© 2010 Railinc. All rights reserved. Industry Projects & Vision May 9, 2012 New Orleans, LA Jim Pinson Railinc

© 2010 Railinc. All rights reserved. Agenda Project Approval Process 2012 Project Status 2013 Project Process –Key Dates –EAC Projects Vision

© 2010 Railinc. All rights reserved. Project Approval Process Opportunities are Evaluated Continually –Committee Meetings –Association Meetings –Carrier/Car Owner Experience

© 2010 Railinc. All rights reserved. Project Approval Process Committees can Sponsor Projects if: – Value Results from the Development and –Development Costs Exceed $100,000 or –Significant Industry Resources Required

© 2010 Railinc. All rights reserved. Project Approval Process Opportunity Definition Document 1 –Submitted by Railinc in Partnership with the Sponsoring Committee –High Level Description of Issue(s) –High Level Description of Value Created Between January and March

© 2010 Railinc. All rights reserved. Project Approval Process Opportunity Definition Document 2 –Submitted by Railinc in Partnership with the Sponsoring Committee –More detail, including Rough order of Magnitude (ROM) estimate of project costs –Value detailed (still high level) Created Between April and May

© 2010 Railinc. All rights reserved. Project Approval Process Opportunity Definition Document and Business Case (final submission) –Submitted by Railinc in Partnership with the Sponsoring Committee –Captures industry-related costs and benefits at constituent level (railroad/car owner) –Includes risks and assumptions Created Between June and July

© 2010 Railinc. All rights reserved. Project Approval Process Railinc Project Support Working Committee (RPSWC) –Evaluates Industry Project Requests –Composed of Senior Management from Class I Carriers

© 2010 Railinc. All rights reserved. Project Approval Process Key Dates –April: Initial Review –June: Review of High Level Themes –August: Review of Complete Business Cases (ROI)

© 2010 Railinc. All rights reserved Project Status CHDX Edits –Implement Edits in the CHDX Process –Minimize Chances of Catastrophic Errors –Improve the Quality of CHDX data Contingent on Completion of 2011 Platform Upgrade

© 2010 Railinc. All rights reserved Project Status Platform Upgrade Implemented in March 2012 TAG Formed to Work with Railinc Preliminary Work is Underway at Railinc TAG Meetings will Begin in May Project Scheduled to End in November All CHDX Submitters will be Impacted

© 2010 Railinc. All rights reserved Project Status EAC Sponsored Seven Projects All Seven Passed the First RPSWC Review Railinc Is Working with EAC to Develop –High Level Themes –Business Cases

© 2010 Railinc. All rights reserved Project Status Project # 1 Car Hire Liability File (CHLF) Expansion –CHLF Currently Calculates the Hours Due To and From Users –The 2013 Project Requests the Addition of: Cycles CHARM Rates Miles (if available)

© 2010 Railinc. All rights reserved Project Status Project # 2 Car Hire Liability Message Precision Improvement –Requests the Addition of Seconds and Microseconds to LCS Messages –Will Require Changes to the Sizes of the TRAIN Messages

© 2010 Railinc. All rights reserved Project Status Project # 3 Car Hire Mileage Analysis & Pilot –Railinc Developed a Mileage Process to Support Component Tracking (CEPM) –Preliminary Work with UP and CN Indicate that the Process can be Adapted Successfully for Car Accounting –The Project Requests that the Analysis Process Continue and that a Pilot Program be Developed

© 2010 Railinc. All rights reserved Project Status Project # 4 Car Hire Negotiation Self Service –Requests Improvements to Bid & Offer and Market Report Processes

© 2010 Railinc. All rights reserved Project Status Project # 5 Car Hire Rule 4 Centralization –Requests that Creation and Processing of Rule 4 Relief be Centralized

© 2010 Railinc. All rights reserved Project Status Project # 6 Opportunistic Car Supply (OCS) Visibility –Requests a New Transportation Code to Assist Carriers in Creating Opportunities to Reload Assigned Cars

© 2010 Railinc. All rights reserved Project Status Project # 7 Congestion Avoidance Capability –Requests Tools to Assist Carriers Managing Congestion

© 2010 Railinc. All rights reserved. Vision Car Accounting –The Vision & Focus Task Force Will Recommend that EAC adopt Centralized Car Hire as an Industry Vision LCS & TOL Provides a Common Transaction CHLF Accurately Calculates Time Liability Most Reclaims Have been Eliminated (Rules 5, 7, 8, 15) Mileage Process Exists and Can be Adapted

© 2010 Railinc. All rights reserved. Vision Car Service –Most Railroad Marked Cars are in Assigned Service –High Load/Empty Mileage Ratios –Ideas are Being Discussed to Alter this Model

© 2010 Railinc. All rights reserved. Questions?