ACACSO November 12 Tempe Arizona OT5 What Is

ACACSO November 12 Tempe Arizona OT-5 What Is It?

ACACSO OT-5 What Is It? Circular Number OT-5 K n Circular is just another name for a document or publication intended to be given wide circulation n AAR publishes mechanical circulars and operations & transportation circulars (OT and TD) n OT circulars are numerically sequenced (currently 2 – 55 w/gaps) and suffixed with revision letter n Other ACACSO related circulars OT-10, OT-16, OT-26 n Current EAC Review

ACACSO OT-5 What Is It? OT-5 Covers 4 Areas n Assignment of reporting marks (All railcars) n Assignment of mechanical designations (All railcars) n Compliance of Freight Tariff 6007 to receive applicable mileage rates (Private equipment) n Application for loading authority (Private equipment) .

ACACSO OT-5 What Is It? Application for Loading Authority n Forgotten history of loading rights n LO-SAC / RR ICC Proceedings n Shippers wanted right to use their own equipment and to be fairly compensated for its use n Roads had congestion concerns and their own fleets to protect .

ACACSO OT-5 What Is It? Compromise n ICC (STB) gave shippers the right to acquire their own cars subject to: 1) Cars have to be safe 2) Shippers must have storage track n ICC gave roads the right to supply their own cars first n This ICC ruling, which created U. S. law, was set out in OT-5 n May have been added to existing OT-5, which would explain the somewhat unrelated Car Marks and Mech Desig sections

ACACSO OT-5 What Is It? Tank Cars Were Not Included Likely because: n The covered hopper was the car type of the original dispute n Roads never really had any tank cars so no need to carve out the right to supply it n Tank car compensation issue had already been worked out and ruled on by the ICC

ACACSO OT-5 What Is It? Why Have We Been Hearing More About OT-5 Lately n Private car fleets continue to grow and for several years now have outnumbered RR marked cars n Private cars were focused on by class 1 roads for car distribution efficiencies n In 2008 roads started to require shippers to register fleets n Shippers became irritated and EAC started an OT-5 review

ACACSO OT-5 What Is It? Recent Changes n OT-5 J of 1998 has been amended to OT-5 K effective Jan 1, 2009 n Tank cars are now included n OT-5 registration application is on the web n Registration process seems to be acceptable to shippers and class 1 roads have electronic data they can integrate into their distibution systems

ACACSO OT-5 What Is It? Final Thought n OT-5 is close to the equivalent of CSD 145 n CSD 145 allows a RR to put foreign RR marked cars into a pool for a shippers use – it gives loading authority n OT-5 does the same thing for private marked cars