Coal transportation risks for fuel switching decisions

Technical Report · Sun Sep 01 00:00:00 EDT 1991

OSTI ID:5001533

Toth, S ^[1]

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1. Fieldston Co., Inc., Washington, DC (United States)

Coal switching costs are generally expected to be the single largest cost factor associated with switching coals to low-sulfur sources. This report analyzes the principal issues and risks involved in moving Powder River Basin coal to eastern destinations and in moving increased amounts of Central Appalachian low-sulfur coal along the Ohio River. The railroad infrastructure for Powder River Basin coal is essentially optimized for current levels of traffic, yet estimated shipments will expand by 100 million tons over the next ten years. A critical issue is the magnitude and timing of investments in the railroad system required to maintain quality of service. Costs for rail and barge transport are comparable at present, yet they have different abilities to handle increased traffic. Negotiated rates will not be uniform and will change with the dynamics of investments and the clarification of utility compliance plans. Coal traffic patterns on inland waterways will change in order to handle barge movements for both Powder River Basin and Central Appalachian low-sulfur coals. Docks serving Central Appalachian coal fields have ample capacity, but originations will take place increasingly far from the rivers. Potential bottlenecks at specific locks and dams along the Ohio River have been identified. With the barge industry coming out of a slump, future barge rates will depend critically on the Corps of Engineers' schedule to upgrade key facilities. 30 figs., 14 tabs.

• Research Organization: Electric Power Research Inst., Palo Alto, CA (United States); Fieldston Co., Inc., Washington, DC (United States)
• Sponsoring Organization: EPRI; Electric Power Research Inst., Palo Alto, CA (United States)
• OSTI ID: 5001533
• Report Number(s): EPRI-IE-7118-Vol.1
• Resource Relation: Other Information: EPRI Report Series on Low-Sulfur Coal Supplies
• Country of Publication: United States
• Language: English

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