AAR Overview
Presentation to:
Association of Car Accounting and Car Services Officers
May 8, 2008
Chicago, IL
About the AAR

Master Car Builders Assoc. formed 1867





The goal was to standardize freight cars
Soon after many railroad associations were formed
In 1933 the Rail Transportation Act was passed to deal with
depression-era problems affecting railroads
President Franklin D. Roosevelt recommended railroads unify
into one organization.
AAR formed on October 12, 1934
AAR’s Mission & Vision

Mission


To add value to the North American railroad industry by fostering
improved safety, security, service, efficiency and profitability through
leadership and coordination on industry issues.
Vision

To be recognized by industry leaders and valued by public policy
decision makers as the definitive voice of the North American rail
industry.
AAR Full Members
AAR Special Members
AAR Affiliate RR Members



Transtar Inc.

ISG - Cleveland Works Railway
Company

Lake Superior & Ishpeming
Railroad Co.

Metro-North Railroad

MG Rail, Inc.

Morristown & Erie Railway, Inc.



New Orleans & Gulf Coast
Railway
New York City Transit
Northern Plains Railway
Republic N&T Railroad, Inc.
Roberval and Saguenay
Railway Company
Sidney and Lowe Railroad,
LLC
AAR Associate (Gold) Members

Alstom Transport

American Railcar Industries, Inc.

Amsted Rail Group

GE Transportation
Chicago Freight Car Leasing
Co.

The Greenbrier Companies

HDR Engineering

HNTB Corporation



CIT Rail Resources
Diamond Rail Lease
Corporation


General Electric Railcar
Services Corp.
Lockheed Martin Maritime
Systems & Sensors

First Union Rail Corporation

MPL Technology

FreightCar America, Inc.

New York Air Brake Corporation

GATX Rail
AAR Associate (Gold) Members (Cont.)

Pacer Stacktrain

The Timken Company

Parsons Brinckerhoff

TransEd, Inc.

Progress Rail Services

TranSystems Corporation

Rail CRC

TrinityRail

Reidler Decal Corporation

TTX Corporation

RESCAR Companies

Union Switch & Signal

Southern Company Generation

Union Tank Car Company

Standard Car Truck Company

Wabtec Corporation

Standard Steel, LLC
AAR Associate (Silver) Members

AIG Rail Services, Inc.

All Capital (US), LLC

American Railcar Leasing


GLNX Corporation


Herzog Contracting Corp.




Kennedy / Jenks Consultants
Procor Limited
RailPower Hybrid Technologies
Corp.

Road & Rail Services, Inc.

Salco Products, Inc.
Holland Company
JK-CO LLC Specialty Car
Repair
Plasser American / Franz
Plasser

Saskatchewan Grain Car
Corporation
AAR Associate (Silver) Members (Cont.)


Savage Transportation
Management (Formerly
CANAC)
Science Applications
International Corporation (SAIC)

Shaw Environmental Inc.

Strato Inc.

Sunrise Manufacturing Inc.

TransCore

TRC Companies, Inc.

URS Corp.

ZTR Control Systems
AAR Associate Program
The AAR Associate Program is for every business that
depends on America’s freight rail system to be the best in the
world.
“Railroads and suppliers alike have benefited from AAR’s vital
role propagating the use of technology. AAR also enables the
rail industry to speak with one strong voice on major legislative
issues that dramatically impact our business.”
Robert P. Haag, President, Wabtec Railway Electronics
“Associate membership in the AAR has been very beneficial in
providing our staff a communications link with key railroad
officials and AAR staff., plus timely news reports about
important railroad legislation and events affecting the industry.”
Thomas P. Smithberger, Senior VP National Director of Railroads, HDR, Inc.
AAR Associate Program

Gold Members


Can participate in up to three concentration areas:

Technical Services

Environmental, Hazmat and Tank Car

Car Service/Car Hire

Damage Prevention and Freight Claims

Policy and Communications
Invitation to meet with AAR Board of Directors during its
annual meeting

Link to your company via AAR’s we page

Member rates on publications
AAR Associate Program

Silver Members




Can participate in one concentration area:

Technical Services

Environmental, Hazmat and Tank Car

Car Service/Car Hire

Damage Prevention and Freight Claims

Policy and Communications
Member rates on publications
Invitation to AAR annual meeting (sans reception with
AAR Board of Directors)
Listing on AAR’s web page
AAR Structure
Six Functional Areas:

Safety and Operation

Administration and Finance

Government Affairs

Policy and Economics

Communications

Law
Two subsidiaries and one affiliated organization:
Information technology
Research and development
World-class policy research organization
TTCI and TTC: Two Different Things
TTCI: The
Company
TTC: The
Facility
Transportation Technology Center, Inc.

Roy Allen, President

TTCI Board Oversees Activities

238 Employees at TTCI

Revenues

Domestic and international commercial work (59%)

AAR for SRI and Task Orders (29%)

Government (12%)
Transportation Technology Center, Inc.

Activities

Strategic Research Initiatives


Research initiatives, including vehicle track systems, engineering
research, heavy axle load research, mechanical research, technology
scanning
Task Orders for Safety and Operations

Technical standards, mechanical inspections, hazardous materials,
tank car and spent nuclear fuel cask, communications, railway
electronics, car repair billing, AAR scales, locomotive emissions,
bolsters, security
Railinc

Allen West, President

Railinc Board Oversees Activities

Approximately148 Employees at Railinc

Railinc provides transportation utility serving the needs of
customers across North America and beyond
Railinc

Activities


Maintains UMLER data base; IRF Files; industry’s legacy
files; supports world’s largest electronic data interchange
networks (5.8 million messages are transmitted each day);
damage prevention/freight claims
Operates steelroads.com, the railroad industry’s common
web site where rail customers can track information, order
equipment, discover shipping options and find pricing
information
Railroad Research Foundation
The Railroad Research Foundation (RRF) is a world-class
policy and research organization devoted to fostering in the
public interest a safe, secure, technologically advanced and
productive marketplace driven railroad industry. RRF
undertakes research and education activities in the public
interest and for the public good.
Railroad Research Foundation



The RRF’s funding comes from federally funded cooperative
agreements.
These cooperative agreements are used for the purpose
intended and will fall within the scope of the RRF’s activities as
defined under its charter and tax exempt purpose.
The RRF, by virtue of its close relationship with the AAR,
benefits from the AAR Committees, which is comprised of
individuals from its member railroads, the supplier community,
sponsoring Federal agencies and other interested industry
parties, to provide general direction to the RRF on projects
funded through government cooperative agreements.
Some RRF’s Federally Funded Projects

Freight Rail Security Project

Railroad Wireless Communications and Train Control

Positive Train Control (PTC)

Countermeasure to Reduce Suicides on Railway Rights of Way
The AAR Interacts With:
- United States Congress
- Surface Transportation Board
- Federal Railroad Administration
- Department of Homeland Security
- Department of Defense
- Department of Justice
- National Transportation Safety Board - Department of Energy
- Federal Highway Administration
- Nuclear Regulatory Commission
- Environmental Protection Agency
- Federal Communication
Commission
- Federal Motor Carrier Safety
Administration
- Research Special Programs
Administration
Committee Structure
AAR
Board of
Directors
Safety and
Operations
Management
Committee
(SOMC)
Network
Efficiency
Management
Committee
(NEMC)
Policy and
Advocacy
Management
Committee
(PAMC)
Railinc
Board of
Directors
TTCI
Board of
Directors
Policy and Advocacy Mgmt Committee
(PAMC)



Reports directly to AAR Board
Consists of legal and policy representatives from AAR Member
Roads
Issues

Reject proposed currently unnamed and other proposals to re-regulate U.S.
Freight Railroads

Investment Tax Credit (S. 1125)

Clear Skies Initiative

Truck Size and Weight
PAMC Subordinate Committees
- Antitrust Working Committee
- Border Policy Committee
- Chief Legal Officers
- Communications Committee
- Economic Regulation Working
Committee
- Environmental Working
Committee
- Safety Regulation Working
Committee
- Spectrum Legal Working
Committee
- Tax Policy Working Committee
- Tort Matters Working
Committee
- Truck Size and Weight
Committee
- Washington Representatives
Network Efficiency Management
Committee (NEMC)

To develop and implement strategies that integrate industry and
individual railroad business processes into quality services that
deliver continuous improvements in customer satisfaction.

Consists of chief marketing officers from AAR Member Roads

Current Priorities

Customer Satisfaction

Equipment Asset Management

Interline Service Management

Interline Revenue Backshop Improvements

Trans Border Initiatives
NEMC Subordinate Committees

Customer Service Standing Committee


Interline Revenue Management


Manage data quality and promote business processes to permit accurate
communication of price, billing, collection and settlement information
Transborder Working Committee


Addresses customer and customer support issues from an industry perspective
Expedite movement of import/export traffic through the promotion of uniform
process definitions and simplification of reporting requirements
Electronic Commerce Working Committee

Facilitate the exchange of information among customers, transportation providers
and partners using the best available technology
NEMC Subordinate Committees (Cont.)

EDI Working Committee


Provides an Information technology interface to the “user” community
Equipment Assets Management Working Committee

Responsible for maximizing inter-railroad car utilization
Safety and Operations Management
Committee (SOMC)

Provides overall authority for industry standards (interchange,
safety, environmental, hazmat and communications and signal)
and develops strategy and provides direction for new initiatives.

Consists of chief operating officers from AAR Member Roads

Current Priorities

Interline Service Management

Interoperable Communications Strategy

Chicago Project

North American Joint PTC Project

Reducing stress and service state of the industry
SOMC Subordinate Committees

Technical Services Working Committee
Responsible for matters relating to the physical assets of the railroad industry.

Open Top Loading Rules Committee

Quality Assurance Committee

Arbitration & Rules Committee

Equipment Engineering Committee

Wheels, Axles, Bearings & Lubrication Committee

Braking Systems

Specially Equipped Freight Car Committee

Car Repair Billing Committee

Locomotive Committee

Damage Prevention & Freight Claims
SOMC
Subordinate Committees (Cont.)

Risk Management Working Committee
Develop and guide industry efforts to reduce environmental and safety risks of rail
transportation. The following committees report to Risk Management:

Hazardous Materials Committee

Non-Accident Release Reduction Task Force

Environmental Affairs Committee

Tank Car Committee

Nuclear Waste Transportation Task Force

Grade Crossing & Trespass Prevention Committee

Committee on Locomotive Emissions & Energy

Railroad Geographic Information Systems Committee
Conclusion

Thank you

Questions?
Jeff Usher
202-639-2370
jusher@aar.org