High Road Consulting P: 219.838.3800
  • Home
  • About
  • Services
    • Strategic Consulting
    • Transportation Management
    • Litigation Support
    • Economic/Industrial Development
  • INSIGHT: RailEdition©
  • Taking Highroad
  • Contact
Select Page

Highroad and ALK Technologies Announces the Next-Generation INSIGHT: RailEdition© Offering Users Direct Access to Railroad Cost Data

by hroad | Mar 11, 2022 | Uncategorized

Highroad Consulting, Ltd. of Highland, IN has released its next-generation INSIGHT: RailEdition©, a cost model that gives users an accurate assessment of railroad operating costs. Users will have direct access through a website. INSIGHT: RailEdition© is recognized as...

Can Do Strategies to Gain Control of Your Supply Chain Costs!

by Sandra Dearden | Dec 13, 2021 | Uncategorized

Okay, already, supply chain interruptions are daily news items, and transportation costs are increasing at a dramatic rate (sometimes mid-shipment).  Now that we know that, what can consumers of transportation service do about it?  You are the Number One expert...
  • Facebook
  • Twitter
  • Google
  • RSS

Designed by Elegant Themes | Powered by WordPress

Donald J. McKay

Donald McKay has had an extensive career in finance and accounting.  During his thirty-year career, he has earned a reputation for his ability to improve the efficiency of operations, to solve problems, and to interact with customers and vendors.  Industries that he has worked in include manufacturing, distribution, equipment dealerships, construction, and video surveillance.  Examples of titles he has held include Controller, IT Manager, Cost Accountant, Business Manager, Credit Manager, Accounting Process Manager, Corporate Officer and business owner.

 

Don joined the Highroad leadership team in 2010; he is responsible for all financial activities of the firm, including the firm’s finances, oversight of freight bill payment for two clients, fleet studies and optimization, buy/lease analysis, in addition to consulting on other projects that require his expertise.  He also performs as Highroad’s quarterback for management of day-to-day operations.

 

Some recent examples of his accomplishments include:

 

  • Don served as Project Manager for a food products company, working with the serving carrier to develop a service plan to mitigate plant shutdowns.
  • Directed the re-calculation of demurrage charges, reducing the charges by 67%.
  • Challenged a $10,000 invoice for switching empty cars from a rail yard to industry on the basis the move qualified for inclusion in calculation of mileage equalization. The invoice was cancelled.
  • Performed a financial analysis of two proposed sites for a new transload operation for strategic site selection. The analysis included forecasted rail rates based on benchmarking, forecasted transit times and related car leasing costs, the cost of land acquisition, rail accessorial charges, and other charges including a surcharge for the commodity on Port property at one location.
  • Directed a fleet optimization study to determine the number of cars required for current operations and additional cars required to enter a new market that was to be served from two origin plants.
  • Led annual rate negotiations for all of a client’s rail lanes. Reductions were secured in some lanes which lowered the weighted average rate increase to 1%.

 

Donald J. McKay attended Loyola University; he earned a Bachelor of Science in Accounting, with a minor in Finance and Psychology, at Elmhurst University.

Sandra Dearden

President & CEO

Sandra Dearden is founding President of Highroad Consulting, Ltd., a transportation and logistics consulting firm with expertise covering all modes of surface transportation.

Highroad’s business plan for the new company organized in 1996, was to provide the consulting expertise of highly qualified consultants; all of Highroad’s consultants have senior management or middle/line management experience in their respective functional areas and modes of transportation.

Under Dearden’s direction, Highroad has developed a number of Blue Ocean analytical processes and software including VIEWPOINT™ (benchmarking studies); TREE™, an acronym for Transportation Rates & Efficiency Evaluation; and REIDI™ (Regional Economic & Industrial Development Initiative) to name a few. Highroad has earned a reputation as an industry leader. We attribute Highroad’s success to our focus on innovation and quality.

One of the keys to Highroad’s success is INSIGHT: Rail-Edition©, a copyrighted cost model first released in 1998. Developed by Highroad staff under Dearden’s direction, it is the only rail costing model in the country that is not based on a generalized costing system used by the United States Surface Transportation Board for formal proceedings.

While the URCS model is still used by the STB, Congress has deemed that model to be fatally flawed since it has not been updated since it was released in 1989, and some of the special studies behind the model were performed in the 1950’s. INSIGHT: RailEdition© is based on contemporary railroad operations and financial data filed by railroads in required annual reports to government agencies.

On May 19, 2018, Highroad rolled out its new cloud-based version of INSIGHT: RailEdition©, giving subscribers direct access to the cost data.

Sandra has participated in numerous proceedings before the Surface Transportation Board and in civil courts. A few examples include:

  • STB Ex Parte 661. In 2003, Highroad released a white paper with cost evidence that revealed the railroads were over-recovering with their fuel surcharge programs. The white paper was the topic of a feature article in Traffic World magazine. In May 2006, the Surface Transportation Board responded to shipper complaints and conducted a hearing on the fuel surcharges. Highroad prepared cost evidence for four shippers that filed statements into the proceeding, and Dearden filed testimony with cost evidence that revealed the surcharges were 4 – 5 times higher than the total cost of fuel in the lanes analyzed.In its decision, the STB ruled fuel surcharges based on a percentage of rates constituted an unreasonable practice and ordered the railroads to change their fuel surcharge programs on regulated traffic to reflect actual fuel cost increases. In October, 2008, Crain’s Chicago Business ran a feature story about Ms. Dearden and her work on railroad fuel surcharges.
  • Sandra led a team of five Highroad consultants who prepared and submitted rebuttal testimony for the shipper, Wisconsin Power & Light, in a stand-alone rate case against the Union Pacific Railroad. The STB found that the defendant railroad had market dominance and that the challenged rates were too high. Maximum reasonable rates were prescribed and reparations were ordered. See Finance Docket 42051, Wisconsin Power and Light Company, Complainant, v. Union Pacific Railroad, Defendant. The decision was upheld in the Court of Appeals.
  • Ms. Dearden also presented testimony and directed a consulting team that developed cost evidence for Marquette Rail, STB Finance Docket NO. 35063, Michigan Central Railway, LLC – Acquisition and Operation Exemption – Lines of Norfolk Southern. Norfolk Southern (NS) wanted to discontinue service to shippers in Michigan and transfer its common carrier responsibility to a Watco short line railroad. Under the new operation, our client, Marquette Rail, would be required to pay a trackage rights fee to NS, to operate over a line to NS’ yard in Elkhart, IN. Counsel asked Highroad, using Dearden’s experience negotiating haulage and trackage rights agreements, to submit testimony that addressed the unreasonable trackage rights fee proposed by NS.The Surface Transportation Board denied Norfolk Southern’s application. NS subsequently re-filed and they lowered the proposed trackage rights fee to an acceptable level. NS’ second application was approved by the STB.
  • STB Finance Docket No. AB-279 (Sub. No. 3), Canadian National Railway Company Adverse Discontinuance, Line of Montreal, Maine & Atlantic Railway Ltd. in Aroostook County, Maine. Ms. Dearden submitted testimony and coordinated development of testimony for three other Highroad expert witnesses who submitted rebuttal testimony on behalf of Canadian National Railroad, protesting the application of the Trustee for the Bangor & Aroostook Railroad for the adverse discontinuance of CNR trackage rights and haulage rights, and adverse abandonment of Waterloo Railroad’s freight easement on the MMA. HIGHROAD consultants’ testimony focused on the market plan, and the projected cost impact on rail operations as presented by the Trustee. The STB ruled in favor of Canadian National.
  • Sandra Dearden submitted 55 pages of testimony in STB Ex Parte 711, Reciprocal Switching, regarding National Industrial Transportation League’s request for a rulemaking proceeding to revise the rules for captive shippers to achieve competitive access to a second carrier through reciprocal switching.The STB opened a rulemaking proceeding, which was a major win for the shipping community. Dearden submitted comments in STB Ex Parte 711 (Sub-No. 1), addressing the proposed rules. That decision is pending.
  • Ms. Dearden presented expert testimony in STB Docket Ex Parte 431 and Docket Ex Parte (Sub-No. 4), Review of the General Purpose Costing System, commenting on the STB’s proposal to modify certain inputs into Phase II of the Uniform Rail Costing System (URCS), and to modify certain cost calculations in Phase II of URCS in order to eliminate the make-whole adjustment.The Board also proposed certain other related changes to URCS, including proposals for locomotive unit-miles and train miles allocations, that would result in more appropriate rail movement costs. That decision is pending.
  • Ms. Dearden prepared testimony for a client in STB Docket Ex Parte 704 and STB Docket Ex Parte 704 (Sub-No. 1), Review of Commodity, Boxcar, and TOFC/COFC Exemptions, requesting termination of the exemption on crushed stone. The decision is pending.

Sandra Dearden worked for three class one railroads over a twenty-seven year career in the rail industry, the Illinois Central Railroad, Chicago and Northwestern Transportation Company, and the Union Pacific Railroad. From her modest beginning as a mail clerk she was steadily promoted through the ranks to the general manager of a strategic business unit at Chicago and Northwestern railroad, and she became the first female marketing officer of a Class 1 railroad in North America.

Sandra was instrumental in the development of the unit train distribution system for Canadian potash to U.S. markets. She conceived and implemented North Western’s truck competitive fertilizer marketing program, which received recognition when North Western was awarded a Golden Freight Car Award for distinguished marketing by Modern Railroads Magazine.

During her tenure at North Western, business unit revenues increased in the double digits each year, and by 69% during the last five years in an otherwise declining market. Annual profits increased by $15 million during the same time period due to business growth and productivity changes, including improved covered hopper utilization, which was the result of a new customer service program, and allocation of equipment based on contribution per car day.

Also while at North Western, Ms. Dearden directed a legislative campaign against a U. S. Department of Commerce preliminary decision relative to the dumping of Canadian potash into the United States.

Working with Governmental Affairs personnel, she developed a seven-page fact sheet showing the economic impact on farmers in C&NW’s service territory, and she responded to inquiries from congressional and senatorial aids to representatives on key committees.
She also responded to requests from representatives of states outside North Western’s service territory, calculating the economic impact on farmers in those states. As a result, a compromise agreement was reached to the satisfaction of all parties. Subsequently, Ms. Dearden was invited to be a seminar leader at a NAFTA seminar in Toronto, ON where the dumping decision was presented as a case study.
Sandra served on a Quality Team of senior management personnel that conceived the Contribution Based Management System that was adopted by C&NW. By focusing all departments and employees on contribution growth, all departments shared common goals and objectives and profits increased from inter-departmental initiatives. For example, Sandra approached Operations about a unit train move from Saskatchewan that was moving via a circuitous route on North Western from the Duluth, MN to Waterloo, IA. C&NW negotiated a haulage agreement with a short line railroad, Iowa Northern Railroad, to handle the trains from Mason City via a direct route to Waterloo. This was a win/win for all concerned: (1) the short line railroad secured new unit train business; (2) the shipper benefited by reduced transit times; (3) the new route increased productivity of the cars and locomotives by four days; (4) Chicago & North Western’s profit on the unit train move increased.

Sandra has directed numerous cross-functional projects and she has the experience needed to consult on a number of subjects and projects. During her career, she has held profit and loss responsibility for the marketing of rail transportation service for the following commodities: Construction Materials, Minerals and Non-Metallic Minerals, Metals and Machinery, Chemicals, Grain, Food and Consumer Products.

Ms. Dearden is respected as a seminar speaker. Topics include:

  • “Development of an Ag Terminal”, Roots to Riches Conference, Madisonville, KY.
  • “Emergency Planning for Supply Chain Disruptions”, Ohio Conference on Freight, Columbus, OH.
  • “How to Control Future Costs with Integrated Logistics”. Presentations to: Manufacturers Alliance for Productivity and Innovation, Miami, FL; and Roquette University, Geneva, IL.
  • “Balancing the Capacity Needs of Freight & Passenger Rail”. Northwestern University School of Law.
  • “How to Integrate Transportation into Strategic Site Selection”. Three workshops for more than 2,100 participants at the International Ethanol Conference, St. Louis, MO.
  • Integrating Activity Based Costing into Distribution Planning and Market Based Pricing, Masters Program, Illinois Institute of Technology.
  • Logistics Tools, Midwest Advisory Board.
  • Impact of Department of Commerce Surcharges on Canadian Potash on the U.S. Farm Economy, NAFTA Seminar, Toronto, ON.
  • White Paper, Rail Fuel Surcharge Impact Study, 2003.
  • Rail Fuel Surcharges – Rail Fuel Impact Study; Association of Transportation Law Professionals and NITL Rail Committee.
  • “Broken Promises”, analysis of industry capacity for boxcar shipments, Brick Industry News magazine.
  • Webinar: Myths & Mythdemeanors”, National Industrial Transportation League.
  • Webinar: “Fuel Surcharge Countdown! A Three-Step Approach to Mitigate Potential Rate Increases. National Industrial Transportation League.

Sandra Dearden serves on the Board of Directors for the National Industrial Traffic League, and she is a member of the North American Rail Shippers Association.

She served as a member of the Intermodal Advisory Board, Chicago Area Transportation Study (CATS) and the predecessor agency and committee, Chicago Metropolitan Agency for Planning (CMAP) Freight Committee. As a representative of CATS, Ms. Dearden participated in the RTP 2030 Initiative to develop a Regional Transportation Plan for northeastern Illinois; she authored the freight component of the 2030 Plan which has been adopted without change.

Michael Romanow

Consultant

Michael Romanow is a transportation professional with multi-modal experience in air, truck and rail transportation.

Mike started his transportation career at Highroad, where he quickly developed into a key team member he worked with others on the management team to develop project plans and to staff consulting projects. His most recent position was Director Strategic Operations.

Mike produced data and performed analysis for numerous consulting assignments, including economic analysis for testimony before the U.S. Surface Transportation Board. He also monitored the progress of projects, and he confirmed the accuracy of work. He also had oversight over the production of benchmarking studies and special studies.

Mike performed as Project Manager directing a mode conversion study for a major manufacturer from development of the project plan that involved design of a logistics network to access customers in 16 destination markets, through the RFP process Some examples of his accomplishments include:

  • He performed a fuel surcharge analyses and developed cost evidence for testimony presented in a United States Surface Transportation Board proceeding, STB Ex Parte 661 (Sub. No. 2), Rail Fuel Surcharges (Safe Harbor).
  • Mike performed cost analyses of unit train operations for numerous client projects. This included development of shipment specific operating/cost parameters.
  • Using Highroad’s analytical model, VIEWPOINT™, Mike produced and organized STB Waybill File data into a usable format for numerous benchmarking studies. Participated in benchmarking projects that generated annual savings of $8.9 million, and identified recoverable overcharges totaling more than $836,000.
  • Performed a market analysis by commodity and mode for a client that entered a new market.
  • Developed project protocol and analyzed a proposal from a rail carrier to transition charges for a lease track from an annual fee to a daily charge per car. This required entry of information from various sources, including historical car movement records and date and time of client notifications to order and release cars.

In 2015, Mike was recruited by Kemira Oyj (Kemira Water Solutions, Inc., Kemira Chemicals, et al.) With Kemira’s approval, Mike consults occasionally on Highroad projects.

In his role at Kemira as Rail Logistics Specialist, North America, Mike has day-to-day fleet management responsibility for more than 100 rail cars in specialty chemical service including lease negotiations, railcar sourcing, billing, and shipment issue resolution. He also manages maintenance for a fleet of more than 1100 cars in acid service. He recently completed an analysis of service life for service equipment and rubber linings on the 1100+ railcar fleet plus analysis of month-to-month maintenance costs and coordination of car shopping and deferment of maintenance.

Mike’s transportation career actually started with a flight operations internship at Aircell LLC. In that role he monitored on-board equipment and he developed a training manual for automated systems flight testing.

Michael Romanow earned a B.S. Air Transportation Management, from Lewis University, Romeoville, IL.

Keith Corman

Industrial Development Representative, Senior Consultant

Keith Corman joined Highroad in February 2015 as Industrial Development Representative. He promotes Highroad’s industrial development/economic development REIDI™ model within a five state region, he is part of a Highroad sales and marketing team that represents a short line railroad in Indiana, and he consults on projects that require his expertise.

Prior to joining the Highroad team, Keith served as Regional Liaison to Ohio Secretary of State Jon Husted, representing ten counties (out of Ohio’s 88 counties) in Southwest Ohio. During Keith’s tenure in public office, he was instrumental in seeking alternative means of generating revenue for his community without increasing the existing tax burden. In doing so, Mr. Corman found the best formula is to create economic development zones that would not only generate additional revenue for the community, but provide opportunities for a diversity of jobs.

Under his leadership, Colerain Township established their first industrial development zone with access to I-275, providing interstate access to locations in the Greater Cincinnati area, Indianapolis and points West (I-74), Interstates 75 and 71 for key cities North, East and South. Additional improvements were made to Colerain’s main transportation artery, Colerain Avenue (U.S. 27), creating a desirable retail friendly environment, resulting in new businesses locating in Colerain.

Mr. Corman, along with the Colerain Township economic development director, worked diligently procuring investors to develop “Stone Creek”, a $70,000,000.00 modern shopping plaza at the intersection of I-275 and U.S. 27 (Colerain Avenue). Prior to the building of “Stone Creek”, the area was mostly undeveloped, with a small residential area and older small retail establishments. As a result of careful research, planning and creative use of Tax Increment Financing, “Stone Creek” has grown to be one of the strongest growth and job providers in the area, withstanding the hardships set forth by the “Great Recession” in other communities.

Keith observed neighborhoods in Colerain Township that were prone to annual flooding problems. Homes had been built in the flood plain of a tributary to Mill Creek. Under Ohio law, at the time, townships had no jurisdiction to address the matter. Mr. Corman, working with the township’s new economic director, launched a project to identify avenues to address the flooding issues and to aid the people affected. As a result, Colerain Township was inducted into FEMA’s new “Project Impact” hazard mitigation program (First Township in United States), opening the way to Federal grants to buyout the effected properties, assist in relocation and reclaim the lands to their original state, additionally relieving the impact of annual flood water runoff.

As a result of the success overcoming residential flood problems as a “Project Impact” community, Mr. Corman chaired the township committee to address establishing mitigation plans for future problems concerning natural disasters in the community, such as additional flooding areas along the Great Miami River, tornadoes, earthquakes and civil unrest (terrorism). Upon completion and submission, Colerain’s Natural Disaster Mitigation Plan was the second community in U.S. to be approved by F.E.M.A.

Keith has consulted on numerous industrial/economic development projects for Highroad. His work centered on conducting field interviews to confirm industries interested in service through multi-modal terminals, in addition to developing infrastructure requirements. Keith has also served as the Boots on the Ground sales representative for the Hoosier Southern Railroad, where he has established relationships with HOS customers and county economic development representatives. Keith has been proactive and has worked with the Marketing Associate to identify opportunities and strategies to attract additional customers to the line.

One of our goals at the onset of this assignment, was to raise awareness so people know that Hoosier Southern exists. Keith has conducted numerous meetings with state officials and state representatives, to introduce HOS, and the railroad’s unique market position with river access.

Keith, and his wife Martha, live in Cincinnati.