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

PDFTech ReportKTC-16-02/MTIC-8-14-1FIntermodal transportationFreight trafficInland waterwaysRoutesCommodity flowCoalEconomic impactsPricingGeographic information systemsKentuckyMultimodal Transportation and Infrastructure ConsortiumBlandford, BenjaminGrossardt, TedShouse, MichaelRipy, JohnUniversity of Kentucky Transportation CenterKentucky. Transportation CabinetUS Transportation CollectionThis paper describes a GIS-based intermodal network model for the shipment of coal in the United States. Thepurpose of this research was to investigate the role played by railways, waterways, and highways in the movement ofcoal 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 EnergyInformation Administration\ue2\u20ac\u2122s 2010 data, which provided detailed origin, destination, primary mode, and volumeinformation for coal shipments. The model identifies the optimum routes for coal shipments based on a rate structurethat accounts for the relative costs of shipping by each of the modes. The model, as well as available statistics, revealsthe dominance of coal mined from the Powder River Basin. Compared to other sources\ue2\u20ac\u201d principally, the AppalachianBasin \ue2\u20ac\u201d 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 fromwithin 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. Althoughthis modeling relies on 2010 data, a look at more recent trends in coal prices and mining indicate that the Powder RiverBasin continues to dominate, while production and industry employment have steadily declined in the AppalachianBasin. The shift away from coal and toward natural gas as a primary energy source argues for the region\ue2\u20ac\u2122s coalextraction industries remaining in a depressed state, which could produce negative economic consequences fortransportation industries. Carrier and port facilities will need to adopt a more diversified shipping portfolio toaccommodate for these losses. It is possible that the loss of coal will open up opportunities for other commodityshipments on the inland waterways. This modeling demonstrates the potential for such integrated models toaccommodate energy-related or similar data, and serves as a tool for freight planners in identifying energy transportationcorridors of significance. It could potentially be used to analyze the movement of other commodities, which could letindustry stakeholders identify new markets to tap into. Further, the model and analysis can help inform MAP-21 relatedefforts to develop a National Freight Network and National Freight Strategic Pla