EAC Update for ACACSO November 2012 George A

EAC Update for ACACSO November 2012 George A. Jones – Dir. Car Accounting and Disbursements CSX Transportation

Current Officers for EAC Ken Jacobs, BNSF – Chairperson George A. Jones, CSXT – Vice Chairperson Jim Pinson, Railinc - Secretary

EAC - Task Force’s Vision and Focus Car Hire Rules Car Hire Calculation Car Service Information Management and Data Quality Training

EAC Meeting Review EAC meeting in State College, PA – May 15 EAC meeting in Montreal, QC, - Sept. 12 Next EAC meeting in Cary, NC - Jan. 23, 2013 Scheduled EAC meeting in Atlanta, GA – Apr. 25, 2013

2012 Goals to Business Services Working Committee (BSWC) Present Car Accounting Training - Complete Review Appendix S to the Car Hire Rules - Underway Develop Improved Empty Routing - Underway Implement Improved CHDX edits – Underway Reduce Car Hire Processing Costs - Underway

2012 Goal Review Present Car Accounting Training Presentation Made at the April 2012 ASLRRA Convention The ASLRRA Requested Similar Training at the 2013 Convention ASLRRA Membership Surveyed Task Force Working to Select Topics

2012 Goal Review Appendix S – Appurtenance Rates The Car Hire Rules Task Force Reviewed Most Components of the Formula Further Review is Required. A TAG was Formed to Continue the Effort

2012 Goal Review Develop Improved Empty Routing The Opportunistic Car Supply TAG is discussing ways to improve the routing of empty returns.

2012 Goal Review Implement Improved CHDX edits The TAG has continued to work with Railinc. Full implementation is anticipated in November 2012.

2012 Goal Review Reduce Car Hire Processing Costs Centralization of CHR 4 reclaims – 2013 Project Centralization of CHR 22 reclaims – Under Review Car Hire Rule 15 – Complete - Railinc Developed LCS interchange type “K” to Mark the End of Rule 15 TOL transactions

Updates from September 2012 EAC Meeting in Montreal, QC DDCT/Rule 15 Enhancements have been complete at Railinc. Testing with Car Hire Calculation Task Force members is underway. Implementation is scheduled for January 2013.

Audit Reports EAC Requested that Railinc Audit TOL Records A Statistically Significant Sample will be Drawn Auditors will Confirm that TOL is Proper Auditors will Confirm that Switching was Assessed Effective January 1, 2013

CHDX Edits Reports from the CHDX Process have been Reviewed and Improved Several new Soft Edits have been Developed Implementation is scheduled for November 2012

Mileage Comparison Study Project Railinc Developed a Mileage Process to Support CEPM Process uses Track Network created by FRA based on Carrier Mileage Data Study Confirmed the Process will work for Car Accounting Carriers and Railinc Continue to Confirm the Process and Verify Results As Part of the 2013 Car Hire Liability File Expansion Project, Mileage will be Added to the File. Further Testing with the carriers that volunteered to participate in the study continues.

2013 Projects Car Hire Liability File Expansion § Add Cycles § Add CHARM Rates § Add Mileage Data Car Hire Negotiation Self Service § Improve Interface § Releases planned for December 2012 and June 2012 Car Hire Rule 4 Reclaim Centralization § Centralize the Identification and Calculation of Car Hire Rule 4 Relief Opportunistic Car Supply Study

Circular OT-8 Cancellation AAR Circular OT-8 Dealt with Reporting for Joint Industries The Circular was Published prior to LCS The Committee Determined that the Circular was out of Date Circular OT-8 was Cancelled in its Entirety

Review of Interchange Restricted Cars Car Hire Rule 1 Stated that Cars with S, X and Y Transportation Codes will be Zero Rated Umler Business Rules Zero Rate Cars that are Over Age and Destined for Scrap Other Situations Result in S, X and Y Transportation Codes A TAG will Review Transportation Codes S, X and Y Recommend Rule Changes if Appropriate

Editorial Changes to AAR Circulars OT-10 and OT-36 The committee unanimously approved editorial changes in AAR Circulars OT-10 and OT-36. The changes were made in the September 1, 2012 publication.

Review Appendix J to the Car Hire Rules The committee approved three changes to Appendix J to the Car Hire Rules to Provide Guidance on Issuing Rate Claims. 1) The existing claim form be titled, “Appendix J-1: Mandatory Time Claim Format” 2) The existing Appendix J-1 be retitled to Appendix J-2 3) A new Appendix J-3 be created to show a suggested format for car hire rate claims

Appendix J-3: Suggested Rate Claim Format Rate Claim for Month of 2012 -01 Issuing Road: Road Earned Month ABCD 201201 ABCD WXYZ To Road: Rate type XYZ 123456 Time - Empty 200 0. 350 0. 990 0. 640 128. 00 201201 XYZ 123456 Time - Loaded 150 0. 350 0. 990 0. 640 96. 00 ABCD 201201 XYZ 123456 Appt - Empty 200 0. 100 0. 200 0. 100 20. 00 ABCD 201201 XYZ 123456 Appt - Loaded 150 0. 100 0. 200 0. 100 15. 00 ABCD 201201 XYZ 123456 Mile - Empty 500 0. 040 0. 080 0. 040 20. 00 ABCD 201201 XYZ 123456 Mile - Loaded 200 0. 040 0. 080 0. 040 8. 00 ABCD 201201 XYZ 123490 Mile - Empty 450 0. 040 0. 100 0. 060 27. 00 ABCD 201201 XYZ 123490 Mile - Loaded 250 0. 040 0. 100 0. 060 15. 00 Car ID Total Claimed Against Road ABCD Paid Rate Expected Rate Difference ABCD Paid Units Amount Claimed 329. 00

Review of Appendix S Car Hire Rules Task Force Reviews Most Parts of Appendix S Formula Additional Review Needed Input from Reload Committee A TAG that Includes Reload Committee Representatives will Continue the Review of Appendix S The TAG will also Review Rule 22

Centralized Car Hire Proposal UP Docketed a Proposal the Centralized Car Hire be Reviewed A TAG will Review Centralized Car Hire and Recommend to the Committee Should another Effort to Centralize Car Hire be Undertaken in the Near Future If so, the TAG will Create a Roadmap for the Effort

New Proposals for EAC?