case study: the adelaide to darwin rail link
DESCRIPTION
Robert Easthope, Managing Director Australia Region, Genesee and Wyoming delivered this presentation at the 2012 Ausintermodal conference. For more information on the annual event, please visit the website http://bit.ly/18MD4XMTRANSCRIPT
1 Genesee & Wyoming Inc.
Genesee & Wyoming Australia
October 2012
AusIntermodal 2012
2 Genesee & Wyoming Inc.
Discussion
• Overview of GWI
• GWA & Business
• Intermodal Business
• Investment
• Future Opportunities
3 Genesee & Wyoming Inc.
Genesee & Wyoming Inc
4 Genesee & Wyoming Inc. 4 Genesee & Wyoming Inc.
Genesee & Wyoming Inc Overview
• Listed on New York Stock Exchange with market cap of ~$2.9 billion (pre Rail America)
• Own 66 railroads and employ ~2,600 people
• Operate over ~ 9,000 track miles with ~600 locomotives
• Over 850 Customers
• Provide rail service in the United States, Canada, Australia, the Netherlands and Belgium
5 Genesee & Wyoming Inc.
Outstanding Safety Performance 2012 Injury Frequency Rate per 200,000 man-hours. Through August
3.10 3.00
2.28
1.03 1.0
0.07
0.67 0.53 0.48 0.49
0 0 0 0 0
6 Genesee & Wyoming Inc.
Genesee & Wyoming 2012
7 Genesee & Wyoming Inc.
Genesee & Wyoming 2012 (Rail America)
8 Genesee & Wyoming Inc.
Our Core Purpose
To be the safest and most respected rail service provider in the world.
9 Genesee & Wyoming Inc.
Industry Leading Customer Satisfaction
Genesee & Wyoming Australia
11 Genesee & Wyoming Inc.
Genesee & Wyoming (GWI) History in Australia
1996 • GWI privatises Australia National’s SA business
1999 • Start-up of intra-facility contract to serve OneSteel Whyalla
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 and purchase certain ARG assets • GWI retains original SA business, names it Genesee & Wyoming Australia (GWA)
2010 • GWA purchases FreightLink, expanding presence in Australia
12 Genesee & Wyoming Inc. 12 Genesee & Wyoming Inc.
Genesee & Wyoming Australia Pty Ltd
• 0.67 reportable injury rate YTD 2012 (2 injuries) – Currently 222 days injury free at 23 October 2012
• 400+ employees – located in Adelaide, Alice Springs, Darwin, Ceduna, Port Lincoln, Whyalla, Port Augusta, Tailem Bend and Parkes (NSW)
• 85+ locomotives and 950 wagons – 19 new high-horsepower locos
• 3,500+ km of owned track
• Accredited rail operator in six states (all but Tasmania)
13 Genesee & Wyoming Inc.
GWA Safety
Genesee & Wyoming Australia
Injury Frequency Rate per 200,000 Employee Hours as at September 30, 2012
0.48 0.81 0.55 0.53 0.27
0.67 0.50 0.0
1.0
2.0
3.0
2006 2007 2008 2009 2010 2011 2012 YTD 2012Goal
GWA
14 Genesee & Wyoming Inc.
Customer Base - SA • Arrium (6.8mtpa of iron ore exports and intra-facility
shunting in Whyalla NG, 3.8mtpa Wirrida to Whyalla ST)
• Viterra/Glencore (3mtpa of grain in South Australia)
• Bulk Minerals • GRA (1.8mtpa of gypsum)
• Penrice (0.5mtpa of marble)
• Crewing Services • SCT services
• Parkes-Pt Augusta – 1 service per week
• Melbourne-Perth 4 services per week
15 Genesee & Wyoming Inc.
OZ Minerals • Up to 250,000 tonnes of copper-gold concentrate
ore per annum
• Rail haulage to Port Adelaide
• 116 kilometre haul road to Wirrida rail siding
• Direct loading of 20’ half height containers road to rail at Wirrida
• Two dedicated rail services per week between Wirrida and Port Adelaide
• Two new 3000hp locomotives and over 44 flat wagons
Adelaide
Bigrlyi Uranium
Nolans Bore Molyhil Tungsten
Tarcoola
Darwin
Alice Springs
Tennant Creek
Prominent Hill Wirrida
16 Genesee & Wyoming Inc.
OM Manganese • 900,000 tonnes of manganese ore per annum • Rail haulage over 800 kilometres Muckaty to
Darwin • 60 kilometre haul road to Muckaty rail siding
from mine • Stockpile to bulk rail wagon loading at Muckaty
siding • Four dedicated trains per week to Darwin • Bottom discharge from rail wagons to stockpile
at Port of Darwin
Bigrlyi Uranium
Nolans Bore Molyhil Tungsten
Darwin
Bootu Creek
Tennant Creek
Alice Springs
Muckaty
17 Genesee & Wyoming Inc.
Territory Resources • Task 1.5 million tpa of haematite iron ore
• Rail haulage 210 kilometres to Darwin
• 15 kilometre haul road to Union Reef rail siding
• Stockpile to bulk rail wagon loading at Union Reef
• Eight dedicated trains per week between Union Reef and Darwin
• Bottom discharge from rail wagons to stockpile at Port of Darwin
Bigrlyi Uranium
Nolans Bore Molyhil Tungsten
Darwin
Francis Creek
Tennant Creek
Alice Springs
Union Reef
18 Genesee & Wyoming Inc.
GWA Intermodal - Northbound • 6 services per week • Trains 1800 m long • Average 4000 tonnes • Journey to Darwin – 2 days • Crews work relay working – state of art
resting facilities • New high horse power locomotives
Adelaide
Bigrlyi Uranium
Nolans Bore Molyhil Tungsten
Tarcoola
Darwin
Alice Springs
Katherine
Tennant Creek
2000 kms
19 Genesee & Wyoming Inc.
GWA Intermodal
• Terminals – Adelaide - services provided under contract by PN – Alice Springs – GWA owned & operated – Tennant Creek – GWA owned & services provided
under contract by Linfox – Katherine – GWA owned & services provided
under contract by Linfox – Darwin – GWA owned & operated
20 Genesee & Wyoming Inc.
GWA Intermodal • Locations Serviced
– Adelaide – Alice Springs – Tennant Creek – Katherine – Darwin
• Container Types – 6.1m (20’), 12.2m (40’), 13.7m (45’),
14.6m (48’) and 16.15m (54’) – Refrigerated (diesel powered) – Insulated / Ventilated – General Purpose – Tautliners – Transi-flats /Flat Racks
21 Genesee & Wyoming Inc.
GWA Intermodal • Major Customers
– Scott Group (NTFS) – Toll Group (Toll Express, NQX,
Automotive, Ipec) – Woolworths – Northline – Linfox
• Major Commodities – Fresh Fruit and Vegetables – Fast Moving Consumer Goods – Motor Vehicles – Cement – Commercial Furniture – Mail – Whitegoods – Personal Effects
22 Genesee & Wyoming Inc.
Freight Availability
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Freight Availability - Northbound
2010
2011
2012
23 Genesee & Wyoming Inc.
Freight Availability
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Freight Availability - Southbound
2010
2011
2012
24 Genesee & Wyoming Inc.
Intermodal Traffic
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Total Intermodal Containers
2010 2011 2012
Jan, Feb, Mar 2012 includes containers terminated Katherine due Edith River Bridge
25 Genesee & Wyoming Inc.
Investment • Locomotives
– 9 x 4300 AC Locomotives – for Intermodal & Other Business were delivered June 2012 and are in service on the corridor.
• Crew Vans – Overhaul of existing 4 Crew Vans – 4 are completed.
• Lifting Equipment – Purchase of new lifting equipment for Alice Springs & Darwin
• 2 Darwin • 1 Alice Springs
• In-line fuelling – Purchase of equipment for In-Line fuelling (intermodal) – five
systems commissioned and in service.
• Terminal Acquisition – Purchase of Alice Springs Terminal
26 Genesee & Wyoming Inc.
Infrastructure Investment • McKinlay River bridge scour protection -
completed
• Place at various locations - additional inventory (rail, sleepers, ballast) for emergency recovery - completed
• Earth bund at Bridge Creek to mitigate
• Investment in weather monitoring and advance weather warning services
• Rail defect removal program Tarcoola-Alice Springs
August 2011
December 2011
27 Genesee & Wyoming Inc.
Organic Growth Opportunities
-
Adelaide
Darwin
Tarcoola
Developing Natural Resources Projects in South Australia and Northern Territory:
• Iron Ore • Rare Earths • Phosphates • Manganese • Nickel • Coal • Copper/Gold/Uranium
Katherine
Alice Springs
Roxby Downs
28 Genesee & Wyoming Inc.