Is coal log pipeline (CLP) cost effective for transporting coal?
A sophisticated and detailed cost analysis of coal log pipeline has been conducted at CPRC. The analysis calculates the anticipated price or tariff for transporting coal in dollars per ton for pipelines of various lengths. The tariff was determined from the cost plus a 12.5% after-tax return. This tariff was determined for CLP of various diameters (from 6″ to 20″) and lengths (from 10 miles to 2,000 miles), and plotted as a function of length and diameter (throughput). The results are then compared with the anticipated tariffs for slurry pipelines, trucks and unit trains. The results show that under ordinary conditions, large-diameter CLPs are more cost-effective than trucks for distances over 30 miles, approximately, and more cost-effective than unit trains for distances over 100 miles, approximately. CLPs are more cost-effective than coal slurry pipeline under most conditions. Details of the study can be found from the following paper: Liu, H., Noble, J., Wu, J. P. and Zuniga, R., “E
