Car Hire Rule 1.B.2 UpdateTransportation Codes S, X or Y

ACACSO Meeting

May 7th, 2014

Patty Livingston Manager Fleet Administration

Genesee & Wyoming Inc

Car Hire Rule 1.B.2Background

• Cars restricted in interchange.• CH Rule 1.B.2 was in conflict with UMLER Business Rules.• CH Rule 1.B.2 – Previously stated that cars assigned

Transportation Codes S, X, or Y will have a car hire rate of zero assigned in the system.

• UMLER Business Rules maintain the car hire rates with Transportation Codes/Transportation Condition Codes XB – XY and are not zero rated.

• EAC formed a TAG to review.2

UMLER Transportation Code X and Condition Code:XA - AAR Overage XB - Air BrakesXC - AxlesXD - Couplers and Coupler PartsXF - Coupler YokesXG - Draft GearsXJ - Journal Bearings and Journal LubricationXN - TrucksXP - Truck Side FrameXT - Truck BolsterXU - Tank CarsXW - WheelsXZ - Other Restriction

Freight Cars Prohibited in Interchange

Freight Cars Prohibited in Interchange

UMLER Transportation Code Y

Y_ - FRA Interchange RestrictedYA - FRA Overage (50 years or older)

Freight Cars Moving to Scrap

Transportation Code S

S_ - A condemned car or car destined for scrap or dismantling.SX - Car sold for scrap under AAR I/C Rule 88 and can never reenter rail service

Amended Car Hire Rule 1.B.2

• Cars registered with a Transportation Code/Transportation Condition Code S_, SX, XA, XZ or YA are not eligible for car hire earnings and will be assigned a zero rate.

6

Business Rule ChangesTable

*If the S_ is removed, the rates that applied prior to assignment of the S_ should be restored.

**For cars with XA assigned all existing rates should be set to zero. After the zero rate is applied, carriers may choose to negotiate a new bilateral rate and continue to use the cars.

***In the event that a car with XA assigned qualifies for extended life after the assignment of XA, the rates that applied before the assignment of the XA should be restored.

S_*

Condemned car

SX

AAR I/C Rule 88

XA***

AAR Overage

XZ

Other

YA

FRA 50 year

Default Rate Zero Zero Zero Zero Zero

Negotiated Rate

Zero Zero Zero Zero Zero

Bilateral Rate Zero Zero **Rate Zero Zero

Recap

• EAC approved the TAG recommendations to amend the wording of CHR1 and change the Business Rules for negotiated rates.

• Circular OT-10 Code of Car Service Rules/Code of Car Hire Rules was updated to reflect the new wording. https://www.railinc.com/rportal/alf_docs/Circulars/OT-10.pdf.

• Business Rules target date for programming changes is the second quarter of 2014. https://www.railinc.com/rportal/alf_docs/CHRNSS/Deprescription_BusinessRules.pdf

QUESTIONS????

• Interim period – How will the changes to negotiated rates be handled?

• How will you know what cars are now zero rated for the bilateral rates?