Westrans Project - The Alternative

The total value of coal, FOB mine, consumed in the United States was $21 billion in 1985. Roughly $6 billion was spent to transport coal from the mine to the consumer by rail. This indicates the impact railroad transportation has on the competitiveness of U.S. coal as an energy resource. Actually, this is just the tip of the iceberg. When you consider the largest U.S. reserve of coal, the Powder River Basin, which is possibly the lowest cost coal in the U.S., or maybe even the world, the transportation cost is the overriding factor in developing competitive pricing. Rail transportation costs from Powder River can be multiples of 2, 3, or even 4 times the cost of coal FOB mine. About sixty percent of all U.S. coal is shipped by rail. In the case of Powder River Basin coal and many other reserves there are no current alternatives to rail. Are there feasible alternatives to rail transport?