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Economics of coal log pipeline for transporting coal

  • Economics


This economic study was conducted to compare the cost of transporting coal from mines to power plants by coal log pipeline with other modes of transportation including truck, rail and coal slurry pipeline. Unit cost is defined here as the cost of transporting a metric ton of coal for any prescribed distance in $/T (dollars per metric ton), and it includes not only capital and operational costs, but also a built-in profit for the investor. The unit cost of coal log pipeline can be compared with the current tariffs for coal transportation charged by railroads, trucks and other competing modes to determine whether it is economically competitive in a given situation. The study was conducted for different transportation distances and throughputs. Based on this comparison, the conditions are established under which coal log pipeline is more economical than slurry pipeline, truck and train.

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