Log sort yard economics, planning, and feasibility

Abstract

This publication discusses basic marketing and economic concepts, planning approach, and feasibility methodology for assessing log sort yard operations. Special attention is given to sorting small diameter and underutilized logs from forest restoration, fuels reduction, and thinning operations. A planned programming approach of objectively determining the feasibility of establishing a log sort yard operation is recommended. This critical thinking will help develop the strategic, marketing, business, and operational plans to guide the development and operation of the log sort yard. Preliminary financial feasibility should begin early in the planning process to help focus efforts on potentially viable opportunities and save time, effort, and money from chasing poor investment scenarios. After options are narrowed, detailed resource assessment, markets, and financial analyses are done. Several critical factors are considered and evaluated for each log sort yard scenario. Although commercial log sort yards have a proven track record throughout North America, small community--based and government-operated log yards have had limited success. Serious consideration must be given to employing an experienced log sort yard contractor to operate and manage day-to-day operations. Several operational, policy, and judicial issues need to be resolved for successful operation of government and community log sort yards in the United States.

Citation

Dramm, John Rusty; Govett, Robert; Bilek, Ted; Jackson, Gerry L. 2004. Log sort yard economics, planning, and feasibility. Gen. Tech. Rep. FPL-GTR-146. Madison, WI: U.S. Department of Agriculture, Forest Service, Forest Products Laboratory. 31 p.