1. National Association of Steel Pipe Distributors 2010 Annual Convention February 26, 2010

2. Loading Pipe on Rail Safety Damage Innovations Problems Solutions

3. Center Beam Cars – Alternative Loads Too Many Centerbeams, Building Industry down How to better utilize the asset

4. Challenges for Alternative Products Specially designed cars for building products Load limit considerations Damage to equipment and future loadings Load/unload from two sides (tarps) Centerbeam and height of same cables

6. TESTING Railway Assn of Canada Impact tested – structural steel, small diameter pipe, rebar Field Testing – Limited amount account limited shipper interest BNSF/AAR VTU test procedures using pipe on Centerbeams

10. Based on AAR Testing Procedures, AAR Open Top Loading Rules Committee: - Approved Rigid Pipe of 12”, 16” and 24” - Did not Approve Smaller diameter “flexible” pipe - Got the opportunity to see Cord Strap perform under dynamic testing More to come.

11. Pipe Loads in Open Tops Using Non-Metallic Strapping Ductile Pipe with Cord Strap Coated Pipe under test

12. DUCTILE PIPE PERFORMANCE All Shippers - BNSF YEARCommodity Setout Incidence % 2002CASTING11.3 2003CASTING18.9 2004CASTING21.0 2005CASTING20.9 2006CASTING11.4 2007CASTING15.4 2008CASTING16.8

13. Ductile Pipe HISTORY – Band Failures

14. Examples of “Approved” Devices

15. Problem not resolved

16. So How do we solve this? Answer: John Blackman “Non-metallic strapping - Strength of steel with some Elasticity.”

17. Innovative J hook Polyester Strapping Doesn’t Crack/Break as easily Cost competitive Virtually eliminated Service Interruptions Safer to Use

20. CordStrap Performance Initially tested on over 100 loads – no strap breakage ACIPCO using since January 2009, less than 5 loads with broken straps ACIPCO Setout Incidence 1 st qtr 2009 – 2% Steel band ductile pipe shippers – 12.3%

21. PIPE IN GONS

24. Older Figures (pre-1960) Allows 12-inches of end clearance Standard Draft Gear Equipment Setout incidence up to 16% Impact Test to determine amount of load movement

25. Impact Test

26. Impact Test Conclusions Pipe moves more than 12 inches Repeated impacts, even at low speed will produce shift over end of cars Existing Figures need to be changed in-line with “reality”

27. Impact Test Conclusions A timeline has been established to incorporate changes to Figures October 2010 is the target date AAR TAG is working on the problem

28. Thank You