Chapter 1. Whalesland 1850 Scenario

The Economy Grows with the Transition from Animal to Mechanical Power

The Story

By 1850 the Industrial Revolution is well under way. New technologies are radically changing the potential rate of economic growth. No technology has greater potential impact that the steam engine.

A group of London investor, keenly aware of the returns possible with rail transportation, have funded a new company - Fast Transportation Inc. - to bring new transportation technology to Whaleslands - a resource rich but rural area. You have been hired as CEO of FTI.

Your job as CEO of FTI will not be easy. The expectations for the new steam based transportation technology is high. However, the economic reality of first generation rail transportation with the steam engines available as of 1850 is mixed.

The steam engines shows great potential but your investors want results NOW. Looks like you will need to pursue a mix of new and old technologies until mechanical transportation technology becomes the dominate solution every transportation requirement.

Note First generation technology has mixed economics. The Adler steam engine when compared to animal driven transportation has mixed economic returns: Passenger. Rail is a clear winner for passenger transportation. It provides both more capacity and better economic returns. Cargo. In the 1850s the dominate cargo is wood form forests to mills and planks from mills to market. For wood the Adler provides more capacity but lower economic returns that ox driven transportation. For transporting planks the Adler is a economic looser. Note that even ox transpiration has marginal economic returns for transporting planks.