FY12 FY13
Network – Tonnages (million) 164.0 166.7 182.3
Coal – Tonnages (million) 181 6 185 6 194Coal Tonnages (million) 181.6 185.6 194
Iron Ore – Tonnages (million)NA
13.6 24.7
Freight* – Tonnages (million) 53.0 49.3
Aurizon transports ~60% of all Australian export and domestic coal
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Strong financial and operational performance for FY13 highlights transformation underway
Safety • 60% improvement in LTIFR; 54% improvement in MTIFR
Earnings • Underlying EBIT up 29%
O i i 3 6 i f 83 4% 9 8% O k f % iOperating ratio • 3.6ppt improvement from 83.4% to 79.8%; On track for 75% in FY15
Coal contracts • ~120 mtpa contracted tonnes secured under new form contractsCoal contracts 120 mtpa contracted tonnes secured under new form contracts during FY2013
• Key customer contracts won include – BHP Billiton Mitsubishi Alli d BHP Billit Mit i C l C k t C l J lli b hAlliance and BHP Billiton Mitsui Coal, Cockatoo Coal, Jellinbah Group, Rio Tinto, Whitehaven and Glencore Xstrata
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CQCN coal haulageCQCN coal haulageIn 2013, 44 operating coal mines in the Bowen Basin were linked to the CQCN. These mines transport both metallurgical and thermal coal via the network on which coal volumes have increased by 38% since FY02metallurgical and thermal coal via the network, on which coal volumes have increased by 38% since FY02
Volume breakdown (2013, mtpa)1
100%
26%
61%
89%
27%
Moura
74%
Blackwater
39%
Goonyella
11%
Newlands
73%
Thermal CoalMetalurgical Coal
200
150
+38%
CQCN historical coal volumes (FY02 – FY2013, mtpa)2
MouraBlackwaterGoonyellaNewlands
150
100
50
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0FY13FY12FY11FY10FY09FY08FY07FY06FY05FY04FY03FY02
8Goonyella
BlackwaterMoura
NewlandsGAPE
More than 70 Mtpa of committed extra coal capacity in Queensland
+76 MtpaMtpa
CQCN capacity under construction
310
capacity in Queensland
229 234272
Additional capacity by 2015
FY15FY12FY11FY10
GAPE (NML) +33 Mtpa
Wiggins Island Rail Project +27 Mtpa
Hay Point +11 Mtpa
Other +5 Mtpa
Total +76 Mtpa
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Update on major committed growth projectsUpdate on major committed growth projects
Wiggins Island • Construction commenced in FY12Wiggins Island Rail Project (WIRP)
Construction commenced in FY12• $341m spent to end FY13• Final commissioning expected in late CY15 in line with mine development• WICET port construction delayed by approximately nine months
QLD
Hay Point Rail Expansion
• Expansion of Goonyella system to support Hay Point port upgrade• Revised target of ~$130m investment to add a further 11mtpa below rail capacity – project
on time and on budget• First railings expected in CY14
QLD
Hunter Valley Hexham
• Progressing Train Support Facility (TSF) to support growth in NSW coal • Final design has amalgamated earlier plans for three stages of construction into a
multipurpose facility servicing locos & wagons, provisioning and unit train maintenance• An Environmental Assessment submitted to Department of Planning and Infrastructure
NSW
currently awaiting approval• Commissioning expected in CY14
Whitehaven• Up to $280m approved for investment in locomotives and wagons• Aurizon is working closely with Whitehaven and ARTC to expand the capacity through Whitehaven g y p p y g
heavier track axle load capability• Expect full ramp up of tonnages by third year after project commencement.
Below Rail Coal Above Rail Coal
NSW
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The Central Queensland Coal Network is very expandableexpandable
…the Central Queensland Coal NetworkOptions to expand…
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Additional passing loops1.
2Duplications/Triplications
I f t t
2.
3 Infrastructure enhancements e.g. Re-signalling, Grade easing
3.
New rolling stock technology/operating mode
4.
Greenfield network connections
5.
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Securing further growth opportunitiesSecuring further growth opportunities
Coal – Queensland & New South Wales• Bowen Basin and Hunter Valley - continue to investigate opportunities within existing operating
footprints• Surat Basin
– Aurizon is a JV partner in Surat Basin Railway, with ATEC Rail Group & Glencore Xstrata Coal to support potential thermal coal developments
• Galilee Basin– Queensland Government endorsed two rail corridors, including proposed Aurizon GVK Hancock
Infrastructure solutionA i i l h l l d l– Again to support potential thermal coal developments
Iron Ore – Western Australia• Continue to investigate opportunities within existing operating footprints• Pilbara - Joint study with Atlas Iron and Brockman Mining into a multi-user open access iron ore
railway in the East Pilbara has been completed; discussions with a number of parties are ongoing.
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Transformation strategyTransformation strategy
• Embed a high performance culture through safety and leadership
• Improve operational performance and accountabilityPerformance Based Culture
• Drive improved performance based contracts• Improve volume throughput and customer satisfaction• Differentiated solutions that are valuable for our customers
Customer Focus• Differentiated solutions that are valuable for our customers
• Build commercial capability with return driven benchmarks• Improved fleet availability & reliabilityCommercial Capability Improved fleet availability & reliability• Whole of Life Asset Management
Commercial Capability
• Embed industry leadership by benchmarking against North• Embed industry leadership by benchmarking against North American Class1 railroadsIndustry Leadership
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Operations will deliver productivity improvementOperations will deliver productivity improvement
• Completing the final steps in the functional reorganisation and building capability
Strategic Themes
reorganisation and building capability
• Leveraging an integrated approach to the businessg
in theOperations
• Reducing and variabilising the Operations cost basep
Transformation • An intense focus on assets will unlock significant value – fleet plans are being reworked to reflect the new opportunities e o ed o e ec e e oppo u esnow being identified
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Building a culture of performance – getting the balance right
Service People• Delivering what • Accountable
we promise -consistently
• Productive• Clear metrics
DisciplinedProductivity & Efficiency
Cost Control
• Intense focus on
Disciplined Execution Of
The Integrated Operating Plan
Safety
• Unit costs a focus
assets and capacity• Continuous
improvement
• Underpins everything we do
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World class Network utilisation is not possible ith t ld l i twithout world class maintenance
Reactive to preventative to predictive
Harden and modernise the assetpredictive asset
Transform infrastructure maintenance toTransform infrastructure maintenance to world class
Greater utilisation of technology in diagnosis of
requirements
Continue to improve resource flexibility and
efficiency
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The main game – lift Network utilisation for theThe main game lift Network utilisation for the benefit of all
Next generation technology to drive precision planning
Next generation technology to drive precision executionto drive precision planning to drive precision execution
Optimise Network capacity to world classOptimise Network capacity to world class utilisation
The Network Development Plan leveraging low cost
options to increase volumes
Collaboration to enhance decision making and supply
chain effectiveness
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Coal veneering in central Queensland
Aurizon is part of a coordinated effort by the supply chain to address coal dust onthe supply chain to address coal dust on the rail corridor
We are working in cooperation with the Q l d G t t i l tQueensland Government to implement a Coal Dust Management Plan
A biodegradable polymer is sprayed onto g p y p ythe surface of the loaded coal
The veneer forms a crust and reduces coal dust emissions by up to 85% Thecoal dust emissions by up to 85%. The product has no adverse human or environmental impacts
All t l Q l d i t b fitt d All central Queensland mines to be fitted by the end of CY 2013; work underway also to veneer on South West System
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Excellent outcome for the community and industry
Trackside monitoringgVIPA
Transmit Unit
VIPA Receive
Wind Speed Sensor
Central Unit
UnitUnit
Sensors:RH. Temp Rain
Weather Station
p
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Improved planning and optimisation benefits all by facilitating higher tonnagesby facilitating higher tonnages
Benefits Minimising scheduling changes
Planning Alterations
Reduced from 40 at it’s highest point to 2 per day in Goonyella system (J l 2012 to J n 2013)
50
60
40
Disciplined PlanningRegime implemented
(Jul 2012 to Jun 2013)
Total Speed R t i ti
Prior to implementation, TSR avg. 50 days duration (Jun-Oct 2012) 10
20
30
40
95% Improvement in schedule variation
40
2Restrictions (TSR)
y ( )Since implementation avg. 15 days –70% decrease (Oct-Jun 2013)
B l R il Goonyella avg. BR delays reduced by
-10
02/07/2012 30/07/2012 27/08/2012 24/09/2012 22/10/2012 19/11/2012 17/12/2012 14/01/2013 11/02/2013 11/03/2013 8/04/2013 6/05/2013
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Improvement in below rail delaysBelow Rail Delays (>15mins)
Goonyella avg. BR delays reduced by 38% from FY11/12 Newlands avg. BR delays reduced by 29% from FY11/12
612,598
450,000
500,000
550,000
600,000
650,000
-38%
Act Var Mins FY11/12Act Var Mins FYTD
Path Availability
Increased pathing availability through better alignment of asset activities and smoothing constraints creating 745 additional paths for Goonyella 200,000
250,000
300,000
350,000
400,000
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additional paths for Goonyella
0
50,000
100,000
150,000
Jul-12 Jun-13
Unlocking new productivity and efficiency b fit f h li ti i f il tbenefits from an holistic view of rail assets
Network Development Plan Energy savings through regenerative braking p
• Will allow existing infrastructure to support more train services
gy g g g g
Time(hr /
Train rate
Train density
(tonnes /
Throughput(tonnes / • Conservative cost savings of $2 5m from 6 5% less(
year) (m / hr) (tonnes / m)
(year)
Improvements f lli
Improvements for all traffic
• Conservative cost savings of $2.5m from 6.5% less feeder station power usage as well as lower CO2emissions
• Commenced adaption of all locomotives in the for new rolling stock and track
Train separationAvailability
Goonyella System
ving With Pacific National
Higher axle load
Train lengthUtilisation
tage
Ene
rgy
Sav locomotives included
With Aurizon Blackwater locomotives included
Closer axles
Train speedAlignment
Per
cen
Aurizon Goonyella locomotives
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No. of locos equipped with regenerative braking
Conservative forecastPotential upside
Contact DetailsContact DetailsAurizon Pty LtdAurizon Pty Ltd175 Eagle Street, BRISBANE QLD 4000Phone: +61 7 3019 7480Email: [email protected]
Trade and Investment Queensland Japan OfficeQueensland GovernmentPhone: 03 6841 0595Email: [email protected]