Integrated Timber Allocation and Transportation Planning in Ireland

Abstract

Coillte Teoranta, the Irish Forestry Board, was established as a forestry company in 1989, with a mandate to operate in forestry and related activities in a commercial manner. The company took over the assets of the state Forest Service and now owns and manages approximately 400,000 ha of forest. Coillte harvests and sells timber to the private wood processing industries in Ireland. Coillte harvested approximately 1.4 million m3 of timber in 1990. By 2010 this annual harvest volume will increase to 3.5 million m3. In order to manage the harvesting and transportation operations efficiently, a national timber sales allocation procedure was developed by the Forestry Department of University College, Dublin. The procedure uses Coillte's databases on harvest volumes, subdivided into supply categories; on mill demands, specified by demand categories; and on the national transportation network, including road, rail and water transport modes. The developed operational procedure was used as a decision-making tool during the allocation of the 1991 sales volumes. A comparison of the actual versus the optimized 1990 allocation strategy identified opportunities for large-scale savings. In addition to its main function as a decision-making tool for the annual sales allocation, the model has been used for other strategic and tactical planning analyses, such as the influence of new mill location on transport costs, the impacts of a timber processing industry rationalization programme on the industry as a whole and on individual mills, the feasibility of timber transport by rail, the selection of suitable ports for timber export, and the impact of road construction and improvement programmes on national timber transport strategies. The model has been successfully linked with the company's ARC/ INFO Geographic Information System which extends the post-allocation analysis and interpretation capabilities, and combines the output with existing information systems. A further integration of the procedure in the management decision-making processes in the company will result in increased cost saving opportunities.