1 Genesee & Wyoming Inc. Genesee & Wyoming Australia February, 2016 Challenges and Opportunities in the SA rail sector
1 Genesee & Wyoming Inc.
Genesee & Wyoming Australia
February, 2016
Challenges and Opportunities in the SA rail sector
2 Genesee & Wyoming Australia
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.
3 Genesee & Wyoming Australia
GWA 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
4 Genesee & Wyoming Australia
Our Core Purpose
To be the
safest and
most respected
rail service
provider
in the world.
5 Genesee & Wyoming Australia
GWA Safety Performance
0.480.81
0.55 0.530.27
0.47 0.56
0.0
1.0
2.0
3.0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
1.42
6 Genesee & Wyoming Australia
• Railroads: 120 worldwide with ~24,000km
of track and over 2,500 customers
• People: 7,700 worldwide
• Equipment: >1,300 locomotives and 22,000 wagons
• Annual Carloads: ~ 2 million
• Public Company: New York Stock Exchange-listed (GWR)
with ~A$3.5 billion market capitalisation
• Operations: 41 U.S. states, four Canadian provinces, four
Australian states & one territory, Germany, Poland, the
Netherlands, Belgium and the UK
• Contract Switching & Port Operations: Serve 40+ ports and
~50 industrial facilities and mines
Genesee & Wyoming Inc.
7 Genesee & Wyoming Inc.
Genesee & Wyoming Inc. 2015
Australia North America
U.K./Europe
Private & Confidential
Challenges in SA Rail Sector
9 Genesee & Wyoming Australia
Challenges…
• Global Commodity Prices
– Continued decline in iron ore price. Industry continuing to face strong headwinds
• Regional Rail Lines
– Rail is a long lived asset that is best suited to providing the base haulage task for large
commodity movements
– Long term view required by all parties
– Requires collaboration between Network Operator, Government and Customer
– An example of this is the Eyre Peninsula Railway Network
• Proposed changes to Coastal Shipping
• Safety, Social and Environmental benefits of Rail not generally considered
10 Genesee & Wyoming Australia
Challenges…
• Increased competitiveness of Road
– Rates
– Availability and reduced demand
– Utilises shared public infrastructure
– Few barriers to market entry
Opportunities in SA Rail Sector
12 Genesee & Wyoming Australia
Opportunities…
• Improved technology on Rail:
– Automated Train Management System (ATMS)
– In-Cab Communications Equipment (ICE) – a modular communications device
specifically designed for rail
– Increased network axle loads
• Improved Rollingstock
– Productivity
• Light weight tare wagons
• AC Tractive locomotives providing improved trailing load capacity
– Availability
• Off the shelf standardised rollingstock
• Short lead times (Chinese Build)
• The reappearance of Junior Miners
- Many ‘green shoot’ opportunities (in high value specialised commodities)
13 Genesee & Wyoming Australia
Opportunities…
GWA has proactively restructured in preparation for improved market conditions
by:
• Significant investment in locomotives & inline fuelling capability
• Insourcing of track maintenance
• Insourcing of mechanical maintenance
• Acquisition by G&W of Freightliner Group Limited
• Brought in-house Terminal Operations - Alice Springs and Darwin
Intermodal
15 Genesee & Wyoming Australia
Intermodal • Improved Freight Availability:
- Leading to organic growth and improved market
share (previous time sensitive freight transitioning
from road to rail)
16 Genesee & Wyoming Australia
Intermodal
Improved Productivity - Weather Proofing the
Railway:
• Water Level Monitoring
– Installing monitoring devices on the six major NT bridges
– Installing solar-powered devices to activate signals and send
email/SMS alerts to Transport Control and Managers when
water levels rise
– Installing fixed water level markers on bridges to inform crews
and track inspectors of water levels
• Weather Monitoring - Began receiving alerts from Early Warning Network in June 2012
• Updated Training Program - Enhancing extreme weather awareness training for drivers and
train dispatchers
17 Genesee & Wyoming Australia