AAR Structure

ACACSO May 2009George A. Jones

The Association of American Railroads 4-08-09

America's freight railroads operate the safest, cleanest, healthiest, most efficient and most environmentally sound rail system in the world — and the Association of American Railroads is committed to keeping it that way.

AAR members include the major freight railroads in the United States, Canada and Mexico, as well as Amtrak.

AAR membership organization oversees a 140,000-mile rail network and sets new standards for innovation, safety and technology.

An important part of AAR's mission is to work with elected officials and leaders in Washington, D.C. on critical rail transportation issues to ensure that the railroads meet America’s transportation needs today and in the future.

What does the AAR Do?

Publish the Industry’s mechanical standards, interchange rules and tank car rules are

Provides a unified voice before Congress, the courts, government agencies and the media

Provides a leadership role in promoting railroad industry research and developing IT to improve service, efficiency and customer satisfaction

Since, 9/11, AAR also took on the role of advancing the security of the rail industry.— 24/7 operations center maintain communication

with federal security and intelligence organizations as well as individual operation centers of railroads.

AAR Members

Amtrak Anacostia Rail Holdings Co. Asociacion Mexicana de Ferrocarriles, A.C.BNSF Railway Company Canadian National Railway Co. Canadian Pacific Railway CSX CorporationFerromexGenesee & Wyoming Inc. Iowa Interstate Railroad Ltd. Kansas City Southern Metra Norfolk Southern Texas Mexican Railway Company Union Pacific Vermont Railway Wheeling & Lake Erie Railway

AAR Non-Class I Railroad Affiliate Members

ArcelorMittal-Cleveland Works Railway Co.Long Island Rail RoadMTA Metro-North RailroadNew Orleans & Gulf Coast RailwayNew York City TransitRoberval and Saguenay Railway CompanySidney and Lowe Railroad, LLC Transtar Inc.

GOLD MEMBERS

— Alstom Transport — American Railcar Industries, Inc. — Amsted Rail Group — Ansaldo STS USA, Inc. (formerly Union Switch & Signal Inc.) — Chicago Freight Car Leasing Co. — CIT Rail Resources — CRS Meishan Rolling Stock Company — Diamond Rail Lease Corporation — Electro-Motive Diesel, Inc. — Ellcon National Inc. — First Union Rail Corporation — FreightCar America, Inc. — GATX Rail — GE Railcar Services Corp. — The Greenbrier Companies — HDR Engineering — HNTB Corporation — Lockheed Martin Maritime Systems & Sensors — New York Air Brake Corporation — Pacer Stacktrain — Parsons Brinckerhoff — Progress Rail Services — RailWorks Corporation — Standard Car Truck Company — Standard Steel, LLC — The Timken Company — TranSystems Corporation — TrinityRail — TTX Corporation — Union Tank Car Company — Wabtec Corporation

SILVER MEMBERS

AIG Rail Services, Inc.

— American Railcar Leasing — Braid Logistics (North America) Inc. — CSR Yangtze Rolling Stock Co., Ltd — Entretien Ferroviaire (JMSR, Inc.) — GLNX Corporation — Herzog Contracting Corp. — Holland Company — Plasser American / Franz Plasser — Procor Limited — Qiqihar Railway Rolling Stock Co. Ltd (QRRS) — RailPower Hybrid Technologies Corp. — Reidler Decal Corporation — RESCAR Companies — Research Designs & Standards Organisation — RJ Corman Railroad Company — Road & Rail Services, Inc. — Salco Products, Inc. — Saskatchewan Grain Car Corporation — Savage Transportation Management — Science Applications International Corporation (SAIC) — SkyBitz Inc. — Sunrise MFG Inc. — TransCore — URS Corporation — Veolia Transportation — ZTR Control Systems

A Little History from Mike Particia

The AAR can be traced back to 1867 with the formation of the Master Car Builders Association to conduct experiments aimed at standardizing freight cars.

Officially came into existence Oct 12, 1934 by merging other rail associations (including);— Association of Railway Executives— American railway Association— Railway Accounting Officers Association— Bureau of Railway Economics

Franklin D. Roosevelt urged passage of Emergency Rail Transportation act in 1933 to help fight the Great Depression

Recognized single transportation system which was made up of large number of parts which were owned and managed separately.

American Association of Railroads

AAR

Railinc TTCI RRF

04-08-09 - Railinc

Railinc is the railroad industry’s most innovative and reliable resource for IT and information services.

They support business processes and provide business intelligence that help railroads and rail equipment owners increase productivity, achieve operational efficiencies and keep their assets moving.

Railinc is the industry’s largest and most accurate source for real-time interline rail data.

Railinc headquarters is located in Cary, N.C. in the heart of the Triangle area, between Raleigh and the internationally renowned Research Triangle Park.

AAR Key Committees

Network Efficiency Management Committee (NEMC)

Safety and Operations Management Committee (SOMC)

Policy Advocacy and Management Committee (PAMC)

AAR Committees - NEMC

Network efficiency Management Committee Customer Service Standing Committee EDI Work Committee Electronic Commerce Working Committee Equipment Assets Management Working Committee Information Technology Standing Committee Interline Revenue Management Working Committee Revenue Systems working committee Transborder Working Committee UMLER Working Committee Etc…

Network Efficiency Management Committee as of Dec 1, 2008

Network Efficiency

Management Committee

Customer Service

Standing Committee

Information TechnologyStanding

Committee(reports to SOMC & NEMC)

Electronic Commerce

Working Committee

Interline Revenue

ManagementWorking

Committee

InformationTechnologyAdvocacyCommittee

(In Collaboration with ASLRRA)

CustomerLocation

Task Force

Equipment Assets

Management Working

Committee

EDIWorking

Committee

UMLER Committee

RevenuePipeline

Working Committee

TransborderWorking

Committee

SouthboundAutomation

TAG

GovernmentRelations

TAG

TransparentBorders

TAG

STCC Task Force

Rail/Customs Task Force

Car Hire Settlement Via RCH

TAG

AAR Audit Process Review

TAG

Car Availability (RIWG)

TAG

Bad Order Destroyed Value

TAG

Special Car Order(SCO)-90

TAG

Automated Rule 4 Reclaims

TAG

OT Circular Letter Review

TAG

Circular Letter OT-5

Review TAG

Confiscated Cars TAG

Transportation Code “P”

TAG

Data integration TAG

Rule 22 Review

TAG

Liability Continuity TAG

Car Accounting Benchmark

TAG

AAR Committees - SOMC

Safety and Operations Management Committee AEI Task Force Arbitration and Rules Committee Braking Systems Committee Car Repair Billing Committee Interoperable Operations & Train Control Coupling Systems & Truck casting Committee Engineering Research Committee Environmental Affairs Committee Equipment Engineering Committee GIS Committee Grade Crossing & Trespass Prevention Committee HAZMAT (BOE) Committee

AAR Committees - SOMC

Safety and Operations Management Committee (continued) Heavy Axle Load Implementation Committee Intermodal Committee Intermodal Car Performance Subcommittee Intermodal Operations Subcommittee ISM Working Committee Locomotive Committee Committee on Locomotive Emissions and Energy Mechanical Research Committee Nuclear Waste Transportation Task Force Open Top Loading Rules Committee Quality Assurance Committee Railroad Security Working Committee Railway Electronics Task Force

AAR Committees - SOMC

Safety and Operations Management Committee (continued) Railway Technology Working Committee Risk Management Working Committee Signal and Train Control Task Force Specially Equipped Freight Car Committee Tar Car Committee Technical Services Working Committee Technology Scanning Working Committee Vehicle/Track Systems Research Committee Wheels, Axles, Bearing & Lubrication Committee Wireless Communication Task Force

AAR Committees - PAMC

Policy and Advocacy Management Committee Antitrust Working Committee Border Policy Committee Chief Legal Officers Communications Committee Economic Regulation working Committee Environmental Working Committee Safety Regulations working Committee Spectrum Legal Working Committee State Relations Policy Committee Tax Policy Working Committee Tort Matters Working Committee Truck Size and Weight Committee Washington Representatives

AAR Initiatives Information in this presentation was obtained from the AAR website April 2009.

Positive Train Control – PTC uses multiple systems designed to help prevent train collisions, enforce speed limits and improve safety. Railroads have invested more than $200 million researching and testing PTC systems. Railroads are aggressively working to meet federal implementation guidelines.

Advanced Technology Safety Initiative – This predictive, proactive maintenance system employs innovative technology designed to detect and report potential safety problems and poorly performing equipment. For example, ATSI alerts freight car owners to deteriorating wheel sets.

Grade Crossing Safety – The are approximately 140,000 public grade crossings in the United States. North America's railroads spend several hundred million dollars annually on crossing signal maintenance and safety-related educational programs. They are also founding sponsors of Operation Lifesaver, an international program devoted to ending collisions, fatalities and injuries at highway-rail grade crossings and rights-of-way.

Hazardous Material Transport – Rail is unquestionably the safest way to transport hazardous materials. The federal government requires railroads to move roughly 1.7 million carloads of hazardous cargo across America annually. Though 99.996 percent of this hazardous cargo reaches its destination safely, railroads are committed to transporting hazardous materials until safer chemical and technologies are used.

Railroad Fatigue Research and Countermeasures – Railroads have long partnered with their employees to gain a better understanding of fatigue-related issues and to find effective, innovative solutions to fatigue-related problems. This often includes educational efforts, adjustments to work schedules, sleep disorder screening programs and continued research

Railroad Research Foundation (RRF )

The Railroad Research Foundation (RRF) was incorporated as a Delaware nonprofit corporation on November 5, 1999.

The RRF was established to become a world-class policy research organization devoted to sustaining a safe, secure, technologically advanced and productive market-place driven railroad industry. RRF undertakes research and education activities in the public interest and for the public good.

Current research efforts to focus on safety, security, technology, efficiency and environmentally friendly passenger and freight rail operations. The RRF results are expected to improve safety, security, and infrastructure and advance the state of the art in a variety of areas including train control, wireless communications, suicide prevention, security and highway grade crossings. The systems and tools developed through RRF projects are intended to be interoperable throughout the railroad system, and wherever feasible will use non-proprietary open standards.

The RRF's current funding comes from the Federal Railroad Administration and Department of Homeland Security in the form of cooperative agreements. The RRF by virtue of its close relationship with AAR benefits from the Association of American Railroads (AAR) input that individuals from AAR member railroads provide RRF in connection with certain sponsored projects. RRF looks forward to securing private funding and donations to continue its work in the public interest.

Edward R. Hamberger serves as the Chairman of the Board of Directors, as well as RRF's President. The affairs of the RRF are managed by its six-member Board of Directors.

Leah and Dale at Shortline Trade Show 03-09-09

Summary

AAR plays a key role in representing the railroad industry

Significant historical background A lot of important activity takes place at the AAR

— Communication— Legal— Statistical— Technological Importance

Check out the AAR Website for more information (www.aar.org)

*Information in this presentation was obtained from the AAR and Railinc websites and Mike Partica’s 2004 AAR presentation.