Car Hire Rule 1.B.2 Update Transportation Codes S, X or Y ACACSO Meeting May 7th, 2014 Patty Livingston Manager Fleet Administration Genesee & Wyoming Inc

Car Hire Rule 1.B.2 Background Cars restricted in interchange. CH Rule 1.B.2 was in conflict with UMLER Business Rules. CH Rule 1.B.2 – Previously stated that cars assigned Transportation Codes S, X, or Y will have a car hire rate of zero assigned in the system. UMLER Business Rules maintain the car hire rates with Transportation Codes/Transportation Condition Codes XB – XY and are not zero rated. EAC formed a TAG to review. 2

UMLER Transportation Code X and Condition Code: XA - AAR Overage XB - Air Brakes XC - Axles XD - Couplers and Coupler Parts XF - Coupler Yokes XG - Draft Gears XJ - Journal Bearings and Journal Lubrication XN - Trucks XP - Truck Side Frame XT - Truck Bolster XU - Tank Cars XW - Wheels XZ - Other Restriction Freight Cars Prohibited in Interchange

UMLER Transportation Code Y Y_ - FRA Interchange Restricted YA - FRA Overage (50 years or older)

Freight Cars Moving to Scrap Transportation Code S S_ - A condemned car or car destined for scrap or dismantling. SX - Car sold for scrap under AAR I/C Rule 88 and can never reenter rail service

Amended Car Hire Rule 1.B.2 Cars registered with a Transportation Code/Transportation Condition Code S_, SX, XA, XZ or YA are not eligible for car hire earnings and will be assigned a zero rate. 6

Business Rule Changes Table *If the S_ is removed, the rates that applied prior to assignment of the S_ should be restored. **For cars with XA assigned all existing rates should be set to zero. After the zero rate is applied, carriers may choose to negotiate a new bilateral rate and continue to use the cars. ***In the event that a car with XA assigned qualifies for extended life after the assignment of XA, the rates that applied before the assignment of the XA should be restored. S_* Condemned car SX AAR I/C Rule 88 XA*** AAR Overage XZ Other YA FRA 50 year Default RateZero Negotiated Rate Zero Bilateral RateZero **RateZero

Recap EAC approved the TAG recommendations to amend the wording of CHR1 and change the Business Rules for negotiated rates. Circular OT-10 Code of Car Service Rules/Code of Car Hire Rules was updated to reflect the new wording. Business Rules target date for programming changes is the second quarter of

QUESTIONS???? Interim period – How will the changes to negotiated rates be handled? How will you know what cars are now zero rated for the bilateral rates?