Equipment Pools ACACSO New Orleans LA May 11

Equipment Pools ACACSO – New Orleans, LA May 11, 2012 Lynn Brown LB Rail Consultant, Inc. 1

Agenda � What is a POOL? � How will cars be handled ◦ Cars not in a Pool ◦ Cars in a Pool �Car Service Rule 16 � Different types of POOLS ◦ Pool Codes ◦ Who establishes and maintains a POOL ◦ How is a pool established and maintained �Is this important? � Car hire and Pools � Specific Pools 2

What is a POOL? � POOL – A grouping of resources for the common advantage of the participants �The American Heritage College Dictionary � Railroad “POOL” ◦ A group of cars having the same characteristics, grouped for the benefit of a specific group or commodity �Specific customers �Specific locations �Specific loading requirements �By customer and/or locations �By specific commodity �Specific requirements �Contaminated Cars; Recall or equipment 3

What is a POOL? � Benefits of having a POOL ◦ For the Customer �Helps maintain an even flow of equipment needed by the customer �Maintains specific and required equipment for the customer’s needs ◦ For the Railroad �Maintains equipment for the specific area or commodity �Utilization of equipment is maintained for specific loadings 4

How will cars be handled Cars not in a POOL � Code of Car Service Rules ◦ Rule 1 – Loading of Empty Cars �Loaded without regard of route or destination �Unless covered by a Car Service order or directive ◦ Rule 2 – Empty Foreign Cars Not Needed for Loading �Delivered to the home road �Forwarded to the road from which originally received under load �Returned to the delivering road �Stored � How does this affect pool cars if information is not maintained 5

How will cars be handled Cars in a POOL � Better utilization of equipment maintained in a pool � Return of equipment is defined by the pool information � Code of Car Service Rules – Rule 16 ◦ Assessment Orders – Association of American Railroads �CSD 145 and CSD 435 �Authority for assigned cars and movement of said cars �Assignment of equipment to a specific customer or National pool(s) ◦ Procedures of Assignment ◦ Handling of Empty Assigned Cars ◦ Designated Pool Reporter 6

Types of POOLs Pool Codes � Pool Types or Pool Codes ◦ C – Equipment assigned to a specific shipper at a specific location ◦ G – Contaminated cars ◦ J – Equipment assigned to a agent ◦ N – Similar to the “C” Pool, except, the equipment is not assigned to a specific shipper or loading point (National Pools) ◦ O – Equipment assigned to Recall pools ◦ P – Pool comprised of equipment assigned to accommodate a specific commodity ◦ T – Pool comprised of equipment assigned to an agent 7

Types of POOLs Who establishes and maintains a POOL � Respective railroad carrier (or leasing company) ◦ Carrier/owner that is the destination of the equipment �Either the specific customer and location �The location of the specific loading requirements � Industry representatives ◦ National pools �Railinc �Trailer Train Corporation � Railinc maintains the file for pools ◦ Respective carriers and industry representatives maintains their respective pools �Updates, additions, deletion of cars, add/delete pools 8

Types of POOLs How is a pool established and maintained � UMLER – Car Management section �Equipment Management Information System User Guide ◦ Create Pool Header �Pool ID �Valid seven-digit Pool ID �Position 1 -3 – Pool Operator’s AAR Accounting Code �Railway Accounting Rules – Rule 260 �Position 4 -7 – Assigned by Pool Operator �Description �General description of the Pool �Loading Location �Actual shipper loading point or railroad holding point 9

Types of POOLs How is a pool established and maintained �State/Province �Indicates the state or province where the pool is located �Operator 1 (up to 4 Operators) �Mark of the actual operator �Pool Maintenance Code �Pool Type �Type of railroad pool assignment � Pool is established 10

Types of POOLs How is a pool established and maintained � Pool Identifier ◦ Position 1 -3 of the Pool ID �Pool Code – Railroad pools - C, J, P, T, & G �Prefix of 001 through 997 �Pool Operator’s AAR Accounting Code Railway Accounting Rules – Rule 260 �Pool Code – Joint Pools – C, G, P, T �Prefix of 998 �Pool Code – National Pools – N �Prefix of 999 �Managed by Railinc � 9990001 thru 9990011; 9990700 thru 9999999 �Managed by Trailer Train Corporation � 9990012 thru 9990699 � Heavy duty cars, Reload, and Box Cars 11

Types of POOLs How is a pool established and maintained � Pool Header is established – next step ◦ Add the equipment to the pool � Maintenance of the Pool ◦ Operator can add/delete equipment ◦ Operator car delete the pool (pool header) �All equipment must be deleted from the pool � Operators ◦ ◦ Railroads Leasing Company Industry (Railinc) Trailer Train Corporation 12

Types of POOLs How is a pool established and maintained Source: Railinc, Equipment Management Information System User Guide 13

Types of POOLs How is a pool established and maintained Source: Railinc, Equipment Management Information System User Guide 14

Types of POOLs Is the pool information important? � Pool Codes ◦ Determining the correct pool code �Based on the code, equipment will be handled differently for empty return, car hire considerations � Maintenance of Pools ◦ Maintaining the cars within the pool �Assigned cars may not be handled correctly for empty return �Assigned cars not updated to the pool �Unassigned cars not removed from the pool �Car Hire considerations �Reclaims 15

Car Hire and Pools � Car Payments to the Car Owner ◦ Full payment of car hire is due to the car owner under the applicable rules of the Code of Car Hire Rules � Reclaims ◦ Code of Car Hire Rules – Rule 22 �Item B – Car Service Rule 16 – Assigned Cars �Assigned to a specific shipper or National customer pool �Date and Time of arrival at loading point to date and hour of placement for loading �Held in excess of 24 hours at a holding point short of the loading point 16

Car Hire and Pools � When pool can a carrier reclaim on a car within a ◦ Determined by the Pool Type or Code �Code “C” – assigned to a specific customer at a specific location �Carrier that is the destination for the specific customer/location can reclaim against the owner of equipment not owned by said carrier �Code “N” – assigned to a National Pool �Only certain National Pool cars can be reclaimed �National pool cars maintained by Trailer Train Corporation normally can not be reclaimed �National pool cars maintained by Railinc normally can be reclaimed 17

Car Hire and Pools Specific National Pools � North American Boxcar Pool (NABP) ◦ Box cars pooled by several carriers ◦ Can not be reclaimed under agreement by the industry ◦ Maintained by Railinc � Multi-level (MPEC) Pooling Executive Committee ◦ Multi-level cars (automobile carriers) ◦ Can be reclaimed under Rule 22 ◦ Maintained by TTX 18

Questions � � � Lynn Brown LB Rail Consultant, Inc. 801 -631 -8030 19