Railroad Railroad Clearinghouse Clearinghouse

UpdateUpdateACACSO – November 12ACACSO – November 12thth, 2008, 2008

Orlando, FLOrlando, FL

Robert SanfordRobert SanfordManager Car AccountingManager Car Accounting

• Electronic detail submitted to Railinc via the Car Hire Data Exchange (CHDX)– Supplemental detail submitted manually

through paper documents

• Paper Appendix H submitted via US Mail to each business partner

• Appendix H may not balance to the CHDX details

Prior Settlement ProcessPrior Settlement Process

Prior Settlement ProcessPrior Settlement Process

• Cash settlement is made based on bilateral arrangements between business partners– Net basis– Gross basis– Form of payment – Check, Draft, EFT, ACH

• Timing of settlement varies– Some payments are timely– Some payments are late – sometimes significantly

RCH Settlement ProcessRCH Settlement Process

• Detail records submitted electronically to Railinc through Car Hire Data Exchange (CHDX)

• CHDX Summary Records (Type 9) are used to determine the net car hire position of each participant

• Net-Net Position reports produced by Railinc

Process Flow - DataProcess Flow - DataROAD B

CHDX

RCH SYSTEM

Processes CHDX data

by the 19th of each month

Net/Net Position Report

Reports created on the 20th of

each month

ROAD A ROAD C

Process Flow - SettlementProcess Flow - Settlement

ROAD BROAD A ROAD C

Net/Net Position Report

Funds Transfer

Clearing House Bank

Roads retrieve

reports from Railinc

Website

Funds due to bank by 11:30 A.M. on the 21st

TimelineTimeline

Monthly RCH processing:• 19th - CHDX details processed through RCH• 20th – Net/Net Reports available by 10:00 A.M.• 21st – For net payable participants, funds must be

received by 11:30 A.M.• 21st – For net receivable participants, funds are

disbursed by 2:00 P.M.

* RCH processing will occur on the next business day for any date which falls on a weekend or holiday

Designed to allow each participant to:• Enter Negative Payable thresholds• Contact information

– Set up email notifications• Review rejected participant report

– Current– Historical

Designed to allow non-CHDX participants to:• Enter CHDX detail records

CHDX ApplicationCHDX Application

Designed to allow each participant to confidentially:• Set a threshold for negative car hire positions• Set thresholds for individual participant roads

– Default negative limit is $0.00• Set a specific time frame for each entry

* Negative payable table entries must be updated by the 11th of each month for current month RCH processing

Negative Payable TableNegative Payable Table

Designed to allow each participant to:• Access Net/Net Reports

– Current– Historical

• View Carrier Roll Up Report– Defines participant controlling road

relationships

• Unprocessed Road Report– CHDX roads which did not settle through RCH

RCH ApplicationRCH Application

• A.A.R. Code of Car Hire Rules 3 & 14 (Circular OT-10)

• A.A.R. Code of Trailer and Container Reporting Rules 3 &14 (Circular OT-36-I)

• Only applies to railroad owned rail equipment, trailers, and containers

Car Hire RulesCar Hire Rules

• Electronic settlement eliminates:– Paper Appendix H– Balancing errors between Appendix H and

CHDX detail• Decreased collection time• Decreased costs from:

– Processing payments– Reconciling accounts and bank statements

• Improved audit trail

BenefitsBenefits

• 1st RCH processing and settlement occurred on September 23rd, 2008

• $50M average monthly settlement• 80.4% of roads participating:

– 460 participating roads– 112 non-participants (some are no longer

active operating railroads)

• 7.9M CHDX records processed

Current StatusCurrent Status

• Explore the possibility of adding:– Shippers– Private Car Owners– Leasing Companies– TTX Company

• Increase RCH participation

• Decrease errors submitted on CHDX

Future of RCHFuture of RCH

Important Information and ContactsImportant Information and Contacts

Railinc Single Sign On Website Address:

https://www.railinc.com/sso

Contacts• Mr. Warren Alvis - RCH Administrator

– 919-651-5001 warren.alvis@railinc.com

• Jim Pinson – General Questions– 919-651-5047 james.pinson@railinc.com

• Robert Sanford – RCH TAG Chair– 404-529-1011 robert.sanford@nscorp.com

Questions?Questions?