Sandra J. Dearden is the founding President of HIGHROAD Consulting, Ltd. Prior to forming the firm in 1996, Sandra was General Manager - Sales & Marketing for a strategic business unit at Chicago & North Western Transportation Company; she brings more than thirty years of experience in strategic planning, contribution based management, business development, regulatory and litigation support to the firm's engagements.
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.
Ms. Dearden used the consultative selling approach to build market share. She led strategic planning sessions with senior management teams of numerous rail shipping companies, which led to reengineering of their distribution systems to provide for more efficient management of inventories and JIT service to the retail customers, while reducing transportation costs. She was instrumental in the development of the unit train distribution system for Canadian potash and Florida phosphates 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.
Also, representing 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 and she responded to inquiries from congressional and senatorial aids to representatives on key committees. As a result, a compromise agreement was reached to the satisfaction of all parties. By invitation, Ms. Dearden subsequently was a seminar leader at a NAFTA seminar in Toronto, ON where the dumping decision was presented as a case study.
Sandra has directed numerous cross-functional projects and has the experience needed to consult on a number of subjects and projects. Under her direction, HIGHROAD personnel designed and developed Highroad's rail costing model, INSIGHT: Rail Edition© and its benchmarking analytical process, VIEWPOINTM.
Ms. Dearden assisted Barilla America, Inc. in locating a new manufacturing facility, which opened in June 2007 in Avon, NY. The project involved developing benchmarking data that was used as key criteria in finalizing two potential locations for the new plant. Under a project code name, Ms. Dearden led the due diligence on the railroads and rail lines that serve the two potential locations. Finally, Highroad used the benchmarking data to develop rail strategies for each location and negotiated rates and other agreements on Barilla's behalf using a collaborative approach and reduced freight costs for the new plant by more than $8 million during the first three years of operation.
Ms. Dearden has submitted expert testimony in numerous proceedings before the Interstate Commerce Commission and its successor agency, the Surface Transportation Board (STB). She served as an expert marketing witness in North Western's acquisition of the former Rock Island Spine Line from Minneapolis to Kansas City, and on the anti-trust portion of North Western's application to acquire the Milwaukee Road. North Western received favorable rulings in all of these proceedings.
As a consultant, she prepared the competitive impact study for Kansas City Southern to support is position to oppose the merger of Union Pacific Railroad and Southern Pacific Transportation Company. Although the STB approved the merger, KCS received a favorable opinion from the Department of Justice based on the competitive impact.
Highroad has been an industry leader, addressing fuel surcharges assessed by railroads and trucking companies. In 2003, Highroad released a white paper with cost evidence that revealed the railroads were over-recovering with their fuel surcharge programs. In May 2006, the STB 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 that revealed 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 constitute an unreasonable practice and ordered the railroads to change their fuel surcharge programs on regulated traffic to reflect actual fuel cost increases.
Other examples of work before the STB include:
Ms. Dearden 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. The "Watco Deciseion" issued by the STB was favorable to Marquette Rail.
Ms. Dearden has submitted expert testimony in numerous proceedings before the Interstate Commerce Commission and its successor agency, the Surface Transportation Board. A few examples include:
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 coordinated development of testimony for three 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.
Ms. Dearden directed a team of consultants that submitted rebuttal testimony for the complaintant shipper, Wisconsin Power & Light, in a stand-alone rate case against the Union Pacific Railroad, see STB Finance Docket 42051, Wisconsin Power and Light Company, Complainant, v. Union Pacific Railroad, Defendant. The Surface Transportation Board found that the defendant railroad had market dominance and that the challenged rate was too high. Maximum reasonable rates were prescribed and reparations were ordered. The decision was upheld in the Court of Appeals.
Under STB Finance Docket No. 42060, North American Freight Car Association v. Burlington Northern and Santa Fe Railway Company, Ms. Dearden represented a client in the proceeding, opposing empty car storage charges. HIGHROAD was contacted by the railroad's outside counsel, an agreement was negotiated that was favorable to HIGHROAD's client.
Under her direction, HIGHROAD cost experts reviewed financial data presented by Burlington Northern Santa Fe, STB Docket No. AB-6 (Sub-No. 382X), Burlington Northern and Santa Fe Railway Company Abandonment within the city limits of Chicago in Cook County, Illinois. HIGHROAD'S Consultant, representing the clients opposing the abandonment, prepared a verified statement noting errors in the BNSF filing. The abandonment was denied by the Surface Transportation Board.
Sandra is respected as a seminar speaker. Topics include: Rail Fuels Surcharges - Rail Fuel Impact Study; Integrating Activity Based Costing into Distribution Planning and Market Based Pricing; Logistics Tools, Midwest Advisory Board; and at a NAFTA Seminar in Toronto, ON, Impact of Department of Commerce Surcharges on Canadian Potash on U.S. Farm Economy.
She served as a member of the Intermodal Advisory Board, Chicago Area Transportation Study (CATS); Rail Committee, National Industrial Traffic League; on the Board of Directors, Midwest Association of Rail Shippers; and she was an officer and member of the Governing Board of the Traffic Club of Chicago. 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.