It s All About ME A Life with GE Locomotives

Transcription

1 It s All About ME A Life with GE Locomotives HENRY POSNER III Chairman, Railroad Development Corp. LAKE SHORE RAILWAY HISTORICAL SOCIETY 61 st Annual Banquet April 8, 2017

2 AGENDA Background on RDC Overview Operations with GE Locomotives Conrail Argentina Guatemala Peru Mozambique Estonia Iowa Interstate Albany Colombia 2

3 Background on RDC Pittsburgh-based, privately held railway investment and management company Focus: Emerging Networks in Emerging Markets Financial structure based on Joint Ventures 3

4 RDC Investment Philosophy Consistent themes among investments: Lack of Operational Synergies Lack of Commercial Synergies Investor of Last Resort Focus on local partners 4

5 RDC Investment Overview CURRENT Country Entity Business Length Km (Miles) Employees Avg Annual Tons (in millions) USA Iowa Interstate Freight 954 (592) Peru Ferrocarril Central Andino Freight 535 (332) Hamburg-Köln-Express Intercity Passenger 450 (280) 25 Passengers Germany RDC AUTOZUG Sylt Auto Shuttle 40 (25) 60 Pssgrs/Autos BTE AutoReiseZug Overnight Auto 900 (560) 40 Pssgrs/Autos France RegioRail Freight various Belgium Eurorail Forwarder various UK Vivarail Passenger rolling stock N/A 30 N/A Colombia Ferrocarril del Pacifico Freight 196 (122) TBD Service restored Dec

6 RDC Investment Overview PAST Country Entity Business Length Km (Miles) Employees Tons Last Yr of Investment Malawi Central East African Rwys Freight 797 (495) (2008) Mozambique Nacala Corridor Freight/Port 873 (542) 404 Rail 209 Port 0.2 Rail (2008) 0.9 Port (2008) Estonia Eesti Raudtee Freight 693 (431) 2, (2006) Argentina ALL Central Freight 5,690 (3,535) 1, Argentina ALL Mesopotamica Freight 2,704 (1,680) Guatemala Ferrovias Guatemala Freight 322 (200) (2007) USA Steel City Flyer Bus Bus passengers 6

7 7 Conrail Oak Point

8 8 Conrail Oak Point

9 Argentina - FMGU Ferrocarril Mesopotamico General Urquiza Urquiza Railway privatized ,700-mile, single-track standard gauge regional railway Expropriated

10 10 Argentina - FMGU

11 11 Guatemala

12 Guatemala Ferrovias Guatemala 500-mile single-track narrow gauge mountain railroad connecting Guatemala City with Mexico, El Salvador and Atlantic & Pacific ports 1996 Abandoned by public sector 1999 Restored by private sector 2006 Lesivo declaration / indirect expropriation 2007 CAFTA claim filed / operations suspended Infrastructure stolen 2012 CAFTA arbitration award 2013 RDC paid $14.6 million 12

13 Guatemala 13

14 14 Guatemala

15 15 Guatemala

16 16 Guatemala

17 17 Peru

18 Peru Ferrocarril Central Andino 332-mile, single-track standard gauge Trans-Andean mountain railroad Central Railway privatized in 1999 Highest Railway in the Americas; 2 nd Highest in the World Recognized as a railway engineering marvel 18

19 Peru Used and rebuilt GE locos from Erie, PA! 19

20 20 Peru

21 21 Peru

22 22 Peru

23 23 Peru

24 24 Mozambique

25 Mozambique Nacala Railway and Port 542-mile, single-track narrow gauge railway network extending from Port of Nacala to landlocked Malawi Northern railway network privatized in 2005 Sold in

26 26 Mozambique

27 27 Mozambique

28 28 Mozambique

29 29 Estonia

30 Estonia Eesti Raudtee 431-mile, single-track broad gauge vertically-integrated railway handling freight but hosting 3 independent passenger operators. 66% of Eesti Raudtee s shares privatized in 2001 BRS consortium purchased 74 used GE C36-7i (ex-union Pacific) and C30-7Ai (ex-conrail) locomotives, replacing Soviet 2TE116 and M62 locos. Renationalized in 2007 after 5 years of private sector management. 30

31 31 Estonia

32 32 Estonia

33 33 Estonia

34 34 Estonia

35 35 Iowa Interstate Railroad

36 Iowa Interstate Railroad IAIS 600-mile, single-track standard gauge regional carrier operating the former Rock Island routes between Chicago and Omaha Abandoned as through route from ; recapitalized 1991, 1997, 2005, 2016 One of the few regional railroads that connects with every Class 1 railroad 100% owned by RDC from January purchased 12 new GE Evolution Series (ES44AC) additional GEs more GEs New loco workshop constructed in South Amana, IA to support new GEs 36

37 37 Iowa Interstate Railroad

38 38 Iowa Interstate Railroad

39 39 Iowa Interstate Railroad

40 40 Rescue of GE 3 rd Rail Locos in Albany

41 41 Colombia

42 Colombia Ferrocarril del Pacifico 122-mile single-track narrow gauge corridor between the port of Buenaventura and Palmira, just north of Cali. 42

43 43 Colombia

44 44 Colombia

45 45 Q & A

46 Thank You! Railroaders without Borders is a study of the Pittsburgh-based Railroad Development Corporation (RDC) and reveals how a small yet creatively led railroad investment and management company has functioned in diverse environments for more than 25 years. On a global scale RDC has resurrected a series of down-and-out, even defunct railroads. There have been disappointments, but there also have been triumphs. By: Prof. H. Roger Grant, Clemson University Bloomington Indiana University Press Fall