Evaluating the Effects of Improving Forest Road Standards on Economic Value of Forest Products

Akay, Abdullah E.; Serin, Hasan; Sessions, John; Bilici, Ebru; Pak, Mehmet · 2021 · DOAJ

DOI: 10.5552/crojfe.2021.851

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Summary

This study evaluates the economic impact of upgrading forest road standards in Turkey, specifically analyzing how improved infrastructure affects the total net profit of forest products. The research is motivated by the prevalence of low-standard Type-B secondary forest roads in Turkey, which restrict vehicle maneuverability, limit truck load capacity, and necessitate frequent major repairs. These constraints significantly inflate transportation costs, which constitute approximately 40% of total forest management expenses. The authors aim to determine whether the initial investment in road improvements yields long-term economic benefits by enabling the use of high-capacity logging trucks. The study was conducted in three Forest Enterprise Chiefs (FECs) within the Mustafakemalpaşa Forest Enterprise Directorate in Bursa, Turkey. The researchers utilized the NETWORK 2000 software, a heuristic optimization tool, to model forest transportation networks. Digital road network data were generated using ArcGIS 10.4, with road conditions assessed via field observations and a scoring matrix based on gradient, curve count, surface, and subgrade quality. Two scenarios were compared: Case 1 involved optimizing routes for existing 15-ton trucks on current low-standard roads, accounting for transportation and annual major repair costs. Case 2 modeled transportation using 29-ton high-capacity trucks on roads upgraded to higher standards (wider subgrades, larger curve radii, and improved surfaces), accounting for transportation costs, one-time improvement construction costs, and annual maintenance. Net present value (NPV) calculations were performed over a 30-year period, representing the average life cycle of forest roads, using a 12.25% interest rate. The results demonstrated significant economic advantages for the improved road scenario. Transitioning to high-capacity trucks on upgraded roads reduced annual transportation costs by 46.85% compared to using low-capacity trucks on existing infrastructure. Although road improvement required substantial initial capital expenditure, the total road costs over the 30-year lifecycle decreased by 4.64% due to reduced maintenance and repair needs. Consequently, the total net profit of forest products increased by 473,340 Euro in the improved scenario compared to the baseline. The analysis confirmed that while other forest operation costs remained constant, the reduction in transportation and road maintenance expenses drove the profit increase. The findings indicate that improving forest road standards is economically viable despite higher upfront construction costs. The study concludes that upgrading infrastructure allows for the efficient use of larger logging trucks, which drastically lowers long-term transportation and maintenance expenditures. This approach maximizes the net profit of forest products and suggests that forest management planning should integrate road standard improvements with transportation logistics to optimize economic outcomes. The research provides empirical evidence supporting infrastructure investment as a strategy to enhance the profitability of timber production in regions with inadequate road networks.

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