EAC Update for ACACSO – Nov 2014 George A. Jones, CPA CMA – Dir. Car Accounting and Disbursements CSX Transportation November 2014

EAC - Task Forces and Chairs O Vision and Focus – Vacant O Car Hire Rate Process & Procedures – Craig Bicknell, NS O Car Hire Calculation – Elan Neal, GNWR O Car Service - Ken Jacobs, BNSF O Information Management and Data Quality – Joe McClure, KCS O Training – Todd Poland, Watco

EAC TAGs O Multi-Level – Paddy O’Neill, NS O Centralized Car Hire Processing – Keith Picker, UP O Rule 22 Automation – Robert Sanford, NS O EOT Automation O LCS Mainframe Migration O SCO 90 Mainframe Migration

EAC meetings held and scheduled O EAC Meeting Held – October 22, 2014 in Omaha hosted by Union Pacific O EAC Conf. Call Scheduled – January 21, 2015 O EAC Meeting Scheduled – April 15, 2015 in Atlanta hosted by Norfolk Southern

TAG and Task Force meetings were held before and after the EAC meeting O The following face to face meetings were held to take advantage of the opportunities to advance the goals of the EAC. O CCH TAG – Before O Rule 22 Automation – Before O Training - After O We saw major advantages to the live meetings with little additional travel and cost burden on our participants.

EAC Goals for 2015 O Continue to improve asset utilization to gain maximum car loads and improve fluidity with the industry fleet. O Define and improve business rules to support centralized Rule 22 processing to maximize efficiency and reduce redundant railroad processing O Continue to evaluate and implement the road map toward centralized car hire processing. O Support railroad industry for car service and car hire training promoting efficient operations and improved data flow for railroad equipment. O Increase compliance with OT-5 requirements to request loading authority for privately owned cars.

2014 projects sponsored by the EAC – in progress O Centralized Car Hire Foundation (User Support) O Development began February 2014 O In iteration 11 of 12 O Release is scheduled for the week of 11/17 O Deliverables include O Rule 5 TOL error correction process O Mileage information O Convert CHLF to 1400 byte CHDX format

2014 projects sponsored by the EAC – in progress O EDI Upgrade O Development began in April 2014 O In iteration 6 of 8 O Release is scheduled for the week of 11/17 O Deliverables include O Optimization of the User Interface – Allow up to 10,000 cars within a bid/offer O Streamline notifications

Industry Projects for 2015 O Centralization and automation of Car Hire Rule 22. O Task has been assigned to a TAG. O RPSWC approved the project contingent on approval of revisions to Rule 22 O Development is scheduled to begin in June 2015 and end in June 2016.

Rule 22 Centralization O Robert Sanford; Director Revenue Accounting, NS – Chair has a presentation on the Rule 22 business rules and will provide an update on Tuesday.

Appendix S Review O Electronic ballot to change amortization to a level method was distributed July 11, 2014 O The motion did not pass. The existing declining amortization calculation will be used in the formula to calculate the appurtenance rates for Appendix S. O A TAG was formed for further review.

New Proposals/Ideas for EAC?