Inland Barge Transport

The US inland barge transport industry includes about 350 companies with combined annual revenue of more than $2 billion. Major companies include independents, such as American Commercial Lines, Ingram Barge, and Kirby Inland Marine, and captive subsidiaries of companies that transport commodities, such as American River Transportation (owned by Archer Daniels Midland) and MEMCO Barge (owned by American Electric Power). The industry is highly concentrated: the largest 50 companies have more than 85 percent of industry revenue.

COMPETITIVE LANDSCAPE

Demand is driven primarily by the level of agricultural exports, petroleum refining, coal usage, and chemical shipments. Large companies have advantages in handling a broad range of cargo types, along with economies of scale in purchasing and marketing. Small companies compete by specializing in particular cargo types or services, subcontracting to larger companies, and offering responsive customer service. Average annual revenue per employee is about $200,000 for small companies and over $300,000 for large companies.

Inland barge companies compete with other methods for transporting bulk materials and liquids, including trucks, railroads, and pipelines.

PRODUCTS, OPERATIONS & TECHNOLOGY

Inland barge transport services include freight transportation (92 percent of industry revenue); towing and tugboat services (6 percent); and other related services. Freight transportation services consist of dry cargo (such as grain, coal, steel, fertilizers, and aggregates) and liquid cargo (refined petroleum products, petrochemicals, black oils, and agricultural chemicals). Dry cargo is the dominate type of freight shipped by volume and dry ...