Wood chip supply from forest to port of loading – A simulation study

Abstract Maritime transport facilitates trade with bioenergy feedstocks in the Baltic region. The study aims to provide guidance on efficient organisation of logistics at the port of loading for maritime transport of wood chips. The economic effects of using an intermediate terminal as opposed to direct delivery to port were studied, as well as the relationships between production capacity and storage capacity. Discrete-Event Simulation was used to analyse scenarios where a variable part of the volume is handled through the terminal. The total supply cost, including chipping, transportation, storage and handling at inland terminal and port, as well as loading of the ship, varied between €6.73 and 7.85 per MWh in the different scenarios. The volume passing through the terminal had a significant influence on total cost, showing a supply chain cost increase of €0.78 per m3 (approximately €4.67 per dry tonne) for material delivered through the terminal. The difference in storage cost between port and inland terminal determines whether the terminal volumes affect costs, which was shown by a sensitivity analysis. Even so, the terminal offers a possibility to manage uncertainty, both in production rates and in shipping date, and influences the supply network. The main advantage of using a simulation technique for planning production and logistic flows is the visualisation of risks and margins.