Optimal transportation of logs and location of quay facilities in coastal regions of Norway

Abstract

Transportation of timber in coastal regions of Norway is challenging. Transport by ship and availability of appropriate quay facilities are of major importance to increase the harvesting and use of wood, and to secure an efficient and flexible transportation system. An optimisation model is developed that finds the most efficient way to transport logs from supply to demand points and the associated quay locations by minimising total system costs. The influence of co-operation with other industries regarding investment and operation of quay structures is also investigated. We apply the model to a case including 258 municipalities along the Norwegian coast. We present both the model and results of the case study under different scenarios. The analysis shows that the major cost driver is truck transport, and that road quality is paramount, both for the total costs and for optimal location of quay facilities. The results of the scenario analysis also illustrate the trade-off between quay investment costs, number of quays, and truck transport. The model will be a key tool for both quay facility location planning and transportation planning in the Norwegian coastal forestry industry. The model is flexible and robust and can easily be adapted to new regulations and parameters.