1. © 2007 Railinc. All rights reserved. The Railroad Clearinghouse Jim Pinson November 11, 2009 New Orleans, LA

2. Agenda Review –Process –Timeline Current Activity Level Future Plans Net Position Reports Negative Payables © 2007 Railinc. All rights reserved.

3. Review Process and Timeline © 2007 Railinc. All rights reserved.

4. Review - Process Detail records submitted electronically to Railinc through Car Hire Data Exchange (CHDX) CHDX Summary Records (Type 9) are used to determine the net car hire position of each participant Net-Net Position reports produced by Railinc © 2007 Railinc. All rights reserved.

5. Review - Timeline Monthly RCH processing: 19 th - CHDX details processed 20 th 10:00 AM – Net/Net Reports ready 21 st 11:30 AM– Payable funds due 21 st 2:00 PM – Disbursements due *RCH processing will occur on the next business day for any date which falls on a weekend or holiday © 2007 Railinc. All rights reserved.

6. Current Activity Level © 2007 Railinc. All rights reserved.

7. Current Activity Implementation: September 2008 Current Participants: –May 2009 463 –Current464 Average Amount Settled: –May 2009$45,000,000 –Current$42,000,000 © 2007 Railinc. All rights reserved.

8. Current Activity © 2007 Railinc. All rights reserved. Timing of Receipt of Payments Time ReceivedMay 2009Current By 11:30 71% 89% 11:30 to 5:30 22% 8% Next Day 6% 2% Second Day1% 1%

9. Future Plans © 2007 Railinc. All rights reserved.

10. Future Plans Include Payments to Private Car Owners on a Voluntary Basis –Railinc Programming will be Required –Carrier Programming may be Required –Car Owner Programming may be Required The Project will be a 2010 Railinc Internal Project © 2007 Railinc. All rights reserved.

11. Net Position Report © 2007 Railinc. All rights reserved.

12. Net Position Report Shows the net position relative to each business partner Shows the net/net amount due or payable Available by the 20 th of each month –Every month since implementation, the report has been ready and posted to the web site ahead of schedule © 2007 Railinc. All rights reserved.

13. Net Position Report © 2007 Railinc. All rights reserved. Railroad Clearinghouse Funds Transfer Report ABCD 0999 ABCD Railroad Rule 260PartnerCreditDebit Net 0001DEFG0.001,000.001,000.00 0111HIJK1,500.000.00(1,500.00) 0222LMNO2,000.000.00(2,000.00) 0333PQRS1,000.00500.00 (500.00) $ USD Dollars Total:4,500.001,500.00(3,000.00)

14. Negative Payable © 2007 Railinc. All rights reserved.

15. Negative Payable - Definition Normally a car hire report represents an amount due a car owner Reclaims, one-line deductions and other adjustments reduce the amount owed When deductions exceed payments, a negative payable report is created A process exists to control the size of negative payable reports © 2007 Railinc. All rights reserved.

16. Currently the only application available is CHDX

17. © 2007 Railinc. All rights reserved. Car Mark Owner SCAC – Standard Carrier Alpha Code used by the car mark owner. For example, NS, CSXT, UP, BNSF

18. © 2007 Railinc. All rights reserved. The system will handle Canadian and US Dollars. Most transactions are in US Dollars so the system defaults to USD

19. © 2007 Railinc. All rights reserved. The Global Threshold allows a car mark owner to set a threshold for all car users. The Global Threshold defaults to $0.00 – all negative payable amounts will be rejected.

20. © 2007 Railinc. All rights reserved. Last Updated By and Last Updated At provide information about who last updated the negative payable threshold information and when the update was made.

21. © 2007 Railinc. All rights reserved. SCAC of the equipment user

22. © 2007 Railinc. All rights reserved. Amount of threshold – This represents the amount of a negative payable report that will be included in the RCH settlement

23. © 2007 Railinc. All rights reserved. Effective Date – The first month the threshold will be applied. The date is always the 11 th of the month.

24. © 2007 Railinc. All rights reserved. Expiration date – The last month that the threshold will be applied. The date is always the 10 th.

25. Questions? © 2007 Railinc. All rights reserved.