ACACSO – New Orleans, LA May 11, 2012 Lynn Brown LB Rail Consultant, Inc. 1

 What is a POOL?  How will cars be handled ◦ Cars not in a Pool ◦ Cars in a Pool  Car Service Rule 16  Different types of POOLS ◦ Pool Codes ◦ Who establishes and maintains a POOL ◦ How is a pool established and maintained  Is this important?  Car hire and Pools  Specific Pools 2

 POOL – A grouping of resources for the common advantage of the participants  The American Heritage College Dictionary  Railroad “POOL” ◦ A group of cars having the same characteristics, grouped for the benefit of a specific group or commodity  Specific customers  Specific locations  Specific loading requirements  By customer and/or locations  By specific commodity  Specific requirements  Contaminated Cars; Recall or equipment 3

 Benefits of having a POOL ◦ For the Customer  Helps maintain an even flow of equipment needed by the customer  Maintains specific and required equipment for the customer’s needs ◦ For the Railroad  Maintains equipment for the specific area or commodity  Utilization of equipment is maintained for specific loadings 4

 Code of Car Service Rules ◦ Rule 1 – Loading of Empty Cars  Loaded without regard of route or destination  Unless covered by a Car Service order or directive ◦ Rule 2 – Empty Foreign Cars Not Needed for Loading  Delivered to the home road  Forwarded to the road from which originally received under load  Returned to the delivering road  Stored  How does this affect pool cars if information is not maintained 5

 Better utilization of equipment maintained in a pool  Return of equipment is defined by the pool information  Code of Car Service Rules – Rule 16 ◦ Assessment Orders – Association of American Railroads  CSD 145 and CSD 435  Authority for assigned cars and movement of said cars  Assignment of equipment to a specific customer or National pool(s) ◦ Procedures of Assignment ◦ Handling of Empty Assigned Cars ◦ Designated Pool Reporter 6

 Pool Types or Pool Codes ◦ C – Equipment assigned to a specific shipper at a specific location ◦ G – Contaminated cars ◦ J – Equipment assigned to a agent ◦ N – Similar to the “C” Pool, except, the equipment is not assigned to a specific shipper or loading point (National Pools) ◦ O – Equipment assigned to Recall pools ◦ P – Pool comprised of equipment assigned to accommodate a specific commodity ◦ T – Pool comprised of equipment assigned to an agent 7

 Respective railroad carrier (or leasing company) ◦ Carrier/owner that is the destination of the equipment  Either the specific customer and location  The location of the specific loading requirements  Industry representatives ◦ National pools  Railinc  Trailer Train Corporation  Railinc maintains the file for pools ◦ Respective carriers and industry representatives maintains their respective pools  Updates, additions, deletion of cars, add/delete pools 8

 UMLER – Car Management section  Equipment Management Information System User Guide ◦ Create Pool Header  Pool ID  Valid seven-digit Pool ID  Position 1-3 – Pool Operator’s AAR Accounting Code  Railway Accounting Rules – Rule 260  Position 4-7 – Assigned by Pool Operator  Description  General description of the Pool  Loading Location  Actual shipper loading point or railroad holding point 9

 State/Province  Indicates the state or province where the pool is located  Operator 1 (up to 4 Operators)  Mark of the actual operator  Pool Maintenance Code  Pool Type  Type of railroad pool assignment  Pool is established 10

 Pool Identifier ◦ Position 1-3 of the Pool ID  Pool Code – Railroad pools - C, J, P, T, & G  Prefix of 001 through 997  Pool Operator’s AAR Accounting Code Railway Accounting Rules – Rule 260  Pool Code – Joint Pools – C, G, P, T  Prefix of 998  Pool Code – National Pools – N  Prefix of 999  Managed by Railinc  thru ; thru  Managed by Trailer Train Corporation  thru  Heavy duty cars, Reload, and Box Cars 11

 Pool Header is established – next step ◦ Add the equipment to the pool  Maintenance of the Pool ◦ Operator can add/delete equipment ◦ Operator car delete the pool (pool header)  All equipment must be deleted from the pool  Operators ◦ Railroads ◦ Leasing Company ◦ Industry (Railinc) ◦ Trailer Train Corporation 12

13 Source: Railinc, Equipment Management Information System User Guide

14 Source: Railinc, Equipment Management Information System User Guide

 Pool Codes ◦ Determining the correct pool code  Based on the code, equipment will be handled differently for empty return, car hire considerations  Maintenance of Pools ◦ Maintaining the cars within the pool  Assigned cars may not be handled correctly for empty return  Assigned cars not updated to the pool  Unassigned cars not removed from the pool  Car Hire considerations  Reclaims 15

 Car Payments to the Car Owner ◦ Full payment of car hire is due to the car owner under the applicable rules of the Code of Car Hire Rules  Reclaims ◦ Code of Car Hire Rules – Rule 22  Item B – Car Service Rule 16 – Assigned Cars  Assigned to a specific shipper or National customer pool  Date and Time of arrival at loading point to date and hour of placement for loading  Held in excess of 24 hours at a holding point short of the loading point 16

 When can a carrier reclaim on a car within a pool ◦ Determined by the Pool Type or Code  Code “C” – assigned to a specific customer at a specific location  Carrier that is the destination for the specific customer/location can reclaim against the owner of equipment not owned by said carrier  Code “N” – assigned to a National Pool  Only certain National Pool cars can be reclaimed  National pool cars maintained by Trailer Train Corporation normally can not be reclaimed  National pool cars maintained by Railinc normally can be reclaimed 17

 North American Boxcar Pool (NABP) ◦ Box cars pooled by several carriers ◦ Can not be reclaimed under agreement by the industry ◦ Maintained by Railinc  Multi-level Pooling Executive Committee (MPEC) ◦ Multi-level cars (automobile carriers) ◦ Can be reclaimed under Rule 22 ◦ Maintained by TTX 18

Questions 19  Lynn Brown  LB Rail Consultant, Inc. 