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An Economic Analysis Of Unit-Train Facility Investment

Author

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  • Kenkel, Philip L.
  • Henneberry, Shida Rastegari
  • Agustini, Haerani N.

Abstract

Country elevators competed chiefly through increased efficiency in grain handling and transportation. The development by the railroads of more favorable rates for multi-car shipments (unit train) has led grain cooperatives and other agribusiness firms to invest in high speed rail load out facilities. In this study the feasibility of an investment in a unit-train load out facility is analyzed. The impact of grain through put volume, unit rate transportation savings, discount rates, and grain-cleaning costs is also determined.

Suggested Citation

  • Kenkel, Philip L. & Henneberry, Shida Rastegari & Agustini, Haerani N., 2004. "An Economic Analysis Of Unit-Train Facility Investment," 2004 Annual Meeting, February 14-18, 2004, Tulsa, Oklahoma 34748, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saeaft:34748
    DOI: 10.22004/ag.econ.34748
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    Cited by:

    1. Anton Bekkerman & Mykel Taylor, 2020. "The Role of Spatial Density and Technological Investment on Optimal Pricing Strategies in the Grain Handling Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(1), pages 27-58, August.
    2. Hyland, Michael F. & Mahmassani, Hani S. & Bou Mjahed, Lama, 2016. "Analytical models of rail transportation service in the grain supply chain: Deconstructing the operational and economic advantages of shuttle train service," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 294-315.
    3. Dmytro KOZACHENKO & Roman VERNIGORA & Volodymyr BALANOV & Nazar SANNYTSKYY & Nikolay BEREZOVY & Tetiana BOLVANOVSKA, 2016. "Improving The Methods Of Estimation Of The Unit Train Effectiveness," Transport Problems, Silesian University of Technology, Faculty of Transport, vol. 11(3), pages 91-101, September.
    4. Andrey BORODIN & Vitaly PANIN, 2018. "The Distribution Of Marshalling Work Of Industrial And Mainline Rail Transport," Transport Problems, Silesian University of Technology, Faculty of Transport, vol. 13(4), pages 37-46, December.
    5. Prater, Marvin & Sparger, Adam, 2013. "Grain and Oilseed Shipment Sizes and Distance Hauled by Rail," Research Reports 161208, United States Department of Agriculture, Agricultural Marketing Service, Transportation and Marketing Program.

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    Keywords

    Public Economics;

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