Genesee & Wyoming Inc. ACACSO Meeting Rick Christopher, AVP Car Management May 12th, 2011 Genesee & Wyoming Australia 1 Genesee & Wyoming Inc. 112 Years of History Edward L. Fuller, great grandfather of Company’s chairman, Mortimer B. Fuller III, purchased the Genesee & Wyoming original Railroad in 1899. • 1899 ~ original 14-mile railroad purchased out of bankruptcy by Edward L. Fuller and his financial partners to transport salt from their mine in Western New York State. • 1977 ~ Mortimer B. Fuller purchases a controlling interest in GWRR – still a 14-mile railroad serving principally 1 customer. Holding company is formed and company enters the rail car leasing and management business. • 1980 ~ Staggers Act deregulates railroads, allowing them to dispose of routes they can no longer operate profitably. • 1985-1996 ~ Acquisitions include D&M, RSR, LDRR, BPRR, WPRR, PWR, IMRR, Rail Link. Company goes public in June of 1996. • 1997-2000 ~ Acquisitions include HCRY, QGRY, Australia Southern, Australian Railroad Group (ARG) formed. • 2001-2005 ~ Acquisitions include SB, SLA/SLR, YRC, Utah, CIRR, ALM, FP, TZPR, GITM, FCRD, AN, ATW, BAYL, ETRY, GC, KWT, LRWN, MBRR, RSOR, TR, VR • 2006-present ~ ARG sold, CHAT, MMID, RRF, CAGY, CCKY, LXVR, OHCR, COUH, MVRY, WTRY, OSRR, YB, YARR, POHC, AOR, GSWR, WLRS, FreightLink Genesee & Wyoming Inc. Overview • • • • • • Listed on New York Stock Exchange (“GWR”) • Provide rail service in the U.S., Canada, Australia, and Europe • • 580 locomotives Market Capitalization ~ $2.4 billion 63 Railroads with $775 million of annual revenue Employ ~ 2,500 Operate ~ 10,000 track miles (owned/leased/access) 17 ports and contract coal loading in Powder River Basin Lease/own ~ 13,000 railroad cars Genesee & Wyoming Inc. Decentralized Operating Strategy • • 10 Autonomous Regions • Centralized administrative support Strong local management with responsibility AND authority for the railroad property • Rochester • Jacksonville • Focused regional marketing Continuous safety improvement Lower operating costs Efficient use of capital GWI Worldwide 9 Autonomous Regions 10 Autonomous Regions Genesee & Wyoming Inc. Safety Performance 2010 Injury Frequency Rate Per 200,000 Hours 1 2010 Target = 0.70 4 2 2 4 13 Oregon Region • • • • • • • • • • Portland & Western RR 520 track miles 75,000 carloads/year 150 online customers Top three commodities • Paper & Wood pulp • Lumber • Logs & Woodchips Major Interchange roads BNSF/UP 175 employees 38 locomotives TriMet commuter service HQ in Salem Rocky Mountain Region • • • • • • • • • Utah Railroad and contract coal loading in Powder River Basin Utah RR is a 47-mile shortline RR Interchanges with UP and BNSF Major commodity is coal, with aggregates, brick and cement, chemicals and petroleum products Powder River Basin contract coal loading, in Wyoming and Montana, loads 400 million tons of coal per year. 1/3 of all coal burned in America 220 employees for the region 22 locomotives HQ in Provo Illinois Region • • • • • • • 121 track miles 135 employees 145,000 carloads/year Commodities include coal, chemicals, steel, machinery, food and feed, municipal solid waste 18 locomotives Interchanges with KCS, UP, BNSF, UP, CN HQ in Springfield Southern Region • • • • • • 260 employees 96 locomotives 150,000 carloads/year Major commodities of paper, steel, pipe, chemicals, clay, forest products, peanuts and peanut oil HQ in Jacksonville Interchanges with all Class I’s except CP Rail Link Region • • • • • • 470 employees 118 locomotives Serves 10 Major U.S. Ports Provides Industrial Switching to 25 Customers in 12 States Operates 8 Railroads HQ in Jacksonville - Port Operations - Industrial Switching Ohio Region • • • • • • 45 locomotives 150 employees 145,000 carloads/year Major commodities of coal, coke & ores, pulp & paper, metals, chemicals, municipal waste, minerals & stone Major interchange volumes are with NS and CSXT HQ in Coshocton NY/PA Region • • • • • • • 426 track miles 76 locomotives 260 employees Major commodities of coal, steel, scrap, paper, sand, pipe, chemicals, petroleum products, aggregates, salt Interchanges with CSXT, NS and various other shortlines Utilize GWI designed GenSet locomotives in Butler, PA HQ in Rochester, NY Canada Region • • • • • • • 56 locomotives 250 employees Also includes switching services in Labrador (500 miles north of Quebec City), HCRY and other contract switching sites Major commodities are paper, grain, autos, lumber, aluminum, and chemicals Headquartered in Montreal 90,000 carloads year HQ in Montreal Netherlands Region • • • • • • 35 employees 22 locomotives Short haul and switching services Support services (locos & crews) for track construction and maintenance Switching for Port and customers HQ in Rotterdam Australia Region • • • • • • • • • 300 employees Accredited rail service provider in 6 states (all but Tasmania) Supplies contract services for locos, wagons and crews on interstate basis Bulk commodities of grain, steel, gypsum, minerals 90 locomotives 3,100 track miles Intermodal corridor Adelaide-Darwin (1,400 miles) Largest and fastest growing region HQ in Adelaide Support Structure for Regional Operations Greenwich, CT o Corporate HQ o Acquisitions, CEO, CFO, Legal Rochester, NY o Car Hire and Car Accounting Function o Organized within operations as opposed to accounting o Elan Neal – Director of Car Hire o Fleet Management Function o Organized within operations o Patty Oakley – Manager Fleet Administration o Jerry Deming – Fleet Manager o HR Support Function o Accounting Functions (payables/receivables/tax,etc.) Jacksonville, FL o Corporate Operational HQ – COO and Functional Staff Heads o 5-Regional Customer Service Group GWI Looking Forward Continue to place strong focus on Safety Grow the business o New customer opportunities in Europe and Australia o Expand with new and existing customers in North America Grow our employees o Great people o Great attitudes Good business to be in Great company to work for Genesee & Wyoming Inc. ACACSO Meeting END May 12th, 2011