IC 8614 Comparative Transportation Costs Of Supplying Low-Sulfur Fuels To Midwestern And Eastern Domestic Energy Markets

The Bureau of Mines studied the costs of transporting fossil fuels, coal, and residual fuel oil from areas of production to consumer regions. Transportation data were stratified by type of carrier, size of shipment, and distance to determine what general effects these variables have upon transportation costs. Economics of haul for coal exist for longer versus shorter distances, and for larger versus smaller trainload sizes. Tanker and barge transportation of residual fuel oil does not show economies of haul for longer distances. It is shown that tanker size and seasonal variation are primary factors influencing the cost of shipping. Railroad transportation data show that coal from western coalfields could be competitive with foreign residual fuel oil in selected midwestern fossil fuel markets. However, the western coal would not be competitive in the New England and the eastern seaboard energy markets.