Update from a PNW Short Line Pacific Northwest Waterway Association - - PowerPoint PPT Presentation

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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.

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The review today:

• Genesee & Wyoming
• Freightliner Acquisition
• Short Line 2015 DC Focus
• How we can work together

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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.

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Our Core Purpose

To be the

safest and

most respected rail service provider in the world.

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Industry-Leading Safety Performance

2014 Injury-Frequency Rate per 200,000 man-hours G&W through December; others through November

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U.S. Rail Industry Safety Performance

1.95 1.67 1.33 0.74 0.51 0.53 0.48 0.7 0.53 0.0 1.0 2.0 3.0 4.0 5.0

2006 2007 2008 2009 2010 2011 2012 2013 2014

Injury Frequency Rate per 200,000 Employee Hours

FRA Group 3 FRA Group 2 Class I G&W Railroads

2014 G&W data is through December; others through November

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G&W Operating Strategy: Safety & Customer Service

• 101 of116 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
• verall rail industry in all four biennial surveys since 2007
• G&W’s highest-rated attributes by customers are safety

and professionalism

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• 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

• perator 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.

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2015 Federal Agenda for the Short Line Rail Industry

• Short Line Tax Credit

“45G”

• Reauthorization of rail

related bills

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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

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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)

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2015: Year of Reauthorizations?

• MAP 21
• Rail Safety Improvement Act
• f 2008
• Surface Transportation

Board

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Some shared Pacific Northwest challenges

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Some refuse to understand ... ... we are a derived demand ... ... with common carrier requirements

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A case study: The Toxicity of Tying a Shared Network Infrastructure to Commodity Attractiveness

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