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Arizona Eastern Railway Helps Freeport-McMoRan Expand



Freeport-McMoRan, one of the largest producers of copper in the world, operates the Morenci copper mine and four other production sites throughout Arizona. The Morenci mine — located near Clifton, Arizona — has produced copper for over 100 years, while supporting several small communities in the area. Today, the company is writing a bright new chapter in their history — a testament to the possibilities that are realized when American businesses leverage the power of freight rail.

In recent years, the demand for copper has grown rapidly, particularly in China, where today more than 40 percent of the world’s copper is consumed. In order to help meet this demand, Freeport invested almost $2 billion into an expansion of their Morenci operations. One of the company’s largest priorities was improving the first step of the supply chain: carrying copper products from the Arizona mines to a transfer facility in Lordsburg, New Mexico.

Traditionally, Freeport had relied upon a small short line railroad, Arizona Eastern Railway (AZER), for this leg of the journey. However, over the years, underinvestment in the rail line had led to regular service interruptions as infrastructure fell into disrepair. In September 2011, AZER was purchased by G&W and immediately sat down with Freeport to discuss what the company needed from a freight rail partner.

Among the changes, the short line railroad reached out to others involved in Freeport’s supply chain, including Union Pacific. Together, the two companies collaborated to improve service schedules for Freeport. AZER also invested heavily in its infrastructure by replacing inadequate bridges, upgrading track and standardizing equipment.

One of the biggest changes was the railroad’s decision to replace a mix-and-match fleet of aging locomotives with a uniform fleet of modern engines. Before the change, Freeport struggled to plan their shipments since some locomotives could pull more than others, and packing the same commodity into different car types would add time and expense to the loading and unloading process. A uniform fleet has helped to streamline the loading and unloading process, reduce delivery times, increase efficiency, and increase safety throughout the network.

Today, thanks to this collaborative effort, Freeport has the safe, reliable and cost-effective rail service it needs to succeed. Today, the company is delivering American copper throughout the world, from Shanghai to Connecticut to Spain, while also delivering local economic benefits to communities in the state of Arizona.