We present the first 2.5 dimensional numerical model calculations of the no
nlinear wave dynamics and heating by resonant absorption in coronal loops w
ith thermal structuring of the transition region and higher chromosphere. T
he numerical calculations were done with the Versatile Advection Code. The
transition region can move freely and is transparent for mass motions from
chromosphere to corona. The loops are excited at the chromospheric level by
linearly polarized monochromatic Alfven waves. We find that the efficiency
of resonant absorption can be much lower than in equivalent line-tied coro
nal loop models. The inefficiency is due to the fast rate at which slow mag
netosonic waves are nonlinearly generated in the chromosphere and transitio
n region. This leads to considerable transfer of energy from the Alfven wav
e to the magnetosonic waves. Consequently, only a relatively small fraction
of the Poynting flux that is injected into the loop system at the chromosp
heric level is available at the coronal level. Cavity leakage and detuning
also have a negative impact on the efficiency, but less so than the nonline
ar energy transfer. Inclusion of radiative and conductive losses improves t
he efficiency of resonant absorption. While the efficiency of resonant abso
rption heating is low, our results indicate that heating by compression and
dissipation of the slow magnetosonic waves and shocks can easily lead to a
temperature rise of a few percent, and for larger driver amplitudes even t
o a rise over 10%. Hence, our results support the idea of indirect coronal
heating through the nonlinear generation of magnetosonic waves that was put
forward more than 20 yr ago. Furthermore, the large transition region and
coronal density oscillations that are associated with the slow magnetosonic
waves provide an explanation for some observed coronal and transition regi
on loop extreme-ultraviolet intensity variations.