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Road vehicles are cheaper than rail, so they can be a more sensible option at the beginning when cash is short.
If you have a river that crosses the map and, say, a farm near one end and a food processing plant near the other, putting a handful of boats to ferrying grain and meat to the plant then food to a port servicing a town in between can pay off over time. Moverover if you're fosussing your rail operations away from the river and don't have easy rail access to (say) a farm and a food processing plant, it's a way to get that particular product into your towns and grow them, which ends up benefitting your railways as well as they'll have a larger population base to serve.
Yeah, I just didn't manage to keep industry alive with just boats because they're so slow. The industry doesn't realize the carrying capacity of boats, because they prefer low capacity and high frequency. So most of the boats run near-empty while the industry complains that I need to "Ship more of X".
They also tend to bunch up because they are so slow at docking. If you try to upgrade the cargo harbor, then the river might be too narrow so the harbor blocks off the entire line.
I think boats are the biggest disappointment of this game. They should be able to form the backbone of long-distance cargo transport, but it just doesn't work.
I had a construction material factory producing 5000+ construction materials and it was supplied only from one quarry by ship.
But I find the best use for them in transfer/hub stations.
Have a rail line with high frequency delivering to a hub port that's then in turn connected to a port in city with demand. For some reason if the rail line to the hub has a high frequency the factory sees that as OK and production goes up - even though the city gets goods with low frequency. (I've supplied loads of 250 food to cities with a demand of under 200, but the boat moves so slowly that the city gets fed only every two years - factory keeps producing though, weird)
If you have one city hub with a few resources like fuel, tools and food, and another city hub with the others like machines, goods and construction materials, the route will be extremely profitable if they transfer full loads between hubs.
Feels a bit gamey though - cause it's almost like cheating the demand/frequency system.
Boats can have high frequency too. You just need alot of boats :P Doesn't really make sense to use them for supply unless you need to move thousands of items tho.
Are ships maybe a bit less efficient than trains? Probably. But they look cool, and that makes me happy. I'm easily entertained, obviously lol...
Having said that, I've never lost money on a boat line yet. They don't make millions like trains do, but they're never in the red either. Every little bit helps :)