Commodities Route Cost Analysis

Commodities Route Cost Analysis

Mercator International was engaged by a large exporters’ association to analyze trade flows of agricultural commodities through and using the Mississippi River System, to define alternative routing costs for cargoes in the event of a lock and dam failure. The analysis defined what users of the river system would be willing to pay for private financing of specific lock and dam infrastructure improvements. Route cost models were developed for commodities traveling by rail, barge, and/or truck between origins and destinations. Volumes had to be analyzed on a lock-by-lock basis to understand the dynamics of cargo flows through the system.