Feasibility of a Container-on-Barge Network Along the Texas Gulf Coast

Abstract

Freight volumes in Texas and throughout the world have been increasing as a result of growing national economies and international trade. The use of intermodal containers to transport this freight presents the opportunity for a more efficient transportation system. Using barges to carry containers could diminish roadway congestion, reduce fuel consumption and emissions, increase shipper options, and expand the reach of smaller ports. Although a number of benefits could be realized from container-on-barge (COB) service, the feasibility of a COB network along the Texas Gulf Coast remains less clear. At present, the likelihood of a COB network is slight because the hindrances are daunting: the lack of infrastructure and equipment; inadequate distribution of population along the Texas Gulf Coast; only a few navigable inland waterways, with none serving a major population center outside Houston; transport times that are incompatible with many manufacturers’ needs; a history of failed attempts for COB companies; intense competition from railways; unclear costs for serving ports without container infrastructure; and a limited number of participants due to restrictions of the Jones Act. Opportunities may exist, however, for a COB operation to exploit the substantial amount of industrial activity along the Texas Gulf Coast and the inefficiencies in the existing supply chain. Growing U.S. trade with Mexico might also offer some possibilities for COB services, but the recent trend has been toward Texas receiving a diminishing share of the value and weight of containerized commodities being moved from Mexico.