SIMULATING THE TRANSPORT OF COAL ACROSS CANADA - STRATEGIC ROUTE PLANNING

This paper describes the strategic problem of moving coal from mines in the west of Canada to power stations 3000 km away in the east. The western coal industry has a number of opportunities for expansion, but these depend on its ability to remain competitive. Transport accounts for over 60% of final selling price, so it is particularly important that this is organized efficiently. A simulation model was built to evaluate alternative routes across Canada. Many organizations are involved in this movement, so the model provides a range of information. This requires a substantial database to describe all aspects of operations. The information supplied by the model can help in making strategic decisions in a number of areas.