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0 SCO90 What it is? What it Does? How does it affect Car Hire? Lisa Gering November 10, 2010.

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Presentation on theme: "0 SCO90 What it is? What it Does? How does it affect Car Hire? Lisa Gering November 10, 2010."— Presentation transcript:

1 0 SCO90 What it is? What it Does? How does it affect Car Hire? Lisa Gering November 10, 2010

2 1 A big THANK YOU to Matt Cox Railinc Asset Utilization and Compensation and Todd Poland Watco Companies Director of Car Accounting and Fleet Management First Things First

3 2 What is Special Car Order 90? A special car order to efficiently move surplus, empty, rail cars to the home railroad where there is no direct connection between the handling railroad and the car owner Approved by the AAR, EAC, and SOMC Minimizes the time, car hire, and transportation costs involved in returning these cars to the railroad owners or controllers For railroad marked cars as well as private marked cars with a railroad in the UMLER Lessee field

4 3 Example for an MMA Box Car San Francisco * Bangor (MMA) UP NS CPRS *If the car started its loaded movement on the owner road or moved loaded via the owner; and upon unloading the holding road chooses not to reload the car, the car must move back in reverse of loaded shipment until it is on a direct connection of the car owner.

5 4 Example for an MMA Box Car Portland San Francisco * Bangor UP *Upon reloading this free running unassigned MMA Box Car will be assigned a Transportation Code = T and Transportation Condition Code = blank and is governed by SCO90 rules for empty return

6 5 Example for an MMA Box Car Portland San Francisco Jacksonville Bangor UP NS CSXT

7 6 Example for an MMA Box Car Petersburg Portland San Francisco Jacksonville Bangor CSXT

8 7 Example for an MMA Box Car Petersburg Portland San Francisco Jacksonville Bangor Equipment Mark Delivery Carrier Receiving CarrierOutlet City Outlet State MMACSXTCNCECILEPQ MMACSXTCNTOLEDOOH MMACSXTCPRSSELKIRKNY MMACSXTCPRSBUFFALONY CSXT From SCO90 Master Table on Railinc Website

9 8 Example for an MMA Box Car Petersburg Portland San Francisco Jacksonville Bangor (MMA) Selkirk (CPRS) SCO90 Outlet CSXT Equipment Mark Delivery Carrier Receiving CarrierOutlet City Outlet State MMACSXTCNCECILEPQ MMACSXTCNTOLEDOOH MMACSXTCPRSSELKIRKNY MMACSXTCPRSBUFFALONY From SCO90 Master Table on Railinc Website

10 9 Who Participates and Why Geography Delivering Carrier / Receiving Carrier / Both Sufficient Car Ownership Use of Transportation Codes and Condition Codes drives emtpy car movements Efficiencies in Empty Car Time and Miles are being realized

11 10 Transportation Code and Transportation Condition Codes To Identify Empty Cars Subject to SCO90 Rules T – free running unassigned car. Cars can be reloaded by any carrier in the SCO90 route home E – subject to CSD145 and CSD155 pool assignment that are reloaded by other than the pool assigned road. Generally can not be reloaded Codes added and removed in Umler on a daily basis

12 11 AAR Circular Number OT-10 (Circular TD-5) TC/TCC Can RR Load Car without owner permission? Empty Car On Indirect Connection Empty Car On Direct Connection Order ECNoSCO90 outlet. If no outlet reverse route To owner/car leasing railroad or reverse route if reverse route carrier is also direct connection. SCO90/CSD145, 155, 435 (Shipper Assigned) EGNoSame as above SCO90/CSD145, 435 (Contaminated Service) EJYesSame as above SCO90/CSD145 (Agents Pool) EPNoSame as above SCO90/CSD145, 155, 435 (Commodity Pool) ERNoSame as above SCO90/CSD145, 155, 435 (Agents Pool) TYesSame as above SCO90 TONoSame as above CSD175/SCO90 (Lease Termination TUYes, to or via home railroad Same as above CSD 150/SCO90 (Unassigned Car) Empty handling options for the various Transportation Codes / Transportation Condition Codes for railroad marked freight cars / railroad leased freight cars

13 12 TC / TCCDescription TGeneral service or unassigned railroad marked or privately marked cars with a railroad in the Lessee Field in Umler, boxcars, flat cars, and gondolas covered by SCO 90. TUSpecial equipped railroad marked or privately marked with a railroad in the Lessee Field in Umler, cars covered by the loading provisions of CSD 150 or 155 and subject to the empty handling provisions of SCO 90. TORailroad marked or privately marked with a railroad in the Lessee Field in Umler cars subject to the empty handling provisions of SCO 90 being returned home for lease termination or repairs. Also car is subject to the provisions of CSD 175. T: Transportation Code & Transportation Condition Code that are applicable when the owner was not in the last loaded route.

14 13 TC / TCCDescription ECA railroad marked car or the private car with a railroad in the Lessee Field in Umler assigned to a Shipper Pool under CSD 145 or 155 that has been reloaded by other than the pool assigned road and will return empty via SCO 90. Car assigned to a C pool. EGA railroad marked car or the private car with a railroad in the Lessee Field in Umler assigned to a Contaminated Commodity Pool under CSD 145 or 155 that has been reloaded by other than the pool assigned road and will return empty via SCO 90. Car assigned to a G pool. EJA railroad marked car or the private car with a railroad in the Lessee Field in Umler assigned to an Agent Pool under CSD 145 or 155 that has been reloaded by other than the pool assigned road and will return empty via SCO 90. Car assigned to a J pool. EPA railroad marked car or the private car with a railroad in the Lessee Field in Umler assigned to a Commodity Pool under CSD 145 or 155 that has been reloaded by other than the pool assigned road and will return empty via SCO 90. Car assigned to a P pool. ERA railroad marked car or the private car with a railroad in the Lessee Field in Umler assigned to an Agent Pool under CSD 145 or 155 that has been reloaded by other than the pool assigned road and will return empty via SCO 90. Car assigned to a T pool. E: Transportation Code & Transportation Condition Code that are applicable when car is reloaded by a railroad other than the Umler Pool assigned railroad.

15 14 TC/TCC Stats Average count in Umler per month Sep09 – Oct10 TC/TCCAverage T10,964 TO2 TU102 EC2,163 EG12 EJ188 EP2,988

16 15 SCO90 Quarterly Balancing Goal of flow balancing is to redistribute empty return flows based on loaded traffic patterns for return empty movements, save empty car miles and attempt to balance empty car movement costs across the North America rail system. TRAIN II data (TRAIN03/10 and TRAIN01/31 events) is used to capture the loaded movements and empty return flows of cars covered by SCO90 Actual car hire and transportation costs are used to assign debits and credits used in a Carrier Obligation Adjustment formula Reverse route cars are not included Reports on Railinc website

17 16 Debit / Credit Calculations for Balancing San Francisco Bangor (MMA) UP NS CPRS If UP does not reload car; no debits or credits will be applied.

18 17 Debit / Credit Calculations for Balancing San Francisco Bangor (MMA) UP NS CPRS If UP does reload car; CPRS and NS receive a loaded intermediate debit. UP receives a loaded junction destination (JD) debit

19 18 Debit / Credit Calculations for Balancing Portland San Francisco * Bangor UP UP gets a terminating credit (TC) equal to the inbound JD debit. No debit is calculated for UP’s online load to Portland

20 19 Debit / Credit Calculations for Balancing Portland San Francisco Jacksonville Bangor UP NS CSXT UP, NS, and CSXT would receive no loaded debits for routing to Jacksonville because the MMA car was loaded closer to the owner

21 20 Debit / Credit Calculations for Balancing Petersburg Portland San Francisco Jacksonville Bangor CSXT CSXT receives no loaded debits for local shipment to Petersburg

22 21 Debit / Credit Calculations for Balancing Petersburg Portland San Francisco Jacksonville Bangor (MMA) Selkirk (CPRS) SCO90 Outlet CSXT CSXT receives a origin junction (OJ) credit from Petersburg to Selkirk its SCO90 outlet. CPRS receives an empty intermediate credit.

23 SCO90 Automation Project Quarterly reports posted on Railinc website in SCO90 Application Obligation Adjustments Detail of Intermediate Traffic; Summary of Junction- Destination and Origin-Junction Traffic; Mileage Debits and Credits; Termination Credits; Utilization Credits; and Closer Credits Detail of Junction-Destination and Origin-Destination Traffic; Mileage Debits and Credits Utilization Credits; Termination Credits; and Closer Credits

24 SCO90 Automation Project Data Manager SCO90 Master Zero Mileage Pairs Joint Industry Pairs ECODE Exception Pool Numbers

25 24 Transportation Code D – SCO200 Railroad marked equipment that has never located on the car owner’s property Railroad marked equipment that has not been loaded on the railroad to which it is assigned Railroad marked equipment that has not been loaded on its leasing railroad Privately marked equipment prior to first load For empty handling refer to OT-10 Circular TD-5

26 25 Questions?


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