Economics of freight transport

[dcfirefighter]

Even before Katrina, the various competing modes of bulk transport have been vying for federal dollars, each claiming advantages over the other.

Most people in this forum recognize / believe that rail freight is more economic than road freight, when externalities such as road wear and pollution are considered. However, road freight would maintain a distinct network advantage, even if all externalities were collected - railways don't go to every address, streets do.

On the other hand, along a few major navigable rivers, barge freight is competitive - not counting the costs of subsidies, not the least of which is the maintenance of waterways by the Army Corps of Engineers. Likewise, barge freight generally has the largest relative dead-head cost, though it is not insignificant in rail or even road freight.

The general cry by advocates of any particular mode is that the other modes wouldn't be competitive without massive subsidies, either through the ACOE, federal highway funds, or other sources.

Here's a general coverage of modes by the CBO. It's really old (1982) but it's the most general comparison I've found. http://www.cbo.gov/showdoc.cfm?index=5330&sequence=0

It seems pipelines are the most efficient, but limited to liquids and slurries.

Next are barges, though their benefit is limited to bulk items such as aggregate or coal - for which trains are very efficient as well. Furthermore, the total trip may not be as efficient as an alternative because many commodities are trucked or rail freighted several hundred miles to a navigable waterway, and rivers tend to wander, despite our knowledge that a line is the shortest distance between two points.

Close after barges are trains, especially heavily loaded commodity trains.

Bringing up the rear in terms of efficiency are over the road trucks, with about half the ton-mile efficiency of trains, depending on the type of freight. Trucks, however, often get to follow the shortest possible route, and are more likely to be direct shipments with fewer transhipments.

I'd like to hear the thoughts of E&E members, esp. in light of the damage that Katrina has done to inland barge freight as well as the famed gas pipe lines.

[jody]

1. High gas prices plus the impact of a closed NO port for several months

will ripple throughout the economy.

Rail transport could become a more viable mode if it was subsidized to the same degree as truck transport.

I haven't read a report recently but is rail transport a more viable, energy-efficient mode than truck?

I'm very interested in replies to your post. :hi:

[dcfirefighter]

3. From what I've read

trains are about twice as efficient on a per-ton-mile basis as truck.

Trucks & trailers have been getting lighter and more efficient for years - train cars have not.

However, trains generally require some other mode - typically trucks - to get goods from the rail terminal to the point of consumption.

Some sort of equalizing basis would make them more competitive to trucks, either subsidizing (or better yet, nationalizing the railways) or making the trucks pay for their weight-mile road damage.

I'd like to see the railways managed more like the national highway system - public right of ways, private rolling stock. It's my impression that this is exactly opposite of GWB's favorite plan.

[NNadir]

2. Liquid pipelines are excellent; gas pipelines suck.

Much of the world's natural gas is (still) flared because gas lines, like electrical transmission lines, are only economic over relatively short distances unless (as is happening now) the price of the gas is very high.

It is possible to liquify natural gas at very low temperatures (and high energetic expense) and as the price increases, this option will be used increasingly. The critical temperature for methane is very cold, -82C, lower than the temperature of dry ice. Methane can also be liquified by partial oxidation to methanol, a toxic liquid, or my conversion, as I repeat often, to the wonder compound dimethyl ether, which has a critical temperature, 127C, that is above the ordinary boiling point of water.

The terminals for importation of liquified natural gas in the United States - like all energy projects of all types - are subject to considerable NIMBY pressure. Americans, an increasingly stupid population, thinks energy comes from everybody else's backyard.

[dcfirefighter]

4. wouldn't it be more appropriate to say gas pipelines 'blow'? n/t

[NNadir]

5. You're right. n/t