Container-on-Barge Pre-Feasibility Study Final Report - Towmasters ...

Characteristics of Successful COB Services
COB service is a widely used and rapidly growing means of transportation throughout the world
in Europe, the Pacific Northwest and Asia. COB traffic on the Rhine grew from less than 10,000
units in 1975 to 450,000 units in 1991 4 and to 2,300,000 5 units today. COB on the Columbia
Snake River System grew from 125 containers in 1975 to 50,000 in 2000. 6 In 2000, the Yangtze
River handled 605,000 TEUs and expects to handle 6,200,000 TEUs by 2010.
According to the Tisrad Research Contract with the Seed Foundation (Appendix H), published by
the Arkansas Basin Development Association, undated (circa 1992), entitled "Inland Waterways
and Intermodalism: <strong>Container</strong>s on the Inland Waterways - A Profile and Opportunities", IIc, page
3-4 and III-page 2, they state that:
"During an interview with Elco Freight International, Inc., it was pointed out that two things
needed to be recognized up front. <strong>Container</strong> owners and ship lines are very interested in the turn
around time of their equipment. That is the length of time it takes for the container to reach its
destination and return to the point of origin (the deep water port). One way to negate this concern
is to establish a container pool at or near the destination point for the containers after they are
unloaded. Then there is a pool of containers to draw from for the local shippers wishing to ship
outbound cargo. 7
"The second concern is the "one-way traffic" that is sometimes produced by not working both
ends of the container shipping business (inbound and outbound). The container pool mentioned
previously will help keep this to a minimum as long as the reverse movement of the containers is
promoted, as sufficient business is developed to preclude the "one way" traffic. 8
"It should be noted that the containers belonging to ITEL [used in a COB project from the Port of
Muskogee] were foreign made and not imported into this country as a unit with the proper duty
and taxes paid. Therefore, they were registered as international containers and could not be used
in domestic trade. In other words, the container would have to leave the country and return. The
exception to this rule is if the container is being repositioned, cargo may be moved en route of the
re-positioning." 9
4 <strong>Container</strong> Transport with Inland Vessels, Pg 18
5 The European Federation of Inland Ports
6 World Cargo Online News, Issue: March 2002
7 Inland Waterways and Intermdolism: <strong>Container</strong>s on the Inland Waterways – A Profile and Opportunities,
II pg.3
8 Inland Waterways and Intermdolism: <strong>Container</strong>s on the Inland Waterways – A Profile and Opportunities,
II pg.4
9 Inland Waterways and Intermdolism: <strong>Container</strong>s on the Inland Waterways – A Profile and Opportunities,
III pg.2