Deck 8: Water Carriers and Pipelines

Question 1

The most serious threat to the pipeline industry are from which form of competition?

A) Canadian companies building new pipelines into the U.S.
B) natural gas powered pipeline
C) intramodal
D) intermodal

Answer 1

intermodal

Question 2

Transit time via water transportation is the longest of the four primary modes commodities. This modal service disadvantage has to be traded-off against the low-cost to the shipper for the transport of commodities. This tradeoff usually makes water transport attractive for which commodities?

A) automobiles and construction machinery
B) large, bulky and oversized shipments
C) basic raw materials
D) inventory items

Answer 2

basic raw materials

Question 3

Which is the first major classification of water carriers?

A) company-owned and exempt carriers
B) for hire and private carriers
C) exempt and private carriers
D) regulated and exempt carriers

Answer 3

for hire and private carriers

Question 4

Which two factors have contributed to joint ownership of large-diameter pipelines?

A) high variable costs of ownership and low rates
B) economies of scale and high fixed costs of ownership
C) government regulation and development funds
D) rail competition and the growth of domestic water transport

Question 5

Which of the following best describes the oil pipelines in the United States?

A) primarily operated as private carriers on a not-for-hire basis
B) primarily operated as private carriers on a for-hire basis
C) primarily operated as common carriers on a for-hire basis
D) primarily operated as common carriers on a not for-hire basis

Question 6

Water carriage is recognized as being a catalyst for economic activity in a community. This recognition is used as a justification for which of the following?

A) private investment in waterway construction
B) public investment in railroad construction as a connector for water transportation
C) public investment in and operation of ports
D) private investment in highway construction as a connector for water transportation

Question 7

The Supreme Court decided that the pipelines are required to operate as common carriers if a shipper of oil demands their services. This decision is known as the:

A) Standard Oil Case.
B) Alaska North Slope Case.
C) Champlin Oil Case.
D) Hepburn Case.

Question 8

Which is a major advantage offered by the pipelines?

A) capability
B) low rates
C) long transit times with "storage in transit"
D) accessibility

Question 9

What medium is used to move coal in slurry lines?

A) compressed air
B) gas
C) water
D) vacuum

Question 10

Pipeline accounts for 20% of the total intercity tonnage shipped in the U.S. However their revenues are only 4% of the total intercity transportation revenues. Why is this?

A) high incidence of loss and damage
B) low reliability
C) Shipper's ability to negotiate lower rates because of intense completion among modes
D) low rates

Question 11

Oil pipelines used for movement of products from storage areas and refineries to market-oriented tank farms are classified as which of the following?

A) gathering lines
B) transmission lines
C) trunk lines
D) product lines

Question 12

Water transportation is attractive to shippers for the movement of which commodities?

A) automobiles and construction machinery
B) large, bulky and oversized shipments
C) basic raw materials
D) inventory items

Question 13

Which category of carrier dominates the for-hire segment of the water carrier industry?

A) common
B) contract
C) exempt
D) regulated

Question 14

Which best describes the domestic water carrier industry?

A) a limited number of small firms
B) large businesses with some offshore ownership
C) the carriers that report to the Surface Transportation Board's water section
D) the regulated carriers account for approximately one-fourth of the industry's total carriers

Question 15

The pipelines provide their own rights of way, construct the pipelines and pumping stations, pay property taxes, and provide for the preventative maintenance of their transportation networks. This contributes to the high proportion of which of the following in the pipeline's cost structure?

A) variable costs
B) fixed costs
C) variable costs.
D) revenue costs

Question 16

Water carrier's intramodal competition is characterized by:

A) fierce and intense and ongoing efforts
B) very much a Lazes Faire or live and let live approach
C) very limited due the nature of industry
D) mandated by the ICC termination Act of 1995

Question 17

The water carrier's principal competitor for the movement of grain, coal, and ores is which mode of transportation?

A) pipelines
B) Canadian and foreign owned water carriers
C) railroads
D) motor carriers

Question 18

Which is a significant factor allowing the pipelines to increase their capacity and move an increased amount of tonnage?

A) larger pipe diameters
B) seamless pipe
C) major advances in technology
D) government regulations which require that the lines move product more quickly

Question 19

Public aid is given the water carriers in the form of waterway construction, development and maintenance. How do the water carriers repay the government for the aid received?

A) by agreeing to haul government traffic free of charge
B) by paying a 25 percent surcharge on their income taxes
C) by paying user charges in the form of lock fees and fuel taxes
D) no repayment is made, all the aid offered is free of charge since both commercial carriers and private citizens use the waterways for business and pleasure

Question 20

Water carriers compete to a limited degree with motor carriers. In most cases, what is the main interaction between the motor and water carriers?

A) to move shipments from one area at a port to another
B) to transport liquid cargo from a tanker to a refinery
C) to transport shipments too small for a barge to an area when they can be assembled into a large enough quantity for a barge
D) to overcome accessibility constraints of water carriers, linking inland areas to the waterways

Question 21

What is the nature of water transportation and trace the developmental importance of the mode.

Question 22

Different grades of crude oil or products in the pipeline at the same time may not mix because of a technique which keeps them separated. This is done with:

A) block
B) batching pig
C) batching ball
D) slurry

Question 23

How many ports are there in the U.S.?

Question 24

Describe the relative service advantages and disadvantages of pipeline transportation.

Question 25

The most widely know case of drugs and/or alcohol resulting in a transportation disaster is?

Question 26

What Supreme Court Judgement resulted in the requirement for pipeline owners to act as common carriers if there was service demand?

Question 27

According to the U.S. Department of Transportation what is the total investment in pipeline?

Question 28

Discuss and describe the competition as it relates to the water carriers.

Question 29

As of 2014, how many short tons were transported by water in the U.S.?

A) Less than 1 million
B) Around 100 million
C) A bit more than 1 billion
D) More than 1 trillion

Question 30

Discuss the cost structure of the water carrier mode and be sure to include fixed versus variable costs.

Question 31

Which mode of transportation has costs that come closest to pipeline costs?

A) rail
B) motor
C) water
D) air

Question 32

What are the four major commodities transported by pipelines?

Question 33

Why are water terminals provided by the public and operated by local government agencies?

Question 34

What is are at least two of the unique aspects of the pipeline industry?

Question 35

Approximately how much has operating revenue for natural gas pipelines increased between 2010 and 2014?

Question 36

Explain the ownership patterns of the pipelines.

Question 37

The pipeline mode of transportation has a small number of very large carriers. What are the reasons for this small number of carriers?

Question 38

Which of the following is not a commodity that water and rail competes to move?

A) grain
B) coal
C) oil
D) chemicals

Question 39

Define, describe and discuss the nature of intramodal and intermodal competition for pipelines.

Question 40

How many kilometers of waterways are there in the United States?

A) 15,000
B) 150,000
C) 26,000
D) 21,000

Question 41

Discuss water transportation labor.

Question 42

Compare pipeline pricing to pricing by other modes, and describe how the pipelines price their services.

Question 43

What has happened to the volume of water cargo movement between 2000 and 2014?  Why has this occurred?

Question 44

Describe the role of gathering lines and trunk lines in pipeline operations.

Question 45

Since pipelines transport liquids, how do they keep the various liquids from mixing together?
What happens in they do mix?