Articles containing the keyword 'private floating'
Category : Article
In Finland roundwood is floated either privately or co-operatively. In the later, a co-operative floating association is established to operate floating. The association is compulsory association of those enterprises who want to have wood floated along the floating routes of the area. It is favoured when the number of enterprises and the wood to be floated is large. In addition, costs are lower than in private floating.
Floating in Lake Saimaa area in Central Finland can be divided into Iso-Saimaa, where floating is private, and into Saimaa Water System, where floating is operated by a co-operative floating association. It has been suggested that adoption of co-operative floating in Iso-Saimaa would be to the common interest. This study aimed at finding out if co-operative floating influences the transport costs, and if co-operative floating increases competition of roundwood by forest industry companies.
According to the study, the costs of most enterprises would decrease. The total decrease in costs would amount to 65 million Finnish marks annually, about 20% less than the present costs. The change of organization would not alter the competitive relationship in buying roundwood. On the other hand, it would seem that co-operative floating would be less flexible than private floating. The management of a large organization, whose effective operation time would cover only a part of the year, would meet with some difficulties. Also, co-operative floating would reduce competition among enterprises.
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Roitto,
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