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.
