Genesee & Wyoming Australia
26th November, 2013

Genesee & Wyoming Inc.

1
Agenda
1.
2.

Overview of G&W Inc.
Arrium and G&W
 Win Win…

3.

Our rail services to Arrium

Genesee & Wyoming Inc.

2
Genesee & Wyoming Inc. 1899

The original
Genesee & Wyoming Railroad
14-miles in upstate NY
Serving one customer

Genesee ...
G&W Board of Directors 1899

Genesee & Wyoming Inc.

4
Early G&W Power

Genesee & Wyoming Inc.

5
New Power
4 x 4,300HP Locomotives in Remote
Distributed Power with
Electronically Controlled Pneumatic (ECP)
Braking
160 H...
POST ACQUISITION SUMMARY

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

2. Duplicative overhead eliminated
3. Expans...
Genesee & Wyoming 2013

Genesee & Wyoming Inc.

8
Overview

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

• Operate over 15,000 track
miles with ~1,0...
G&W Annual Carloads by Class I
54,000
160,500

366,500

299,000

53,500

235,000
345,000

Genesee & Wyoming Inc.

10
Illustrative Partnership with Class I:
G&W now handles 11% of CSX Carloads

Genesee & Wyoming Inc.

11
International Railroad Business
Revenues by Geography
Europe 1%

Canada
9%

Australia
20%

U.S. 70%
(8 Regions)

Revenues ...
Cultural Changes in Safety
Injury Frequency Rate per 200,000 man-hours

Genesee & Wyoming Inc.

13
Industry-Leading Safety
Injury Frequency Rate per 200,000 man-hours
G&W through September; others through July

3.1

2.9
2...
Only US Publicly Traded Short Line
(market cap in billions)

Genesee & Wyoming Inc.

15
Traditional Class I spinoffs
“First & Last Mile” to the Customer

Genesee & Wyoming Inc.

16
Genesee & Wyoming Australia
Overview

•

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

•

G&W views...
Genesee & Wyoming
Australia
8.9K tons/km

•

0.4K tons/km

•

3,500+ km of owned track
(2,200 km Tarcoola to Darwin)
Accre...
Arrium and GWA

Genesee & Wyoming Inc.

19
Financial performance since deal completed
- real test in the spirit of “win win’’…
120

Share Price for Year ending 20 No...
Optimising Capacity & Operating Performance

Genesee & Wyoming Inc.

21
Our Rail Services to Arrium

Genesee & Wyoming Inc.

22
G&W Service to Mining
Industry: Australia
GWA provides complete rail service
to Arrium’s (ASX: ARI) South Australia
operat...
Arrium Train Configuration – State of the Art
•
•
•
•
•
•

4 X 4,300 hp AC locomotives operating with distributed power
16...
Question and Answer

Genesee & Wyoming Inc.

25
Genesee & Wyoming Inc.

26
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Greg Pauline, Genesee and Wyoming: Win WIN

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Greg Pauline, Managing Director, Genesee and Wyoming delivered this presentation at the 2013 Mining South Australia conference. The conference has been produced specifically for the South Australian mining and regional development community and represents a unique opportunity to hear the latest developments from the major projects, mines and explorers in South Australia. For more information on the annual event, please visit the conference website: http://www.informa.com.au/miningsa2013

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Greg Pauline, Genesee and Wyoming: Win WIN

  1. 1. Genesee & Wyoming Australia 26th November, 2013 Genesee & Wyoming Inc. 1
  2. 2. Agenda 1. 2. Overview of G&W Inc. Arrium and G&W  Win Win… 3. Our rail services to Arrium Genesee & Wyoming Inc. 2
  3. 3. Genesee & Wyoming Inc. 1899 The original Genesee & Wyoming Railroad 14-miles in upstate NY Serving one customer Genesee & Wyoming Inc. 3
  4. 4. G&W Board of Directors 1899 Genesee & Wyoming Inc. 4
  5. 5. Early G&W Power Genesee & Wyoming Inc. 5
  6. 6. 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 Genesee & Wyoming Inc. 6
  7. 7. 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 Inc. 7
  8. 8. Genesee & Wyoming 2013 Genesee & Wyoming Inc. 8
  9. 9. Overview • 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 Genesee & Wyoming Inc. 9
  10. 10. G&W Annual Carloads by Class I 54,000 160,500 366,500 299,000 53,500 235,000 345,000 Genesee & Wyoming Inc. 10
  11. 11. Illustrative Partnership with Class I: G&W now handles 11% of CSX Carloads Genesee & Wyoming Inc. 11
  12. 12. International Railroad Business Revenues by Geography Europe 1% Canada 9% Australia 20% U.S. 70% (8 Regions) Revenues ~$1.6 billion Genesee & Wyoming Inc. 12
  13. 13. Cultural Changes in Safety Injury Frequency Rate per 200,000 man-hours Genesee & Wyoming Inc. 13
  14. 14. Industry-Leading Safety Injury Frequency Rate per 200,000 man-hours G&W through September; others through July 3.1 2.9 2.0 1.1 Genesee & Wyoming Inc. 1.0 1.0 1.0 0.9 0.8 14
  15. 15. Only US Publicly Traded Short Line (market cap in billions) Genesee & Wyoming Inc. 15
  16. 16. Traditional Class I spinoffs “First & Last Mile” to the Customer Genesee & Wyoming Inc. 16
  17. 17. Genesee & Wyoming Australia 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 • • • Genesee & Wyoming Inc. 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 17
  18. 18. Genesee & Wyoming Australia 8.9K tons/km • 0.4K tons/km • 3,500+ km of owned track (2,200 km Tarcoola to Darwin) Accredited rail operator in six states (all but Tasmania) • • • Traffic Density/km 0.47 reportable injury rate in 2012; YTD 2013 rate is 1.4 (5 injuries) • 1.4K tons/km 450+ employees 100 locomotives and 1,000 wagons 40+ daily train starts across South Australia, the Northern Territory and Victoria Key Customers / Commodities 8.3K tons/km 28.6K tons/km 2.2K tons/km 45K tons/km 0.7K tons/km Genesee & Wyoming Inc. • • • • • • • 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) 18
  19. 19. Arrium and GWA Genesee & Wyoming Inc. 19
  20. 20. Financial performance since deal completed - real test in the spirit of “win win’’… 120 Share Price for Year ending 20 November 2013 1.8 1.6 100 80 1.2 1 60 0.8 40 0.6 ARRIUM Share Price GWRR Share Price 1.4 0.4 20 0.2 0 Genesee & Wyoming Inc. 0 20
  21. 21. Optimising Capacity & Operating Performance Genesee & Wyoming Inc. 21
  22. 22. Our Rail Services to Arrium Genesee & Wyoming Inc. 22
  23. 23. G&W Service to Mining Industry: Australia GWA provides complete rail service to Arrium’s (ASX: ARI) South Australia operations (formerly OneSteel) • ARI owned rail network 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 Whyalla  GWA maintains all track and equipment • • Genesee & Wyoming Inc. 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) 23
  24. 24. 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 Genesee & Wyoming Inc. 24
  25. 25. Question and Answer Genesee & Wyoming Inc. 25
  26. 26. Genesee & Wyoming Inc. 26
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