Download - Greg Pauline, Genesee and Wyoming: Win WIN

1 Genesee & Wyoming Inc.

Genesee & Wyoming Australia

26th November, 2013


Agenda

1. Overview of G&W Inc.

2. Arrium and G&W

Win Win…

3. Our rail services to Arrium


Genesee & Wyoming Inc. 1899

The original

Genesee & Wyoming Railroad

14-miles in upstate NY

Serving one customer


G&W Board of Directors 1899


Early G&W Power


New Power

4 x 4,300HP Locomotives in Remote

Distributed Power with

Electronically Controlled Pneumatic (ECP)

Braking

160 Hoppers : 2 Crew Vans : 2 Inline Fuel

tankers

12,956 Gross train tonnes : 8,960 Net

product tonnes


POST ACQUISITION SUMMARY

1. Combined 1st & 2nd largest short line operators

2. Duplicative overhead eliminated

3. Expansion of existing G&W operating regions

4. Powerful commercial platform in 39 U.S. states and 4 Canadian provinces


Genesee & Wyoming 2013


• Own 111 railroads and employ 4,600 people serving 2,000 customers

• Operate over 15,000 track miles with ~1,000 locomotives

• Transport ~1.8 million annual carloads

Overview


G&W Annual Carloads by Class I

345,000

299,000

160,500

54,000

53,500

235,000

366,500


Illustrative Partnership with Class I: G&W now handles 11% of CSX Carloads


International Railroad Business

U.S. 70% (8 Regions)

Australia

20%

Canada

9%

Europe 1%

Revenues by Geography

Revenues ~$1.6 billion


Cultural Changes in Safety

Injury Frequency Rate per 200,000 man-hours


Industry-Leading Safety Injury Frequency Rate per 200,000 man-hours G&W through September; others through July

3.12.9

2.0

1.1 1.0 1.0 1.0 0.9 0.8


Only US Publicly Traded Short Line

(market cap in billions)


Traditional Class I spinoffs “First & Last Mile” to the Customer



Overview

• Australia is G&W’s largest and fastest growing region, 20% of total

• G&W views Australia as a key driver of its long-term growth

Safety & Accreditation

• 0.47 reportable injury rate in 2012 (2 injuries); YTD 2013 rate is 1.4 (5 injuries)

• Accredited rail operator in six states (all but Tasmania)

Assets & Operations

• 3,500+ km of owned track (2,200 km Tarcoola to Darwin)

• 450+ employees, 100 locomotives and 1,000 wagons

• 40+ daily train starts across South Australia, the Northern Territory and Victoria



• 0.47 reportable injury rate in 2012; YTD 2013 rate is 1.4 (5 injuries)

• 3,500+ km of owned track (2,200 km Tarcoola to Darwin)

• Accredited rail operator in six states (all but Tasmania)

• 450+ 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 (12.8M tonnes)

• Viterra / Grain (2.4M tons)

• Gypsum Resources / Gypsum (2.0M tonnes)

• Territory Resources / Iron Ore (1.5M tonnes)

• OM Holdings / Manganese (0.9M tonnes)

• OZ Minerals / Copper (0.25M tonnes)

• Adelaide-Darwin / Intermodal (1.0M tonnes)

8.9K tons/km

1.4K tons/km

0.4K tons/km

0.7K tons/km

28.6K tons/km

2.2K tons/km 45K tons/km

8.3K tons/km

Traffic Density/km


Arrium and GWA


Financial performance since deal completed

- real test in the spirit of “win win’’…

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Share Price for Year ending 20 November 2013


Optimising Capacity & Operating Performance


Our Rail Services to Arrium


G&W Service to Mining

Industry: Australia

GWA provides complete rail service

to Arrium’s (ASX: ARI) South Australia

operations (formerly OneSteel)

• GWA operate and maintain the ARI owned

155km rail network:

GWA hauls ~9 million tonnes from

mines to ARI’s port (Whyalla) and steel

mill

GWA maintains all track and

equipment

• GWA hauls ~3 million tonnes for ARI from

ARI’s mine at Peculiar Knob to Whyalla

• GWA hauls ~13 million tonnes of iron ore

for ARI annually and has invested more

than $130 million in capital to support this

business over the last three years

(rolling stock and maintenance facilities)

ARI owned rail

network Whyalla


Arrium Train Configuration – State of the Art

• 4 X 4,300 hp AC locomotives operating with distributed power

• 166 covered wagons with electronically controlled brakes

• In line fueling – no requirement to stop to refuel on route

• Crew van allows for continuous operation

• 15,000 gross tonnes – largest trains outside of Pilbara

• Initial service through Port of Darwin


Question and Answer