Regional logistics centre: Application to Eastern Canada

Abstract

The recent difficulties of the wood industry in Canada (decline of the pulp and paper sector, decline in available fiber volume, 2008–2009 housing crisis, etc.) and mounting pressures for a more efficient use of natural resources make it all the more relevant to examine how to make better use of the forest resource. In this regard, the creation of sorting and consolidation yards, distinct from forest sites and mills, offers multiple opportunities for value maximization and cost minimization. This article aims to better understand the interaction between a forest logistics center and a complex forest network while exploring several geo-economic factors favoring the use of such a structure. A profit maximization model is proposed and applied for a case study in the Mauricie region of Quebec, Canada. The results showed that a logistics center would increase the profit by $0.90 (Canadian dollars) for each cubic meter of wood available for harvesting, notably through an increase in the volume of wood processed into finished products of up to 83,000 m3 annually (or 4.6%). A dynamic effect of up to 17% was also observed between the operation of a processing yard and the use of load returns.