TRANSPORTATION PRACTICE

Overview

JD Energy has developed a Transportation Practice in the course of fully supporting our assessment of the outlook for coal demand and pricing.  Through this service, we provide forecasts of the following means of transportation:  rail, barge, truck and conveyor.

Expertise

The various modes of transportation analyzed by JD Energy differ significantly in their respective degrees of competition and rate-to-cost ratios.  For each mode, we provide an assessment of:

            •  Component Cost of Operation

            •  Productivity Outlook

            •  Market Strategy

            •  Investment Practices

            •  Rate Outlook

            •  Alternative Cases

Publications

Transportation Rate Forecasts -  This publication provides annual rate forecasts for rail, barge, and truck  shipments.  In approximately 20 pages of text, JD Energy outlines its rationale and includes substantial data to support our projections. 

Contract Escalators – This annual publication contains forecasts of approximately 100 escalators commonly found in coal and rail contracts.  Beyond the contractual indices pertinent to rail shipments (e.g., RCAF-U  and RCAF-A), we include many of the items relating to the operational side of transportation analysis (e.g., capital cost of trucks, waterway costs, railway wages, etc.).

Specific Transportation Rate Forecasts – As part of its coal forecasting effort, JD Energy identifies point-to-point rates from mine to power plant for all modes of transportation.