Economics

Economics

Logistics

Barge Transportation is cheapest and most efficient when cargo points of origin and delivery are next to a navigable waterway. This eliminates the need for transhipment of cargoes inter-modally, and keeps the costs down. Having said that, there has always been some movement of transhipment cargoes, and inquiries are on the increase, as companies try to find an alternative to the ever-increasing problem of congested trunk roads and motorways.

Costs.

The costs involved are not complicated:

Freight charge (to the Barge operator for carrying the cargo): So much per tonne or cubic metre.

Waterways charges to Navigation authority for using the river or canal. (£/tonne)

Grants.

Some grants are available to assist with setting up a new project, and to provide staff.

Freight Facilities Grants:

These are available from the Department of Transport and the Regions, and the aim is to provide enough money to make the costs of sending the cargo by water no dearer than going by road. A calculation is carried out to establish how many tonne/miles are taken off the road network, and this is converted into a grant figure. The calculation is slanted so that urban single carriageway road savings attract a higher rate of grant than non-urban ones and motorways. As much as 60% of capital costs can be covered. Details are available from the DETR web-site. See Stop Press in News

The grants are available for capital costs only, that is barges, cranes, docks, wharves, jetties, access roads, handling equipment, consultation services and so on. Assistance with day to day operating costs is not available.

Local Authority Grants.

Some local authorities provide grants for employing long term unemployed people, and many will act as agents for obtaining E.E.C. urban regeneration funds.