NRC Annual Conference Hotel del Coronado, San Diego, CA Genesee - PowerPoint PPT Presentation

NRC Annual Conference Hotel del Coronado, San Diego, CA Genesee & Wyoming Railroad Services Inc. January 7, 2020 Prepared by: Kristine Storm Genesee & Wyoming Inc. 1

Agenda 1. Overview 2. Operations & Infrastructure 3. Sale to Infrastructure Investors 4. Culture & Safety 5. Purchasing Vision & Overview 6. Engineering Capital 7. Specialty Contract Services 8. Mechanical & Facility Capital 9. Supplier Relationship Genesee & Wyoming Inc. 3

Overview • Railroads: 118 railroads with ~16,000 track miles (90% North America; 10% Europe) • People: 8,000 • Customers: 3,000 • Equipment: 1,350 locomotives • Carloads: ~3.3 million annually Genesee & Wyoming Inc. 4

Current Footprint North America UK/Europe Australia  #3 Rail Operator with  Largest Short Line Operator  Largest UK Intermodal Long-Term Track Concession Rail Operator with Key Real Serving 41 U.S. States, & Contracts 4 Canadian Provinces, and Estate at Ports and Inland Ports on All 3 Coasts Terminals; Offers Trains, Trucks & Storage Genesee & Wyoming Inc. 5

Acquisition Update  Now Privatized  $8.4 billion transaction with Brookfield Infrastructure Partners (NYSE:BIP) and GIC  Closed on 12.30.19  Acquirers’ long-term investment horizons perfectly aligned with the long lives of G&W’s railroad assets  Changes are expected……. | 12 Genesee & Wyoming Inc. 6

Our Core Purpose & Values Core Purpose: To be the safest and most respected transportation service provider in the world. Core Values: Safety Integrity Transparency Innovation We have an We possess the courage We communicate openly We embrace creativity, unconditional to do the right thing to enable well-informed technology and new commitment to the well- always decision making ideas being of our people and the safety of our operations Service Respect Accountability Excellence We have an absolute We treat all people with We set high standards We have relentless commitment to our dignity and fairness, and take full ownership focus on continuous customers based on a fostering diversity and of our results as an improvement and philosophy of mutual inclusion individual and a team excellence in all we do success Genesee & Wyoming Inc. 7

Industry-Leading Safety: About People, Not Statistics 5 Injury Frequency Rate per 200,000 Hours 4 Short Lines 3 2 Class I 1 0 * G&W results include April 2015 acquisition of Freightliner Group Genesee & Wyoming Inc. 8

Progress Towards “Most Respected” Industry-Leading Customer Satisfaction 10 9 8.0 = Our Goal 8 Trucking 7 Other Railroads 6 5 2007 2009 2011 2013 2015 2017 Genesee & Wyoming Inc. 9

Progress Towards “Most Respected” G&WCommunity In 2017-19 2,000+ presentations to more than 285,000+ schoolchildren & professionals Genesee & Wyoming Inc. 10

Purchasing Vision: Now & Future State to Support the Regions Leverage of Spend • Annual Bids for Capital Requirements • Forward Buying Ahead of Markets • Increased Quality at a Reduced Cost • Maximizing our Total Cost of Ownership Single Procurement Unit ALL CAPITAL RUNS THRU THE G&W CENTRALIZED PURCHASING PROCESS • 2016-2020 Engineering & Mechanical Requirements – 99% Genesee & Wyoming Inc. 11

North America 2020 Capital Procurement Overview • G&W’s capital plan will be submitted to Brookfield approval in February is expected. • Purchasing obtained Brookfield approval to obtain key material items in September 2019 in support of the 2020 capital programs • 2020 capital program has a marginal uptick compared to last year • Capital Track/Bridge Programs RFP’s will be solicited Dec-19 thru Feb-20; South to North • Capital Mechanical Overhauls RFP will be solicited February • Capital Upfitted vehicles will be solicited Jan-20 thru Mar-20 Genesee & Wyoming Inc. 12

Respected by Our Customers & Shareholders: Capital Investment in Infrastructure (Capex In Millions) $372 $348 $344 $331 $288 $280 $249 $232 $179 $120 $89 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019B > $1.5 billion invested in past 5 years Genesee & Wyoming Inc. 13

2020 Capital Spend Allocation: Engineering & Mechanical Genesee & Wyoming Inc. 14

What and how much does G&W Outsource: Engineering design and construction 100% Switch & cross tie installation 30% Surfacing 30% Turnout installation and upgrades 100% CWR and jointed rail installation 100% Crossing Rehabilitations 90% Major bridge component upgrades 65% Signal installation, maintenance, and upgrades 90% Civil, earth & subgrade work 100% Locomotive Overhauls 15% Freight Car Repairs - RIP & LOR 50% Genesee & Wyoming Inc. 15

Impact of Weather on Railroad Infrastructure Genesee & Wyoming Inc. 16

Winter  Increased snowfall leads to more snow clearing/de-icing  More winter freeze/thaw leads to more damage to structures Spring  Faster transition between winter and summer leads to larger floods  Higher risk of washouts Summer  Higher temperature increases risk of rail Genesee & Wyoming Inc. | 21 buckling / sun kinks  Higher risk of major storms, tornados Genesee & Wyoming Inc. 17

2019 Extraordinary Event:  Heavy rains on saturated soil caused  Number & size of culverts expanded 30 washouts (10 major) totaling  Heavier ballast 57 days of main-line closures from May-August  Replacing timber bents with steel Genesee & Wyoming Inc. 18

2019 G&W West Coast Bridge Challenges • G&W’s SJVR Bridge over a field • Complete loss • Removal of structure, replaced with 6 culverts • Back in service 3 days later; thanks to Industrial Railways Company, Contech, Cal-Sierra Pipe. Genesee & Wyoming Inc. 19

ENGINEERING CAPITAL 2020

G&W Engineering Infrastructure North America ~ 14,800 total track miles operated and maintained  12,800 mainline (87%) ~ 45M wood ties ~ 8,500 switches and several hundred crossing diamonds ~ 9,200 grade crossings  3,520 signalized protected  5,600 non-signalized ~ 7,000 bridges  4,700 timber bridges (70%) Genesee & Wyoming Inc. 21

2020 Typical North American Capital & Grant Scope Total (Units) Ties 1,000,000 Rail (Lineal Miles) 200 Surfacing (Track Miles) 2,000 Switches 75 Bridges $29 million Grade Crossing Rehabs 125 Signals (Crossing 100+ Warning Devices) New Track (Track Feet) 8,450 TF (1 siding, 1 yard expansion) Genesee & Wyoming Inc. 22

2020 Typical North American Capital & Grant Projects depicted by individual Region Rail – 7 Ties-65,000 Surfacing– 150 Bridge – $3.1M Rail – 30 Ties - 90,000 Surfacing – 225 Bridge – $3.5M Rail - 83 Ties-175,000 Rail – 35 Surfacing– 475 Ties-270,000 Bridge – $3.4M Surfacing– 475 Bridge – $9.5M Rail - 4 Ties-175,000 Surfacing– 250 Bridge – $2.5M Rail - 41 Ties-225,000 Legend: Surfacing– 425 Rail – Linear Miles Bridge – $7.0M Ties – Each Surfacing – Track Miles Bridge - $’s Genesee & Wyoming Inc. 23

Bridges Capital Scope of Work • Predominately Timber Repairs (80%) • New Tie Decks • Cap & Stringer Replacements • Pile Posting / Bent Framing • Concrete work predominately masonry • Some select steel repair for section loss (<10%) • $29M Budget in core, above core initiative (strengthening program) & grants resulting in working 200+ addt bridges. Genesee & Wyoming Inc. 24

ENGINEERING GRANT OVERVIEW 2020

2020 Engineering Grants Summary $85M+ Total Funding Northeast Midwest Southern Coastal Genesee & Wyoming Inc. 26

2020 Southern Region Tennessee DOT KWT - $2.5M • 14,000 Ties • 25 TM Surfacing • $800k Bridge Rehab Genesee & Wyoming Inc. 27

2020 Southern Region Georgia DOT CRISI Grant CCKY - $2.7M • 14,000 Ties • 17.5 TM Surfacing Genesee & Wyoming Inc. 28

2020 Southern Region Georgia DOT *CCKY - $5M • 41,000 LF Rail • 5 Turnouts • $1.5M Bridge Upgrades Genesee & Wyoming Inc. 29

2020 Southern Region Georgia DOT: Lynn to Cuthbert, GA *GSWR - $6M • 41,000 LF Rail • 14,000 Ties • 8 Turnouts • 17.5 TM Surfacing Genesee & Wyoming Inc. 30

2020 Southern Region Georgia DOT CRISI Grant GSWR - $5.2M • 60,000 LF Rail • 8,000 Ties • 10 TM Surfacing Genesee & Wyoming Inc. 31

2020 Coastal Georgia DOT CRISI Grant GCLP - $8M • 42,000 LF Rail • 35,000 Ties • 100 TM Surfacing • 3 Crossing Rehabs • $700K Bridge Upgrades Genesee & Wyoming Inc. 32

2020 Northeast Region Build America MassDOT Grant GSWR - $5.2M NECR - $30M • 60,000 LF Rail • 45 LM of Rail • 30,000 Ties • 8,000 Ties • 55 TM Surfacing • 10 Miles Surfacing • 30 Turnouts • 16 Bridge Rehabs Genesee & Wyoming Inc. 33

2020 Northeast Region CRISI Amtrak Grant NECR - $4.6M • 18,000 Ties • 23 TM Surfacing • Rockslide Remediation Genesee & Wyoming Inc. 34

2020 Northeast Region CRISI Brookville Grant BPRR - $3M • 15,500 Ties • 23 TM Surfacing • 7 Crossing Rehabs • 14 Structure Rehabs • (Bridges, Culverts, Embankments) Genesee & Wyoming Inc. 35