BHP Billiton Iron Ore Railroad Presentation to Analysts June 2005 Mike Darby, Vice President Rail Iron Ore Rail System Location Map The Nelson Point Newman Railway is 426km Port Hedland-Yarrie Railway is 208km Yandi spur line is 30km Area C spur line extension from Yandi is 38km Jimblebar spur line is 32km Page 2 Safety Performance - Rail Classified Injuries Classified Injury Frequency Rate for Rail (including contractors) 50 47.3 45 40 35 28.1 30 25 17.2 20 15 12.6 10.5 10.4 7.8 10 11.6 11.6 10.5 9.5 10.5 10.5 9.5 8.2 5 Historical Page 3 Actual CI Actual Ma y-0 5 -0 5 Ap r Ma r-0 5 Fe b05 -05 Ja n De c-0 4 No v04 Oc t-0 4 Se p- 0 4 -04 Au g 4 Ju l -0 4 03 /0 3 02 /0 2 01 /0 00 /0 1 0 Page 4 P Rapid RG FY 04 FY 02 FY 00 FY 98 FY 96 FY 94 FY 92 FY 90 FY 88 FY 86 FY 84 FY 82 FY 80 FY 78 FY 76 FY 74 FY 72 FY 70 FY 68 FY 66 Tonnes Railed 110 Growth Period 61 Page 5 r-0 Ma 1 y-0 1 Ju l-0 1 Se p- 0 1 No v -0 1 Ja n- 0 2 Ma r-0 2 Ma y-0 2 Ju l-0 2 Se p- 0 2 No v -0 2 Ja n- 0 3 Ma r-0 3 Ma y-0 3 Ju l-0 3 Se p- 0 3 No v -0 3 Ja n- 0 4 Ma r-0 Ma 4 y-0 4 Ju l-0 4 Se p- 0 4 No v -0 4 Ja n- 0 5 Ma r-0 5 Ma 1 0 v -0 n- 0 0 l-0 0 p- 0 Ja No Se Ju Rail KPI’s - Long Trains (300-336 Cars) Number of Train Runs Apr 05 3,642 3,642 YTD 1,053 Trains Long Trains Yandi & MAC Newman Million Tonnes Railed Per Employee Employee Productivity Tripled in the last 10 years 0.353 0.301 0.245 0.258 0.216 0.126 FY96 Page 6 0.148 0.151 FY97 FY98 0.167 FY99 0.179 FY00 FY01 FY02 FY03 FY04 FY05 Railroad Manning 375 362 297 FY99 Page 7 FY00 288 290 FY01 FY02 302 FY03 322 FY04 339 FY05 Actual FY05 Plan Rolling Stock Fleet Expansion Program Rakes Ore Cars 4,000 Original 50 Arrival of 13 SD70 3,410 45 3,5008 AC600 Locos 40 Dash 8 Locos Arrival of 6 SD40 3,203 2210 Ore Car 40 2,971 3,000 Arrival of 6 SD40 Arrival of 5 SD40 2,500 2,484 2,210 Arrival of 3 SD40 2,000 21 21 21 22 22 22 22 23 23 23 24 24 25 25 26 26 27 27 28 28 29 29 29 29 29 30 30 31 31 32 32 32 33 33 33 35 30 25 20 1,500 12 Train Schedule 15 1,000 10 10 Train Schedule 500 Page 8 Dec-05 Nov-05 Oct-05 Sep-05 Aug-05 Jul-05 Jun-05 May-05 Apr-05 Mar-05 Feb-05 Jan-05 Dec-04 Nov-04 Oct-04 Sep-04 Aug-04 Jul-04 Jun-04 May-04 Apr-04 Mar-04 Feb-04 Jan-04 Dec-03 Nov-03 Oct-03 Sep-03 Aug-03 Jul-03 Jun-03 May-03 Apr-03 Mar-03 Feb-03 0 5 0 Locomotive Fleet Dash 8 Number 40 Traction Horsepower 4,000 AC6000 8 20 6,000 SD40 Dash 8 AC6000 Page 9 SD40 3,000 SD70ace 13 (Oct05) 4,300 Automatic Train Protection - ATP System Page 10 Current Train Operations Newman Line • 12 ore trains per day / 14 trains 1 July 05 • 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 = 37,440 tonnes of ore • Goldsworthy Line • 4 ore trains per day • Train configuration: 90 ore cars = 7,650 tonne of ore Page 11 Asset Protection 9 12 Hotbox / Hot Wheel Detectors Page 12 9 1 Cold Wheel Detector 9 1 Wheel Impact Monitor 9 3 in Motion Weighbridges 9 Acoustic Bearing Detection 9 Dragging Equipment Detectors 9 Auto Locomotive Downloads 9 Video Imaging Instrumented Ore Cars (IOC) • Vertical suspension travel (ride quality) • Wheel-rail acceleration (rail condition) • In-train forces • Lateral stability (hunting) • Longitudinal acceleration • Car body / draft gear pocket strains • Temperature • Brake pipe pressure Page 13 IOC Reporting Automatic data downloading Dumping Forces Measured Page 14 Car side wall strains IOC Other Applications • Bearing Temperature & Brake Pressure • Track Assessment Sensors • Improve Car Body Life Strain Gauge on Sidewalls Measure Car Body Dumping Strains Control Service Dumping Peaks Strain Gauge on Draft Gear Pocket Measure Longitudinal Train Forces Control Service Loading Peaks & In Train Forces Page 15 Acoustic Bearing Detection The following bearing faults are detected: • Cone Faults • Roller Faults • Audible Wheel Flats • Cup Faults • Looseness / fretting • Noisy Wheel sets (flanging) Page 16 Video Imagining Technology • Flange Height • Flange Width • Vertical Flange • Hollowing Depth • Rim Thickness • Wheel Diameter Page 17 Video Imaging Reporting 1. Tabulated 2. Pictorial 3. Graphical Page 18 37 Traceable Components for each Ore Cars Page 19 Wheels Ultrasonic Testing Page 20 Train Driving Simulator Used To Define Driving Strategy & Training Needs Page 21 Aluminothermic / Flash Butt Page 22 In Track Flash Butt Welder Page 23 Rail KPI’s Broken Rails 69 64 62 56 49 37 36 34 29 27 25 23 4 '93 '94 '95 '96 '97 '98 '99 '00 Calendar Year Page 24 '01 '02 '03 '04 '05 April Best Practice R&D programme since 1970, combination of ‘in-house & Monash University It focuses on four main areas:• Rail / Wheel Interface • Higher Axle Load • Train Lengths / Cycle Time • Components Life Page 25 Higher Axle Load Operating Improvements Axle Load 40.2 tonnes 37.5 tonnes 35.0 tonnes 32.5 tonnes 28.5 tonnes 30.0 tonnes Wet tonnes per wagon 89 1970 Page 26 96 1974 107 116 Yandi 1986 1996 126 Yandi 99-04 Rail / Wheel Interface 1.9 Ore Car Wheel Life Million Tonne Kms 0.34 1980 2005 1,800 Rail Life (Tangent Track) Million Gross Tonnes 350 Page 27 1980 2005 Train Lengths / Cycle Time 312 208 180 Train Lengths Train Length 131 Cars per Train Cars / Train 1972 1984 1992 Current 40 36 Train Cycle Time 30 Hours Page 28 1972 1984 Current Environmental & Efficiency Contributing Factors 1.45 ¾ Rail / Wheel profile 0.68 Fuel Savings ¾ Aerodynamic Ore Cars ¾ Efficient Locomotives ¾ Distributed Power ¾ Higher Axle Load ¾ Longer Trains 1978 Page 29 2005 ¾ Driver Strategy What’s in the “Future” • Continued Safety Focus • 40 tonne axle loading • “Cruise Control” • Train Automation • Electric Brake Trials • Increased Tonnage (16 train schedule arrival based) Page 30
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