1. 1 Security Perspective - Rail Stable workforce, well trained / closely supervised Larger railways have permanent security forces Professional Railway personnel and/or contracts Formalized partnerships with public policing Federal “peace officer” powers (CN, CPR) Minimum number of security incidents Railway Security measures in place as prescribed by MOU with TC Security

2. 2 RAC Mandate on Security Information sharing and coordination Liaise with government agencies (Canada and US including border issues) and AAR Public relations through speeches, presentations, press releases, web-site, etc. Promote voluntary approaches versus prescriptive regulation (e.g. MOU with TC) Industry training initiatives and best practices

3. 3 RAC Security Activities RAC is a member of AAR “Security Committee” RAC participates in Transport Canada’s Urban Transit Working group (con-calls, intelligence) RAC DG security training package to members RAC attends appropriate security conferences and disseminates information to members RAC monitoring US and Canadian legislative projects RAC has established Security WG reporting to SOMC

4. 4 Railroad Security Task Force Class I Response following September 11 AAR Board AAR Security Task Force Steering Committee Hazardous Materials Critical Action Team Operations Security Critical Action Team Infrastructure Critical Action Team IT & Communications Critical Action Team Military Liaison Critical Action Team More than 150 highly-experienced railroad, customer, and security personnel working since September 25th on 5 Critical Action Teams

5. 5 Alert Levels Level 1 -- New Normal day-to-day operations (appropriate operating countermeasures) Level 2 -- Heightened Security Awareness Level 3 -- Credible Threat of an attack on the US or railroad industry (continuously re- evaluated) Level 4 -- Confirmed Threat of attack against the railroad industry or actual attack in the US (implemented up to 72 hours and re- evaluated) Similar Alert levels in Canada on CN / CPR