1 ACACSO Nov 2009 Equipment Assets Committee (EAC) Task Force Structure and Update

2 Action items from EAMWC Meeting 188 (June 09) Allow Car Grade P to be removed by the economic car owner once the car has been cleaned in accordance with FDA guidelines and has been loaded in non-ruminant service. A vote was taken and this motion did not pass. Review of Embargo for Empty Cars – Motion was passed unanimously to amend Circular TD 1 to include “Traffic is defined as loaded and revenue empty freight cars, trailers and or containers. In the case of disasters the definition of “Traffic” can be expanded to include embargo of empty freight cars …”. A proposal was made that CSR 14 be amended so that scrap aluminum loaded in boxcars with steel floor does not result in assignment of car grade K. After discussion, it was decided that each carrier would review the issue internally to determine if scrap aluminum loading causes excessive or expensive cleaning. The issue will be discussed further at the February 2010 EAC meeting.

3 New Business 2010 Goals — The Business Services Working Committee (BSWC) has asked each subordinate committee to formulate measurable goals for 2010 that support the BSWC strategic goals New Chairman — Deby Murphy – UP – completed her term as Chair of the Equipment Assets Committee and passed the gavel to Tony DiDeo - CSXT

4 EAMWC Update SCO 90 – September 29,2009 release successfully implemented. LCS – Haulage changes including transmission of the LCS message type F successfully implemented on October 13, DDCTS – The TAG is working with Railinc to develop the business case to support 2010 development. Umler – The Web implementation was successful. Railinc is working with Umler users that connect directly to the system to implement the necessary connections by the end of 2009.

5 EAC Composition Two seats on the Equipment Assets Committee will be awarded to AAR Gold associate Members beginning in One of the seats will initially be elected for a one year team. In 2011 the expiring term will become a two year term. The second representative will be elected for a two year term. The initial one year term for one of the representatives will stagger the replacement of the representatives ands provide greater continuity to the committee.

6 Business Services Working Committee The Network Efficiency Management Committee (NEMC) was decommissioned. The Business Services Working Committee (BSWC) was created to assume some of the functions of NEMC. EAC will report to BSWC. BSWC will report to SOMC. BSWC is composed of the Chairmen of each of its subordinate committees. The current representative for EAC is Tony DiDeo CSXT.

7 Legislation The reregulation bill is currently in the Commerce Committee. As Part of the Surface Transportation Board (STB) reauthorization, the size of the Board may be expanded. The issues that the board is expected to handle may be expanded also.

8 Customs & Boarder Protection Mr. Rick Hobb – Railinc – gave a report on actions proposed by Customs & Border Protection (CBP). An exemption was granted in 1994 to regulations requiring all amounts of all commodities to be manifested when the cars cross the US border. CBP has advised of it intent to rescind this exemption. Cars with residue, currently considered empty, will be treated as loaded for border crossing. The Trans-border Working Committee (TWC) has been working with the American Chemistry Council (ACC) and the American Trucking Associations (ATA) to lessen the impact of the CPB decision.

9 EAC Organization Change AAR Board of Directors challenged it’s subordinate committees to review the entire committee structure. AAR committee handbook outlines the appropriate structure for the committees in order to accomplish the goals and objectives of the industry. When the review started, EAC had chartered 14 TAGS (technical advisory groups). To streamline the EAC organization and maintain focus on the issues of the industry, strategic task forces were formed at the June 2009 meeting.

10 EAC Organization Change Members attending the June 2009 meeting were asked to indicate the Task Force(s) on which they would most like to serve Based on the indications of interest in the Task Forces submitted at the June meeting, Task Force membership was assigned. Everyone got their first or second choice of Task Force. Task Force memberships were announced at the October 2009 meeting.

11 EAC Task Force Car Hire Calculation & Processing – George Jones CSXT, Chair Car Hire Rules – Craig Bicknell NS, Chair Car Service – Deby Murphy UP, Chair Information Mgt. & Data Quality – Joe McClure KCS, Chair Vision & Focus – Ken Jacobs BNSF, Chair

12 Car Hire Calculation & Processing – Task Force George A. Jones CSXT – Chair — Anthony Glover BNSF — Elan Neal GWRR — Keith Picker UP — Robert Samanica CN — Robert Sanford NS

13 Car Hire Calculation & Processing – Current Projects LCS Project – Current TAG assigned Settle Car Hire Payments via RCH (2010) Damaged & Defective Car Tracking (DDCTS) (2010) Use RAMP-ED to Automate CHR 4 Reclaims (Sunset) Tank Car Mileage Equalization Review (Sunset)

14 Car Hire Rules – Task Force Craig Bicknell NS, Chair — Dale Cassels CSXT — Joan O’Brien FURX — Chauncey Fallen GATX — Paul Suchecki CPRS No current projects assigned

15 Car Service – Task Force Deby Murphy UP, Chair — Tony DiDeo CSXT — Andy Fitzgerald NS — Ross Parbery CPRS — Harvey Worth GE

16 Car Service – Current Projects SCO 90 Project (TAG assigned through 2009) Circular OT-5 Review (TAG assigned through 2009) General OT Circular Review Car Grading Associated with Loading of Ruminant Commodities Service Integration Embargo Processing Review

17 Information Mgt. & Data Quality – Task Force Joe McClure KCS, Chair — David Bell RMI — Mike Carmichael TTX — Patrick Hurst Trinity — Luis Rivera KCSM — Gary Snyder GBRX CHDX Data Format (Sunset 10-09)

18 Vision & Focus – Task Force Ken Jacobs BNSF, Chair — Foon Chu CN — Garry Neumann Watco/ASLRRA — J.D. Pavek GBEX/RSI — Tony Rosa NS Key projects for EAC (new 10-09)

19 Technical Advisory Groups (TAG) Assigned by Task Force as needed Specific task Short duration of service Few people with technical knowledge of task Fact based recommendations Everyone has an opportunity to serve on a TAG Share work of the Task Force Improved efficiency and use of members time Focus on one issue Report back to Task Force

20 CoverageCoverage Improved EAC Structure All Projects will fall under one of the five Task Forces Each Task Force is a standing committee of experts in the area assigned Similar projects are assigned to the same Task Force so cross over is possible Projects are simultaneous Projects are assigned as needed TAGs will be used to address a specific issue and then be sunset when complete WorkloadWorkload EfficiencyEfficiency

21 Current Task Force Structure Tony DiDeo CSXT ChairEAC George Jones CSXT Jones CSXT Car Hire Calculation & Processing ProcessingCraig Bicknell NS Car Hire RulesDeby Murphy UP CarServiceJoe McClure McClureKCSInformation Mgt. & Mgt. & Data Quality Data QualityKen Jacobs BNSF Vision & Focus

22 Questions / Comments? Everyone has an opportunity and a responsibility to serve the Rail Industry that supports us.