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[quote user="Datafever"][quote user="futuremodal"] The problem is the allegation made by Mr. White that, without subsidies, barging would be more expensive than railroading.  If you take away all forms of subsidies from both modes, the fact remains that barging is a lower operating cost method of transit, and that usually results in lower costs to the end users.[/quote]I would presume that barges have to pays fees for each lock that they traverse, which (helps) pay for the upkeep of the lock.  To what extent do they contribute to dredging operations?I will have to admit that I have no clue as to what a barge's main operating costs stem from.  They pay for diesel, labor, upkeep of the barge, lock fees.  What else?  And of those costs, which tend to predominate?Lacking any good information, I would agree with you that barges have a lower operating cost than railroads, subsidies notwithstanding. [/quote]Barge companies pay into a Waterway Trust Fund, from which the federal government gets another deficit buffer.  Currently, barge companies pay more into the fund than what they are getting out if it.One problem you have in allocating "true" costs of barging is how to allocate the cost of maintaining water levels.  Higher water levels favor barging, but also favor electricity generation.  And since electricity generation is a profit source, can we allocate those profits to the general operation of dams and the reservoirs?Also keep in mind that waterways are open access, not only supporting competing barge companies but also private and recreational users.  Do you charge the same fee to the two fishermen in the Duckworth inboard jet boat as you do the commercial barge operator?  Both take the same amount of water to raise and lower the locks.  And that slack water that supports modern day barging also supports major recreational activities.Thus, you also have that intangible of a "public good" that needs to be accounted for when determining costs of barging, something we don't have with US railroads outside the NEC.Keep in mind also that barging is only good for bulk goods at slow speeds, and can't compete for that time sensitive traffic that railroads can (in theory) monopolize.With the potential profit generated by electricity production, in theory barges should get by scott free, since energy generation covers more than the total costs of maintaining dams, locks, and waterways.  That is, if the electricity were being sold at market prices!
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