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An intermodal network model of coal distribution in the United States and its economic implications for the inland waterway system Kentucky : final report.

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English


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    Final report
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  • Abstract:
    This paper describes a GIS-based intermodal network model for the shipment of coal in the United States. The purpose

    of this research was to investigate the role played by railways, waterways, and highways in the movement of coal from

    its source area to point of use, and to highlight the implications these movements have for the U.S. economy. The

    project team modeled coal movements across the U.S. intermodal transportation network using the Energy Information

    Administration’s 2010 data, which provided detailed origin, destination, primary mode, and volume information for coal

    shipments. The model identifies the optimum routes for coal shipments based on a rate structure that accounts for the

    relative costs of shipping by each of the modes. The model, as well as available statistics, reveals the dominance of coal

    mined from the Powder River Basin. Compared to other sources— principally, the Appalachian Basin — coal from

    Mountain West is significantly less expensive, thus giving it a significant comparative advantage. Both Texas and

    Illinois, the two largest coal consumers by state, obtain virtually all of their coal from the West or from within state.

    Appalachian Basin coal serves domestic and export markets primarily in the East and Southeastern U.S. Only the Ohio

    River provides significant movement of Central Appalachian Basin coal to the west and south. Although this modeling

    relies on 2010 data, a look at more recent trends in coal prices and mining indicate that the Powder River Basin

    continues to dominate, while production and industry employment have steadily declined in the Appalachian Basin. The

    shift away from coal and toward natural gas as a primary energy source argues for the region’s coal extraction industries

    remaining in a depressed state, which could produce negative economic consequences for transportation industries.

    Carrier and port facilities will need to adopt a more diversified shipping portfolio to accommodate for these losses. It is

    possible that the loss of coal will open up opportunities for other commodity shipments on the inland waterways. This

    modeling demonstrates the potential for such integrated models to accommodate energy-related or similar data, and

    serves as a tool for freight planners in identifying energy transportation corridors of significance. It could potentially be

    used to analyze the movement of other commodities, which could let industry stakeholders identify new markets to tap

    into. Further, the model and analysis can help inform MAP-21 related efforts to develop a National Freight Network and

    National Freight Strategic Plan.

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    urn:sha256:dc1608c11f88ce0a9e76cf821fc840898adf58794a9751afd44b951ef77fb038
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    Filetype[PDF - 1.68 MB ]
File Language:
English
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