Update from a PNW Short Line Pacific Northwest Waterway Association DC Meeting March 3, 2015 Jerry Vest, Senior Vice President, Government & Industry Affairs Genesee & Wyoming Railroad Services Inc. Genesee & Wyoming 1
The review today: • Genesee & Wyoming • Freightliner Acquisition • Short Line 2015 DC Focus • How we can work together Genesee & Wyoming 2
What is Genesee & Wyoming? G&W owns and operates short line and regional freight railroads in the United States, Australia, Canada, the Netherlands and Belgium. Operations include 116 railroads organized in 11 regions, with more than 15,000 miles of owned and leased track, 5,200 employees and over 2,000 customers . We provide rail service at 37 ports in North America . Genesee & Wyoming 3
Our Core Purpose To be the safest and most respected rail service provider in the world. 4 Genesee & Wyoming 4
Industry-Leading Safety Performance 2014 Injury-Frequency Rate per 200,000 man-hours G&W through December; others through November Genesee & Wyoming 5
U.S. Rail Industry Safety Performance Injury Frequency Rate per 200,000 Employee Hours 5.0 FRA Group 3 FRA Group 2 4.0 Class I G&W Railroads 3.0 2.0 1.0 1.95 1.67 1.33 0.74 0.51 0.53 0.48 0.7 0.53 0.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2014 G&W data is through December; others through November Genesee & Wyoming 6
G&W Operating Strategy: Safety & Customer Service • 101 of 116 G&W railroads were injury-free in 2014 • Injury frequency rate nearly 6x better than U.S. short line average; better than any large (Class I) U.S. railroad • Nearly 200 industry safety awards in last three years • Customer satisfaction outscores trucking and overall rail industry in all four biennial surveys since 2007 • G&W’s highest-rated attributes by customers are safety and professionalism Genesee & Wyoming 7
Feb. 24: G&W Announces Freightliner Acquisition • Second largest freight rail operator in U.K., providing intermodal and heavy haul service throughout England, Scotland and Wales. Its Freightliner Ltd. subsidiary is the largest rail maritime intermodal operator in the U.K., providing intermodal container services from the four major deep sea ports to a network of inland terminals. • In Continental Europe: Freightliner Poland primarily serves aggregates and coal customers in Poland and Germany. Freightliner’s ERS subsidiary, based in Rotterdam, provides cross-border intermodal services connecting the northern European ports of Rotterdam, Bremerhaven and Hamburg to key cities in Germany, Poland, Italy and beyond. • In Australia, Freightliner currently transports coal and containerized agricultural products for its customers in New South Wales and is also an accredited rail service provider in Western Australia, South Australia and Queensland. Genesee & Wyoming 8
2015 Federal Agenda for the Short Line Rail Industry • Short Line Tax Credit “45G” • Reauthorization of rail related bills Genesee & Wyoming 9
Short Line Tax Credit “It was a glorious twelve days” One year extension of numerous tax credits signed into law by President Obama on December 19, 2014 Expired on December 31, 2014 Genesee & Wyoming 10
The Importance of the Short Line Tax Credit The real importance is to the customers and communities that only have a short line railroad to connect to the national rail freight network. • Overcoming inherited deferred maintenance • Seamlessness to Class I Carriers “286k” • A part of supporting capacity improvement (weight, speed, track) Genesee & Wyoming 11
2015: Year of Reauthorizations ? • MAP 21 • Rail Safety Improvement Act of 2008 • Surface Transportation Board Genesee & Wyoming 12
Some shared Pacific Northwest challenges Genesee & Wyoming 13
Some refuse to understand ... ... we are a derived demand ... ... with common carrier requirements Genesee & Wyoming 14
A case study: The Toxicity of Tying a Shared Network Infrastructure to Commodity Attractiveness Genesee & Wyoming 15
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