Container Space
Forest360
Forestry company innovating to make the supply chain more efficient
Forest360 director Marcus Musson says the decision was purely cost driven as fuel, tyres, and repairs and maintenance were all contributing to spiralling cartage costs.
“With rail, a train will use 10% of the fuel per tonne, compared to a truck. The switch to rail means there is less exposure to increasing fuel costs.”
Forest360 provides a harvesting and full forest management service to large and small forest owners throughout New Zealand. The cost of transporting logs to port falls on the forest owner, and Marcus says it represents a significant portion of the harvesting cost structure.
He says rail is a more efficient method of moving logs. The switch to rail provides a buffer for times when there is a hold-up at Port Taranaki (in New Plymouth), as logs can be held rail-side. This means there is no need to pause harvesting while the port clears.
The company manages 12 logging crews operating around the Whanganui district and more than 50 nationwide, and Marcus says there is potential to scale up the number of logs carted by rail. Currently the logs are transported with other cargo on the regular freight service. There is a limit on the rail capacity available, with the 8 truck and trailer loads fitting onto 6 rail wagons.
“In a couple of months, we hope to secure more wagons so we can send a logging train to the port in New Plymouth. That’s 12 wagons of logs, weighing 530 tonnes.”
Business case for setting up rail handling facility
The new loading operation in Whanganui East was rebuilt on an existing site in Eastown Rd, with Forest360 aiming to recoup their investment in three years. Marcus says the setup cost has been funded by Forest360, making them more attractive to prospective forest owners.
Key factors in the rail vs road economic equation are a) the distance to port and b) hilly terrain. Marcus says the matrix needs to be ‘long rail cartage and short truck cartage (to the rail handling facility).’
Forest360 has access to multiple rail handling facilities around the Whanganui, Manawatu and Wairarapa and Marcus says many forests are within a 30km range.
“It doesn’t make sense to cart logs by rail if it is less than 180km to port, and rail is more efficient if there is a geographical issue like the Rimutaka’s.”
Logging trucks on road when there is a railway line going to the same destination
“The biggest benefit to trucks being off the road will be to the people living and driving through the main arterial routes in Whanganui, Pātea, Hāwera, Normandy, Eltham, Stratford, Midhurst, Inglewood, Egmont Village, and New Plymouth.
Generating work for local businesses
The reconfigured rail handling facility has a new and modified 20 foot container weighbridge, supplied and outfitted by Container Space NZ.
“Container Space NZ provided a seamless solution. We rang them and said, “this is what we need” and they rang back and said, “this is what we can do.” The new shipping container workshop office is secure, with two separate compartments for an office and the weighbridge, and has WiFi and air con.
“Container Space NZ transported the modified 20 foot shipping container to our Whanganui location, and then hiabed it into place.”
Loading and weighbridge providers Weighing and Measuring Solutions NZ Ltd run the weighbridge.
Transport operator Total Transport/ Total Log Haulage provide the trucking service and manage the yard.
Rail freight operators KiwiRail transport the logs to the port in New Plymouth.
Marcus says the new rail yard offers supply chain efficiencies and creates work for local businesses.
“It’s just another positive forestry story.”
