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Rail Rates And The Availability Of Water Transportation: The Missouri Valley Region

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  • Mark L. Burton

    (Lafayette College)

Abstract

Prior to deregulation, there was no clear relationship between the availability of water transportation and railroad rates. The Interstate Commerce Commission established maximum rates, so that railroads could not readily respond to changes in demand conditions. Any change in the management of navigable waterways stood only to affect the direct users-the shippers and barge operators. However, in the wake of the Staggers Rail Act, rail rates are more sensitive to both intramodal and intennodal competition so that any interruption or improvement in the availability of barge transport may now affect rail customers as well. Using the ICC's annual Carload Waybill Sample, this study examines railroad rates in the Missouri River Basin. The results point to water-compelled railroad rates for the movement of some commodities-in particular farm products. However, other bulk commodities appear to move under railroad rates that are independent from the influence of barge transportation.

Suggested Citation

  • Mark L. Burton, 1995. "Rail Rates And The Availability Of Water Transportation: The Missouri Valley Region," The Review of Regional Studies, Southern Regional Science Association, vol. 25(1), pages 79-95, Summer.
    • Handle: RePEc:rre:publsh:v:25:y:1995:i:1:p:79-95
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    References listed on IDEAS

    as
    1. Bresnahan, Timothy F & Reiss, Peter C, 1991. "Entry and Competition in Concentrated Markets," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 977-1009, October.
    2. Braeutigam, Ronald R & Daughety, Andrew F & Turnquist, Mark A, 1984. "A Firm Specific Analysis of Economies of Density in the U.S. Railroad Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 33(1), pages 3-20, September.
    3. Wilson, Wesley W, 1994. "Market-Specific Effects of Rail Deregulation," Journal of Industrial Economics, Wiley Blackwell, vol. 42(1), pages 1-22, March.
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    Cited by:

    1. Christa D. Court & Elham Erfanian, 2019. "A Role for Regional Science in Analyzing Water Issues," Working Papers Research Paper 2019-04, Regional Research Institute, West Virginia University.
    2. Brown, Dennis M. & Flake, Oliver L., 1999. "Rural Transportation: An Annotated Bibliography," Miscellaneous Publications 323881, United States Department of Agriculture, Economic Research Service.

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