1. Car Hire Rule 5 and Car Hire Rule 15 Transfer of Liability © 2007 Railinc. All rights reserved.

2. Agenda Car Hire Rule 5 Application Car Hire Rule 5 Overview Car Hire Rule 5 TRAIN Messages –Reciprocal Switching –Intermediate Switching and Blocking Erroneous Transfer of Liability © 2007 Railinc. All rights reserved.

3. Agenda Car Hire Rule 15 Application Car Hire Rule 15 TRAIN messages © 2007 Railinc. All rights reserved.

4. Car Hire Rule 5 – Switching Recovery Car Hire Rule 5 applies when cars are: –Handled in reciprocal switch service –Handled in intermediate switch service –Handled for blocking under bilateral agreement © 2007 Railinc. All rights reserved.

5. Reciprocal Switch Service Relief is allowed for actual time in switch service – up to 120 hours (bilateral agreements can be made to extend or limit the maximum amount of relief) Relief is granted via Transfer of Liability © 2007 Railinc. All rights reserved.

6. Reciprocal Switch Service TRAIN 10 message is sent to Railinc by the switch carrier Interchange dates & times must match LCS If all edits are passed, Railinc issues a TRAIN 28 message to the car owner, the switch carrier and the line haul carrier © 2007 Railinc. All rights reserved.

7. Reciprocal Switch Service If all edits are passed, Railinc issues a TRAIN 28 message to the car owner, the switch carrier and the line haul carrier Car hire liability is transferred to the line haul carrier © 2007 Railinc. All rights reserved.

8. Reciprocal Switch Service If all edits are not passed, Railinc issues a TRAIN 58 message to the switch carrier Car hire is not transferred to the line haul carrier The switch carrier can correct and resubmit the message (within 30 days of the interchange event) © 2007 Railinc. All rights reserved.

9. Intermediate Switch Service TRAIN 10 message is sent to Railinc by the switch carrier Interchange dates & times must match LCS If all edits are passed, Railinc issues a TRAIN 28 message to the car owner, the switch carrier and the line haul carrier © 2007 Railinc. All rights reserved.

10. Intermediate Switch Service & Blocking Service If all edits are not passed, Railinc issues a TRAIN 58 message to the switch carrier Car hire is not transferred to the line haul carrier The switch carrier can correct and resubmit the message (within 30 days of the interchange event) © 2007 Railinc. All rights reserved.

11. Erroneous Transfer of Liability Special reclaims can be issued if: –A legitimate switching exception is taken –No switch charge or blocking charge is assessed (Per Appendix A, these charges can be assessed against a shipper) The rate reclaimed is the default rate © 2007 Railinc. All rights reserved.

12. Rule 15 – Cars Not Accepted When Offered Car Service Rule 7 sets forth conditions that must be complied with for the interchange of cars between connections. … when interchange cannot be accomplished … the receiving carrier shall be responsible to the car owner for the car hire … © 2007 Railinc. All rights reserved.

13. Rule 15 – Cars Not Accepted When Offered Car hire relief is protected through the Transfer of Liability (TOL) process Holding carrier transmits to Railinc a TRAIN 08 or TRAIN 10 (Type 82) message Railinc transmits to the receiving carrier a TRAIN 26 message © 2007 Railinc. All rights reserved.

14. Rule 15 – Cars Not Accepted When Offered The receiving carrier must respond to the TRAIN 26 message with a TRAIN 08 or a TRAIN 10 (Type 86 or Type 89) message –Class I carriers must respond within 6 hours –Non Class I carriers must respond within 12 hours –Failure to respond within the time limits means that the offer is accepted © 2007 Railinc. All rights reserved.

15. Rule 15 – Cars Not Accepted When Offered If the offer is accepted Railinc will send a TRAIN 28 Transfer of Liability message to the car owner, the delivering carrier and the receiving carrier. If the offer is not accepted Railinc will send a TRAIN 29 message to the delivering and receiving carriers. © 2007 Railinc. All rights reserved.

16. Rule 15 – Cars Not Accepted When Offered If a response is not received within the time limits Railinc will send a TRAIN 28 Transfer of Liability message to the car owner, the delivering carrier and the receiving carrier. © 2007 Railinc. All rights reserved.