Freight & Logistics Council December 2012

Since 1 May 2012,

CBH & Watco have moved 3 million tonnes…

Our rail fleet

• All 574 wagons are on the track

• 20 locomotives are on the track

• Last 2 locomotives to arrive this month

• Wagon fleet having weighing units installed currently

Our locomotives

3300 & 2700 horsepower Faster journeys and turnaround times

Distributed power More efficient and productive

Dynamic braking Better fuel efficiency

Tier 2 US standard Meets the highest environmental standards

17 narrow gauge

5 standard gauge

Our wagons

Lightweight aluminium body Maximum loading capacity

Pneumatic doors Safer loading and discharge function

Side mounted handbrake Standard loading protocols

Consistent wagon design Efficient maintenance, scheduling and inventory management

446 narrow gauge

128 standard gauge

Our new technology

GrainTrack: system that manages the process of loading & discharging

Touchpad: displays info about scanned wagons

Scanner: reads info from the tag on the wagon

Message boards: displays info about wagons passing the scanner

IONX: weighs the wagon & sends information to touchpad

WiTronix: tracks the location and details of each CBH train

Watco WA RailWatco WA Rail

• Watco WA Rail is headquartered in the CBH West Perth office

• Set up regional offices in Avon, Merredin, Geraldton, Wagin & Albany

• All management staff employed• Most of the driver group employed• We are committed to putting

growers first

Building our business

• Transition was challenging given delay in asset delivery, overlap with existing provider and biggest harvest on record to move

• We did however start 6 weeks early• Through the thick of it now • Focus on delivering tonnes for shipping demand• Interest from other potential customers is strong

Through transition and out the other side

How are we performing?

• Currently moving 15,000 - 25,000 tonnes on rail per day• Aim to move 25,000 - 30,000 tonnes per day• CBH has shipped a record 12.7 million tonnes from Western Australia in

the year to 31 October • Shipping records have been broken for five individual months

Road vs rail

2009 = 64% rail

2010 = 73% rail

2011 = 64% rail

2012 = 57% rail

2013 onwards = 70%+ rail

71% in Nov 2012

What have we achieved…in the last 12 months?

• 22 locomotives built• 22 locomotives transported across US inland & shipped to WA• 574 wagons built, delivered & fully commissioned• Introduced touchpad, scanner & GrainTrack system• Trained over 300 country staff• Watco WA Rail built team of over 130 staff, comprising of management,

drivers & maintenance crews

What have we achieved?

• Moved over 3 million tonnes since new contract started

• Made 28 changes to the technology to enhance usability

• More tonnes to port with each train

• Reduced rail freight rates by an average of 7% this year