Aurizon Holdings Ltd. · ASX:AZJ

Aurizon — Investor Day (October 2014)

97 slides from Aurizon's investor day presentation, Oct 27, 2014

  1. Slide 1: Aurizon analyst and investor presentation

    Dominic D Smith Vice President & Company Secretary Aurizon Holdings Limited ABN 14 146 335 622 T +61 7 3019 9000 F +61 7 3019 2188 E CompanySecretary@aurizon.com.au W aurizon.com.au Level 17, 175 Eagle Street Brisbane QLD 4000 GPO Box 456 Brisbane QLD 4001 For personal use only ASX Market Announceme

  2. Slide 2: Investor Briefing & Site Tour – Driving Value

    For personal use only Investor Briefing & Site Tour Driving Value 27 & 28 October Presentations

  3. Slide 3: Important notice

    Important notice ONLYonly No Reliance on this document This document was prepared by Aurizon Holdings Limited (ACN 146 335 622) (referred to as “Aurizon” which includes its related bodies corporate). Whilst Aurizon has endeavoured to ensure the accuracy of the information contained in this document

  4. Slide 4: Investor Briefing – Driving Value Day

    For personal use only Investor Briefing – Driving Value Day 1 – 27 October 2014

  5. Slide 5: Welcome & Introduction

    For personal use only Welcome & Introduction Lance Hockridge – Managing Director & CEO

  6. Slide 6: Agenda

    Agenda ONLYonly Welcome & Introduction 1 MD & CEO – Lance Hockridge use Network Introduction 2 EVP Network – Alex Kummant PERSONAL USE Network Operations personal 3 VP Network Operations – Clay McDonald Capital Expenditure / Network Regulation 4 VP Network Regulation – Lana Stockman VP Network Finan

  7. Slide 7: Safety performance, our target is zero

    Safety performance, our target is ONLYonly Lost Time Injury Frequency Rate (LTIFR)1 Total Recordable Injury Frequency Rate (TRIFR)1 use 11.43 55.65 PERSONAL USE Lost time injuries per million person-hours worked 71% 52% improvement improvement personal Incidents per million person-hours worked 30.81

  8. Slide 8: Aurizon's value creation fundamentals remain strong

    Aurizon’s value creation fundamentals remain strong ONLYonly Network Above Rail Driving Returns Below Rail use  Regulated Asset Base (RAB)  Volumes growing despite  Transformation: growing to ~$6bn by FY2017 negative sentiment − On track for 75% Operating PERSONAL USE  Stable earnings, given reg

  9. Slide 9: Aurizon's focus to drive shareholder value

    Aurizon’s focus to drive shareholder value ONLYonly Management’s core focus is driving returns – all investment and activities must meet or exceed hurdle rates (mid-teens, pre-tax) 1. Focus on achieving 75% Operating Ratio in respect of FY2015 and continuous improvements thereafter  Safety is Auriz

  10. Slide 10: West Pilbara Infrastructure Project – a growth option, not yet a commitment

    West Pilbara Infrastructure Project (WPIP) – a growth OPTION, not yet a COMMITMENT to invest ONLYonly  Option cost $211m (15% investment in Aquila) use  Feasibility work commenced PERSONAL USE  Key deliverable in 2015: − March 2015 indicative tariff (+/- 25%) personal − October 2015 binding tarif

  11. Slide 11: Transformational and productivity capex driving incremental returns

    Transformational and productivity capex driving incremental returns and operational improvements ONLYonly Capital expenditure FY2015 – FY2017 ($m)  Growth capex ~$800m, including 1,100 − ~$400m Network (WIRP and Rolleston electrification) use ~$1,100m − ~$300m Operations (Whitehaven rollingstock &

  12. Slide 12: Network Introduction

    For personal use only Network Introduction Alex Kummant – EVP Network

  13. Slide 13: About Aurizon Network

    About Aurizon Network  Aurizon Network controls, manages, operates and ONLYonly maintains the fixed rail infrastructure "below rail" assets of the Central Queensland Coal Network Aurizon Holdings Legal Structure (CQCN) • – Regulated Asset Base (RAB) of A$4.5 billion(1) use – Rated Baa1 / BBB+ (stab

  14. Slide 14: Stable regulated revenue base underpinned by global customers

    Stable regulated revenue base underpinned by global customers ONLYonly Stable regulated revenue base Strong customer base Current UT4 negotiations use  The form of regulation is a  The CQCN delivers rail infrastructure to  Increased level of stakeholder conventional revenue cap over 40 operating

  15. Slide 15: Network Strategy

    Network Strategy ONLYonly Recognition of the CQCN as a world leading operation and a robust repeatable formula are necessary precursors to Growth in new markets Optimised performance growth in new markets under UT4 and strong “Leverage repeatable formula into use customer advocates are future growth

  16. Slide 16: We will unlock latent capacity through focus on availability and utilisation

    We will unlock latent capacity through a relentless focus on availability and utilisation… ONLYonly Network Time Throughput Rate Train Density Throughput (hours/year) (metres/hour) (tonnes/metre) (tonnes/year) use Train Separation Availability Train Length Higher Axle Load PERSONAL USE Utilisation T

  17. Slide 17: Series of targeted projects to unlock capacity

    … this will be achieved through a series of targeted projects ONLYonly Availability Utilisation Capacity increases Project Impact Impact Mech Plant PACE New track machines – Ballast Undercutting and use ✓ Upgrades Resurfacing Network Asset Management System (NAMS) – Cumulative Investment1 ✓ NAMS & A

  18. Slide 18: Operating cost efficiencies to benefit supply chain

    Operating cost efficiencies to benefit supply chain ONLYonly Benchmarking Maintenance Costs - ARTC Benchmarking Maintenance Historically our maintenance costs are lower than the most comparable network Evans &  Best practice is the de facto competitor use Peck Cost report increase with favourable 

  19. Slide 19: Network Operations

    For personal use only Network Operations Clay McDonald – VP Network Operations

  20. Slide 20: Aurizon Network Overview

    Aurizon Network Overview For personal use only Central Queensland Coal Network (CQCN)  The CQCN comprises 4 major coal systems and 1 connecting system link serving Queensland’s Bowen Basin coal region: Newlands, Goonyella, Blackwater and Moura with GAPE the connecting system link – 2,670 kilometres

  21. Slide 21: Introduction

    Introduction ONLYonly Increased Network The last three years have been focused on operational performance Utilisation use improvements:  Structure PERSONAL USE Increased  Focus Network  Capability personal Availability Value Add In parallel there has been an emphasis on transformation: Unlocking

  22. Slide 22: Our focus is leading to operational performance improvements

    Our focus is leading to operational performance improvements ONLYonly BR Delays > 15 mins per Service Cancellations due to Traction Faults -33% 50 -44% 350 use 45 40 300 35 PERSONAL USE 250 30 25 200 personal 20 150 15 100 10 5 50 0 0 FY2011 FY2012 FY2013 FY2014 FY2011 FY2012 FY2013 FY2014 Below rai

  23. Slide 23: Performance improvements enabling increased network utilisation

    Performance improvements are enabling increased network utilisation ONLYonly Aurizon Network Volumes (mt) Network is working to address the biggest capacity 283.0 consumption factors to increase utilisation of the Theoretical Capacity existing infrastructure: use 255.4 238.8 80% 224.5 Planned Mainte

  24. Slide 24: Network strategic projects unlocking additional capacity

    Network strategic projects unlocking additional capacity in the future ONLYonly Additional Capacity Generated by Strategic Projects Our strategic improvement program seeks to unlock capacity within the existing use network. PERSONAL USE PACE A key theme is using technology as an Mech Plant Upgrades

  25. Slide 25: Effective asset management delivers a sustainable reliable network

    Effective asset management delivers a sustainable reliable network ONLYonly Asset Management Asset Management Benchmarking  Major asset categories: use − Civil PERSONAL USE − Electrical − Telecoms and Signals personal  Triggers for maintenance and renewal works are defined in the Aurizon Maintenan

  26. Slide 26: Asset management underpins targeted Asset Renewal Program

    Effective asset management underpins targeted Asset Renewal Program ONLYonly Asset Renewal Capex1 FY14 Capital Program by Spend Category use 160 140 PERSONAL USE 120 100 personal 80 60 40 20 0 For FOR FY11 FY12 FY13 FY14  Annual asset renewal capex is in line with  Total spend is dominated by civi

  27. Slide 27: Further drives sustainable operational performance improvements

    Which further drives sustainable operational performance improvements ONLYonly Telemetry fault 44% use improvement 10 incidents to 3 incidents PERSONAL USE Obsolescence personal Safety 5% Culverts repairs 11% Reliability Improve asset performance 10% through new technology For FOR End of Life Replac

  28. Slide 28: We are modernising the way we do standard work

    We are modernising the way we do standard work ONLYonly SAP Integrated Asset Management System Track Defect Inspection Reporting Whole of life asset management with tools to improve the velocity, access & accuracy of asset use information PERSONAL USE Mobile tablets for real personal time fault repo

  29. Slide 29: Less intrusive inspection techniques improving asset data

    …with less intrusive inspection techniques improving the quality of asset data For personal use only Unmanned Aerial Vehicles (UAV) / Drones High definition images Use of the drones reduces time Infra-red required on track for inspections analysis while providing data for pre- emptive maintenance ac

  30. Slide 30: Maintenance program focused on better track performance

    The maintenance program is focused on delivering better track performance ONLYonly Speed Restrictions  CQCN is split into North and South regions 200  6 major strategically located depots use  450 maintenance staff in teams focusing on: 150 − Maintenance and Response 100 PERSONAL USE − Civil & Tr

  31. Slide 31: Technology & Systems – Better Ballast Management

    Technology & Systems – Better Ballast Management ONLYonly Ground Penetrating Radar Custom Designed for CQCN use PERSONAL USE personal Test track panel - Yukan: Calibrated specific conditions vs. Old Method Sampling Standard Approach  Manual spot sampling every For FOR PVC Category Description PVC r

  32. Slide 32: Technology & Systems – Coal Fouling Prevention

    Technology & Systems – Coal Fouling Prevention ONLYonly Veneering Spray System & Garden Bed Profile Opacity Dust Monitoring Results use Installation Completed PERSONAL USE personal For FOR  Reduction of coal dust emissions improves the integrity of the network while benefiting local communities in

  33. Slide 33: Modernisation & Mechanisation – increased productivity

    Modernisation & Mechanisation – increased productivity from time on track ONLYonly Resurfacing Ballast Cleaning The Mechanised Maintenance team use of 171 FTE consists of:  Resurfacing (North & South) PERSONAL USE  Ballast Cleaning (Pre-work & Operations) personal  Plant Maintenance Resurfacing F

  34. Slide 34: Systems & Technology – Planning and product integration

    Systems & Technology – Planning and product integration ONLYonly Integrated Planning Improvement Strategies Possession Assessment and use Capacity Evaluator Integrated Planning optimisation is Collaborating with GE and Norfolk a key element of world‘s best Southern to leverage Class 1 PERSONAL USE p

  35. Slide 35: Regulation

    For personal use only Regulation Lana Stockman – VP Network Regulation

  36. Slide 36: Revenue protection mechanism

    Revenue protection mechanism For personal use only Aurizon Network’s regulated revenue is protected through a combination of contractual and regulatory mechanisms that are included in the Access Undertaking and Access Agreements  Primary revenue protection mechanism available to Aurizon Network Tak

  37. Slide 37: Aurizon Network's RAB expected to double since IPO

    Aurizon Network’s RAB expected to double since IPO For personal use only • Aurizon Network’s RAB1 over time (A$bn)  QCA determines Aurizon Network's access pricing based on the estimated value of the RAB +96.7%  RAB value of A$4.5bn (excluding assets subject to 5.9 access facilitation deeds1) as a

  38. Slide 38: UT4 Timeline

    UT4 Timeline ONLYonly QCA issue UT4 Aurizon Network QCA issue UT4 Draft Aurizon Network Receive Final Draft Decision Response to UT4 Decision Policy Response to UT4 Decision MAR 2014DAU Draft Decision 2014DAU Aurizon Network use Policy Response to: QCA issue UT3 Draft Decision  UT4 Draft QCA issue

  39. Slide 39: QCA MAR Draft Decision

    QCA MAR Draft Decision 2014 Draft Access Undertaking (DAU) Position QCA Proposal ONLYonly Maximum  Headline DAU MAR submitted in April 2013 -  A MAR of $3.88bn (‘proposed MAR’) which includes UT3 capital Allowable Revenue $4.78bn expenditure carryover account adjustments (MAR)  Headline DAU MAR r

  40. Slide 40: Beyond UT4

    Beyond UT4 ONLYonly  Strengthen stakeholder engagement focus to build trust and credibility Stakeholder Engagement - Miners - Operators - Legislators use PERSONAL USE  Engagement of transparent cost build up processes for both maintenance and Costing Processes opex personal  Transition to full st

  41. Slide 41: Capital Expenditure and WIRP

    For personal use only Capital Expenditure and WIRP Pam Bains – VP Network Finance

  42. Slide 42: Network's capital expenditure

    Network’s capital expenditure ONLYonly Capacity Completion / Construction Period Total Capital Major Growth Projects Increment Notes Estimated Completion1 (years) ($m) (mtpa) On time, GAPE January 2012 2.0 1,100 33 on budget use On track, WIRP2 March 2015 / December 2015 4.0 858 27 on budget PERSONA

  43. Slide 43: WIRP Fast Facts

    WIRP Fast Facts  Wiggins Island Rail Project (WIRP) Stage 1 will facilitate transport of 27mtpa of coal to the new Wiggins Island Coal Export ONLYonly Terminal (WICET)  33% increase in export tonnage transported in the Blackwater and Moura systems (81mtpa to 108mtpa)  $858m investment in new and

  44. Slide 44: WIRP Project Status

    WIRP Project Status ONLYonly  WIRP1 is currently being delivered on time and within budget with three of six stages already complete Segment Scope Delivery Status use Segment 1 – WICET Balloon Construction of a 13km single rail loop Aurizon Network works completed in Loop May 2014  PERSONAL USE Se

  45. Slide 45: WIRP Returns

    WIRP Returns ONLYonly ± 2.5% Regulated Returns contingency WIRP fee saving overrun  WIRP regulated returns are recovered under the Access Agreements that Network must enter into with each WIRP As costs increase or decrease above or below customer or the WIRP customer’s haulage provider use 2.5% of

  46. Slide 46: Above Rail Operations

    For personal use only Above Rail Operations Mike Franczak – EVP Operations

  47. Slide 47: Operational improvements to drive margins and ROIC

    A range of identified operational improvements will drive margins and ROIC past near term annual targets use PERSONAL USE personal For FOR ONLYonly Note: Implied Return on Invested Capital (ROIC) guidance only based on a 10.5% average ROIC for three years ROIC and operating ratio projections are ill

  48. Slide 48: Transformational capital is a critical component of multi year plan

    Transformational capital is a critical component of the multi year spend and improvement plan ONLYonly Transformational Renewal Growth use PERSONAL USE Upgrading Basic  Fleet upgrades Rollingstock personal   Information technology (FMT1) − Improved fleet overhauls  Fleet expansion ratios (i.e. 3

  49. Slide 49: FMT re-engineers contract to cash process

    FMT- Technology is helping Aurizon re-engineer its contract to cash process to drive leading edge improvements ONLYonly Benefits of FMT What is FMT?  Self-service customer portal  Nationwide view of services, use  A world class ‘Transportation Management ‒ Standard business performance and plans

  50. Slide 50: Aurizon will continue to improve fuel consumption

    Aurizon will continue to improve fuel consumption towards Class 1 levels use PERSONAL USE personal For FOR ONLYonly 49 49

  51. Slide 51: Four key initiatives will drive consumption rates to class levels

    Four key initiatives will drive consumption rates to class 1 levels ONLYonly Driver Advisory System (DAS) Fuel Link What is it? What is it?  On-board technology that provides real time  Live data on locomotives enabling better use information to drivers performance management  DAS currently equip

  52. Slide 52: Key initiatives in Rollingstock Maintenance transformation

    Key initiatives in the Rollingstock Maintenance transformation are underway ONLYonly  Facilities rationalisation  Policies and practices Underway Fleet reduction use  Materials reduction and  Labour reduction rationalisation PERSONAL USE  In train repair  Focus on reliability and availability

  53. Slide 53: Equipment condition monitoring changes the way we work

    Equipment condition monitoring changes the way we work and improves service, safety and productivity ONLYonly Condition monitoring key facts  RSM currently executes a time based maintenance program − Rollingstock must be stopped and physically examined use − Maintenance issues are only identified d

  54. Slide 54: Investment in Rollingstock Maintenance transformation

    Investment in Rollingstock Maintenance transformation to drive improvement in core metrics ONLYonly Maintenance cost ($/Net Tonne Kilometre) Maintenance headcount (FTE1) Key Maintenance metrics use PERSONAL USE personal 100 Availability2 2,618 -34% 80 -45% 60 1,436 Reliability (Faults per loco per y

  55. Slide 55: Targeted capital investment in IOP and reduced terminal footprint

    Targeted capital investment in our IOP and reduced terminal footprint delivers improved value ONLYonly Capital requirement to maintain current state with Additional investment will enable step change in minimal benefit improvement for future state use PERSONAL USE personal Requirements Outcomes of c

  56. Slide 56: IOP improving unit costs and capacity in Intermodal

    The IOP and other programs are improving unit costs and capacity in our Intermodal business ONLYonly Aurizon Intermodal business  National reach use  Example:  With a flat cost base and reduced assets, the Integrated Operating Plan (IOP) is delivering: PERSONAL USE - Reduced Sydney – Perth transi

  57. Slide 57: Fleet modernisation will lower basic replacement requirements

    IOP, fleet modernisation and standardisation will lower basic replacement requirements below attrition rate ONLYonly Aurizon’s fleet retirement and replacement profile Insights use  Aurizon’s fleet has an age profile that requires overhaul or replacement in the upcoming years PERSONAL USE  Operati

  58. Slide 58: Q&A

    For personal use only Q&A

  59. Slide 59: Investor Briefing – Driving Value Day

    For personal use only Investor Briefing – Driving Value Day 1 – 27 October 2014

  60. Slide 60: Investor Briefing – Driving Value Day

    For personal use only Investor Briefing – Driving Value Day 2 – 28 October 2014

  61. Slide 61: Agenda

    Agenda For personal use only Performance of Aurizon Network Operations 1 VP Network Operations – Clay McDonald Network Planning, Scheduling and Execution 2 GM Network Operations, Central Queensland Coal Network – Sarah Dixon Control Centre Tour 3 Control Centre Manager – Darryl Johnson 60

  62. Slide 62: About Aurizon Network

    About Aurizon Network For personal use only  Controls, manages, operates and maintains the fixed rail infrastructure “below rail” assets of the Central Queensland Coal Network (CQCN)  CQCN is regulated by the Queensland Competition Authority (QCA)  Regulatory framework is designed to provide OPEN

  63. Slide 63: Performance of Aurizon's Network Operations

    For personal use only Performance of Aurizon’s Network Operations Clay McDonald – VP Network Operations

  64. Slide 64: Central Queensland Coal Network Fast Facts

    Central Queensland Coal Network Fast Facts For personal use only Assets Blackwater Moura Goonyella Newlands CQCN Track (km) 1,110 260 980 320 2,670km Electrified track 965 0 980 0 1,945km Rail 2,220 520 1,960 640 5,340km Turnouts 512 45 353 81 975 T/O Culverts 1,600 450 1,100 593 3,743 Bridges 154 3

  65. Slide 65: Blackwater system overview

    Blackwater system overview For personal use only System consists of:  14 mines  2 export coal terminals  4 domestic unload locations  335 kilometres (208 miles) of single line track  242 kilometres (150 miles) of duplicated track Average train size is 4 locomotives and 99 wagons hauling 8,040 t

  66. Slide 66: Moura system overview

    Moura system overview For personal use only System consists of:  4 mines  2 export coal terminals  4 domestic unload locations  266 kilometres (165 miles) of single line track Average train size is 3 locomotives and 83 wagons hauling 6,000 tonnes of coal From FY2010 to FY2014 average payload inc

  67. Slide 67: Goonyella system overview

    Goonyella system overview For personal use only System consists of:  20 mines  2 export coal terminals  1 domestic unload location  634 kilometres (394 miles) of duplicated track Average train size is 3 locomotives and 120 wagons hauling 9,820 tonnes of coal From FY2010 to FY2014 average payload

  68. Slide 68: Newlands system overview

    Newlands system overview For personal use only System consists of:  4 mines  1 export coal terminal  3 domestic unload locations  187 kilometres (116 miles) of single line track  Includes Goonyella to Abbott Point Expansion (GAPE) Average train size is 3 locomotives and 81 wagons hauling 6,500

  69. Slide 69: Network Operations on a page

    Network Operations on a page Teams Responsibilities KPIs Projects and Initiatives Value Add For personal use only  Maintenance and Renewals  Delays > 15  Network Asset Management Asset  Assurance mins System (NAMS)  Strategy for Civil, Signals, Telecoms Increased Management  Capital  Track Re

  70. Slide 70: Network Operations Key Focus Areas

    Network Operations Key Focus Areas For personal use only Deliver maximum system through-put at the lowest total cost of operation both safely & sustainably We are actively working towards a Zero Harm environment Safety We are reducing: - Network cancellations We provide capacity for our - Network de

  71. Slide 71: Focusing on Improving the Run Rate

    Focusing on Improving the Run Rate1 For personal use only 800,000 700,000 600,000 500,000 tonnes 400,000 300,000 200,000 100,000 0 FY10 FY10 FY11 FY11 FY12 FY12 FY13 FY13 FY14 FY14 FY15 Record H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 Q1 (7 Sep 14) Notes 70 1. Average daily CQCN volumes for each six month perio

  72. Slide 72: Less wear, longer life – New Rail

    Less wear, longer life – New Rail For personal use only Network expects to achieve a 15% reduction in the total cost of ownership of its rail assets in Central Queensland as a result of the superior performance of the new rail 71

  73. Slide 73: Innovative sleeper design

    Innovative sleeper design Traditional Timber and Concrete Composite Sleepers For personal use only Sleepers  Allows like-for-like replacement of timber turnouts  Improved total cost of ownership: o Greater service life o Lower maintenance requirements o Stronger and more consistent engineering pro

  74. Slide 74: Remote Points Monitoring

    Remote Points Monitoring JB11C SNX current draw - Red (stone in For personal use only Train Protection Systems Signalling Fault by type rodding), Green (stone removed) 1% Lamp Failure Train Control System 3% 0% Other 3% Crossings 5% Interlockings and Housings 6% Points 33% Points Tracks Signals Axle

  75. Slide 75: Operational Technology – Supersite Program

    Operational Technology – Supersite Program  Site to include:  Wheel impact detectors For personal use only  Inline weighing system  Hot and cold bearing detectors  Pantograph monitor  Below rail predictive equipment Supersite Location WILD (Wheel Impact Load Detector Client Screen) -> 74

  76. Slide 76: Supersite Strategy

    Supersite Strategy Main Line Pantograph Wheel Impact Load Inspection Detector For personal use only Main Line Rollingstock Condition Space for future systems (Network, Weighbridge Monitoring Rollingstock, PN, BMA etc) 75

  77. Slide 77: Improved mechanisation – leading to velocity improvements

    Improved mechanisation – leading to velocity improvements For personal use only 76

  78. Slide 78: Network Planning, Scheduling & Execution

    For personal use only Network Planning, Scheduling & Execution Advanced Planning and Execution System (APEX) Sarah Dixon – GM Network Operations CQCN

  79. Slide 79: Presentation outline

    Presentation outline For personal use only 1 Managing Australia’s largest export rail network 2 Network Operations CQCN on a page 3 Network Operations CQCN strategy and vision 4 Network Operations CQCN activities 7 outcomes 5 Planning and scheduling 6 Day of Operations 7 Business systems and improve

  80. Slide 80: Managing Australia's largest export rail network

    Managing Australia’s largest export rail network For personal use only  Managing track access to 2,700km of rail network with 1,800kms of overhead equipment  Loading at 44 mines  Delivering to 5 export coal terminals and 7 domestic customers  Communicating with 6 Rail Operators  5 year tonnage

  81. Slide 81: Network Operations CQCN on a page

    Network Operations CQCN on a page Teams Responsibilities KPIs Transformation Value Add For personal use only  4 x 6 month Closure Calendar and  Utilisation of  Planning Reset Process Review Capacity Forecast capacity  APEX¹ Planning & Scheduling Planning &  Alignment of maintenance Increased mo

  82. Slide 82: Network Operations CQCN Strategy & Vision

    Network Operations CQCN Strategy & Vision For personal use only Network Operations CQCN Vision for FY16 is that we are To achieve this vision, we consistently act in line with our valued partners in our supply chains through: five Golden Rules: World class results that are mutually beneficial We We

  83. Slide 83: Network Operations CQCN Activities & Outcomes

    Network Operations CQCN Activities & Outcomes For personal use only Short Term Day of Performance Capacity Planning Tactical Planning Scheduling Planning Operations (DOO) Review Main activities for Network Operations CQCN:  Critical Asset Activity and Capacity Planning (with respect to long term ca

  84. Slide 84: Planning & Scheduling

    Planning & Scheduling Weekly Path Availability For personal use only Capacity Forecast Team size:  23 staff in Mackay and Rockhampton Planning Horizons:  Long term (1 - 2yrs);  Tactical (6mths - 21days); and  Short term (21 day, 7 day, 48 hrs & 24 hrs) Network Operations Pathing Planner Main Act

  85. Slide 85: Day of Operations

    Day of Operations Team size: For personal use only  108 staff in 24/7 live run environment of Network CQCN Control Centre, based in Rockhampton  18 staff in Jilalan, Callemondah and Gladstone yards  7 staff based across CQCN Fault Control Centre Main activities:  Managing train movements and tra

  86. Slide 86: Business Systems and Business Improvement

    Business Systems and Business Improvement Team size: For personal use only  16 staff across Brisbane, Rockhampton and Mackay Main activities:  Analysing and reporting on performance across CQCN  Identifying opportunities to improve volume throughput or increase velocity  Implementing change thro

  87. Slide 87: Network Operations CQCN Transformation

    Network Operations CQCN Transformation For personal use only Recent Transformation Activities Remaining Business Need  Consolidation of Mackay and  Support planning and execution with Rockhampton based Control Centres increasing complexity to form CQCN Control Centre in − More mine to port combina

  88. Slide 88: APEX – Advanced Planning and Execution

    APEX – Advanced Planning and Execution APEX is a transformational tool integrating industry proven technologies into a single solution to optimise planning, scheduling For personal use only and day of operations for the Central Queensland Coal Network Network Forecasts Plan and Schedule Real-Time Pl

  89. Slide 89: APEX delivered in three phases

    APEX delivered in three phases… For personal use only Now 2012 2013 2014 2015 2016 Movement Planner (Foundation) Release 2 Planning & Scheduling Release 2 Movement Planner (Advanced) Movement Planner (Foundation) Planning & Scheduling Movement Planner (Advanced)  Electronic time-distance graphs  N

  90. Slide 90: Visible change from APEX

    Visible change from APEX Paper Train Diagrams currently used For personal use only  Paper Train Control diagrams are currently used by Network Controllers  These are created through manual manipulation of templates to find a ‘best fit’ for services requested by Rail Operators  APEX will replace p

  91. Slide 91: Benefits & opportunities for the entire coal supply chain

    Benefits & opportunities for the entire coal supply chain For personal use only APEX integrates across Network long term planning to scheduling and day of operations execution to provide throughput, customer satisfaction & planning efficiency benefits. KPIs Utilisation Capacity Throughput Increase i

  92. Slide 92: Control Centre Tour

    For personal use only Control Centre Tour Darryl Johnson – Control Centre Manager

  93. Slide 93: Presentation outline

    Presentation outline For personal use only 1 Network Day of Operations 2 Network Operations CQCN Control Centre 3 Network Controller Training 92

  94. Slide 94: Network Day of Operations

    Network Day of Operations For personal use only  Managing 2,700km of network with 1,800kms of overhead equipment  Loading at 44 mines  Delivering to 5 export coal terminals and 7 domestic customers  Communicating with 6 Rail Operators  9 x Control Boards in consolidated Control Centre − Newland

  95. Slide 95: Network Consolidated CQCN Control Centre

    Network Consolidated CQCN Control Centre For personal use only  Manage the interface between coal and freight trains, high and low speed passenger trains, livestock, level crossings, occupational crossings and maintenance works  Direct the movement of trains and maintenance rollingstock across the

  96. Slide 96: Network Controller Training

    Network Controller Training For personal use only  Network Control needs to perform highly skilled and safety critical work that carries with it a high level of responsibility  The transformation of the Network Controller Training Programme has delivered increased safety and production performance

  97. Slide 97: Investor Briefing – Driving Value Day

    For personal use only Investor Briefing – Driving Value Day 2 – 28 October 2014

Aurizon Holdings — Investor Day (October 2014) on 6ix