Cost evaluation of an integrated sawlog-pulpwood-fuelwood site on Bonavista peninsula, Newfoundland

• Main Author: Snow, Monica Anne
• Format: Thesis
• Language: English
• Published: Memorial University of Newfoundland 1984
• Subjects: Newfoundland
• Online Access: https://research.library.mun.ca/7983/; https://research.library.mun.ca/7983/1/Snow_MonicaAnne.pdf; https://research.library.mun.ca/7983/3/Snow_MonicaAnne.pdf

This evaluation involved the compiling of all pertinent cost information and the development of a model in order to forecast the annual operating cost of a proposed integrated sawlog-pulpwood-fuelwood site on Bonavista Peninsula, Newfoundland (Department of Forest Resources and Lands, Forest Management Unit 2). It is an attempt to follow a systematic approach to cost analysis of a proposed expanded forest industry in the area which involves a centralized chip processing operation. Production and transportation parameters are specified in the series of mathematical equations which comprise the model. The influence of varying wood delivery form, product selection, and transportation mode on the annual operating cost can be examined with use of the model. -- The aspect of long distance product delivery to market was examined for three modes of transportation: (1) marine (2 barge - 1 tug system); (2) rail ("piggy-back" method of rail shipment) and (3) road (5-axle truck-semi-trailer combination). Within the production restraint set by the annual allowable cut which places a limit on maximum volume of wood processed, it was concluded that road transport was the most economical mode. -- Potential revenue from the proposed operation is tabulated and intangible benefits expounded. This was done to view costs and benefits in perspective of one another. The operation on a purely economic basis is not feasible under existing conditions and existing markets.