Mike Partica Nov, 2004 Fort Lauderdale, FL

1. Mike Partica Nov, 2004 Fort Lauderdale, FL

2. Agenda History Background Organization Committees Wrap-up

3. History 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.

4. History (continued) The Federal Coordinator of Transportation asked roads to form one organization to represent the roads since there were too many different parties trying to represent industry. Part of the objective was to protect and advance railroad industry Changes in the last 70 years 5 times more rail freight traffic 60% less route miles 80% less employees in the industry Today 40% of all US freight moves by rail. More than any of single mode of transportation

5. Background Major Freight railroads in the United States, Canada, Mexico Members account for 77% of U.S. freight route miles 92% of industry workers 94% of freight revenues

6. 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.

7. AAR Departments President’s Office Administration & Finance Communications Government Affairs Law Department Policy and Economics Safety and Operations Railinc (wholly-owned subsidiary) Transportation Technology Center Inc (wholly-owned subsidiary)

8. AAR Departments President’s Office President – Industry chief spokesman, AAR budget Administration & Finance Determines Dues assessments, manage AAR funds, personnel policies, AAR property Communications Works with members in developing public information (ie: newspapers, publications, etc) manages AAR conference center Government Affairs Promotes legislative agenda establish by the AAR Board of directors. Follows legislation in the house of representatives and the senate.

9. AAR Departments Law Department Provides legal advice and counsel to AAR board of directors, industry committees and other departments. Representation at the STB, FRA, other federal agencies and courts. Works with Government Affairs Department for legislative programs. Policy and Economics Works with other departments and members to develop Industry positions on public policy issues. Provides testimony to courts and other agencies. Prepares quarterly forecasts and statistical reports regarding the operations of U.S. railroads. Safety and Operations Oversees the industry’s interchange standards, car hire and car service rules. Customer issues, safety issues, etc. Works with SOMC and NEMC and their subcommittees. Interfaces with DOT, FCC, EPA, NTSB, STB, etc. Railinc (wholly-owned subsidiary) Transportation Technology Center Inc (wholly-owned subsidiary)

10. AAR Departments - Railinc Railinc (wholly-owned subsidiary of the AAR) Located in Cary, NC Provider of IT and related services to North America’s Railroads. TRAINII. LCS Event repository UMLER Car Hire Exchange CHARM, etc One of the worlds largest EDI networks (approx 5.8M< messages per day) Operates Steelroads.com Allows customers to track shipments, receive estimated time of arrival, order equip, etc.

11. AAR Departments - TTCI Transportation Technology Center (wholly-owned subsidiary of the AAR) Located in Pueblo, Colorado World class research and test center used by Freight and passenger railroads from around the world. Focus on programs to improve safety, reliability and productivity. Operates a training center for emergency personnel for transportation accidents involving hazmats. Facility owned by the Federal Railroad Administration but operated by TTCI since 1984.

12. AAR Key Committees Network Efficiency Management Committee Safety and Operations Management Committee Policy Advocacy and Management Committee

13. AAR Committees - NEMC Network efficiency Management Committee Automotive Quality Improvement Executive Policy Committee Customer Service Standing Committee Damage Prevention and Freight claim Working Committee EDI Work Committee Electronic Commerce Working Committee Equipment Assets Management Working Committee Information Technology Standing Committee Interline Revenue Management Working Committee Quality Lead Team for the Prevention of Damage of Paper products Mexico/US Automotive Task Force Reload Steering Committee Revenue Systems working committee Transborder Working Committee

14. AAR Committees - NEMC Network efficiency Management Committee (continued) UMLER Working Committee Vehicle and equipment Quality Task Force

15. 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

16. 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

17. 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

18. 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

19. Wrap-up 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 website.

20. Questions?