1. Defect Damaged Car Tracking System Robert Sanford Manager Car Accounting Norfolk Southern

2. Background  Joint Industry Project –Arbitration & Rules Committee (ARB) –Equipment Assets Committee (EAC)  ARB Goals –Moving toward paperless transactions –Enhanced tracking of damaged equipment  EAC Goals –Electronic repository for damaged equipment –Automation or elimination of Rule 7 & 8 reclaims

3. System Overview   DDTCS design includes: –Central repository –Audit logs and reports –Historical information –Ad hoc queries –Web based interface –Electronic messaging –Role based security –Electronic notices (ticklers)

4. Rule 107/ Rule 7 – DV   Car is damaged and an incident is entered into DDTCS: –Calculates estimated Depreciated Value (DV) –Car mark owner is notified of incident and estimated DV –Actual DV requested by damaging carrier After 15 days car hire is transferred to car mark owner's account via LCS message When DV is provided car hire is transferred to damaging carrier’s account via LCS message –Actual DV provided by car mark owner

5. Rule 107/ Rule 7 DV –Damaging carrier offers settlement –Car mark owner accepts settlement –Damaging carrier authorizes car mark owner to bill for settlement value Car hire liability ends via LCS message –UMLER updated to show car as destroyed –Incident closed by car mark owner

6. Rule 107/ Rule 7 Repair   Car is damaged and an incident is entered into DDTCS: –Owner is notified and a message sent to UMLER –Damaging carrier sends request for home shop disposition –Car moves to SHOP –Handling carrier reports delivery and SHOP reports receipt Car hire is transferred to car mark owner's account via LCS message –Car is repaired and returned to service Car hire is transferred to handling carrier’s account via LCS message –Incident is closed by car mark owner

7. Rule 108/ Rule 8 Owner’s Defect   A defect is discovered and is entered into DDTCS: –Handling carrier sends request for home shop disposition Car hire is transferred to car mark owner's account via LCS message –UMLER is updated with damaged status –Car moves to SHOP –Handling carrier reports delivery and SHOP reports receipt –Car is repaired and returned to service Car hire is transferred to handling carrier’s account via LCS –UMLER is updated to remove damaged status –Incident is closed by car mark owner

8. Next Steps –2010 Railinc Industry Project Expected completion in 2010 –Complete requirements, programming, and carrier testing –Complete user training –Approve and implement changes to Car Hire Rule 7 & 8

9. Questions ?