Managing Shortline Equipment DemandDwell ACACSO November 2012 Ken

Managing Shortline Equipment Demand/Dwell ACACSO November 2012 Ken Jacobs, BNSF Railway 2/16/2022 1

Managing Shortline Equipment Demand/Dwell Agenda • BNSF’s Shortline Profile • BNSF – Shortline Community Partnership • Shortline Demand Management / Velocity / Dwell 2/16/2022 • Focus Areas • Best Practices • Dwell Methodology • Benefits 2

BNSF’s Network Total Miles BNSF’s Connecting Shortlines 19 K Miles Other Shortlines Handling Carriers BNSF 32 K Miles 3

Shortline Activity at BNSF 5

Four Expectations • • Take care of customers – excellent service Pursue business opportunities – growth Focus on velocity/efficiency – world class supply chain Invest – for safety, efficiency and growth 6

BNSF System Cars – Time Distribution 7

BNSF – Shortline Dwell Focus Areas BNSF - Service consistency - Want date performance Efficiency Shortline - Focus on asset utility - Enforce demurrage Customer 2/16/2022 Velocity Capacity Fluidity - Equipment Request Management - Loading flexibility 8

Ease of Doing Business – Best Practices Equipment Request Management • BNSF allows customer or shortline to submit equipment requests • Shortline provides valuable link with management of equipment requests • Policy / major inputs • • • Place accurate requests at least 7 days in advance Want Date – anticipated delivery date to shortline (not placement to customer) Modify or cancel Equipment Requests as business levels change Equipment Dwell Management • Utilize BNSF Shortline Velocity Tool to measure / manage / minimize dwell 2/16/2022 9

RER – EDO Interface 2/16/2022 10

Weekly summarized-view of all Orders 2/16/2022 11

Select specific Equipment 2/16/2022 12

Opens Calendar 2/16/2022 13

2/16/2022 14

Utilization and Capacity Improvements Benefits of Dwell Management • Creates additional capacity without capital investment • Reduced car hire liability to Shortline / BNSF • Increased order-fill • Improved profitability • More fluid operations • Increased customer satisfaction 2/16/2022 15

Shortline Dwell Measurement Measuring Dwell • Match up DD to RR • System / Foreign / TTX / Rail Controlled Pvt only • Exclude Offline Storage in Dwell • Capture and Exclude Early Dwell Box and Whisker chart 2/16/2022 • Box is middle 50% of distribution; line across box is the median. • Black diamond is the mean. • Blue line (right axis) is total car days. 16

Shortline Dwell Measurement All Shortlines Connecting with BNSF 2/16/2022 17

Dwell Accountability Suboptimal Preferred I/C Want DD date AP/CP RL Customer time = 5 days 10 days Key: 2/16/2022 I/C RR I/C DD = Want date AP/CP RL I/C RR Customer time = 2 days 6 days BNSF Shortline Customer 18

Shortline Dwell – Summary Dwell Improvement requires three party partnership Benefits of Dwell Improvement • Capacity • Car Hire • Profitability • Customer Satisfaction Shortline Customer BNSF Road-specific details can be developed upon request 19