Genesee & Wyoming Australia SAFC/ICHCA Conf Presentations/Greg... · Genesee & Wyoming Australia...

1 Genesee & Wyoming Inc.

Genesee & Wyoming Australia

SAFC/ICHCA:

Sustainable Supply Chains Solutions Conference

October, 2014

Making Rail Freight Safe, Sustainable, Efficient & Productive


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.


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


• 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.


Genesee & Wyoming 1899

The original

Genesee & Wyoming Railroad

14-miles in upstate

New York serving

one customer – a salt mine

we still serve today


Genesee & Wyoming Inc. 2014


Our Core Purpose

To be the

safest and

most respected

rail service

provider

in the world.


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

Private & Confidential

Genesee & Wyoming Australia


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


Safety is our number one priority….GWA initiatives

• Stop Work Authorisation

• Stop! Take 5

• October Safety Focus


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…


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


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

• Mail


Rail’s share of containerised freight

Source: Australasian Railway Association


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


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

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