Karttunen K., Lättilä L., Korpinen O.-J., Ranta T. (2013). Cost-efficiency of intermodal container supply chain for forest chips. Silva Fennica vol. 47 no. 4 article id 1047. 24 p. Highlights• The combined availability and simulation study method obtains more realistic results for use in practical decision-making in supply chain management.• The total costs of forest chips with intermodal composite container supply chains were lower than traditional options in all scenarios.• The most advantageous way to expand the procurement area for forest chips is either to use composite container trucks or start using train transportation instead of trucks for procurement from longer distances. AbstractCost-efficient solutions of supply chains for energy wood are required as part of endeavors to reach targets for renewable energy utilization. Long-distance railway transportation is an interesting area of research, especially for high-volume sites where the forest-to-site distance is considerable and rail facilities already exist. The aim of the study was to compare the cost-efficiency of an intermodal container supply chain and traditional multi-modal supply chain with corresponding direct truck logistics for long-distance transportation of forest chips. In the study, site-dependent information for forest biomass transport was integrated into a simulation model to calculate the cost-efficiency of logistic operations related to forest chips transportation in central Finland. The model was tested with several truck and railway transportation scenarios for varying demand of forest chips at the case power plant. The total costs of traditional supply chains were found to be 5-19% more expensive than container supply chain scenarios. The total unit costs of forest chips varied between 15.3 and 20.0 €/MWh depending on the scenario. It is concluded on the basis of the scenario study that intermodal light-structure container logistics and railway transportation could be developed as a viable option for large-scale supply of forest chips.

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Highlights• Small-diameter delimbed wood from Scots pine stands delivered directly for energy use was the most cost-efficient option in terms of the total supply-chain cost in comparison with corresponding industrial use or a whole-tree supply chain for energy use.• Forest-management and harvesting decisions influenced the removal of forest biomass and stumpage price as well as the total supply-chain costs for forest biomass.• The greatest cost-reduction potential (10.0%, 4.00 € m -3 ) was achieved for the delimbed energy wood's supply chain in the regional case of South Savo in eastern Finland. AbstractCombining research into forest management stand conditions and wood supply chain processes has been missing from earlier forestry studies. There is a clear need to develop more cost-efficient small-diameter wood production, harvesting and transportation methods from first thinning, which could be used for either industrial or energy wood purposes. This study considers the total cost for small-diameter wood originating from young Scots pine (Pinus sylvestris L.) dominated stands. Pine pulpwood is the most harvested and most used roundwood assortment, use of which is expected to rise following new pulp-mill investments in Finland. In addition, utilisation of smalldiameter trees directly for energy purposes has been increasing steadily in recent years. The aim of the study was to determine the cost-reduction potential of alternative forest management options and supply chains for small diameter-wood in the regional case of South Savo in eastern Finland. The total costs of three distinct scenarios were studied on the basis of forest management, firstthinning harvesting methods, and transportation: 1) industrial wood, 2) delimbed energy wood, and 3) whole trees for energy purposes. The cost-reduction potential for energy-wood supply chains from first thinning was compared to the industrial supply chain. Small-diameter delimbed wood delivered straight for energy purposes was found to be the most cost-efficient as far as the total cost of the supply chain is concerned. More cost-efficient small-diameter wood processes can be found by linking forest stand simulations with supply chain analysis.

New and cost-efficient methods for use in supply chains for energy wood should be found, to reach the targets of the renewable energy utilisation set by the European Union. The longdistance waterway transportation of forest fuels should be thoroughly investigated, especially in areas where the transport distance is long and waterways could provide a feasible method of conveying forest fuel. In comparison to transport of forest chips by truck, barge-based waterway transport shows a competitive advantage due to the larger loads and higher bulk density of chips it allows.The cost-efficiency of waterway transportation operations related to forest chips in Finland's Lake Saimaa region was studied using practical demonstrations and discrete-event simulation. The varying demand for fuel wood in three separate bio-power plants on the Saimaa lakeside (near the cities of Varkaus, Mikkeli, and Savonlinna) was addressed in several barge transportation scenarios. Finally, the economy of barge transportation was compared to the economy of truck transportation as a function of transportation distance and in terms of the annual performance of the transportation methods examined.The waterway supply chain of forest chips was cost-competitive to road transport by truck after 100-150 km. According to the simulation study, the most economical waterway transport options were based on fixed barge system and shift-independent harbor logistics where loading and unloading of barges were carried-out with a wheeled loader and a belt conveyor. Total supply chain costs including the best waterway logistics from road side storage to power plant ranged from €10.75 to €11.64/MWh in distances of 100-150 km by waterways. The energy-density of forest chips in the barge load was found to be, on average, 25% higher than that in truck hauling, because of the better compaction of chips. Waterway transport is a viable option for long-distance transportation of forest chips in Eastern Finland.

Finnish forest companies aim to produce biodiesel based on the Fischer-Tropsch process from forest residues. This study presents method to evaluate biomass availability and supply costs to the selected biorefinery site. Forest-owners’ willingness to sell, buyers’ market share, and regional competition were taken into account when biomass availability was evaluated. Supply logistics was based either on direct truck transportation deliveries from forest or on railway/waterway transportation via regional terminals. The large biomass need of a biorefinery demanded both of these supply structures, since the procurement area was larger than the traditional supply area used for CHP plants in Finland. The average supply cost was 17 €/MWh for an annual supply of 2 TWh of forest biomass. Truck transportation of chips made from logging residues covered 70% of the total volume, since direct forest chip deliveries from forest were the most competitive supply solution in terms of direct supply costs. The better supply security and lower vehicle capacity needs are issues that would favour also terminal logistics with other raw-material sources in practical operations. One finding was that the larger the biomass need, the less the variation in biomass availability and supply costs, since almost the whole country will serve as a potential supply area. Biomass import possibilities were not considered in this study

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As computing power increases, more complex computational models are utilized for biomass supply system studies. The paper describes three commonly used modeling methods in this context, geographic information systems, life-cycle assessment, and discrete-time simulation and presents bibliometric analysis of work using these three study methods. Of the 498 publications identified in searches of the Scopus and Web of Science databases, 17 reported on combinations of methods: 10 on life-cycle assessment and geographic information systems, six on joint use of life-cycle assessment and discrete-time simulation, and one on use of geographic information systems jointly with discrete-time simulation. While no articles dealt directly with simultaneous use of all three methods, several acknowledged the potential of this. The authors discuss numerous challenges identified in the review that arise in combining methods, among them computational load, the increasing number of assumptions, guaranteeing coherence between the models used, and the large quantities of data required.Discussion of issues such as the complexity of reporting and the need for standard procedures and terms becomes more critical as repositories bring together research materials, including entire models, from various sources. Efforts to mitigate many of modeling's challenges have involved phase-specific modeling and use of such methods as expressions or uncertainty analysis in place of a complex secondary model. The authors conclude that combining modeling methods offer considerable potential for taking more variables into account; improving the results; and benefiting researchers, decision-makers, and operation managers by producing more reliable information.

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