Why can water transport be less expensive than road or rail transport for some bulk cargoes?

Water transport is often more economical than road or rail for bulk cargoes—such as minerals, timber, grains, coal, and ore—primarily because it focuses on low operating costs rather than speed.12

The cost-efficiency of inland waterways is driven by several key factors:

• Economies of Scale: Modern towboats can haul massive quantities of goods, with some capable of pulling up to 50 barges carrying a total of 80,000 tons. Each individual barge can hold up to 1,500 tons of cargo.13
• Lower Operating Expenses: On many international rivers, there are no navigational charges, and even where tolls exist, the total operating costs remain significantly lower than the expenses associated with other transport modes.1
• Operational Efficiency: Technologies such as midstream refueling and the ability to attach or detach barges while a tow is in motion allow for around-the-clock operation. Additionally, automatic loaders at ports minimize turnaround time.1

While water transport is often circuitous and slower than other methods, it remains the most cost-effective choice for commodities where the time factor is not of primary importance.13