An Economic Analysis of Alternative Grain Transportation Systems: A Case Study, 1973

(1973) An Economic Analysis of Alternative Grain Transportation Systems: A Case Study, 1973. Iowa State University

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Abstract

This report presents the results of research conducted t o determine which grain transportation system would yield the highest net income in a 6½-county area around Fort Dodge, Iowa. Transportation alternatives considered include the traditional single-car rail system, multiple rail car shipments of 3, SO, 80 and 115 cars , truck, truck-barge and rail-barge. It was assumed that sub terminals would be required to load the shipments of SO cars or more. Also, alternative rail line options were considered: these included maintaining the 1971 rail system , maintaining and upgrading 100 percent, 46 percent and 27 percent of the 1971 rail lines to permit trains with jumbo hoppers to travel at least 35 miles per hour. Total investment requirements were estimated for selected grain distribution systems. The evaluated alternatives were ranked in terms of total joint net income, investment requirements and capacity to move grain with minimum congestion within the entire grain distribution system.