© Railinc 2009 All Rights Reserved 1 Railinc Corporation – 7001 Weston Parkway, Suite 200, Cary, NC – Report on Railinc’s Umler Implementation for ACACSO New Orleans, November 12, 2009 Alan McDonald Director, Asset Services ©Railinc 2009 All Rights Reserved

For those of you that are new: Umler is THE rail industry’s central equipment repository All equipment in interchange service is in Umler Mandatory; required by rules as statutes 1.9 Million units; over 250 million data elements Includes characteristics, ownership, inspections and handling instructions Communicates over 600,000 updates per month Facilitates shipment billing, interchange operations, car hire and car repair billing 2

© Railinc 2009 All Rights Reserved The data in Umler DIRECTLY affects car hire rates and equipment use Umler provides car distribution systems with the data that they need to assign cars to shipments Umler determines the Equipment Type and other parameters used in rate calculations Umler defines the lineage of cars so that original default rates are carried forward through leases and ownership changes Umler transportation codes dictate the poolability and reverse routing of equipment 3

© Railinc 2009 All Rights Reserved The Umler/EMIS project is a multi- year initiative to modernize Umler Rescue the system from it’s 1960’s prison Make it available to everyone Make it easy to use and easy to connect to Expand the data for today’s needs Make it flexible and adaptable Improve data accuracy 4 Legacy Umler Laptop Version

© Railinc 2009 All Rights Reserved August 31, 2009 The silence heard across the railroad industry: UMLER became Umler 5

© Railinc 2009 All Rights Reserved Brand-new state-of-the-art Umler Website is now in place Point and click interface Pull-down lists Lookups Extensive help Easy navigation Extensive editing 6

© Railinc 2009 All Rights Reserved Behind the scenes, much was happening Years of development comes to fruition 2 Million records transformed into new format Hundreds of thousands of test cases executed Over 900 equipment owners transferred Huge training and communications effort Massive data clean-up campaign 7

© Railinc 2009 All Rights Reserved Many data quality improvements introduced to ensure accurate data Equipment Type code is generated, not input More in-depth cross-element validation Eg. Tare + Load Limit Maximum Rail Load Clear error messages with remedies Frequent revalidation to identify latent problems Over 20,000 business rules in place and growing 8

© Railinc 2009 All Rights Reserved Data in error is not allowed on file Big change in concept from the old system To get a car on file, it has to pass muster No more “force it in and fix it later” 72 critical fields have to pass No more forcing bad information on the file. If you want to update the record, what you are updating has to be right. Suspending work and storing error notices 9

© Railinc 2009 All Rights Reserved All Umler records were scrutinized before and during conversion Over 20,000 business rules executed on each record Any latent errors in legacy data was identified Over 300,000 individual inconsistencies corrected Any remaining errors resulted in “conflicts” being generated. 10

© Railinc 2009 All Rights Reserved We’re almost there in having a 100% clean file – we need your help Starting at under 94% clean, with your help we’ve taken the file to 98.3% accuracy 525 companies have conflicts 25 companies make 80% of conflicts Key causes Missing data to generate ETC Lineage 11

© Railinc 2009 All Rights Reserved To keep the file clean, “conflicts” have consequences Conflicts occur when any illogical data exists on file Conflict aging “consequences” 30 days – Unit zero rated 90 days – Unit restricted in interchange 365 days – Unit subject to deletion from file Multiple “ticklers” before each step 12

© Railinc 2009 All Rights Reserved Don’t panic – no automatic zero rating has happened yet! AAR committees sponsored a moratorium on conflict again to allow for clean-up time No auto zero rating until January 1,

© Railinc 2009 All Rights Reserved Railinc is there to help you clean up the data Just logging on to Umler tells you if your equipment has conflicts Railinc is working with customers to get the data cleaned up Monthly reports are being sent to car owners Reports and queries are available on line Our CSC and Umler Support are there to help you 14

© Railinc 2009 All Rights Reserved Once again: January 1, 2010 the rules kick in Any cars with conflicts over 30 days will become zero rated Will take effect for February CHARM file Any cars with conflict over 90 days will IMMEDIATELY become restricted in interchange Get your conflicts cleaned-up! 15

© Railinc 2009 All Rights Reserved Full Disclosure: There have been a few burps and hiccups Ex-parte Sub 19 was not correctly applied Private cars coming back from railroad use did not get proper status TTX rate updates were not carried into CHARM Some grandfathered rates were not carried forward Some challenges still exist with status management Corrections have been made and reclaim letters have been issued with our apologies 16

© Railinc 2009 All Rights Reserved Post-production support in place to support you and your customers Dedicated direct connect via CSC Comprehensive training demos and documentation Real-time monitoring in place Real-time status reports on messages and web RAILINC

© Railinc 2009 All Rights Reserved 12 companies already cut-over Remaining on schedule for completion by year- end 18 CompanyDate GE9/12/2009 UTLX9/12/2009 RMI9/19/2009 CP9/19/2009 KCS/KCSM9/26/2009 GATX9/26/2009 Greenbrier10/10/2009 First Union10/10/2009 CN10/31/2009 BNSF11/7/2009 NS11/7/2009 TTX11/14/2009 UP/FXE11/21/2009 CSX12/5/2009 Wabtec12/11/2009 Minor users12/31/2009

© Railinc 2009 All Rights Reserved Umler’s positioned for game- changing growth More rigor in business rules to be added More information about equipment Improving both safety and efficieny Integration with CRB, EHMS and other systems One-stop shopping and Self service Access to Business Intelligence Automated reports Studies Trending 19

© Railinc 2009 All Rights Reserved …and introducing your new Umler guy: Jerry Traynham, Director Asset Services