Estimating Transportation Costs For Large Volume Shipments

The marketability of a large volume bulk material is significantly effected by transportation costs. Hence, it is essential for anyone that deals with minerals or mineral wastes to be able to reliably estimate bulk transport costs. The three types of bulk overland transportation modes that will be discussed are truck, railroad, and pipeline. Contract and private carriage are the two types of truck transport generally suitable for movement of bulk commodities. Contract carriers are those transportation firms that service a limited number of shippers and geographic points, and carry a restricted number of commodities. Private carriage consists of control over drivers and equipment by the shipper, ownership or lease of the transport equipment, and shipment of commodities related to the primary business of the shipper.1 A combination of private and contract carriage may also be used. Depending on the size and regularity of the shipment, rail offers single car, multiple car, or unit train service to move bulk minerals. Both long and short distance pipeline transportation has been shown economically and technically feasible for many different solids such as, mine and quarry products, coal, chemicals, copper concentrates, phosphate rock, and sewage sludge. 2