high-road-consulting-limited

Mixed Feelings

Fri, 31 Oct 2025 17:32:32 GMT

Impressions of a Transcontinental Rail Merger

The proposed merger of Union Pacific and Norfolk Southern is the most earth-shaking news to hit our industry since President Carter signed the Staggers Rail Act, and discussions have escalated all the way up to the White House. If I were charged with stating a common theme among shippers, I would simply say, shippers have mixed feelings about the merger. There does appear to be some operational benefits as intermodal operations between UP and the eastern carriers will be more efficient, and trucks used for the “rubber-tire interchange” will no longer be needed, thereby relieving congestion on Chicago area streets, I-80 and I-294. However, BNSF and CSX recently announced coast-to-coast intermodal service, proving they did not need a merger to accomplish what can be done with inter-carrier marketing/service agreements. The obvious question is, why didn’t they do this before? It seems in this case, that the proposed merger has already increased competition.

An obvious concern is the potential impact on rail-to-rail competition. For example, will industries lose the current benefit of CSX and NS dual service to industries in the shared asset area in the northeastern U.S., which was created during the Conrail split to preserve competition? Some are concerned about the prominent level of market power to be acquired by the new combination, and the perception that the primary objective is to increase shareholder value at the expense of UP customers. If so, and if increased rates are part of the railroad’s growth objectives, then history has proved other railroads will follow UP’s lead by increasing rates and, subsequently, truck rates will also increase, resulting in higher transportation costs via all modes, and US manufacturers’ ability to compete globally.

Operationally? To be determined – this railroad will control at least 45% of all rail traffic in the United States. Therefore, it is safe to assume that any service failure or service disruption on a railroad of this size, will impact on the entire rail industry as there will be congestion in yards at interchange, cars and scheduled trains will be delayed, and locomotives and crews will be out of position. Think back to the service meltdown following UP’s takeover of Southern Pacific.

I have discussed some of these concerns with Union Pacific employees who are very enthused about the merger, and they told me it is UP’s goal to do it right this time! UP plans to file its merger application with the Surface Transportation Board in December. I do have a great deal of faith in Jim Vena and others on UP’s leadership team, so I am advising shippers to assume a wait and see position until we have the ability to review the UP/NS application, and to analyze the potential impact on their company’s supply chains. Be prepared, though, to wade through a 4,000-page application.

Call us if your company needs a competitive impact analysis. As a member of Chicago & Northwestern’s M&A team, I personally analyzed numerous potential and proposed mergers and acquisitions, and I founded Highroad after performing the competitive impact analysis of the UP/SP merger for Dr. Curtis Grimm’s testimony. Some may question whether it is worth the time and trouble, thinking this may simply be a runaway train that cannot be stopped. However, this merger will have a major impact on the transportation landscape that will have a legacy effect on future generations. So, yes, it is worth taking time to analyze the impact and to identify potential solutions that you can use to negotiate conditions needed to protect your company’s interests. Call Highroad Consulting Ltd. 219-838-3800.

By Sandra Dearden, President, Highroad Consulting, Ltd.

Be A Game-Changer

Wed, 07 May 2025 18:51:56 GMT

Wresting Control of Your Rail Spend!

Who’s actually in control of your rail costs? If you believe the railroads are in control, you are not alone and while it defies logic, this is a common complaint among rail shippers who face the take-it-or-leave-it attitude of the carriers.

Common sense tells us that the person who should be most qualified to lead and direct negotiations is you, the shipper. After all, you know your business and the markets you serve better than any outsider, especially considering the recent high degree of reorganization and turnover of railroad sales and marketing personnel.

While there are a few exceptions, it’s no secret that the railroad industry is experiencing a knowledge gap. As an example, on 100% of our benchmarking projects over a six year-period, we found clients have paid railroad overcharges ranging from $236,000 to $2.6 million in a single year, due to railroads charging contract rates higher than public tariff rates. Based on conversations with several railroad marketers, we believe these were not intentional. Instead, the errors are simply a symptom of a general lack of knowledge and proper training.

At Highroad, we help our clients to wrest control of their rail costs. The objective is to design strategies so you can work collaboratively with your rail carriers and earn their respect while presenting your company’s needs based on fact-based strategies.

Some shippers make the mistake of simply targeting a set increase level, and if they achieve, for example, the 4% or 10% targeted, they consider it a win. However, by accepting general increases, some rates will not be market competitive, and you can risk losing some customers within your traffic mix.

So, how do you start? How do you gain control? By playing smarter and knowing your competition. At Highroad, we have developed an analytical model, VIEWPOINT™ to identify and analyze rates paid by your direct competitors to access specific customers and markets. When contracting a benchmarking study, avoid those firms that simply perform regression analyses of records of shipments in your company’s lanes, with the objective to establish your targets based on average rates. Afterall, who wants to be average? While some rates may be higher, rates paid by some shippers in those same lanes are below average. You want to know what your competitors are paying.

It's likely you will confirm your company already has a good competitive position in some lanes, while at the same time, you will develop the evidence needed to sell your carriers when rates require adjustment in other lanes. Also, during the course of the analysis, leverage points are identified so you will approach negotiations from a position of power.

Finally, the goals of your negotiating strategy should only focus on those rates that require adjustment, while mitigating rate increases in other lanes to the full extent possible. You will earn carrier respect, and your requests will be viewed as credible if you focus on your real needs. Adopting this fact-based approach, versus asking for rate reductions in each and every lane, ensures your probability of success.

Knowing your needs in advance of negotiations is essential to gaining control, so you can keep your total landed rail costs in check, and the cost benefit of a fact-based strategy always exceeds the cost of a professional benchmarking analysis.

Call (219) 838-3800 by June 13th, 2025, for a FREE one (1) hour consultation.

Click here to learn more about what Highroad Consulting has to offer.

Rail vs. Truck: Why Rail is the Smarter, More Cost-Effective Choice for Your Supply Chain

Mon, 24 Feb 2025 21:09:05 GMT

Rail vs Truck: Why Rail is the Smarter , More Cost-Effective Choice for Your Supply Chain

In today’s logistics landscape, efficiency and cost control are more critical than ever. With rising fuel prices, driver shortages, and increasing regulatory pressures, businesses are seeking reliable cost-effective transportation solutions.

Some shippers are experiencing difficulty getting trucks to load, and truck rates in some regions have doubled. If your company is relying on long-haul trucking , it’s time to assess your transportation strategy. Rail transportation offers significant cost savings, improved efficiency, and a more sustainable supply chain solution.

The Cost Advantage of Rail Over Trucking

The High Costs of Trucking

Shipping directly by truck costs about 15.6 centers per ton-mile, compared to 5.1 cents per ton-mile when using rail. While trucks are a good solution for local and regional moves, the cost of long-haul trucking continues to rise due to:

• Fuel Prices: Diesel costs remain volatile, but rail transport is far more fuel-efficient.

• Driver Shortages & Labor Costs: A growing driver shortage is pushing wages higher, increasing operating costs.

• Congestion & Tolls: As highways become more congested, delays and toll fees add unexpected costs to trucking.

Why Rail is the More Cost-Effective Choice

Rail transportation is one of the most fuel-efficient and cost-effective options for moving bulk and long-haul freight. Here’s why:

• Fuel Efficiency: Rail can move one ton of freight nearly 500 miles on a single gallon of fuel — for bulk liquid, it takes roughly 3.5 semi-trucks to fill 1 rail car .

• Lower Per-Ton Costs: Moving high-volume shipments over long distances via rail significantly reduces transportation costs per ton.

• Less Labor Costs: A single train can carry as much freight as several hundred trucks , dramatically reducing labor costs.

• Minimal Highway Congestion & Delays: Trains operate on dedicated tracks, eliminating congestion-related slowdowns and costs.

How Highroad Consulting’s VIEWPOINT™ Model Helps You Benchmark & Optimize Rail Rates

Switching to rail or optimizing your current rail strategy requires data-driven decision-making . That’s where our VIEWPOINT™ model comes in.

VIEWPOINT™ is an analytical process designed to help shippers:
✔ Benchmark Rail Rates: Understand how your rates compare rates paid by your direct competitors.

✔ Identify Leverage Points: Pinpoint strategic opportunities to negotiate better rail rates, and strengthen your negotiating power.

✔ Strengthen Competitive Positioning: Analyze your rail and trucking costs on a per ton-mile basis and develop a market-driven strategy to enhance your company’s competitive position in current lanes and to enter new markets.

✔ Develop Actionable Rail & Carrier Strategies: We work with you to ensure your transportation costs align with your competitive goals.

Optimizing Your Supply Chain Starts Now

If your business is concerned about rising transportation costs, let’s talk about how rail can be a cost-saving alternative to trucking. With our VIEWPOINT™ model, you’ll have the insights needed to make smarter, more competitive transportation decisions.

�� Are you making the most of it? Contact us today to learn how VIEWPOINT™ can help you optimize your rates.

Call (219) 838-3800 by May 31 ^st , 2025, for a FREE one (1) hour consultation.

Click here to learn more about what Highroad Consulting has to offer.

The Future of Rail and Logistics: High Road Consulting Ltd.'s Vision

Mon, 24 Feb 2025 15:29:06 GMT

Emerging Technologies Reshaping Rail and Logistics

As the transportation industry undergoes rapid transformation, the future of rail and logistics is poised for innovation, efficiency, and sustainability. High Road Consulting Ltd. remains at the forefront of these advancements, helping businesses adapt to emerging trends and seize new opportunities in a dynamic marketplace.

Emerging Technologies Reshaping Rail and Logistics

The integration of artificial intelligence, automation, and predictive analytics is revolutionizing rail and logistics operations. Highroad Consulting Ltd. assists clients in leveraging these technologies to optimize freight movement, reduce costs, and improve overall efficiency. From automated train operations to advanced tracking systems, the future promises greater accuracy and reliability.

Sustainability and Green Logistics

Environmental concerns are driving the industry toward more sustainable solutions. Rail transport, already one of the most energy-efficient freight modes, is set to become even greener with the adoption of alternative fuels, electrification, and carbon reduction initiatives. Highroad Consulting Ltd. supports businesses in developing eco-friendly logistics strategies that align with regulatory requirements and corporate sustainability goals.

Supply Chain Resilience and Adaptability

Recent global disruptions have highlighted the need for resilient supply chains. Future logistics solutions will focus on diversification, digitalization, and flexibility to withstand unexpected challenges. Highroad Consulting Ltd. helps businesses build agile supply chain strategies that enhance reliability and responsiveness in an increasingly interconnected world.

Regulatory and Market Evolution

As government regulations and market dynamics continue to evolve, businesses must stay ahead of policy changes, trade agreements, and compliance requirements. Highroad Consulting Ltd. provides expert guidance on navigating regulatory frameworks and capitalizing on market shifts to maintain a competitive edge.

Partner with Highroad Consulting Ltd. for Future Success

The future of rail and logistics is filled with opportunities for innovation and growth. With decades of expertise and a forward-thinking approach, Highroad Consulting Ltd. is dedicated to helping clients stay ahead in an evolving industry.

Discover how Highroad Consulting Ltd. can position your business for long-term success by visiting www.takehighroad.com or reaching out today.

Rail and Logistics Experts

Mon, 24 Feb 2025 15:06:03 GMT

Deep Roots in the Rail Industry

For nearly three decades, High Road Consulting Ltd. has been a leader in rail and logistics consulting, helping businesses optimize transportation strategies and improve supply chain efficiency. Founded by Sandra Dearden on July 1, 1996, the firm brings unparalleled expertise in rail operations, logistics management, and regulatory compliance.

Deep Roots in the Rail Industry

With a career spanning multiple Class I railroads, including leadership roles at Chicago & Northwestern and Union Pacific, Sandra Dearden built Highroad Consulting Ltd. on a foundation of industry knowledge and strategic problem-solving. The firm originally operated as MDCO Consulting, Inc. before rebranding to better reflect its commitment to high-level transportation solutions.

Specialized Rail and Logistics Consulting

Highroad Consulting Ltd. provides expert services across all aspects of rail and logistics, working with shippers, short line railroads, law firms, and consulting agencies. The firm has assisted clients with network optimization, rail rate analysis, contract negotiations, and regulatory proceedings, ensuring their transportation strategies align with business goals.

A Proven Track Record in Transportation Success

With a 100% success rate in expert testimony before the Surface Transportation Board (STB) and in civil court cases, Highroad Consulting has earned a reputation for delivering strategic insights and actionable solutions. Their consultants help businesses reduce costs, enhance operational efficiencies, and navigate the complexities of the rail industry with confidence.

Unlock New Opportunities in Rail and Logistics

Whether you're looking to optimize your freight network, improve supply chain logistics, or address regulatory challenges, Highroad Consulting Ltd. has the expertise to guide you.

Discover how Highroad Consulting Ltd. can support your business by visiting www.takehighroad.com or reaching out today.

High Road Consulting Ltd.: Driving Success in Surface Transportation

Mon, 24 Feb 2025 14:56:24 GMT

A Legacy of Expertise

For nearly three decades, High Road Consulting Ltd. has been a trusted name in surface transportation consulting. Founded by Sandra Dearden on July 1, 1996, the firm has consistently delivered high-quality consulting services across multiple industries, helping clients navigate the complexities of logistics, rail transport, and operational strategy.

Sandra Dearden’s extensive background in the railroad industry—working with three Class I railroads, including serving as General Manager, Marketing & Sales with Chicago & Northwestern and later Union Pacific—laid the foundation for Highroad Consulting. Originally established as MDCO Consulting, Inc., the company rebranded to Highroad Consulting Ltd. to reflect its commitment to strategic, results-driven solutions.

Comprehensive Consulting Services

With a dedicated full-time staff and a network of over thirty contract consultants, Highroad Consulting Ltd. specializes in all functional areas of surface transportation. Their clients range from shippers and short-line railroads to law firms and other consulting agencies. Notably, the firm's reach has extended globally, including consulting for the Ministry of Railways in Beijing, China.

Proven Track Record

Highroad Consulting has a 100% success rate in providing expert testimony before the Surface Transportation Board (STB) and in various civil court cases. Their unparalleled industry knowledge and strategic insight have made them a go-to resource for businesses looking to optimize their transportation operations.

Partner with Highroad Consulting

By partnering with Highroad Consulting, businesses gain access to specialized expertise that enhances operational efficiency, streamlines logistics, and unlocks new growth opportunities. Whether you're navigating regulatory challenges or optimizing freight logistics, Highroad Consulting provides the insights and solutions you need to succeed.

To learn more about how Highroad Consulting Ltd. can support your business, visit www.takehighroad.com or contact them today.