GCAS Additional Description

NOTE: This is a description of the GCAS system, please refer to Tariff UP 4051 and UP 4052, Item 70 for complete rules. While reasonable care has gone into keeping this description current and accurate, the information contained herein should not be considered to be free of errors. In the event of any inconsistencies between this description and the tariff, the tariff document will govern.

GCAS
Implemented on Oct. 1, 1996 the GCAS system was developed to distribute covered hoppers for loading of whole grain. The system has three methods of supply and when used together they provide a reliable source of covered hoppers. The three methods of supply are General Distribution, Guaranteed Freight and Car Supply Vouchers. All customers located on the Union Pacific Railroad, on shortline carriers where Union Pacific has an obligation to provide equipment, or on other rail carriers reached via reciprocal switch are eligible to participate in GCAS. All equipment supplied under the GCAS system must be loaded and shipped on the Union Pacific Railroad. All UP customers loading and shipping whole grains (shipping location) must register in the GCAS system.

Car Supply Vouchers (VO)

The Voucher program provides all UP customers with a method to obtain a guaranteed supply of covered hoppers for loading of whole grain. Cars are offered on a weekly basis for each of the three regions.

Vouchers cars will be offered for placement in future shipping periods. Union Pacific will offer Vouchers for two shipping periods Half-month Vouchers and Week of Vouchers. Half-month Vouchers are split into two shipping periods; First Half (FH - 1st thru 15th) and the Last Half (LH - 16 through last day). Week of Vouchers are split into the 52 weeks that make up a calendar year.

UP will allocate a specific number of cars for each type of voucher and each region. The allocated cars will be auctioned off over several months. Each Monday (if Monday is a UP holiday, offers will be on Tuesday) UP will offer a portion of the cars for each region and shipping period. Offers will be published via the UP website. Half-month vouchers will be in lots for single cars or for units of 25, 50, 75 or 100 cars. Week of Vouchers will be for 75, 90, and 100 car unit trains. Customers will have until 2 p.m. CT on the day of the auction to submit a bid via UP website. Bids must be in whole dollars and for $1 or more. At the close of bidding, all winners will be notified by 10:00 a.m. CT the following business day. Notification will include the Voucher number(s) and total amount of payment to be remitted. The payment amount will consist of the total premium bid and $300 deposit per car. Deposit will be deducted from freight bill when cars are shipped. Customer will have until 5:00 p.m. CT the following business day to wire transfer the total amount due to Union Pacific's designated bank. After payment is received, Union Pacific will issue and mail the Voucher(s). Winning bids will be published via the UP website.

Car orders for placement of Half Month Voucher cars must be placed at least 7 days prior to the shipping period to maintain the placement guarantee and penalty provision ( Order Deadlines) (59K PDF form). Orders may be placed on the Union Pacific Web Site (GCAS Web Order Instructions)(324K PDF file). Customers without access to the site may call UP Ag Products Asset management at 402-544-4190.  If no order is placed by the 5th calendar day of the shipping period, the voucher will be considered canceled and the premium and deposit will be forfeited. Empties can be ordered for any registered shipping location within the voucher region as long as UP receives a line haul movement of whole grain. Cross-town switch movements do not qualify as a line haul. Preferred spotting dates within the half-month period will be accepted for all but the last three days of the period. Applicable tariffs provisions regarding demurrage etc. will begin on the actual placement date or the requested placement date whichever is later.

Car orders for placement of Week of Voucher cars must be placed at least 4 days prior to the shipping period to maintain the placement guarantee and penalty provision (Order Deadlines). Orders may be placed on the Union Pacific Web Site (GCAS Web Order Instructions). Customers without access to the site may call UP Ag Products Asset management at 402-544-4190.  If no order is placed by the start of the shipping period, the voucher will be considered canceled and the premium and deposit will be forfeited. Empties can be ordered for any registered shipping location as long as UP receives a line haul movement of whole grain. Cross-town switch movements do not qualify as a line haul. Preferred spotting dates within the week will be accepted. UP will make every reasonable effort to ensure cars are placed as close to the preferred date as possible. UP reserves the right to place cars at any time during the week and applicable tariff provisions regarding demurrage etc. will begin when cars are furnished

Transfers will be allowed at the discretion of the railroad for a fee of $25 per car. Car Order Change Request .

Half-month Voucher shipments of singles (units of 20 or less) can me made in any size but unit voucher (25, 50, 75 or 100) must be shipped as a unit. Units can be combined or split at the desecration of the railroad for a $250 transaction fee. Voucher shipments cannot be combine with other vouchers or other supply methods.

Week of Voucher shipments must be unit train quanities of 75, 90, or 100 cars.

Customers should use normal procedures for billing shipments in connection with car supply vouchers, but must ensure the Voucher numbers appears on the waybill as described in VO Bill of Lading Guidelines. Deposits will only be refunded as a reduction of Freight charges to the payer of freight. Shipments billed without proper reference to the Voucher Number will be subject to loss of $300 deposit. If for any reason the deposit in not deducted from the freight charges, requests for adjustment/correction must be made within 120 days of Freight bill. Requests must be made to Agricultural Products Asset Management.

In the event UP fails to spot "Week of" or Half-month voucher cars in the specified period, Voucher owner may claim a late penalty of $50 per car up to a maximum of $400 per car. Claims  must be sent to UP Agricultural Products Asset Management within 60 days of car placement period. Cars placed for loading and rejected by the shipper will be replaced as soon as possible. No penalty will be paid for failure to place a substitute car during the specified shipping period.

General Distribution (GD)

GD is used by Union Pacific to supply covered hoppers in a systematic manner. Orders may be placed on the Union Pacific website (GCAS Web Order Instructions). Customers without access to the site may place orders with UP Customer Service at 800-243-2018. For assistance with a location contact 1-800-872-1045. GD orders are for immediate delivery, no order dates are accepted. Union Pacific offers no guarantee of delivery dates. GD orders that are placed and later canceled will be subject to a $70 per car penalty.

Union Pacific will evaluate covered hopper supply and establish a General Distribution status of Open or Matrix.

Open

The GD status when demand for cars is current or when cars are in storage. Customers can order cars at any time during this status. Each location may have one GD order at a time for up to the number of cars they can spot. When the cars for the first order are placed that shipping location may place another order.

Matrix

The GD status will be Matrix when supply is tight and Union Pacific is not able to fill all demand. Customers are not free to order GD cars under this status; they will be offered cars, as they are available. GD uses a matrix to offer cars on a rotation or "turn" basis. The matrix is a listing of all shipping locations that are registered in the Grain Car Allocation System. New customers that register will be given the next number on the matrix. The matrix is separated into 3 large geographic regions. All shipping locations were assigned a random sequence number when the system was implemented. Union Pacific will evaluate car supply and fax an offer of cars to the next shipping location(s) on the matrix. The offer is approximately 7 to 14 day advance notice of car availability. Each location will have two days to order all or a portion of the cars their facility is registered to receive. Customer has no obligation to order cars but will not have another opportunity until the next rotation of the matrix or until GD is Open.

Guaranteed Freight (GF)

GF is a partnership agreement between UP and customers shipping whole grain. Under the agreement UP will sub-lease privately owned or leased covered hoppers. Each agreement is called a Guaranteed Freight Pool and each partner is called a pool operator. UP guarantees a monthly supply of empty covered hoppers equal to 1.4 times the number of cars subleased and the pool operator guarantees to provide loads of whole grain for each empty supplied. Union Pacific will reduce the monthly rental by $250 for each load the customer fails to ship. Each month has two shipping periods; First Half (FH - 1st through 15th) and the Last Half (LH - 16 through last day). Pool operators must allocate their empties in approximately even increments in the first and last half.

Pool operators must place all car orders at least 10 days prior to the shipping period (Order Deadlines) . Orders may be placed on the Union Pacific website (GCAS Web Order Instructions). Empties can be ordered for any shipping location registered for general distribution as long as Union Pacific receives a line haul movement of whole grain. Cross-town switch movements do not qualify as a line haul. Preferred spotting dates within the half-month period will be accepted for all but the last three days of the period. Applicable tariffs provisions regarding demurrage etc. will begin on the actual placement date or the requested placement date whichever is later.

Transfers will be allowed at the discretion of the railroad for a fee of $25 per car. Car Order Change Request .

GF shipments can me made in any size but different GF Pools or other supply methods cannot be combined for one shipment. Waybills for GF shipments must contain the GF Pool Number as described in the GF Bill of Lading Guidelines .

In the event UP fails to spot cars in the specified period, shippers may cancel the order and claim a $250 per car penalty from the railroad (GCAS Claim Form) (84K PDF forms). This claim form must be submitted no later than sixty (60) days after specified period or claim will be denied. All orders that are not canceled will be rolled to the next half-month period and all rules and guarantees will apply as if it were for that half. Cars placed for loading and rejected by the shipper will be replaced as soon as possible. No penalty will be paid for failure to place a substitute car during the specified shipping period.