Operation Management Case Study Brookfield

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2.0 About Brookfield
This section seeks to provide an overview of Brookfield’s operations, strategies, and finances.

2.1 Background Information
Brookfield owns and operates a globally diversified portfolio of infrastructure assets across the utilities, transport, energy, and communications sectors.

Brookfield is listed on the New York Stock Exchange (NYSE: BIP) and the Toronto Stock Exchange (TSE: BIP.UN), with a market capitalisation of c.A$15.7bn. Brookfield was formed through a spinoff by Brookfield Asset Management, which remains the group’s largest shareholder with a c.30% stake.

2.2 Operational Overview
2.2.1 Fund Mandate
Brookfield is a financial acquirer with a diversified investment portfolio of infrastructure assets in North …show more content…

Import market: freight is offloaded from a ship and transported to a warehouse
3. Domestic market: freight is transported from a production facility to a warehouse

A diagram illustrating the export/import value chain is attached in the appendix.

3.1.2 Rail Industry
Rail forms a key component of the transportation value chain, accounting for the greatest proportion of Australian freight volumes (48%), alongside road (35%), and coastal sea freight (17%). Approximately 90% of freight carried by rail in Australia is bulk freight, with the remaining being intermodal freight.

Rail networks typically consist of both publically and privately owned tracks, whereby private owners are typically infrastructure funds such as Brookfield. Train lines span across the continent, linking capital cities and branching out into regional networks in each state.

The rail industry can be divided into two distinct segments:
1. Below Rail: relates to the ownership of the physical rail tracks
a. Rail operators pay fees to access these tracks
b. Generate stable and certain cash flows
2. Above Rail: relates to the rail operators that control the locomotives that run across the tracks
a. Rail operators earn revenue by providing transportation services to

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