1. 4/12/2015 SW QLD Rail

2. 2 Increase Rail use? Cost Below Rail Above Rail

3. BELOW RAIL 3 Current – 1767mt payload – 3.5 cycles per week per train Productivity – Weight per train Axle loads Longer trains – Cycle times Train speeds Heat restrictions Cost – Access fees

4. ABOVE RAIL 4 Rollingstock – Locos – Wagons Loading / Unloading infrastructure – GrainCorp Project Regeneration

5. Industry Investment? 5 Where are the new wagons, locomotives and trials being brought into the industry?

6. Increasing rail use 6 Cost against road transport – Productivity Quality of track – Heat restrictions – Axle loads Above rail – New wagons – Loco capability – Longer trains – Reduce cycle times Project Regeneration - GrainCorp investment in outload capacity Line speeds Available passing loops

7. Last 50 years - Road transport

8. Last 50 years – rail locos Before After

9. 9 Eastern Australia’s inefficient rail Best Practice Eastern Australia Current Eastern Australia Western Australia Rail Transport Cost Curves (1) $/ Tonne Canadian National (1) Research and modeling by Partners in Performance For similar hauls, rail transport cost in eastern Australia is up to: $10pt higher than West Australia $20pt higher than Canada 1. Slow rail loading capability: Delay from loading Unreliability and cancellation Underloaded wagons & trains 2. Limited rail siding capability: Breaking trains over 2-3 sites Delays from shunting Grain prices are up to $10 pt lower due to inefficient rail Inefficient rail from slow rail loading & limited siding capability

10. Rail is losing volume to road Share of bulk export grain moved by rail has fallen from 90% to 50% This represents a modal shift from rail to road for 2Mt of export grain Supply chain is less effective with 2Mt export grain moved to road 1. Increased use of road limits the ability to move export grain: Reduce supply chain capacity Complexity reduces reliability 2. Increased use of road creates external and public costs: Road damage Safety and environment Road undermines effective supply chain capacity to service export 2Mt lost to road 10

11. 11 Rail Upgrade Network configuration Fast cycling ‘point to point’ long unit trains ‘Point to point’ short shuttle trains Network of 178 sites 68 Primary Sites 54 Major Sites 56 Flex Sites Load 40 wagons <5 hours Maximum of 1 shunt Export rail focused 1-2 Primary sites per Cluster Load ~20 wagons No shunting Domestic rail focused NSW based About Project Regeneration Transformation of the grain country network and rail over 3 years 68 Primary sites 44 Major Rail sites Simplified network with 34 Clusters Operating Model to Optimise Rail Grain growers to participate in higher grain prices (lower supply chain costs) at all sites Export rail, domestic rail and road outloaded grain to be flexibly swapped to ensure it is optimally positioned at a Primary within a cluster or port zone to maximise rail volumes ‘Export Direct’ bundled elevation and logistic service to move export grain Reduce rail cost by >$5 pt Improve network reliability Increase rail volumes by 1Mt Currently handle 70% of receivals + 80% of rail and exports Displace ~10% grain Fast elevation (>500 TPH) New storage to pre-position grain Extended rail siding Domestic short trains Export shuttle trains to Sub- terminals (transfer to long trains) Close ~100 sites Closed sites to be leased or sold 1 2 3