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Intermodal Equipment Maintenance Current and Future State

5th Annual CCIB Intermodal Seminar October 5, 2011 - Tinley Park, Illinois

Barry D. Michaels – VP Intermodal Operations

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Agenda

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“Got Damage ? “

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Problem Statement

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Key Drivers of Performance - Inadequacies

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Maintenance and Repair Costs ($ Million)US Railroads

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Multiple Direct and Indirect PartiesComplex Relationships

Equipment – M&R

Customers CCM

AAR

M&R Vendors

Manufacturers

Motor Carriers

FMCSA Chassis Leasing Co

OTR Service M&R Vendors

Gate Inspection Co.’s IT M&R Co’s

Water Carriers

CCIB

Railroads Suppliers

Facility Operators

State DOT

OSHA

Cal BIT

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Intermodal Maintenance M&R Vendors – Contract Structure / Demands

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Damage – In Terminal – Outside Terminal “Who Done it?”

Technology has the ability to close the Information gaps and improve inspections to determine correct liability

Over the Road

In Terminal - Motor Carrier

Terminal Damage – RR

At Customers Facility

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Intermodal Maintenance Terminal Facility Impact - Process/Design/Resource

• Terminal Congestion

• Inspection Lane Design

• Track Side Parking

• Stacking - Chassis/Containers

• Roadability Repair Area

• Lighting

• Drive Lanes

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Intermodal MaintenanceInspection Process/Procedures/Policies

• Roadability/Loadability

• AGS Gates – Limitations

• Standard Gates – Human Error

• Damage vs. Defect Definitions

• FMCSA Motor Carrier Inspections

• IEP’s Policies/UIIA I/C Agreements

• Inspectors Qualifications

• Tire Inspections

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Gate Inspections: Manual Gates

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Gate Inspections: AGS Gates

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Motor Carrier – RailroadRelationships/Satisfaction

• Motor Carriers are the face of our customers

• IEP’s have leverage against MC’s to assess damage claims

• FMCSA Roadability requirements – Limited success

– Pre-Ingate Reporting

– Pre-Outgate use of Roadability Lanes

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Roadability Impacts to M&R – Chassis

• Success Limited(*)

– June 2010 to Sept 2011

– 2.8 mil Total Reports (**) - 45,194 RCD Reports = 1.6% Exceptions

– Outbound MC Pre-Inspections – Roadability Data Not Available

* Based on IANA Data

** DVIR No Defect Suspension by FMCSA

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Summary

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Future Solutions

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Questions?