Skip to main content

Costing the Movement of Western Canadian Coal to Thunder Bay: An Incremental Approach

  • Chapter
Energy Policy Modeling: United States and Canadian Experiences
  • 69 Accesses

Abstract

The problem of selecting the appropriate mode or combination of modes for the movement of western Canadian coal to Ontario through the year 2000 is studied. The analysis includes the development of coal demand and supply forecasts, and an assessment of rail traffic and line capacity in western Canada. Marginal capital and operating costs for four alternative systems — rail/lakeboat, slurry pipeline/lakeboat, high-voltage direct-current transmission, and coal gasification — are developed, and tariff schedules for each system through 2000 calculated using a discounted cash flow computer model. A sensitivity analysis on the model parameters and cost estimates is performed.

This paper describes the results of a research project carried out under the supervision of Dr. R. W. Lake of the Canadian Institute of Guided Ground Transport, as part of the author’s MBA program at Queen’s University. Support was provided by a Transport Canada Research and Development Center Research Fellowship and by CIGGT.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Ahlf, R. E. 1975. Heavy four-axle cars and their maintenance of way costs. American Railway Engineering Association Bulletin 653.

    Google Scholar 

  • American Railway Engineering Association. 1975. Manual for Railway Engineering.

    Google Scholar 

  • Banks, R. L., and Associates. 1973. Preliminary estimates of the cost of moving coal by unit train from Alberta mines to Ontario destinations or to ports for further movement by water. Executive summary to unpublished report prepared for Ontario Hydro.

    Google Scholar 

  • Boyd, B. 1973. Coal resources of the Yukon Territory — A review. Department of Indian and Northern Affairs, Ottawa.

    Google Scholar 

  • Campbell, T. C. 1975. Transporting western Canadian coal: Unit train or slurry pipeline? The Logistics and Transportation Review 11.

    Google Scholar 

  • Canadian Arctic Gas Study Limited. 1973. Alternative modes study, volume VI — H.V.D.C. transmission.

    Google Scholar 

  • Canadian Mining Journal. 1977. Vol. 98.

    Google Scholar 

  • Canadian National Railways. 1977. Keeping Track. June.

    Google Scholar 

  • Canadian National Railways. 1976a. Timetable no. 1. Mountain Region, 25 April.

    Google Scholar 

  • Canadian National Railways. 1976b. Timetable no. 30. Prairie Region, 25 April.

    Google Scholar 

  • Canadian National Railways. 1976c. Timetable no. 31. Prairie Region, 25 April.

    Google Scholar 

  • Canadian National Railways. 1976d. Timetable no. 71. Prairie Region, 17 October.

    Google Scholar 

  • Canadian National Railways. 1976e. Timetable no. 68. Prairie Region, 31 October.

    Google Scholar 

  • Canadian National Railways. 1976f. Timetable no. 78. Prairie Region, 31 October.

    Google Scholar 

  • Canadian National Railways. 1976g. Traffic density report — Pacific region.

    Google Scholar 

  • Canadian National Railways. 1976h. Traffic density report — Mountain region.

    Google Scholar 

  • Canadian Petroleum. 1971. Vol. 12.

    Google Scholar 

  • Canadian Transport Commission. Commodity flow analysis, Canadian carload all- rail traffic. Traffic and Tariffs Branch, Reference Papers 1.0 (1968-72), 1.1 (1973), and 1. 2 (1974).

    Google Scholar 

  • Canadian Transport Commission. 1977. Transport review, trends and selected issues.

    Google Scholar 

  • Canadian Wheat Board. Annual report, 1975-76.

    Google Scholar 

  • Cooke, J. L. 1973. Coal transportation on the Great Lakes. Ontario Hydro.

    Google Scholar 

  • Cooper, H. E. H., Jr. 1975. Environmental and energy aspects of coal energy trans-shipment through railroad electrification. University of Texas.

    Google Scholar 

  • Corneil, E. R., et al. 1976. Canadian railway electrification study, phase I, vols. I and II. Canadian Institute of Guided Ground Transport, CIGGT Report No. 76 - 2.

    Google Scholar 

  • CP News Summary. 1977. Vol. 33, Nos. 4, 9, 15, 17, 19, 20, 21, 22, 23, 24, 27 and 28; 1976. Vol. 32, Nos. 11, 35, 37 and 39; 1975. Vol. 31, Nos. 29, 31, 38, 44, 45, 46.

    Google Scholar 

  • CP Rail. 1976a. Timetable no. 87. Pacific Region, 25 April.

    Google Scholar 

  • CP Rail. 1976b. Timetable no. 97. Pacific Region, 25 April.

    Google Scholar 

  • Danzig, J. D.; Rugg, J. A.; Williams, J. H.; and Hay, W. W. 1976. Procedures for analyzing the economic costs of railroad roadway for pricing purposes, volume 1: Procedures.

    Google Scholar 

  • Darling, H. J., and Shaw, G. C. 1975. The Canadian lake shipping industry today. Research Report No. 29, New York University/University of Toronto Joint Program in Transportation.

    Google Scholar 

  • Drolet, J. P. 1976. The demand and limitations governing the mineral production of western Canada to 1990.

    Google Scholar 

  • Energy, Mines and Resources Canada. 1976a. Electric power in Canada, 1975. Energy Policy Sector, Ottawa.

    Google Scholar 

  • Energy, Mines and Resources Canada. 1973a (two volumes). An energy policy for Canada, Phase I. Ottawa.

    Google Scholar 

  • Energy, Mines and Resources Canada. 1976b. An energy strategy for Canada — Policies for self-reliance. Ottawa.

    Google Scholar 

  • Energy, Mines and Resources Canada. 1975a. Mineral area planning study. Mineral Development Sector, Ottawa.

    Google Scholar 

  • Energy, Mines and Resources Canada. 1976c. Mineral industry trends and economic opportunities. Mineral Policy Series Paper MR-158, Ottawa.

    Google Scholar 

  • Energy, Mines and Resources Canada. 1973b. Proceedings, 25th Canadian conference on coal.

    Google Scholar 

  • Energy, Mines and Resources Canada. 1974. Proceedings, 26th Canadian conference on coal.

    Google Scholar 

  • Energy, Mines and Resources Canada. 1975b. Proceedings, 27th Canadian conference on coal.

    Google Scholar 

  • Energy, Mines and Resources Canada. 1976d. Proceedings, 28th Canadian conference on coal.

    Google Scholar 

  • Engineering Journal. May/June 1975.

    Google Scholar 

  • Erdmann, R. W., and Gorbet, F. W. 1977. Energy demand projections for Canada: An integrated approach. Energy, Mines and Resources Canada.

    Google Scholar 

  • Geological Survey of Canada. 1957. Geology and economic minerals of Canada. Ottawa.

    Google Scholar 

  • Geological Survey of Canada. 1967. Geology and economic minerals of Canada, part B. Ottawa.

    Google Scholar 

  • Globe and Mail, 25 May 1976, 9 March 1977, 15 April 1976, 21 July 1977, 29 January 1976, 18 July 1975, 27 July 1976.

    Google Scholar 

  • Government of Canada. 1977. Grain and rail in western Canada, vol. 1. Report of the Grain Handling and Transportation Commission (Hall Commission).

    Google Scholar 

  • Hedlin, Menzies and Associates. 1969. The Canadian northwest transportation study, vol. I — The mineral potential, vol. III — A consideration of transportation factors.

    Google Scholar 

  • Kates, Peat, Marwick & Co. 1972. Grain transportation in eastern Canada, volumes I and II.

    Google Scholar 

  • Lake, R. W. 1975. An economic decision model for mineral development in Canada. Unpublished Ph.D. thesis, Department of Mining Engineering, Queen’s University at Kingston.

    Google Scholar 

  • Lake, R. W., et al. 1975. Forecast of demand for transportation systems in a Mackenzie Valley corridor. Unpublished report, prepared for the Canadian Artie Resources Commission.

    Google Scholar 

  • Lake, R. W., et al. 1977a. A model to evaluate modal alternatives on the basis of complete transportation tariff schedules. Canadian Transport Research Forum, St. Andrews, N.B.

    Google Scholar 

  • Lake, R. W., et al. 1977b. Progress report: Preliminary exploration and project definition stage, railway costing order review.

    Google Scholar 

  • Macdonald, J. A., et al. 1976. A conceptual basis for estimating rail line productivity and capacity. Unpublished CIGGT Report No. 76 - 4.

    Google Scholar 

  • Martin, P. S., and Eng P., Dames and Moore Ltd., Toronto. 1977. Reported in the Toronto Globe and Mail, 9 March.

    Google Scholar 

  • Maughan, R. G.; Smith, J. S.; Lake, R. W.; et al. 1975. Arctic oil and gas by rail: Volume one, introduction and summary; Volume three, railway operations and maintenance; Volume four, petroleum products processing and handling; Volume five, relevant considerations; Volume six, cost data and analysis.

    Google Scholar 

  • McLaughlin, G. M. 1974. Economic comparison of rail and slurry pipeline for the domestic movement of western Canadian coal to central Canadian markets. Bulk Freight Division, Canadian Transport Commission, Report No. 123.

    Google Scholar 

  • McLaughlin, G. M. 1972. Applications, technology and economics of slurry pipelines. Logistics and Transportation Review 8.

    Google Scholar 

  • Mineral Industry Research Laboratory. 1973. Transportation economics of coal resources of northern slope coal fields, Alaska. University of Alaska.

    Google Scholar 

  • Modern Railroads. Vol. 32, nos. 2 and 6.

    Google Scholar 

  • National Energy Board. 1969. Energy supply and demand in Canada, 1966-1990. Ottawa.

    Google Scholar 

  • National Transportation Act, 1966-67. C.69s.2, Section 3, “National Transportation Policy,” p. 5474, Hansard.

    Google Scholar 

  • Neter, J., and Wasserman, W. 1974. Applied linear statistical models. Homewood, III.: Richard D. Irwin, Inc.

    Google Scholar 

  • Ontario Hydro. 1976. Memorandum to the royal commission on electric power planning with respect to public information hearings: Fuels supply, load forecasting, generation-technical, generation-environmental, transmission-technical, transmission-environmental, and system interconnections.

    Google Scholar 

  • Ontario Hydro. 1975. Sulphur content in relation to fuels supply program, 1970 - 1990. Fuel Resources Planning, Fuels Division, Ontario Hydro.

    Google Scholar 

  • Pemel, F. W. 1977. Personal communication.

    Google Scholar 

  • Princeton University. 1974. Design and analysis of railroad track. Rail Transportation Series, Office of Professional Educaton, School of Engineering and Applied Science Transportation Program.

    Google Scholar 

  • Progressive Railroading. 1977. Vol. 20, nos. 3, 4, 5, 6 and 7; 1976. Vol. 19, nos. 4 and 6; 1975. Vol. 18, no. 9; 1974. Vol. 17, no. 1.

    Google Scholar 

  • Rail Systems Research Associates/L. E. Peabody and Associates, Inc. 1976. Analysis of track and roadbed maintenance cost variability.

    Google Scholar 

  • Railway Advisory Committee, Transport Canada Research and Development Center. 1976. Railway capacity tradeoff study.

    Google Scholar 

  • Railway Age. 1976. Vol. 177, nos. 10 and 12; 1975. Vol. 176, nos. 9 and 22.

    Google Scholar 

  • Railway Gazette International. 1971. Vol. 127, no. 2.

    Google Scholar 

  • Railway Management Review. 1973. Vol. 73, no. 3.

    Google Scholar 

  • Railway Track Structures. 1977. Vol. 73, nos. 2, 3 and 6.

    Google Scholar 

  • Roney, M. D. 1975. Multivariate functional relationships in railway right of way costing. Unpublished M.Sc. thesis, Department of Civil Engineering, Queen’s University at Kingston, Ontario.

    Google Scholar 

  • Schriever, J. 1972. Transportation: The evolution of Canada’s networks. Toronto: McGraw-Hill/Ryerson/MacLean-Hunter.

    Google Scholar 

  • Shelpac Research and Development, Limited. 1975. A coal pipeline system, western Canada to Ontario.

    Google Scholar 

  • Sillcox, L. K. 1977. Car-time cost — The dilemma of railway dead-time, idle investment and unequal treatment by Congress. Presented to Department of Civil Engineering, University of Illinois, Urbana, Illinois, April 22.

    Google Scholar 

  • Statistics Canada. 1976. Railway freight traffic. 52-002, Quarters 1 - 4.

    Google Scholar 

  • Statistics Canada. 1974-1975. Railway transport, part V — Freight carried by principal commodity classes. 52-211.

    Google Scholar 

  • Time Magazine, April 4, 1977.

    Google Scholar 

  • Transport Canada. 1975. An interim report on freight transportation in Canada. Ottawa.

    Google Scholar 

  • Transport Canada Research and Development Center. Transportation development news. 1977: January/February, March/April, May/June; 1976: January/February, March/April, May/June, July/August, September/October, November/December; 1975: September/October; 1974: June; 1973: January, April.

    Google Scholar 

  • Transportation Research Forum. 1973. Proceedings, 14th annual meeting. Oxford, Indiana: R. B. Cross and Co.

    Google Scholar 

  • Transportation Research Forum. 1974. Proceedings, 15th annual meeting. Oxford, Indiana: R. B. Cross and Co.

    Google Scholar 

  • Transportation Research Forum. 1975. Proceedings, 16th annual meeting. Oxford, Indiana: R. B. Cross and Co.

    Google Scholar 

  • Transportation Research Forum. 1976. Proceedings, 17th annual meeting. Oxford, Indiana: R. B. Cross and Co.

    Google Scholar 

  • Vanderlund, W. A. 1974. Solids pipelining. Speech to Canadian Railway Club, Montreal, Quebec.

    Google Scholar 

  • Wallace, I. 1977. The transportation Impact of the Canadian mining industry. Center for Resource Studies, Queen’s University, Kingston, Ontario.

    Google Scholar 

  • Weinberg, E., and McLaughlin, G. M. 1971. Slurry pipeline research information circular no. 1. Canadian Transport Commission, Report 13.

    Google Scholar 

Download references

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 1980 Martinus Nijhoff Publishing

About this chapter

Cite this chapter

Boon, C.J. (1980). Costing the Movement of Western Canadian Coal to Thunder Bay: An Incremental Approach. In: Ziemba, W.T., Schwartz, S.L., Koenigsberg, E. (eds) Energy Policy Modeling: United States and Canadian Experiences. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-8748-7_19

Download citation

  • DOI: https://doi.org/10.1007/978-94-009-8748-7_19

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-94-009-8750-0

  • Online ISBN: 978-94-009-8748-7

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics