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To: Users of BNSF's Open and Covered Coil Fleet
07/05/2006

Open and Covered Coil Fleet Equipment Update Effective July 17, 2006

BNSF’s current open and covered coil fleet consists of a combined 2,285 cars. For the last two years demand for this fleet has been very high--at times exceeding BNSF’s ability to meet the requests. Given the increased demands being placed on this fleet, we anticipate there will continue to be periods where demand will exceed supply.

In order to better manage expectations, we have developed a new process for proactively communicating available loading capacity. By going to bnsf.com and using BNSF’s Railcar Equipment Request, you can obtain anticipated loading capacity status by week for a five-week rolling period. This information will be updated on the BNSF Website every Friday and will reflect equipment availability for the next five-week time frame.

Within the on-line report, you will see the Open or Covered Coil Fleet weekly anticipated loading capacity status defined as follows:

Capacity Available – current supply is adequate to meet demand. Capacity is not constrained. (Note–even though capacity is currently available, this does not guarantee that a specific equipment request will be filled.)

    Capacity Constrained – current accepted demand exceeds available supply. Equipment requests will continue to be accepted by the system and we will make every attempt to fill those equipment requests, but customers can expect that some requests will not be filled.
    Capacity Sold-out – current demand far exceeds available supply. Once this demand threshold is reached, additional equipment requests for that week will not be accepted.

    Effective July 17, 2006, when you place an equipment request through bnsf.com, if capacity is sold-out, BNSF will notify you that your equipment request will not be accepted for that week. Should this occur, you will be able to submit equipment requests for any of the following week(s). BNSF is looking at ways to increase its coil fleet as we verify expectations of continued strength in the coil steel market.

    BNSF reserves the right to reject or reduce equipment requests which, in BNSF’s judgment, cannot be filled due to existing equipment requests, service conditions or available car supply for that loading location being inadequate to satisfy historical demand.

    If you have any questions, please send an email to Customer.Notifications@bnsf.com