© 2010 Railinc. All rights reserved. An Overview of AAR Committees May 13, 2010 Kansas City, MO Jim Pinson Railinc

© 2010 Railinc. All rights reserved. Agenda AAR Overview Terms used in AAR Structure Committee Structure –Subsidiaries –Headquarters –Senior Management Committees –SOMC –BSWC –EAC –PAMC

© 2010 Railinc. All rights reserved. AAR Regularly Works With the Following Department of Defense (DOD) Federal Highway Administration (FHWA) Transport Canada Transportation Safety Board of Canada Secretario de Communicaciones y Transportes (SCT – Mexico) Department of Homeland Security (DHS) Federal Railroad Administration (FRA) National Transportation Safety Board (NTSB) Pipeline and Hazardous Materials Safety Administration (PHMSA) Environmental Protection Agency (EPA) Department of Energy (DOE) Surface Transportation Board (STB) Federal Communication Commission (FCC) Federal Motor Carrier Safety Administration (FMCSA) Department of Justice (DOJ) Nuclear Regulatory Commission (NRC)

© 2010 Railinc. All rights reserved. AAR Mission and Vision AAR Mission –To add value to the North American railroad industry by fostering improved safety, security, service, efficiency and profitability through leadership and coordination on industry issues. AAR Vision –To be recognized by industry leaders and valued by public policy decision makers as the definitive voice of the North American rail industry.

© 2010 Railinc. All rights reserved. Senior Management Committees Report to the AAR Board of Directors Create and prioritize AAR’s agenda within their area of responsibility. Approve policies, standards, and projects that are in the best interest of the industry. Form and manage working committees and task forces to achieve AAR’s objectives. Review and approve the work product descriptions of working committees and task forces. Provide direction to working committees and task forces. Ensure that adequate and appropriate industry resources are allocated to working committees and task forces.

© 2010 Railinc. All rights reserved. Working Committees & Subordinate Committees Working Committees Report Directly to Management Committees Develop positions, standards, and data in support of AAR’s objectives. Ensure that the policies, standards, projects, and activities they engage in conform to the expectations of their parent committee. Coordinate efforts with other working committees and task forces.

© 2010 Railinc. All rights reserved. TAG vs. Task Force Technical Advisory Groups (TAG) are commissioned by and report to committees or task forces they exist to provide technical advice and guidance on a specific project or activity once the project is completed, the TAG will disband Task Forces (TF) are formed to progress segments of a working committees or subordinate committee docket items formation must be approved by AAR division head (e.g. Jeff Usher) can exist until dissolved by the chair or AAR division head

© 2010 Railinc. All rights reserved. Structure AAR Headquarters Washington, DC TTCI Pueblo, CO Research and Development Railinc Cary, NC Information Technology Safety, Operations and Advocacy

© 2010 Railinc. All rights reserved. Headquarters Structure AAR Headquarters (Staff of 69) Safety and Operation Policy and Economics Law Government Affairs Communications Administration and Finance

© 2010 Railinc. All rights reserved. Committee Structure Approved by the AAR Board AAR Board of Directors Safety and Operations Management Committee (SOMC) Policy and Advocacy Management Committee (PAMC) Railinc Board of Directors TTCI Board of Directors

© 2010 Railinc. All rights reserved. Safety and Operations Management Committee (SOMC) Provides overall authority for industry standards (interchange, safety, environmental, hazmat and communications and signal) and develops strategy and provides direction for new initiatives. Consists of Chief Operating Officers from AAR Member Roads Current Priorities –Interline Service Management –Interoperable Communications Strategy –Chicago Project –North American Joint PTC Project –Reducing stress and service state of the industry

© 2010 Railinc. All rights reserved. SOMC Subordinate Committees Technical Services Working Committee Responsible for matters relating to the physical assets of the railroad industry. –Open Top Loading Rules Committee –Quality Assurance Committee –Arbitration & Rules Committee –Equipment Engineering Committee –Wheels, Axles, Bearings & Lubrication Committee –Braking Systems –Specially Equipped Freight Car Committee –Car Repair Billing Committee –Locomotive Committee –Damage Prevention & Freight Claims –Intermodal Committee

© 2010 Railinc. All rights reserved. SOMC Subordinate Committees Risk Management Working Committee Responsible for reduction of environmental and safety risks of rail transportation. –Hazardous Materials Committee –Non-Accident Release Reduction Task Force –Environmental Affairs Committee –Tank Car Committee –Nuclear Waste Transportation Task Force –Grade Crossing & Trespass Prevention Committee –Committee on Locomotive Emissions & Energy –Railroad Geographic Information Systems Committee

© 2010 Railinc. All rights reserved. SOMC Subordinate Committees Business Services Working Committee (BSWC) –Key new committee supported by AAR and Railinc –Responsible for creating strategies that integrate business processes into quality services that deliver continuous improvements in customer satisfaction. –Consists of Committee Chairs for Customer Service, Equipment Assets, Railinc Project Support, Umler and Short Line Information Improvement Current Priorities –Customer Satisfaction –Equipment Asset Management –Interline Service Management –Interline Revenue Back-shop Improvements –Trans-border Initiatives

© 2010 Railinc. All rights reserved. BSWC Subordinate Committees Customer Service Committee –Addresses non-commercial, customer and customer support issues from an industry perspective Interline Revenue Committee –Manage data quality and promote business processes to permit accurate communication of price, billing, collection and settlement information between carriers participating in an interline move Trans-border Committee –Expedite movement of import/export traffic through the promotion of uniform process definitions and simplification of reporting requirements Electronic Commerce Committee –Facilitate the exchange of information among customers, transportation providers and partners using the best available technology

© 2010 Railinc. All rights reserved. BSWC Subordinate Committees EDI Committee –Provides an Information technology interface to the “user” community Equipment Assets Committee –Responsible for maximizing inter-railroad car utilization

© 2010 Railinc. All rights reserved. Equipment Assets Committee Mission: Maximize car utilization through management of and recommended changes in interpretations of the Car Hire Rules Task Forces: –Car Service – Deals with issues related to car service –Car Hire Rules – Deals with interpretation of and changes to car hire rules –Car Hire Calculation – Deals with car hire calculation improvements and efficiencies –Information Management & Data Quality – Deals with data quality issues –Vision and Focus – Assists the Committee by formulating goals and by providing longer term focus

© 2010 Railinc. All rights reserved. Policy and Advocacy Management Committee (PAMC) Consists of legal and policy representatives from AAR Member Roads Issues –Investment Tax Credit (S. 1125) –Clear Skies Initiative –Truck Size and Weight

© 2010 Railinc. All rights reserved. PAMC Subordinate Committees -Antitrust Working Committee -Border Policy Committee -Chief Legal Officers -Communications Committee -Economic Regulation Working Committee - Environmental Working Committee -Safety Regulation Working Committee -Spectrum Legal Working Committee -Tax Policy Working Committee -Tort Matters Working Committee -Truck Size and Weight Committee - Washington Representatives

© 2010 Railinc. All rights reserved. SOMC Organization Chart 1 MPEC and NABPEC set policy and operate procedurally in accordance with the ICC-approved pooling agreements under which they were established and continue to operate under authority transferred to the Surface Transportation Board (STB) as a result of the enactment of the ICC Termination Act. 2 The Committee on Compensation is prescribed in the April 16, 1986 Section Agreement and relates to procedures for the establishment and modification compensation for the use of freight cars and other transportation equipment furnished by shippers, and rules and regulations pertaining thereto. The dotted line connector represents an informational relationship.

© 2010 Railinc. All rights reserved. Questions? Contact Information: Jim Pinson Manager Car Hire Audits Railinc