Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Corporate Update (July 2006)
27 slides from Bhp's corporate update, Jul 17, 2006
Slide 1: Port & Rail Operations
BHP Billiton Iron Ore – Western Australia Port & Rail Operations Mick Evans – Vice President Port & Rail Iron Ore
Slide 2: Continuous Improvement in Safety Performance
Continuous Improvement in Safety Performance • Continued development of One Business approach to HSEC systems and processes. • Focus areas: - Leadership - Behavioural based systems • Programs & actions: - Take 5/JHA’s Safety - 12 M onth Rolling TRIFR 25 22 Actual - Stop for safety 21 2006 YTD 20 - R
Slide 3: Summary
Summary Port Operations: • Final stage of production process; • Crushing, screening & blending to create on- grade products; • Nelson Point & Finucane Island. Rail Operations: • Service nine separate mine/loading facilities; OB 18 • Service two separate port facilities; • Integrated system: mine/rai
Slide 4: Railroad Overview
Railroad Overview Page 4 17 July 2006
Slide 5: BHP Billiton Iron Ore Railroad
BHP Billiton Iron Ore Railroad • Safety focused • Highest axle loads in the world • Emphasis on research • History of innovation Page 5 17 July 2006
Slide 6: Operating Improvements Have Increased Axle Loads
Operating Improvements Have Increased Axle Loads Axle Load 37.5t/40.0t 37.5t 35.0t 32.5t 30.0t 28.5t Max. Wet tonnes 89 96 107 116 126 130 per wagon 1970 1974 1986 1996 99-04 05-06 Page 6 17 July 2006
Slide 7: Employee Productivity Tripled in the Past 10 Years
Employee Productivity Tripled in the Past 10 Years Million Tonnes Railed Per Employee 0.301 0.31 0.258 0.245 0.216 0.179 0.167 0.148 0.151 0.126 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 Page 7 17 July 2006
Slide 8: Increasing Operational Flexibility – Rail Sequencing Project
Increasing Operational Flexibility – Rail Sequencing Project • Implemented in November 2005 • Sequentially-based dispatching method that allows trains to depart as soon as they are made up after dumping • The sequence of destinations reflects the required blend ratio for the business (including sate
Slide 9: Fuel Savings
Environment & Efficiency Improvements Contributing Factors 1.45 ¾ Rail / Wheel profile Litres of diesel per wet tonne ¾ Aerodynamic Ore Cars Fuel Savings ¾ Efficient Locomotives ¾ Distributed Power 0.72 ¾ Higher Axle Load ¾ Longer Trains 1978 2006* ¾ Driver Strategy * Q3 FY06 Page 9 17 July 2006
Slide 10: World's Longest and Heaviest Train
World’s Longest and Heaviest Train • 682 wagons = 7.353kms • eight GE AC6000 locomotives • 99,732 gross tonnes • 82,262.5 tonnes of iron ore • distributed power / 5 locations • single driver Page 10 17 July 2006
Slide 11: BHP Billiton Rail Lines - Among the Best in the World
BHP Billiton Rail Lines - Among the Best in the World Track Productivity Locomotive Productivity Gross Tonne Raile d per Route Km Million Net Tonne-Kilometres / Loco / Year 757 200,283 192,095 573 140,338 421 327 83,402 70,408 247 63,593 185 43,466 134 BHPB GJV BHPB NJV Coal Line Brazil 1 Brazil 2 S
Slide 12: Current Train Operations
Current Train Operations Newman Line • Up to 14 trains per day to port & same back to mines (pass via sidings) • Flexibility of one / two / three Rake Trains • Train configuration: 1 rake = 104 ore cars = 12,480 tonnes of ore 2 rakes = 208 ore cars = 24,960 tonnes of ore 3 rakes = 312 ore cars = 37,
Slide 13: Operational Delays Flow Through Entire System
Operational Delays Flow Through Entire System Xbar-R Chart of Dumper Effectiveness by Group 37 5 UCL=5304 Sampl e Mean ( tph/ day ) • Delay at Port 5 5000 _ 4500 X=4533 Hedland 4000 5 6 LCL=3763 3500 1 1 3000 15 19 23 27 31 35 39 43 47 Weekly Sub-group • Increased rail Xbar – R Chart of Rake trip Ti
Slide 14: Infrastructure Access – Key Issue for Continued Growth
Infrastructure Access – Key Issue for Continued Growth • The integrity of our rail network is vital to the efficient operation and expansion of one of the country’s leading export industries; • Track access (ie: Part IIIA imposed) is inefficient due to: – Loss of operational flexibility – Decreased
Slide 15: Port Hedland
Port Hedland Nelson Point Finucane Island Page 15 17 July 2006
Slide 16: Port Operations Overview
Port Operations Overview • Nelson Point & Finucane Island • 365 days per year operation • Crushing, screening & blending • Plan is for four ports (2 x Nelson Point and 2 x Finucane Island) with stockyard dedicated to each • Average maximum sailing draft (MSD) 17.94m • A dynamic underkeel clearance p
Slide 17: Nelson Point Site Layout
Nelson Point Site Layout Page 17 17 July 2006
Slide 18: Finucane Island Site Layout
Finucane Island Site Layout Page 18 17 July 2006
Slide 19: Stockpiling – Key to On-Grade Production
Stockpiling – Key to On-Grade Production • Stockpiles are blended (homogenised) as they are built – ‘Chevron Ply’ stacking Top Bench • Homogenising ensures grade deviations are decreased, compared to original Middle Bench ore stream • Crucial to producing on-grade products Bottom Bench Typical stock
Slide 20: Demand for Products is Dynamic…
Demand for Products is Dynamic… Demand Variability by Product Weekly values and 4 weekly moving averages of vessel arrivals 1,600,000 1,500,000 1,400,000 1,300,000 1,200,000 1,100,000 1,000,000 tonnes per week 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 Jul-03 Mar-04 Ju
Slide 21: …and Has Always Been
…and Has Always Been Demand Variability Weekly values, 4 weekly and 6 monthly moving averages of sum of all products on vessel arrivals 3.0 2.5 2.0 mt/week 1.5 1.0 0.5 0.0 Jul-92 Jul-93 Jul-94 Jul-95 Jul-96 Jul-97 Jul-98 Jul-99 Jul-00 Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 Weekly Values 4 Week Moving Av
Slide 22: Port Hedland Shipping
Port Hedland Shipping • Entry to port by inwards route located to the East of main channel • Exit from port by 43kms marked dredged channel • Parameters affecting vessel movements: ― Under keel clearance ― Vessel handling ― Tides • Target gross loading rate 5,850 tph • Target turn around time 85 hou
Slide 23: Port Hedland Channel Overview
Port Hedland Channel Overview Page 23 17 July 2006
Slide 24: Vessel Movements - Limited Windows of Opportunity
Vessel Movements - Limited Windows of Opportunity Page 24 17 July 2006
Slide 25: Developing Partnerships to Enhance Port Hedland
Developing Partnerships to Enhance Port Hedland • Expect to invest more than A$100 million in the Pilbara over next decade – based on internationally recognised social research • Service Delivery: – Developed MOUs with WA Government to address service issues (>A$12 million) • Local Infrastructure: –
Slide 26: The End Product
The End Product 225,000 tonne ore carrier leaving Port Hedland Page 26 17 July 2006
Slide 27: Page 28 17 July 2006
Page 28 17 July 2006