Axisymmetric pipeline transportation of oil and water is simulated numerica
lly as an initial value problem. The simulations succeed in predicting the
spatially periodic Stokes-like waves called bamboo waves, which have been d
ocumented in experiments of Bai, Chen & Joseph (1992) for up-flow. The nume
rical scheme is validated against linearized stability theory for perfect c
ore-annular flow, and weakly nonlinear saturation to travelling waves. Far
from onset conditions, the fully nonlinear saturation to steady bamboo wave
s is achieved. As the speed is increased, the bamboo waves shorten, and pea
ks become more pointed. A new time-dependent bamboo wave is discovered, in
which the interfacial waveform is steady, but the accompanying velocity and
pressure fields are time-dependent. The appearance of vortices and the loc
ations of the extremal values of pressure are investigated for both up and
down-flows.