There are, however, some limitations imposed on multimodal transport options for bulk cargoes. Iron ore flows can be
characterised as high volume – high weight – low value and transhipment is time consuming, energy intensive and
expensive and it is not therefore practical to have several modes of transport or a large number of transhipment points.
Ultimately, it is most appropriate to use sea transport for the longest possible distance, and rail or truck for the shortest
distance (McKinnon, 1989). This in turn encourages the pursuit of scale economies that is consistent with a risk
minimisation strategy on the part of the carriers (Ashenbaumet al., 2005).