<PAGE>

                                                                   EXHIBIT 10.22


                             C O N F I D E N T I A L




                              AMENDED AND RESTATED

                          RAIL TRANSPORTATION AGREEMENT

                                     between

                         UNION PACIFIC RAILROAD COMPANY

                                       and

                PACER INTERNATIONAL, INC., d/b/a PACER STACKTRAIN

                    (f/k/a APL LAND TRANSPORT SERVICES, INC.)

                                       and

                         AMERICAN PRESIDENT LINES, LTD.

                                       and

                                APL CO. PTE LTD.

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                                TABLE OF CONTENTS
                                -----------------

<TABLE>
<S>                                                                                                               <C>
Section 1.    EFFECTIVE DATE, TERM AND RENEWAL ............................................................       2
Section 2.    DEFINITIONS .................................................................................       3
Section 3.    AUTHORIZED AGENT ............................................................................       3
Section 4.    RAIL TRANSPORTATION SERVICES TO BE PROVIDED BY UP ...........................................       4
                  Linehaul Services .......................................................................       4
Section 5.    TERMINAL SERVICES TO BE PROVIDED BY UP ......................................................       4
                  A.  General Services ....................................................................       4
                  B.  Loading Containers ..................................................................       5
                  C.  Other Terminal Services .............................................................       5
                  D.  Facilities ..........................................................................       6
                  E.  Additional Terminal Services Provided by UP Chicago, IL ,
                      for Stack Car Trains for Which UP Does Not Receive a Linehaul .......................       7
Section 6.    UP EQUIPMENT OBLIGATIONS ....................................................................       8
                  A.  Intermodal Cars Furnished by UP .....................................................       8
                  B.  Stack Car Supply ....................................................................       9
                  C.  UP Relief From Obligation ...........................................................      10
                  D.  Equipment Use .......................................................................      10
                  E.  Maintenance of Equipment ............................................................      10
                      1.   Responsibility .................................................................      10
                      2.   Cost of Repairs for APL Stack Cars .............................................      10
                      3.   Cost of Repairs for Containers and Chassis .....................................      11
                      4.   Repairs by Non-Responsible  Party ..............................................      11
                      5.   Permission to Enter ............................................................      12
Section 7.    SERVICE COMMITMENTS BY UP ...................................................................      12
Section 8.    APL'S VOLUME COMMITMENT .....................................................................      12
Section 9.    CAR COST COMPONENT AND USE OF APL OWNED
                  STACK CARS ..............................................................................      12
                  A.  APL's Payment for Stack Cars ........................................................      12
                  B.  UP Use of and Payment for APL Owned or Leased Stack Cars ............................      12
Section 10.   OTHER APL OBLIGATIONS .......................................................................      13
                  A.  Collection of Charges ...............................................................      13
                  B.  Shipping Orders .....................................................................      13
                  C.  UP Domestic Container Space .........................................................      14
Section 11.   EQUIPMENT STORAGE ...........................................................................      14
                  A.  Parking Spaces at Terminals .........................................................      14
                  B.  Equipment Storage Charges ...........................................................      14
                  C.  Storage of Stack Cars ...............................................................      14
Section 12.  PARTICIPANT AND TPI SHIPMENTS ................................................................      15
                  A.  UP and Participants To Negotiate All Terms Other Than
                      Rates and Train Schedules ...........................................................      15
                  B.  Participants' Volume Commitment .....................................................      16
                  C.  International Shipments for TPI Customers ...........................................      16
Section 13.   RATES/ADJUSTMENT TO RATES ...................................................................      16
Section 14.   COMPETITIVE PROPOSALS .......................................................................      16
Section 15.   FORCE MAJEURE ...............................................................................      17
</TABLE>

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<TABLE>
<S>                                                                                                       <C>
Section 16.   ARBITRATION .............................................................................   18
                  A.  Panel ...........................................................................   18
                  B.  Arbitrators' Findings and Rules of Evidence .....................................   18
                  C.  Arbitrators' Duties .............................................................   18
                  D.  Expenses ........................................................................   19
                  E.  Confidentiality .................................................................   19
Section 17.   RENEGOTIATION ...........................................................................   19
Section 18.   MUTUAL INDEMNITY ........................................................................   20
Section 19.   CLAIMS FOR CARGO LOSS AND DAMAGE ........................................................   21
                  A.  Domestic Shipments and Third Party Equipment ....................................   21
                  B.  International Shipments .........................................................   21
                      1.   Duties of Parties ..........................................................   21
                  C.  Processing of Cargo Claims ......................................................   22
                  D.  Notification of Damage ..........................................................   23
                  E.  Agreement Only for Benefit of Party .............................................   23
                  F.  Condition Precedent .............................................................   23
Section 20.   HAZARDOUS MATERIALS AND RESTRICTED COMMODITIES ..........................................   24
                  A.  Hazardous Materials .............................................................   24
                  B.  Indemnity .......................................................................   24
                  C.  Duty of Cooperation .............................................................   25
Section 21.   FEDERAL CONTRACTOR REQUIREMENTS .........................................................   25
                  A.  Applicable Laws .................................................................   25
                  B.  Certification ...................................................................   26
Section 22.   OTHER AGREEMENTS ........................................................................   26
Section 23.   WHEN TERMS AND PROVISIONS OF UP'S INTERMODAL
              RULES APPLY .............................................................................   27
Section 24.   ASSIGNMENT ..............................................................................   27
Section 25.   YEAR 2000 COMPLIANCE ....................................................................   29
Section 26.   NOTICES .................................................................................   30
Section 27.   CONFIDENTIALITY .........................................................................   31
Section 28.   VENUE ...................................................................................   31
Section 29.   APPLICABLE LAW ..........................................................................   31
</TABLE>

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                               List of Appendices

Appendix 6.B      --       Stack Car Supply

Appendix 7        --       UP's Service Performance Standards

Appendix 8        --       APL's Volume Commitment

Appendix 9.A      --       Car Cost Component

Appendix 9.B      --       Rates for Use of APL Stack Cars, Etc.

Appendix 11.A     --       Parking Spaces at Terminals

Appendix 12.C     --       International Shipments for TPI Customers

Appendix 13       --       Rates/Adjustments to Rates

Appendix 14.      --       Competitive Proposals

Appendix 17.B     --       Renegotiation of Rates

Appendix 23       --       When Terms and Provisions of UP's Intermodal Rules
                           Apply


                                List of Exhibits

Exhibit A     --  Definitions

Exhibit B     --  Rates per Container and Empty Repositioning Rates

Exhibit C     --  Kearny Trains

Exhibit D         APL Volume Commitment in the Lanes Identified in Section A.1
                  of Appendix 7

Exhibit E     --  [Intentionally Left Blank]

Exhibit F     --  TPI Accounts

Exhibit G     --  Free Time and Storage Provisions at UP Terminals

Exhibit X     --  Southern Corridor International Rates

Exhibit Y     --  Average Daily Tender

Exhibit Z     --  UP Intermodal Rules Not Applicable to AP

                                      iii

<PAGE>

                             C O N F I D E N T I A L

                              AMENDED AND RESTATED

                          RAIL TRANSPORTATION AGREEMENT

                  THIS AGREEMENT is made and entered into as of the 15/th/ day
of May, 2002, between UNION PACIFIC RAILROAD COMPANY, a Delaware Corporation
("UP"), and PACER INTERNATIONAL, INC., d/b/a PACER STACKTRAIN (f/k/a APL LAND
TRANSPORT SERVICES, INC.), a Tennessee corporation (hereafter "LTS" or "Pacer"),
and AMERICAN PRESIDENT LINES, LTD., a Delaware corporation (hereafter "APL
International") and APL CO. PTE LTD., a Singapore company (hereafter "APL Co.").
LTS, APL International and APL Co. are sometimes jointly referred to as "APL".

                                    RECITALS

                  APL International and APL Co. provide ocean common carrier
freight transportation. LTS provides intermodal management services and acts as
agent for APL International, APL Co., Participants and TPI Customers. UP
provides rail transportation services as a common and exempt intermodal carrier.

                  APL International, APL Co., LTS and UP are parties to that
certain Rail Transportation Agreement dated October 11, 1996 (the "Original
Agreement"), pursuant to which UP provides rail transportation services to APL
for the movement of foreign and domestic cargo in Containers under the terms and
conditions contained therein. The Original Agreement also covers transportation
via the former Southern Pacific Transportation Company and its affiliated
railroads (collectively referred to as "SP") which have been acquired by and are
under common control with UP.

                  The Original Agreement further provides for (i) carriage of
International Shipments in Containers owned or leased by third party ocean
carriers (hereafter "TPI

<PAGE>

Shipments") as arranged by APL; (ii) carriage of Domestic Shipments in
Containers owned or leased by third party ocean carriers as arranged by APL; and
(iii) carriage of auto parts shipments for foreign automobile companies in APL
or other ocean carrier Containers as arranged by APL (hereafter "CKD
Shipments"). The term "International Shipments" as used in the Original
Agreement (and in this Agreement) includes shipments moving for the benefit of
APL International, APL Co., TPI Shipments and CKD Shipments.

                  The Original Agreement also formalized and consolidated
agreements and understandings, which have been reached over the years between
the parties, in anticipation of the transaction involving the recapitalization
of LTS which occurred in May 1999 and resulted in a substantial change in
ownership of LTS.

                  The parties desire to amend and restate the Original Agreement
to read as set forth in this Agreement in order to give effect to certain
agreements and understandings among them regarding car supply and to make
certain other technical changes and corrections as they have deemed necessary.

                                    AGREEMENT

                  NOW THEREFORE, the parties agree as follows:

Section 1.        EFFECTIVE DATE, TERM AND RENEWAL

                  The Original Agreement took effect on October 11, 1996, thirty
days after the Control Date, and as amended and restated herein shall continue
to be in effect until October 10, 2011.

                                      -2-

<PAGE>

Section 2.        DEFINITIONS

                  Capitalized terms used in this Agreement which are not defined
in the Agreement itself will have the meanings set forth in Exhibit A to this
Agreement.

Section 3.        AUTHORIZED AGENT

                  APL International and APL Co. designate LTS as their
authorized representative for the following purposes under this Agreement,
including but not limited to:

         1.       Paying transportation charges, as required by this Agreement;
         2.       Arranging all operational matters connected with APL
                  International's and APL Co.'s Containers;
         3.       Giving and receiving all notices under this Agreement; and
         4.       Performing all other actions and performance required of or
                  permitted to APL International and APL Co. under this
                  Agreement.

                  APL International and APL Co. reserve the right, at their sole
discretion and upon prior notice to UP, to take such direct actions and directly
perform such obligations under this Agreement as they deem necessary or
convenient. It is contemplated by the parties that such direct action and
performance by APL International and APL Co. generally will be limited to cargo
claims, federal contractor compliance, and other administrative matters.

                  Notwithstanding the foregoing the parties agree that in the
event LTS fails to perform any of the duties and responsibilities for APL
International and APL Co. with respect to this Agreement with UP, APL
International and APL Co. shall perform those duties and responsibilities,
particularly payment of transportation charges as required by this Agreement.

                                      -3-

<PAGE>

Section 4.        RAIL TRANSPORTATION SERVICES TO BE PROVIDED BY UP

                  Linehaul Services

                  UP shall transport loaded Containers carrying International
and Domestic Shipments, empty Containers or empty APL Stack Cars between the
points and at the divisions, charges and rates (hereafter "Rates") set forth in
Exhibit B, as adjusted from time to time under the terms of this Agreement.

Section 5.        TERMINAL SERVICES TO BE PROVIDED BY UP

         A.       General Services

                  The Rates set forth in Exhibit B, as adjusted from time to
time under the provisions of this Agreement, include the following additional
services to be performed by UP or its authorized agents or independent
contractors:

                  (a)    Lifting Equipment onto Intermodal Cars and securing
                         Equipment onto Intermodal Cars and unsecuring Equipment
                         and lifting or driving Equipment from Intermodal Cars
                         except at On-Dock facilities.

                  (b)    Preparing Equipment receipt and interchange inspection
                         reports evidencing the apparent condition of the
                         Equipment at times of interchange providing copies of
                         those reports to APL;

                  (c)    Providing timely notification of Arrival and
                         Availability of Shipments to APL or Participant as
                         identified on the bill of lading;

                  (d)    Assessing and collecting any Equipment storage charges
                         against Participants for Domestic Service shipments
                         held at any UP terminal beyond the free time as may be
                         provided in UP's Intermodal Rules except as otherwise
                         provided herein. The Parties

                                      -4-

<PAGE>

                         agree that APL shall not be responsible for payment of
                         storage charges on Participants' shipments; however,
                         APL shall cooperate with UP to enable UP to collect
                         storage charges on Participants' shipments.

                  (e)    Providing APL with a daily inventory report of all APL
                         owned or leased Stack Cars, Containers and chassis on
                         hand at UP's Global One facilities. Such report will be
                         by unit number and will be furnished once daily by
                         10:00 AM Chicago time for each calendar day.

                  (f)    Such other transferring, marshaling and repositioning
                         of Equipment within rail terminals as may be necessary
                         or convenient to carry the purposes of this Agreement
                         into effect.

         B.       Loading Containers

                  Except at On-Dock Facilities, UP shall load the Containers
tendered under this Agreement on to Intermodal Cars in a timely manner. UP shall
load Intermodal Cars properly in accordance with any safe operating parameters
given by connecting rail carriers to UP and/or established by UP, the AAR or the
FRA.

                  When Stack Cars are received from connecting rail carriers at
interchange points, UP shall accept the connecting rail carrier's loading of top
and bottom Containers on each platform as being in accordance with the loading
capabilities of the Stack Cars and normal railroad operating parameters.

         C.       Other Terminal Services

                  APL will pay the Rates set forth in Exhibit B for the
following additional terminal services:

                                      -5-

<PAGE>

                  (a)    Transferring Containers at Global One between Railcars,
                         including Stack Cars and Standard Railroad Flatcars.
                         Such service includes the attachment or detachment of a
                         chassis.

                  (b)    Unloading or loading empty Containers, when directed by
                         APL, from or to Stack Cars or Flatcars when such empty
                         Containers are received or delivered in interchange
                         from or to connecting rail carriers at Chicago,
                         Illinois and on which UP does not receive a linehaul
                         movement.

                  (c)    Lifting Containers when directed by APL, between
                         chassis; or from the ground to chassis or from chassis
                         to ground, when directed by APL or required due to
                         APL's shortage of chassis, and the charge for such
                         lifting is not covered in the linehaul rates shown in
                         Exhibit B to this Agreement or in (a) or (b) above.

         D.       Facilities

                  (a)    UP agrees to maintain its Chicago, IL area Stack Car
                         Train terminal facility at a size and capacity such as
                         will accommodate APL's requirements for Stack Car Train
                         traffic and terminal services.

                  (b)    UP agrees to provide APL with use of no less than one
                         set of three ramp tracks and two cranes or lifting
                         devices during the scheduled loading or unloading of
                         any APL Stack Car Train of ten (10) or more cars.

                  (c)    UP shall lease to APL for the term of this Agreement
                         and any extensions thereof 1,800 square feet of office
                         space at its Global One facility to APL for APL's use
                         in the administration of its Stack

                                      -6-

<PAGE>

                         Car Train operations. The lease shall contain normal
                         and customary terms and conditions concerning tenant
                         and landlord obligations and responsibilities, and the
                         rent required shall not exceed the fair rental value of
                         the leased premises.

         E.       Additional Terminal Services Provided by UP in Chicago, IL for
                  Stack Car Trains for Which UP Does Not Receive a Linehaul.

                  In addition to providing terminal service in connection with
APL Stack Car Trains for which UP receives a linehaul movement, UP shall also
provide additional terminal services as defined in this Section 5 for APL Stack
Car Trains which UP does not handle in linehaul service.

                  (1)    Such additional terminal services will not be provided
                         for Stack Car Trains originating or terminating in the
                         States of Washington, Oregon or California for which UP
                         does not receive a linehaul.

                  (2)    Such additional terminal services shall be limited to
                         apply to a reasonable number of weekly Stack Car Trains
                         but in no case less than two such Stack Car Trains per
                         week.

                  (3)    UP shall have no obligations hereunder to provide
                         Intermodal Cars used in transferring Containers from
                         such Stack Car Trains for movement beyond the Chicago,
                         IL area. However, upon notice from APL, UP will use
                         reasonable efforts to furnish any excess Intermodal
                         Cars that may be in UP's possession at Chicago, IL.

                  (4)    Such terminal services shall not include payment by UP
                         of any other rail carrier's switching charges.

                                      -7-

<PAGE>

                  (5)    APL shall reimburse UP for any transportation expense
                         incurred by UP for the movement of traffic which UP did
                         not handle in linehaul service.

                  (6)    At UP's option, such terminal service will be provided
                         at either UP's Global One or Global Two facilities.

                  (7)    UP shall assess and APL shall pay a per Container fee
                         as set forth in Exhibit B for such additional terminal
                         services, provided however, such per Container fee
                         shall only be assessed when UP does not receive a
                         linehaul movement. Also UP shall assess and APL shall
                         pay an additional fee for each Container transferred
                         between Stack Cars and Flatcars as set forth in Exhibit
                         B. This charge includes attachment to or detachment
                         from a chassis. When UP does not receive a linehaul,
                         such additional terminal services shall be performed
                         under operating Schedules as mutually agreed upon by
                         UP, APL and, where necessary, the connecting rail
                         carrier providing linehaul transportation service.

Section 6.        UP EQUIPMENT OBLIGATIONS

         A.       Intermodal Cars Furnished by UP

                  1. At each intermodal terminal where APL tenders volumes to
UP, UP shall furnish APL with a sufficient number of Stack Cars to transport
loaded and empty Containers tendered by APL on any given day for movement under
the applicable Train Schedule, provided that APL shall provide verbal advance
notice of its estimated Stack Car needs to UP as provided in Section 6.A.2.
below.

                                      -8-

<PAGE>

                  2. Other than for shipments originating at On-Dock rail
terminals at San Pedro, CA, Tacoma, WA and Seattle, WA ("On Dock Terminals"),
APL will provide UP with twelve (12) hours verbal advance notice of its
estimated Stack Car needs. For shipments originating at the On Dock Terminals,
APL will provide UP with five (5) days advance verbal notice of its anticipated
Stack Car needs based upon inbound ocean vessel loadings. Further, APL will
provide UP with twenty-four (24) hours advance verbal notice of its actual Stack
Car needs so as to allow sufficient time for UP to position the required empty
Stack Cars to the On Dock Terminal.

                  3. The parties recognize that the day-to-day volume of
domestic and international export loaded containers cannot be predicted with
certainty. Further, the parties recognize that the available supply of Stack
Cars for outbound loading at any given rail intermodal terminal and at On Dock
Terminals is also dependent upon timely arrival and unloading of inbound trains.
Considering these factors, the parties also recognize that APL cannot provide UP
with precise advance notice of its daily Stack Car needs. However, APL will use
its best efforts to provide the most accurate advance notice as possible. So
long as APL provides the advance notice as required in sub-paragraph A.2. of
this Section 6, APL's failure to provide the exact number of Stack Cars required
will not relieve UP of its obligation as stated in sub-paragraph A.1. of this
Section 6. To the extent APL's actual daily volume exceeds the estimated volume
provided by APL in its 12 hour advance notice by a factor of 125%, UP will not
be obligated to provide Stack Cars for the volume in excess of 125%.

         B.       Stack Car Supply

                  The conditions under which UP will provide Stack Cars to APL
are set forth in Appendix 6.B.

                                      -9-

<PAGE>

         C.       UP Relief From Obligation

                  In the event APL incurs a shortage of chassis at any given UP
intermodal terminal, and such shortage results in a situation where inbound APL
Containers are held on Stack Cars, then UP will be relieved of certain of its
Stack Car supply obligations as described in Appendix 6.B until such time as all
inbound APL Containers are placed on chassis.

         D.       Equipment Use

                  The rules covering the use of a Container while the Container
is in UP's possession or while UP may otherwise be responsible for the Container
shall be governed by the AAR Rules.

         E.       Maintenance of Equipment

                  1.       Responsibility

                  Except as otherwise stated in this Agreement, responsibility
for loss, damage, maintenance, and repair of Equipment and Intermodal Cars will
be governed as follows:

                           (a) Intermodal Cars shall be governed by the then
current Field Manual of the A.A.R. Interchange Rules, sometimes referred to as
the Car Interchange Rules of the Association of American Railroads ("Car Rules")
in effect on the effective date of this Agreement and as may be amended from
time to time, and

                           (b) Containers and Chassis shall be governed by the
Container Rules.

                  2.       Cost of Repairs for APL Stack Cars

                  The cost of repairs to APL Stack Cars shall be allocated as
follows:

                                      -10-

<PAGE>

                           (a)     APL shall pay for or perform owner's
                                   responsibility repairs under the Car Rules.
                           (b)     UP shall pay for or perform those handling
                                   carrier responsibility repairs under the Car
                                   Rules that become necessary while an APL
                                   Stack Car is in the possession of UP.
                           (c)     APL shall be responsible for all repairs
                                   while an APL Stack Car is in the possession
                                   of a third party, including but not limited
                                   to another rail carrier.

                  3.       Cost of Repairs for Containers and Chassis

                  The cost of repairs to Containers and Chassis will be
allocated as follows:

                           (a)     APL shall pay for or perform owner's
                                   responsibility repairs under the Container
                                   Rules.
                           (b)     UP shall pay for or perform those handling
                                   carrier responsibility repairs under the
                                   Container Rules that become necessary while a
                                   Container or Chassis is in the possession of
                                   UP. If after joint investigation by APL and
                                   UP, the responsible party cannot be
                                   determined, the cost of handling carrier
                                   responsibility repairs shall be shared
                                   equally by APL and UP.
                           (c)     As between APL and UP, APL shall be
                                   responsible for all repairs while a Container
                                   or Chassis is in the possession of a third
                                   party, including but not limited to a motor
                                   carrier and other rail carriers.

                  4.       Repairs By Non-Responsible Party

                  If either party performs repairs to Containers or Chassis for
which the other party is responsible under this Section, the responsible party
shall pay the performing party as set forth in the Container Rules.

                                      -11-

<PAGE>

                  5.       Permission To Enter.

                  Only upon written request by APL, and after execution of a
signed Right of Entry Agreement, UP may permit APL or its contractor to enter
onto UP property at UP origins and UP destinations to bring personnel, material
and equipment onto that property, and to perform repairs to Containers, Chassis,
and Stack Cars on that property. This permission, if granted, shall be in
writing and shall not be unreasonably withheld.

Section 7.        SERVICE COMMITMENTS BY UP

                  Appendix 7 sets out the standards for UP's service performance
and the remedies if UP fails to meet those standards.

Section 8.        APL'S VOLUME COMMITMENT

                  Appendix 8 sets forth APL's volume commitment to UP and
remedies if APL fails to meet those commitments.

Section 9.        CAR COST COMPONENT AND USE OF APL OWNED STACK CARS

         A.       APL's Payment for Stack Cars.

                  Other than the domestic 20' and 40' rates applying from
Chicago, IL, Kansas City, MO and St. Louis, MO on the one hand, to Seattle, WA,
Portland, OR, Oakland, CA and Los Angeles, CA, on the other hand, the domestic
rates shown in Exhibit B include a car cost component equal to the average per
diem and mileage paid by UP to TTX and other rail carriers. The car cost
component is derived by the process described in Appendix 9.A.

B.       UP Use of and Payment for APL Owned or Leased Stack Cars.

                  1. For purposes of this Agreement, the terms "APL owned Stack
Cars" and "APL Stack Car" shall mean those cars owned by APL and/or Pacer as
well

                                      -12-

<PAGE>

as those cars leased by APL and/or Pacer bearing marks of "APLX" or "BRAN" or
any other mark Pacer arranges to be placed on Stack Cars for movement on UP
under this Agreement.

                  2. UP may use APL owned Stack Cars for the movement of APL
volumes, Pacer volumes or the volumes of other UP customers.

                  3. Appendix 9.B sets forth the parties' agreement regarding
per diem and mileage rates payable by UP for the use of, and other matters
regarding, the Stack Cars identified in Appendix 9.B.

Section 10.       OTHER APL OBLIGATIONS

         A.       Collection of Charges

                  APL shall pay UP the Rates set forth in Exhibit B, adjusted in
accordance with Section 13, as compensation for the transportation services
described in this Agreement. Payment shall be made within thirty (30) days of
receipt of an invoice from UP. However, if APL demonstrates that it received any
UP invoice more than six calendar days after the date of the invoice, the
payment period shall be extended, day for day, by the number of days beyond six
days. If APL does not pay UP within the specified time period at UP's request,
APL shall pay a late charge of 1.5% per month or the maximum rate then
permissible by law, whichever is less.

         B.       Shipping Orders

                  APL shall prepare shipping orders which will specify the rail
route of movement for the Containers listed on each shipping order.

                                      -13-

<PAGE>

         C.       UP Domestic Container Space

                  APL agrees to make available to UP's retail subsidiary, Union
Pacific Distribution Services ("UPDS") or its successors, a minimum of 25% of
the available domestic Container space on any given APL Train (hereinafter "25%
Allocation").

                  In the event UPDS does not fully utilize its 25% Allocation
during any calendar month for a particular traffic corridor, the total number of
Containers tendered by UPDS for Stack Car Train service in that corridor and
direction of movement in the following calendar month shall not exceed 200% of
the average per train tender for the month in which UPDS did not utilize its 25%
Allocation, not to exceed a 10-unit increase per Stack Car Train. For example,
if UPDS's current 25% Allocation for the Stack Car Train moving eastbound from
Oakland, California, is 50 Containers per train, and during a given calendar
month, UPDS tenders an average of 20 Containers per train, then UPDS's maximum
25% Allocation for the next month for that train will be 20 x 200% or a total of
10 additional Containers per train, whichever is less. In this example, UPDS's
new 25% Allocation on the eastbound Stack Car Train from Oakland, California,
would be 30 Containers per train.

Section 11.       EQUIPMENT STORAGE

         A.       Parking Spaces at Terminals

UP will provide parking spaces and spaces for empty chassis to APL at UP's
Global One facility pursuant to the terms and conditions specified in Appendix
11.

         B.       Equipment Storage Charges

                  UP will allow APL Equipment to be stored at points set forth
in Exhibit G, subject to the free time and charges set forth in that Exhibit.

                                      -14-

<PAGE>

         C.       Storage of Stack Cars

                  1. At UP's Global One facility, UP shall provide temporary
track space to store Stack Cars as specified in Appendix 11. UP will make
reasonable efforts to accommodate the storage of additional Stack Cars, that is,
Stack Cars above and beyond those Stack Cars specified in Appendix 11. Such
storage may be at Global One or elsewhere on UP controlled property. If UP is
unable to store additional Stack Cars, it will verbally notify APL. Within
twenty-four (24) hours of such notification, APL will verbally notify UP of
APL's desired disposition of these Stack Cars. All APL controlled Stack Cars
will remain in the APL account until delivered off-line.

                  2. UP shall provide temporary storage of APL Stack Cars
without charge when cargo volumes or other factors do not allow for continued
use of APL Stack Cars. When APL Stack Cars are stored by UP, UP shall be
relieved of paying the per diem charges as set forth in Section 4 of Appendix
9.B from the time the APL Stack Car is placed in storage until it is removed
from storage.

Section 12.     PARTICIPANT AND TPI SHIPMENTS

         A.       UP and Participants To Negotiate All Terms Other Than Rates
                  and Train Schedules

                  UP and APL agree that APL arranges for the transportation of
Participants' Containers with UP, as well as with other rail carriers. UP and
APL acknowledge that the terms and conditions of the transportation by rail
shall be agreed upon by UP and the Participants other than the Rates and Train
Schedules applicable to Participants for movement of their Containers.

                  Unless otherwise specifically advised in writing by APL, UP
acknowledges that APL has no authority as agent for the Participants to enter
into any agreement with

                                      -15-

<PAGE>

UP exculpating or in any way limiting UP's liability for cargo loss, damage,
delay or misdelivery, if any. UP shall issue bills of lading either directly or
through APL as agent of UP which advises Participants of the terms and
conditions of the rail transportation.

         B.       Participants' Volume Commitment

                  UP shall allow any Domestic Shipments tendered by a
Participant under this Agreement to count toward any annual volume commitment
which that Participant has with UP.

         C.       International Shipments for TPI Customers

                  Provisions for TPI Customer shipments are set forth in
Appendix 12.C.

Section 13.       RATES/ADJUSTMENT TO RATES

                  Appendix 13 sets forth UP's rates and charges to APL and the
adjustment mechanisms applicable to those rates and charges.

Section 14.       COMPETITIVE PROPOSALS

                  Appendix 14 sets forth provisions for the adjustment of UP's
rates and charges to APL as a result of specified market conditions and
competitive circumstances.

                                      -16-

<PAGE>

Section 15.       FORCE MAJEURE

                  In the event that either party is unable to meet its
obligations under this Agreement as a result of Acts of God, war, insurrection,
strikes, high winds, derailments which result in the normal route being
impassable, heat and cold weather speed restrictions, or any like causes beyond
its control, the performance obligations of the party or parties affected by the
force majeure condition shall be suspended to that extent for the duration of
such event; PROVIDED, HOWEVER, that the parties shall make all best faith
efforts to continue to meet their obligations during the duration of the force
majeure condition; and PROVIDED, FURTHER, that the party declaring force majeure
shall notify the other parties in writing when (a) the force majeure commences,
(b) the nature of the force majeure, and (c) when the force majeure condition is
terminated.

                  The suspension of any obligation owing to force majeure shall
neither cause the term of this Agreement to be extended nor affect any rights
accrued under this Agreement prior to the force majeure condition.

                  If the parties are unable to agree on whether an operating
condition constitutes a force majeure condition, the matter shall be brought to
the attention of the APL Vice President-Transportation Purchasing and the UP
Vice President-Intermodal within ten (10) days of the occurrence of the disputed
event for resolution by them.

                                      -17-

<PAGE>

Section 16.       ARBITRATION

       A.         Panel

                  If during the term of this Agreement any dispute between the
parties, except concerning loss and damage, should arise regarding the
interpretation, application or enforcement of any of the terms of this
Agreement, and such dispute cannot be resolved by the parties within sixty (60)
days after either of the parties notified the other of its desire to arbitrate
the dispute, then the dispute shall be settled by arbitration in accordance with
the rules then in effect of the American Arbitration Association. For
arbitration, a panel of three arbitrators shall be named, one to be selected by
UP, one to be selected by APL, and one to be selected by the other two
arbitrators. If the two arbitrators previously appointed by UP and APL cannot
agree upon the third arbitrator within fifteen (15) days, then either party may
apply to the presiding judge of any court of competent jurisdiction for
appointment of a neutral third arbitrator. In the alternative, the parties may
agree on a sole arbitrator.

         B.       Arbitrators' Findings and Rules of Evidence

                  The finding of the arbitrator shall be binding on the parties,
subject to provisions of the Federal Arbitration Act. No change in the rules of
arbitration which would deprive a party of the right to be represented by
counsel, to present evidence or to cross-examine witnesses presented by the
other party shall be effective in any arbitration proceeding arising out of this
Agreement.

         C.       Arbitrators' Duties

                  The arbitrators shall have no power to modify any of the
contract provisions without the parties' consent, and their jurisdiction is
limited accordingly. The

                                      -18-

<PAGE>

decision of the arbitrators shall be rendered within ninety (90) days after the
matter has been submitted.

         D.       Expenses

                  Each of the parties shall be responsible for the expenses
incurred by the arbitrator appointed by said party, and the expenses, fees and
cost of the third arbitrator, or sole arbitrator shall be borne equally between
the parties.

         E.       Confidentiality

                  Any terms and conditions of this Agreement as well as any
confidential cost information which must be disclosed by any party during the
course of arbitration shall only be disclosed pursuant to the arbitrators'
execution of a non-disclosure agreement acceptable to all parties.

Section 17.       RENEGOTIATION

         A.       If performance of the terms of this Agreement, as currently
written or as subsequently modified by the parties or by order, law, rule,
regulation of a competent governmental or regulatory authority would have a
material adverse effect on any party due to causes beyond the control of the
materially adversely affected party, then that party may request in writing that
any or all terms of this Agreement be renegotiated; PROVIDED, HOWEVER, that
competitive transportation proposals or offerings shall not be grounds for such
renegotiation. New terms so renegotiated shall become effective at the time a
renegotiated agreement is executed. If, after renegotiation in good faith, the
parties are unable to agree upon new terms within 90 days of the written request
for renegotiation, any party may terminate this Agreement by giving written
notice of termination to all other parties.

                                      -19-

<PAGE>

         B.       The mechanism for any party to this Agreement to request
renegotiation of Rates is set forth in Appendix 17.B.

Section 18.       MUTUAL INDEMNITY

                  Each party to this Agreement shall indemnify and hold the
other party harmless against all liability, loss, damage, and expense, including
attorneys' fees, reasonably incurred by the other party to the extent that such
liability, loss or damage is caused by the negligent or intentional act or by
any default under this Agreement by any employee, agent or subcontractor of the
indemnifying party. More specifically, UP shall be liable to APL for any loss or
damage to APL owned, leased or controlled Equipment or for any injury to any
employee, agent or subcontractor of APL caused by the negligent or intentional
act or failure to act by UP, its agents and subcontractors to the extent
provided by applicable law. If UP is found liable for such loss, damage or
injury, UP shall also be liable for any expenses, including attorneys' fees,
reasonably incurred by APL in resolving such claims.

                  APL shall be liable to UP for any loss or damage to UP owned,
leased or controlled Equipment or for any injury to any employee, agent or
subcontractor of UP caused by the negligent or intentional act or failure to act
by APL, its agents and subcontractors to the extent provided by applicable law.
If APL is found liable for such loss, damage or injury, APL shall also be liable
for any expenses, including attorneys' fees, incurred by UP in resolving such
claims.

                                      -20-

<PAGE>

Section 19.       CLAIMS FOR CARGO LOSS AND DAMAGE

       A.         Domestic Shipments and Third Party Equipment

                  Liability for loss or damage to any Equipment owned by persons
other than the parties to this Agreement shall be governed by the terms and
provisions of UP's Intermodal Rules and the AAR Container Rules.

                  Claims for loss or damage to Domestic Shipments shall be
handled by UP with the individual Participant, and UP's liability to the
Participant shall be as set forth in UP's Intermodal Rules. APL agrees to
cooperate with UP in settling any claims for loss or damage to Domestic
Shipments or to Equipment owned by persons other than the parties to this
Agreement.

       B.         International Shipments

                  This section shall govern claims arising out of International
Shipments only.

                  1.       Duties of Parties

                  UP and APL each undertake, with respect to the other,

                           (a) to cooperate with each other to settle
International cargo and Equipment damage claims, and to do nothing to increase
the liability or exposure of the other party to increased cargo or equipment
damage claims.

                           (b) to accept liability for actual cargo shortage
when a seal is breached while the cargo is in its possession, unless that party
can produce an executed interchange receipt or other documentation showing that
the seal was broken when the cargo was first received by the party;

                           (c) to accept liability for cargo and Equipment
damage when carrying Equipment is damaged while in its custody or that of its
agents, unless such

                                      -21-

<PAGE>

party can produce duly executed interchange receipt documentation or other
documentation evidencing that the Equipment was damaged when first received by
such party or that cargo damage was caused by other than such party's handling.
APL will provide all pertinent documentation including any communications from
the individual cargo interest relating to the shipment and all APL
correspondence with the individual cargo interest relating to the shipment as
well as any reports or communications made or ordered by APL while the shipment
was in the possession of APL, including, but not limited to, bills of lading,
dock receipts, trailer interchange records, and surveys made of the cargo or
equipment.

                           (d) Nothing in this Agreement shall be defined or
construed to make the package or liability limitations of C.O.G.S.A. unavailable
to UP.

         C.       Processing of Cargo Claims

                  When APL refers a cargo claim either for Domestic or
International Shipments, to UP, UP shall:

                  (a) acknowledge receipt of the referred claim to APL within 30
days of such receipt; and,

                  (b) within 120 days after receipt of the completed referred
claim,

                      (1) pay the claim;

                      (2) decline to pay the claim and furnish an explanation of
denial together with any supporting documentation for the denial; or

                      (3) advise APL as to the status of the claim as required
by Part 1005 of Title 49, Code of Federal Regulations.

                                      -22-

<PAGE>

         D.       Notification of Damage

                  Whenever substantial cargo or Equipment damage is brought to
the attention of UP's Damage Prevention Services while the cargo or Equipment is
in the possession of UP, UP shall promptly notify APL concerning the extent of
damage as well as the location and availability of the cargo and Equipment for
inspection, APL shall thereafter notify the cargo interest of any damaged cargo
and obtain the instructions of the cargo interests, if any, and furnish advice
of disposition to UP. UP shall not dispose of any cargo and/or Equipment without
APL's written authorization to do so. Whenever substantial damage is brought to
the attention of APL while the cargo is in the possession of APL, APL shall
promptly notify UP's Damage Prevention Services as to the nature of the damage
and location of the Equipment.

         E.       Agreement Only for Benefit of Party

                  Except as otherwise provided herein, this Agreement shall not
be interpreted as intended for the benefit of, or as providing any legal remedy
for, any person not a party hereto.

         F.       Condition Precedent

                  As a condition precedent to recovery on claims for loss or
damage, the liability of UP shall be limited to those cargo claims which are
filed with UP by cargo interests, or by APL when the claim rights of cargo
interests have been subrogated to APL, in writing within nine months (9) from
the date that UP has completed performance under the through bill of lading for
such shipment; PROVIDED, HOWEVER, that for shipments moving via UP direct or
where UP is solely responsible for said loss or damage, said filing period shall
be extended to twelve (12) months from the date UP has completed performance
under the through bill of lading when said claim is filed with

                                      -23-

<PAGE>

UP by cargo interests directly, and said filing period shall be extended to
fourteen (14) months from the date UP has completed performance under the
through bill of lading when said claim is filed with UP by APL on behalf of
cargo.

Section 20.       HAZARDOUS MATERIALS AND RESTRICTED COMMODITIES

         A.       Hazardous Materials

                  In the event that any International or Domestic Shipment
contains hazardous material, APL International or APL shall obtain certification
on the shipping documents received from the consignor that the consignor has
complied with all appropriate federal regulations governing the transportation
of such hazardous materials, including, but not limited to, regulations
concerning loading, blocking, bracing, documentation, placarding, commodity mix,
and packaging. APL shall furnish UP (or the origin carrier) with the hazardous
materials information prior to acceptance for transportation by UP. UP reserves
the right to refuse to accept or restrict hazardous materials. UP shall supply
APL with a list of prohibited hazardous materials not later than 30 days prior
to UP's refusal to accept such hazardous materials under this Agreement.

         B.       Indemnity

                  APL shall indemnify UP for all losses, damages, liabilities,
fines, civil penalties and expenses (including attorney's fees) suffered by UP
to the extent caused by the omission of full disclosure required by this Section
or by applicable law or regulation.

                  Containers discovered leaking hazardous materials at any UP
destination terminal shall not be allowed to leave the premises until (a)
responsibility therefor is

                                      -24-

<PAGE>

determined and/or the leak is repaired, or (b) UP obtains permission from the
involved Government authorities to move the shipment.

         C. Duty of Cooperation
            -------------------

            The parties recognize that, as to Domestic Shipments, the primary
responsibility for any spill, discharge, or accident resulting from a failure by
the consignor to comply with applicable federal regulations shall be the
responsibility of the Participants; and that, in the event of a spill,
discharge, or accident resulting from the failure of a consignor or one or more
Participants to properly package, block, brace, or load hazardous materials, or
in the event of a claim, lawsuit, judgment, settlement, citation, fine or
penalty arising out of such failure, UP shall assist APL by furnishing all
relevant communications, data, information and reports to APL.

Section 21. FEDERAL CONTRACTOR REQUIREMENTS
            -------------------------------

         A. Applicable Laws
            ---------------

            The parties, each for its own part, shall comply with and give all
representations and further assurances required by any law or regulation
applicable to federal contracts and subcontracts including, without limitation,
the following:

            (1) the extent applicable, the Renegotiation Act of 1951, as
amended, (50 U.S.C. App.ss.ss.1211 et seq.,), the Walsh-Healy Public Contracts
Act, as amended (41 U.S.C.(S)(S) 35, 45), and the Contract Work Hours and Safety
Standards Act, as amended (40 U.S.C.(S)(S) 327,333);

            (2) to the extent applicable, Executive Order No. 11246 dated
September 24, 1965, as amended, relating to equal employment opportunity and
affirmative action in employment of persons without regard to race, color,
religion, sex or national origin; Executive Order No. 11701 dated January 24,
1973, relating to

                                      -25-

<PAGE>

affirmative action in the employment of certain veterans; Executive Order No.
11758 dated January 15, 1974, relating to affirmative action in employment of
handicapped individuals; Executive Order No. 11 625 dated October 13, 1971,
relating to the assistance of minority business enterprises; Executive Order No.
12138 dated May 18, 1979, relating to the assistance of women's business
enterprises; the Age Discrimination Act of 1975; all applicable Regulations of
the Secretary of Labor, including, but not limited to, 41 C.F.R.(S)(S)60-1.4 et
seq.; 41 C.F.R.(S)(S)60-250 et seq.; and 41 C.F.R. (S)(S) 60-741 et seq.; and
all applicable Federal Procurement Regulations including, but not limited to, 41
C.F.R.(S)(S)1-1.13 et seq.; and,

            (3) to the extent applicable, Defense Acquisition
Regulations-104.14, relating to the utilization of small business and minority
business concerns; and 7-104.20, relating to the utilization of labor surplus
area concerns.

         B. Certification
            -------------

            Each party hereby certifies to the other that it does not and shall
not maintain any facilities provided for employees which are unlawfully
segregated, that it does not and shall not permit employees to perform services
at any location under its control or that of its subcontractors where unlawfully
segregated facilities are maintained, and that it shall require its non-exempt
subcontractors to furnish a similar certification to the award of any non-exempt
contract.

Section 22. OTHER AGREEMENTS
            ----------------

            This Agreement and the Original Agreement, as amended and
supplemented and in effect through the date of this Agreement (including,
without limitation, the Letter of Understanding dated April 4, 2002, between the
parties), together comprise the entire agreement and understanding between the
parties

                                      -26-

<PAGE>

regarding the subject matter hereof and thereof and supersede all other existing
and prior agreements between the parties with respect to such subject matter;
provided, however, that the termination of any and all existing and prior
agreements shall not release any party from any obligation that may have accrued
under those agreements prior to such termination.

Section 23. WHEN TERMS AND PROVISIONS OF UP'S INTERMODAL RULES APPLY
            --------------------------------------------------------

            The provisions relating to the applicability of UP's
Intermodal Rules are set forth in Appendix 23 and Exhibit Z.

Section 24. ASSIGNMENT
            ----------

            Except as expressly allowed by this Section, no party to this
Agreement may assign this Agreement, in whole or in part, or assign any rights
granted by or under this Agreement, or delegate to any person not a party to
this Agreement any of its obligations under this Agreement without the prior
written consent of the other party. In the event of an acquisition or merger of
UP by another Class I railroad or by UP of another Class I railroad, APL
International, APL Co. and/or LTS have the right (1) to refuse its agreement to
allow UP to assign this Agreement to the acquiring or merging party(ies) and (2)
if UP attempts to assign this Agreement, to terminate this Agreement upon thirty
(30) days written notice at any time subsequent to the consummation of the
transaction between UP and the other party(ies). Similarly, in the event of a
major restructuring of APL International, APL Co. and/or LTS which (a) would
result in a significant change in the volume of Containers tendered by APL
International, APL Co. and/or LTS to UP or (b) would significantly increase the
cost of doing business for UP or (c) would significantly change UP's operational
or administrative efficiency of doing

                                      -27-

<PAGE>

business with APL International, APL Co. and/or LTS, or (d) would significantly
impact UP's position negatively in the intermodal market; UP has the right to
refuse its agreement to allow APL International, APL Co. and/or LTS to assign
this Agreement. However, if the major restructuring of APL International, APL
Co. and/or LTS does not result in any of the changes described in (a) through
(d) of the immediately preceding sentence, APL International, APL Co. and/or LTS
may assign this Agreement without UP's consent. In the event that UP's consent
is required because a major restructuring of APL International, APL Co. and/or
LTS would result in (a), (b), (c) , or (d) above, and UP does not grant its
consent to the assignment on that basis, the parties shall engage in
renegotiation of the Agreement in an effort to obtain UP's consent. In the event
the parties cannot successfully renegotiate this Agreement, LTS shall have the
right to terminate this Agreement in its entirety as to all parties. In the
event that LTS terminates this Agreement pursuant to the above sentence, APL
International, APL Co. and LTS will transition their business to a new carrier
as soon as possible, but no longer than six (6) months after termination of this
Agreement. Subject to this Section, this Agreement shall be binding upon and
inure to the benefit of the parties hereto and to their permitted successors and
assigns.

          For purposes of this Section, a major restructuring is defined as a
merger, sale of substantially all assets or other change of control. An initial
public offering of shares of APL International, APL Co. and/or LTS shall not be
considered to result in any of the changes described in (a) through (d) above;
and, therefore, shall not be considered to require UP's consent to assignment of
this Agreement.

                                      -28-

<PAGE>

Section 25. YEAR 2000 COMPLIANCE
            --------------------

            UP and APL each represent and warrant (i) it has audited its
computer hardware and software systems which will be utilized in connection with
this Agreement and (ii) that accurate and current information regarding the Year
2000 Compliance status of such hardware and software systems and the party's
plans to address Year 2000 Compliance problems have been supplied or made
available to the other party. UP and APL each further represent and warrant that
they will cooperate with each other in providing or making available updated
information regarding their Year Compliance program upon reasonable request.

            Any costs associated with effectuating Year 2000 Compliance shall be
borne by each party and shall not result in any additional charges to the other
under this Agreement.

            When data is exchanged between UP and APL as part of this Agreement,
UP and APL each agree to provide to the other, at no additional cost, reasonable
testing assistance and cooperation in order to verify Year 2000 Compliance. Each
party shall designate a Year 2000 Technical Contact person with sufficient
knowledge, experience, and expertise in areas of the Year 2000 problem and the
party's systems environment, who will be available to facilitate answering
questions, coordinate deliverables for testing Year 2000 compliance and provide
other assistance as needed.

            For purposes of this Section, "Year 2000 Compliance" means that each
computer hardware and software system or component thereof (including without
limitation hardware, firmware, middleware, custom or commercial software,
internal components or subroutines therein, or databases which perform any
date/time data recognition function, calculation, comparing or sequencing) will
(a) accurately record,

                                      -29-

<PAGE>

process, store and display date and time data (including but not limited to
calculating, comparing and sequencing) on dates from, into and between different
centuries, including the years 1999 and 2000 and including leap year
calculations, (b) will respond to two-digit date input in a way that resolves
any ambiguity as to century in a disclosed and defined manner, (c) will store
and provide output of date information in ways that are unambiguous as to
century, and (d) will conform to the foregoing requirements when interfacing
with operating systems and other software, hardware and systems with which it
will interact in performing any obligations under this Agreement.

Section 26. NOTICES
            -------

            Except as provided otherwise in this Agreement, any and all notices
given by any party under this Agreement shall be in writing and shall be
delivered (postage or other delivery charges prepaid) to the other parties by
USPS Express Mail, UPS, DHL, Federal Express or other established expedited
courier service, telecopy, facsimile or like wire delivery or any other
commercially reasonable and accepted form of delivery, excluding regular U.S.
Postal Service, to the following addressees:

            To LTS:             Pacer International, Inc.
                                2300 Clayton Road, Suite 1200
                                Concord, California 94520
                                ATTN: Vice President-Transportation Purchasing

            To APL Co./         American President Lines, Ltd.
             APL International: APL Co. PTE, Ltd.
                                1111 Broadway
                                Oakland, California 94607
                                ATTN: Vice President-Transportation Purchasing

            To UP:              Union Pacific Railroad Company
                                1416 Dodge Street
                                Omaha, NE 68179
                                ATTN: Vice President -Intermodal

Any written notice given under this Agreement shall be deemed effective on the
date the notice is received.

                                      -30-

<PAGE>

Section 27. CONFIDENTIALITY
            ---------------

            The parties agree that the commercial terms of this Agreement and
its appendices are confidential and proprietary, and that unauthorized
disclosure could be damaging from a commercial or competitive standpoint under
many circumstances. Therefore, except as otherwise provided in this Agreement
and except to the extent required by law, the contents of this Agreement shall
not be disclosed or released by any party to anyone other than that party's
employees on a "need to know" basis without the written consent of the other
party during the term of this Agreement and for one (1) year thereafter. Any
employee having access to any part of this Agreement or to any information
contained within the Agreement must agree to abide by the terms of this
provision. This includes, without limitation, rate information of any kind,
customer identities, traffic volumes and commodities moving via APL, train
schedules and/or performances, and any other information learned by one party
about the other's business during the course of their dealings thereunder.

Section 28. VENUE
            -----

            Any lawsuits filed by either party against the other arising from
any dispute between the parties during the term of this Agreement shall be
brought in the San Francisco, California judicial district, either state or
federal.

Section 29. APPLICABLE LAW
            --------------

            This Agreement shall be interpreted, construed and enforced in
accordance with the laws of the State of California, without reference to the
laws of any other jurisdiction except to the extent governed by the laws, rules
and regulations of the United States.

                                      -31-

<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed as of the day and year first written above.

UNION PACIFIC RAILROAD COMPANY              Attest:



By:  /s/ Ivan Evans
    ---------------------------------
Title: President and C.O.O.
       ------------------------------                           Secretary



PACER INTERNATIONAL, INC.                   Attest:
  d/b/a Pacer Stacktrain

By:  /s/ Larry Yarberry
    ---------------------------------
Title: Executive Vice President
       ------------------------------                           Secretary



AMERICAN PRESIDENT LINES, LTD.              Attest:



By:  /s/ Timothy J. Windell
    ---------------------------------
Title: Vice President
       ------------------------------                           Secretary



APL CO. PTE LTD.                            Attest:



By:  /s/ Timothy J. Windell
    ---------------------------------
Title: Authorized Signatory
       ------------------------------                           Secretary


<PAGE>

                               List of Appendices
                               ------------------

Appendix 6.B      --       Stack Car Supply

Appendix 7        --       UP's Service Performance Standards

Appendix 8        --       APL's Volume Commitment

Appendix 9.A      --       Car Cost Component

Appendix 9.B      --       Rates for Use of APL Stack Cars, Etc.

Appendix 11.A     --       Parking Spaces at Terminals

Appendix 12.C     --       International Shipments for TPI Customers

Appendix 13       --       Rates/Adjustments to Rates

Appendix 14.      --       Competitive Proposals

Appendix 17.B     --       Renegotiation of Rates

Appendix 23       --       When Terms and Provisions of UP's Intermodal Rules
                           Apply


                                List of Exhibits
                                ----------------

Exhibit A     --  Definitions

Exhibit B     --  Rates per Container and Empty Repositioning Rates

Exhibit C     --  Kearny Trains

Exhibit D     --  Geographic Areas for APL Volume Commitment

Exhibit E     --  [Intentionally Left Blank]

Exhibit F     --  TPI Accounts

Exhibit G     --  Free Time and Storage Provisions at UP Terminals


Exhibit X     --  Southern Corridor International Rates

Exhibit Y     --  Average Daily Tender

Exhibit Z     --  UP Intermodal Rules Not Applicable to AP

<PAGE>

                                                                   APPENDIX 6.B.

                                Stack Car Supply

                  The parties recognize that occasional regional or national
shortages of Stack Cars can occur. In such situations, UP agrees to provide APL
with priority and preference over other UP customers and over any domestic
container products which UP offers. APL shall have preference and priority as
to:

                  1.    the supply of empty Stack Cars on hand at any given UP
facility;
                  2.    the repositioning of empty Stack Cars from surplus to
deficit locations;
                  3.    the loading of APL containers in available Stack Car
slots at all intermodal terminals where APL volumes are tendered to UP.

                                  Appendix 6.B

<PAGE>

                                                                      APPENDIX 7

                       UP's Service Performance Standards

         A.   Service Performance Standards for Loaded Containers on Stack Cars

              1.       Service Lanes

              For loaded Containers moving on Stack Cars, UP shall transport
such Containers in compliance with the Service Performance Standards set forth
below. The Service Performance Standards shall apply to all APL Containers
whether moving on a Dedicated APL Train or on other UP intermodal trains.
Fourteen Service Lanes will be measured separately on UP. Those Service Lanes
are:

              Service Lane 1: Traffic moving from the Pacific Northwest to
Chicago.
              Service Lane 2: Traffic moving from Chicago to the Pacific
Northwest.
              Service Lane 3: Traffic moving from Southern California to
Chicago.
              Service Lane 4: Traffic moving to Southern California from
Chicago.
              Service Lane 5: Traffic moving from Northern California to
Chicago.
              Service Lane 6: Traffic moving from Chicago to Northern
California.
              Service Lane 7: Traffic moving from Chicago to Laredo.
              Service Lane 8: Traffic moving from Laredo to Chicago.
              Service Lane 9: Traffic moving from southern California to the
southeast, including New Orleans and the Norfolk Southern ("NS") interchange at
New Orleans.
              Service Lane 10: Traffic moving to southern California from the
southeast, including New Orleans and the NS interchange at New Orleans.
              Service Lane 11: Traffic moving from southern California to
Memphis.

                                App. 7 - Page 1


<PAGE>

              Service Lane 12: Traffic moving to southern California from
Memphis.
              Service Lane 13: Traffic moving from southern California to Texas.
              Service Lane 14: Traffic moving to southern California from Texas.

              2.       Service Performance Standards

              Each Service Lane shall be measured separately in each Calendar
Month. UP's performance will be measured on the trains whose scheduled Arrival
time is during that Calendar Month. The Service Performance Standard for each
Service Lane is eighty percent (80%) except that for 3rd AM trains from Chicago
to Los Angeles and to Northern California ("3rd AM Trains") and for selected
Eastbound trains destined to Kearny, New Jersey ("Kearny Trains"), the Service
Performance Standard shall be ninety percent (90%). The Kearny Trains are
identified in Exhibit C.

              In order to meet these Service Performance Standards, for each
Calendar Month UP must make Available or Interchange not less than the
applicable percentage of all loaded Containers for each Service Lane at or in
advance of the applicable scheduled Availability or interchange times set forth
in the Train Schedules.

              Any APL Train Schedules shall not be changed without the consent
of APL which shall not be withheld unreasonably. "APL Train Schedules" refer to
the schedules for those trains on which APL containers regularly comprise
twenty-five percent (25%) of the total number of containers transported on the
train. In the event APL Containers regularly comprise 25% or more of the total
number of Containers transported on a train moving in a lane for which APL has
no Volume Commitment, but another UP customer has a contractual commitment to
that train, UP will have the right to alter the train schedule as required by
UP's commitment in the other contract without

                                App. 7 - Page 2

<PAGE>

the consent of APL, provided UP notifies APL of the intended changes to the
Train Schedule.

              3.       Specific Measures for Service Performance

              If UP is required to set out a bad order Stack Car en route, no
additional hour will be added to the schedule of the train that sets out the bad
order Car and one hour will be added to the schedule of the train that picks up
the bad order Car.

                       a.       UP Terminals

                       In the Eastbound or Southbound direction, performance
will be measured against the scheduled Availability and interchange time for UP
at destination terminals or at designated interchange points in the Service
Lanes specified in Section A.1 of this Appendix 7. In the Westbound or
Northbound direction, UP's performance will be measured against the scheduled
Availability time at each destination terminal in the Service Lanes specified in
Section A.1 of this Appendix 7. Seattle and Portland volumes will be aggregated
to determine UP's performance in any given Monitoring Period.

                       b.       UP On-Dock

              In the event that APL initiates service to an "on-dock" terminal
at any West Coast location for International, or International and Domestic,
Containers, UP's performance will be measured against the scheduled interchange
time to the rail carrier servicing the on-dock facility or against the scheduled
time of placement of loaded Stack Cars at the on-dock terminal when UP makes
such placements.

                       c.       Other

              In the event that a Container is excluded from the performance
measure, UP will still make its best effort to transport the Container on a
timely basis and at the

                                App. 7 - Page 3

<PAGE>

hourly transit time reflected in the applicable Train Schedules.

              The Service Performance Standards shall not apply to any loaded
Container where the actions of APL, a Participant or their agents, or a Force
Majeure condition prevent UP from meeting a Train Schedule. This includes the
following: lack of Chassis, a late ship, a lack of proper and/or complete
documentation, a failure to tender a Container in advance of the scheduled
"cut-off " time as set forth in the Train Schedule or adjusted gate cutoff times
made at APL's request with UP's consent. If UP believes that an event has
happened which was within APL's control and that event prevented UP from meeting
a Train Schedule, the parties will confer in good faith to determine if the
Service Performance Standards should apply to the affected Containers.

              4.       Force Majeure Conditions

              If a Container incurs a force majeure condition but UP still makes
the scheduled Availability or interchange, that Container will be included in
the Service Performance measure. Force majeure conditions are set forth in
Section 15.

              5.       Service Standard Adjustments Due to Maintenance

              Each year UP will evaluate its maintenance of way programs and
discuss with APL the potential implications of maintenance on the Service
Performance Standards. Included in the evaluation may be a proposal to change a
specific Service Performance Standard for a period of time during certain
maintenance periods. APL will review these proposals and will not unreasonably
withhold its consent to potential changes. APL will make its best efforts to
work with UP to accommodate repair programs. However, in no event will the
proposed change from the Service Performance Standard be greater than 5%.

                                App. 7 - Page 4


<PAGE>

          6. Cross-Town Standards

          Service performance standards for crosstown movements by truck of
Containers for the ZLAAP Trains or their successor trains are as follows:

          10 containers by 1700

          10 containers by 1800

          15 containers by 1900

          20 containers by 2000

In the event that the volumes being excluded from the above crosstown measure
become excessive, UP and APL agree to negotiate in good faith to establish new
standards to increase the volume included in the measurement process.

          7. Service Performance Compliance Reports

          APL and UP shall each monitor compliance with the Service Performance
Standards. APL and UP shall use their best efforts to develop a joint report
measuring each Monitoring Period ("UP Service Performance Report"). The UP
Service Performance Report shall include each Container number, the Train
identification number for each Container, the scheduled Availability or
interchange of each Container, the actual Availability or interchange of each
Container, and the time each Container was removed from the terminal.

      B.  Penalties for Failure to Meet Service Performance Standards

          1.   Default Condition

          If UP fails to meet its Service Performance Standards in any period of
three consecutive Calendar Months or five Calendar Months in any twelve
consecutive Calendar Months, UP will be in default of its Service Performance
Standards ("Default Condition"). APL is not required to notify UP of this
Default Condition.

                                App. 7 - Page 5

<PAGE>

          2.   Related Service Lanes

          The following traffic is defined as being in Related Service Lanes:

               (a) Service Lanes 1 and 2;

               (b) Service Lanes 3 and 4;

               (c) Service Lanes 5 and 6;

               (d) Service Lanes 7 and 8;

               (e) Service Lanes 9 and 10;

               (f) Service Lanes 11 and 12;

               (g) Service Lanes 13 and 14.

          3.   Correction of Default Condition

          UP may correct the Default Condition if its average performance in the
next three Calendar Months ("Correction Period") meets the Service Performance
Standards. For example, if UP fails in Calendar Months One, Two and Three, and
the current Service Performance Standard is 80% , if UP's performance in
Calendar Months Four, Five and Six (the "Correction Period") averages 80%, then
UP will have corrected the Default Condition. UP will have one such Correction
Period during each period of twelve (12) consecutive Calendar Months commencing
with the effective date of the Agreement. The Correction Period is included in
the eighteen consecutive Calendar Months.

          4.   Elimination of APL Volume Commitment

          If UP fails to remedy the Default Condition or has exhausted its
available Correction Periods as to the 80% Service Standard, then APL's Volume
Commitment as defined in Section A of Appendix 8 shall be eliminated for the
affected Service Lane(s) and Related Lane(s), including any 3rd AM Trains or
Kearny Trains which are moving in

                                App. 7 - Page 6

<PAGE>

the affected Service Lane(s) or Related Service Lane(s). If UP fails to remedy
the Default Condition or has exhausted its available Correction Periods as to
the 90% Service Standard, then APL's Volume Commitment as defined in Section
8.A. shall be eliminated for that percentage of APL's Volume Commitment
represented by the affected Train(s). If APL does not divert its business during
the six Calendar Months following UP's Service Performance Failure, and provided
that UP meets the Service Performance Standard in each of the six Calendar
Months, then APL's Volume Commitment for the involved Service Lane and Related
Service Lanes is reinstated. If UP fails to meet the Service Performance
Standards in any of the six Calendar Months, then APL's Volume Commitment for
the involved Service Lane and Related Service Lanes is eliminated for the
remainder of the Agreement.

          APL will provide UP with sixty days advance written notice of its
intended diversion of traffic ("Notice of Diversion"). If APL diverts a portion
of its traffic in the affected Service Lanes, and UP meets the Service
Performance Standard in each of the six Calendar Months, then APL's Volume
Commitment will be reinstated for the traffic which APL did not divert from
these Service Lanes. Regardless of APL's diversion of traffic, all other
provisions of the Agreement will continue to apply to traffic which APL
continues to offer to UP under this Agreement.

          5.   APL's Sole Remedy

          If UP fails to remedy a Default Condition as set forth in Section B.3
of this Appendix 7, APL shall have the right, in its sole discretion, to divert
its traffic, in whole or in part, temporarily or permanently, to other carriers.
Except as provided in Section B.6 of this of this Appendix 7, the foregoing
right to divert shall be APL's sole right against UP for UP's failure to correct
a Default Condition within the Correction Period.

                                App. 7 - Page 7


<PAGE>

          6.   UP's Sole Remedy

          If APL notifies UP that it plans to divert some or all of its traffic
under Section B.4 of this Appendix 7, UP shall have the right to request
expedited, single issue arbitration as set forth in Section C of this Appendix
7. It shall not be a defense available to UP in an arbitration proceeding
brought under this subsection that APL (i) will not be able to improve its
service by diverting to another carrier; (ii) will have to pay higher (or lower)
Rates to the carrier to which APL's traffic is to be diverted, or (iii) has some
other motive unrelated to UP's performance under this Agreement for desiring to
divert its traffic to another carrier.

     C.   Expedited Arbitration

          If UP desires to invoke single-issue arbitration under this
subsection, it shall serve its written demand on APL within ten working days
after its receipt of APL's Notice of Diversion. It shall simultaneously identify
the arbitrator of its choice. APL shall have ten working days from receipt of
UP's written demand for arbitration to select its arbitrator and to notify UP.
The two arbitrators shall have twenty working days to select a third neutral
arbitrator. In the event that the two arbitrators are unable to agree on a third
arbitrator, they shall submit the issue to the Chief Judge of the United States
District Court for the Northern District of California to select the third
arbitrator from a list of six candidates nominated by the parties. UP and APL
shall each nominate three persons. Each candidate shall have substantial
expertise in some phase of rail freight transportation.

          Following the selection of the third arbitrator, the issue of whether
UP has failed to meet its Service Performance Standards shall be expeditiously
arbitrated. It is

                                App. 7 - Page 8

<PAGE>
<PAGE>

the goal of UP and APL to have the issue decided within sixty days after the
three arbitrators are impaneled.

          The arbitration proceeding shall be conducted in accordance with the
rules and procedures set forth in Section 16 of this Agreement, but in the event
of inconsistencies between the terms of this Appendix 7 and Section 16, this
Appendix 7 shall govern. The decision of the arbitrators shall be final, and
neither party shall have the right to appeal the decision or to seek a trial de
novo in any court of law.

          If UP invokes arbitration under this subsection, APL shall not divert
any traffic identified in its Notice of Diversion until the arbitration
proceedings have been completed and a decision is issued.

     D.   Continued Duty of Cooperation

          In the event of APL's diversion of its traffic under this Section,
both parties shall be obligated to cooperate with one another to the maximum
extent possible to wind down their business relationship related to the diverted
traffic in a reasonable and business-like manner so as to avoid imposing
unnecessary hardships on each other, or on their joint customers, joint
suppliers/vendors, or employees. In that regard and at the time of APL's
diversion, UP shall be required to deliver to APL's new railroad operators at
UP's expense a sufficient number of Stack Cars, both APL owned or leased from
TTX or other parties, to efficiently accommodate APL's volume of business and to
allow APL unconstrained access to UP's terminals for the purpose of removing all
APL Containers, chassis, office fixtures, supplies, and related articles, owned,
leased or otherwise under the control of APL. The number of Stack Cars to be
delivered will be determined by comparing APL's then current volume of traffic
in the diverted Service lanes to the then current turn time of Stack Cars in
those Service Lanes. UP agrees to maintain a

                                App. 7 - Page 9


<PAGE>

sufficient number of Stack Cars owned by TTX Company in UP's possession or
control so as to facilitate any needed diversion by APL, until the transition to
the new carrier is complete.

          E.   Completion of Performance

          In the event of APL's diversion of traffic under this Section, both
parties shall be required to complete any contractually required performances
begun prior to the announcement by APL of its Notice of Diversion, including,
but not limited to, UP's delivery of Containers tendered prior to the date of
termination and APL's payment for such transportation services.

                                App. 7 - Page 10

<PAGE>

                                                                      APPENDIX 8

                             APL's Volume Commitment

         A.       Minimum Traffic Volume Commitment

                  Effective as of January 1, 1999, APL's Volume Commitment is
comprised of the following elements: During each twelve month period of this
Agreement, APL shall tender to UP for movement under the terms of this Agreement
95% of its high cube domestic business, 95% of its international business
originating or terminating at California ports; and 85% of its international
business to and from the Pacific Northwest. APL shall also tender 95% of its
westbound domestic 20' and 40' Containers to California for movement under this
Agreement and 85% of its domestic 20' and 40' containers to the Pacific
Northwest for movement under this Agreement. This Volume Commitment shall apply
only to Service Lanes 1 through 14 as further specified in Exhibit D.

                  This Volume Commitment does not apply to shipments tendered
through APL Intermodal Management Services, a division of American Consolidation
Services of North America, Ltd., when those shipments are not tendered to LTS.

                  B.       APL Written Statement

                  Within thirty (30) days following the end of each twelve (12)
month period of this Agreement, at UP's request, APL shall submit a written
statement to UP indicating whether it is in compliance with the Volume
Commitment applicable under this Section. UP shall have the right to audit, at
its expense, appropriate APL records to verify APL's compliance with the Volume
Commitment. If the audit determines that the APL Statement is materially
inaccurate, APL shall reimburse UP for the expense of the audit.

                                App. 8 - Page 1


<PAGE>

     C.   Compensation for Failure to Meet Volume Commitment

          In the event that APL fails to meet the Volume Commitment in any
twelve (12) month period under this Agreement, APL shall pay to UP a payment
equal to $76.00 times the number of loaded Containers by which APL fell short of
meeting the Volume Commitment. Such payment shall not be deemed a penalty, but
compensation for UP's lost contribution on these Shipments. APL shall make any
payment to UP within thirty (30) days after receipt of an invoice from UP for
that twelve (12) month period.

                                 App. 8 - Page 2

<PAGE>

                                                                    APPENDIX 9.A

                               Car Cost Component

The car cost component is derived by the following process:

          1.   The system average per diem and mileage rates are determined for
Stack Cars moving over the UP system. This will be a weighted average of all
articulated TTX and foreign line railroad owned Stack Cars moving over the UP
rail system. As example, if the TTX per diem rate is $65 per day and the foreign
line railroad owned per diem rate is $80 per day, and if 90% of the Stack Cars
used by UP are TTX cars and 10% are foreign line cars, then the weighted average
per diem rate would be $66.50 per day. If the TTX mileage rate is 6.5 cents per
mile and the foreign line railroad mileage rate is 4.5 cents per mile, then the
UP system average would be 6.10 cents per mile. UP will calculate and provide
the system average per diem and mileage rates to APL. In the event that APL
disputes any of the numbers provided by UP, then APL can audit UP's calculations
through use of an independent auditor. In the event that UP's numbers are proven
to be substantially correct, then APL will pay all costs of the audit. If UP's
numbers are found to be incorrect, then UP will pay all costs of the audit.

          2.   The average transit time is calculated for APL volumes moving by
direction for each origin and destination pair shown for APL Train Schedules.
The transit time will be stated in whole days and will be calculated using the
scheduled transit time as provided in train schedules used to move APL volumes.
To the extent that multiple train schedules are used from one origin to one
destination, the transit time will be calculated using a weighted average based
on APL's volumes moved on the different train schedules. One-half day of origin
and one-half day of destination dwell

                                App. 9A - Page 1

<PAGE>

time will be included in the transit time. Dwell time is the time that Stack
Cars sit idle at a terminal waiting to be loaded or unloaded. The transit time
and dwell time together will be considered as the one way "turn time" for each
origin/destination pair. The turn times will be agreed upon by the Parties for
each origin/destination pair.

          3.   The UP rail mileage will be determined for each
origin/destination pair shown in Exhibit B, Part III.

          4.   The average per diem rate determined in Sub-paragraph 9.A.1. will
be multiplied by the turn time derived under Sub-paragraph 9.A.2. The average
mileage rate determined under Sub-paragraph 9.A.1. will be multiplied by the
mileage determined under Sub-paragraph 9.A.3. The resulting per diem and mileage
charges will be added together and rounded to the nearest whole dollar to form
the average Stack Car cost. This total will then be divided by ten (10) to
derive the car cost component for 40', 45', 48' and 53' domestic container
rates. The total will be divided by twenty (20) to derive the car cost component
for 20' domestic container rates.

          5.   Effective as of February 1, 2000, the car cost component will be
adjusted every two years utilizing the weighted system average of TTX and
foreign line railroad Stack Cars moving on UP and the transit times for APL
volumes moving from and to each specific origin/destination pair shown in
Exhibit B during the calendar year prior to the adjustment. As example, the
February 1, 2000 adjustment will be based on data from calendar year 1999.

                                App. 9A - Page 2

<PAGE>

                                                                    APPENDIX 9.B

                     Rates for Use of APL Stack Cars, Etc.

     Effective as of August 20, 2001, for the balance of the term of this
Agreement (unless otherwise modified by the parties), UP shall pay to Pacer the
per diem and mileage rates set forth below for the Stack Cars identified in
below:

Car Type                Number of Cars      Rate
--------                --------------      ----

40' well 5-unit         140 cars            $2.77/hour and 5.5 cents per mile

45' well 5-unit         70 cars             $2.94/hour and 5.5 cents per mile

48' well 5-unit         346 cars            $2.10/hour and 6.8 cents per mile

53' well 3-unit         1300 cars           $1.88/hour and 6.0 cents per mile

     The above rates on the 40' and 45' well cars have been in place since the
cars were converted to BRAN markings and these rates will continue to apply for
the duration of this Agreement. The above rates applicable to the 48' and 53'
well cars became effective as of August 20, 2001. For periods prior to that
date, UP is obligated to pay the AAR default rate as defined in the AAR rules
for BRAN marked cars and the rates previously set out in Section 9.B of the
Original Agreement for the APLX Cars.

     APL and Pacer agree that neither of them shall acquire additional Stack
Cars to be used on UP, unless and until the entity acquiring the additional
Stack Cars by purchase, lease or otherwise has reached a bilateral car hire
agreement with UP.

     Nothing contained in this Agreement shall prevent APL or Pacer from
acquiring cars of a particular car type listed above to replace cars of the same
car type that are removed from service on UP for whatever reason; provided;
however, that the number of cars in a particular car type category of cars
listed above cannot be increased. Furthermore, nothing herein shall prevent APL
or Pacer from acquiring additional Stack Cars to be used on any other railroad.

                                     App. 9B

<PAGE>

                                                                   APPENDIX 11.A

                          Parking Spaces at Terminals.

     UP will provide 250 parking spaces to APL at UP's Global One facility
without charge for the term of this Agreement. If, due to the continued use of
Global One by other stack train operators or due to UP's failure to expand the
facility, UP cannot provide APL with 250 parking spaces at Global One, then UP
shall have the option of providing parking spaces at another location on
property owned or controlled by it. In that case, UP will pay for any drayage
services required to move Containers between Global One and the UP location. If
it cannot or does not want to offer such parking spaces on its own property or
on property controlled by it, then UP will compensate APL for its expenses in
draying Containers and storing Containers on third party property. In the event
empty Containers are placed on the ground and stacked one on top of the other,
any lifting of such Containers from the ground or stacked position for placement
on chassis shall be without charge to APL.

     At its Global One facility, UP will provide APL with sufficient space to
accommodate up to 1,000 empty chassis for use in the day to day operation of APL
Container movements. Such space will be provided to APL without charge. Further,
the parties recognize that as APL's volume of business increases or decreases,
other than day to day fluctuations or normal business cycle fluctuations, the
allowable number of empty chassis held at UP's Global One facility may need to
be increased or decreased. In the event of such volume changes, the parties
agree to negotiate in good faith to establish a new maximum number of empty
chassis that may be held at the Global One facility without charge to APL.

                                  Appendix 11A

<PAGE>

                                                                   APPENDIX 12.C

                    International Shipments for TPI Customers

     In addition to its own International traffic, APL may also ship
International traffic under this Agreement for those TPI customers listed on
Exhibit F. When mutually agreed in writing between the parties, other TPI
customers may be added to Exhibit F.

                                  Appendix 12C

<PAGE>

                                                                     APPENDIX 13

                           Rates/Adjustments to Rates

          A.   Rates and Charges; Adjustment Processes

               All Rates are on a per Container basis and apply to the movement
of Containers under this Agreement.

               The rates, divisions and charges ("Rates") which are applicable
to the shipments moving under this Agreement are shown in Exhibit B. Part I
shows International Rates per loaded Container. Part II shows Rates on all empty
Containers. Part Ill shows rates on Domestic loaded Containers. Part IV shows
all other miscellaneous Rates. Part V shows the TPI Rates. Part VI shows
terminal and switch charges.

               The Rates in Exhibit B are based on those agreed to by the
parties in a Memorandum of Understanding dated December 15, 1995, as adjusted
pursuant to the provisions of this Agreement after 1995 to and including
February 1, 1997.

               Adjustments to Rates will be calculated using three processes:

               (1)  Cost Adjustments;

               (2)  International Market Rate Adjustments;

               (3)  Domestic Adjustments including Market, Daily Domestic
                    Tender, and Utilization Adjustments.

          B.   Cost Adjustments

               Except as otherwise provided, all Rates are Cost Adjusted. Cost
Adjustments apply only to that portion of a Rate which is adjustable ("Adjusted
Portion"). For domestic Rates, other than westbound 40' domestic Rates applying
from Chicago, IL, Kansas City, MO and St. Louis, MO, on the one hand, to
Seattle, WA,

                                App. 13 - Page 1

<PAGE>

Portland, OR, Oakland, CA and Los Angeles, CA, on the other hand, the car cost
component will be deducted from the Rate prior to the application of any Cost
Adjustments. Further, and where such charges and components are part of the
total Rate, the following charges and components will also be deducted prior to
the application of any Cost Adjustments: stop charge, container size arbitrary,
utilization component, domestic market adjustment component, average daily
tender component and the fixed portion of the Rate. The Adjusted Portion of each
Rate consists of the following components and respective weights for each
component:

                  Component                             Weight
                  ---------                             ------
                  Overhead                              22.70%
                  Fuel                                   9.90%
                  Wages                                 33.60%
                  Supplements                           13.80%
                  Materials and Supplies                 8.30%
                  Other Expenses                        11.70%

                  Beginning February 1, 1999, and consistent with the
methodology shown in Exhibit B.1., the weights shall be rebased every three
years using UP's most recent R-1 reports. Cost Adjustments for empty Container
rates shall be effective August 1, 1999.

                  Exhibit B, Part I shows the base Adjusted and Fixed Portion of
International Rates per loaded Container. Exhibit B, Part II shows the base
Adjusted and Fixed Portions of empty Container Rates. Exhibit B, Part III shows
the base Adjusted and Fixed Portion of loaded Domestic Containers. Exhibit B,
Part V shows the Adjusted and Fixed Portions for loaded TPI Rates.

                                App. 13 - Page 2

<PAGE>

          For each of the Rates set forth in Parts I, II, III and V, the
Adjusted Portion shall be divided into its component parts. Each component part
will be Cost Adjusted as described below. Then all the Cost Adjusted Components
will be added together to obtain the new Adjusted Portion. That new Adjusted
Portion shall then be added to the Fixed Portion for the new Rates.

          1. Fuel Component

             (1) The fuel component shall be increased or decreased each
February 1, May 1, August 1, and November 1 by an amount equal to the percentage
change, if any, in the United States Fuel component of the Series RCR, Railroad
Cost Recovery Index, published by the Association of American Railroads, for the
first preceding calendar quarter over the second preceding calendar quarter. For
example, the February 1, 1996, Adjustment shall be based on the change in the
index between the fourth quarter of 1995 and the third quarter of 1995.

             (2) The parties recognize that the cost of fuel can be highly
dynamic; that is, fuel costs can rise and fall dramatically over relatively
short periods of time. The parties further recognize that, in such situations,
it is to their mutual benefit to initiate a process whereby the Adjustment of
the Rates contained in Exhibit B is accomplished on a more timely basis than is
provided for in the preceding paragraph. In the event there is a dramatic and
immediate rise in the cost of fuel to UP, as jointly determined by the parties,
the parties agree to implement the following process:

                 (a.) UP and APL jointly develop the dollar or percent amount
which is required to recover the increased fuel cost on a per shipment basis;

                                App. 13 - Page 3

<PAGE>

                    (b.)    APL  analyzes  the market  situation  and
determines  the dollar  amount on a per shipment basis for Domestic, TPI and
International shipments that can be successfully recovered.

                    (c.)    The Domestic,  TPI and  International  Rates to APL
shall be increased by the amount of the dollar surcharge identified in section
(b.) above effective with the date of APL's implementation of that surcharge on
its rates to its customers. However, in no event shall the dollar amount of the
surcharge be greater than the dollar amount developed in section (1) above.

                    (d.)    The parties will follow this process as the price of
fuel or as market conditions change which affect the amount which APL can
recover. UP will change its rates to reflect any market change in APL's rates.

                    (e.)    Where this process is in place for part of any
quarter, the normal fuel adjustment process will not be utilized for that
quarter.
                    (f.)    When the  parties  agree that the price of fuel has
stabilized and returned to a normal condition, the fuel surcharge will be
cancelled and the APL Rates will again be subject to the standard fuel
adjustment in the next quarter in which the fuel surcharge is not applicable.
The calculation of that fuel cost will be based on a comparison of the quarter
which immediately preceded the last quarter in which the normal fuel adjustment
was applied to the quarter in which the APL Rates again become subject to the
standard fuel cost adjustment.

        For example, the Second Quarter 1997 adjustment effective May 1, 1997
was:

                  AAR RCR Table C Fuel Index 1Q97 = 211.5
                                             4Q96 = 224.1
                                Percent change    =(5.622)%

                                App. 13 - Page 4

<PAGE>

                  On June 1, 1997, UP approaches APL to seek relief from rising
fuel costs; the fuel surcharge process is implemented and lasts until December
15, 1997, when the fuel surcharge is cancelled. The normal fuel adjustments for
the third, fourth and first quarters effective August 1, November 1 and February
1 are set aside. (Since February uses 4th quarter 1997 in the adjustment process
and since the surcharge was in effect for a portion of the 4th quarter, the
first quarter adjustment is not performed.)

                  The next adjustment, effective May 1, 1998, will compare the
first quarter 1998 to the first quarter 1997, as the first quarter 1997 was the
last quarter used to calculate a fuel cost adjustment:

                          AAR RCR Table C Fuel Index 1Q97 = 211.5
                                                     1Q98 = 215.7
                                        Percent change    = 1.98%

                  2.   Non-Fuel Component

                  The non-fuel components shall be increased or decreased
annually each May 1 by an amount equal to the percentage change, if any, in the
weighted average in the cost components listed below for the fourth quarter of
the preceding year over the fourth quarter for the second preceding year. The
non-fuel component shall be defined and weighted as detailed below:

                             Non-Fuel Sub-Components

Component                 Weight           Escalation Series
---------                 ------           -----------------
Wages                     33.60%           AAR RCR US Wage Index
Supplements               13.80%           AAR RCR US Wage Supplements Index
Materials and Supplies     8.30%           Producer Price Index - Industrial
                                                Commodities Excluding Fuel
                                                (preliminary)
Other Expenses            11.70%           AAR RCR US All Other Expenses Index
Overhead                  22.70%           Producer Price Index - Industrial
                                                Commodities Excluding Fuel
                                                (preliminary)

                                App. 13 - Page 5

<PAGE>

                  The overhead component for each rate shall be increased or
decreased annually each May 1 by an amount equal to the percentage change, if
any, in the Producer Price Index -- Industrial Commodities Excluding Fuel
(preliminary) published by the Bureau of Labor Statistics for the fourth quarter
of the preceding year over the fourth quarter of the year before the preceding
year. The fourth quarter PPI for any year is obtained by calculating the simple
average PPI for the months October, November and December of that year. For
example, the May 1, 1996, Adjustment shall be based on any change in the
calculated average index for October, November and December 1995 and the
calculated average index for October, November, and December 1994.

                   3.  Percentage Change

                  In computing the amount of Adjustment each quarterly or annual
period, the percentage change in the indices shall be computed to three decimal
places. When the percentage change is applied as provided in subsection 1.
through 3. of this subsection B., the aggregate results shall be added together
to reach the Adjusted Portion which shall be stated in dollars and cents. The
Adjusted and Fixed Portions shall be added together and rounded to the nearest
whole dollar to establish the current Rate. In the event any of the necessary
index series is rebased between any two measurement periods, the earlier index
shall be restated to the new base for purposes of computing the percentage
change. In the event the AAR modifies the construction of the Series RCR, the
parties hereto agree to accept such modifications for use in this Section.

                  In the event the AAR publishes a retroactive adjustment to an
RCR component used for an Adjustment under this Section, the Adjusted Portion of
the Rates shall be revised accordingly, effective on the first day of the month
following such

                                App. 13 - Page 6

<PAGE>

publication and retroactive to the date of the Adjustment for which the original
index was used.

         C.  International Market Adjustment

             It is the intention of the parties that each of them be
treated fairly in relation to the competitive marketplace in which both do
business. The parties recognize that their mutual interests may suffer if
"International Market Rates" (as defined below) are substantially less than the
Rates provided under this Agreement. Therefore, the parties have devised a
process, called the International Market Adjustment process, to adjust the Base
Rates by taking into account International Market Rates as defined below. APL's
Rates with UP will go down, but not up, based on the International Market
Adjustment.

             For purposes of this Agreement, the relevant International Market
Rates are defined as those Rates assessed by UP and Burlington Northern Santa
Fe ("BNSF") to APL's International steamship competitors ("APL Competitors") on
Comparable Units as that term is defined below in subsection C.3. The
International Market Rates do not include APL's Rates or volume moving under
this Agreement.

             1.  APL Request to Negotiate

             In the event that APL believes that any or all of the
International Rates set forth in Exhibit B, as adjusted under the provisions of
this Section B.1, are higher than the then current market levels, at APL's
request APL and UP shall make a comparison of APL's Rates to the then current
market rates. International Market Rates will be determined by using the process
set forth in subsections 2 and 3 of this Section C. In the event that any of
APL's then current Rates are found to be higher than the corresponding
International Market Rates, APL and UP shall enter into good faith

                                App. 13 - Page 7

<PAGE>

negotiations with the intent of establishing a new level of APL Rates such that
APL retains a competitive cost position.

                  2.   Determination of International Market Rates

                  International Market Rates will be determined on a one-way
basis. First, for each container size, each type of movement (International
load, empty, westbound Domestic), in each direction and each origin/destination
pair, an average UP rate will be developed from the rates which UP offers to APL
Competitors ("Average UP Rate"). Second, average BNSF rates will be developed
for each container size, each type of movement (International load, empty,
westbound Domestic), each direction and each origin/destination pair. Rates for
both UP and BNSF will be equated to a Comparable Unit Basis as set forth in this
Section C.3.

                  The average BNSF and average UP rates will then be weighted by
their respective market shares to develop a weighted average market rate and the
weighted average market rate will then be compared with APL's Rate. APL's Rate
will be equated to a Comparable Unit Basis as set forth in this Section C.3. If
the weighted average International Market Rate is higher than the comparable APL
Rate, then no adjustment will be made to the APL Rate. If the weighted average
International Market Rate is lower than the comparable APL Rate, then APL and UP
shall negotiate in good faith as provided in this Section C.1.

                  3.   Determination of Comparable Unit Basis

                  Weighted average International Market Rates will be determined
on the basis of through rates between the West Coast port cities, on the one
hand, and inland points shown in Exhibit B, on the other hand. Any specific
interchange rates applicable

                                App. 13 - Page 8

<PAGE>

to or from Chicago, Kansas City, St. Louis, Memphis or New Orleans will be
compared separately from the local rates which apply from/to those points.

                  In making the determination of weighted average International
Market Rates and comparing those rates to APL's Rates, APL and UP shall consider
all associated costs and economic factors necessary to arrive at a valid
comparison. The parties shall consider costs which would be involved in any
agreement between a rail carrier and a steamship line.

                  First, a separate assessment will be made for each container
size, each type of movement (International load, empty, westbound Domestic) in
each direction, and each origin/destination pair. Second, costs over which UP
has some control or influence and which are incurred by APL and the APL
Competitor for the Comparable Unit will be compared. This analysis will result
in the "Comparable Unit Basis."

                  Cost factors to be considered in determining the Comparable
Unit Basis include, but are not limited to, rail car ownership/lease costs,
mileage and maintenance costs, free repositioning of empty Containers, empty
repositioning rates between inland points, the difference in drayage cost,
drayage allowances, volume incentive payments, terminal storage provisions,
arbitraries, on dock rail facilities and any other relevant cost-influencing
factors. Drayage between rail ramps and container yards or drayage between rail
ramps and customers' facilities at inland points will not be considered. All
costs shall be equated to a per container basis by specific container size.

                  4.       Arbitration

                  If APL and UP cannot agree on the prevailing International
Market Rates within ninety (90) days of APL's notification to UP of its desire
to negotiate, then the

                                App. 13 - Page 9

<PAGE>

parties agree to arbitrate the prevailing International Market Rates pursuant to
Section 16 of this Agreement.

                  5.       Effective Date for Adjusted Rates

                  If any  adjustments  are made to the Base Rates as the result
of the agreement of the parties under this Section C.1, such new Rates will be
made effective no later than thirty (30) days following completion of the
negotiations. Any adjusted Rates will also be subject to the next scheduled Cost
Adjustment following the effective date of the Adjusted Rates.

         D.       Domestic Market Adjustment

                  It is the intent of the parties that the Domestic Market
Adjustment should reflect changes in the Domestic Rates which APL charges to its
customers.

                  1.       Amount of Adjustment

                  The amount of the Adjustment to the Base Rates shall be:

                           a. Except as provided in subparagraphs b. and d. of
this Section D.1., 50% of the dollar change in APL's average Domestic Container
Rates (i) between West Coast points and Chicago, (ii) between Northern
California points, Seattle, and Portland on the one hand and Memphis Local
(Eastbound only) and Memphis Interchange (Westbound only) on the other hand,
(iii) from Chicago to Salt Lake City, and (iv) between Southern California
points, on the one hand, and points in Texas, Memphis Local and New Orleans
Local, on the other hand.

                           b. 38.5% of the dollar change in APL's average
Domestic Container Rates between points in Southern California, on the one hand,
and Memphis and New Orleans Interchange, on the other hand.

                                App. 13 - Page 10

<PAGE>

                           c. There will be no adjustments made to the 40'
Domestic Container Rates applying from Chicago, Kansas City or St. Louis to
Seattle, Portland, Oakland or Los Angeles since those rates are adjusted
pursuant to the International Rate Adjustment process.

                           d. The following provisions only apply in the event
that APL Land Transport Services, Inc., a subsidiary of APL Limited, is sold to
another entity. Effective January 1, 2001, the parties agree that, in the event
APL is able to secure the agreement of either CSX Intermodal ("CSXI") or the
Norfolk Southern Railway ("NS") to participate in the Domestic Market Adjustment
process on the Northeast business which APL tenders under its current contract
with Consolidated Rail Corporation ("Conrail"), then UP's portion of future
Domestic Market Adjustments for Northeast business interchanged from or to that
carrier will be reduced by a comparable percentage. As an example, if NS agrees
to assume 15% of any Domestic Market Adjustment on Northeast business, then UP's
percentage of the Domestic Market Adjustment on Northeast business will be
reduced from its current 50% to 35%. If NS fails to agree to participate in the
Domestic Market Adjustment process, then UP's portion would remain at 50% for
volumes interchanged to or from NS.

                  2.       Determining the Adjustment Factor

                  APL's average Domestic Container Rates assessed against its
customers in one calendar quarter shall be compared with its average Domestic
Container Rates in the preceding calendar quarter. Rate adjustments will be made
effective every February 1, May 1, August 1, and November 1. Thus, the February
1 adjustment would be based on the comparison of the prior fourth calendar
quarter to the prior third calendar quarter. The May 1 adjustment would be based
on the comparison of the prior

                                App. 13 - Page 11

<PAGE>

first calendar quarter to the fourth quarter of the preceding year. The August 1
and November 1 adjustments would be accomplished in a similar fashion using the
appropriate comparison of calendar quarters.

                  Adjustments will be made separately for each direction by
origin-destination. Adjustments will be made based on the following container
sizes: 20', 40'/45' grouped together, 48' and 53'. For example, an Adjustment
will be made for all 20' Containers moving from Chicago to Southern California
while a separate Adjustment will be made for all 48' Containers moving from
Southern California to Chicago.

                  The following deductions will be made to create the applicable
APL Container Rates that are used for comparisons:

                           (1) Any charges included in APL's Domestic Container
Rates for drayage or motor carrier service will be deducted, except that
sub-service drayage charges for Modesto and Sacramento will not be deducted.

                           (2) For any APL Domestic Container Rates applying
from or to points beyond Chicago, the connecting rail carrier rates in effect on
July 1, 1992 will be deducted.

                           (3) For any APL Domestic Container Rates applying
from or to points in the Southeast beyond Memphis or New Orleans, the connecting
carrier rates in effect on January 1, 1997 will be deducted.

                  The purpose of these deductions is to prevent any effect on
the Domestic Market Adjustment which would be caused by changes in APL's drayage
or motor carrier rates, or by changes in the rates of connecting rail carriers.
As example, Conrail could assess APL an increase in the rates that Conrail
charges APL for Domestic shipments. If APL raises the Domestic Container Rates
to its customers to pass on the

                               App. 13 - Page 12

<PAGE>

Conrail increase, UP should not be able to take advantage of that increased
Domestic Container Rate. Likewise, if Conrail reduces its rates to APL, but APL
makes not change in the Domestic Container Rates that APL assesses against its
customers, the use of the lower Conrail Rates in this adjustment process would
have the impact of increasing the Western portion of the APL Domestic Container
Rate when compared to the prior calendar quarter. This would then result in an
increase in the Rates that UP assesses against APL.

                  The parties have developed a methodology to assist in
eliminating the impact of any regional mixes for the Rates applying to and from
the Southeast region. Beginning with the January 1, 1997 adjustment and
thereafter for each annual twelve (12) month period, Eastbound and Westbound
volumes from and to Atlanta, Charleston, Jacksonville and Charlotte (the
"Points") will be analyzed separately both by direction and by Container size.
The calculations shall be done as follows:

                           (1) for each annual twelve (12) month period, the
percentage mix of traffic for each of the four Points will be determined. Thus,
in one twelve month period, Eastbound Atlanta volumes may represent 75% of the
total Eastbound volumes to the four Points named above. Charleston may be 8%,
Charlotte 7% and Jacksonville 10%.

                           (2) the average APL Domestic Container Rates that APL
assesses against its Domestic customers for each of the four points will be
determined for the appropriate calendar quarters as set forth foregoing
provisions, deductions for any connecting rail or motor carrier rates will be
made and a comparison made, one calendar quarter to the next. Any resulting
difference in the average APL rate will then be multiplied by the percentage
that the volume for that point represents as a

                               App. 13 - Page 13

<PAGE>

percentage of the total volume for the four named Points. As example, if the APL
Domestic Container Rate to Atlanta was $800 in one quarter and $750 in the next
quarter, then the difference of $50 would be multiplied by 0.75 (75%) when using
the example in subparagraph (1) above. Similar calculations would be made for
Charleston, Charlotte and Jacksonville.

                           (3) the sum of the resulting factors would then be
multiplied by 38.5% to determine the dollar amount of adjustment to the rates
assessed by UP against APL for each adjustment period during that annual twelve
(12) month period.

                  UP shall have the right to audit the calculations made under
subsections (1) through (3) above so long as (a) APL approves the auditor, which
approval shall not be unreasonably withheld; (b) the auditor signs a
confidentiality agreement which specifically restricts the auditor from sharing
with UP or any other party any of the APL information to which the auditor is
given access to perform the calculations except that the auditor may give to UP
a certification of the dollar amount of the adjustment which should be made to
the rates assessed by UP.

         E.       Utilization Adjustment

                  Domestic Rates shall also be adjusted based on the change in
APL's utilization of Stack Car or Spine Cars ("Utilization Adjustment"). The
Utilization Adjustment shall be made in May 1996 for trains moving between April
1, 1995 and March 29, 1996. Another Utilization Adjustment shall be made in
November 1996 for trains that moved between March 30, 1996 and October 4, 1996.
Subsequently, Utilization Adjustments shall be made quarterly beginning on
February 1, 1997 based on the utilization for trains for the preceding calendar
quarter.

                                App. 13 - Page 14

<PAGE>

                  The Utilization Adjustment shall be made separately in each of
the following lanes:

FROM                       TO                        NOTES
----                       --                        -----

Los Angeles                Chicago
Chicago                    Los Angeles               Does not apply to Westbound
                                                     Third AM Service
Oakland/Lathrop            Chicago
Chicago                    Oakland/Lathrop           Does not apply to Westbound
                                                     Third AM Service
Memphis Interchange        Oakland/Lathrop
Portland/Seattle           Chicago
Chicago                    Portland/Seattle
Memphis Interchange        Portland/Seattle
Chicago                    Salt Lake City

Los Angeles                Texas Points
Texas Points               Los Angeles

Los Angeles                Memphis/New Orleans
Memphis/New Orleans        Los Angeles

Texas points will include Dallas, El Paso, Houston and San Antonio. Los Angeles
will include the following intermodal terminals: the APL On-Dock facility at San
Pedro, ICTF and UP's terminal at East Los Angeles. Texas Points shall be
measured and adjusted as a single location. Memphis local, Memphis interchange,
New Orleans local and New Orleans interchange shall be measured and adjusted as
a single location. The Los Angeles area terminals shown in the foregoing shall
be measured and adjusted as a single location. Portland/Seattle and
Oakland/Lathrop shall be measured and adjusted as single locations. Calculation
of the Utilization Adjustment shall exclude Containers offered by APL to UP for
movement on Flatcars.

                  The Utilization Adjustment shall be calculated in the
following way:

                  (a) The utilization percentage shall be determined by dividing
the total number of loaded and empty FEUs moved during the time periods
specified above by

                               App. 13 - Page 15

<PAGE>

the total number of Stack/Spine Car FEU slots used in that lane during that same
time period. All Containers moved are counted without regard to the line of
business (i.e., International, Domestic, TPI, CKD). Any EMP or similar
Containers used by UP to fill empty slots on Stack Cars or Spine Cars loaded
with APL Containers shall be included in the calculation of the Utilization
Adjustment.

          (b)  The sum of the fixed Portion, the Adjusted Portion, the Stop
Charge components as set forth in Exhibit B and the Car Cost component as set
forth in Exhibit B shall be developed.

          (c)  The utilization percentage is divided into the figure developed
in (b).

          (d)  The difference between (b) and (c) is the new utilization dollar
component.

          As an example:

          Fixed Portion of Rate              =        $ 381.44
          Adjusted Portion of Rate           =        $ 370.02
          Stop Charge                        =        $   0.00
          Car Cost                           =        $  47.41
          ----------------------------------------------------
          Total (100% Utilization)           =        $ 798.87

If the new utilization percentage is 98.61%, $798.87 is divided by 98.61% to
reach $810.13. The difference between $810.13 and $798.87 is $11.26, the new
utilization component. This adjustment is added onto the Rate. Each Rate will be
adjusted by the new utilization percentage.

     F.   Growth Incentive

          As an incentive to APL to increase traffic tendered under the
Agreement, a ten percent (10%) Growth Incentive Payment program shall apply for
both International and Domestic Shipments moving under this Agreement in Service
Lanes 9-14. A six

                               App. 13 - Page 16

<PAGE>

percent (6%) annual incremental gross revenue cap shall be used in calculating
the Growth Incentive Payment. The Growth Incentive Payment shall be calculated
as follows:

               For the year ending December 31, 1996

                              1996 Gross Revenue in Service Lanes 9-14
                            - 1995 Gross Revenue in Service Lanes 9-14

                    Difference (if positive) x 10% = Growth Incentive Payment

               For the year ending December 31, 1997

               1997 Gross Revenue in Service Lanes 9-14 minus the lesser of
                        (a)  the 1996 Gross Revenue in Service Lanes 9-14 or
                        (b)  the 1995 Gross Revenue in Service Lanes 9-14 x 1.06


                             (which becomes the 1996 Base Revenue)

                    Difference (if positive) x 10% = Growth Incentive Payment

               For the year ending December 31, 1998

                    1998 Gross Revenue in Service Lanes 9-14 minus the lesser of

                        (a)  the 1997 Gross Revenue in Service Lanes 9-14 or
                        (b)  the 1996 Gross Revenue in Service Lanes 9-14 x 1.06

                             (which becomes the 1997 Base Revenue)

                    Difference (if positive) x 10% = Growth Incentive Payment

The Growth Incentive Payment for subsequent years will be calculated using the
same methodology.

          "Gross Revenue" is defined as the sum of the amounts APL pays to UP
for (1) the movement of loaded or empty Containers and (2) the movement of empty
Stack Cars from or to points shown in Exhibit D for which APL has made a volume
commitment.

                               App. 13 - Page 17

<PAGE>

          In order to eliminate the effect of future UP Cost Adjustments and
Market Level Adjustments on APL's Rates during the course of the Agreement, the
parties agree that, for the purpose of determining the linehaul portion of APL's
Gross Revenue, APL shall make the following adjustment each year: the volume of
traffic for the year in question shall be multiplied by the APL Per Container
Rates in effect on February 1,1997 as shown in Exhibit B.

          If APL diverts some of its volume to an alternate carrier and
subsequently returns that volume to UP, the returned volume will be excluded in
determining that year's growth incentive. However, the Gross Revenue for that
year will include the returned volume to calculate the next year's Growth
Incentive.

          If APL secures the business of any TPI customer that was previously
utilizing UP in the Southern Corridor immediately prior to APL, that TPI volume
will be excluded from determining APL's Growth Incentive for that year. However,
the Gross Revenue for that year will be restated to include the TPI volume to
accurately calculate the next year's Grown Incentive.

          G.   Average Daily Tender

          Domestic Rates will also be adjusted based on the change in APL's
Average Daily Domestic Tender ("Average DDT") baseline shown in Part A of
Exhibit Y. Changes based on the Average DDT will be calculated at the end of
each quarter for inclusion in the quarterly cost adjustment set forth in Section
B.1 of this Appendix 13. Domestic Container volume will be counted for
containers moving between Southern California, on the one hand, and Chicago,
Kansas City, St. Louis and Omaha, on the other, as well as between Northern
California and Pacific Northwest, on the one hand, and Chicago, Kansas City, St.
Louis, Omaha and Memphis, on the other. Westbound

                               App. 13 - Page 18

<PAGE>

Containers destined to Salt Lake City will be added to Southern California
volumes. APL's International, CKD and TPI volumes will not be included in the
calculation of APL's Average DDT.

          Changes to the Average DDT will be based on a rolling annualized total
comparing the four most recent Calendar quarters to the preceding four Calendar
quarters.

          APL's average DDT will be derived by dividing the total of APL's
Domestic Container volume for the four most recent calendar quarters by 52 weeks
and then dividing that amount by the number of published service days of the
week in which APL tendered the Container volumes. Westbound and Eastbound volume
shall be separately calculated. Adjustment to the domestic rates will be made
based upon increases or decreases in the Average DDT based upon the Scale shown
in part B of Exhibit Y.

                 Example:

                                 Southern California to Chicago

                             Current                        Prior
                 ----------------------------   --------------------------------
                  Adj.               Domestic    Adj.                  Domestic
                 Period   (weeks)     Volume    Period     (weeks)       Volume
                 ------   -------    --------   ------     -------     ---------
                  4Q96    140-152      9755      3Q96      127-139        9343
                  3Q96    127-139      9343      2Q96      114-126        9303
                  2Q96    114-126      9303      1Q96      101-113        9296
                  1Q96    101-113      9296      4Q95      940-952        9290

         TTL Domestic Volume          37697                              37232
         Div by 52 weeks                725                                716
         Div by 6 service days          121                                119
         Current less Prior               2
         Rounded/unit of 10               0
         Increase or Decrease          0.00%
         Prior DDT Adj.             - 1.964%
         Cumulative Adj.            - 1.964%


                               App. 13 - Page 19


<PAGE>

          The DDT Adjustment will be cumulative. That is, the net dollar change
resulting from the current Adjustment will be added to the net dollar change
resulting from the previous adjustment.

          For adjustment purposes, the average daily tender will be rounded to
the nearest unit of ten (less than five will be rounded down and five or more
will be rounded up).

          The percentage change resulting from the DDT Adjustment will be
applied to the fully Adjusted Rate. This change will not apply to 40' Westbound
Domestic movements to Seattle, Portland, Oakland and Los Angeles.

          The parties have established threshold Rates (displayed by Container
size) below which and above which the Base Rate cannot decrease or exceed as set
forth in part C of Exhibit Y.

          Exception to the Adjustment. If during a current quarter a new service
day is added which causes the DDT to drop, UP and APL will share equally in any
increase that may result from this additional service day. This 50% sharing
arrangement will remain in effect until the average DDT reaches the level that
was in effect prior to the commencement of the additional service day.

          Example:

     In the Seattle/Portland to Chicago lane, service days are increased from
     four to five days per week in Quarter 2. The DDT drops from 150 in Quarter
     1 to 100 in Quarter 2 and then increases to 120 in Quarter 3 and 150 in
     Quarter 4.

        -   The Quarter 3 domestic rates will be increased by 50% of the % shown
            for a 50-unit drop in the DDT (6.25% x 50% = 3.125%).

                               App. 13 - Page 20


<PAGE>

        -   The Quarter 4 domestic rates will be reduced by 50% of the
            percentage shown for a 20-unit increase in the DDT (2.5% x 50% =
            1.25%).

        -   The next year's Quarter 1 domestic rates will be reduced by 50% of
            the % shown on a 30-unit increase in the DDT (3.75% x 50% = 1.875%).

        -   The next year's Quarter 2 adjustment (up or down) will be based on
            the normal scale since the original DDT level of 150 has been
            reached.

     H.     End-Well Credit

            Effective January 1, 1996, APL may claim a credit of $200 per
Container from UP for movement of loaded 40 foot eastbound Containers with
Domestic traffic only in the bottom slot end well of Stack Cars having 40 foot
end wells. This credit shall apply only to traffic originating on the West Coast
and destined for Chicago or interchange at Chicago for interline movement beyond
Chicago. Furthermore, APL may claim a refund on empty Containers moving
eastbound from the West Coast to Chicago for each 20 foot and/or 40 foot
Container moving in the bottom slot of Stack Cars having 40 foot end wells when
a loaded 45 foot or larger container is moving in the top slot of the end well.
APL may also claim a refund for the subsequent empty westbound Container move.
The westbound empty refund amount per container will be equal to the then
current empty rate applying from Chicago to Seattle. The End-Well Credit will be
calculated by APL and presented to UP quarterly.

     I.     Southern Corridor International Rates

            Based on UP's representation that the International Rates between
the ICTF and Dallas, Houston, Memphis and New Orleans ("the Southern Corridor")
are marginal or non-compensatory, APL agrees that during calendar year 1999 it
will evaluate UP's proposed increases as shown in Exhibit X for the Southern
Corridor.

                               App. 13 - Page 21


<PAGE>

                                                                     APPENDIX 14

                              Competitive Proposals

     A.   Automotive Business

          1. Incentive Packages

          It is the intent of APL and UP that each will provide the other a
level playing field as it relates to automotive business moving to and from
Mexico. Consistent with that mutual intent, Union Pacific agrees that in
connection with bid packages on projects offered to APL and UP by the various
automotive manufacturers, if UP elects to offer a reduction in its boxcar or
multi-level rates or an incentive of any kind ("Incentive Package") as an
inducement to award the intermodal business to the UP, UP will provide the same
Incentive Package offering to the automotive manufacturer in conjunction with
APL's response to that bid package or project. In exchange for UP's commitment
to make all Incentive Packages available to APL, APL agrees that it will only
use UP's linehaul service and rates agreed to in connection with such bid
packages or projects. In the event APL is awarded the business, UP will not
offer lower rates to any other entity during the term of that award.

          Similarly in connection with bid packages on projects offered to APL
and UP by various automotive manufacturers, APL agrees that it will provide UP's
wholly-owned retail marketing affiliate the same rates and/or Incentive Package
as APL offers to any other intermodal marketing company affiliated with APL.

          2. Equipment and Management Services

          UP agrees to give APL the right of first refusal to provide Equipment
and management services for current and future automotive business moving in
containers to and from Mexico. Consequently, even if APL is not able to secure
the business

                                App. 14- Page 1

<PAGE>

utilizing the rates quoted by UP to APL on an automotive bid package, UP will
not offer lower rates to any other entity (including an automotive manufacturer)
in an attempt to secure that business.

                  In the event that APL is unable to secure the automotive bid
package at the rates offered by UP, APL has the right to solicit offers from
other rail carriers. If APL chooses to elect to utilize that option, APL shall
first inform UP of that decision in a timely manner to allow UP to also assess
its options in conjunction with that bid. At that time either APL or UP may
submit a bid on that automotive bid or package alone or in conjunction with any
other party without any restrictions on either party.

         B.       CSXI Business   (Chicago and Northeast Lanes Only)

                  UP and APL agree that, if the agreement between SP and CSX
Intermodal ("CSXI") as of the Effective Date contains Domestic Rates that are
lower in the California-Chicago and California-Northeast Service Lanes than
those UP provides to APL, and if APL believes CSXI is using the cost advantage
to make APL non-competitive, APL shall notify UP. UP shall then make its best
effort to provide APL with rates that allow APL to remain competitive with CSXI.

                  The provisions of this Appendix 14 do not apply to the rates
offered by UP to CSXI or SeaLand unless CSX or SeaLand has lower International
or Domestic rates than APL, and if UP provides CSXI or SeaLand with a higher
level of service reliability in any three month period as compared to the
service reliability which UP provides APL during that same three month period.
In that case, UP agrees to reduce APL's Rates to the rates which CSXI has for
comparable traffic types, traffic lanes and directions and container sizes in
all lanes in which APL tenders volume under this Agreement.

                                App. 14- Page 2


<PAGE>

                  Once the SP-CSXI agreement expires, this Competitive Proposals
provision will apply to CSXI traffic in these lanes. If, however, UP negotiates
new rate levels within the current CSXI agreement that decrease the overall rate
package for CSXI in the LA/Chicago-Northeast lane without creating a new
agreement, then at that time the CSXI agreement will be covered by the
provisions of this Appendix 14. If the new rate levels are negotiated within the
current agreement, the test to determine the effect of the change will be as
follows: The old rates in the CSXI agreement (LA/Chicago and Northeast) will be
applied to the CSXI volumes for the most recent twelve month period in that
lane. The new rates will also be applied to the same CSXI volumes over the
twelve month period. If the new rates produce a lower overall net revenue
figure, the provisions of this Appendix 14 will then apply from that point
forward.

         C.       UP's Agreements with APL Competitors

                  The following provisions apply only in Service Lanes 1 through
6 and 9 through 14 specified in Section A.1 of Appendix 7.

                  It is the intent of UP and APL that APL shall be treated
fairly by UP in relation to an APL Competitor. The parties recognize that their
mutual interests will suffer if APL Competitors are accorded more favorable
Rates, contract provisions or transportation service by UP than UP accords APL,
if the result is that APL's per Comparable Unit cost of transportation is higher
than that of APL Competitors.

                  If at any time during the term of this Agreement, an agreement
is reached between UP and an APL Competitor, and the Rates and/or provisions
offered generate lower costs on a Comparable Unit Basis as defined below than
are available to APL under this Agreement, UP shall make an offer to adjust the
then current Rates charged

                                App. 14- Page 3

<PAGE>

to APL to a level that generates costs for APL that are equal to or lower than
those generated for APL Competitors, subject to the same hourly transit time and
adjustment provisions that apply to the Competitor's Rates. However, if UP
utilizes the same or greater horsepower per trailing ton for the APL Competitor
as for APL , APL shall not be obligated to accept a slower transit time for the
lower rates unless there are other identifiable cost savings associated with
that slower transit time. Such other identifiable cost savings will be
considered only when UP demonstrates their validity and APL agrees with their
application in the comparison process. To the extent that UP offers a lower rate
and faster transit time than APL currently has, UP will offer APL the same or
lower rates and transit time equal to or better than that provided to the APL
Competitor.

                  The adjusted Rates, if accepted by APL, will be effective on
the same date that such Rates were made available to APL's Competitor, provided,
however, that no adjusted Rates shall be retroactive to a date one calendar year
prior to (1) APL's request for an audit under Section C.4 of this Appendix 14 or
(2) notification by UP that it failed to meet its obligation under this Section.
Once an offer is made to APL under this Appendix 14, APL may either accept the
offer or continue with its current Rates, service levels, and Rate adjustment
provisions. All other provisions of this Agreement will continue to apply.

                  If it is determined that UP has in effect rates for an APL
Competitor in a particular lane which do not conform with the requirements of
this Appendix 14, UP will adjust the Rates in that lane to the new lowest
applicable Rate effective immediately. However, since the purpose of this
Appendix 14 is to ensure that APL is not disadvantaged in the market place, both
parties agree that an analysis may be performed to review other lanes where APL
may have Rates that are below the

                                App. 14- Page 4

<PAGE>

competitive market place. If this analysis indicates that there are such lanes,
UP and APL agree to enter into good faith negotiations to allow UP to increase
Rates in those lanes to achieve a neutral pricing result to APL. If APL and UP
are unable to reach an agreement, UP will not be granted the offsetting
increase. This decision will not be subject to arbitration including any issue
regarding "good faith" negotiations.

                  For example, should the new Rate in the PNW/Chicago lane be
$700 per 40 foot container, while the APL Rate is $750 and APL moves 5,000 units
per year in this lane, the effective disadvantage to APL is $250,000 ($50 x
5,000 units). The new APL Rate will become $700. UP will then have the right to
look at other corridors where the APL Rate may be lower than the competitive
market. If it is determined that an APL 40 foot Rate in the Chicago/LA lane of
$725 is lower than the next lowest Rate of $775, and the APL volume in this lane
is 10,000 units, then UP will have the option to request increasing these Rates
in this lane by $25 per unit (the $250,000 outline in the PNW lane, divided by
the 10,000 units moving in this lane) to create a net "no change" to the total
revenues APL pays to UP.

                  1.      Aggregate Volume of Business A Material Consideration

                  The parties agree that the aggregate volume of business
(International and Domestic combined) which APL tenders to UP is a material
consideration in determining whether UP has provided any APL Competitor with
lower Rates. Therefore, this Section applies only to those traffic lanes for
which APL provides UP with a Volume Commitment, even though UP may have lost
that Volume Commitment under Appendix 7 to this Agreement. Further, UP shall
have no obligation to adjust APL's Rates in a particular lane where an APL
Competitor's volume of business under a given rate and in the same lane is less
than 1000 Containers annually.

                                App. 14- Page 5


<PAGE>

                  2.       $15 Average Advantage

                  The parties recognize that a higher volume of business should
result in lower Rates. UP guarantees that APL will have a $15 average advantage
per Container on the through Rates to and from Chicago. The $15 average
advantage is based on a comparison of UP's through Rates to APL with UP's
through Rates to APL's Competitors.

                  APL's average Rate on a Comparable Unit Basis as defined below
and the APL Competitor's average Rate on a Comparable Unit Basis will be derived
by applying the APL Competitor's volume of business against the APL Competitor's
rates applicable to such volumes and then applying that same volume against
APL's Rates in the same lanes and on the same type of traffic.

                  As an example, if ABC ocean carrier has 2,000 units moving
from Los Angeles to Chicago at $750, 2,000 units moving from Chicago to Los
Angeles at $700, 1000 units moving from Oakland to Chicago at $800 and 1000
units moving from Chicago to Oakland at $750, ABC's overall average rate would
be $742. Further assuming APL's rates to be $750, $700, $775, and $725
respectively, and applying ABC's volume against these rates, APL's average rate
is $733, or $9 lower than ABC's average rate. In such a case, UP would be
obligated to adjust any or all APL rates such that the average is $727, or $15
lower, than ABC's rates. This further assumes that APL's overall actual volume
is greater than ABC's.

                  3.       Determination of The Comparable Unit Basis and
                           Adjustment of Rates

                  In making a determination as to whether a Rate is lower to an
APL Competitor than to APL, UP must compare that Rate to APL's Rate on a
Comparable

                                App. 14- Page 6

<PAGE>

Unit Basis. To do this, UP must compare APL's cost of movement compared to an
APL Competitor's cost of movement. This cost includes, but is not limited to,
UP's linehaul Rate or division of a through Rate, railcar cost, terminal charges
(using UP's cost as the basis), terminal credits as a deduction from cost, and
any other like cost components which creates an "apples to apples" comparison.
An example of determining a Comparable Unit Basis is this:

                  If UP offers an APL Competitor a rate which includes drayage,
the dollar amount UP spends to provide the dray will be deducted from APL
Competitor's Rate and the resulting amount will be used in comparison to the
rate UP charges APL. For example, assume UP charges the APL Competitor $500 from
Seattle to Chicago and provides drayage from the pier to UP's terminal, at a
cost to UP of $50, and UP charges APL $500 from the UP ramp in Seattle to
Chicago. In this case, all other factors being equal, UP would be obligated to
reduce APL's rate by a minimum of $50 as the comparison would be based upon the
competitor's $450 rate ($500-50) vs. APL's $500 rate.

                  In determining a Comparable Unit Basis, the following
guidelines will apply:

                        a.    International and Westbound Domestic Containers

                  For International 20', 40', and 45' Containers and Westbound
Domestic 20', 40' and 45' Containers:

         (a)      Each Container size will be compared separately and
                  independently.

         (b)      Each origin and destination pair will be compared separately
                  and independently as follows:

                                App. 14- Page 7


<PAGE>

         On a round-trip basis:

         (1)      For International on an Eastbound load and a Westbound load;

         (2)      For International on an Eastbound load and Westbound empty;

         (3)      For International on an Eastbound load and Domestic on a
    Westbound load for 20', 40' and 45' Containers; and,

         (4)      On a one-way basis, where an APL Competitor has 50% or more of
    its total volume on UP moving in one direction, either Eastbound or
    Westbound. As an example, assume that ABC ocean carrier tenders 20,000
    Eastbound International Containers to UP for movement from the Port of Los
    Angeles, Oakland and/or Seattle. In turn, ABC tenders 5,000 westbound
    International loads and 3,000 Westbound empties to UP. In this case, ABC has
    8,000 units that move on a round-trip basis and 12,000 Containers (60%) that
    move Eastbound only. In such a case, the comparison with APL's costs is on a
    one-way basis for both Eastbound and Westbound traffic. If ABC had 10,001
    Westbound loads and empties combined, the comparison would be made on a
    roundtrip basis.

                  b.       Domestic 48' and 53' Containers

         For Domestic 48' and 53' Containers, the following comparison will be
made:

     (a) Each Container size will be compared separately and independently;

     (b) Each origin and destination pair will be compared separately and
     independently as follows:

         (1)      On a round-trip load to load basis;

                                App. 14- Page 8


<PAGE>

                  (2)    On a Westbound load and Eastbound empty;

                  (3)    When 50% or more of an APL Competitor's total volume of
         traffic in a single Service Lane on UP moves in one direction, the
         comparison will be made on a one-way basis in that Service Lane. For
         example, in the Chicago to Los Angeles Service Lane, the APL Competitor
         moves 10,000 48' and 53' containers Eastbound and only 4,500 containers
         in the Westbound direction. In this case, the lane will be analyzed on
         a one-way basis in both the Eastbound and Westbound direction. If
         movement in the Westbound direction is 5,001 or more containers, the
         analysis would be on a round-trip basis.

                  If APL believes that it suffers a market disadvantage by the
application of a round-trip comparison methodology for 48' and 53' Containers,
APL will notify UP in writing. The parties agree to negotiate in good faith to
eliminate the disadvantage and to establish a new method of comparison to be
used in the future. If, after ninety days following APL's written notice to
negotiate this matter, the parties are unable to reach agreement, the matter can
be submitted to arbitration pursuant to Section 16 of this Agreement.

                         c.    The Rates to Be Used

                  In applying these provisions, the parties agree that the basis
of comparison for Comparable Units will be the UP's linehaul Rate or division of
its through Rate between one UP intermodal terminal to another UP intermodal
terminal or interchange point. These Rates will be compared to similar Rates
that UP provides to an APL Competitor. For Rates applying between West Coast
points on the one hand and the Chicago, IL (local or interchange) on the other
hand, UP's actual division of revenue will be used for comparison as provided in
subsection f. below.

                                App. 14- Page 9

<PAGE>

                           d.   Excluded Costs

                  Drayage between inland rail ramps and inland container yards
(CY) locations, or drayage between rail ramps and customer locations at inland
points will not be a cost component considered in the Comparable Unit Basis.

                           e.   Additional Cost Components

                  Volume refunds, drayage allowances, signing bonuses or other
similar incentives will be considered as a reduction of cost in adjusting Rates
to determine a Comparable Unit Basis, where such allowances or incentives can
logically be applied to similar volumes or service lanes.

                  For example, if UP provides ABC Ocean Carrier with a Rate of
$700 per 40' Container from Seattle to Chicago, and that Rate applies on
shipments destined to the Chicago area as well as to shipments moving to points
in Eastern Canada, and if UP's offer to ABC Ocean Carrier also includes an end
of year refund to ABC Ocean Carrier of $40 for each shipment destined to Canada
as an incentive to ABC to route its Canadian traffic on UP, then the comparison
to APL's rates would be as follows:

                           For Shipments to                   For Shipments Over
                           Chicago Proper                     Chicago to Canada
                           --------------                     -----------------

         APL Rate         $700                                   $700
         ABC Rate         $700                                   $660 ($700-$40)

                  In this example, UP would be obligated to reduce APL's Rate by
$40 for Canadian shipments only. The current $700 Rate would continue to apply
to Chicago proper shipments since APL is not disadvantaged on that business
segment.

                  APL will not be required to agree to incentives that are
conditioned upon a specific volume count or percentage volume growth of traffic.
If UP offers such

                                App. 14- Page 10

<PAGE>

incentives to an APL Competitor, UP will offer APL a Rate which is at a cost
level equal to or lower than such APL Competitor without requiring specific
volume counts or percentage growth factors.

                       f.  Adjustment of Rates

                  In comparing round-trip Rates, either load-load or load-empty,
if UP has established a lower round-trip Rate for an APL Competitor, the
individual Eastbound or Westbound Rates will be adjusted as follows:

                  (1)  In the event the APL Competitor's Rate is lower in only
one direction, Eastbound or Westbound, and equal in the other direction, APL's
Rate will be reduced in the direction for which APL is disadvantaged so that
APL's round trip Rate is equal to or lower than the APL Competitor's round trip
Rate;

                  (2)  In the event both the competitive Eastbound and Westbound
Rates are lower than APL's Rates, each APL rate will be reduced by the dollar
amount that it is higher than the corresponding competitive rate. As an example,
if the competitive Eastbound rate is $20 lower than APL's Eastbound rate and the
competitive Westbound rate is $10 lower than APL's Westbound rate, APL's
Eastbound and Westbound Rate would be reduced by a minimum of $20 and $10
respectively.

                  (3)  In the event the competitive Rate is higher than APL's
Rate in one direction, but lower in the other direction such that the overall
roundtrip Rate is lower, APL's Rate will be reduced in the direction for which
it is disadvantaged so that APL's round trip Rate is equal to or lower than the
APL Competitor's round trip Rate.

                  4.   Independent Auditor Review

                  If APL believes UP has failed to meet its obligation under
this Section, APL may request in writing an audit of all contracts which UP has
with APL Competitors

                                App. 14- Page 11

<PAGE>

("Audit"), giving UP thirty days' advance notice. Upon such request, UP will
arrange for its regular independent certified public accounting firm ("the
Auditor") to perform an independent review of UP's other comparable
transportation contracts to determine whether, and to what extent, UP has failed
to meet its obligations. The Auditor will use the Benchmark Date process set
forth in this sub-section when performing the Audit. APL shall reimburse UP for
the cost of the Audit. APL shall not request an Audit more than once in any
calendar year. The Auditor shall also be allowed to review UP's volume records
to determine whether the comparison should be on a round-trip or one-way basis.

                  Prior to the Audit, UP will conduct a comparative analysis
using the methodology set forth in this Section. UP will identify any problems
and propose appropriate remedies, if needed, to APL and to the Auditor. The
Auditor will review the agreements between UP and the APL Competitors, perform a
comparative analysis using the methodology described in this Section, review the
remedies proposed by UP and make a determination if the proposed remedies meet
the requirements of this Section. The Auditor will determine if there are other
areas of non-compliance with this Section. If the Auditor discovers such areas
of non-compliance, the Auditor will work with UP to design and propose proper
corrective action to APL.

                  In order to perform an accurate and equitable comparison of
APL's Rates with the Rates of APL Competitors, a date or point in time for such
a comparison must be established. The parties recognize that rates vary and are
adjusted periodically at different times as a result of the unique provisions in
each transportation agreement. Consequently, for purposes of comparability of
Rates, UP, upon notification by APL of its request for an audit, shall conduct
the comparative analysis by first determining the

                                App. 14- Page 12

<PAGE>

effective date or most recent anniversary date of UP's doublestack contract with
each of APL Competitors closest in time but prior to APL's request for an audit
(Benchmark Date). Each APL Competitor's Rates will be compared with APL's Rates
as of that Benchmark Date. The parties recognize that there may be a different
Benchmark Date for each APL competitor. If as a result of this comparison, APL's
Rates need to be adjusted pursuant to sub-section 3.f., UP will offer APL such
adjusted rates to the extent applicable to be effective not more than a date one
calendar year before (1) APL's request for an audit or (2) the date UP notified
APL that UP failed to meet its obligation under this Section for those lanes
where APL is disadvantaged.

                  If APL receives a retroactive Rate adjustment, UP will pay to
APL the difference between what APL was paying under the APL Rates and what it
should have paid under the adjusted Rates times the volume of traffic which APL
moved during that one year calendar period prior to APL's request for an audit
or notification by UP that UP failed to meet its obligation. The amount to be
paid APL will be determined by comparing APL Rates to APL Competitor Rates for
the period noted above, and applying the rate differential to the volume of
traffic that APL moved during the time period.

                  Prior to the Audit, UP may take all reasonable steps to
conceal the identities of the entities whose Rates, costs and service are being
reviewed by the Auditor. This may be done by blocking out a shipper's name and
assigning a code to that shipper. The burden of developing such a system is on
UP. UP also has the burden of assuring that the Auditor has access to all
challenged transportation agreements and Rates. In order to assure UP that the
Rates being examined will be held in confidence, the individual accountant(s)
employed by the Auditor who is/are

                                App. 14- Page 13

<PAGE>

assigned to the Audit shall be required to execute a reasonable confidentiality
and non-disclosure agreement prior to undertaking the Audit. Unless otherwise
agreed by the parties, the Audit shall be conducted at UP's headquarters in
Omaha, Nebraska. No materials shall be removed by the Auditor unless the removal
is approved by UP's vice president of law and vice president of marketing and
sales.

                  Prior to beginning the Audit, the Auditor shall have at least
one meeting with UP and APL representatives to define the scope of the Audit, to
agree upon generic categories of documents to be inspected in the course of the
Audit and to develop a process for the Auditor to determine the facts. Although
APL shall reimburse UP for the customary fees and expenses of the Auditor, the
role of the Auditor shall be that of an independent, nonpartisan, expert
arbiter. As necessary during the Audit, the Auditor may, but is not required to,
hold periodic meetings with UP and APL to discuss issues or problems that have
arisen in the course of the Audit. The Auditor shall not have substantive
discussions with either party unless both parties are present. The Auditor shall
prepare a brief written summary of each meeting held with UP and/or APL and
shall furnish a copy of that summary to each party.

                  Once the Audit has been completed, the Auditor shall provide
UP and APL with a report setting forth findings and conclusions. The report may
be oral or in writing but shall at all times preserve the confidentiality of the
Rates and other contract terms of the APL Competitors.

                  APL shall not have access to, nor receive a copy of, any of
the Auditor's workpapers or UP's workpapers, or any document that includes
information on UP's costs, APL Competitors' Rates or other contract terms.

                                App. 14- Page 14

<PAGE>

                  The report shall be final. Neither party will seek review of
the report or the audit process via arbitration or in any other forum.

                  Nothing in this Agreement shall be construed to require UP to

                  (1)  breach any obligation,  including but not limited to
confidentiality  provisions, in any agreements to which UP is, or may become, a
party.
                  (2)  inform APL of any pending negotiations that UP may
have with its customers.

                  (3)  inform APL of the identity of the customer with whom UP
has the transportation agreement at issue.

                  5.   Future Adjustments

                  If the costs of an APL Competitor  increase due to the
expiration of its linehaul Rates and subsequent  renegotiation of new Rates, or
through some other means, UP can increase the level of APL's Rates to the lesser
of (1) a level such that APL's cost is equal to or lower than the cost of the
APL Competitor, except that, to or from Chicago (the Chicago Lanes), the new
Rate must also meet the requirements of Section C.2 of this Appendix 14 (i.e.,
                                                                         ---
$15 advantage) or (2) the level of APL's cost prior to the reductions taken as a
result of the process set forth in this Agreement plus any quarterly or annual
adjustments as provided for in this Agreement.

         D.       Most Favored Nations Provision for EMP Rates.

                  If APL believes that UP has established EMP rates which have
adversely impacted APL's margins or contribution levels and that those rates are
not the result of competitive forces external to UP and APL ("Challenged EMP
Rates"), APL will notify UP. Upon such notification, UP agrees that it will
automatically reduce APL's rates

                                App. 14- Page 15

<PAGE>

according to the methodology set forth below. The comparison to determine APL's
rate will be made as follows:

         .  The starting point is the average round trip EMP rate in a given
lane after incentive refunds, pickup credits or other credits or drop-off
charges are added or deducted as appropriate. The rates to be compared are those
that are in effect at the time of APL's notification to UP.

         .  The following deductions will then be made:

            (1) UP's costs for containers and chassis for the line haul portion
                of their use

            (2) UP's average cost for empty repositioning in that lane

            (3) $40 round trip terminal expense

            (4) $70 round trip administrative expense

            (5) $50 cross-town expense (applicable only to Northeast rates)

         .  The resulting rate will be compared to the 48' and/or 53' Domestic
Rates shown in Exhibit B as adjusted under Appendix 13.

         .  If the round-trip EMP rate is lower than the round-trip APL rate,
then UP will reduce APL's rate an equivalent dollar amount in the direction in
which EMP has a lower rate. If the EMP rate is lower in both directions, then
the APL rate will be reduced in both directions.

         .  No comparison of EMP and APL Rates will be made for any traffic lane
where the annual volume of EMP containers in both the E/B and W/B direction
totals less than 1,000 loaded units. If the volume in either the E/B or W/B
direction is 1,000 units or more, then a comparison can be made. Also, the
parties have agreed to exclude from comparison EMP

                                App. 14- Page 16

<PAGE>

            rates and APL rates in connection with NUMMI volume moving from/to
            Lathrop, CA.

         .  UP will evaluate and adjust annually its cost components. This
            includes cost for containers and chassis, cost for empty
            repositioning, and crosstown expense. Similarly, APL will evaluate
            and adjust annually the terminal expense component which, however,
            shall never exceed $40 per round trip. APL agrees that if APL's cost
            is less than $40 round trip, that number will be used. APL further
            agrees that the number for terminal expense shall never be more than
            $40 round trip.

         .  The traffic lanes which will be used for Most Favored Nations
            comparisons are as follows:

                 Southern California - Chicago
                 Southern California - Northeast
                 Northern California - Chicago
                 Northern California - Northeast
                 Pacific Northwest - Chicago
                 Pacific Northwest - Northeast
                 Los Angeles - Texas
                 Los Angeles - Memphis/New Orleans
                 Los Angeles - Southeast
                 Chicago - Mexico City

            Where rate comparisons are required, the relevant UP linehaul rate
will be UP's division of revenue to/from the UP gateway.

                                App. 14- Page 17

<PAGE>

            If UP disagrees with APL regarding the circumstances surrounding the
Challenged EMP Rates, the parties will submit for arbitration the single
question as to whether the Challenged EMP Rates were the result of competitive
forces external to UP and APL pursuant to the Arbitration provisions in the
Current Agreements. If the Arbitration Panel rules in favor of UP, APL's rates
will be restored to the level which they were before being reduced, and APL
shall refund the difference between the restored rates and the rates APL had
been paying since its rates were reduced.

                                App. 14- Page 18

<PAGE>

                                                                   APPENDIX 17.B

                             Renegotiation of Rates

            If during the term of this Agreement, any party to this Agreement
believes that adjustments to Rates as calculated in accordance with the
provisions of Appendix 13 are, or the level of Rates set forth in this Agreement
is, causing that party to operate in any Traffic Corridor at a revenue/variable
cost ratio of 1.05 or less, that party may request, in writing, renegotiation of
the Rates contained herein; PROVIDED, HOWEVER, that once a party invokes its
right to renegotiate the charges under this Appendix 17.B for a particular
Traffic Corridor, that party may not invoke this right again for the same
Traffic Corridor before another 12 months has passed.

            If at the end of the 120-day period following the party's invoking
its right to renegotiate under this Subsection, the invoking party's
revenue/variable cost ratio has gone back above 1.05, the renegotiation period
will terminate and the Rates will be maintained at their existing level under
this Agreement.

            If at the end of such 120-day period, the invoking party's revenue/
variable cost ratio remains at 1.05 or less and the parties have failed to reach
agreement on what Rates to apply to the affected Traffic Corridor, the party
requesting renegotiation may select an independent auditor, and, subject to the
other party's concurrence as to the selection of the independent auditor, such
auditor shall review the internal management revenue/variable cost information
of the requesting party to verify that party's stated marginal profit level. Any
terms and conditions of this Agreement as well as any confidential cost
information which must be disclosed by any party for purposes of the auditor's
review under this Subsection shall only be disclosed pursuant to the auditor's
execution of a nondisclosure agreement acceptable to all parties.

                               App. 17B - Page 1

<PAGE>

                  The independent auditor will provide its findings as to the
revenue/variable cost ratio of the Traffic Corridor in question in writing to
the parties within 30 days from its receipt of the requesting party's cost
information. If, based on the independent auditor's findings, the parties are
unable to reach agreement within 90 days of the independent auditor's report as
to whether the existing Rates should be maintained or the Rates should be
restated at a particular level, the requesting party may terminate this
Agreement as to the Traffic Corridor in question by giving written notice to all
other parties. If the parties reach agreement on new terms to govern the Traffic
Corridor in question, new terms so negotiated (including possible deletion of
the Traffic Corridor in question from this Agreement) shall become effective on
the date designated by the parties in a written addendum.

                               App. 17B - Page 2

<PAGE>

                                                                     APPENDIX 23

            When Terms and Provisions of UP's Intermodal Rules Apply

         To the extent that this Agreement is silent on any matter, the
Intermodal Rules or AAR Rules shall govern the rights and obligations of the
parties to this Agreement. Where there is a conflict between the Intermodal
Rules and the AAR Rules, the Intermodal Rules shall apply, provided, however,
that UP shall not modify the Intermodal Rules without giving notice to APL and
obtaining APL's consent to the modification which consent will not be
unreasonably withheld. UP shall supply APL with any amendments, updates,
changes, or revisions to UP's Intermodal Rules immediately upon such amendments,
updates, changes, or revisions being made or issued. If UP does not supply such
amendments, updates, changes or revisions to APL within five (5) days of the
effective date, the terms of the amendments, updates, changes or revisions shall
not take effect as to APL until five (5) days after such time as UP delivers any
amendments, updates, changes or revisions to APL. In the event that APL
determines that the proposed modification will have a substantially negative
effect on APL, upon written notification the designated modification shall not
apply to APL until such time as UP and APL are able to negotiate to resolve any
differences. Those provisions of UP Intermodal Rules that are not applicable to
APL for shipments made under provisions of this Agreement are set forth in
Exhibit Z.

                                  Appendix 23

<PAGE>

                                                                       EXHIBIT A

                                   DEFINITIONS

         In this Agreement and the Exhibits attached hereto, the following terms
shall have the following meanings, except as otherwise stated:

Agreement: The Original Agreement dated October 11, 1996, between UP and APL, as
amended and restated herein, and all Appendices and Exhibits to it.

APL Competitor: Ocean carrier or other entity providing Domestic and/or
International service which UP sells to on a wholesale basis in either railroad
supplied or privately owned or controlled containers. Motor carriers are
considered entities to which UP sells on a wholesale basis.

APL Stack Car: As defined in Section 9.B.1, including a Stack Car (a) owned by
APL or (b) under lease to APL; includes all APLX marked Stack Cars.

APL Train: A train consisting of not less than 75 Platforms on Stack Cars
containing only APL or TPI Containers and which is moving under Train Schedules
agreed to by UP and APL.

Auditor: Mutually acceptable independent auditor/consultant who shall have
substantial experience in rail rate matters.

Available or Availability: When UP has placed the loaded Container on a Chassis
and placed the Container and Chassis in the terminal at a location accessible to
APL, draymen, Participants or their agents.

Base Rates: The linehaul divisions, rates and charges set forth in Exhibit B, as
adjusted from time to time pursuant to the terms of this Agreement.

Car Cost: Average per diem and mileage expense per Stack Car or Spine Car

Car Rules: Car Interchange Rules of the Association of American Railroads.

                                 Ex. A - Page 1

<PAGE>

Chassis: Underframe (excluding floor, sides, and roof) equipped with wheels,
landing gear, king pin assembly, and locking safety devices for securing a
Container, used for transporting a Container as a wheeled vehicle.

Comparable Unit: A container of specific size moving between the same geographic
points carrying the same type of freight (international, domestic or empty)
under the terms of this Agreement.

CKD Shipment: Auto parts shipments arranged by APL for foreign automobile
companies in APL or other ocean carrier Containers.

Container: Any container, dry or refrigerated, with or without Chassis, that is
moving under the terms of this Agreement. Each Container (loaded or empty) must
conform to the Container Rules, the applicable regulations of the Federal
Railroad Administration, as amended and in effect at the time of tender to UP,
and all other applicable laws.

Container Rules: Container and Trailer (TOFC/COFC) Interchange Rules of the
Association of American Railroads, as amended and in effect at the time of
transportation under this Agreement.

Control Date: The date upon which UP acquired control of SP, i.e., September 11,
1996.

Decision Date: The date on which the Surface Transportation Board rendered its
decision on the UP-SP merger.

Domestic Shipments: Shipments arranged for by APL on behalf of Participants
moving in rail service between the points covered by this Agreement.

EDI:  APL's Electronic Data Interchange system.

Effective Date:  October 11, 1996

Equipment:  Containers, including attached skeletal Chassis.

                                 Ex. A - Page 2

<PAGE>

Exhibit: Additional terms and conditions applicable to and governing
Transportation, attached hereto and made a part hereof as if set forth fully in
this Agreement.

Failed Service Lane: Service Lane in which UP fails to meet Service Performance
Standards in any Monitoring Period.

FEU: A forty, forty-five, forty-eight or fifty-three foot Container or two
twenty-foot Containers.

Flatcar: Standard intermodal car with or without pedestals capable of handling
Containers in various configurations.

Forty-Eight Hour Period: Time from first 23:59 following actual Availability in
which APL must remove Container from UP's terminal.

FRA: Federal Railroad Administration

Holiday: New Year's Day, Thanksgiving Day, Friday after Thanksgiving, Christmas
Eve, Christmas Day, New Year's Eve.

Intermodal Car: A Flatcar or Stack Car or Spine Car.

Intermodal Rules: Union Pacific Railroad Company Exempt Circular 20-B effective
as of January 1, 1999 and any modifications thereto or successor document made
applicable to this Agreement, as provided in Section 23.

International Market Rates: Rates charged by UP and BNSF to APL's international
steamship competitors on a Comparable Unit as adjusted by Section C.1 of
Appendix 13.

International Shipments: Containers loaded with freight in international
commerce and tendered on behalf of American President Lines, Ltd. or APL Co. PTE
Ltd., or on behalf of a TPI. International Shipments also include CKD Shipments
moving between points in the U.S. on the one hand and points in foreign
countries on the other.

                                 Ex. A - Page 3

<PAGE>

Joint Service: Joint water/rail transportation services provided by American
President Lines, Ltd., and UP under joint through bills of lading.

Notice of Diversion: Notice that APL is diverting traffic and specifying that
traffic.

On-Dock: A facility not operated by UP for loading and unloading containers
directly from or to ocean-going vessels to or from Intermodal Cars. Participant:
Participants shall include domestic shippers, shippers' agents, property
brokers, freight forwarders, others having a beneficial interest in
containerized shipments, or other rail or motor carriers who desire to use APL
or other ocean carrier Containers for transportation of their Domestic
Shipments.

Rates: Divisions, charges and rates.

Scheduled Trains: Trains regularly operated by UP.

Service Default: When UP fails to meet the Service Performance Standards in any
Service Lane for a period of three consecutive Calendar Months or in any five
Calendar Months during any twelve consecutive Calendar Months.

Service Lane: Corridors of traffic as set forth in Appendix 7 to this Agreement.

Service Performance Standard: UP must make Available or Interchange the
applicable percentage of all loaded Containers for each Service Lane at or in
advance of the applicable scheduled Availability or Interchange times set forth
in Train Schedules.

Slot: Space on Stack Car platform capable of handling one (1) FEU.

Spine Car: Articulated or non-articulated flatcar containing from one (1) to
five (5) platforms, each platform capable of handling not more than one FEU per
platform.

Stack Car: Articulated flatcar containing from one (1) to five (5) platforms,
each platform capable of handling two FEUs per platform.

Stack Car Train: See APL Train, above.

                                 Ex. A - Page 4

<PAGE>

Stop Charge: The component cost reflecting set out or pick up at Lathrop or
Portland.

TPI: Person, other than American President Lines, Ltd., offering ocean common
carrier freight transportation for which APL provides intermodal management
services and acts as agent, sometimes known as a third party international.

TPI Shipments: International Shipments in Containers owned or leased by TPIs.

TTX Stack Car: A Stack Car owned by TTX Company.

Train Schedules: The train schedules, including the specific route of movement,
displayed in the Union Pacific's Transportation Plan which have been agreed to
by APL.

UP Stack Car: A Stack Car which is not an APL Stack Car.

UP Service Performance Compliance Report: Report to be published twenty days
after the end of each Monitoring Period.

Utilization Factor: The sum of loaded and empty Containers moving on Stack Cars
divided by the total number of Stack Car Slots.

100% Utilization Rate: Equivalent of a Rate in which there is 100%
utilization of the slots on every Stack Car.

Volume Commitment: Ninety-five percent of APL's high cube domestic business; 95%
of APL's international business originating or terminating at California ports,
including westbound domestic 20' and 40' containers; 85% of APL's international
business to and from the Pacific Northwest; including 20' and 40' westbound
domestic volume.

                                 Ex. A - Page 5

<PAGE>



                                                               Exhibit B Part II

                         THIRD PARTY INTERNATIONAL RATES

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                    FIXED AND ADJUSTED RATE
                                                                                                            COMPONENTS
                                                                                          ------------------------------------------
                                         Contract Reference                                                 Sec. 15.B
------------------------------------------------------------------------------------------------------------------------------------
         Origin                Destination                 Size            Total Rate         Fixed Portion      Adjusted Portion
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                         <C>             <C>                 <C>                  <C>
   Chicago (Canal St.)             Lathrop                  20              483.51              242.07               241.44
       (See Note)                                         40/45             663.16              332.02               331.14
------------------------------------------------------------------------------------------------------------------------------------
                                 Los Angeles                20              409.60              205.07               204.53
                                                          40/45             537.92              269.31               268.61
------------------------------------------------------------------------------------------------------------------------------------
                                   Oakland                  20              483.51              242.07               241.44
                                                          40/45             663.16              332.02               331.14
------------------------------------------------------------------------------------------------------------------------------------
                                   Portland                 20              500.95              250.81               250.14
                                                            40              630.32              315.57               314.75
                                                            45              630.32              315.57               314.75
------------------------------------------------------------------------------------------------------------------------------------
                                   Seattle                  20              500.95              250.81               250.14
                                                            40              500.32              315.57               314.75
                                                            45              500.32              315.57               314.75
------------------------------------------------------------------------------------------------------------------------------------
   Chicago (Global 1)              Lathrop                  20              483.90              242.27               241.63
                                                          40/45             662.76              331.32               330.94
                                                          48/53             682.29              341.59               340.70
------------------------------------------------------------------------------------------------------------------------------------
                                 Los Angeles                20              406.34              203.43               202.91
                                                          40/45             547.54              274.13               273.41
                                                          48/53             567.05              283.90               283.15
------------------------------------------------------------------------------------------------------------------------------------
                                   Oakland                  20              483.80              242.27               241.53
                                                          40/45             662.76              331.32               330.94
                                                          48/53             682.29              341.59               340.70
------------------------------------------------------------------------------------------------------------------------------------
                                   Portland                 20              496.75              248.70               248.05
                                                            40              675.62              338.59               337.03
                                                            45              683.73              342.31               341.42
------------------------------------------------------------------------------------------------------------------------------------
                                Salt Lake City              20              427.42              248.70               213.42
                                                          40/45             565.24              283.00               282.24
------------------------------------------------------------------------------------------------------------------------------------
                                   Seattle                  20              496.75              248.70               248.05
                                                            40              676.52              338.69               337.83
                                                            45              683.73              342.31               341.42
                                                          48/53             703.22              352.08               351.14
------------------------------------------------------------------------------------------------------------------------------------
         Dallas                  Los Angeles                20              358.75              177.50               181.25
                                                          20 TNK            793.29              392.50               400.79
                                                          40/45             679.10              336.00               343.10
                                                          48/53             679.10              336.00               343.10
------------------------------------------------------------------------------------------------------------------------------------
         El Paso                 Los Angeles                20              331.48              164.00               167.48
                                                          20 TNK            766.00              379.00               387.00
                                                          40/45             547.72              271.00               276.72
                                                          48/53             547.72              271.00               276.72
------------------------------------------------------------------------------------------------------------------------------------
         Houston                 Los Angeles                20              357.74              177.00               180.74
                                                          20 TNK            792.28              392.00               400.28
                                                          40/45             677.07              335.00               342.07
                                                          48/53             677.07              335.00               342.07
------------------------------------------------------------------------------------------------------------------------------------
       Kansas City                 Lathrop                  20              452.73              226.66               226.07
                                                          40/45             609.77              305.29               304.48
------------------------------------------------------------------------------------------------------------------------------------
                                 Los Angeles                20              420.91              210.72               210.19
                                                          40/45             552.28              276.51               275.77
------------------------------------------------------------------------------------------------------------------------------------
                                   Oakland                  20              452.73              226.66               226.07
                                                          40/45             609.77              305.29               304.48
------------------------------------------------------------------------------------------------------------------------------------

</TABLE>

<PAGE>


<TABLE>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                    FIXED AND ADJUSTED RATE
                                                                                                            COMPONENTS
                                                                                          ------------------------------------------
                                            Contract Reference                                              Sec. 15.B
------------------------------------------------------------------------------------------------------------------------------------
         Origin                Destination                 Size            Total Rate         Fixed Portion      Adjusted Portion
------------------------------------------------------------------------------------------------------------------------------------
<S>                              <C>                 <C>                 <C>                  <C>                  <C>
                                   Portland                 20              399.33              199.93               199.40
                                                          40/45             614.90              307.86               307.04
------------------------------------------------------------------------------------------------------------------------------------

                                   Seattle                  20              399.33              199.93               199.40
                                                          40/45             614.90              307.86               307.04
------------------------------------------------------------------------------------------------------------------------------------
         Lathrop             Chicago (Canal St.)            20              606.00              300.16               305.85
                                  (See Note)              40/45             841.77              421.44               420.33
------------------------------------------------------------------------------------------------------------------------------------
                              Chicago (Global 1)            20              581.16              290.97               290.19
                                                          40/45             834.79              417.95               416.84
                                                            48              854.32              427.72               426.60
------------------------------------------------------------------------------------------------------------------------------------
         Lathrop                 Kansas City                20              516.34              258.52               257.82
                                                            40              730.89              365.93               364.96
                                                            45              784.30              392.66               391.64
------------------------------------------------------------------------------------------------------------------------------------
                                   Memphis                  20              531.76              266.23               265.53
                                                          40/45             817.14              409.11               408.03
------------------------------------------------------------------------------------------------------------------------------------
         Lathrop                 Memphis (X)                20              506.10              253.38               252.72
                                                          40/45             789.43              395.23               394.20
------------------------------------------------------------------------------------------------------------------------------------
                                    Omaha                   20              575.00              575.00                 NS
                                                          40/45             795.00              795.00                 NA
------------------------------------------------------------------------------------------------------------------------------------
                                  St. Louis                 20              572.82              288.79               288.03
                                                            40              789.43              395.23               394.20
                                                            45              841.77              421.44               420.33
------------------------------------------------------------------------------------------------------------------------------------
       Los Angeles           Chicago (Canal St.)            20              537.92              269.31               268.61
                                  (See Note)              40/45             743.43              372.21               371.22
------------------------------------------------------------------------------------------------------------------------------------
                              Chicago (Global 1)            20              518.32              259.50               258.82
                                                          40/45             743.25              372.12               371.13
                                                            48              762.77              381.88               380.89
------------------------------------------------------------------------------------------------------------------------------------
                                    Dallas                  20              322.37              159.50               162.87
                                                          20 TNK            756.91              374.50               382.41
                                                          40/45             613.41              303.50               309.91
                                                          48/53             613.41              303.50               309.91
------------------------------------------------------------------------------------------------------------------------------------
                                   El Paso                  20              221.31              109.50               111.81
                                                          20 TNK            655.85              324.50               331.35
                                                          40/45             416.35              206.00               210.35
                                                          48/53             416.35              206.00               210.35
------------------------------------------------------------------------------------------------------------------------------------
                                   Houston                  20              322.37              159.50               162.87
                                                          20 TNK            756.91              374.50               382.41
                                                          40/45             612.40              303.00               309.40
                                                          48/53             612.40              303.00               309.40
------------------------------------------------------------------------------------------------------------------------------------
                                 Kansas City                20              473.24              236.93               236.31
                                                            40              693.94              347.43               346.51
                                                            45              720.63              360.80               359.83
------------------------------------------------------------------------------------------------------------------------------------
                                   Memphis                  20              326.41              161.50               154.91
                                                          20 TNK            760.95              376.50               384.45
                                                          40/45             620.48              307.00               313.48
                                                          48/53             620.48              307.00               313.48
------------------------------------------------------------------------------------------------------------------------------------
                                 New Orleans                20              324.39              160.50               163.89
                                                          20 TNK            758.90              375.50               383.40
                                                          40/45             616.44              305.00               311.44
                                                          48/53             616.44              305.00               311.44
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>


<TABLE>

------------------------------------------------------------------------------------------------------------------------------------
                                                                                                    FIXED AND ADJUSTED RATE
                                                                                                            COMPONENTS
                                                                                          ------------------------------------------
                                      Contract Reference                                                      Sec. 15.B
------------------------------------------------------------------------------------------------------------------------------------
         Origin                Destination                 Size            Total Rate         Fixed Portion      Adjusted Portion
------------------------------------------------------------------------------------------------------------------------------------
<S>                          <C>                        <C>               <C>                 <C>                  <C>
                               New Orleans (X)              20              321.36              159.00               162.36
                                                          20 TNK            755.90              374.00               381.90
                                                          40/45             612.40              303.00               309.40
                                                          48/53             612.40              303.00               309.40
------------------------------------------------------------------------------------------------------------------------------------
                                   Oakland                  20              270.63              134.00               136.63
                                                          40/45             332.47              164.50               167.97
------------------------------------------------------------------------------------------------------------------------------------
                                    Omaha                   20              550.00              550.00                 NS
                                                          40/45             725.00              725.00                 NS
------------------------------------------------------------------------------------------------------------------------------------
                                   Portland                 20              474.96              235.00               239.96
                                                          40/45             556.82              275.50               281.32
------------------------------------------------------------------------------------------------------------------------------------
                                Salt Lake City              20              525.00              525.00                 NS
                                                          40/45             550.00              550.00                 NS
------------------------------------------------------------------------------------------------------------------------------------
                                 San Antonio                20              285.99              141.50               144.49
                                                          20 TNK            720.33              384.33               336.00
                                                          40/45             542.57              258.50               274.17
                                                          48/53             542.67              268.50               274.17
------------------------------------------------------------------------------------------------------------------------------------
                                  St. Louis                 20              542.03              271.37               270.66
                                                            40              752.46              376.73               375.73
                                                            45              789.43              395.23               394.20
                                                            48              772.19              386.60               385.59
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                                                EXHIBIT B PART V

                         THIRD PARTY INTERNATIONAL RATES


<TABLE>
<CAPTION>

------------------------------------------------------------------------------------------------------------------------------------
                                                                                                    FIXED AND ADJUSTED RATE
                                                                                                    COMPONENTS
                                                                                          ------------------------------------------
                                                                      Contract Reference                    Sec. 1.B
------------------------------------------------------------------------------------------------------------------------------------
         Origin                Destination                 Size            Total Rate         Fixed Portion      Adjusted Portion
------------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>                             <C>               <C>                   <C>                 <C>
Memphis                     Lathrop                         20               571.78              286.27                285.51
                                                           40/45             698.07              349.49                348.58
------------------------------------------------------------------------------------------------------------------------------------
                            Los Angeles                     20               361.78              179.00                182.78
                                                          20 TNK             796.32              394.00                402.32
                                                           40/45             684.15              338.50                345.65
                                                           48/53             684.15              338.50                345.65
------------------------------------------------------------------------------------------------------------------------------------
                            Oakland                         20               571.78              255.27                255.51
                                                           40/45             698.07              349.49                348.58
------------------------------------------------------------------------------------------------------------------------------------
                            Portland                        20               683.69              342.29                341.40
                                                           40/45             789.43              395.23                394.20
------------------------------------------------------------------------------------------------------------------------------------
                            Seattle                         20               683.69              342.29                341.40
                                                           40/45             789.43              395.23                394.20
------------------------------------------------------------------------------------------------------------------------------------
Memphis (X)                 Lathrop                         20               571.78              286.27                285.51
                                                           40/45             698.07              349.49                348.58
------------------------------------------------------------------------------------------------------------------------------------
                            Oakland                         20               571.78              286.27                285.51
                                                           40/45             698.07              349.49                348.58
------------------------------------------------------------------------------------------------------------------------------------
                            Portland                        20               683.69              342.29                341.40
                                                           40/45             789.43              395.23                394.20
------------------------------------------------------------------------------------------------------------------------------------
                            Seattle                         20               683.69              342.29                341.40
                                                           40/45             789.43              395.23                394.20
------------------------------------------------------------------------------------------------------------------------------------
New Orleans                 Los Angeles                     20               360.77              178.50                182.27
                                                          20 TNK             795.31              393.50                401.81
                                                           40/45             682.13              337.50                344.53
                                                           48/53             682.13              337.50                344.53
------------------------------------------------------------------------------------------------------------------------------------
New Orleans (X)             Los Angeles                     20               358.75              177.50                181.25
                                                          20 TNK             793.29              392.50                400.79
                                                           40/45             677.07              335.00                342.07
                                                           48/53             677.07              335.00                342.07
------------------------------------------------------------------------------------------------------------------------------------
Oakland                     Chicago (Canal St.)             20               599.50              300.15                299.35
                            (See Note)                     40/45             841.77              421.14                420.63
------------------------------------------------------------------------------------------------------------------------------------
                            Chicago (Global)                20               581.16              290.97                250.19
                                                           40/45             834.79              417.95                416.84
                                                            48               854.32              427.72                426.60
------------------------------------------------------------------------------------------------------------------------------------
                            Kansas City                     20               515.84              258.52                257.32
                                                            40               730.89              385.93                364.96
                                                            45               784.30              392.66                391.64
------------------------------------------------------------------------------------------------------------------------------------
                            Los Angeles                     20               270.83              134.00                136.83
                                                           40/45             332.47              164.50                167.97
------------------------------------------------------------------------------------------------------------------------------------
                            Memphis                         20               531.78              288.23                265.53
                                                           40/45             817.14              409.11                408.03
------------------------------------------------------------------------------------------------------------------------------------
                            Memphis (X)                     20               506.10              253.38                252.72
                                                           40/45             789.43              395.23                394.20
------------------------------------------------------------------------------------------------------------------------------------
                            Omaha                           20               575.00              575.00                  NS
                                                           40/45             795.00              795.00                  NS
------------------------------------------------------------------------------------------------------------------------------------
                            Portland                        20               328.41              163.50                164.91
                                                           40/45             393.11              194.50                198.61
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>

------------------------------------------------------------------------------------------------------------------------------------
                                                                                                    FIXED AND ADJUSTED RATE
                                                                                                            COMPONENTS
                                                                                          ------------------------------------------
                                                                        Contract Reference                Sec. 1.B
------------------------------------------------------------------------------------------------------------------------------------
         Origin                Destination                 Size            Total Rate         Fixed Portion      Adjusted Portion
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                         <C>              <C>                 <C>                   <C>
                            St. Louis                       20               572.82              356.79                206.03
                                                            40               789.43              395.23                394.20
                                                            45               841.77              421.44                420.33
------------------------------------------------------------------------------------------------------------------------------------
Omaha                       Los Angeles                     20               435.27              217.92                217.35
                                                          40 RFR            1275.00             1275.00                  NS
                                                           40/45             595.44              298.61                297.83
------------------------------------------------------------------------------------------------------------------------------------
                            Oakland                         20               435.27              217.92                217.35
                                                          40 RFR            1275.00             1275.00                  NS
                                                           40/45             591.33              296.04                295.29
------------------------------------------------------------------------------------------------------------------------------------
                            Portland                      40 RFR            1275.00             1275.00                  NS
------------------------------------------------------------------------------------------------------------------------------------
                            Seattle                         20               435.27              217.92                217.35
                                                          40 RFR            1275.00             1275.00                  NS
                                                           40/45             596.44              298.61                297.83
------------------------------------------------------------------------------------------------------------------------------------
Portland                    Chicago (Canal St.)             20               591.49              296.12                295.37
                            (See Note)                     40/45             789.43              395.23                394.20
------------------------------------------------------------------------------------------------------------------------------------
                            Chicago (Global 1)              20               591.38              296.07                295.31
                                                            40               784.34              392.68                391.66
                                                            45               783.29              392.17                391.12
                                                            48               802.32              401.33                400.89
------------------------------------------------------------------------------------------------------------------------------------
                            Kansas City                     20               472.23              236.42                235.81
                                                            40               697.05              348.98                348.07
                                                            45               723.70              362.34                361.36
------------------------------------------------------------------------------------------------------------------------------------
                            Los Angeles                     20               474.95              235.0                 239.96
                                                           40/45             556.82              275.50                281.32
------------------------------------------------------------------------------------------------------------------------------------
                            Memphis                         20               504.05              252.35                251.70
                                                           40/45             814.07              407.57                406.50
------------------------------------------------------------------------------------------------------------------------------------
                            Memphis (X)                     20               504.05              252.35                251.70
                                                           40/45             814.07              407.57                406.50
------------------------------------------------------------------------------------------------------------------------------------
                            Oakland                         20               325.41              161.50                164.91
                                                           40/45             393.11              194.50                194.61
------------------------------------------------------------------------------------------------------------------------------------
                            Omaha                           20               550.00              550.00                  NS
                                                           40/45             725.00              725.00                  NS
------------------------------------------------------------------------------------------------------------------------------------
                            Salt Lake City                  20               553.00              553.00                  NS
                                                           40/45             757.00              757.00                  NS
------------------------------------------------------------------------------------------------------------------------------------
                            St. Louis                       20               545.11              272.91                272.20
                                                            40               736.05              368.51                367.54
                                                            45               787.38              394.21                393.17
------------------------------------------------------------------------------------------------------------------------------------
Salt Lake City              Los Angeles                     20               103.67              51.91                 51.76
                                                           40/45             172.45              88.34                 86.11
------------------------------------------------------------------------------------------------------------------------------------
                            Oakland                         20               103.67              51.91                 51.76
                                                           40/45             172.45              86.34                 56.11
------------------------------------------------------------------------------------------------------------------------------------
                            Portland                        20               184.78              92.51                 92.27
                                                           40/45             338.76              169.61                169.15
------------------------------------------------------------------------------------------------------------------------------------
                            Seattle                         20               212.48              106.39                106.09
                                                           40/45             393.17              196.84                196.33
------------------------------------------------------------------------------------------------------------------------------------
San Antonio                 Los Angeles                     20               318.31              158.50                159.81
                                                          20 TNK             750.85              371.50                379.25
                                                           40/45             600.27              297.00                303.27
                                                           48/53             600.27              297.00                303.27
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>


<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                    FIXED AND ADJUSTED RATE
                                                                                                            COMPONENTS
                                                                                          ------------------------------------------
                                                                        Contract Reference                Sec. 1.B
------------------------------------------------------------------------------------------------------------------------------------
         Origin                Destination                 Size            Total Rate         Fixed Portion      Adjusted Portion
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                         <C>              <C>                 <C>                   <C>
Seattle                     Chicago (Canal St.)             20               591.49              296.12                295.37
                            (See Note)                     40/45             789.43              395.23                394.20
------------------------------------------------------------------------------------------------------------------------------------
                            Chicago (Global 1)              20               591.38              296.07                295.31
                                                            40               784.34              392.58                391.55
                                                            45               783.29              392.17                391.12
                                                            48               802.82              401.93                400.89
------------------------------------------------------------------------------------------------------------------------------------
                            Kansas City                     20               472.23              236.42                235.81
                                                            40               697.05              348.98                348.07
                                                            45               723.70              362.34                361.36
------------------------------------------------------------------------------------------------------------------------------------
                            Memphis                         20               504.05              252.35                251.70
                                                           40/45             814.07              407.57                406.50
------------------------------------------------------------------------------------------------------------------------------------
                            Memphis (X)                     20               504.05              252.35                251.70
                                                           40/45             814.07              407.57                406.50
------------------------------------------------------------------------------------------------------------------------------------
                            Omaha                           20               550.00              550.00                  NS
                                                           40/45             725.00              725.00                  NS
------------------------------------------------------------------------------------------------------------------------------------
                            Salt Lake City                  20               553.00              553.00                  NS
                                                           40/45             757.00              757.00                  NS
------------------------------------------------------------------------------------------------------------------------------------
                            St. Louis                       20               545.11              272.91                272.20
                                                            40               736.05              358.51                387.54
                                                            45               787.38              394.21                393.17
------------------------------------------------------------------------------------------------------------------------------------
St. Louis                   Lathrop                         20               482.48              241.56                240.92
                                                           40/45             661.09              330.98                330.11
------------------------------------------------------------------------------------------------------------------------------------
                            Los Angeles                     20               451.68              226.14                225.54
                                                           40/45             588.20              294.49                293.71
------------------------------------------------------------------------------------------------------------------------------------
                            Oakland                         20               482.48              241.56                240.92
                                                           40/45             661.09              330.98                330.11
------------------------------------------------------------------------------------------------------------------------------------
                            Portland                        20               431.16              215.86                215.30
                                                           40/45             655.96              328.41                327.55
------------------------------------------------------------------------------------------------------------------------------------
                            Seattle                         20               431.16              215.86                215.30
                                                           40/45             655.96              328.41                327.55
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

NS  - Where reference is made hereto the cost or rate component is not subject
      to adjustment.

(X) - Denotes proportional rate. Rate applies only on traffic interchanged to
      or from a connecting rail corner.

Note: Chicago (Canal St.) - At no time will Canal St. rates be less than the
      current effective Global 1 rate. Should cost adjustments produce a lower
      Canal St. rate, APL will pay the current Global 1 rate.


<PAGE>

                                                           EXHIBIT B PART III
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                             DOMESTIC RATES
------------------------------------------------------------------------------------------------------------------------------------
                    Contract Reference:                             Sec. 16.B     Sec.      Sec. 15E        Sec. 16.D      Sec.16.F
                                                                                  10.A
------------------------------------------------------------------------------------------------------------------------------------
                                                        FIXED       ADJUSTED                               DOMESTIC       AVERAGE
                                          TOTAL      PORTION BASE   PORTION       CAR      UTILIZATION      MARKET         DAILY
 ORIGIN         DESTINATION      SIZE     RATE          RATE       BASE RATE      COST     ADJUSTMENT     ADJUSTMENT       TENDER
------------------------------------------------------------------------------------------------------------------------------------
<S>             <C>             <C>       <C>        <C>            <C>           <C>      <C>            <C>             <C>
Chicago         Lathrop           20'     440.04        235.91       235.27       NS           NS          -31.14            NS
             -----------------------------------------------------------------------------------------------------------------------
(Canal St)                        40'     859.28        436.38       435.70       NS           NS          -13.28            NS
             -----------------------------------------------------------------------------------------------------------------------
(See Note)                        45'     899.32        456.90       455.70       NS           NS          -13.28            NS
             -----------------------------------------------------------------------------------------------------------------------
                                48'/53'   802.06        473.35       462.35       NS           NS         -133.64            NS
------------------------------------------------------------------------------------------------------------------------------------
                Los Angeles       20'     318.08        220.49       219.89       NS           NS         -122.30            NS
             -----------------------------------------------------------------------------------------------------------------------
                                  40'     726.84        407.56       406.50       NS           NS          -87.12            NS
             -----------------------------------------------------------------------------------------------------------------------
                                  45'     759.79        242.01       422.90       NS           NS          -87.12            NS
             -----------------------------------------------------------------------------------------------------------------------
                                48'/53'   757.38        439.94       429.71       NS           NS         -112.29            NS
             -----------------------------------------------------------------------------------------------------------------------
                Modesto           20'     440.04        235.91       235.27       NS           NS          -31.14            NS
             -----------------------------------------------------------------------------------------------------------------------
                                  40'     359.28        436.36       435.70       NS           NS          -13.28            NS
             -----------------------------------------------------------------------------------------------------------------------
                                  45'     899.32        456.90       455.70       NS           NS          -13.28            NS
             -----------------------------------------------------------------------------------------------------------------------
                                48'/53'   802.06        473.35       462.35       NS           NS         -133.64            NS
             -----------------------------------------------------------------------------------------------------------------------
                Oakland           20'     326.96        230.76       230.16       NS           NS         -133.98            NS
             -----------------------------------------------------------------------------------------------------------------------
                                  40'     307.08        424.01       422.30       NS           NS          -39.33            NS
             -----------------------------------------------------------------------------------------------------------------------
                                  45'     524.08        443.54       442.37       NS           NS          -61.33            NS
             -----------------------------------------------------------------------------------------------------------------------
                                48'/53'   815.09        459.47       448.79       NS           NS          -92.36            NS
            ------------------------------------------------------------------------------------------------------------------------
                 Portland         20'     424.38        241.56       240.93       NS           NS          -57.53            NS
            ------------------------------------------------------------------------------------------------------------------------
                                  40'     853.24        434.81       433.56       NS           NS          -15.23            NS
            ------------------------------------------------------------------------------------------------------------------------
                                  45'     815.75        464.10       462.38       NS           NS         -111.23            NS
            ------------------------------------------------------------------------------------------------------------------------
                                48'/53'   871.23        478.49       467.38       NS           NS          -74.64            NS
            ------------------------------------------------------------------------------------------------------------------------
                 Sacramento       20'     440.04        235.91       235.27       NS           NS          -31.14            NS
            ------------------------------------------------------------------------------------------------------------------------
                                  40'     859.28        436.36       435.70       NS           NS          -13.28            NS
            ------------------------------------------------------------------------------------------------------------------------
                                  45'     899.32        456.90       456.70       NS           NS          -13.28            NS
            ------------------------------------------------------------------------------------------------------------------------
                                48'/53'   802.06        473.35       462.35       NS           NS         -133.84            NS
            ------------------------------------------------------------------------------------------------------------------------
                 Salt Lake City   20'     557.23        217.40       216.83       NS           NS          123.00            NS
            ------------------------------------------------------------------------------------------------------------------------
                                  40'     370.72        400.37       399.31       NS           NS           30.04            NS
            ------------------------------------------------------------------------------------------------------------------------
                                  45'     911.56        415.30       415.22       NS           NS           80.04            NS
            ------------------------------------------------------------------------------------------------------------------------
                                48'/53'   811.73        432.23       431.09       NS           NS          -51.59            NS
            ------------------------------------------------------------------------------------------------------------------------
                 Seattle          20'     408.00        225.14       225.55       NS           NS          -43.89            NS
            ------------------------------------------------------------------------------------------------------------------------
                                  40'     849.62        434.81       433.66       NS           NS          -18.85            NS
            ------------------------------------------------------------------------------------------------------------------------
                                  45'     744.21        485.85       464.41       NS           NS         -185.35            NS
            ------------------------------------------------------------------------------------------------------------------------
                                 48'60'   873.32        473.49       467.28       NS           NS          -57.65            NS
------------------------------------------------------------------------------------------------------------------------------------
Chicago         Lathrop           20'     421.34        238.11       234.87      26.70        1.07         -69.53           -6.86
            ------------------------------------------------------------------------------------------------------------------------
(Global 1)                        40'     858.16        424.85       423.02      47.41        2.06         -25.44          -14.02
            ------------------------------------------------------------------------------------------------------------------------
                                  45'     884.47        438.21       436.61      47.41        2.13         -25.44          -14.45
            ------------------------------------------------------------------------------------------------------------------------
                                48'/53'   862.75        464.47       453.19      47.41        0.55         -88.77          -14.10
            ------------------------------------------------------------------------------------------------------------------------
                Los Angeles       20'     336.83        215.06       214.98      25.70        0.34        -119.69            9.44
            ------------------------------------------------------------------------------------------------------------------------
                                  40'     879.42        339.45       340.27       NS           NS            NS              NS
            ------------------------------------------------------------------------------------------------------------------------
                                  45'     741.58        377.81       385.81      47.41        0.65         -90.28           20.18
            ------------------------------------------------------------------------------------------------------------------------
                                48'/53'   819.65        424.89       414.71      47.41        1.17        -100.42           31.39
            ------------------------------------------------------------------------------------------------------------------------
                Modesto           20'     421.24        238.11       234.77      25.70        1.07         -69.53           -8.88
            ------------------------------------------------------------------------------------------------------------------------
                                  40'     858.18        424.85       423.32      47.41        2.06         -25.44          -14.02
            ------------------------------------------------------------------------------------------------------------------------
                                  45'     384.47        438.21       438.81      47.41        2.13         -25.44          -14.45
            ------------------------------------------------------------------------------------------------------------------------
                                48'/53'   862.75        464.47       453.19      47.41        0.55         -88.77          -14.10
            ------------------------------------------------------------------------------------------------------------------------
                Oakland           20'     349.43        229.94       228.81      25.70        1.04        -130.35           -5.71
            ------------------------------------------------------------------------------------------------------------------------
                                  40'     765.98        383.50       382.48       NS           NS            NS              NS
            ------------------------------------------------------------------------------------------------------------------------
                                  45'     815.74        425.36       424.22      47.41        2.07         -69.99          -13.33
            ------------------------------------------------------------------------------------------------------------------------
                                48'/53'   836.30        451.52       440.80      47.41        0.53         -90.09          -13.87
            ------------------------------------------------------------------------------------------------------------------------
                Portland          20'     470.99        259.24       257.57      25.70        0.41         -61.22          -10.91
            ------------------------------------------------------------------------------------------------------------------------
                                  40'     782.47        391.75       390.72       NS           NS            NS              NS
            ------------------------------------------------------------------------------------------------------------------------
                                  45'     593.38        484.99       482.76      47.41        0.81        -101.39          -20.70
            ------------------------------------------------------------------------------------------------------------------------
                                48'/53'   963.01        511.25       498.71      47.41        1.71         -73.77          -22.30
            ------------------------------------------------------------------------------------------------------------------------
                Sacramento        20'     421.24        236.11       234.77      25.70        1.07         -69.53          -6.88
            ------------------------------------------------------------------------------------------------------------------------
                                  40'     858.18        424.85       423.32      47.41        2.06         -25.44          -14.02
            ------------------------------------------------------------------------------------------------------------------------
                                  45'     884.47        438.21       436.61      47.41        2.13         -25.44          -14.45
            ------------------------------------------------------------------------------------------------------------------------
                                48'/53'   882.75        464.47       453.19      47.41        0.55         -38.77          -14.10
            ------------------------------------------------------------------------------------------------------------------------
                Salt Lake City    20'     546.97        214.00       212.92      17.70        5.85          80.51          14.59
            ------------------------------------------------------------------------------------------------------------------------
                                  40'     882.85        381.58       380.68      32.41       13.47          50.88          24.03
            ------------------------------------------------------------------------------------------------------------------------
                                  45'     908.59        394.01       392.98      32.41       13.58          50.88          24.73
            ------------------------------------------------------------------------------------------------------------------------
                                48'/53'   842.81        420.27       418.32      32.41      13.58                         -22.94
            ------------------------------------------------------------------------------------------------------------------------
               Seattle           20'     460.10        244.33       243.18      25.70        0.39          -53.08         -10.42
            ------------------------------------------------------------------------------------------------------------------------
                                  40'     778.37        389.69       388.68       NS           NS             NS             NS
            ------------------------------------------------------------------------------------------------------------------------
                                  45'     782.21        455.17       463.98      47.41        0.77         -157.01         -18.11
            ------------------------------------------------------------------------------------------------------------------------
                                48'/53'   922.93        481.43       469.93      47.41        1.61          -58.08         -21.37
            ------------------------------------------------------------------------------------------------------------------------

</TABLE>


<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                             DOMESTIC RATES
------------------------------------------------------------------------------------------------------------------------------------
                    Contract Reference:                             Sec. 16.B     Sec.      Sec. 15E         Sec. 16.D      Sec.16.F
                                                                                  10.A
------------------------------------------------------------------------------------------------------------------------------------
                                                        FIXED       ADJUSTED                             DOMESTIC       AVERAGE
                                          TOTAL      PORTION BASE   PORTION       CAR      UTILIZATION    MARKET         DAILY
 ORIGIN         DESTINATION      SIZE     RATE          RATE       BASE RATE      COST     ADJUSTMENT   ADJUSTMENT       TENDER
------------------------------------------------------------------------------------------------------------------------------------
<S>            <C>              <C>       <C>        <C>            <C>          <C>       <C>          <C>             <C>
                                  40'     882.85        381.58       380.68      32.41       13.17        50.38           24.03
            ------------------------------------------------------------------------------------------------------------------------
                                  45'     908.59        394.01       392.98      32.41       13.58        50.38           24.73
            ------------------------------------------------------------------------------------------------------------------------
                                48'/53'   842.81        420.27       418.32      32.41       13.59       -34.72           22.94
            ------------------------------------------------------------------------------------------------------------------------
                Seattle           20'     450.10        244.33       243.18      25.70        0.39       -53.08          -10.42
            ------------------------------------------------------------------------------------------------------------------------
                                  40'     778.37        389.59       388.58       NS           NS          NS              NS
            ------------------------------------------------------------------------------------------------------------------------
                                  45'     782.21        455.17       453.98      47.41        0.77      -157.01          -18.11
            ------------------------------------------------------------------------------------------------------------------------
                                48'/53'   922.93        481.43       469.93      47.41        1.37       -58.08          -21.37
------------------------------------------------------------------------------------------------------------------------------------
Dallas          Los Angeles       20'     361.72        151.50       154.70      20.00       35.32         0.00            NS
------------------------------------------------------------------------------------------------------------------------------------
                                  40'     543.19        210.30       214.35      41.00       50.79        25.96            NS
------------------------------------------------------------------------------------------------------------------------------------
                                  45'     516.03        243.00       248.13      41.00       57.96        25.95            NS
------------------------------------------------------------------------------------------------------------------------------------
                                  48'     543.16        246.00       251.20      41.00       58.61       -53.55            NS
------------------------------------------------------------------------------------------------------------------------------------
                                  53'     575.35        250.50       266.00      41.00       51.30       -53.55            NS
------------------------------------------------------------------------------------------------------------------------------------
El Paso         Los Angeles       40'     506.12        209.50       213.92      33.00       49.70         0.00            NS
------------------------------------------------------------------------------------------------------------------------------------
                                  45'     506.12        209.50       213.32      33.00       49.70         0.00            NS
------------------------------------------------------------------------------------------------------------------------------------
Houston         Los Angeles       20'     360.51        151.50       154.70      19.00       35.41         0.00            NS
------------------------------------------------------------------------------------------------------------------------------------
                                  40'     518.01        226.00       230.77      39.00       53.99         1.75            NS
------------------------------------------------------------------------------------------------------------------------------------
                                  45'     598.89        262.00       267.53      39.00       61.91       -31.75            NS
------------------------------------------------------------------------------------------------------------------------------------
                                  48'     620.99        257.00       252.43      39.00       60.81         1.75            NS
------------------------------------------------------------------------------------------------------------------------------------
                                  53'     628.83        260.50       266.00      39.00       61.58         1.75            NS
------------------------------------------------------------------------------------------------------------------------------------
Kansas City     Lathrop           20'     479.00        479.00         NS         NS           NS           NS             NS
            ------------------------------------------------------------------------------------------------------------------------
                                  40'     725.00        725.00         NS         NS           NS           NS             NS
            ------------------------------------------------------------------------------------------------------------------------
                                  45'     765.00        765.00         NS         NS           NS           NS             NS
            ------------------------------------------------------------------------------------------------------------------------
                                48'/53'   300.00        300.00         NS         NS           NS           NS             NS
            ------------------------------------------------------------------------------------------------------------------------
                Los Angeles       20'     448.00        448.00         NS         NS           NS           NS             NS
            ------------------------------------------------------------------------------------------------------------------------
                                  40'     500.00        500.00         NS         NS           NS           NS             NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     875.00        875.00         NS         NS           NS           NS             NS
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   700.00        700.00         NS         NS           NS           NS             NS
           -------------------------------------------------------------------------------------------------------------------------
                Modesto           20'     479.00        479.00         NS         NS           NS           NS             NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     725.00        725.00         NS         NS           NS           NS             NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     765.00        765.00         NS         NS           NS           NS             NS
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   300.00        300.00         NS         NS           NS           NS             NS
           -------------------------------------------------------------------------------------------------------------------------
                Oakland           20'     465.00        465.00         NS         NS           NS           NS             NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     700.00        700.00         NS         NS           NS           NS             NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     733.00        733.00         NS         NS           NS           NS             NS
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   750.00        750.00         NS         NS           NS           NS             NS
           -------------------------------------------------------------------------------------------------------------------------
                Portland          20'     425.00        425.00         NS         NS           NS           NS             NS
           -------------------------------------------------------------------------------------------------------------------------
                                40'/45'   950.00        950.00         NS         NS           NS           NS             NS
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   998.00        998.00         NS         NS           NS           NS             NS
           -------------------------------------------------------------------------------------------------------------------------
                Sacramento        20'     479.00        479.00         NS         NS           NS           NS             NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     725.00        725.00         NS         NS           NS           NS             NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     765.00        765.00         NS         NS           NS           NS             NS
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   800.00        800.00         NS         NS           NS           NS             NS
           -------------------------------------------------------------------------------------------------------------------------
                Seattle           20'     425.00        425.00         NS         NS           NS           NS             NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     960.00        960.00         NS         NS           NS           NS             NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     970.00        970.00         NS         NS           NS           NS             NS
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'  1020.00       1020.00         NS         NS           NS           NS             NS
------------------------------------------------------------------------------------------------------------------------------------
Lathrop         Chicago         40'/45'   900.42        469.24       488.00       NS           NS        -36.82            NS
                (Canal St)
                (See Note)
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   882.40        469.24          458.32       NS           NS     -45.16            NS
           -------------------------------------------------------------------------------------------------------------------------
                Chicago         40'/45'   885.33        444.14          442.56      47.41       12.21      -.74          -17.75
                (Global 1)
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   875.46        444.14          433.66      47.41       14.95    -47.15          -17.54
           -------------------------------------------------------------------------------------------------------------------------
                Kansas City       20'     403.00        403.00            NS         NS           NS         NS            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     725.00        725.00            NS         NS           NS         NS            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     750.00        750.00            NS         NS           NS         NS            NS
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   775.00        775.00            NS         NS           NS         NS            NS
           -------------------------------------------------------------------------------------------------------------------------
                Memphis         40'/45'   797.32        388.04          386.59      45.00         NS     -11.71          -10.10
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   799.54        388.04          386.59      45.00         NS      -9.37          -10.12
           -------------------------------------------------------------------------------------------------------------------------
                Memphis (X)     40'/45'   783.01        374.57          373.25      45.00         NS         NS          -2.91
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   775.84        374.57          365.79      45.00         NS         NS          -2.32
           -------------------------------------------------------------------------------------------------------------------------
                St. Louis         20'     442.00        442.00            NS         NS           NS         NS            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     800.00        800.00            NS         NS           NS         NS            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     825.00        825.00            NS         NS           NS         NS            NS
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   850.00        850.00            NS         NS           NS         NS            NS
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       2

<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                             DOMESTIC RATES
------------------------------------------------------------------------------------------------------------------------------------
                    Contract Reference:                             Sec. 16.B     Sec.      Sec. 15E         Sec. 16.D      Sec.16.F
                                                                                  10.A
------------------------------------------------------------------------------------------------------------------------------------
                                                        FIXED       ADJUSTED                             DOMESTIC       AVERAGE
                                          TOTAL      PORTION BASE   PORTION       CAR      UTILIZATION    MARKET         DAILY
 ORIGIN         DESTINATION      SIZE     RATE          RATE       BASE RATE      COST     ADJUSTMENT   ADJUSTMENT       TENDER
------------------------------------------------------------------------------------------------------------------------------------
<S>             <C>             <C>       <C>        <C>           <C>            <C>      <C>          <C>             <C>
Los Angeles      Chicago          20'    570.32         282.16          281.41       NS           NS        6.75             NS
           -------------------------------------------------------------------------------------------------------------------------
                (Canal St)
                (See Note)
           -------------------------------------------------------------------------------------------------------------------------
                                40'/45'   756.52        397.29          396.23       NS           NS      -35.00            NS
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   733.04        397.29          388.04       NS           NS      -52.29            NS
           -------------------------------------------------------------------------------------------------------------------------
                Chicago           20'     571.79        281.10          279.85      25.70        3.24      -6.65          -11.45
                (Global 1)
           -------------------------------------------------------------------------------------------------------------------------
                                40'/45'   756.96        381.44          380.45      47.41        4.72     -41.92          -15.16
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   736.63        381.44          372.59      47.41        5.24     -55.29          -14.76
           -------------------------------------------------------------------------------------------------------------------------
                Dallas            20'     204.04        90.00           91.90       20.00        2.14       0.00            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     556.19        257.50          242.52      40.00        5.52      10.65            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     529.25        239.00          244.05      40.00        5.65       0.55            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  48'     516.07        231.50          236.39      40.00        5.39       2.79            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  53'     502.79        225.00          229.75      40.00        5.25       2.79            NS
           -------------------------------------------------------------------------------------------------------------------------
                Houston           20'     291.87        133.00          135.81      20.00        3.06       0.00            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     607.07        273.00          278.77      39.00        6.27      10.63            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     539.24        239.50          244.36      39.00        5.15      10.83            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  48'     517.06        234.50          239.45      39.00        6.44      -2.33            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  53'     553.33        252.50          257.13      39.00        6.33      -1.63            NS
           -------------------------------------------------------------------------------------------------------------------------
                Kansas City       20'     453.00        453.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     625.00        625.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     650.00        650.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   675.00        675.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                Memphis           20'     260.99        108.00          110.28      24.00        3.71      15.00            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     493.10        233.50          238.43      47.00        7.96     -33.79            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     527.98        250.50          255.79      47.00        8.48     -33.79            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  48'     595.60        268.50          274.17      47.00        9.04      -3.11            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  53'     609.97        275.50          281.32      47.00        9.26      -3.11            NS
------------------------------------------------------------------------------------------------------------------------------------
Los Angeles     New Orleans       20'     314.75        142.50          145.51      22.00        4.75       0.00            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     612.56        271.50          277.23      43.00        9.07      11.36            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     573.21        301.00          307.36      43.00        9.99      11.98            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  48'     658.24        305.00          312.46      43.00       10.14     -15.36            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  53'     585.44        271.50          277.23      43.00        9.07     -15.36            NS
           -------------------------------------------------------------------------------------------------------------------------
                New Orleans (X)   20'     353.78        163.00          166.44      19.00        5.34       0.00            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     563.57        254.50          259.87      39.00        8.48       1.72            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     542.03        244.00          249.15      39.00        8.16       1.72            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  48'     514.66        232.00          236.90      39.00        7.79      -1.03            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  53'     508.50        229.00          233.64      39.00        7.89      -1.03            NS
           -------------------------------------------------------------------------------------------------------------------------
                Oakland         40'/45'   329.44        163.00          166.44       NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                Portland        40'/45'   549.74        272.00          277.74       NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  48'     679.10        338.00          345.10       NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                San Antonio       20'     276.58        127.00          129.68      17.00        2.90       0.00            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     524.21        240.00          245.07      35.00        5.52      -1.38            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     506.85        237.50          236.39      35.00        5.34      -1.38            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  48'     583.76        263.50          265.04      39.00        6.02      10.20            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  53'     535.79        240.00          245.07      35.00        5.52      10.20            NS
           -------------------------------------------------------------------------------------------------------------------------
                St. Louis         20'     516.00        516.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     700.00        700.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     725.00        725.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   750.00        750.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
Memphis         Lathrop           20'     537.25        261.09          259.46      23.00         NS        NS            -6.30
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     946.48        457.55          455.91      45.00         NS        NS           -11.98
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     984.74        478.95          473.26      45.00         NS        NS            -12.47
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   989.17        484.15          472.54      45.00         NS        NS            -12.52
           -------------------------------------------------------------------------------------------------------------------------
                Los Angeles       20'     316.21        138.50          141.42      23.00       19.06      -5.77            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     703.18        310.00          316.55      46.00       42.32     -11.59            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     744.00        329.00          335.85      46.00       44.74     -11.59            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  48'     747.37        326.00          332.38      46.00       44.25      -1.26            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  53'     717.90        312.00          318.59      46.00       42.57      -1.26            NS
           -------------------------------------------------------------------------------------------------------------------------
                Modesto           20'     537.25        261.09          258.66      23.00         NS        NS            -5.50
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     946.88        457.57          456.31      45.00         NS        NS            -11.98
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
                                        3

<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                             DOMESTIC RATES
------------------------------------------------------------------------------------------------------------------------------------
                    Contract Reference:                             Sec. 16.B     Sec.      Sec. 15E         Sec. 16.D      Sec.16.F
                                                                                  10.A
------------------------------------------------------------------------------------------------------------------------------------
                                                        FIXED       ADJUSTED                             DOMESTIC       AVERAGE
                                          TOTAL      PORTION BASE   PORTION       CAR      UTILIZATION    MARKET         DAILY
 ORIGIN         DESTINATION      SIZE     RATE          RATE        BASE RATE     COST     ADJUSTMENT   ADJUSTMENT       TENDER
------------------------------------------------------------------------------------------------------------------------------------
<S>             <C>             <C>       <C>        <C>           <C>            <C>      <C>          <C>             <C>
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     984.74        476.95          475.26     45.00         NS        NS            -12.47
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   989.17        484.15          472.54      45.00         NS        NS            -12.52
           -------------------------------------------------------------------------------------------------------------------------
                Oakland           20'     630.70        308.37          307.31      23.00         NS        NS            -7.98
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     945.53        456.80          455.70      45.00         NS        NS            -11.97
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     989.22        479.00          477.74      45.00         NS        NS            -12.52
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   984.31        481.58          470.19      45.00         NS        NS            -12.46
           -------------------------------------------------------------------------------------------------------------------------
                Portland          20'     550.00        550.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     950.00        950.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'    1080.88        532.99          530.61      45.00         NS        NS            -27.72
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'  1070.60        532.99          520.06      45.00         NS        NS            -27.45
           -------------------------------------------------------------------------------------------------------------------------
                Sacramento        20'     537.25        261.09          259.96      23.00         NS        NS            -6.80
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     946.48        457.55          455.91      45.00         NS        NS            -11.98
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     984.76        476.95          475.28      45.00         NS        NS            -12.47
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   989.17        484.15          472.54      45.00         NS        NS            -12.52
           -------------------------------------------------------------------------------------------------------------------------
                Seattle           20'     650.00        650.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     850.00        850.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'    1081.80        532.97          531.57      45.00         NS        NS            -27.74
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'  1070.91        532.98          520.39      45.00         NS        NS            -27.46
------------------------------------------------------------------------------------------------------------------------------------
 Memphis (X)    Lathrop           20'     538.88        243.52          242.53      22.00       12.98      23.67          -6.82
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     860.43        451.89          450.29      45.00       24.88     -100.74         -10.89
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     900.73        471.81          470.13      45.00       25.93     -100.74         -11.40
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   968.33        487.78          476.04      45.00       38.56     -67.76          -12.25
           -------------------------------------------------------------------------------------------------------------------------
                Modesto           20'     538.88        243.52          242.53      23.00       11.98      23.67          -6.82
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     860.43        451.89          450.29      45.00       24.88     -100.74         -10.89
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     900.73        471.31          470.13      45.00       25.93     -100.74         -11.40
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   968.33        457.75          476.04      45.00       38.56     -67.76          -12.26
           -------------------------------------------------------------------------------------------------------------------------
                Oakland           20'     506.61        237.46          236.57      23.00       11.56      3.34           -6.41
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     869.35        438.85          433.70      45.00       24.11     -61.32          -11.00
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     914.08        458.96          457.74      45.00       25.27     -61.32          -11.57
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   924.05        474.90          463.55      45.00       38.54     -86.24          -11.70
           -------------------------------------------------------------------------------------------------------------------------
                Portland          20'     566.81        266.75          265.33      23.00       19.76       6.50          -14.53
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     990.00        990.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     970.70        518.58          516.25      45.00       39.51     -123.75         -24.89
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'  1109.59        534.53          521.55      45.00       87.24      -50.73         -28.45
           -------------------------------------------------------------------------------------------------------------------------
                Sacramento        20'     535.88        243.82          242.53      23.00       12.98       20.37          -6.82
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     869.93        461.89          450.29      45.00       24.38     -100.74         -10.89
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     900.73        471.81          470.13      45.00       25.93     -100.74         -11.40
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   968.33        487.75          476.04      45.00       39.56      -67.75         -12.26
           -------------------------------------------------------------------------------------------------------------------------
                Seattle           20'     512.01        251.34          250.94      23.00       18.58      -18.71         -13.14
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     973.00        973.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     952.26        488.77          487.47      45.00       37.37      -81.93         -24.42
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'  1116.22        504.71          492.77      45.00       82.93       19.43         -28.62
------------------------------------------------------------------------------------------------------------------------------------
   Modesto      Chicago         40'/45'   821.39        429.66          428.55       NS           NS       -36.82            NS
                (Canal St)
                (See Note)
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   804.19        329.66          419.69       NS           NS      -45.16            NS
           -------------------------------------------------------------------------------------------------------------------------
                Chicago         40'/45'   812.41        407.14          405.54      47.41       11.24     -42.74          -16.28
                (Global 1)
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   802.59        407.14          397.51      47.41       13.77     -47.16          -16.08
           -------------------------------------------------------------------------------------------------------------------------
                Kansas City       20'     403.00        403.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     725.00        725.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     750.00        750.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   775.00        775.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
               Memphis          40'/45'   797.82        388.04          388.59      45.00         NS      -11.71          -10.10
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   791.53        388.04          378.85      46.00         NS      -10.24          -10.32
            ------------------------------------------------------------------------------------------------------------------------
                Memphis (X)     40'/45'   783.01        374.67          373.25      45.00         NS        NS             -9.91
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   775.64        374.67          365.79      45.00         NS        NS             -9.82
           -------------------------------------------------------------------------------------------------------------------------
                St. Louis         20'     442.00        442.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     800.00        800.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     825.00        825.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   850.00        850.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
 New Orleans     Los Angeles      20'     438.01        193.00          197.08      22.00       25.93      0.00             NS
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       4

<PAGE>


<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                             DOMESTIC RATES
------------------------------------------------------------------------------------------------------------------------------------
                    Contract Reference:                             Sec. 16.B     Sec.      Sec. 15E         Sec. 16.D      Sec.16.F
                                                                                  10.A
------------------------------------------------------------------------------------------------------------------------------------
                                                        FIXED       ADJUSTED                             DOMESTIC       AVERAGE
                                          TOTAL      PORTION BASE   PORTION       CAR      UTILIZATION    MARKET         DAILY
 ORIGIN         DESTINATION      SIZE     RATE          RATE        BASE RATE     COST     ADJUSTMENT   ADJUSTMENT       TENDER
------------------------------------------------------------------------------------------------------------------------------------
<S>             <C>              <C>      <C>        <C>           <C>            <C>      <C>          <C>             <C>
                                  40'     640.73        307.50          313.99      44.00       41.88     -66.64            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     867.37        413.00          421.72      44.00       55.29     -66.64            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  48'     859.65        384.50          392.52      44.00       51.57     -12.94            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  53'     733.10        325.50          332.37      44.00       44.17     -12.94            NS
------------------------------------------------------------------------------------------------------------------------------------
New Orleans     Los Angeles       20'     437.87        192.00          196.05      20.00       25.68      4.14             NS
(X)
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     756.28        340.00          347.18      35.00       45.70      -5.50            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     726.58        322.50          329.31      39.00       43.47      -5.50            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  48'     703.17        313.50          320.12      39.00       42.32     -11.77            NS
           -------------------------------------------------------------------------------------------------------------------------
                                  53'     652.69        290.00          296.12      39.00       39.34     -11.77            NS
------------------------------------------------------------------------------------------------------------------------------------
Oakland         Chicago           20'     457.73        227.17          226.56       NS           NS       4.00             NS
                (Canal St)
                See Note
           -------------------------------------------------------------------------------------------------------------------------
                                40'/45'   857.22        427.51          426.48       NS           NS       3.23             NS
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   795.40        428.12          418.16       NS           NS      -50.88            NS
           -------------------------------------------------------------------------------------------------------------------------
                Chicago           20'     448.10        224.05          222.96      25.70        5.77     -21.40          -8.98
                (Global 1)
           -------------------------------------------------------------------------------------------------------------------------
                                40'/45'   837.16        404.05          402.99      47.41       11.17     -11.69          -16.77
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   786.16        404.05          394.66      47.41       13.67     -57.88          -15.75
           -------------------------------------------------------------------------------------------------------------------------
                Kansas City       20'     447.00        447.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     675.00        675.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     700.00        700.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   700.00        700.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                Los Angeles     40'/45'   329.44        163.00          166.44       NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                Memphis         40'45'    806.85        387.52          386.48      45.00         NS       -1.94          -10.21
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   787.76        387.52          378.49      45.00         NS      -13.28          -9.97
           -------------------------------------------------------------------------------------------------------------------------
                Memphis (X)     40'45'    783.44        374.67          373.69      45.00         NS        NS            -9.92
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   775.81        374.67          365.96      45.00         NS        NS            -9.82
           -------------------------------------------------------------------------------------------------------------------------
                Portland        40'/45'   388.05        192.00          196.05       NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  48'     529.53        262.00          267.53       NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                St. Louis         20'     496.00        496.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     750.00        750.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     775.00        775.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   800.00        800.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
Portland        Chicago           20'     461.95        231.28          230.67       NS           NS       0.00             NS
                (Canal St)
                (See Note)
           -------------------------------------------------------------------------------------------------------------------------
                                40'/45'   783.37        436.36          435.72       NS           NS      -88.71            NS
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   765.30        436.36          425.71       NS           NS      -96.77            NS
           -------------------------------------------------------------------------------------------------------------------------
                Chicago           20'     446.96        222.51          221.41      25.70        7.67     -24.40          -5.93
                (Global 1)
           -------------------------------------------------------------------------------------------------------------------------
                                40'/45'   778.55        405.09          404.02      47.41       14.99     -82.63          -10.33
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   758.11        405.09          395.68      47.41        9.78     -89.77          -10.08
           -------------------------------------------------------------------------------------------------------------------------
                Kansas City       20'     505.00        505.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     577.00        577.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     305.00        305.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   961.00        961.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                Los Angeles     40'/45'   549.74        272.00          277.74       NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  48'     734.10        386.00          348.10       NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                Memphis         40'/45'   908.71        441.49          440.34      45.00         NS      -29.34          11.22
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   928.31        467.19          456.33      45.00         NS      -51.67          11.46
           -------------------------------------------------------------------------------------------------------------------------
                Memphis (X)     407.45    938.42        441.49          440.34      45.00         NS        NS            11.59
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   980.63        467.19          456.33      45.00         NS        NS            12.11
           -------------------------------------------------------------------------------------------------------------------------
                Oakland         40'/45'   388.05        192.00          196.05       NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  48'     529.53        262.00          267.53       NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                St. Louis         20'     544.00        544.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     386.00        386.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'    1012.00       1012.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                48'/50'   350.00        350.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
Sacramento      Chicago         40'45'    821.39        429.66          428.55       NS           NS      -36.82            NS
                (Canal St)
                (See Note)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       5

<PAGE>


<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                             DOMESTIC RATES
------------------------------------------------------------------------------------------------------------------------------------
                    Contract Reference:                             Sec. 16.B     Sec.      Sec. 15E         Sec. 16.D      Sec.16.F
                                                                                  10.A
------------------------------------------------------------------------------------------------------------------------------------
                                                        FIXED       ADJUSTED                             DOMESTIC       AVERAGE
                                          TOTAL      PORTION BASE   PORTION       CAR      UTILIZATION    MARKET         DAILY
 ORIGIN         DESTINATION      SIZE     RATE          RATE        BASE RATE     COST     ADJUSTMENT   ADJUSTMENT       TENDER
------------------------------------------------------------------------------------------------------------------------------------
<S>             <C>              <C>      <C>        <C>           <C>            <C>      <C>          <C>             <C>
                                48'/53'   804.19        429.66          419.69       NS           NS      -45.16            NS
------------------------------------------------------------------------------------------------------------------------------------
                Chicago         40'/45'   812.41        407.14          405.64      47.41       11.24     -42.74         -16.28
                (Global 1)
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53'   802.59        407.14          397.51      47.41       13.77     -47.16         -16.08
------------------------------------------------------------------------------------------------------------------------------------
                Kansas City       20'     403.00        403.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                  40'     725.00        725.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                  45'     750.00        750.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53'   775.00        775.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                Memphis         40'/45'   797.82        388.04          386.59      45.00         NS      -11.71          -10.10
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53'   791.63        388.04          378.85      45.00         NS      -10.24          -10.02
------------------------------------------------------------------------------------------------------------------------------------
                Memphis (X)     40'/45'   783.01        374.67          373.25      46.00         NS        NS            -9.91
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53'   775.64        374.67          366.79      45.00         NS        NS            -9.82
------------------------------------------------------------------------------------------------------------------------------------
                St. Louis         20'     442.00        442.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                  40'     800.00        800.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                  45'     825.00        825.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53'   850.00        850.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
Salt Lake City  Chicago         40'/45'   500.00        500.00            NS         NS           NS        NS              NS
                (Canal St)
                (See Note)
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53'   500.00        500.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                Chicago         40'/45'   500.00        500.00            NS         NS           NS        NS              NS
                (Global 1)
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53'   500.00        500.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                Lathrop           20'     317.53        154.19          153.34      10.00         NS       0.00             NS
------------------------------------------------------------------------------------------------------------------------------------
                                  40'     400.00        180.25          179.53      17.00         NS       23.22            NS
------------------------------------------------------------------------------------------------------------------------------------
                                  45'     409.35        185.02          184.11      17.00         NS       23.22            NS
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53'   429.46        203.02          201.53      17.00         NS       7.91             NS
------------------------------------------------------------------------------------------------------------------------------------
                Los Angeles       20'     317.72        154.19          153.53      10.00         NS       0.00             NS
------------------------------------------------------------------------------------------------------------------------------------
                                  40'     379.45        179.94          179.44      17.00         NS       3.07             NS
------------------------------------------------------------------------------------------------------------------------------------
                                  45'     391.69        186.05          185.57      17.00         NS       3.07             NS
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53'   448.51        201.99          200.95      17.00         NS       28.57            NS
------------------------------------------------------------------------------------------------------------------------------------
                Oakland           20'     317.72        154.19          153.53      10.00         NS       0.00             NS
------------------------------------------------------------------------------------------------------------------------------------
                                  40'     383.44        179.94          179.44      17.00         NS       7.06             NS
------------------------------------------------------------------------------------------------------------------------------------
                                  45'     393.62        185.02          184.54      17.00         NS       7.06             NS
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53'   431.30        202.50          201.44      17.00         NS       10.36            NS
------------------------------------------------------------------------------------------------------------------------------------
                Portland          20'     210.63        94.57           94.06       22.00         NS       0.00             NS
------------------------------------------------------------------------------------------------------------------------------------
                                  40'     334.22        146.48          146.09      41.00         NS       0.65             NS
------------------------------------------------------------------------------------------------------------------------------------
                                  45'     389.35        174.23          173.77      41.00         NS       0.35             NS
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53'   420.32        190.17          189.15      41.00         NS       0.00             NS
------------------------------------------------------------------------------------------------------------------------------------
                Seattle           20'     240.36        108.96          108.40      23.00         NS       0.00             NS
------------------------------------------------------------------------------------------------------------------------------------
                                  40'     371.74        195.82          195.31      43.00         NS       62.39            NS
------------------------------------------------------------------------------------------------------------------------------------
                                  45'     363.03        201.47          200.95      43.00         NS      -82.39            NS
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53'   476.74        217.41          216.33      43.00         NS       0.00             NS
------------------------------------------------------------------------------------------------------------------------------------
San Antonio     Los Angeles       20'     331.49        139.00          141.94      18.00       32.55      0.00             NS
------------------------------------------------------------------------------------------------------------------------------------
                                  40'     552.04        228.50          233.33      36.00       54.21      0.00             NS
------------------------------------------------------------------------------------------------------------------------------------
                                  45'     456.79        186.00          189.93      36.00       44.86      0.00             NS
------------------------------------------------------------------------------------------------------------------------------------
                                  48'     453.43        184.50          188.40      36.00       44.53      0.00             NS
------------------------------------------------------------------------------------------------------------------------------------
                                  53'     568.84        236.00          240.98      36.00       55.86      0.00             NS
------------------------------------------------------------------------------------------------------------------------------------
Seattle         Chicago           20'     347.67        225.63          225.04       NS           NS      -103.00           NS
                (Canal St)
                (See Note)
------------------------------------------------------------------------------------------------------------------------------------
                                40'/45'   767.32        431.72          430.59       NS           NS      -94.99            NS
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53'   809.13        431.72          421.68       NS           NS      -44.27            NS
------------------------------------------------------------------------------------------------------------------------------------
                Chicago           20'     336.02        217.89          216.78      25.70        7.51     -127.40         -4.46
                (Global 1)
------------------------------------------------------------------------------------------------------------------------------------
                                40'/45'   751.10        440.45          399.40      47.41       14.83     -20.91          -10.09
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53'   793.89        400.46          391.14      47.41        9.68     -44.27          -10.53
------------------------------------------------------------------------------------------------------------------------------------
                Kansas City       20'     505.00        505.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                  40'     868.00        868.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                  45'     894.00        894.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       6

<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                             DOMESTIC RATES
------------------------------------------------------------------------------------------------------------------------------------
                    Contract Reference:                             Sec. 16.B     Sec.      Sec. 15E         Sec. 16.D      Sec.16.F
                                                                                  10.A
------------------------------------------------------------------------------------------------------------------------------------
                                                        FIXED       ADJUSTED                             DOMESTIC       AVERAGE
                                          TOTAL      PORTION BASE   PORTION       CAR      UTILIZATION    MARKET         DAILY
 ORIGIN         DESTINATION      SIZE     RATE          RATE        BASE RATE     COST     ADJUSTMENT   ADJUSTMENT       TENDER
------------------------------------------------------------------------------------------------------------------------------------
<S>             <C>              <C>      <C>        <C>           <C>            <C>      <C>          <C>             <C>
                                48'/53'   938.00        938.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                Memphis         40'/45' 1,136.19        467.19          465.97      45.00         NS      144.00          14.03
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53'   980.62        487.19          456.33      45.00         NS      -19.76          11.86
------------------------------------------------------------------------------------------------------------------------------------
                Memphis (X)     40'/45'   972.71        458.45          457.25      45.00         NS        NS            12.01
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53'   963.13        458.45          447.79      45.00         NS        NS            11.89
------------------------------------------------------------------------------------------------------------------------------------
                St. Louis         20'     544.00        544.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                  40'     948.00        948.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                  45'     974.00        974.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53' 1,036.00      1,036.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
  St. Louis     Lathrop           20'     510.00        510.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     760.00        760.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  45'     800.00        800.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                48'/53'   950.00        950.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                Los Angeles       20'     403.00        403.00            NS         NS           NS        NS              NS
           -------------------------------------------------------------------------------------------------------------------------
                                  40'     700.00        700.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                  45'     733.00        733.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53'   300.00        300.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                Modesto           20'     510.00        510.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                  40'     760.00        760.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                  45'     800.00        800.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53'   950.00        950.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                Oakland           20'     497.00        497.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                  40'     780.00        780.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                  45'     500.00        500.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53'   900.00        900.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                Portland          40'   1,000.00      1,000.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                  45'     998.00        998.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53' 1,005.00      1,005.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                Sacramento        20'     510.00        510.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                  40'     780.00        780.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                  45'     800.00        800.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53'   950.00        950.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                Seattle           40'    1010.00       1010.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                  45'    1020.00       1020.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
                                48'/53'  1070.00       1070.00            NS         NS           NS        NS              NS
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

NS    When reference is made here, the cost or rate component is not subject
      to adjustment.
(X)-  Denotes proportionate rate. Rate applies only on traffic interchanged to
      or from a connecting rail carrier.
Note: Chicago (Canal St) - Rates are exempt from Car Cost, Utilization and
      Average Daily Tender adjustment. At no time will Canal St rates be less
      than the current effective Global 1 rate. Should cost adjustments produce
      a lower Canal St rate APL will pay the current Global 1 rate.


                                       7

<PAGE>


<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                EMPTY RATES
-------------------------------------------------------------------------------------------------------------
                                    Contract Reference  FIXED AND ADJUSTED RATE COMPONENTS
-------------------------------------------------------------------------------------------------------------
                                                        Sec. 16.B                  Sec. 10.A
-------------------------------------------------------------------------------------------------------------
      ORIGIN      DESTINATION             SIZE          TOTAL          FIXED         ADJUSTED       CAR COST
                                                         RATE         PORTION         PORTION
-------------------------------------------------------------------------------------------------------------
<S>              <C>                    <C>          <C>            <C>             <C>            <C>
Chicago (Canal      Denver                    20'       280.00          140.00         140.00
St.)
(See Note)
-------------------------------------------------------------------------------------------------------------
                    Lathrop                   20'   =   341.84          171.14         170.70
-------------------------------------------------------------------------------------------------------------
                                           40/45'       473.24          236.95         236.31
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Oakland                   20'       341.84          171.14         170.70
-------------------------------------------------------------------------------------------------------------
                                           40/45'       473.24          236.95         236.31
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Portland                  20'   =   316.16          158.30         157.86
-------------------------------------------------------------------------------------------------------------
                                           40/46'   =   367.50          184.00         183.50
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Salt Lake City            20'       300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'       300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Seattle                   20'       316.16          158.30         157.86
-------------------------------------------------------------------------------------------------------------
                                           40/45'       367.50          184.00         183.50
-------------------------------------------------------------------------------------------------------------
                                           48/53'       300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
Chicago (Doiton)    Houston                   20'       130.13           53.50          64.63          22.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       260.26          107.00         109.26          44.00
-------------------------------------------------------------------------------------------------------------
                    Kansas City               20'   =    96.00           48.00          48.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   162.00           81.00          81.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   162.00           81.00          81.00
-------------------------------------------------------------------------------------------------------------
                    Memphis                   20'   =   114.00           57.00          57.00
---------------------------------------------------- --------------------------------------------------------
                                           40/45'   =   198.00           99.00          99.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   198.00           99.00          99.00
-------------------------------------------------------------------------------------------------------------
                    St. Louis                 20'   =    90.00           45.00          45.00
-------------------------------------------------------------------------------------------------------------
                                           45/50'   =   151.00           75.50          75.50
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   151.00           75.50          75.50
-------------------------------------------------------------------------------------------------------------
Chicago (Global 1)  Denver                    20'   =   240.00          120.00         120.00
-------------------------------------------------------------------------------------------------------------
                    Kansas City               20'   =   165.00           82.50          82.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   235.00          117.50         117.50
-------------------------------------------------------------------------------------------------------------
                    Lathrop                   20'       341.71          171.08         170.63
-------------------------------------------------------------------------------------------------------------
                                           40/45'       472.20          236.40         235.30
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   302.39          151.20         151.19
-------------------------------------------------------------------------------------------------------------
                    Los Angeles               20'       315.92          158.17         157.75
-------------------------------------------------------------------------------------------------------------
                                           40/45'       420.87          210.81         210.06
-------------------------------------------------------------------------------------------------------------
                                           48/53'  =    302.39          151.20         151.19
-------------------------------------------------------------------------------------------------------------
                    Oakland                   20'       341.71          171.08         170.63
-------------------------------------------------------------------------------------------------------------
                                           40/45'       472.20          236.40         235.80
-------------------------------------------------------------------------------------------------------------
                                           48/53'  =    302.39          151.20         151.19
-------------------------------------------------------------------------------------------------------------
                    Portland                  20'       315.92          158.17         157.75
-------------------------------------------------------------------------------------------------------------
                                           40/45'       368.08          184.29         183.79
-------------------------------------------------------------------------------------------------------------
                                           48/53'  =    302.39          151.20         151.19
-------------------------------------------------------------------------------------------------------------
                    Salt Lake City            20'       316.02          158.22         157.80
-------------------------------------------------------------------------------------------------------------
                                           40/45'       424.97          212.76         212.21
-------------------------------------------------------------------------------------------------------------
                                           48/53'  =    302.29          151.20         151.19
-------------------------------------------------------------------------------------------------------------
                    Seattle                   20'       315.92          158.17         157.75
-------------------------------------------------------------------------------------------------------------
                                           40/45'       368.08          184.29         183.79
-------------------------------------------------------------------------------------------------------------
                                           48/53'  =    302.39          151.20         151.19
-------------------------------------------------------------------------------------------------------------
Dallas              Portland                  20'  =    600.00          300.00         300.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'  =    825.00          412.50         412.50
-------------------------------------------------------------------------------------------------------------
                    Seattle                   20'  =    600.00          300.00         300.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'  =    825.00          412.50         412.50
-------------------------------------------------------------------------------------------------------------
                    Chicago  (Dolton)      48/53'       243.54          120.50         123.04
-------------------------------------------------------------------------------------------------------------
                    Houston                   20'        34.27           13.00          13.27           8.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'        57.55           25.00          26.55          15.00
-------------------------------------------------------------------------------------------------------------
                    Los Angeles               20'       208.82           38.00          87.82          35.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       417.63          172.00         175.63          70.00
-------------------------------------------------------------------------------------------------------------
                    Memphis                   20'        56.50           23.50          24.00           9.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       112.99           47.00          47.99          18.00
-------------------------------------------------------------------------------------------------------------
</TABLE>


                                                                      1

<PAGE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                EMPTY RATES
-------------------------------------------------------------------------------------------------------------
                                    Contract Reference  FIXED AND ADJUSTED RATE COMPONENTS
                                                        Sec. 16.B                  Sec. 10.A
-------------------------------------------------------------------------------------------------------------
      ORIGIN        DESTINATION             SIZE       TOTAL            FIXED        ADJUSTED        CAR COST
                                                        RATE           PORTION       PORTION
-------------------------------------------------------------------------------------------------------------
<S>               <C>                  <C>             <C>            <C>            <C>             <C>
Dallas              New Orleans               20'        74.64           30.60          31.14          13.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       149.29           61.00          52.29          26.00
-------------------------------------------------------------------------------------------------------------
                    Phoenix                   20'       161.40           66.50          67.90          27.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       322.31          133.00         135.31          54.00
-------------------------------------------------------------------------------------------------------------
                    San Antonio               20'        40.34           16.00          16.34           3.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'        81.68           32.00          32.68          17.00
-------------------------------------------------------------------------------------------------------------
                    St. Louis                 20'        88.77           36.50          37.27          15.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       177.54           73.00          74.54          30.00
-------------------------------------------------------------------------------------------------------------
Denver              Los Angeles               20'   =   229.00          114.50         114.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   229.00          114.50         114.50
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   229.00          114.50         114.50
-------------------------------------------------------------------------------------------------------------
                    Oakland                   20'   =   260.00          130.00         130.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   260.00          130.00         130.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   260.00          130.00         130.00
-------------------------------------------------------------------------------------------------------------
                    Salt Lake City            20'   =   106.00           53.00          53.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   181.00           90.50          90.50
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   181.30           90.50          90.50
-------------------------------------------------------------------------------------------------------------
                    Seattle                   20'   =   229.00          114.50         114.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   229.00          114.50         114.50
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   229.00          114.50         114.50
-------------------------------------------------------------------------------------------------------------
El Paso             Houston                   20'        93.83           39.50          40.33          14.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       186.57           79.00          80.57          27.00
-------------------------------------------------------------------------------------------------------------
                    Los Angeles               20'        97.88           40.50          41.38          16.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'        94.71           31.00          32.71          31.00
-------------------------------------------------------------------------------------------------------------
                    New Orleans               20'       135.20           57.00          58.20          20.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'       274.41          114.00         116.41          41.00
-------------------------------------------------------------------------------------------------------------
Houston             Chicago, Dolton        48/53'       260.72          129.00         131.72
-------------------------------------------------------------------------------------------------------------
                    Dallas                    20'        34.27           18.00          13.27           3.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'        68.55           26.00          26.55          16.00
-------------------------------------------------------------------------------------------------------------
                    Los Angeles               20'       194.89           87.00          81.89          33.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       289.38          180.00         183.38          26.00
-------------------------------------------------------------------------------------------------------------
                    Memphis                   20'        65.37           27.00          27.57          11.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       131.14           54.00          55.14          22.00
-------------------------------------------------------------------------------------------------------------
                    New Orleans               20'        43.37           17.50          17.87           8.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'        87.74           35.00          35.74          17.00
-------------------------------------------------------------------------------------------------------------
                    Phoenix                   20'       147.28           50.50          61.78          25.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       294.56          121.00         123.56          50.00
-------------------------------------------------------------------------------------------------------------
                    Portland                  20'   =   600.00          300.00         300.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   825.10          412.50         412.50
-------------------------------------------------------------------------------------------------------------
                    San Antonio               20'        28.21           10.00          10.21           8.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'        56.42           20.00          20.42          16.00
-------------------------------------------------------------------------------------------------------------
                    Seattle                   20'   =   600.00          300.00         300.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   825.00          412.50         412.50
-------------------------------------------------------------------------------------------------------------
                    St Louis               96.84'        40.00           40.84          16.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       193.69           80.00          81.69          32.00
-------------------------------------------------------------------------------------------------------------
Kansas City         Chicago (Dolton)          20'   =    96.00           48.00          48.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   162.00           81.00          81.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   162.00           81.00          81.00
-------------------------------------------------------------------------------------------------------------
                    Chicago, (Global 1)       20'   =   165.00           82.50          82.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   235.00          117.50         117.50
-------------------------------------------------------------------------------------------------------------
                    Kansas City               20'   =    65.00           32.50          32.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =    65.00           32.50          32.50
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =    65.00           32.50          32.50
-------------------------------------------------------------------------------------------------------------
                    Lathrop                   20'       341.34          171.14         170.20
-------------------------------------------------------------------------------------------------------------
                                           40/45'       473.24          236.93         236.31
-------------------------------------------------------------------------------------------------------------
                                           48/53'       300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Los Angeles               20'       308.04          154.23         153.81
-------------------------------------------------------------------------------------------------------------
                                           40/45'       410.73          205.64         205.09
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
</TABLE>


                                                                      2

<PAGE>


<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                EMPTY RATES
-------------------------------------------------------------------------------------------------------------
                                    Contract Reference  FIXED AND ADJUSTED RATE COMPONENTS
-------------------------------------------------------------------------------------------------------------
                                                        Sec. 16.B                   Sec. 10.A
-------------------------------------------------------------------------------------------------------------
    ORIGIN         DESTINATION             SIZE       TOTAL            FIXED          ADJUSTED       CAR COST
                                                       RATE           PORTION         PORTION
-------------------------------------------------------------------------------------------------------------
<S>              <C>                    <C>          <C>            <C>             <C>            <C>
Kansas City         Memphis                   20'   =    78.00           39.00          39.00
-------------------------------------------------------------------------------------------------------------
                                          4/0/45'   =   126.00           63.00          63.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   126.00           63.00          63.00
-------------------------------------------------------------------------------------------------------------
                    Memphis (X)               20'   =    73.00           36.50          36.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   116.00           58.00          58.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   116.00           58.00          58.00
-------------------------------------------------------------------------------------------------------------
                    New Orleans               20'   =   143.00           71.50          71.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   256.00          128.00         128.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   256.00          128.00         128.00
-------------------------------------------------------------------------------------------------------------
                    Oakland                   20'       341.84          171.14         170.70
-------------------------------------------------------------------------------------------------------------
                                           40/45'       473.24          236.93         236.31
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Phoenix                   20'       161.40           66.50          67.90          27.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       322.81          133.00         135.81          54.00
-------------------------------------------------------------------------------------------------------------
                    Seattle                   20'       292.57          146.48         146.09
-------------------------------------------------------------------------------------------------------------
                                           40/45'       316.16          158.30         157.86
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    St. Louis                 20'   =    68.00           34.00          34.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   107.00           53.50          53.50
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   107.00           53.50          53.50
-------------------------------------------------------------------------------------------------------------
                    St. Louis (X)          48/53'   =   177.00           88.50          88.50
-------------------------------------------------------------------------------------------------------------
Lathrop             Chicago (Canal St)        20'       316.16          158.30         157.86
-------------------------------------------------------------------------------------------------------------
                    (See Note)             40/45'       316.16          158.30         157.86
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Chicago (Global 1)        20'       280.95          140.67         140.28
-------------------------------------------------------------------------------------------------------------
                                           40/45'       316.60          158.51         158.09
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   302.39          151.20         151.19
-------------------------------------------------------------------------------------------------------------
                    Kansas City               20'       277.16          138.77         138.39
-------------------------------------------------------------------------------------------------------------
                                           40/45'       316.16          158.30         157.86
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Lathrop (X)               20'   =    57.00           28.50          28.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =    52.00           26.00          26.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =    52.00           26.00          26.00
-------------------------------------------------------------------------------------------------------------
                    Los Angeles            48/53'   =   310.00          155.00         155.00
-------------------------------------------------------------------------------------------------------------
                    Memphis                   20'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Memphis (X)               20'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Oakland                   20'   =    62.00           31.00          31.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =    62.00           31.00          31.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =    62.00           31.00          31.00
-------------------------------------------------------------------------------------------------------------
                    Portland                  20'   =   185.00           92.50          92.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Seattle                   20'   =   190.00           95.00          95.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    St. Louis                 20'       311.05          155.73         155.32
-------------------------------------------------------------------------------------------------------------
                                           40/45'       316.16          158.30         157.86
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
Lewiston, ID        Portland                  20'   =   150.00           75.00          75.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'       200.00          100.00         100.00
-------------------------------------------------------------------------------------------------------------
                    Seattle                   20'   =   170.00           85.00          85.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   225.00          112.50         112.50
-------------------------------------------------------------------------------------------------------------
</TABLE>


                                                                      3

<PAGE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                EMPTY RATES
-------------------------------------------------------------------------------------------------------------
                                    Contract Reference  FIXED AND ADJUSTED RATE COMPONENTS
-------------------------------------------------------------------------------------------------------------
                                                        Sec. 16.B                  Sec. 10.A
-------------------------------------------------------------------------------------------------------------
      ORIGIN           DESTINATION        SIZE        TOTAL             FIXED         ADJUSTED       CAR COST
                                                      RATE             PORTION        PORTION
-------------------------------------------------------------------------------------------------------------
<S>               <C>                    <C>         <C>            <C>              <C>            <C>
Los Angeles         Chicago (Canal St)        20'       317.21          158.81         158.40
-------------------------------------------------------------------------------------------------------------
                    (See Note)             40/45'       317.21          158.81         158.40
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   299.00          149.50         149.50
-------------------------------------------------------------------------------------------------------------
                    Chicago (Global 1)        20'       273.78          137.07         136.71
-------------------------------------------------------------------------------------------------------------
                                           40/45'       316.60          158.51         158.09
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   302.39          151.20         151.19
-------------------------------------------------------------------------------------------------------------
                    Dallas                    20'       208.82           88.00          37.82          35.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'       417.63          172.00         175.63          70.00
-------------------------------------------------------------------------------------------------------------
                    El Paso                   20'        98.86           40.50          41.36          17.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'       197.71           81.00          82.71          34.00
-------------------------------------------------------------------------------------------------------------
                    Houston                   20'       194.59           80.00          81.59          33.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'       389.38          160.00         163.38          66.00
-------------------------------------------------------------------------------------------------------------
                    Kansas City               20'       316.16          158.30         157.86
-------------------------------------------------------------------------------------------------------------
                                           40/45'       316.16          158.30         157.86
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Los Angeles (X)           20'   =    65.00           32.50          32.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =    60.00           30.00          30.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =    60.00           30.00          30.00
-------------------------------------------------------------------------------------------------------------
                    Memphis                   20'       280.26          107.00         109.26          44.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'       520.52          214.00         218.52          88.00
-------------------------------------------------------------------------------------------------------------
                    New Orleans               20'       237.06           97.50          99.56          40.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'       474.12          195.00         199.12          80.00
-------------------------------------------------------------------------------------------------------------
                    Oakland                   20'   =   178.00           89.00          89.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Omaha                  40/45'   =   425.00          212.50         212.50
-------------------------------------------------------------------------------------------------------------
                    Portland                  20'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Salt Lake City         40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    San Antonio               20'       170.48           70.00          71.48          29.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       340.96          140.00         142.96          58.00
-------------------------------------------------------------------------------------------------------------
                    Seattle                   20'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    St. Louis                 20'       316.16          158.30         157.86
-------------------------------------------------------------------------------------------------------------
                                           40/45'       316.16          158.30         157.86
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
  Memphis           Dallas                    20'        58.50           23.50          24.00           9.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       112.99           47.00          47.99          18.00
-------------------------------------------------------------------------------------------------------------
                    Houston                   20'        66.57           27.00          27.57          12.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       133.14           54.00          55.14          24.00
-------------------------------------------------------------------------------------------------------------
                    Kansas City               20'   =   160.00           80.00          80.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   180.00           90.00          90.00
-------------------------------------------------------------------------------------------------------------
                    Lathrop                   20'   =   325.00          162.50         162.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   450.00          225.00         225.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Los Angeles               20'       260.25          107.00         109.25          44.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       520.52          214.00         215.52          88.00
-------------------------------------------------------------------------------------------------------------
                    New Orleans               20'        97.34           40.00          40.34          17.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       196.69           80.00          81.69          35.00
-------------------------------------------------------------------------------------------------------------
                    Oakland                   20'   =   325.00          162.00         162.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   450.00          225.00         225.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Phoenix                   20'       212.85           87.50          89.35          36.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'       425.70          175.00         178.70          72.00
-------------------------------------------------------------------------------------------------------------
                    Portland                  20'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   350.00          175.00         175.00
-------------------------------------------------------------------------------------------------------------
                                           48/53    =   300.00          150.00         150.00
</TABLE>


                                                                      4

<PAGE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                EMPTY RATES
-------------------------------------------------------------------------------------------------------------
                                    Contract Reference  FIXED AND ADJUSTED RATE COMPONENTS
-------------------------------------------------------------------------------------------------------------
                                                        Sec. 16.B                  Sec. 10.A
-------------------------------------------------------------------------------------------------------------
      ORIGIN            DESTINATION        SIZE       TOTAL     FIXED PORTION     ADJUSTED       CAR COST
                                                      RATE                         PORTION
-------------------------------------------------------------------------------------------------------------
<S>               <C>                    <C>         <C>            <C>              <C>            <C>
Memphis             Seattle                   20'   =   300.00          175.00         175.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   350.00          175.00         175.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =    30.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    St. Louis                 20'        47.41           19.50          19.91           8.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'        94.82           39.00          39.82          16.00
-------------------------------------------------------------------------------------------------------------
Memphis (X)         Kansas City            40/45'   =   115.00           58.00          58.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   125.00           62.50          62.50
-------------------------------------------------------------------------------------------------------------
                    Memphis                   20'   =    36.00           17.50          17.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =    36.00           17.50          17.50
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =    36.00           17.50          17.50
-------------------------------------------------------------------------------------------------------------
New Orleans         Dallas                    20'        77.64           30.50          31.14          16.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       155.29            61.0          62.29          32.00
-------------------------------------------------------------------------------------------------------------
                    Houston                   20'        43.37           17.50          17.87           8.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'        87.74           35.00          35.74          17.00
-------------------------------------------------------------------------------------------------------------
                    Los Angeles               20'       237.06           97.50          99.56          40.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       474.12          196.00         198.12          80.00
-------------------------------------------------------------------------------------------------------------
                    Phoenix                   20'       189.85           78.00          79.85          32.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       379.29          156.00         159.29          64.00
-------------------------------------------------------------------------------------------------------------
                    St. Louis                 20'       129.12           53.00          54.12          22.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       258.24          106.00         108.24          44.00
-------------------------------------------------------------------------------------------------------------
Oakland             Chicago (Canal St.)       20'       317.21          158.81         158.40
-------------------------------------------------------------------------------------------------------------
                    (See Note)             40/45'       316.60          158.51         158.09
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Chicago (Global 1)        20'       280.95          140.67         140.28
-------------------------------------------------------------------------------------------------------------
                                           40/45'       316.60          158.51         158.09
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   302.39          151.20         151.19
-------------------------------------------------------------------------------------------------------------
                    Kansas City               20'       277.16          138.77         138.39
-------------------------------------------------------------------------------------------------------------
                                           40/45'       316.15          158.30         157.85
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Lathrop                   20'   =     0.00            0.00           0.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =     0.00            0.00           0.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =     0.00            0.00           0.00
-------------------------------------------------------------------------------------------------------------
                    Los Angeles               20'       188.87           94.57          94.30
-------------------------------------------------------------------------------------------------------------
                                           40/45'       311.05          155.73         155.32
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Memphis                   20'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Memphis (X)               20'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Oakland (X)               20'   =    75.00           37.50          37.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =    75.00           37.50          37.50
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =    75.00           37.50          37.50
-------------------------------------------------------------------------------------------------------------
                    Omaha                  40/45'   =   425.00          212.50         212.50
-------------------------------------------------------------------------------------------------------------
                    Portland                  20'   =   185.00           92.50          92.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Seattle                   20'   =   190.00           95.00          95.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                   St. Louis                  20'       311.05          155.73         155.32
-------------------------------------------------------------------------------------------------------------
                                           40/45'       316.16          158.30         157.86
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
</TABLE>


                                                                      5

<PAGE>


<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                EMPTY RATES
-------------------------------------------------------------------------------------------------------------
                                    Contract Reference  FIXED AND ADJUSTED RATE COMPONENTS
-------------------------------------------------------------------------------------------------------------
                                                        Sec. 16.B                  Sec. 10.A
-------------------------------------------------------------------------------------------------------------
      ORIGIN            DESTINATION        SIZE       TOTAL     FIXED PORTION     ADJUSTED       CAR COST
                                                      RATE                         PORTION
-------------------------------------------------------------------------------------------------------------
<S>                 <C>                   <C>         <C>       <C>               <C>            <C>
Omaha               Kansas City               20'   =   157.00           78.50          78.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   157.00           78.50          78.50
-------------------------------------------------------------------------------------------------------------
                    Los Angeles               20'   =   275.00          137.50         137.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   350.00          175.00         175.00
-------------------------------------------------------------------------------------------------------------
                    Oakland                   20'   =   275.00          137.50         137.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   350.00          175.00         175.00
-------------------------------------------------------------------------------------------------------------
                    Seattle                   20'   =   275.00          137.50         137.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   350.00          175.00         175.00
-------------------------------------------------------------------------------------------------------------
Phoenix             Dallas                    20'       161.40           66.50          67.90          27.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       322.81          133.00         135.81          54.00
-------------------------------------------------------------------------------------------------------------
                    Houston                   20'       147.28           60.50          61.78          25.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       294.56          121.00         123.56          50.00
-------------------------------------------------------------------------------------------------------------
                    Kansas City               20'       161.40           66.50          67.90          27.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       322.81          133.00         135.81          54.00
-------------------------------------------------------------------------------------------------------------
                    Memphis                   20'       212.85           87.50          89.35          36.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       425.70          175.00         178.70          72.00
-------------------------------------------------------------------------------------------------------------
                    New Orleans               20'       189.85           78.00          79.85          32.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       379.29          156.00         159.29          64.00
-------------------------------------------------------------------------------------------------------------
                    St. Louis                 20'       195.70           80.50          82.20          33.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       391.40          161.00         164.40          66.00
-------------------------------------------------------------------------------------------------------------
Portland            Chicago (Canal St.)       20'       316.16          158.30         157.86
-------------------------------------------------------------------------------------------------------------
                    (See Note)             40/45'       316.16          158.30         157.86
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Chicago (Global 1)        20'       290.21          145.29         144.92
-------------------------------------------------------------------------------------------------------------
                                           40/45'       316.60          158.51         157.09
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   302.39          151.20         151.19
-------------------------------------------------------------------------------------------------------------
                    Dallas                    20'   =   600.00          300.00         300.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   825.00          412.50         412.50
-------------------------------------------------------------------------------------------------------------
                    Houston                   20'   =   600.00          300.00         300.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   825.00          412.50         412.50
-------------------------------------------------------------------------------------------------------------
                    Kansas City               20'       316.16          158.30         157.86
-------------------------------------------------------------------------------------------------------------
                                           40/45'       316.16          158.30         157.86
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Lathrop                   20'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Lewiston, ID              20'   =   150.00           75.00          75.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   200.00          100.00         100.00
-------------------------------------------------------------------------------------------------------------
                    Los Angeles               20'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Memphis                   20'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Memphis (X)               20'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Oakland (X)               20'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Omaha                  40/45'   =   425.00          212.50         212.50
-------------------------------------------------------------------------------------------------------------
                    Seattle                   20'   =   101.00           50.50          50.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   150.00           75.00          75.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   150.00           75.00          75.00
-------------------------------------------------------------------------------------------------------------
                    St. Louis                 20'       316.16          158.30         157.86
-------------------------------------------------------------------------------------------------------------
                                           40/45'       316.16          158.30         157.86
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
</TABLE>



                                                                      6

<PAGE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                EMPTY RATES
-------------------------------------------------------------------------------------------------------------
                                    Contract Reference  FIXED AND ADJUSTED RATE COMPONENTS
-------------------------------------------------------------------------------------------------------------
                                                        Sec. 16.B                  Sec. 10.A
-------------------------------------------------------------------------------------------------------------
      ORIGIN            DESTINATION        SIZE       TOTAL     FIXED PORTION     ADJUSTED       CAR COST
                                                      RATE                         PORTION
--------------------------------------------------------------------------------------------------------------
<S>                 <C>                   <C>         <C>       <C>               <C>            <C>
Portland            Portland               40/45'   =    35.00           17.50          17.50
-------------------------------------------------------------------------------------------------------------
                    Seattle                   20'   =    95.00           47.50          47.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   138.00           69.00          69.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   138.00           69.00          69.00
-------------------------------------------------------------------------------------------------------------
Roseville           Portland                  20'       269.82          133.50         136.32
-------------------------------------------------------------------------------------------------------------
                                           40/53'       331.46          164.00         167.46
-------------------------------------------------------------------------------------------------------------
                                           48/53'       430.50          213.00         217.50
-------------------------------------------------------------------------------------------------------------
Salt Lake City      Chicago (Canal St)        20'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    (See Note)             40/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Chicago (Global 1)        20'   =   296.62          148.31         148.31
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   302.33          151.17         151.16
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   302.39          151.20         151.19
-------------------------------------------------------------------------------------------------------------
                    Denver                    20'   =      106           53.00          53.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   181.00           90.50          90.50
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   181.00           90.50          90.50
-------------------------------------------------------------------------------------------------------------
                    Kansas City               20'   =   154.00           77.00          77.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   278.00          139.00         139.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   278.00          139.00         139.00
-------------------------------------------------------------------------------------------------------------
                    Lathrop                   20'   =    98.00           49.00          49.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   165.00           82.50          82.50
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   165.00           82.50          82.50
-------------------------------------------------------------------------------------------------------------
                    Los Angeles               20'   =    98.00           49.00          49.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   165.00           82.50          82.50
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   165.00           82.50          82.50
-------------------------------------------------------------------------------------------------------------
                    Oakland                   20'   =    98.00           49.00          49.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   165.00           82.50          82.50
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   165.00           82.50          82.50
-------------------------------------------------------------------------------------------------------------
                    Portland                  20'   =   133.00           66.50          66.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   237.00          118.50         118.50
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   237.00          118.50         118.50
-------------------------------------------------------------------------------------------------------------
                    Seattle                   20'   =   146.00           73.00          73.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   266.00          133.00         133.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   266.00          133.00         133.00
-------------------------------------------------------------------------------------------------------------
                    St. Louis                 20'   =   189.00           94.50          94.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
San Antonio         Dallas                    20'        41.34           16.00          16.34           9.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'        81.68           32.00          32.68          17.00
-------------------------------------------------------------------------------------------------------------
                    Houston                   20'        28.21           10.00          10.21           8.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'        56.42           20.00          20.42          16.00
-------------------------------------------------------------------------------------------------------------
                    Los Angeles               20'       170.48           70.00          71.48          29.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       340.96          140.00         142.96          68.00
-------------------------------------------------------------------------------------------------------------
                    New Orleans               20'        70.58           27.50          28.08          15.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'       141.16           55.00          56.16          30.00
-------------------------------------------------------------------------------------------------------------
Seattle             Chicago (Canal St)        20'       316.16          158.30         157.86
-------------------------------------------------------------------------------------------------------------
                    (See Note)             40/45'       316.16          158.00         157.36
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                   Chicago (Global 1)         20'       309.72          155.86         154.86
-------------------------------------------------------------------------------------------------------------
                                           40/45'       315.56          157.99         157.57
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   302.39          151.20         151.19
-------------------------------------------------------------------------------------------------------------
                    Dallas                    20'   =   600.00          300.00         300.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   825.00          412.50         412.50
-------------------------------------------------------------------------------------------------------------
                    Houston                   20'   =   600.00          300.00         300.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   825.00          412.50         412.50
-------------------------------------------------------------------------------------------------------------
                    Kansas City               20'       315.14          157.78         157.36
-------------------------------------------------------------------------------------------------------------
                                           40/45'       315.14          157.78         157.36
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
</TABLE>



                                                                      7

<PAGE>

<TABLE>
<CAPTION>

-------------------------------------------------------------------------------------------------------------
                                                EMPTY RATES
-------------------------------------------------------------------------------------------------------------
                                    Contract Reference  FIXED AND ADJUSTED RATE COMPONENTS
-------------------------------------------------------------------------------------------------------------
                                                       Sec. 16.B                  Sec. 10.A
-------------------------------------------------------------------------------------------------------------
      ORIGIN            DESTINATION        SIZE       TOTAL     FIXED PORTION     ADJUSTED       CAR COST
                                                      RATE                         PORTION
-------------------------------------------------------------------------------------------------------------
<S>                 <C>                   <C>         <C>       <C>               <C>            <C>
Seattle             Lathrop                   20'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Lewiston, ID              20'   =   170.00           85.00          85.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   225.00          112.50         112.50
-------------------------------------------------------------------------------------------------------------
                    Los Angeles               20'   =   238.00          119.00         119.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Memphis                   20'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Memphis (X)               20'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Oakland                   20'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Omaha                  40/45'   =   425.00          212.50         212.50
-------------------------------------------------------------------------------------------------------------
                    Portland                  20'   =    89.00           44.50          44.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   142.00           71.00          71.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   142.00           71.00          71.00
-------------------------------------------------------------------------------------------------------------
                    Portland (X)              20'   =    95.00           47.50          47.50
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   138.00           69.00          69.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   138.00           69.00          69.00
-------------------------------------------------------------------------------------------------------------
                    St. Louis                 20'       315.14          157.78         157.36
-------------------------------------------------------------------------------------------------------------
                                           40/45'       315.14          157.78         157.36
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
St. Louis           Chicago (Canal St)        20'   =    98.00           49.00          49.00
-------------------------------------------------------------------------------------------------------------
                    (See Note)             40/45'   =   166.00           83.00          83.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   166.00           83.00          83.00
-------------------------------------------------------------------------------------------------------------
                    Dallas                    20'        88.77           36.50          37.27          16.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'       177.54           73.00          74.54          30.00
-------------------------------------------------------------------------------------------------------------
                    Houston                   20'        96.84           40.00          40.84          16.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'       193.69           80.00          81.69          32.00
-------------------------------------------------------------------------------------------------------------
                   Kansas City                20'   =    68.00           34.00          34.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   107.00           53.50          53.50
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   107.00           53.50          53.50
-------------------------------------------------------------------------------------------------------------
                   Lathrop                    20'       340.82          170.63         170.19
-------------------------------------------------------------------------------------------------------------
                                           40/45'       472.23          236.42         235.81
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                   Los Angeles                20'       308.04          154.23         153.81
-------------------------------------------------------------------------------------------------------------
                                           40/45'       410.73          205.64         205.09
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   400.00          200.00         200.00
-------------------------------------------------------------------------------------------------------------
                    Memphis                   20'   =    80.00           40.00          40.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'        94.82           39.00          39.82          16.00
-------------------------------------------------------------------------------------------------------------
                    Memphis (X)               20'   =    70.00           35.00          35.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =   108.00           54.00          54.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   108.00           54.00          54.00
-------------------------------------------------------------------------------------------------------------
                    New Orleans               20'       129.12           53.00          54.12          22.00
-------------------------------------------------------------------------------------------------------------
                                           40/53'       258.24          106.00         108.24          44.00
-------------------------------------------------------------------------------------------------------------
</TABLE>



                                                                      8

<PAGE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                EMPTY RATES
-------------------------------------------------------------------------------------------------------------
                                    Contract Reference  FIXED AND ADJUSTED RATE COMPONENTS
-------------------------------------------------------------------------------------------------------------
                                                        Sec. 16. B                 Sec. 10.A
-------------------------------------------------------------------------------------------------------------
      ORIGIN            DESTINATION        SIZE       TOTAL     FIXED PORTION     ADJUSTED       CAR COST
                                                      RATE                         PORTION
-------------------------------------------------------------------------------------------------------------
<S>                 <C>                   <C>         <C>       <C>               <C>            <C>
St. Louis           Oakland                   20'       340.82          170.63         170.19
-------------------------------------------------------------------------------------------------------------
                                          40/45''       472.23          236.42         235.81
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Phoenix                   20'       195.70           80.50          82.20          33.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'       391.40          161.00         164.40          66.00
-------------------------------------------------------------------------------------------------------------
                    Portland                  20'       315.14          157.78         157.36
-------------------------------------------------------------------------------------------------------------
                                           40/45'       366.47          183.48         182.99
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
                    Seattle                   20'       315.14          157.78         157.36
-------------------------------------------------------------------------------------------------------------
                                           40/45'       366.47          183.48         182.99
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =   300.00          150.00         150.00
-------------------------------------------------------------------------------------------------------------
St. Louis (X)       St. Louis                 20'   =    38.00           19.00          19.00
-------------------------------------------------------------------------------------------------------------
                                           40/45'   =    38.00           19.00          19.00
-------------------------------------------------------------------------------------------------------------
                                           48/53'   =    38.00           19.00          19.00
-------------------------------------------------------------------------------------------------------------

</TABLE>
=     Where reference is made hereto rates are not subject to the provisions of
      Section 15, Cost adjustment until August 1, 1999.

x     Denotes proportionate rate. Rate applies only on traffic interchanged to
      or from a connecting rail carrier.

Note: Chicago (Canal St.) - At no time will Canal St. rates be less than the
      current effective Global 1 rate. Should cost adjustments produce a lower
      Canal St. rate APL will pay the current Global 1 rate.

                                       9

<PAGE>

                                                                       EXHIBIT D

                          APL Volume Commitment in the
                 Lanes Identified in Section A.1 of Appendix 7.

          Section A.1 of Appendix 7 identifies lanes where UP has a service
commitment and APL has a volume commitment as specified in Section A of Appendix
8. Listed below are the specific origin and destination states covered by each
lane in this Agreement. APL may not use another gateway as a means to avoid the
commitment between the points listed below. Also, if by mutual agreement, the
interchange point for the contracted business outlined below changes, then the
commitment will apply to the new service lane.

1.   Lanes 1 through 6

          Between the states of California, Washington and Oregon and:

                           Connecticut               New Hampshire
                           Delaware                  New Jersey
                           District of Columbia      New York
                           Illinois                  Ohio
                           Indiana                   Pennsylvania
                           Iowa                      Rhode Island
                           Kentucky                  Vermont
                           Maine                     Virginia
                           Maryland                  West Virginia
                           Massachusetts             Wisconsin
                           Michigan

2.   Lanes 7 and 8

          Between Mexico and all states north and east of a line consisting and
including of the following states:

                           Iowa
                           Kentucky
                           Minnesota
                           Missouri
                           Virginia

                                 Ex. D - Page 1

<PAGE>

3.   Lanes 9 through 14

          Between Southern California and the following states:

                           Alabama                   North Carolina
                           Arkansas                  South Carolina
                           Florida                   Tennessee
                           Georgia                   Texas
                           Louisiana                 Virginia
                           Mississippi

                                 Ex. D - Page 2

<PAGE>

                                                                       EXHIBIT F
                                                                       ---------

                                  TPI ACCOUNTS

1.   Authorized TPI Customers which APL may ship on the Union Pacific under the
terms outlined in Appendix 12.C. of this Agreement:

     A.   ANZDL
     B.   Atlantic Container Line
     C.   Canada Maritime
     D.   Cho Yang (PNW Only)
     E.   Columbus Lines
     F.   Hapag Lloyd
     G.   Farrell Lines
     H.   Matson
     I.   P&O
     J.   TMM
     K.   Westwood

          All others will be handled on a shorter term SCQ basis.

2.   TPI Customers where Union Pacific has granted APL the temporary right to
ship as TPI accounts on specific short term SCQ Rates. These may change or be
deleted from the list as the SCQ's expire.

     A.   Med Shipping
     B.   Yang Ming
     C.   Bermuda
     D.   Chilean Line
     E.   HLX
     F.   Ivaran
     G.   Fleet Shipping
     H.   Zim

                                    Exhibit F

<PAGE>

                                                                       EXHIBIT G

                FREE TIME AND STORAGE PROVISIONS AT UP TERMINALS

1.       GLOBAL 1

         A.   Except for Equipment stored on the land described in Section 12.A.
of this Agreement, APL shall remove loaded or empty Equipment from UP's terminal
within the free time described in paragraph B. below. If APL fails to do so, APL
shall pay to UP an Equipment storage charge of $14.00 per day for each loaded or
empty container. When at the request of APL, empty containers are stored on
Flatcars, APL shall pay a daily charge of $21.00 per day after expiration of
free time.

         B.   Free time shall commence at 0001 hours on the day following UP's
notification to APL of the Equipment's availability and shall expire 48 hours
later, at 2400 hours on the second day, Saturdays, Sundays, and holidays
excluded.

         C.   Storage charges shall not apply after Equipment is loaded to
railcars for transportation by UP and shall not apply to any outbound Equipment
after APL has given a notice of disposition to load the Equipment to a railcar.

2.       TERMINALS NAMED IN SECTION 1 OF ATTACHMENT TO THIS EXHIBIT

         A.   For terminals named in Section 1 of Attachment to this Exhibit APL
shall remove Equipment from the destination terminal of UP by 11:59 p.m. local
time on the day following notice of Arrival and Availability given to APL,
Saturdays, Sundays, and holidays excluded. If APL fails to remove Equipment, it
shall pay UP an equipment storage charge of $20.00 per unit of Equipment per
calendar day or fraction thereof for each of the first 5 days, and $39.00 per
unit of Equipment per day or fraction thereof thereafter. No equipment storage
charge will be assessed on the number of empty chassis UP and APL deems
necessary for day to day operations. APL shall make such payment to UP within
the payment period set forth in this agreement

3.       TERMINALS NAMED IN SECTION 2 OF ATTACHMENT TO THIS EXHIBIT

         A.   For terminals named in Section 2 of Attachment to this Exhibit
during years of 1998, 1999 and 2000, three (3) calendar days free time will be
allowed for loaded international containers held on UP premises. Effective Jan.
1, 2001, two (2) days free time will be allowed. Saturdays, Sundays, and
holidays as defined in UP's intermodal rules circular will be also be considered
as free days. Railroad holidays cannot be added to the end of the free time
period.

         B.   Empty containers held on UP premises at terminals named in
Attachment 2 of this Exhibit will be allowed two (2) calendar days free time,
plus Saturdays, Sundays, plus any railroad holidays defined above. Railroad
holidays can not be added to the end of the free time period.

                                 Ex. G - Page 1

<PAGE>

         C.   Free time will begin at the first 12:01 am following notification
of availability given to APL. After expiration of free time, charges will be
assessed for each unit of Equipment at the applicable rates below for each day
or fraction of a day including Saturdays, Sundays, and holidays:

              For each of the first ten (10) days:    $13.00
              For each day thereafter:                $28.00

                                 Ex. G - Page 2

<PAGE>

                                    EXHIBIT G

                                   ATTACHMENT

Section 1.

         Provisions of Section 2 of EXHIBIT G apply at the following terminals:

              North Little Rock, AR              Council Bluffs, IA (Omaha, NE)
              Lathrop, CA                        Las Vegas, NV
              Los Angeles, CA                    Reno, NV
              Oakland West, CA                   Portland, OR
              Denver, CO                         Dallas, TX
              Nampa, ID                          Houston, TX
              ChicanUP, IL(Canal Street)         Laredo, TX
              Dupo, IL                           San Antonio, TX
              Global 2, IL                       Salt Lake City, UT
              Yard Center, IL                    Seattle, WA
              Armordale, KS                      Green River, WY
              Kansas City, MO

Section 2.

         Provisions of Section 3 of EXHIBIT G apply at the following terminals:

              Marion, AR
              Phoenix, AZ
              City of Industry, CA
              Fresno, CA
              ICTF, CA
              LATC, CA
              Oakland, CA
              Chicago, IMX, IL
              New Orleans, LA
              Sparks, NV
              Brooklyn, OR
              Barbours Cut, TX
              El Paso, TX
              Englewood, TX
              Miller, TX
              San Antonio, TOFC, TX

                                 Ex. G - Page 3

<PAGE>

                                                                       EXHIBIT C

                                  KEARNY TRAINS

            The following or their successors are the Kearny Trains:

                                     ZGNAP5

                                     IGNAPB

                                     IGNAP

                                   Exhibit C

<PAGE>

                                                                       EXHIBIT Y

                              AVERAGE DAILY TENDER

A.       Average DDT Baseline:

                  The following Average DDT adjustments are in place as of
February 1, 1997 and will be considered the Baseline for all cumulative
adjustments to Average DDT:

         Eastbound:                             Westbound:
         ---------                              ----------

         SCA to CHI:          - 1.964%          CHI to SCA/SLC:      + 2.798%
         NCA to CHI:          - 1.964%          CHI to NCA:          - 1.608%
         NCA to MEM/MEM(X):   - 1.250%          MEM/MEM(X) to NCA:   - 1.250%
         PNW to CHI:          - 1.309%          CHI to PNW:          - 2.263%
         PNW to MEM/MEM(X):   + 1.250%          MEM/MEM(X) to NCA:   - 2.500%

B.       Average DDT Adjustment Scale:

                  The following Scale will be used to determine the percentage
increase or decrease to Domestic rates based upon the change in the Average DDT:

         Change in Average DDT                   % Increase or Decrease in Rates
         ---------------------                   -------------------------------

                - 10                                        + 1.25%
                - 20                                        + 2.50%
                - 30                                        + 3.75%
                - 40                                        + 5.00%
                - 50                                        + 6.25%
           - More than 50                       + 1.25% for each increment of 10

                + 10                                        - 1.25%
                + 20                                        - 2.50%
                + 30                                        - 3.75%
                + 40                                        - 5.00%
                + 50                                        - 6.25%
           + More than 50                       - 1.25% for each increment of 10

C.       Threshold Rates:

                  The parties will determine the upper and lower limits using
the methodology established in previous agreements.

                                    Exhibit Y

<PAGE>

                                                                       EXHIBIT Z

                    UP INTERMODAL RULES NOT APPLICABLE TO APL

The following UP Intermodal Rules found in UPRR Exempt Rules Circular 20-B or
successive revisions thereof will be considered exempt from application to APL
for shipments made under provisions of this Agreement:

         ITEM         SUBJECT
         ----         -------

         1.03         Rate Increase
         12           Alternate Routing
         27           Alternative Routing via UP, MP and CNW
         35           Application of Rates and Services
         40           Transportation Obligation
         45           Combination Rates
         55           Pick-Up and Delivery Service
         60           Loading and Unloading of Trailers in Plans II and II 1/4
         65           Loading and Unloading of Trailers in Plan II 1/2 and III
                      Service
         75           Failure to Make Delivery
         80           Free Time for Detention
         82           Free Time Allow and/"Document Delay" Charges
         83           Intermodal Shipments for Export to Mexico via Brownsville
                      or Laredo Ramps
         84           Broker Payment of Detention and Storage Charges for Export
                      Shipments to Mexico via Brownsville or Laredo Ramps
         85           Responsibility for Detention Charges Unless Otherwise
                      Specifically Agreed to by an Office of the UP
         90           Detention Charges
         95           Detention of Tractor or Employee of Carrier
         100          Diversion or Reconsignment
         120          Shipments Loaded on Elevated Truck Pallets or Platforms or
                      Lift Truck Skids
         125          Prior or Subsequent Movement by Motor Carrier
         128          EMP Equipment Charges
         130          Trailer Use Rules
         135          Equipment Ordered, Accepted or Furnished and Not Used
         140          Loaded Shipment Returned to Consignor at Origin
         165          Storage of Vehicles
         166          Container Free Time and Storage [NOTE - this Item does
                      apply to Participant, TPI]
         168          Payment of Destination Storage Charges
         170          Excess Dimensions
         180          Vehicle Specifications
         190          Mechanical Protective Service
         200          Payment of Charges
         210          Suit to Collect Charges

                                 Ex. Z - Page 1

<PAGE>

         262          Liability For Loss or Damage of Vehicle
         285          Application of Increases in Rates & Charges
         290          Mixed Commodities - FAK
         295          Pick up or delivery, Container Yard
         300          Empty Movement of Trailers or Containers Furnished by
                      Shippers
         501          Repositioning of Shippers Equipment
         502          (Continued)
         503          Shipments Consolidated By Ocean Carrier at Overseas
                      Origins
         600          Return of Used Pallets, Platforms or Skids
         601          Provisions Governing Return Movement of Pallets for Plan
                      2.5 Shipments
         705          Storage of Vehicles on Railroad Premises
         710          Storage of Privately Owned or Leased Chassis
         720          Rules Covering Vehicle Interchanges
         730          Charges - Vehicles Exceeding 45' but not exceeding 48'
         735          Charges - Vehicles Exceeding 48' but not exceeding 53'
         760          Required Documentation for Intermodal Shipments
         765          Transportation Agreement
         770          Required Documentation for International Shipments
         785          Specimen Intermodal Agreement
         795          Rates/Equipment Size
         800          Operating Procedures for Los Angeles and Long Beach

                                 Ex. Z - Page 2