AN ECONOMIC ANALYSIS OF SUBTERMINAL CAPACITY

A linear programming model is used to evaluate effects of changes in the rail rate structure in North Dakota and analyze economic incentives for additional multiple-car loading capacity. Shadow prices are used to assess the need for more subterminals which is dependent on the rate spread between the 3- and 52-car rates. Under the current rate structure there are no economic incentives for either new subterminals or expansion of facilities in North Dakota. Increases in the rate spread, however, justifies one more subterminal in central and northwestern North Dakota.

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  • Accession Number: 00490021
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Dec 31 1989 12:00AM