GATX Corporation
Using Deprescription Industry Tools to Assess Railcar Market Conditions
11/09/2011
Unless otherwise noted, GATX is the source for data provided
FORWARD
Chauncey Fallen- Manager-Transportation Services
Email: chauncey.fallen@gatx.com
Phone: 312/621-6604
Fax” 312/499-7114
• GATX Corporation (NYSE:GMT) provides leasing and related services to
customers operating rail, marine and other targeted assets. GATX is a leader
in leasing transportation assets and controls one of the largest railcar fleets in
the world. Applying over a century of operating experience and strong market
and asset expertise, GATX provides quality assets and services to customers
worldwide. GATX has been headquartered in Chicago, Illinois since its
founding in 1898 and has traded on the New York Stock Exchange since
1916. For more information, visit the company’s website at
http://www.gatx.com.
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ACACSO- Nov 9, 2011- Memphis, TNPresentation- Deprescription Industry Tools
I. INTRO
II. Deprescription Background
III. RAILINC’s Deprescription Market Report Tool
IV. RMI Car Hire Marketplace Report Tool
V. Industry Tool Enhancements
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INTRO
 Market Data Tools compile paid car-hire to provide a summary of the hourly & mileage
earning ranges associated with a specific car type for a given time period; while
protecting the confidentiality of any negotiated rates.
 Market Data Reports- Audience for Use
 Railroads
 Car Owners
 Car Lessees
 Market Data Reports- Benefits
 Financial- Evaluate equipment revenues.
 Operations- Assess equipment utilization.
 Marketing- Determine viability of car-hire-based lease offerings.
 Current Tools and Future Enhancements
 RAILINC’s Depre Market Reports (www.railinc.com)
 RMI’s RailConnect- Car Hire Marketplace- Railcar Bluebook (www.railconnect.com)
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Deprescription- Background
• Deprescription refers to the conversion of car-hire rates earned by railroad-marked
cars from “prescribed” rates set by the ICC formula to negotiated rates.
• Phased in over 10 years 1/1/93 through 12/31/02. (On January 1, 2003 all railroadowned freight cars became deprescribed; except for “grandfathered boxcars” that
were marked and owned by the Class III railroads as of Dec 31,1983.)
• Car hire rates are established by negotiations between owner and user railroads.
• Negotiated rates are confidential and recorded on the Car Hire Account Rate Master
(CHARM) file.
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RAILINC Depre Market Tool
• Exhibit A- Deprescription Car Hire Market Data System
– Market Data
– Default Rate- Query by specific car numbers or AAR Car Type Code
• Exhibit B- Market Data Query Screen- Name & Primary Selection Criteria
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–
–
–
AAR Code or Mechanical Designation
Report type- Summary, Detail, or Both
Rate Code- Market, spot, etc…
CHDX Month- by Month, Quarter, etc…
• Exhibit C- Hour & Miles Parameters (if user selected Both or Summary)
• Exhibit D- Optional Criteria- Car asset components (weight, cubic capacity,
etc…)
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Exhibit A
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Exhibit B
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Exhibit C
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Exhibit D
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Query Summary
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Reports
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Summary ReportTest Data Only!
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Summary Report-Breakdown
Hourly Range 076 – 085 & Miles 8.0 – 9.0
376= 376,000/hours (Loaded)
1206= 1,206,000/miles (Loaded)
547= 547,000/hours (Empty)
1191= 1,191,000.miles (Empty)
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RMI’s RailConnect- Dashboard
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RailConnect- Car Hire Marketplace
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Car Hire Marketplace- Bluebook Query
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CHMP-Bluebook-Market Trend Report
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Industry Tool Enhancements
• RAILINC
– 2012: Migrating the Deprescription system off the mainframe/legacy platform.
– 4Q11-1Q12: Performing study to investigate future enhancements to the Bid/Offer
system, Market Reporting Tool and any other Deprescription-related systems.
– Your feedback is appreciated!
• RMI
̶ No immediate enhancement are planned at this time.
̶ Customer feedback is appreciated!
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Questions/Comments?
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