# Presentation: 337058

## Barge and Towboat Operating Costs

- Marianne Matheny-Katz
- IWR

- March 2000

- Background
- Corps of Engineers Headquarters has issued shallow draft operating cost guidance 12 times since 1979.  The most recent update was issued in April 2002
- The most recent Guidance is EGM-00-5 and is available at the Corps of Engineers Website:  _[http://www.usace.army.mil/inet/functions/cw/cecwp/cecwp_temp/egm051.pdf](http://www.usace.army.mil/inet/functions/cw/cecwp/cecwp_temp/egm051.pdf)_
- 									(continued)

- March 2000

_**Purpose of Guidance**_
- Guidance provides cost information for vessels operating on the Inland Waterway System, including the Mississippi river and its tributaries – Ohio, Illinois, Monongahela, Kanawha and the gulf Intracoastal Waterway
- Vessel operating costs are used by the Corps of Engineers Districts in determining economic benefits associated with waterways improvements

- March 2000

_**What Information Is Presented?**_
- _Towboats_ -  Cost information is presented for 13 sizes of towboats, ranging from 400-600 horsepower (hp) up to 10,000 hp

- March 2000

_**What Information Is Presented?**_
- _Barges_ - Cost Information is presented for 27 different types of barges across 8 classes of barges.  These include:  open hopper, covers hopper, deck, self-loading, tank, pressurized tank, steel tank, and chemical tank

- March 2000

**Who Uses the Cost Information?**
- Primary Customer - Corps District Offices
- Other Federal Agencies - Dept. of Transportation, Tennessee Valley Authority
- Reebie Associates - uses the cost information as an input to their Barge Costing Model
- Private Sector Forms, consulting firms

- March 2000

_**Recent History of Cost Updates**_
- Last two iterations were prepared in 1996/97 and 1999.  The results were published in June 1997 and April 2000, respectively
- Cost information developed by contractors to IWR
-  1996/97 - Jack Faucett Associates
- 1999 - PMCL,  Inc.

- March 2000

_**How are the Cost Estimates Developed?**_
- Step 1 - Contractor meets with towboat and barge firms
- Step 2 - Contractor develops cost equations
- Step 3 - Contractor submits written report to IWR
- Step 4 - IWR reviews report, sends report out to field  for
-              review
- Step 5 - After all comments are reviewed and
-              incorporated, IWR sends Guidance to Headquarters
-              for final distribution to the field.

- March 2000

_**What Information is provided in the economic Guidance**_
- _Barges_
- Replacement Costs
- Operating Costs
- Administrative costs
- Port costs

- March 2000

_**What Information is provided in the economic Guidance**_
- _Towboats_
- Replacement Costs
- Total Operating Costs
- Crew Related Costs (such as wages, fringe benefits, food, transportation)

- March 2000

- _Towboats_
- Boat Related costs (such as maintenance and repair, supplies, insurance, other)
- Administrative costs
- Fuel consumption and fuel costs

- March 2000

_**Development of Cost Equations**_
_**Towboats**_
- Total Operating costs: formula for calculating total towboat operating costs incorporates horsepower of the vessel
***Operating costs = 85.17918 * Horsepower ^ 0.434078***

- March 2000

_**Development of Cost Equations**_
_**Towboats**_
- Total Operating costs are comprised of crew costs and boat related costs
***Crew Costs = 59.55987 * Horsepower ^ 0.43332***
***Boat costs = Total Operatng Costs (-)  Crew costs***

- March 2000

_**Development of Cost Equations**_
_**Towboats**_
- Replacement cost - formula for calculating replacement cost incorporates horsepower of vessel
***Replacement costs = 115,160.513 + 1,203.75615 * Horsepower * Horsepower ^ 0.434078***
***Replacement cost converted to daily cost over 20 year horizon at the current Federal discount rate (6 1/8%) and 350 operating days***

- March 2000

_**Barge Replacement Costs**_
- Replacement costs are based on formulas developed during the 1997 update of corps guidance which incorporate the amount/cost of labor hours and the amount/cost of steel required to construct a vessel
- For some vessels I.e.self unloading cement barges, asphalt and ammonia barges - the replacement costs reflect the information received during the data collection phase of the update

- March 2000

_**Fuel Consumption and Fuel Data**_
**Fuel consumption equations are based on the size of the vessel **
**For vessels less than or equal to 6,000 horsepower :  ****Fuel consumption = 0.43666 * Horsepower ^ 1.01279**
- For vessels greater than 6,000 hp : Fuel consumption = 0.1489 * Horsepower ^ 1.31139

- March 2000

_**Barge Operating Costs**_
**Maintenance and Repair**
**Supplies**
**Insurance**
**Other**
_**Administrative costs**_
_**Port Costs**_

- March 2000

_**Items Not Included in the Barge and Towboat (Shallow Draft) Vessel Operating Costs Economic Guidance**_
**Information on Ocean Going Barges**
**Information on operating costs for vessels that operate in other area, such as the ****Great Lakes and the Columbia River**

- March 2000

- Other Items for discussion
- Questions and answers

- March 2000