1
eastwestlineparkslimited
HEAVY HAUL RAIL CONFERENCE
Newcastle City Hall 27th -28th August 2014
Project Iron Boomerang
“Y...
eastwestlineparkslimited
Disclaimer
• This presentation has been prepared by East West Line
Parks Limited (“EWLP”).
• EWLP...
eastwestlineparkslimited
PIB Banner
of supply-chain fully
optimised & integrated
logistics and infrastructures
of
Mine - R...
eastwestlineparkslimited
Project Update HH Rai Newcastle
1.PIB “Big Picture” Indicative National Economic Benefits.
Total...
eastwestlineparkslimited
PIB Projected Economic Tax Revenue Benefits
Influences for the current Budget Future Planning Fo...
eastwestlineparkslimited
Heavy Haul Rail Newcastle
Project Update August 2014
1. PIB Spreadsheet Costed 2013 Updated Summa...
eastwestlineparkslimited
1 - PIB Spreadsheet Summary Costed Updated 2013
• “Key Point Findings” on the projects base busin...
eastwestlineparkslimited
5. Boomerang Class Slab and Container Ship has progress to 20-year
world patent stage August 2013...
eastwestlineparkslimited
Australia leads the world in heavy haul rail technology.
Why aren’t we applying and planning such...
eastwestlineparkslimited
100% 85%
40 T axle Tippler or Bottom Dump
PIB Generation Overview
Coke Oven
SM 1
SM 2
SM 3
SM 4
SM 5
1,400 MW
New
Embedded
Loads
New
Embedded
Loads
Power Station
De...
eastwestlineparkslimited
Project Update HH Rai Newcastle 2014
A World First - Steel Industry History Tender Request
for 1...
eastwestlineparkslimited
2 - Currency Sensitivity Effect 7-P Report August 2013.
by Tata Steel Consulting UK “TSC” Au/US$ ...
eastwestlineparkslimited
PIB S-Korea Dr Kim personal Hyundai Steel Plant Site Visit 14-11-2013
3x4m tpy BF = 12m tpy most ...
eastwestlineparkslimited
 PIB Next Steps & Action
1. Announced Federal Government national support for the PIB
concept an...
18
eastwestlineparkslimited
Thank youThank you
Shane Condon - East West Line Parks - Case study - Update on Project Iron Boomerang's nation-building fully integrated and...
Shane Condon - East West Line Parks - Case study - Update on Project Iron Boomerang's nation-building fully integrated and...
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Shane Condon - East West Line Parks - Case study - Update on Project Iron Boomerang's nation-building fully integrated and optimised mine, heavy haul rail, steel complex , port and ship infrastructure

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Shane Condon delivered the presentation at the 2014 Heavy Haul Rail Conference.

The 2014 Heavy Haul Rail Conference had a focus on driving efficiency with smarter technology. Australasia’s only heavy haul rail event is the annual meeting place for professionals interested in the latest projects, technologies and innovation in this dynamic sector.

For more information about the event, please visit: http://bit.ly/hhroz14

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Shane Condon - East West Line Parks - Case study - Update on Project Iron Boomerang's nation-building fully integrated and optimised mine, heavy haul rail, steel complex , port and ship infrastructure

  1. 1. 1 eastwestlineparkslimited HEAVY HAUL RAIL CONFERENCE Newcastle City Hall 27th -28th August 2014 Project Iron Boomerang “Yes we can make sustainable globally competitive 1st stage Steel in Australia” Case Study Up-Date of Project Iron Boomerang For Global Sustainable/Profitable Steel Production. Shane Condon - MD & Founder
  2. 2. eastwestlineparkslimited Disclaimer • This presentation has been prepared by East West Line Parks Limited (“EWLP”). • EWLP has prepared this presentation based on information available to us. All statements, other than statements of historical fact, are forward looking statements that involve risks and uncertainties. There can be no assurances that such statements will prove accurate and actual results and events could differ materially from those anticipated in such statements. • EWLP does not assume the obligation to update any forward looking statement.
  3. 3. eastwestlineparkslimited PIB Banner of supply-chain fully optimised & integrated logistics and infrastructures of Mine - Rail - Port & Ships
  4. 4. eastwestlineparkslimited Project Update HH Rai Newcastle 1.PIB “Big Picture” Indicative National Economic Benefits. Total PIB 10 mill Steel Production of 44m tpy Steel fob Value $22bn p/a - $11bn value added consuming 116m tpy iron ore coal and limestone p/a. •Ref TSC & NRI TSC & NRI both confirm “directly related generated economic benefit” standard models per $1 of steel production is $3-$1. Indicative PIB Steel $22bn + econ benefit $66bn p/a = $88bn p/a in total direct related economic activity. Permanent Total Employment 35,000 • 20,000 at Abbot Point QLD & 12,000 at Newman Pilbara WA. Ref TSC & NRI • An integrated industrial services town of 42,000 at Bowen Qld is scoped by NRI Japan. – Construction 7-8 years Est. 75,000  - Operations with secondary support industries 75,000  Once proven a two PIB times repeat possilility.
  5. 5. eastwestlineparkslimited PIB Projected Economic Tax Revenue Benefits Influences for the current Budget Future Planning Forecast •Steel Production $22Bn p/a $11Bn value added by 2023 •World Steel $3 for every steel $1 generates Economic Benefit of $66Bn •Generating new taxable economic growth revenues of $77Bn at say 30% tax av Commercial and/or Individual tax rate - indicates a conservative net tax revenue potential of: (not including other tax areas GST/Fuel Local Govt Rates and Taxes etc.) •$23Bn p/a Net Tax Forecast Revenue by 2022/23 PIB could be confirmed and factored in by end of the current term of this Abbott Government!  National PIB Commercial Infrastructure CAPEX Cost Savings in not expanding the global supply chains.
  6. 6. eastwestlineparkslimited Heavy Haul Rail Newcastle Project Update August 2014 1. PIB Spreadsheet Costed 2013 Updated Summary (ref 1 page excel summary) Key Point Findings on the projects base business case only!  ROE after Tax indicating 12% $660m p/a or $60m ea. x10 PIB consortium steel mill + PIB. 2. PIB Currency Sensitivity Effect 7-P Global Steel Sustainable Advantage Report August 2013. - By Tata Steel Consulting UK “TSC” indicating over a S-Korea Mill!  Indicating mill profit $170m p/a per mill or $1.7bn total project 3. The PIB Big Picture Indicative National Economic Benefits.  Total PIB 10 mill Steel Group Production Value $22bn p/a  $11bn value added economic benefit per $1 of steel production $3-$1.  Indicative PIB Steel $22bn + econ benefit $66bn p/a = $88bn p/a in total direct related econ activity. 4. PIB First-Mover Incentive Global Steel Mill PIB Commitment Programme  now underway S-Korea 14/11/2013 Japan EEC India & China next 1-3 months. 5. Boomerang Class Slab and Container Ship has progress to 20-year world patent stage August 2013  International Registration 2y Commercialisation Process Underway 6. Joint Parliamentary Committee on North Australia
  7. 7. eastwestlineparkslimited 1 - PIB Spreadsheet Summary Costed Updated 2013 • “Key Point Findings” on the projects base business case only! • + Development Mines across the Australian Continent. Capex on Continental Rail & Rolling-Stock 2013 = $18bn Capex on Steel Park Complex Industrial Lands 2 Land Sites WA & Qld = $5bn Total PIB $25bn Rail & Steel Complex Industrial Land • PIB Consortium Revenues on Continental Rail Freight at $26t on 53mtpy Ores + Steel Park Admin Fee Revenues at $12t on 44m tpy Steel  ROE after Tax indicating 12% $660m p/a or $60m ea. x10 PIB consortium steel mill + PIB.  Capex Expenditure by 10 standardised 1st Stage Steel Mills $35Bn +  Direct Third Party Plants $10bn + Cement / Refractory Bricks etc. • Power- Oxygen-Stock-Yards - Coke Ovens- Water/Air Treatments  Total $60Bn direct PIB expenditure delivered over 7-8 years 2024-5
  8. 8. eastwestlineparkslimited 5. Boomerang Class Slab and Container Ship has progress to 20-year world patent stage August 2013 Project Update Agenda December 2013 Federal Coalition Government Visit Key Self-LoadingShip Independent Features: Inside Main Floor Area Dimensions Length 170m x Width 30m x 12 m High Ideal for huge roll-on/offmining equipment and/or modular unit delivery. Ship has in-built Gantry 75t Cranes for fully automated computer controlled loading and unloading. RORO dual tracked floor moves sideways for under – floor cargo loading/storage. Tracked Floor is mechanised for self-loading/unloadingof slab wagons. Automated Self-Righting Water Ballast balanced loading/unloading adjustment system - wharf and ship height adjustments. 10-12 meters. Inner & Outer Strong Hulls for water ballast and to minimiseGreat Barrier Reef Risk Impact management. Schedule & Turnaround Time Saving 2-days each in loading & unlading instead of 6 days ea. – 8 days saved in turnaroundtime– greatly consolidates major CAPEX Equipment Expenditures on Ships Wharfs & Cranes. Estimated 40% of Oz container/bulk ships redundant. Consolidatesprimary iron/steel Bulk Ore Cape Ships by 2 ½ times to slab Panamax Ships via Sues/PanamaCanal’s. From Australia / E-Coast Asia: 70,000t PIB slabs for a total 44m tpy + empty Containers2,000 a trip. To Australia / E-Coast Asia: 2,000 Full Containersinside and top-deckfor a total capacity. o This PIB Smart Ship will save Billions annuallyagainst the current operating sea freight rates. Ship Owners Per Trip Ship Income Estimates + /– 15% based on E-Coast Asia Oz trade. o North From Oz Slabs @ $15t + Empty Containers = $1.05m o South To Oz Full Containers @ 25% rate discount at $750ea 2,000 = $1.5m o Total Return BoomerangShip Trip Gross Income = $2.55m o Ship Return Trip Turnaround & Loading hire rate 45 days at $24k a day = $1.08m o EconomicFreight Cost ProductivityImprovements: Slabs > 50% - Containers by 25%. o Indicative ROE (+/- 15%) = >50% for ship owner/operator.
  9. 9. eastwestlineparkslimited Australia leads the world in heavy haul rail technology. Why aren’t we applying and planning such rail and rolling stock productivity cost & social impact efficiencies in Queensland? WA Pilbara 230 -42t axle IO wagon s G-wt: 168t N-wt: 146t >30% more efficient than 32t. A picture is worth a thousand words! You could live well inside this wagon - two big bedrooms and a kitchen in each two sections of six! Fuel wagon at 42t axle will result in major fuel freight savings per liter at designated rail depots 500-1,00km inland.  A 40t axle coal wagon would be fatter and wider not longer, holding around 20% more volume in coal volumes.
  10. 10. eastwestlineparkslimited 100% 85% 40 T axle Tippler or Bottom Dump
  11. 11. PIB Generation Overview Coke Oven SM 1 SM 2 SM 3 SM 4 SM 5 1,400 MW New Embedded Loads New Embedded Loads Power Station Developer Supply to embedded loads New Embedded Loads Each SM has an equal stake in the Coke Oven 700 MW Supply to SM’s Loads or retailer Options for sale of generation - “Retailer” sell direct to customers. - “Wholesaler” sell to the Pool*. MWh $ Approx. 700 MW for export Gases from the Coke Oven fuel generator. Ownership of gas and output of generator lies with SM’s Ownership of the output of the generator and all revenues from the sale of electricity remain with SM’s
  12. 12. eastwestlineparkslimited Project Update HH Rai Newcastle 2014 A World First - Steel Industry History Tender Request for 10 1st Stage Mills. Preliminary Quotation Supply Tender Document by TSC for 10 Modularised and Standardised 1st Stage Steel Mills (doing it this way saves around $1bn ea + operational maintenance costs > 25%) Already distributed to the four biggest suppliers in the EEC 2012 . Now to China, Japan& S- Korea.
  13. 13. eastwestlineparkslimited 2 - Currency Sensitivity Effect 7-P Report August 2013. by Tata Steel Consulting UK “TSC” Au/US$ Currency effects 0.85 to 0.95conclude a $42t advantage range for a PIB located global 1st stage steel plant delivering comparative advantage on slab C&F to S-Korea of $40t.  or $176m for each Mill producing 4.4m tpy or project T $1.7bn p/a (Note: the Korea comparison is the toughest comparison we could make and currently considered the worlds best profit and practice steel producing country)  High Grade Steels the PIB advantage is expected to be much greater at a range of $65-$75t indicating a comparative advantage  of $300m per mill or $3bn p/a for the project as a whole. Ref TSC (Ref P-5 Graph)
  14. 14. eastwestlineparkslimited PIB S-Korea Dr Kim personal Hyundai Steel Plant Site Visit 14-11-2013 3x4m tpy BF = 12m tpy most modern WBP & Efficient in the world.
  15. 15. eastwestlineparkslimited  PIB Next Steps & Action 1. Announced Federal Government national support for the PIB concept and strategy White Paper Inclusion. Expected 01 September 2014 by N-Australia Joint Parliamentary Committee. 2. As previously with Dr Peter Shergold in the Howard Government’s project due-diligence and scrutiny analysis in 2007-8, we welcome and are more than pleased for your immediate political and bureaucratic departmental staff advisors complete due-diligence verification and analysis. 3. First Mover Commitment by PIB Global Steel Mills before Christmas World Steel Economics favours the PIB Model. 4. Time-line Bankable Approval Study early 2015-2017 June. 5. Construction Rail & 2 steel mills at each end 2021-22. • First Trains Run & steel made! We do thank you for your continuing necessary interest and support and look forward to our future engagements towards mutually desired goal delivery results and project commissioning.
  16. 16. 18 eastwestlineparkslimited Thank youThank you

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