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

uling costs. In addition, the firm would most likely have to maintain
a larger barge fleet. Scheduling costs cannot be determined here, how-
ever, one would expect direct barge costs to be higher the greater
number of commodities carried by each barge.
The second point of view that can be taken in disaggregating total
output is by the geographic area of operation. The inland waterways do
not represent a homogeneous "roadbed" for freight operations. This is
especially important in considering towboat costs where the physical
characteristics of the waterway have been shown to have a significant .
effect on output and cost (see the previous section).
These effects should be evident for the barge fleet as well,.parti-
cularly when maintenance cost is considered. Barge equipment faces a
continual rust problem. To prevent rust, each barge is treated with a
special rust-resistant paint. These treatments can be quite expensive,
often running in excess of $5,000 for any one barge. One.would expect
that waterways with relatively higher salt content (or other corrosive
material) such as the entire Gulf River System would also have higher
barge costs associated with movements on them.
. Barges also receive additional wear due to physical contact with
other barges or structures such as locks and piers. Such effects are
quite likely to be associated with the river district over which a
barge operates. For example, a river district which has a large number
of locks that must be travermiand difficult navigation conditions will
tend to have a higher incident of collision and scraping. Barge damage
and thus barge maintenance cost will be higher for such river districts.
A similar Argument could be made for river districts with conjested
traffic.
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