Minimising Transport Costs through Optimal Upgrading of Roads and Loading Zones

Infield to zone transportation with agricultural tractor-trailer units may incur costs of up to nine times those of long distance truck-tractor units. This necessitates the implementation of an optimal cane extraction road network. This paper describes formulas derived to evaluate whether the construction of additional roads and loading zones could enhance a farm’s profitability. The formulas were subsequently applied in a case study typical of a 250 ha commercial sugarcane farm in South Africa, to quantify the technique’s economic value and to demonstrate additional practical constraints. Transport savings were calculated at R23 000 per annum, and costs incurred on capital expansion was recovered after six crop cycles (ratoons). The results suggest that significant reductions in transport costs can be achieved in the South African sugar industry, especially by increasing the number of loading zones on existing roads. The case study did, however, identify several other factors, such as topography, cash flow requirements and vehicle utilisation issues that may alter road upgrading decisions. This work has been based on similar analyses currently under way in the South African timber industry.