Head to the canal barge north of the Digsite. There, speak to barge foreman in front of the barge. They are in the final stages of preparation, but there are a few minor adjustments he'd like to make to the barge before getting the crew ready. He requires a sturdier type of wood to keep the barge afloat; magic logs will not do, since they had peculiar side effects (which you will learn later). He will require a high-grade wood found only in the distant Western lands - redwood. The barge foreman will instruct the player to talk to the Sawmill operator at the Sawmill north-west from the barge.