1. ©Railinc 2010 All Rights Reserved 1 7001 Weston Parkway, Suite 200, Cary, NC 27513 –877.724.5462 -- www.railinc.com Damaged and Defective Car Tracking System (DDCT) ACACSO Meeting – Phoenix, AZ November 11th, 2010 Mark Aldenderfer – Railinc Chip Summey – Railinc

2. ©Railinc 2010 All Rights Reserved Agenda DDCT Mechanical Process Overview –Current Damaged/Defective Process –Damaged and Defective Car Tracking System Overview –How to Learn More and Get Ready DDCT Car Hire Changes –Car Hire Rules Affected –DDCT Interaction with LCS –Key Events in DDCT 2

3. ©Railinc 2010 All Rights Reserved DDCT MECHANICAL PROCESS OVERVIEW 3

4. ©Railinc 2010 All Rights Reserved DDCT Overview The Damaged and Defective Car Tracking System was requested jointly by ARB and EAC to serve as a centralized system to track damaged and defective cars under AAR Interchange rules and Car Hire rules Railroads, Car Owners and Shops will all be impacted 4

5. ©Railinc 2010 All Rights Reserved DDCT Status Update DDCT will Go-live January 2011 –Development is almost complete –The Industry is updating the Interchange and Car Hire Rules –The DDCT Technical Advisory Group is responsible for managing implementation efforts with the Railinc team 5

6. ©Railinc 2010 All Rights Reserved Damage is identified by the Handling Carrier Handling Carrier creates defect card Handling Carrier creates defect card Repair Shop Handling Carrier notifies Car Mark Owner Car Accounting determines car hire liability Car Accounting determines car hire liability Bill Sent to Owner Reclaim after the fact Current Damage Defective Process Manually places card on car Communication

7. ©Railinc 2010 All Rights Reserved Current Process – Defective Cars (Rule 1 & 108) Each field location makes the individual request to a centralized location within the railroad If railroad has their own automated system –Email notifies car owner to go in the railroad’s system to review the information and choose a shop for disposition –Car owner enters the information into the railroad’s system –Information is funneled back to the individual field location for proper disposition and handling within the railroad 7

8. ©Railinc 2010 All Rights Reserved Current Process – Defective Cars (Rule 1 & 108) cont. If the railroad does not have an automated system then the paper trail begins –An email or fax is sent to the car mark owner with defect information and a request for disposition –Car owner then has to respond back via email or fax with shop disposition –Railroad then has to funnel the information from the car owner back to the field location requesting disposition via email or fax Additionally for Rule 108 only –Add a JIC to the mix 8

9. ©Railinc 2010 All Rights Reserved Current Process – Damaged Cars (Rule 107) Field personnel notifies System Mechanical of a derailment and a request for DV via phone call, email or internal system An individual email or fax is sent to the car mark owner requesting DV and shop location if needed An email/fax is sent back from the car mark owner to the damaging carrier –This happens anywhere from almost immediately to the full allowance of the rule of 7 days (some take longer than that) 9

10. ©Railinc 2010 All Rights Reserved Current Process – Damaged Cars (Rule 107) cont. Damaging carrier has no set means to determine what an estimated DV for the car is to assist the field personnel at the site at that moment what the car may be worth –This is a best case/guess scenario based on history of similar car types. If the car is destroyed, an individual email/fax letter of authority is sent to the car mark owner This is all handled Monday – Friday between the business hours of 8am to 5pm –Evenings and weekends are a big black void 10

11. ©Railinc 2010 All Rights Reserved Current Process – Damaged Cars (Rule 107) cont. There are numerous functions that require manual participation for this to flow Phone calls generally occur during these transactions to try and speed up the process or gather information rapidly to assist the field in making determinations Many times the field locations are under the gun if the cost of the derailment comes close to the FRA thresholds and reporting requirements 11

12. ©Railinc 2010 All Rights Reserved Current Process – Defect Cards Railroad must create multiple copies of a Defect Card with an itemized list of the defects –Defect Card is then placed into the holder/receptacle on the car –Copy is kept at the location issuing the Defect Card –Copy is sent to Railroad’s System designee –Copy is sent to Chief Mechanical Officer or equivalent of the damaged car Paper tries to last four years - If a copy fails to make it to the car mark owner, their only hope is that the car makes it to shop and the card is still legible 12

13. ©Railinc 2010 All Rights Reserved Handling Carrier reports damage/defect to DDCT@Railinc Handling Carrier reports damage/defect to DDCT@Railinc Car moves as agreed to through DDCT process Repair Shop validated through DDCT Car Owner notified electronically DDCT updates Liability Continuity System (LCS) LCS applies car hire rules and determines car hire liability Bill Sent to Owner Damage is identified by the Handling Carrier New Damage Defective Process

14. ©Railinc 2010 All Rights Reserved DDCT Benefits 14 AccessibilityData QualityEfficiencySecurity

15. ©Railinc 2010 All Rights Reserved 15 Centralized source for incident tracking Increased visibility of damaged and defective cars Electronic Defect Cards Multiple methods available to access DDCT DDCT Web UI Web Service Request Mobile App Request Combination of any of the above Accessibility

16. ©Railinc 2010 All Rights Reserved 16 Standardized Process Data edits reduce errors and data conflict Integrates with other Railinc systems: Umler™, Industry Reference Files (IRFs), Event Repository Reduction in payable & receivable claims Historical records of the incidents and their resolution Data Quality

17. ©Railinc 2010 All Rights Reserved 17 Update incident information real-time Receive Estimated DV upon incident creation Automated car-hire process eliminates reclaims Elimination of installation and maintenance of defect card brackets Web services to integrate with the Railinc DDCT system Efficiency

18. ©Railinc 2010 All Rights Reserved 18 Single Sign On (SSO) Company specific permissions Role specific permissions Possession check Cannot create an incident without possession Estimated DV is accessible only when creating an incident Car Mark Owner is notified when EDV is requested Security

19. ©Railinc 2010 All Rights Reserved DDCT Railroad Functionality Railroads can Report and document damage Provide incident details Receive estimated depreciation for cars involved in an incident Request Actual DV & Dispo Handle settlements 19

20. ©Railinc 2010 All Rights Reserved DDCT Car Owner Functionality Car owners can Manage data on car condition, repairs and location Receive detailed information on damage to car Provide Actual DV and disposition Accept or reject settlement offers Make decisions about repairing or scrapping equipment 20

21. ©Railinc 2010 All Rights Reserved DDCT Shop Functionality Repair shops can Receive information on car arrival, condition and needed repairs Maintain an inventory of cars on site Update car owners on the status of repairs 21

22. ©Railinc 2010 All Rights Reserved Early Warning When DDCT Incidents are created, the cars are added to a Maintenance Advisory letter in the Early Warning System Each Rule number will have a dedicated MA letter number Cars are removed from the letter at the end of the incident lifecycle 22

23. ©Railinc 2010 All Rights Reserved Interchange Rules Impact Rule A & B Rule 1 Rule 71 Rule 95 Rule 102 Rule 103 Rule 107 23 Rule 108 Rule 111 Rule 112 Rule 113 Rule 114 New Rule 115 Appendix A Car Hire Rules Impact Rule 7Rule 8

24. ©Railinc 2010 All Rights Reserved Pricing Per car fee based on Stenciled Mark Ownership in Umler © Will be billed in February with Umler © 24

25. ©Railinc 2010 All Rights Reserved DDCT – Getting Ready Get up to date information from the DDCT website: www.railinc.com/ddct www.railinc.com/ddct Establish a Railinc Single Sign-On (SSO) account. Go to www.railinc.com for more informationwww.railinc.com Register in FindUs.Rail. This is required by industry regulations, Rule 114 Participate in training opportunities as they become available 25

26. ©Railinc 2010 All Rights Reserved Railinc Single Sign-On (SSO) Establish a Railinc Single Sign-On (SSO) account. Go to www.railinc.com for more informationwww.railinc.com This is required to access Railinc applications 26

27. ©Railinc 2010 All Rights Reserved FindUs.Rail Register at FindUs.Rail. This is required for DDCT by industry regulations 27

28. ©Railinc 2010 All Rights Reserved FindUs.Rail – RR and Car Owners 28 Required for car owners and railroads Available now

29. ©Railinc 2010 All Rights Reserved FindUs.Rail – Shops Required for shops Car owner cannot dispo a car to a shop that is not in FindUs. Rail 29

30. ©Railinc 2010 All Rights Reserved FindUs.Rail – Shops 30

31. ©Railinc 2010 All Rights Reserved FindUs.Rail Contact information is required for DDCT by industry regulations DDCT Category –Required for Car Owners & Railroads Shop Category –Required for Repair Shops –SPLC Required for each Shop location 31

32. ©Railinc 2010 All Rights Reserved Communication Efforts Railinc will provide information and training opportunities: –Meetings –Webinars –On-line demos –Circular letters, email notifications –User guides –FAQs Event dates/times are listed at www.railinc.com/ddctwww.railinc.com/ddct 32

33. ©Railinc 2010 All Rights Reserved Communication & Training Timeline October Webinars Demos Presentations End to End Testing Complete System Development November Webinars Demos Presentations Training with DDCT Test System December Webinars Demos Training with DDCT Test System DDCT Roles available in SSO Contact Industry to Start Requesting DDCT Permissions Lock Down Test System

34. ©Railinc 2010 All Rights Reserved Hands on Training Railinc will open the pre-production environment to the industry for Training purposes during 4 th quarter 2010 Interested parties please email csc@railinc.com stating desire to participate along with entering contact information into FindUs.Railcsc@railinc.com 34

35. ©Railinc 2010 All Rights Reserved www.railinc.com /ddct

36. ©Railinc 2010 All Rights Reserved

38. Webinars Car Owners and DDCT: –November 15, 2 PM (ET) –November 19, 11 AM (ET) Railroads and DDCT: –November 17, 3 PM (ET) –November 19, 2 PM (ET) Repair Shops and DDCT: –November 17, 11 AM (ET) –November 18, 3 PM (ET) DDCT Car Hire: –November 18, 11 AM (ET) –November 22, 3 PM (ET) 38

39. ©Railinc 2010 All Rights Reserved

40. Recap 40 Process Change January 2011 Electronic Defect Card Discontinue Use of Paper Defect Cards Car Hire Triggered by DDCT actions FindUs.Rail Registration Required Information www.railinc.com/ddct

41. ©Railinc 2010 All Rights Reserved CAR HIRE FOR DDCT 41

42. ©Railinc 2010 All Rights Reserved Car Hire Rules 7 and 8 On January 1, 2011, updated Car Hire Rules 7 and 8 for Damaged and Defective Car Tracking System (DDCT) System are effective The updated rules eliminate the need to create reclaims The rules indicate special road marks that will be used to show car hire with the equipment owner or that the equipment is to be dismantled –DSP7,DVR7,DSP8,SHP7,SHP8 and DEAD 42

43. ©Railinc 2010 All Rights Reserved Special Road marks Car Hire Rule 7 (107 Incident ) o DSP7 -- Equipment owner’s account Equipment interchanged to an intermediate carrier after DV/Disposition has been provided o DVR7 -- Equipment owner’s account DV/Disposition requested but equipment owner has not responded within the 15 day time limit 43

44. ©Railinc 2010 All Rights Reserved Special Road marks Cont. Car Hire Rule 7 (107 incident) o SHP7 -- Equipment owner’s account The equipment reported on-hand at a repair shop. This can occur by an interchange reported showing “SHOP” in the “to road” or the equipment is reported on-hand through DDCTS. o DEAD -- Equipment owner’s account The equipment owner decides to dismantle the equipment. All events after will be marked with LCS Code “X” for inactive. If the equipment was approved for dismantle, but the equipment was not dismantled and returned to service, please contact the Railinc Customer Support Center. 44

45. ©Railinc 2010 All Rights Reserved Special Road marks Cont. Car Hire Rule 8 (Incident 108 and 1) o DSP8 -- Equipment owner’s account Disposition requested o SHP8 -- Equipment owner’s account Equipment reported on-hand at a repair shop. This can occur by an interchange reported showing “SHOP” in the “to road” or the equipment is reported on-hand through DDCTS. o DEAD -- Equipment owner’s account The equipment owner decides to dismantle the equipment. All events after will be marked with LCS Code “X” for inactive. If the equipment was approved for dismantle, but the equipment was not dismantled and returned to service, please contact the Railinc Customer Support Center. 45

46. ©Railinc 2010 All Rights Reserved DDCT Interaction with LCS and ER When an incident is created in DDCT, a TRAIN10 message will be sent to the Event Repository (ER) The TRAIN10 message will flag the equipment to be evaluated by DDCT LCS and LCS will not be evaluating the equipment Once DDCT LCS is turned on, TRAIN10 messages sent to the ER from DDCT will be evaluated and GAP records will be created using the special road marks 46

47. ©Railinc 2010 All Rights Reserved LCS Messaging TRAIN61, TRAIN62, TRAIN63 and TRAIN69 messages will be created to show car hire in either a railroad’s account or the equipment owner’s account The DDCT special road marks will be sent in the “To Road” or “From Road” fields in the TRAIN message There has been no change to the format of the TRAIN messages 47

48. ©Railinc 2010 All Rights Reserved Key Events for 107 DescriptionFrom RoadTo Road Incident 107 createdN/A DV/Disposition requestedN/A 15 days hit since DV/Disposition requestedDamaging Carrier DVR7 DV/Disposition Provided after 15 daysDVR7Damaging Carrier Equipment interchanged after DV/Disposition Provided Intermediate Carrier DSP7 Offer acceptedDamaging Carrier DSP7 then to DEAD Equipment reported on hand at SHOPDamaging Carrier or DSP7 SHP7 48

49. ©Railinc 2010 All Rights Reserved Key Events for 1/108 49 DescriptionFrom RoadTo Road Incident CreatedN/A Disposition requestedHandling Carrier DSP8 Disposition providedN/A Equipment interchanged after DV/Disposition Provided Intermediate Carrier DSP8 Equipment on-hand at SHOPIntermediate Carrier or DSP8 SHP8 Equipment released from SHOPSHP8DSP8 Equipment marked as repairedSHP8Handling Carrier

50. ©Railinc 2010 All Rights Reserved Example: Incident 107 EVENT TSFROM MARKTO MARKLCS Code DESCRIPTION 20AUG2010:13:38:00.000000PAS V incident created 23AUG2010:11:30:00.000000PAS V DV_DIPSO requested 23AUG2010:12:30:00.000001PAS V DV_DISPO provided 23AUG2010:12:42:00.000000PASSTR interchange reported from DC 23AUG2010:12:43:00.000000STDSP7G 23AUG2010:13:30:00.005272DSP7SHP7G 23AUG2010:13:31:00.000000SHP7 V car reported on hand 23AUG2010:14:31:00.000001SHP7 V car reported repairs complete 50

51. ©Railinc 2010 All Rights Reserved Example: Incident 108 51 EVENT TSFROM MARKTO MARKLCS CODE DESCRIPTION 20AUG2010:11:56:00.000000MRL V incident created 23AUG2010:13:00:00.005272MRLDSP8G 23AUG2010:13:01:00.000000DSP8 V DV_DIPSO requested 23AUG2010:14:17:00.000000DSP8 V DV_DISPO provided 23AUG2010:15:09:00.005272DSP8MRLG 23AUG2010:15:10:00.000000MRLBNSFP interchange reported from HC 23AUG2010:15:11:00.000000BNSFDSP8G 23AUG2010:15:16:00.005273DSP8SHP8G 23AUG2010:15:17:00.000001SHP8 V car reported on hand 23AUG2010:16:17:00.000002SHP8 V car reported repairs complete

52. ©Railinc 2010 All Rights Reserved 52 Contact us: 1- 877-RAILINC csc@railinc.com Questions? 7001 Weston Parkway, Suite 200, Cary, NC 27513 –877.724.5462 -- www.railinc.com