The best way to improve railroad contract negotiations is to understand the market and the opportunities to increase competition for your traffic. Jay Roman, president of Escalation Consultants Inc., Gaithersburg, Md., offers the following advice for reducing rail freight rates. 1 Shake off the rail monopoly power syndrome. Shippers sometimes hesi- tate to try to reduce costs because they fear railroads' monopoly power over their traffic. But you can't reduce rates if you worry about what you can't do. 2 Explain why you need a better rate structure. You'll be more effec-tive during negotiations if you can outline how different freight cost scenarios affect the business your company can pursue, potential competitive options, and areas for capital investment.
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