ENERGY AND TRANSPORT IN AN ISLAND CONTINENT

Although Australia is almost self-sufficient in petroleum products, it is expected that internal prices will move towards long-run world prices. However, fuel price will only have a moderate effect on the competitive position of long distance road and rail haulage, despite the relatively high price elasticities. Shipping costs have been strongly influenced by a rise of several hundred per cent in the cost of bunkering fuel. This change lowers the optimum speed of ships, counteracting the effect of very high ship construction costs. Because the freight rate contributes A large proportion of the landed cost of a bulk commodity such as iron ore and because fuel contributes a relatively high proportion of bulk carrier costs, fuel price increases may tend to favour Australia as the nearest major supplier to Japan. Competition between coastal shipping and land transport is significant. Because percentage increases in bunker fuel price have been much greater than in locomotive diesel fuel, the energy shortage will tend to divert traffic from coastal shipping to rail, even though the latter is the More energy intensive mode. /Author/TRRL/

  • Corporate Authors:

    Pergamon Press, Incorporated

    Maxwell House, Fairview Park
    Elmsford, NY  United States  10523
  • Authors:
    • Taplin, JHE
  • Publication Date: 1974-10

Media Info

  • Features: References; Tables;
  • Pagination: p. 259-265
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00095865
  • Record Type: Publication
  • Source Agency: Transport and Road Research Laboratory (TRRL)
  • Files: ITRD, TRIS
  • Created Date: Jul 2 1975 12:00AM