Recent Technical and Management Improvements in US Inland Waterway Transportation

Abstract

Over the last several years, the US inland waterway transportation industry has significantly reduced its fuel consumption and improved its efficiency, with the side effect of less fuel tax collected per ton of cargo carried, despite the increase in cargo traffic. Fuel tax revenues are used for rehabilitation and construction projects in the inland waterway system, hence the US Army Corps of Engineers, providing us with relevant data over the interval in question, asked us to investigate this surprising reduction, and determine the main technical and fleet management improvements that caused it. Our research involved both visits with most major US inland waterway fleets, interviews with their engineers and managers, as well as statistical analysis of the above data. Technical improvements (such as engine plant efficiency increases), lighter, stronger building materials (such as light steel), and improved designs for better hydrodynamics, were not as important compared to management improvements (such as the use of computer-aided monitoring systems and advanced telecommunications, optimized tow configuration and speed, and increased triangular trips as opposed to simple round trips with returns empty). In addition, the demand for less expensive, imported steel for the US has resulted in an increased percentage of fully loaded return trips from New Orleans to the US Midwest, and hence also in increased fleet utilization.