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What’s Down the Track WMC Conference Centre, Kalgoorlie Ken Noye – Commercial Director Ivan McLeod – VP Iron Ore 24 October 2013.

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Presentation on theme: "What’s Down the Track WMC Conference Centre, Kalgoorlie Ken Noye – Commercial Director Ivan McLeod – VP Iron Ore 24 October 2013."— Presentation transcript:

1 What’s Down the Track WMC Conference Centre, Kalgoorlie Ken Noye – Commercial Director Ivan McLeod – VP Iron Ore 24 October 2013

2 2 Australia’s largest rail freight hauler Top 50 ASX-listed company Market capitalisation of >$7.5 billion More than 100 sites across Australia Employing more than 7000 people in hundreds of communities across Australia We move products worth more than $50 billion in export earnings every year Aurizon Overview

3 3 An iconic Australian business with over 145 years of history 1889 Several railways extended to ports, mines and settlements 1865 First railway line in Queensland, from Ipswich to Bigges Camp (now known as Granchester) opened 1924 Construction of North Coast Line from Brisbane to Cairns completed 1968 Moura Short Line railway between Moura and Gladstone opened first major heavy haul rail line built in Queensland for coal 1971 Major coal railway from Goonyella to Hay Point opened 1985 Annual coal haulage exceeds 50 million tonnes 1987 Electric coal haulage in central Queensland commenced 1999 Annual coal haulage exceeds 100 million tonnes 2005 Annual coal haulage exceeds 150 million tonnes 1990 National expansion strategy commenced The Enterprise has a rich history – the last 10 years, and specifically the Initial Public Offering (IPO), being defining events and key cultural junctures 2006 ARG, a Western Australian bulk freight haulier, acquired 2011 QR National restructured to a functional model 2012 Announced new name Aurizon 2011 Annual coal haulage exceeds 200 million tonnes 2002 Interail, a New South Wales rail freight business, acquired 2005 Coal haulage begins in the Hunter Valley region in NSW. CRT, a specialist Victorian logistics business, acquired 2004 Freight operations between Melbourne, Sydney and Brisbane commenced 2007 Melbourne-Perth Intermodal services commenced, creating a national freight network from Cairns to Perth 2010 July - Queensland Rail and QR National separated November – QR National listed on the Australian Stock Exchange (ASX)

4 4 Aurizon operations in Western Australia Customer Task Cliffs Natural Resources Delivery of bulk lump and fines iron ore: 11 million tonnes per annum BHP Billiton Worsley Alumina Delivery of bulk alumina, coal, caustic and lime for aluminium production: 3,200 train services per annum Alcoa World Alumina Australia Delivery of bulk bauxite, alumina and caustic for aluminium production: 8,500 train services per annum Karara Mining Limited Delivery of DSO and Magnetite Concentrate iron ore: 1,456 train services per annum BHP Billiton Nickel West Road and rail services for the delivery of nickel matte/metal, concentrate, sulphuric acid and mining inputs for the manufacturing of stainless steel products: 1,500 train services per annum Over 1,000 employees based in WA across Freight, Intermodal and Corporate Nine regional operations depots Maintenance facilities in Forrestfield, Avon, Geraldton, Esperance and Kalgoorlie WA Freight Business Intermodal services based at Forrestfield terminal including Intermodal Logistics, our road transport business Bulk freight services haul mining and industrial inputs and generalised freight Iron Ore services for four major customers as we target haulage of 30mtpa by FY2014

5 Aurizon in the Yilgarn EsperanceKalgoorlie ServicesCliffs Natural Resources 11 million tonne per annum 20 services per week Shell Pty Ltd Freighter services Freighter Services Providing inputs for local industry and community Exporting minerals and general containerised freight AssetsRecently extended yard Upgraded maintenance facilities to handle the Cliffs task Investment in rollingstock Container terminals at Leonora and West Kalgoorlie Maintenance facilities People125 locally-based, recruited and trained workforce 110 locally-based workforce TrainingAdvance Training Locomotive Drivers Operational Maintainers Rollingstock Maintainers Plus Apprentice Fitter Local contributions Wages, salaries and local contracts Community Giving Fund

6 6 Aurizon Initiatives Community Giving Fund program Two rounds each year (March, September) Current funding round is open until 25 October National partnership with Heart Foundation Community Giving Fund – Recent local recipients St John Ambulance Kalgoorlie – Emergency Response Trailer Program Foundation for Rural and Regional Renewal – 2013 Back to School Program (Esperance and Kalgoorlie) Esperance Volunteer Sea Search and Rescue – Intercom for rescue vessel Esperance Men’s Sheds Association – New spray booth Other sponsorships in the Yilgarn Esperance Football Club, 2012-14 Major Sponsors Esperance Mini Railway, 2012-13 Major Sponsors Esperance Football Club Investment in the Yilgarn - Community

7 Safety is our core value Safety for our people ZEROHarm Yilgarn Safety Milestones 1446 days SPAD Free in Esperance 1, 328 days without a Lost Time Injury in Esperance Over 800 days Medically Treated Injury free in Kalgoorlie Safety of the community Community Rail Safety Awareness Program 2013 Nearly 1,500 students in 6 regional locations Over 600 students in Esperance and Kalgoorlie State wide advertising and social media campaign Rail Safety Week at Kalgoorlie Primary School Jonathan speaking with students in Esperance at Nulsen Primary

8 Thank You 8

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10 10 Tracking to our target of ~30mtpa by 2014 Diversification through iron ore growth

11 Investment in Esperance – Depot Upgrades 11 Upgrade of Esperance Depot Locomotive service facility Wagon service facility Locomotive turntable, and New warehousing and storage facilities New rollingstock (locomotives and wagons) Delivering regional benefits Significant investment in new facilities and rollingstock Used local contractors for both construction and ongoing operations Increased local maintenance capabilities increasing training and employment opportunities

12 Our Services 20 services per week haulage services for Cliffs Natural Resources, 1 service = approx 11,000 tonnes of iron ore product. 1 week = 220,000 tonnes of iron delivered to the Esperance Port. 3 per week freight services for Shell Pty. Ltd Our People Of the 115 locally-based and recruited workforce, all have progressed through traineeships to fully qualified rail operators, rollingstock maintenance crew, operations supervisors and locomotive drivers. Esperance Workforce -93 Operations employees -22 Maintenance employees Currently 39 trainees in Esperance - Includes; - Advanced Training Locomotive Drivers - Operational Maintainers - Rollingstock Maintainers Investment in Esperance – Customers & People

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