Railcar 101 The Basics of Railcars: Car Types, Components and Rules Maintenance and Shipment Management Importance to Assets Charlene Martinez

DTE Rail Services, Inc Maintenance Management Seminar Today’s Fleet Manager Has many tasks to juggle… Tracking Problem Resolution Auditing Manage your rail assets efficiently, and you improve your chances of focusing on your core business. Maintenance Administration May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

DTE Rail Services, Inc Maintenance Management Seminar Technology For help, many railroads, private car owners, shippers and receivers are turning to technology. Technology can facilitate utilization in Fleet Management. Today, there are many choices of Fleet Management tools. Knowing what to look for and what is right for is crucial when searching the options. May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

Railcar Asset Management Two main areas of asset management are: Shipment Management Managing Railcar Shipments Maintenance Management Managing Railcar Repairs May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

DTE Rail Services, Inc Maintenance Management Seminar Shipment Management Why should I track my fleet? You know when your loaded cars will get to destination You know when empties will arrive for re-loading You know what cars are in exception status You know what cars are experiencing delays Measure how many turns your cars are making You can be pro-active in problem resolution May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

DTE Rail Services, Inc Maintenance Management Seminar Shipment Management What technologies can I use to track my fleet? Use the railroad’s websites Use industry supported tools, such as Steelroads Utilize third party logistics companies to track your trains and cars for you on their tracking systems and you handle the problem resolution Outsource the entire process to a third party logistics company to handle not only tracking, but problem resolution and measurement May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

DTE Rail Services, Inc Maintenance Management Seminar Shipment Management Advantages of using the Railroad’s Website Disadvantages of using the Railroad’s Website No cost to you Most up-to-date reporting of cars current location as reported by the railroad the car is moving on Ability to show remaining schedule for movements on their line Only reports moves on their line Does not retain history Does not show a complete picture of shipment movements No ability to create management reports May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

Railroad Website Examples ShipCSX BNSF May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

DTE Rail Services, Inc Maintenance Management Seminar Shipment Management Advantages of using Steelroads Disadvantages of using Steelroads You have to run the process to get the car location information Does not retain your fleet information Does not keep historical CLM data for car movements Low cost May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

Steelroads - Track & Trace May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

DTE Rail Services, Inc Maintenance Management Seminar Shipment Management Advantages of 3rd Party Tracking Systems Disadvantages of 3rd Party tracking Systems 24/7 CLM information Complete CLM information for entire trip Retain history of CLM’s Have all your cars in one place Some 3rd Party system have the ability to track Unit Trains Ability to group cars Can be expensive Many choices with different levels of data integrity Can be labor intensive Training required May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

DTE Rail Services, Inc Maintenance Management Seminar Shipment Management Advantages of 3rd Party Tracking Systems & Problem Resolution Disadvantages of 3rd Party Tracking Systems & Problem Resolution Use the expertise of Transportation/Logistics specialist Use their relationships with the railroads to get problems solved Leaves you the time to focus on your core business Decrease knowledge of your plant operations Loss of autonomy May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

DTE Rail Services, Inc Maintenance Management Seminar May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

DTE Rail Services, Inc Maintenance Management Seminar May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

DTE Rail Services, Inc Maintenance Management Seminar May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

DTE Rail Services, Inc Maintenance Management Seminar Shipment Management How can I manage my fleet? Develop an exception reporting process to identify when trains are delayed and new ETA’s Actively push or expedite your delayed cars with the railroad’s customer service reps Maintain log of problem resolution communications Update plants and customers of ETA’s Be “proactive”, don’t let problems linger Create cycle time and average transit reports May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

Cycle Times and Average Transit Components of Cycle Time: Loading Time Load time in transit Unloading Time Empty time to return for unloading May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

Cycle Time Measurement Average Cycle Time - Overall by Fleet All Origin – Destinations May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

Cycle Time Measurement Average Cycle Time – By Segment Origin (Big Coal Mine) to Destination (Utility) May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

Tracking and Cycle Time What good is all this tracking? Service reviews with railroads Identify performance problem area Provide solid historical transit estimates for planning Document service guarantee failure or success For private car owners/lessees = more accurate fleet size requirements May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

Maintenance Management Why do I need a maintenance management system? Audit Repair Bills Receive repair bills from data exchange Highlight exceptions on the repair bills Submit Counter Bill Authority through data exchange View your EHMS windows Retain car repairs in history May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

Maintenance Management How can I maintain my assets? Use alerts and windows to shop cars for repairs under Predictive Maintenance Dispute charges for second repair resulting from an Unclosed EHMS Window Dispute charges for Exceptions on Car Repair Bills Run analytical reports on railcars, contract shops and railroads May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

Maintenance Management Mechanized Auditing Benefits: Consistency to ensure that all subscribers comply with AAR pricing procedures as dictated by the AAR/Railinc Pricing Program and Price Master File Data Exchange minimizes the need to manually enter BRC’s prior to internal audit Potential revenue recovery increase from improper billing charges Facilitates paperless Re-billing Extends the auditing capability to more types of audits with greater accuracy Allows automatic separation of data required by industry for analytical purposes to identify repairs where owner’s permission is needed May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

Maintenance Management Maintenance History Benefits Support decision to repair or scrap cars Support decisions to shop car(s) Provide a research databank to support technical and cost benefit studies Increase the flexibility of retrieving data for special studies May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

Maintenance Management System Considerations for designing a MM System Use of Railinc Data Exchange Procedures Method for identifying exceptions Retention of all repair detail Method to include machine generated exception letters Integration with other asset management systems May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

DTE Rail Services, Inc Maintenance Management Seminar May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

DTE Rail Services, Inc Maintenance Management Seminar May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar

DTE Rail Services, Inc Maintenance Management Seminar Conclusion Railcar fleets are expensive Through Proactive planning and management Costs can be planned for and budgeted Cars can experience higher utilization Emphasis on railcar ownership is changing Private companies will have to own or lease cars There are new rules in the industry, such as ATSI Effectively managed, the private car owner can get the most value from their investment in railcars May 21, 2008 DTE Rail Services, Inc Maintenance Management Seminar