1. What Happens to Private Railcars – Follow-Up to Savannah
Jim Pinson
ACACSO
May 11, 2017

2. Agenda Governing Rules Car Requests Movement for Loading
Switch Carrier Handling
Loaded Movement
Compensation Method

3. Agenda Determination of Liability Reporting and Settlement
Mileage Claims
Reclaims
Special Situations
Empty Handling
Tank Car Equalization

4. Governing Authority RIC 6007 O – Section 1 (Tank Cars)
Item 2.1: List of Participating Railroads
Item 180: Payment of Mileage
Item 182: Claim Handling
Item 187: Mileage Equalization
Item 190: Empty Car Handling
Item 195: Mileage Allowance Rates

5. Governing Authority RIC 6007 O – Section 2 (Not Tank Cars)
Item 605: Payment of Mileage
Item 606: Claim Handling
Item 610: Computation of Mileage
Item 615: Empty Car Handling
Item 620: Mileage Allowance Rates (Not LO)
Item 621: Mileage Allowance Rates (LO)

6. Governing Authority Link to the Tariff

7. Car Requests Usually the Lessee Controls Private Cars
Loading Authority Provided as Outlined in AAR Circular OT-5
Serving Carriers Move Cars to the Shipper Location as Requested by the Shipper
Equipment is Supplied by the Lessee

8. Car Requests Potential Issues
Car Supply – Responsibility of the Lessee
Car Quality – Responsibility of the Lessee
Availability/Storage
Sufficient Storage
Stored Cars may not be Readily Available for Placement
Cars in Transit

9. Movement for Loading Events Reported Via TRAIN II Critical For:
Tracing/Location
Determining Mileage for Car Mark Owner Compensation

10. Switch Carrier Handling
No Variation in the Physical Handling of the Cars
Car Hire Relief (Rule 5) is not Critical
Compensation is Based on Mileage not Time
RIC 6007 Does not Allow Reclaim for Switched Cars

11. Loaded Movement
No Variation in the Reporting of Car Movement Data through the TRAIN II System
Car Hire Relief (Rule 15) is not Critical
Compensation is Based on Mileage not Time
RIC 6007 Does not Allow Reclaim for Cars that Cannot be Interchanged

12. Compensation Methods No Variation in the Methods for Settling Revenue
Line Haul Division
Switching
Handling Carrier
Haulage

13. Determination of Car Hire Liability
Car Hire is Based on Loaded Mileage – There is no Time Component
Interchange Reporting is less Critical
Accurate Movement Event Reporting is More Critical
Mileage is Owed Based on Actual Miles Travelled
Accurate Event Reporting is Most Likely to Result in Accurate Mileage Data

14. Reporting Settlement
The Railroad Clearinghouse (RCH) is Available for Private Car Owners
Most Private Car Owners Choose to Settle Outside RCH
No Variation in the RCH Settlement Process for RCH Participants

15. Mileage Claims Processing
Mileage Claims Submitted for:
Additional Mileage Payments
Excess Empty Mileage Reports (Tank Cars)
Rate Variations

16. Mileage Claims Processing
RIC 6007-O, Items 182 & 606
Deductions Within 24 Months
Bills May be Rendered Within 24 Months
Bills Must be Paid Within 8 Months
Claims for Invalid Deductions Within 24 Months of the Deduction

17. Mileage Claims Processing
RIC 6007-O, Items 182 & 606
Format as Outlined in Circular OT-3 is Required
Claims Within 24 Months
Claim Responses Within 4 Months
Right of Continuance Every 4 Months

18. Mileage Claims Processing
The Format for Mileage Claims is Published in AAR Circular OT-3

19. Reclaims
Private Cars are not Subject to Reclaim

20. Special Situations Revenue Empties (CHR 4) Damaged Cars – (CHR 7)
No Relief on Private Cars
Damaged Cars – (CHR 7)
Defective Cars – (CHR 8)

21. Empty Handling RIC 6007, Items 190 & 615
Handle Per Controlling Entity Instructions
Reverse Route

22. Tank Car Mileage Equalization
Tank Car Mileage Equalization (TME) Applies only to Private Marked Tank Cars
Governed by RIC 6007-O, Item 187
Mileage is Reported via the Car Hire Data Exchange (CHDX)
Message Type 900
Identifies the Number of Miles to be Included in the TME Account

23. Tank Car Mileage Equalization
Year to Date Statements are Provided Monthly to Railroads and Car Mark Owners
Current Miles – Loaded & Empty
Adjustments – Loaded & Empty
Net Miles – Loaded & Empty
Projected Results

24. Tank Car Mileage Equalization
Review of Monthly Statement and CHDX may Result in TME Claims
Increase Loaded Miles
Decrease Empty Miles
Adjustment Can be Made via
CHDX Entries
Input Screen at Railinc (Summary Data – No Car Details)

25. Tank Car Mileage Equalization
On or After May 20, Account is Closed
May 20, 2017 the 2016 Account Will be Closed
Allows December Current and Voluntary Files to be Received and Processed
Allows Equalization Claims for December to be Filed

26. Tank Car Mileage Equalization
If Empty Miles Exceed Loaded Miles by More than 6%, An Equalization Bill is Issued
Payment is due 30 Days After Issuance
RIC 6007-O, Item 187
Unpaid Bills Result in:
1 ½% Monthly Interest
Mileage Payments Withheld

27. Questions?
Jim Pinson : Office : Cell