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Delivering Efficiency

Through Strategic Rail

Freight Networks

Brett LynchGeneral Manager QueenslandPacific National

25/08/2016August 2016

1

Where we’ve come from

2

2009Pacific National officially launches

QLD Coal Operations

1996TNT rail is established

2002Pacific National is formed.

The joint venture between Toll

and Patrick grows from Toll’s

acquisition of the National Rail

Corporation and FreightCorp.

2007Pacific National becomes apart of the

Asciano portfolio.

2008Asciano signs coal haulage contracts

with Rio Tinto Coal Australia and

Xstrata Coal

2014Merges Pacific National Rail and

Pacific National Coal into one

business.

2016Pacific National to be acquired by a

consortium of investors led by Global

Infrastructure Partners (GIP), Canada

Pension Plan Investment Board (CPPIB),

CIC Capital (CIC Capital) and British

Columbia Investment Management

Corporation (BCIMC)

Pacific National at a glance

3

A summary of Pacific National’s performance from the last financial year.

TEUs HANDLED

800,000(INTERMODAL)

3,573

NUMBER OF EMPLOYEES

33%IMPROVEMENT IN

RECORDABLE INJURY

FREQUENCY RATE

57

NTKs

BILLION

2.4BILLION

REVENUE

187MILLION

(COAL /BULK)

TON

Who is Pacific National

49 operational

depots

26 maintenance

sites

730 locomotives

14,200 wagons

4

Our Safety Journey

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Scale of IPS Transformation

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Legacy

State

Future

State

2000Unsupported data

sources

1Source of Truth

400Processes

260Processes

5 Locations

1 Location

60Roles

30Roles

206Employees

176Employees

Scale of IPS Impact

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Old PN One PN New PN

2 rail businesses

2 fleets

7 planning centres

30 maintenance sites

830 locomotives

16,400 wagons

1 Rail business

1 Fleet

5 planning centres

26 maintenance sites

730 locomotives

14,200 wagons

1 Integrated business

Rationalised fleet

1 planning centre

? Maintenance sites

? Locomotives

? Locomotives

Maintenance Approach

8

Nebo Train Support Facility

1 x Entry Road 2500m

1 x 2575m Provisioning road (fuel, oil, sand,

water)

2 x 2575m Maintenance and Inspection Roads

1 x 600m Storage Road

2 x Wagon Maintenance Workshop Roads @

1500m

2 x Locomotive Maintenance Workshop Roads

@ 1200m

1 x Exit Road 840m

Locomotive Wheel Lathe, loco & wagon wash

shed and turntable Sticky Coal Ramp

Administration / Amenities

Water Treatment Plant

Location within cycle

Pacific National’s new Train Support

Facilities in Qld and NSW

Enables full length provisioning and

maintenance of PN’s trains, ensuring

their reliability and efficient

operation.

Innovative maintenance techniques

with smart train technology providing

“lead time” information to

maintenance crews before a train

even arrives in the yard.

The data created by smart train

technology also assists PN and its

suppliers in improving design and

equipment performance.

Block change-out maintenance of

fleet enhances supply chain

efficiency and asset utilisation

Improvement Initiatives

Asset Condition

Monitoring

Train Consist

Management systems

Technology to Remove

Below the Line Controls

Fuel and Emissions

Reduction

Reduction in Road

Travel

Workforce Training

Technology

Train Handling

Analytics for Optimal

Driving and Consist

Configurations

Train Handling Analytics

Drivers can review their

performance on specific trips on

the Trips screen.

The Maps screen allows drivers to

review every incident or exception

geographically.

Fragmented Supply Chains

Using Queensland as an example ‣ Competing coal supply chains

‣ Over supplied market

‣ Duplication in capital investment

‣ Multiple planning centres

‣ Competing supply chain coordinators

What could the future look like?

Optimization – Work with Others

Recognize that relationships with third party stakeholders are

critical:

Track owners / operators

Terminal / Port owners / operators

Regulators (Industry, Safety, Economic)

Competitors (modal competition, advocacy, identification of

priorities)

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Invest time, effort and

capability into the ‘industry

level’ issues and

opportunities

Support this with the ‘inside

the business’ focus areas

Questions ?

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