Barges, Grain Transportation and American Waterways

Farmer Jon
Bins.ai
Published in
4 min readMar 4, 2017
Barge Captain Navigating the Mississippi River. (Photo Courtesy of National Geographic)

Barges are an important part of how the United States transports commodities within its borders. Both from producer to port and from manufacturer to consumer. Here’s some insight into how the system works.

The United States of America exports the majority of its produced grain. Since most of that production occurs far inland in states such as North Dakota, Kansas and Montana, farmers and commodity companies need a way to get the grain from the fields to the ports. This is where the waterway network comes into play.

Yes, there is a heavy reliance on trains and trucking, yet barges are becoming more prominent as operators become more adapt at navigating the American river system. A typical 15-barge tow has the same dry cargo capacity as 1,050 Semi Tractor-Trailers. The only drawback to the system is that these barges are limited to the rivers that are navigable; there are many of those waterways that lead to some of the most productive states. The Mississippi River and its associated connections make up the majority of navigable waters. A lot of water considering those waters stretch all the way to the Great Lakes.

The River System

North Dakota, the 2nd most productive wheat state, only has to travel one state over before it is connected to the international water ports of New Orleans, Louisiana and Corpus Christi, Texas as well as the national ports of Chicago and Pittsburgh. Once grain reaches the waterway network it is connected to the rest of the world through the most efficient transportation network. South Dakota has a link to this network, albeit through the southern tip. The Eastern part of the United States is covered with this network while the Central and Western United States has little to no navigable waterways. The East has a wet climate and flat terrain; the West is the opposite. It is often dry, cold and the mountainous terrain makes almost all rivers too treacherous for a tow boat to navigate with barges.

Despite being so efficient, these waterways are being neglected with many of the locks that control boat traffic being 60 years old, despite their designers expecting them to last 50 years. The Army Corp of Engineers is doing its best to maintain these locks but a lack of funding is stifling their efforts. The federal government simply has not done its part to help companies maintain these locks. The Port of New Orleans spent $40 million more on its port alone than the government spent on 25 ports. The ports are frustrated because the government is not upholding its end of the bargain in maintaining these vital economic resources.

How Barges get moved

Barges do not have engines. They are floating platforms that carry a variety of commodities and consumer goods; wheat, barley, corn, petroleum etc. Barge use is to purely maximize carrying capacity. Barges are pushed or pulled by a Tug/Tow boat much like a larger ship is led into harbor.

Tug boats are used because it reduces the amount of fuel and energy required to move every ton of material. There is no point in having multiple small engines if you can have one big one; it is more fuel and cost efficient to have one tug boat pulling multiple loads as opposed to having every load or barge power themselves. This also helps companies transport more grain or materials without adding burdensome logistical challenges. As opposed to having to organize multiple ships, they can organize one tow boat with 15 (the most common amount) barges.

Barges are interesting because they are not as efficient than other types of transport until a certain point. A tow boat transporting one barge is less efficient than a train. A 15 barge Tow boat is 2x more efficient than a train; to speak nothing of trucks (the most inefficient method, besides horse). The only downside to using barges is the fact that you are restricted to waterways and have to use existing rivers. It is cost prohibitive to create canals, similar to the Panama Canal, within the continental United States. Countries such as the Netherlands have made significant investments into their maritime industry and the transportation system. But they are a flat country that lies below the sea level. This makes these investments cheaper and easier. It is nearly impossible to create a barge suitable river within the Rocky Mountains, or even create one large enough to make it all the way to North Dakota or Montana. These states are so far inland that they are forced to use trains or trucks to get their goods to the river systems. From there the grain is poured into Grain Elevators and often loaded onto barges to be transported to some of the major ports and transported all over the world.

Barges give companies more profits allowing them to employ more people as well as allowing them to cheaply access the international markets. Commodities grown in Montana, North Dakota, Kansas, and many other inland states can be cheaply transported to large ports, and from there shipped to other countries. Without barges, selling to countries such as China would be cost prohibitive, as shipping would simply cost too much. Luckily there are systems such as the Panama Canal and the extensive waterway network within the United States that are efficient enough to make international grain trade profitable.

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http://www.americanwaterways.com/media/fact-sheets/facts-industry+

http://www.corpsnets.us/docs/IndOrgStudyInlandWaterways/BargeSectorIndusOrg.pdf

https://en.wikipedia.org/wiki/Inland_waterways_of_the_United_States

https://upload.wikimedia.org/wikipedia/en/f/f6/Inland_navigation_system.png

https://www.marad.dot.gov/wp-content/uploads/pdf/water_works_REV.pdf

https://www.statista.com/statistics/190376/top-us-states-in-wheat-production/

https://images.duckduckgo.com/iu/?u=http%3A%2F%2Fwww.jurisdictions.steamforum.com%2Fimages%2Fstates_imgmap.jpg&f=1

http://www.economist.com/news/united-states/21571167-underinvestment-ports-and-inland-waterways-imperils-american-competitiveness-crying-out

http://www.iwr.usace.army.mil/Portals/70/docs/portswaterways/Listening_Sessions_Information_Brief_Industry.pdf

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Farmer Jon
Bins.ai
Editor for

Hi, I’m Farmer Jon. I work at Bins.ai and it is my job to spot the most profitable grain prices for farmers.