2011 Supply Chain Cost Analysis of Long-Distance Transportation of Energy Wood in Finland

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    Supply chain cost analysis of long-distance transportation

    of energy wood in Finland

    Timo Tahvanainen*, Perttu Anttila

    Metla, Finnish Forest Research Institute, P.O. Box 68, FI-80101 Joensuu, Finland

    a r t i c l e i n f o

    Article history:Received 5 October 2009

    Received in revised form

    28 October 2010

    Accepted 1 November 2010

    Available online 7 January 2011

    Keywords:

    Logging residue

    Forest chip

    Energy wood bundle

    Railway transportation

    Fuel terminal

    Supply chain

    a b s t r a c t

    The increasing use of bioenergy has resulted in a growing demand for long-distancetransportation of energy wood. For both biofuels and traditional forest products, the

    importance of energy efficiency and rail use is growing. A GIS-based model for energy wood

    supply chains was created and used to simulate the costs for several supply chains in

    a study area in eastern Finland. Cost curves of ten supply chains for logging residues and

    full trees based on roadside, terminal and end-facility chipping were analyzed. The average

    procurement costs from forest to roadside storage were included. Railway transportation

    was compared to the most commonly used truck transportation options in long-distance

    transport. The potential for the development of supply chains was analyzed using

    a sensitivity analysis of 11 modified supply chain scenarios.

    For distances shorter than 60 km, truck transportation of loose residues and end-facility

    comminution was the most cost-competitive chain. Over longer distances, roadside

    chipping with chip truck transportation was the most cost-efficient option. When the

    transportation distance went from 135 to 165 km, depending on the fuel source, train-based transportation offered the lowest costs. The most cost-competitive alternative for

    long-distance transport included a combination of roadside chipping, truck transportation

    to the terminal and train transportation to the plant. Due to the low payload, the energy

    wood bundle chain with train transportation was not cost-competitive. Reduction of

    maximum truck weight increased the relative competitiveness of loose residue chains and

    train-based transportation, while reduction of fuel moisture increased competitiveness,

    especially of chip trucks.

    2010 Elsevier Ltd. All rights reserved.

    1. Introduction

    Trucks strongly dominate the transportation of domestic

    round wood in Finland (Table 1). Altogether, about 80% of the

    round woodentersmillgates bytruck and about 16%by rail [1].

    The remaining 3.5% is transported by waterways. During

    the last decade, the share of waterways has decreased by

    one third, while truck transportation has correspondingly

    increased its share. In 2005 about 26% (17.9 Mm3) of the raw

    wood used by the Finnish forest industry was imported. Ofimported raw wood, only 45% was transported by trucks and

    over 23% by rail. Almost 32% (5.5 Mm3) was transported in

    vessels, of which 2.2 Mm3 was in the form of wood chips. In

    addition to round wood transportation,about800 kt of chipped

    sawmill residues were transported by railway to pulp mills in

    2005[2].

    The average transportation distance by rail is three times

    longer than that of truck transportation (Table 1). The cost per

    * Corresponding author. Tel.: 358 50 443 2950; fax: 358 13 263 7111.E-mail address:[email protected](T. Tahvanainen).

    A v a i l a b l e a t w w w . s c i e n c e d i r e c t . c o m

    h t t p : / / w w w . e l s e v i e r . c o m / l o c a t e / b i o m b i o e

    b i o m a s s a n d b i o e n e r g y 3 5 ( 2 0 1 1 ) 3 3 6 0 e3 3 7 5

    0961-9534/$ e see front matter 2010 Elsevier Ltd. All rights reserved.

    doi:10.1016/j.biombioe.2010.11.014

    mailto:[email protected]://www.sciencedirect.com/http://www.elsevier.com/locate/biombioehttp://dx.doi.org/10.1016/j.biombioe.2010.11.014http://dx.doi.org/10.1016/j.biombioe.2010.11.014http://dx.doi.org/10.1016/j.biombioe.2010.11.014http://dx.doi.org/10.1016/j.biombioe.2010.11.014http://dx.doi.org/10.1016/j.biombioe.2010.11.014http://dx.doi.org/10.1016/j.biombioe.2010.11.014http://www.elsevier.com/locate/biombioehttp://www.sciencedirect.com/mailto:[email protected]
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    cubic meter and kilometer is roughly half of the cost of truck

    transportation[1]. However, railway and water transportation

    also includes truck transportation from the forest to the

    nearest loading terminal or water storage. For railway trans-

    portation, the truck feed-in costs cover as much as 42% of total

    transport costs.The amount of harvested forest biomass for energy

    generation is still low compared to harvested industrial timber

    (Table 2), but it is increasing rapidly. Energy wood harvesting

    is strongly integrated into industrial timber harvesting; most

    of the raw material for forest chips is collected from clear

    cutting areas and also from thinnings, where both industrial

    and energy wood is often harvested. The users of forest chips

    are mainly local district heating or combined heat and power

    (CHP) plants and the average transportation distances are

    shorter than for industrial timber assortments. Trucks are

    dominating energy wood transportation and for the time

    being there are few large CHP installations that use railway

    transportation for residue bundles, stumps or chips.The use of different technologies for forest fuel production

    in Finland in the year 2007 has been estimated based on

    a survey of energy wood suppliers, assuming the share of

    railway transportation to be zero [4,5]. The most common

    supply chain for producing energy chips from logging residues

    and small-sized timber was based on roadside chipping and

    road transportation using chip trucks. The estimated number

    of chip trucks in use was 130 units, with a portion of the chip

    trucks also used for transporting energy peat and industrial

    wood residues. About 60 energy trucks were equipped for

    transporting loose residues and stump wood. The bundling

    systemis able to usestandardtimber trucksfor transportation;

    seven timbertrucks areused fortransportation of energywood

    bundles. The supply chains for both bundles and stumps

    require a stationary crusher at the plant to prepare the fuel

    before combustion. The number of stationary crushers in

    energy plants was six[4,5]. Chipping or crushing can also take

    place in a fuel terminal before transportation to the plant.Railway transportation in Finland was a state monopoly

    until 2007, when private companies were allowed to offer

    services for goods transportation. In summer 2007, the first

    private company obtained a licence to operate with the

    intention to start delivering cargo services for the forest,

    mining and metal industries. The forest industry is the largest

    client for railway transportation [6], and has criticized the

    state monopoly for high costs and inadequate service. The

    criticisms regarding service include the lack of specialized

    wagons for hire and the scarcity of loading stations and

    terminals suitable for wood transportation. Additionally, the

    poor condition of infrequently used parts of the rail network

    results in reduced maximum loads and speeds[7]. Comparedto truck transportation from forest to plant, railway trans-

    portation is more complicated to organize. In order to mini-

    mize equipment rentals, the minimum cargo is large (about

    1000 m3), and the timetables for loading are tight and often

    scheduled during weekends. These restrictions apply for

    energy wood transportation as well. Another limiting factor is

    the sparse railway network.

    The general trend has been towards closing sparsely uti-

    lised railway sections having little or no passenger traffic,

    typically located in forested areas[7]. However, the revival of

    the mining industry, increasing energy costs and demands for

    improving the safety of road traffic are increasing the interest

    in railway transportation in general. The closing of smallerproduction units in the Finnish pulp industry is leading to

    longer average transportation distances for raw wood. New

    large installations for using wood for energy production are

    increasing the demand for fuel and competition between

    different users. The demand for fuels is largest in southern,

    western and central Finland, while the production potential is

    located more in eastern and northern Finland. Disturbances in

    local fuel supply and the need for balancing the regional

    supply and demand during periods of peak consumption

    require efficient systems for long-distance transportation of

    biofuels.

    Planned large-scale production of liquid biofuels and the

    development of the so-called biorefinery concept may also

    Table 2 e The sources of energy wood for forest chips andharvesting of industrial round wood in Finland in 2006[3].

    Mm3

    Thinnings: full trees and delimbed stems 0.70

    Large stemwood 0.17

    Logging residues 1.74

    Stumps 0.46

    Forest chip, total 3.06

    Industrial roundwood, total 49.90

    Table 1e Transportation of domestic round wood in Finland in 2005 [1], volumes over bark.

    Domestic roundwood

    Volume Share Distance Unit cost Unit cost

    Mm3 % km m3 km m3

    Trucks 33.27 80.1 105 0.054 5.68

    Railway 6.85 16.4 293 0.030 8.92by road to railway 6.48 15.6 48 0.079 3.81

    rail transportation 6.85 16.4 245 0.022 5.34

    Water (floating barge) 1.45 3.5 311 0.027 8.35

    Total long-distance transportation 41.54 100.0 143 0.044 6.31

    Total by road 41.12 99.0 93 0.057 5.31

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    increase the need for long-distance transportation of energy

    wood. Furthermore, the growing demand for renewable

    energy and fuels is fading the strict line between industrial

    timber and energy wood. For both biofuels and traditional

    forest products, the importance of energy costs, energy effi-

    ciency, and environmental impact assessments are growing

    [8], thus supporting the development of energy-efficient

    means of transportation such as rail. The new methods andtechnology for the transportation of energy wood have to be

    developed as a part of the whole logistic chain, because

    activities at the beginning of the supply chain affect the

    choices and costs in latter phases of the chain. The bundling

    system is a good example: bundle wrapping in the beginning

    of the supply chain results in cost savings in forwarding,

    together with faster loading and unloading operations

    throughout the whole chain.

    The purpose of this study was to assess the costs of forest

    chip procurement and the development potential of the

    supply chains. A special emphasis was on railway trans-

    portation, which was compared to the most commonly used

    truck transportation options in long-distance transport. Thepotential for the development of supply chains was investi-

    gated using a sensitivity analysis, on the basis of the cost

    structures of the simulated supply chains. Another purpose

    was to develop a GIS-based cost model for forest fuel supply,

    which could be used to estimate supply costs and fuel avail-

    ability at specific plants using forest resource data.

    2. Materials

    The CHP plants under consideration were located in Uima-

    harju (62190N, 27540E) and Varkaus (62550N, 30130E); themain transportation routes are illustrated in Fig. 1. Road

    network data were used as a basis for calculating the costs of

    truck transportation. The Finnish Road Administration

    maintains a national road and street database called Digiroad

    [9]. Digiroad describes the geometry and physical features of

    the roads including, for example, the functional class of a road

    and turning restrictions.

    The cost calculations of train transportation were based on

    railway network data obtained from the National Land Survey

    of Finland[10]. Locations of railway terminals were provided

    by the Finnish Rail Administration [11]. The number ofrailway

    terminals was 24. The land area in North Karelia is 17 780 km2,

    of which 84% is forest land[12]. Based on the road and railwaydata, the railroad density in North Karelia is 30 m km2 and

    the road density is 2.0 km km2.

    A grid of forest data with an interval of 500 m between the

    grid points was created. Based on CLC2000 land use per land

    cover classification [13] and the boundaries of conservation

    and Natura 2000 areas, points outside of forestry land were

    removed from the analyses. Subsequently, the average

    Finnish harvesting conditions were assumed for each point

    (Table 3). The roadside storages for transportation simulations

    were placed for each grid point onto the nearest Digiroad

    network location. In Finland, logging residues are collected

    mainly in spruce-dominated final felling sites. The total

    number of simulated roadside storages was 69 743.

    3. Methods

    3.1. Supply chains

    Ten different supply chains for forest chips were compared in

    this study (Table 4). In addition, 11 modifications of these

    supply chains were produced for sensitivity analysis. Thesimulations of the ten basic supply chains represent the most

    commonly used supply chains with average cost and effi-

    ciency parameters and their combinations with railway

    transportation.

    In chains 1-6 the fuel source is logging residues from clear

    cutting areas, whereas in chains 7-10 energy wood consists of

    small-sized full trees from thinning operations. Chains 1 and 7

    represent the most common supply chain in Finland, where

    the energy wood is chipped at roadside directly into the truck

    and transported to the plant. In chains 2 and 8 the chip truck

    delivers the chips first to the railway terminal, where chips are

    loaded onto train wagons for long-distance transportation to

    the plant. Residues (Chain 3) and full trees (Chain 9) aretransported as loose material straight to the plant andchipped

    there in a stationary chipper. In chains 4 and 10 loose material

    is transported to the railway terminal, where it is chipped and

    transported in a chip wagon to the plant. Residue bundles are

    transported in timber trucks straight from roadside storage to

    the plant for end-facility comminution in chain 5, and via

    railway terminal in chain 6.

    3.2. Cost calculations

    3.2.1. Distance-independent costs

    In the calculations the costs were divided into those that are

    independent of the transportation distance (Table 5) and coststhat depend on the distance. Felling-bunching costs, hauling

    costs in thinnings[14,15], and hauling costs in clear-cuts[16]

    were all based on models. Bundling, roadside chipping and

    terminal crushing costs were based on cost models developed

    by the Finnish Forest Research Institute (Metla) [14], which

    combine the results of several public research projects and

    non-publiccase studies. For roadside chipping options, loading

    of the truck includes only the waiting time cost of the truck

    during chipping into load space. Chipping costs at the terminal

    were assumed to be 70% of the roadside chipping costs due

    to more efficient equipment and larger chipping volumes.

    Typical loading and unloading times (Table 6) for trucks were

    used [17,18]. Loading and unloading times for train wagonsfollowed the corresponding efficiencies for trucks, except

    loading of chip wagons, where chipping into load space was

    replaced by chipping and loading using a front loader. The

    preparation times in terminal operations were about the same

    for a truck as for a train with tenwagons. Thecosts for loading

    and unloading operations were calculated by multiplying the

    consumed timeby hourlycosts of the equipment(Table 6).The

    hourly costs for trucks [17] were multiplied by the average

    cumulative increase in unit costs (m3 km) for truck trans-

    portation in the Finnish forest industry in 2004 and 2005, was

    about 9.4% [1,19]. The estimated organization costs varied

    between1.5 and2.5 m3, depending on the multiplicity of the

    procurement chain.

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    For the sensitivity analysis, improved supplychains were

    produced. For bundle-based supply chains the truck and

    wagon loads for bundled residues were increased by opti-

    mizing the bundle dimensions in relation to the load space of

    truck and train wagons. Shortening the bundles from the

    average 3.11 m[18] into 3 m resulted in an increase in the

    amount of bundles in the load from 60 to 72 bales and 17% by

    volume. Train unloading times were reduced by 40% and

    wagon costs by 15% for all train-based chains. Terminal chip-

    ping costs for bundles were estimated at 50% of the costs of

    roadside chipping of logging residues. The estimation is based

    on efficient chipping (or crushing) machinery, larger chipping

    volumes and better working conditions than in average road-

    side storage. Chain 11 (opt) is a combination of optimized

    bundle truck and optimized chip train supply chains.

    Maximum truck payloads were based on Scandinavian

    regulations, in which the maximum weight of a truck is 60

    tonnes. This corresponds approximately to a 38 tonne

    payload, depending on the truck type and how it is equipped[20]. In the sensitivity analysis, results were calculated for

    trucks with a 40 tonne total mass limit and 25 tonne payload.

    Truck load space was the limiting factor for all loose residue

    and bundling options. The average basic density for logging

    residues was 460 kg m3 (dry weight) and 398 kg m3 for full

    trees from thinnings [18]. The density figures represent

    average bundles delivered to the plant, where logging residue

    bundles are spruce (Picea abies) dominant and full tree bundles

    consist of a mixture of several tree species. For chipped

    logging residues with an average 45% moisture content, the

    limit for truck maximum weight reduced the payload from

    54.0 m3 to 45.4 m3. Due to lower basic density and moisture

    content (42%), the chipped full trees were able to fully utilize

    Fig. 1e Location of the study area, studied CHP plants and main transportation routes in the study area. The grey area

    represents the province of North Karelia. Coordinate system: ETRS-TM35FIN. Boundaries and railways: National Land

    Survey of Finland, license MYY/179/06-V. Road network: The Finnish Road Administration/Digiroad 2006. Railway

    terminals: The Finnish Rail Administration. Smaller picture: Boundaries: ESRI Data & Maps; National Land Survey of

    Finland, license MYY/179/06-V.

    Table 3e Average conditions in felling sites used inharvesting cost calculations.

    Final Fellings Pre-commercial thinnings

    Area, ha 1 Area, ha 2

    Forwarding distance, m 150 Forwarding distance, m 200

    Moisture of green

    logging residue

    (in forwarding), %

    55 Moisture of fresh full

    trees (in forwarding), %

    55

    Recovery of green

    logging residues, %

    70 Average full tree volume,

    dm360

    Accumulation of

    industrial round

    wood, m3 ha-1

    266 Accumulation of

    small-sized energy

    wood, m3 ha-1

    33

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    the maximum load space. The effect of drying the fuel from

    45% moisture content to 35% was calculated for normal and

    reduced (25 t) payloads of chipped logging residues. Changes

    in the productivity of chipping due to drier raw material werenot taken into account.

    3.2.2. Distance-dependent costs

    There were three distance-dependent work phases: driving

    a truck without a load, driving a loadedtruck,and transporting

    by train. The GIS model involved finding out the fastest routes

    from each of the generated roadside storage piles to theplants.

    The first plant (pulp mill) is located in Uimaharju village in the

    centre of North Karelia and the second plant (pulp and paper

    mill) in the town of Varkaus, about 70 km from the south-west

    border of North Karelia (Fig. 1).

    The distances from the roadside storages to the plants

    were calculated with Network Analyst extension in ArcGIS 9.2.

    Subsequently, truck driving times were predicted with models

    estimated for timber trucking[21]and driving the route two

    times: empty and with a full load. The cost of driving (m3)

    was calculated using Equation(1)as follows:

    drivingcost hourly cost,

    driving time

    60truck load size

    (1)

    where hourly_cost hourly total cost of the truck,

    driving_timedriving timein minutes, andtruck_load_size size

    of a truck load (Table 6).

    In the supply chains including train transportation, the

    driving cost of a truck was calculated from each point to the

    three closest railway terminals. Furthermore, train trans-

    portation cost was estimated from each terminal to the plants.

    The reason for calculating the costs via three terminals

    instead of only the closest one was that the route via the

    Table 4e The studied supply chain scenarios.

    Supply chain Description Note

    1 Chip truck Clear cutting e Chipping at roadside landinge Truck

    transportation

    Reference chain

    2 Chip train Clear cutting e Chipping at roadside landinge Truck

    transportatione Train transportation

    3 Loose truck Clear cutting e

    Loose residuee

    Truck transportatione

    Crushing at plant only to Uimaharju

    4 Loose train Clear cutting e Loose residuee Truck transportatione

    Chipping at station e Train transportation

    5 Bundle truck Clear cutting e Bundlinge Truck transportatione

    Crushing at plant

    6 Bundle train Clear cutting e Bundlinge Truck transportatione Train

    transportatione Crushing at plant

    7 Chip truck (thinn) Thinning e Chipping at roadside landinge Truck

    transportation

    8 Chip train (thinn) Thinning e Chipping at roadside landinge Truck

    transportatione Train transportation

    9 Loose truck (thinn) Thinning e Loose residuee Truck transportatione

    Crushing at plant

    only to Uimaharju

    10 Loose train (thinn) Thinning e Loose residuee Truck transportatione

    Chipping at station e Train transportationSensitivity analysis:

    11 Bundle truck chip train Clear cuttinge Bundlinge Truck transportation -

    Terminal chipping - Train transportation

    72 bundles in truck, wagon costs

    reduced 15% and efficient terminal

    operations

    2 Chip train (opt) Clear cutting e Chipping at roadside landinge Truck

    transportatione Train transportation

    wagon costs reduced 15% and

    efficient terminal operations

    4 Loose train (opt) Clear cutting e Loose residuee Truck transportatione

    Chipping at station e Train transportation

    wagon costs reduced 15% and

    efficient terminal operations

    5 Bundle truck (opt) Clear cutting e Bundlinge Truck transportation e

    Crushing at plant

    72 bundles in truck, efficient

    unloading at plant

    6 Bundle train (opt) Clear cutting e Bundlinge Truck transportation e Train

    transportatione Crushing at plant

    wagon costs reduced 15% and

    efficient terminal operations

    1 Chip truck (40 t) Clear cutting e Chipping at roadside landinge Truck

    transportation

    40 t max truck weight

    2 Chip train (40 t) Clear cutting e Chipping at roadside landinge Trucktransportatione Train transportation

    40 t max truck weight

    5 Bundle truck (40 t) Clear cutting e Bundlinge Truck transportatione

    Crushing at plant

    40 t max truck weight

    6 Bundle train (40 t) Clear cutting e Bundlinge Truck transportatione Train

    transportatione Crushing at plant

    40 t max truck weight

    1 Chip truck (dry) Clear cutting e Chipping at roadside landinge Truck

    transportation

    35% MC

    1 Chip truck (40 t, dry) Clear cutting e Chipping at roadside landinge Truck

    transportation

    40 t max truck weight and 35% MC

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    closest terminal does not always minimize the total cost. In

    some cases, train transportation distance could be shortened

    considerably if slightly longer truck transportation routes

    were selected. Consequently, the cheapest route of the three

    was selected for a certain point.

    As empirical data and models for train costs were notavailable,asimplecostmodelforasinglewagonwasfitted.The

    shape of the cost model follows the train transportation cost

    curves of the train cost simulation model developed for the

    forest industry [22]. In reference to [22], the average trans-

    portationdistance was290 km andwhen the distance changed

    to100 km the relativehauling costs changed byabout 20%. The

    relative costs were transformed to absolute costs (m3 and

    perwagon) byfittingthe curve to average train transportation

    costs in the Finnish forest industry to the 2004and 2005 values

    [1,19]. Subsequently, thecost of train transportationper wagon

    (per wagon) was calculated by Equation(2)as follows:

    train cost wagon 160 0:

    89,distance (2)

    where

    distance train hauling distance (km) from a terminal to

    a plant.

    Furthermore, the cost of train transportation per volume

    ( m3) was calculated by dividing the wagon cost by the

    wagon load volume.

    3.2.3. Total cost

    For each point in the grid, the total cost was computed by

    totaling the distance-independent and distance-dependent

    costs. Formap output thepoint data were interpolated by using

    naturalneighboralgorithm [23].Subsequently,theareasoutside

    forestry land were excluded from the resulting raster surface.

    In order to model the dependence between transportation

    distance and total costs, regression curves were fitted to the

    point-level data. The curve form was decided based on visual

    goodness of fit and coefficient of determination. The share of

    truck and train transportation with a certain total trans-

    portation distance varied, causing considerable variation in

    Table 5e Summary of the different work phases related to the chains and the respective calculated costs in mL3.Distance-dependent phases are marked with f(d).

    Work phase Supply chain

    1 2 3 4 5 6 7 8 9 10

    Felling - bunching 12.9 12.9 12.9 12.9

    Bundling 7.6 7.6

    Hauling 5.9 5.9 5.9 5.9 2.7 2.7 4.7 4.7 4.7 4.7Chipping at roadside landing 6.8 6.8 6.1 6.1

    Driving without load f(d) f(d) f(d) f(d) f(d) f(d) f(d) f(d) f(d) f(d)

    Loading of truck 1.6 1.6 3.0 3.0 1.6 1.6 1.5 1.5 3.0 3.0

    Driving loaded f(d) f(d) f(d) f(d) f(d) f(d) f(d) f(d) f(d) f(d)

    Unloading of truck 0.7 0.7 2.4 2.4 1.1 1.1 0.6 0.6 2.4 2.4

    Chipping at station 4.8 4.3

    Loading of train 0.5 0.5 1.6 0.5 0.5

    Train transportation f(d) f(d) f(d) f(d) f(d)

    Unloading of train 0.3 0.3 1.1 0.3 0.3

    Crushing at power plant 1.7 1.7 1.7 1.7

    Other costs 2.0 2.5 1.5 2.0 2.0 2.5 2.5 2.5 2.0 2.0

    Total of distance-independent

    costs, m317.1 18.4 14.6 18.9 16.6 19.8 28.4 29.1 26.7 30.1

    Sensitivity analysis:

    Work phase Supply chain

    11opt 2opt 4opt 5opt 6opt 1 40t 2 40t 5 40t 6 40t 1 dry 1 40t dry

    Felling - bunching

    Bundling 7.6 7.6 7.6 7.6 7.6

    Hauling 2.7 5.9 5.9 2.7 2.7 5.9 5.9 2.7 2.7 5.9 5.9

    Chipping at roadside landing 6.8 6.8 6.8 6.8 6.8

    Driving without load f(d) f(d) f(d) f(d) f(d) f(d) f(d) f(d) f(d) f(d) f(d)

    Loading of truck 1.4 1.6 3.0 1.4 1.4 1.8 1.8 1.8 1.8 1.8 1.7

    Driving loaded f(d) f(d) f(d) f(d) f(d) f(d) f(d) f(d) f(d) f(d) f(d)

    Unloading of truck 0.9 0.7 2.4 0.9 0.9 0.9 0.9 1.1 1.1 0.9 0.8

    Chipping at station 3.4 3.4

    Loading of train 0.3 0.3 0.3 0.4 0.5

    Train transportation f(d) f(d) f(d) f(d) f(d)Unloading of train 0.2 0.2 0.2 0.3 0.3

    Crushing at power plant 1.7 1.7 1.7 1.7

    Other costs 2.5 2.5 2.5 2.0 2.5 2.0 2.5 2.0 2.5 2.0 2.0

    Total of distance-independent costs, m3 18.9 18.0 17.7 16.2 17.4 17.4 18.6 16.8 17.3 17.4 17.2

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    Table 6e

    Parameter values used in calculating transportation costs. TruLS [Size of a truck load, TruLA [Preparation time of loaTruL[Timeto load or chip into a truck, TruUA [Preparation time of unloading a truck, TruCD[Hourly cost of a truck when drivingloading or unloading, WLS [Size of a wagon load, TrnLA [Preparation time of loading a train, TrnL [Time to load a wagon, Trna train, TrnU [Time to unload a wagon, BCL [Hourly cost of a bulldozer when loading or unloading a train.

    Chain TruLS TruLA TruL TruUA TruU TruCD TruCL WLS TrnLA TrnL

    m3 min load1 min m3 min load1 min m3 h-1 h1 m3 min train1 min m

    1 Chip truck 45.4 18 1.5 20 0.4 79.8 49.2

    2 Chip train 45.4 18 1.5 20 0.4 79.8 49.2 57.0 25 0.4

    3 Loose truck 28.4 15 2.9 20 2.0 82.0 53.6

    4 Loose train 28.4 15 2.9 20 2.0 82.0 53.6 57.0 25 0.4

    5 Bundle truck 32.2 18 1.3 25 0.4 79.8 52.5

    6 Bundle train 32.2 18 1.3 25 0.4 79.8 52.5 32.2 25 1.7

    7 Chip truck (thinn) 54.0 18 1.5 20 0.4 79.8 49.2

    8 Chip train (thinn) 54.0 18 1.5 20 0.4 79.8 49.2 57.0 25 0.4

    9 Loose truck (thinn) 28.4 15 2.9 20 2.0 82.0 53.6

    10 Loose train (thinn) 28.4 15 2.9 20 2.0 82.0 53.6 57.0 25 0.4

    11 Bundle truck chip

    train (opt)

    37.6 18 1.3 25 0.4 85.3 52.5 57.0 25 0.4

    2 Chip train (opt) 45.4 18 1.5 20 0.4 79.8 49.2 57.0 25 0.4

    4 Loose train (opt) 28.4 15 2.9 20 2.0 82.0 53.6 57.0 25 0.4

    5 Bundle truck (opt) 37.6 18 1.3 25 0.4 85.3 52.5

    6 Bundle train (opt) 37.6 18 1.3 25 0.4 85.3 52.5 37.6 25 1.7

    1 Chip truck (40 t) 29.9 18 1.5 20 0.4 79.8 49.2

    2 Chip train (40 t) 29.9 18 1.5 20 0.4 79.8 49.2 57.0 25 0.4

    5 Bundle truck (40 t) 29.9 15 2.9 20 2.0 79.8 53.6

    6 Bundle train (40 t) 29.9 15 2.9 20 2.0 79.8 53.6 57.0 25 0.4

    1 Chip truck (dry) 53.7 18 1.5 20 0.4 79.8 49.2

    1 Chip truck (40 t, dry) 35.3 18 1.5 20 0.4 79.8 49.2

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    the total cost with the train-based chains. The maximum

    feed-in truck transportation from roadside storage to railway

    terminal was reduced to 30 km. Consequently, only points

    having a maximum truck transportation distance of 30 km

    from roadside storage to railroad terminal were considered

    with train-based chains. Roadside storages within a 30 km

    truck transportation distance to the railroad terminal covered

    about 65% of all the roadside storages.

    4. Results

    4.1. Cost models

    With the chains based only on truck transportation, cubic

    curve form was found to give the best fit (see an example in

    Fig. 2) for the model for estimating total costs. The coefficient

    of determination was 1.00 for all the truck chains. For the

    procurement chains based on both truck and train trans-

    portation, linear function form was selected (see an example

    inFig. 3). The coefficient of determination varied between 0.40and 0.90.

    4.2. Total costs

    The reference supply chain (Chain 1) chipping at roadside

    storage and transportation of chips in full truck and trailer

    units to the plant was the most cost-efficient alternative for

    transportation distances between 60 and 160 km (Fig. 4). For

    shorter distances, loose residue trucks combined with chip-

    ping at the plant was the least expensive alternative. The total

    costs of the supply chains with truck transportation were

    much more sensitive to transportation distance than the

    train-based chains, especially for loose residues and bundles,which were underutilizing the payload capacity of a truck.

    Chipping at roadside storage and transportation as chips by

    truck and train was the most competitive train option, when

    the maximum truck transportation was limited to 30 km. The

    total costs of the train transportation chain were lower than

    the costs of the chipping at the roadside and truck option at

    about a 160 km distance. Trucking of loose residues to the

    railway terminal for chipping combined with train trans-

    portation was more expensive than the chipping at the road-

    side and train option, but the difference was rather small,about 1.5 m3. Due to the lower payload, the costs of bundle

    trucks were higher than those of chip trucks. Train trans-

    portation of bundles was the most expensive alternative.

    For energy wood supply chains from thinnings, the total

    costs were over 11 m3 higher compared to the same

    transportation method for logging residues (Fig. 5). The truck

    transportation cost curve for chips from full trees is slightly

    less sensitive to distance than for chips made of logging

    residues. The costs of transporting loose full trees exceeded

    the costs of roadside chipping and truck combination at about

    a 30 km distance. The most competitive train transportation

    option based on chipping at the roadside offered the lowest

    total costs of the studied thinning supply chains when thetransportation distance exceeded 145 km.

    The spatial variation of the total supply chain costs for the

    Uimaharju plant is illustrated in Fig. 6. For pure truck-based

    transportation options like chain 1 (Chip truck) the costs are

    increasing as a function of the total transportation distance.

    For truck and train combinations, like chain 2 (Chip train), the

    low-cost areas are located near the railway terminals. The

    same pattern is clearly seen inFig. 7, where the lowest cost

    supply chain options for Uimaharju are illustrated. At short

    distances, the loose residue option with crushing at plant (3

    Loose truck) results in the lowest total costs. Further away

    chipping at the roadside landing and transportation by truck

    is the cheapest. When the total transportation distance is long

    Fig. 3e

    Point-level data of 2 Chip train supply chain toUimaharju with the fitted linear curve. Transportation

    distance includes both truck and train transportation, and

    the maximum truck transportation distance is limited to

    30 km.

    Fig. 2e Point-level data of 1 Chip truck supply chain to

    Varkaus with the fitted cubic curve.

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    15

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    19

    21

    23

    25

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    29

    31

    33

    0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190

    Transportation distance, km

    Totalcost,m

    -3

    1 Chip truck

    2 Chip train

    3 Loose truck

    4 Loose train

    5 Bundle truck

    6 Bundle train

    Fig. 4 e Total costs of basic supply chains of logging residues as functions of transportation distance to Uimaharju.

    15

    20

    25

    30

    35

    40

    45

    0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190

    Transportation distance, km

    Totalcost,m

    -3 1 Chip truck

    7 Chip truck (thinn)

    8 Chip train (thinn)

    9 Loose truck (thinn)

    10 Loose train (thinn)

    Fig. 5e Total costs of supply chains of full trees from thinnings as functions of transportation distance to Uimaharju. The

    curve of 1 Chip truck for logging residues is plotted as a reference.

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    but the distance to the nearest railway terminal is short, the

    chipping at roadside followed by truck and train trans-

    portation is the most cost-efficient alternative. The longer the

    total distance, the larger the cost-competitive area around

    a railway terminal.

    In long-distance transport of logging residues from North

    Karelia to Varkaus, the reference chain (1 Chip truck) was the

    most cost-efficient until about 160 km. For longer trans-portation distances, chipping at the roadside combined with

    truck and train transportation offered the lowest costs. For

    most of the forest area in North Karelia, the truck and train

    combination was the cheapest supply chain at Varkaus

    (Fig. 8).

    4.3. Improved supply chains

    Optimization of bundle dimensions to fully utilize the load

    space of a timber truck remarkably lowered the transportation

    costs for bundle options. Additionally, when the efficiency of

    unloading the truck was improved, the improved bundle truck

    transportation option (5 Bundle truck (opt)) offered onlyslightly higher costs than loose residue truck until about

    65 km (Fig. 9). At about a 65 km distance, the chip truck chain

    beats both loose truck and optimized bundle truck, being the

    most cost-efficient supply chain until about 120 km. When the

    cost efficiency of train transportation was improved by 15%,

    together with efficiency improvement in terminal operations,

    the chipping at the roadside and train transportation option

    (2 Chip train (opt)) became the most cost-efficient alternative

    at about a 90 km distance. Chain 11, which combines the

    bundle truck and chip train transportation became cheaperthan option 5 Bundle truck (opt) at a distance of 105 km, but

    did not reach the cost of other train options.

    In general, simple supply chains, like truck transport of

    loose residues and chipping at the plant, offer the lowest total

    costs at short transportation distances. For long distances, the

    importance of packing density and the ability to use full load

    capacity (t) become more important. Additional work phases

    cause additional costs, which should be compensated by

    improved efficiency in other phases in the supply chain. The

    extra unloading and loading costs resulting from train trans-

    portation are not fully compensated by lower transportation

    costs at a 50 km distance, but at 200 km the total costs become

    lower than in plain chip truck transportation (see chains 1 and2 inFig. 10). Bundling remarkably increases the roadside costs

    for energy wood. However, haulage costs are significantly

    Fig. 6e Total cost to Uimaharju with the chain 1 Chip truck scenario (left) and the chain 2 Chip train scenario (right).

    Coordinate System: ETRS-TM35FIN. Boundaries and railways: National Land Survey of Finland, license MYY/179/06-V.

    Road network: The Finnish Road Administration/Digiroad 2006. Railway terminals: The Finnish Rail Administration.

    Non-Forestry Land: Finnish Environment Institute, partly Ministry of Agriculture and Forestry, National Land Survey,

    Population Register Centre. Conservation areas: Metsahallitus, Finnish Environment Institute. Natura 2000 areas:

    Finnish Environment Institute.

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    lowerthanforlooseloggingresiduesandfulltrees(seeTable5).

    Consequently, more efficient loading andunloading anduse of

    efficient end-facility crushing brings cost savings to these work

    phases, and the distance-independent costs for the plain

    bundle truck option are lower than for the chip truck-based

    supply chain. The total costs remain higher than in the most

    cost-efficient roadside chipping alternatives because of lower

    payload.

    4.4. Effect of reduced payload and moisture

    When the trucks total weight was reduced to 40 t, corre-

    sponding to 25 t payload, the weight was the limiting factor at

    45% moisture content for all of the studied supply chains,

    except for the loose residues. This strongly reduced the cost-

    competitiveness of the chip truck-based supply chains.

    Consequently, trucking of loose residues became the most

    competitive option up to 120 km (Fig. 11). The reduced payload

    for trucks improved the relative cost-competitiveness of rail-

    road transportation. Roadside chipping combined with train

    transportation remained the most competitive train trans-

    portation option, offering the lowest costs for transportation

    distances of 120 km or more. Bundle truck offered lower costs

    than roadside chipping and truck transportation. Roadside

    chipping combined with truck and train transportation (2 Chip

    train (40 t)) became as expensive as roadside chipping and

    truck transportation (1 Chip truck (40 t)) at an 80 km distance.

    Lowering the moisture of chips from 45% to 35% before truck

    transportation reduced the transportation costs by 0.8 m3

    for a 70 km transportation distance. When using the 60 t

    maximum weight, the corresponding cost difference was

    slightly bigger. In general, the transportation costs with 40 t

    trucks were higher and differences between supply chains

    smaller compared to conditions, where 60 t total weights fortrucks is allowed. As the truck dimensionsand maximum load

    volumes were not reduced compared to Scandinavian stan-

    dards, the results cannot be generalized for areas having

    different standards for truck dimensions.

    5. Discussion

    5.1. Overview of results

    In Finnish conditions, the looseresidueoption withend-facility

    chipping was the cheapest optionunder short distances, while

    for medium distances the chipping at roadside together with

    Fig. 7 e The cheapest procurement chains at Uimaharju

    plant.

    Fig. 8 e The cheapest procurement chains at Varkaus

    plant.

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    truck transportation offered the lowest costs. Train trans-

    portation became competitive when the transportation

    distance exceeded145 km for chipped full treesand 160 km for

    logging residues, when maximum truck transportation to the

    train station waslimited to 30 km.When thetruckpayload wasreduced from 38 tonnes to 25 tonnes, train transportation

    offered the lowest costs at a 90 km distance.

    The threshold distance where the costs of the loose residue

    option and chipping at the roadside were equal was about

    65 km for logging residues and about 30 km for full trees,

    which is in line with results by Asikainen[24], who stated that

    distances up to 50 km are suitable for loose residue trans-portation. The difference between the two sources of forest

    chips is mainly based on the higher efficiency of roadside and

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    0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190

    Transportation distance, km

    Totalcost,m-3

    1 Chip truck

    6 Bundle train (opt)

    2 Chip train (opt)

    4 Loose train (opt)

    5 Bundle truck (opt)

    3 Loose truck

    11 Bundle truck chip train

    Fig. 9 e Total costs of the optimized supply chains of logging residues as functions of transportation distance to Uimaharju.

    The curves of chain 1 Chip truck and 3 Loose truck scenarios are plotted as reference.

    Fig. 10e Total cost structure of selected supply chains for logging residues at 50 km and 200 km transportation distances

    (scenarios: 1 Chip truck, 2 Chip train, 3 Loose truck, 4 Loose train, 5 Bundle truck and 15 Bundle truck (opt)). Bundling costs

    are included in roadside cots in supply chains 5 and 15 (opt).

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    terminal chipping of full trees compared to chipping of logging

    residues, and partly due to differences in basic densities and

    moisture contents of the fuels. At zero stumpage prices, theroadside cost for thinning wood was about 11.3 m3 higher

    than for logging residues.

    Chipping at roadside and truck transportation to the plant

    is the most common supply chain for logging residues and

    small-sized trees in Finland[5,25]. It seems to offer the lowest

    supply costs in quite a wide range of transportation distances,

    being relatively competitive in wide range (30e200 km) of

    distances. The results presented here are based on optimal

    conditions, when a separate chipping unit and full-sized truck

    with full loads are used, which may overestimate the cost-

    competetiveness of roadside chipping. The challenge of this

    kind of hot supply chain is how to avoid un-productive

    waiting hours of a chippere

    truck combination. The work flow,including loading and unloading procedures and chipping

    itself, as well as the technology (chippers, self-unloading

    trucks) for roadside chipping supply chain are mature and

    tested. Thus, they probably include less development poten-

    tial than some other supply chains.

    The truck weight limit reduced the maximum volume for

    chips from logging residues by 20%. Lowering of the moisture

    content during storage offers an opportunity for reducing

    costs in chip truck transportation. Reduction of moisture

    content from 45% to below 35% allows for the use of the full

    load space capacity of 60 tonne chip trucks with the fuel

    parameters used in these calculations. The corresponding

    reduction of distance-dependent costs would be about one

    euro per m3 for a 100 km transportation distance. Drying may

    reduce the efficiency of chipping by slowing down the feeding

    speed of the chipper and increased storing time also causeshigher biomass losses [26]. On the other hand, drier chips

    tolerate longer storing times in later phases in the delivery

    chain. The fuel quality of drier chips is also better; dry fuel

    allows for a higher boiler capacity during peak consumption

    and causes less freezing-induced problems in feeding

    systems.

    The use of roadside chipping combined with train trans-

    portation sets high requirements for chip storage facilities at

    railway terminals. The surface should be paved to allow effi-

    cient re-loading and to prevent stones and other impurities

    from mixing with the fuel. A constantly used chip storage area

    should preferably be covered to avoid rain and snow during

    storing. The feasible storage time of moist chips is still onlya few weeks to avoid the risk of composting. Storing as chips

    at roadside storage is not feasible due to material losses,

    impurities and extra loading costs on top of the typical road-

    side chipping procedure, in which the chipper blows the chips

    straight into the trucks load space.

    5.2. Improving the overall efficiency of supply chains

    Delivery as chips is well suited to small plants that cannot

    afford costly end-facility chipping. Loose residue supply

    chains are the most cost-efficient for short distance trans-

    portation from the forest to fuel terminals equipped with

    stationary or mobile chippers or crushers, and into plants

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    31

    33

    0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190

    Transportation distance, km

    Totalcost,m

    -3

    1 Chip truck

    1 Chip truck (40 t)

    2 Chip train (40 t)

    3 Loose truck

    5 Bundle truck (40 t)

    1 Chip truck (dry)

    1 Chip truck (40 t,dry)

    Fig. 11e Total costs of supply chains of logging residues as functions of transportation distance to Uimaharju, when the

    truck maximum weight is reduced to 40 tonnes. The curves for scenarios for chain 1 Chip truck, the corresponding chain

    with dried chips (1 Chip truck (dry)) and Chain 3 Loose truck are plotted as reference.

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    equipped with an end-facility comminution unit. Trans-

    portationof loose material increases traffic andrequires larger

    storing area, and slow unloading times cause logistical prob-

    lems, especially in large bioenergy installations. Large plants

    are often located in city areas and typically have no place for

    fuel storage or even for end-facility comminution. Also,

    comminution may not be accepted in urban areas because of

    noise and dust problems.Terminal comminution of stumps usually takes place

    before long-distance transportation to increase the load

    density and to hasten the operations in the plant. Loose resi-

    dues and stumps canbe transported in similar trucks andboth

    fuel sources are well suited to logistic systems based on local

    fuel collection terminals. Thus, loose residue transportation

    may become more popular in Finland because of increasing

    useof stump wood. Some extra savings using the loose residue

    to terminal supplychaincould be gained by transportingsmall

    roadside storage piles during summer and autumn to larger

    fuel terminals to avoid the cleaning costs of rarely used forest

    roads. More efficient drying in large, open terminal storage

    facilities could also bring some extra benefits.Bundling increases efficiency in forwarding and decreases

    the need for storage area compared to loose residues. Bundles

    are fast to load and unload and they can be transported with

    normal timber trucks, which leads to better possibilities for

    avoiding empty truck driving than the use of trucks designed

    only for energy wood transportation. Current residue bundles

    require the most heavy mobile chippers or end-facility

    comminutionattheplant,whichhinderstheiruseinsmalland

    mediumsize plants. Plastic bundling stringsespecially require

    efficient chipping to avoid problems on conveyors at the plant

    that can be caused by loose pieces of strings. Compact and

    easy-to-handle bundles can reduce moisture content during

    storing, although decaying of bundle strings may cause prob-lems during repeated loading and unloading [18,27]. The

    overall efficient handling characteristics make bundles suit-

    able forterminal operations, resulting in lowest terminal costs

    (chipping, unloading and loading) compared to all studied

    supply chains (Fig. 10). If the bundle truck bears the same load

    as the chip truck, the bundle truck chain is competitive with

    the roadside chipping chain in cost efficiency. Improvements

    in efficiency can still be gained by optimizing bundle dimen-

    sions in respect to transportation units. In addition, some

    improvement can likely be gained in bundling productivity by

    lowering the bundler investment costs and possibly also by

    increasing the density of a single bale.

    Combining the bundling of residues together with chippingat the railway terminal and long-distance transportation as

    chips in railway wagons may be an interesting option for

    further development. The terminal chipping costs would

    probably be lower than those presented here, because it is

    faster to feed bundles into the chipper than it is to feed resi-

    dues. New bundler technology designed for thinnings is

    already in the demonstration phase [28], which opens new

    possibilities for energy wood logistics.

    5.3. Implications of results

    The growing needfor biofuels and the geographical imbalance

    between energy wood supply and demand will presumably

    increase the need for long-distance transportation of wood

    fuels within a few years. For long distances, railroad, together

    with waterways, offer the most cost-competitive and energy-

    efficient transportation means. Proper infrastructure of

    railway terminals for storing, comminuting and loading

    together with optimized technology and integration with

    industrial timber logistics can remarkably reduce the logistic

    costs of wood fuel supply. Also, the growing lack of skilledtruck drivers and demands for improving the safety of road

    traffic are creating additional pressures to move timber

    transport from roads to railroads. A major obstacle to

    increased use of railway transportation for energy wood in

    Finland is currently the lack of railway connections and

    terminals at energy plants. Thus, when designing any new

    large installations for wood energy production, railway and

    waterway connections are highly recommended to secure

    cost-efficient fuel supplies.

    The terminal phase in the supply chain causes extra costs

    compared to the straight chain from forest into plant; an extra

    stop causes extra unloading and loading of fuel and usually

    the total transportation distance increases. The fuel terminalcan be located near the end-users (distribution terminal) or in

    areas where the fuel sources are located (fuel collection

    terminal). Similar to Johansson et al. [27], the present study

    found that supply chains straight from the forest into the

    plant resulted in lower costs than those using the terminal

    and a combination of different transportation means for short

    and medium distances. However, in long-distance trans-

    portation the use of railway terminals for collecting fuels

    seems to reduce the supply chain costs. Terminals also

    provide possibilities for new logistical cost reductions due to

    specialized heavy-duty technology. Cost and energy-efficient

    railway transportation is well suited to the demands for

    reducing the ecological footprint in timber transportation[8],and the growing fuel prices are likely to improve the

    competitiveness of railway transportation against more

    energy-intensive means of transport.

    Terminals are needed for processing fuel sources like

    stump wood and recycled wood and for producing mixed

    biofuels like wood-straw and wood-peat mixtures before

    deliveries to power plants. Large energy generation units and

    increased competition forfuel resources are boosting the need

    for buffer storage for securing the fuel supply during peak

    consumption[29]and disturbances in energy wood markets.

    This is likely to lead to the increased use of terminals. When

    terminals are already needed for securing the fuel supply, it

    would be more logical to consider which terminal-basedlogistic chains are the most efficient for forest fuels, instead of

    just comparing terminal chains with the most cost-efficient

    supply chains.

    5.4. Conclusions

    This study suggests that fuel collection terminals linked to

    railway transportation have great potential as alternatives to

    truck transportation for distances even under 100 km, if any

    (buffer) storageis needed beforefinal delivery to the plant. The

    train-based supply chains still include remarkable develop-

    ment potential. Terminals also offer new business opportu-

    nities for improving the fuel quality and overall reliability of

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    the supply chain, and possibilities to divide and direct various

    qualities to the right consumers. Increasing transport

    volumes and synergies between fuelwood and industrial

    timber transportation open possibilities for new business

    models in terminal operations and wood supply services.

    The results of this study are only tentative and simulations

    are based on average Finnish conditions. Because of the

    missing empirical data, several cost factors were based onassumptions. This especially concerns the cost factors of

    railway transportation, the overhead costs of different supply

    chains, the costs of terminal operations (e.g., the costs of

    heavy mobile crushers), and the share of empty truck driving

    in energy wood transportation. The costs of train-based

    supply chains were based on the assumption that already

    existing stations could be used as loading terminals. Thus, the

    investment costs for terminals were not included. Even with

    the same productivity and cost parameters, the result can be

    different in other areas having different logistic infrastruc-

    ture, distribution of wood resources and energy plants, wood

    species (e.g., varying densities) and natural environment.

    Also, the dimensions and maximum load capacity of theavailable trucks can vary significantly.

    Supply costs and the availability of fuel can be successfully

    estimatedwith the logisticalmodeldeveloped in thisstudy.The

    model can be further developedusing several methods to better

    utilize the services of GIS; forexample, the transportation time

    sub-models could be developed to utilize the Digiroad data

    more efficiently, so that time estimates are calculated for each

    road section of the route and road classification data is used as

    an independent parameter, instead of using only the total

    distance between roadside storage and plant. Truck fuel

    consumption represents a large share of transportation costs.

    Thus, fuel consumption models, based on road classification

    andcurrent load, would helpto produce morepreciseestimatesof transportation costs and CO2 balances of different supply

    chains. Finally, the roadside costs of energy wood could be

    estimated using harvesting removal (m3 ha1), size of harvest-

    ing area, and average tree volume (in thinnings) as an inde-

    pendent value instead of using the average stand conditions.

    Acknowledgements

    The authors would like to thank Mr. Juha Laitila from Metla for

    providing the cost calculators for the study, and Dr. David

    Gritten and Ms. Brenna Lattimore for the linguistic revision ofthe manuscript. We also thank Prof. Timo Pukkala, Prof. Antti

    Asikainen and Mr. Heikki Parikka for their valuable comments

    on the manuscript. The article was finalized with the support

    of GLOENER project, which was funded by the Climbus

    Research Programme in the Finnish Funding Agency for

    Technology and Innovation, Tekes.

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