Company: BIP-PB
Filing Date: 2025-03-24
Form Type: 20-F
Source: 0001628280-25-014380
Chunk: 195

Company: Brookfield Infrastructure Partners L.P.
Filing Date: 2025-03-24
Form: 20-F
Item: Item 4
Chunk 195
---
 regimes.

Strategic Position

Our North American rail operation has global operations that span 43 U. S. states, five Canadian provinces, and together with the U. K. operation, serves approximately 3,000 customers. The business provides critical first and last mile rail services which connect large Class I railroad operators to their end customers. Our North American freight revenue is spread across numerous commodities, with the largest commodity making up approximately 17% of total freight revenue.

Our Australian rail network is the only freight rail network providing access to the region’s six State Government-owned ports for minerals and grain, as well as interstate intermodal terminals connecting Western Australia with national and global markets. The majority of our customers are leading commodity exporters with the top 10 customers contributing approximately 95% of the operations’ revenue, through long dated track access contracts with approximately 76% fixed revenue.

Our Brazilian rail operations span ten states and operate in five main corridors serving Brazil’s center-north, center-east and center-southeast regions, including important agricultural and industrial regions in the country. Main sources of revenue are derived from grains, sugar, fertilizer, industrial and steel sectors and are generated from a diversified customer base.

Regulatory Environment

In the United States, our rail operations are subject to regulation by the United States Surface Transportation Board (“ STB”), the Federal Railroad Administration (“ FRA”), other federal agencies, and some state and local regulatory agencies.

We also own rail operations in Canada and the U. K. which are both subject to regulation by their respective regulatory agencies, Transport Canada and Office of Rail Regulation (“ ORR”) respectively.

Brookfield Infrastructure 83

In Western Australia, the Economic Regulatory Authority (“ ERA”) is the independent economic regulator responsible for, amongst other things, the gas, electricity, water and rail industries. For the rail industry, a legislated access regime exists with the ERA determining Regulated Asset Base (“ RAB”) using a Depreciated Optimized Replacement Cost (“ DORC”) methodology. The ERA determines a revenue ceiling and floor by track segment for parties to negotiate within, the ceiling calculated based on a return on and of RAB and recovery of operating costs. Access seekers can elect whether to seek access under or outside the regulatory regime, with only one customer agreement currently subject to the access regime. Our Western Australian rail network operates on an open access basis consistent with the rail access regime and its lease obligations.

Our Brazilian rail concessions are governed by Brazil’s transportation regulator, Agência Nacional de Transportes Terrestres (“ AN