aise ch06 water carriers a 8889f
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Management of
Transportation
Bardi/Coyle/Novack
2006 Thomson
Chapter 6
Water Carriers and
Pipelines
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Brief History: Water Transport
Early form of freight and people transport
Important contributor to early U.S.
economic and social developmentInitial population/industrial concentration along
coast and rivers
Waterways are natural ways
public expenditure for improvementsoccasionally necessary
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Industry Overview
Measures ofEconomic Significance
A primary transporter of
dry bulk commodities
bulk petroleum, petroleum products and
chemicals
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Types of CarriersLegal Forms
Private water carriers cannot be hired and onlytransports freight for the company that owns or leases the vessel.
For-hire water carriers Regulated common carriers
Regulated contract carriers
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Types of Carriers, contdClassified by Waterway Used
Internal or inland carriers operate barges,
towboats
Great Lakes carriers operate laker ships Coastal carriers operate ocean-going ships
and barges
Intercoastal carriers operate ocean-goingships and barges
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Number of Carriers, Competitive
Conditions
Relatively small number of small firms
Approx. 550 domestic for-hire carriers
Inland carriers earn highest share of revenues
Moderate intramodal competition
Intense intermodal competition
With rail for dry bulk commodities
With pipelines for oil and petroleum products
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Selected Operating Characteristics
Medium to long distance shipments
400 miles on ave. for inland
1500 miles on ave. for coastal Relatively large carrying capacity
Barges: 1500-3000 tons per barge
L
ake vessels: 20,000 tons Low cost service
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Selected Service Characteristics
Speed of service
Slowest mode for dry cargoes
Trade-off with cost favors low-value goods
Service disruption
Vulnerability to ice and bad conditions
Other characteristics
Packaging requirements for high-value goods
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Operating and Service Implications
Water carriers well suited for low value-to-
weight traffic where transport rates are
significant part of delivered cost
Service characteristics may add cost for
user.M
ust be traded off with low rates
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Equipment and Terminals
Operating equipment vessel types
Terminals
Require significant capital investment
Most publicly provided, operated by local
governments, authorities
Few provided by large volume shippers
Functions facilitate intermodal transfers
Provide temporary storage at port
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Pipelines
Industry Overview, contd
Ownership: Ranked by Share of Revenues
Individual, vertically integrated oil
companies
Jointly owned oil pipeline companies
Railroads
Independent oil companies
Other industrial companies
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Operating Characteristics
Oil Pipeline Network
Includes system of
Gathering lines and stations
Crude oil and product linesPumping stations, refineries, and terminals
Gathering lines
Move oil from wells to gathering stations
Relatively short distance movement
Small diameter, laid on ground surface
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Operating Characteristics, contdOil Pipeline Network
Crude oil lines
Move crude oil from gathering stations torefineries
Long distance movement
Shipments ave. 800 miles, may move 1000sof miles
Large diameter lines laid underground
Pumping stations provide power
Capacity determined by line diameter andpumping station power
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Operating Characteristics, contdOil Pipeline Network
Finished product trunk lines
Move product from refineries to market area
terminalsLong distance movement
Shipments ave. 400 miles, may move 1000s of miles
Large diameter lines laid underground
15 grades of finished product, includingkerosene, jet fuel and gasoline
Final delivery to customer usually by truck
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Service Characteristics
Relative advantages
Low rates
Low loss and damage rates
Warehousing function (3-5 mph)
High delivery dependability
Relative disadvantages
Slow speed limits responsivenessLimited geographic flexibility
Limited variety of products carried