Asciano Limited (ASX:AIO) is Australia's largest national rail freight and cargo port operator

Asciano Limited (ASX:AIO) is Australia's largest national rail freight and cargo port operator. The Company is now more than halfway through the five year plan set out in 2011. The company is focused on (1) Repairing the balance sheet as Asciano is coming to the end of its intensive asset renewal program. (2) Improve business operations including safety and customer engagement, and (3) Maintain substantial market share through sluggish growth in the economy. The free cash flow resulting from phase 1 will be used to drive a reduction in the company's 2.5x Debt/EBITDA leading to an increased payout ratio of 60-70%. AIO trades on a P/E of 15x with growth forecast at 15% (ie: PEG = 1). Although AIO is susceptible to container volumes and broad economic conditions, this valuation is not onerous.