Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

B. An Analysis of Direct Barge Costs •
In the analysis of towboat costs reported in the previous section,
cost was related to equipment and waterway characteristics, as well as
the general output level. It was found, in particular, that significant
cost differences existed for shipments on different waterways. A further
attempt is made in this section to allocate a general cost category (dir-
ect barge costs) to classes of service barge firms perform. In addition
to equipment and waterway characteristics, the effect of the actual com-
modity shipped is examined.
Direct barge costs are primarily maintenance costs. Maintenance
is required for two reasons: (1) physical deterioration due to the .
passage of time, and (2) wear occasioned by actual use. Maintenance
cost due to time should be related to the age of the barge. One would
expect that wear due to use would be systematically related to the com-
modity carried and the waterway over which the movement occurs. In
addition, cost is related to the size and type of barge as well as the
total output of each barge.
The Data
. Data on individual barge costs have been obtained from one inland
waterway operator for a period of three years. Although cross-section
data would be preferable it was not possible to gather equivalent data
from other firms. However, due to the homogeniety of the equipment,
there is no reason to suspect that barge costs should vary systematically
with different companies. In addition, i strong ariument can be made
that the data obtained are representative of the entire industry.
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