Cost models for coal transportation by common carrier. Final report. [Marginal costs; effect of volume and traffic conjection]

Technical Report · Thu Mar 01 04:00:00 EST 1979

OSTI ID:6194337

White, S J; Hynes, J P

This study developed models for computing the variable operating costs (i.e., fuel, labor equipment and maintenance) associated with moving coal from mines to power plants. The study also refined previous research which found that certain portions of the rail and waterways networks could become congested if greatly increased use of coal by utilities is realized. The incremental cost of routing coal shipments around the congested areas was calculated using the cost models. An analysis was made of interegional movements of coal but did not consider all factors affecting costs. It did not assess local collection and distribution capabilities or the future demands on those capabilities. In computing the capacities of origin/destination routes, the study did not consider the existence of deteriorated roadbeds, weight limitations or other constraints, such as those imposed by local communities or states. Nor did the analysis consider institutional impediments to the free movement of unit trains from one carrier's line to another, such as inter-carrier competition, differing work rules, noncompensating revenue splits, and incompatible freight rates. All of these factors can reduce the capacity of a route, thus increasing rail congestion and cost. To the extent that water carriers are used for interregional moves, the demands on the rail system will be lessened. Three computerized coal transportation cost models were developed: (1) rail; (2) inland river, Great Lakes, and coastal ocean waterways; and (3) origin/destination-loading/unlodaing and for the transfer of coal between rail and barge at intermodal transshipment points. The models calculate the costs of owning, maintaining, and operating transportation and related equipment, including: propulsion equipment, load-carrying equipment (e.g., hopper cars or barges,), crew costs, fuel costs, maintenance costs, other operating costs, and the cost of capital.

• Research Organization: Energy Development Associates, Madison Heights, MI (USA)
• OSTI ID: 6194337
• Report Number(s): EPRI-EA-675
• Country of Publication: United States
• Language: English

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