Staff Papers Series P85-17 December 1984 THE TRANSPORTATION OF MINNESOTA FOREST PRODUCTS by Charles Eldridge Jerry Fruin Department of Agricultural and Applied Economics University of Minnesota Institute of Agriculture, Forestry and Home Economics St. Paul, Minnesota 55108
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P85-17 December 1984 by Charles Eldridge Jerry Fruin
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Staff Papers Series
P85-17 December 1984
THE TRANSPORTATION OF MINNESOTA FOREST PRODUCTS
by
Charles Eldridge
Jerry Fruin
Department of Agricultural and Applied Economics
University of MinnesotaInstitute of Agriculture, Forestry and Home Economics
St. Paul, Minnesota 55108
THE TRANSPORTATION OF MINNESOTA FOREST PRODUCTS
by
Charles Eldridge
Jerry Fruin
December 1984
Financial support for this report and relatedresearch was provided, in part, by the:
Minnesota Department of TransportationMinnesota Department of Agriculture
Special acknowledgement to the firms who cooperated in thisresearch and to Jack Schmidt for his assistance.
The University of Minnesota is committed to the policy that allpersons shall have equal access to its program, facilities,and employment without regard to race, religion, color, sex,national origin, handicap, age or veteran status.
TABLE OF CONTENTS
Pages
GLOSSARY OF TERMS ...................... *...... .............. 2-3
Forest Industry Facts and Figures.................. 1113
Pulpwood Production Determined from Mill Receipts...... 14-17
RESULTS OF THE 1981 MINNESOTA FOREST INDUSTRY SURVEY........ 18-28
2
GLOSSARY OF TERMS
Bolt - one 100" log.
Boxboard - cardboard.
Chips - Chips in this report refer to whole tree chips in thewoods. Trees of pulpwood size are processed by whole treechippers as part of the logging operation. Anotherdefinition of chips is "primary wood user's mill residuethat has been chipped". This type of material is producedfrom slabs and edgings in the lumber industry and hasalready been accounted for in forest production.
Concentra-tion Yard - an assembly area for incoming roundwood by truck for
transhipment by larger trucks or by rail.
Cord - traditionally a 4' x 4' x 8' volume measurement, but sincethe conversion to 100" roundwood, a cord is usuallydetermined by weight.
CordWeight - the weight of a cord is affected by such factors as wood
species, season, time since cut, and soil moisture.Estimates range from 2.25 to 2.35 short tons per cord.
CorrugatingMedium - cardboard.
Hardboard - wood fibers are separated in a pulping process prior tomanufacture into particle board and insulation. Hardboardmills are categorized as pulp mills.
Pulpwood - wood cut and prepared primarily for processing intowoodpulp. Usually translates as 100" roundwood or aschips.
Residue - the by-product from saw mills, cooperage mills, and otherwood processing plants. Residue includes slabs, edgings,veneer cores, sawdust, wood flour, and chips manufacturedfrom slabs, edgings, and veneer cores. Can be used toproduce woodpulp or burned to produce energy.
Roundwood - synonymous with log. In some uses, though, logs must bewithin a given set of lengths and diameters.
3
Saw Log - a log considered suitable in size and quality forproducing sawed timber.
Tree LengthLogs - synonymous with tree-length timber. Harvested trees that
have had their tops and branches removed but have not beencut to shorter lengths.
Waferboard- synonymous with oxboard. Wood chips are mixed with abonding material to produce a plywood substitute. Insteadof peeling high quality timber for plywood, a lowerquality timber can be used with much higher woodutilization.
Wood Pulp - wood fibers that have been separated by mechanical orchemical processes for use in the manufacture of paper,textiles, and many other products. Usually made from 100"roundwood or chips. Pulp is typically transported in baleform.
Wood PulpProcesses - Refiner Groundwood
Dry Process RefiningThermal MechanicalStone GroundwoodKraft Pulping
4
THE SURVEY
Survey Objectives
The 1981 forest products industry survey was conducted with the
following objectives:
1. To determine Minnesota forest product industry receipts of raw
materials by county of origin.
2. To determine Minnesota forest product industry shipments of raw or
manufactured products by destination.
Industry Overview
The Minnesota forest product industry consists of approximately 1,300
loggers, 800 solid wood manufacturers, nine major woodpulp mills, and four
waferboard plants.* The 1981 forest products survey obtained data from 21
facilities that are either divisions of the woodpulp and waferboard
companies listed in Table 1 or are located out of state and transport
significant quantities of forest products in Minnesota. Great Lakes Forest
Products, Thunder Bay, Canada and Consolidated Papers, Wisconsin Rapids,
Wisconsin are not identified in Table 1 but are major recipients of
Minnesota produced pulpwood. Minnesota Forest Industries (MFI) is an
organization of nine companies that are presented in Figure 1. Certain-
Teed is not included in the MFI data and Consolidated Papers, the Wisconsin
based firm that receives Minnesota pulpwood, is included. Figure 1 is a
reproduction of the annual factsheet published by Minnesota Forest
Industries, Inc.
The 1981 survey obtained data from the facilities illustrated in Figure
2. The forest products industry survey treated the facilities identified in
Figure 2 as a separate origin or destination despite the data reporting
format used by the firm.
*George Banzhaf and Company, Minnesota Timber Resources-Prospects for Development.
Milwaukee, November 14, 1980.
5
Table 1. Active Pulpwood Mills and Waferboard Plants in Minnesota byLocation and Capacity as of 1982.
Company Location Capacity
Woodpulp Mills Tons per 24 hours
Blandin Paper Co. Grand Rapids 300Hennepin Paper Co. Little Falls 75Boise Cascade Corp. Internation Falls 920Potlatch Corp. Cloquet 475Superwood Corp. Bemidgi- 100St. Regis Paper Co. Sartell 385Superwood Corp. Duluth v 350Conwed Corp. Cloquet 50Certain-Teed Corp. Shakopee 80
Source - Pulpwood Production in the North Central Region,1982, James Blythand W. Brad Smith, North Central Experiment Station Bulletin NC-79.
6
FOREST INDUSTRIES |AFACTS AND FIGURES F^ LS 0 -C(1982 Statistics) EMIJI TOFTr
DEER RIVER GRAND RAPIDS *
DULUTH
Employment CLOUETrrTLogging (full, part time) 4,000 RAINERO 0Pulp, paper and board' plants 6,000 LTTLE FLLSOLumber mills, sawmills, planing mills,
other wood manufacturers 9,000o SARTELL Furniture and fixtures 2,500 ST. CLOUo Allied paper products ST. UL
(converters, recyclers, box and *eus ocontainer manufacturers, etc.) 25 300E
TOTAL: 46,
Amount of Forest ProductsHarvested In Minnesota (in cords)"Pulpwood 1,484,300 The forest products industry is represented by theSpecialty wood products 100,100 Minnesota Forest Industries, a group composed ofPosts 12,800 nine leading companies either headquartered or withPoles 30,500 regional offices in the state. These companies andPiling 2,100 the products they produce are identified belowFuelwood 1,520,000Lumber, logs and bolts 515,800 Btandn Paper 6 Wood Products Companies (Grand Rapids)Railroad ties 25,000 Lightweight coated publication grade paper and waferboard.
TOTAL: 3,690,600 Boise Cascade Cop. (International Fals, Big Falls)Structural lumber, hardboard siding, xerographic paper,coated release paper, business forms bond.
Vaue of Forest Products C ohampon Corp.(Eagan, MinneolisManufactured In Mlnnesota S Coudo, St PaulbCorrugated containers, folding cartons, flexiblePulp and paper $ 674,256,000 packaging, office equipment and prnting papers,Board 120,277,000 building products (plywood and dimension lumber),Lumber, logs, bolts 38,067,000 boxboard and corrugated medium.Christmas trees, wreaths, etc. 11,929,000 Consadated Paper. Inc. (Tofte)Specialty wood products 20,390,000 Uigh ht coated papesPosts, poles, piling 5,360,000Fuelwood 61 .0 ort Paneldbod Co. (Bemidji)Railroad ties 2.068,000 Waferboard.By-products, mill residue 15,541,000 Potatch Corp. (Cloquet, Bralnerd, Bemidji, Cook)Value of secondary Oriented strand board lumber printing and business paper.
manufacturing 1,594,900,000 Raala Timber Co. (Deer River Big Fork)TOTAL: $2543,848,000 Lumber.
St. Regis Corp. (Sartell, ittle Fals)'(Waboard, orientd strand bord, hardboard, Lightweight coated paper and heavyweight uncoatedhardboard aiding)KM4*mw of wood cut (128 cu. ft.)paper.
Much of the information obtained was corporate in scope, requiring detailed
breakdown of intra-company and inter-company transfer. The resulting
format is useful for transportation modeling but is less related to secon-
dary data like Minnesota production of pulpwood.
This is best illustrated by the example in Figure 3. The company in
this example consists of two divisions, Div A and Div B, and a major
woodyard, WI. The woodland manager reports total roundwood receipts from
the forest that convert to 170,000 tons (the standard reporting unit is a
cord). Corporate level data indicates roundwood receipts that convert to
175,000 tons. Both could be correct given the definition of receipts that
is used. For transportation modeling purposes, each has provided only a
piece of the required data. Further examination may show that the woodland
manager had correctly totalled the roundwood for company receipts at Div A
and Div B that came directly from the forest or through the woodyard
(movements labelled M1, M2). He did not subtract M3 flows that went to
another company directly from the forest through W1. The corporate level
report may have failed to note that movement M4 came from another firm and
not directly from the forest or that movement M5 came from Div A. A large
woodyard, specifically one that is used as an intermodal transfer point, is
treated as a separate survey point. Treating Wi as a separate point yields
the flows in Table 2.
9
OTHER COMPANY
-. \ <M4
ml M/ DIvISION A
Ml1 OODYARD
(Wi) M7 /MS
DIVISION B
M2 M2
FIGURE 3. ROUNDWOOD RECEIPTS AND
REPORTED VOLUME - EXAMPLE.
Table 2. Commodity Flow Example for Minnesota Forest Products (in tons)
Figure 3 Movement Div A Div B Woodyard Total
Direct from forest (M1) 100,000 100,000Direct from forest (M2) 20,000 50,000 70,000Woodyard to Other (M3) 30,000 30,000Other to Div A (M4) 15,000 15,000Div A to Div B (M5) 20,000 20,000 40,000Woodyard to Div A (M6) 40,000 40,000 80,000Woodyard to Div B (M7) 30,000 30,000 60,000
Out of state origins are divided by thecompass direction of origin, i.e. "arrivingin Minnesota from" the North, South, East, orWest. In state origins are by counties withthe exception of the Twin Cities and an entryfor Minnesota (statewide). Seven commoditiesare presented across a three page horizontalaxis divided into two modes with the grandtotal appearing on the third page.
Out of state destinations are divided by thecompass direction of the destination, i.e."leaving Minnesota by the" North, South,East, and West. Great Lakes Forest Productsin Canada ships through Minnesota from theNorth destined for other U.S. markets. In-state destinations are by county with theexception of Minnesota (statewide), TwinCities, and Unknown. The horizontal axisconsists of thirteen commodities divided intotwo modes with footnotes for some rail-bargecombination shipments. The grand totals arepresented on the fourth page of the table.
19
FOREST PRODUCTS INDUSTRY RECEIPTS - 1981
TOTAL 6,124,412 TONS
FOREST PRODUCTS INDUSTRY SHIPMENTS - 1981
TOTAL 2,817,204 TONS
FIGURE 7. FOREST PRODUCTS INDUSTRY SURVEY RECEIPTS & SHIPMENTS- 1981
20
Several plants have been referred to in the previous text that either
were not producing during the survey or were not up to full capacity.
These plants include Potlatch Corp.'s Cook and Bemidgi waferboard plants
and the complete impact of the Blandin Wood Products Corp. expansion at
Grand Rapids.
Table 5 presents Minnesota receipts by origin and mode. The total for
roundwood and wood chips in the survey format is 3,911,693 tons. This
represents material in these categories that has been transported from the
forest to the plant, between company plants, and from other plants and
cannot be compared with the 1981 entry in Table 4 of 2,921,000 tons which
represents actual consumption of pulpwood by the firms in the survey.
Residue is not included in the county of origin breakdown provided by the
North Central Experiment Station but a statewide estimate can be obtained
by subtracting the pulpwood entry for 1981 in Table 4 from the corres-
ponding entry in Table 3 (which does include residue) or: