Logging & Sawmilling Journal - March/April 2017

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March/April 2017

SOLID BUSINESS MOVE INTO LOGGING for Munden Ventures

FLYING HIGH in steep slopes with Falcon Winch Assist GOLD ISLAND FOREST PRODUCTS: Custom cutting in the B.C. Interior WITH THIS ISSUE… The Edge!

B.C. SAW FILER’S: Advance coverage SPECIAL INSERT: Circular Saw Guides Wallchart

FEATURES March/April 2017 Volume 48 • No. 2 Editor Paul MacDonald Contributing Editors Jim Stirling Tony Kryzanowski George Fullerton Tech Update Editor Tony Kryzanowski

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On the Cover:

When Munden Ventures Ltd. of Kamloops, B.C. moved into logging, they made some well-thought out equipment purchases, and established solid supplier relationships with the B.C. John Deere dealer, Brandt Tractor, and Woodland Equipment, the Hyundai dealership.

Munden Ventures sub-contacts out its processing (pictured on the cover) to Randy Janzen who is a Hyundai/Waratah guy (Cover photo courtesy of Randy Janzen).

4 Spotlight – More taxes

40 From hobby sawmill

Alberta has recently rolled out a carbon tax, and the federal government has proposed a national minimum price on carbon. How will these additional costs impact the Alberta and Canadian forest industries, considering all parts of the industry, from logging right through to the sawmill, are significant energy users?

The Kanigan Family in B.C. may have started Gold Island Forest Products as a hobby sawmill, but these days the mill has been ramped up considerably—with numerous upgrades—and now specializes in producing high quality custom cut cedar/ fir lumber and timber products.

for the forest industry?

to workhorse

Canada North 10 Solid business move 48 Resources Expo show into logging

Munden Ventures of Kamloops, B.C. got involved in logging more by accident than by design, but it’s turned out to be a solid business decision.

18 Flying high in steep slopes with the Falcon

B.C.’s Hyde Creek Logging has found the Falcon Winch Assist system from New Zealand-based DC Equipment to be a great fit with the logging it does on steep slopes on northern Vancouver Island.

26 B.C. Saw Filer’s Preview:

The upcoming B.C. Saw Filer’s Association AGM and trade show remains a solid venue to share knowledge and resources for all those involved in the trade.

36 West Fraser takes

over top lumber producers spot from Canfor

WOOD MARKETS’ annual survey of top Canadian lumber producers highlights the ongoing healthy market conditions coupled with mill expansions—and a change in the country’s top lumber producer, with West Fraser coming out on top, beating out Canfor.

coming up in May!

If you’re looking for equipment, machinery, products or technology in the forest and resource sector, the Canada North Resources Expo show—being held May 26-27 at the CN Centre in Prince George, B.C.—is the place to be, and Logging and Sawmilling Journal will there front and centre, as the Official Show Guide.

56 The Edge

Included in this edition of The Edge, Canada’s leading publication on research in the forest industry, are stories from the Canadian Wood Fibre Centre, Alberta Innovates, FPInnovations and Alberta Agriculture and Forestry.

66 The Last Word

Canada should focus on EU markets with the new Comprehensive Economic Trade Agreement (CETA) deal, while we wait for Trump’s take on softwood lumber, says Tony Kryzanowski.

DEPARTMENTS

Calendar............................................ 8 Tech Update.................................... 50 Suppliernewsline............................. 62 Classifieds....................................... 64 Ad Index / Subscriptions.................. 65

Logging & Sawmilling Journal - March/April 2017

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spotlight

CLIMBING COSTS for forest industry

Going by B.C.’s experience with a provincial carbon tax, the Canadian forest industry is looking at higher costs with a national carbon tax proposed by the Trudeau government on the way.

By Tony Kryzanowski

I

n recent years, the Canadian forest industry has two new words in its vocabulary; they are either ‘carbon levy’ or ‘carbon tax’, depending on who’s speaking.

Either way, based on B.C.’s experience to date since it introduced its carbon ‘whatever’ in 2008, it looks as if a new federal carbon tax will have a negative impact on the cost of business and the forest industry’s contribution to the country’s gross domestic product.

While B.C. and Alberta already have a carbon tax, the federal government will launch its own carbon tax scheme next year and it will eventually become the national standard.

4

British Columbia and Alberta already have a $30 per tonne levy on greenhouse gas (GHG) emissions, but all of Canada will pay $50 per tonne by 2022 based on the federal government’s plan to take the reins with a national program starting in 2018. It starts at $10 per tonne in 2018 and escalates by $10 per year till 2022.

The carbon tax money collected in each province or territory will be returned to them for use in GHG reduction projects and programs. The national carbon tax will apply in all jurisdictions not adopting an alternative cap-and-trade GHG reduction program, which is the approach taken by Ontario and Quebec.

Taking the cost of fuel as just one example, the current $30 per tonne carbon

Logging & Sawmilling Journal - March/April 2017

tax in B.C. has added 6.67 cents per litre to the cost of gasoline and 7.67 cents per litre to the cost of diesel.

Some groups are getting a break, depending on the jurisdiction. B.C. has exempted certain sectors of its agriculture industry and Alberta has included a small business tax reduction to counteract how much more these businesses will pay in extra carbon taxes.

The selling point for governments, though, is that the carbon tax is supposed to be revenue neutral, with funds collected directed toward financing GHG reduction schemes, countered with certain tax to page 6

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spotlight adjustment, recognizing that there are tradeoffs, and there is a desire by governments to address the climate change challenge.

What COFI is particularly pleased about is that there will be a national carbon tax introduced to level the competitive playing field for B.C.’s forest industry.

“When British Columbia was the only one with a carbon tax, it was a relative competitive disadvantage for us,” says Yurkovich. “But if everyone operating has a carbon tax, then everyone is playing with the same set of rules.”

She adds that because the forest industry is very much dependent on trade, “then it’s all about which other jurisdictions are you competing against on the globe, and what’s their circumstance.”

For Canada’s forest industry, the cost of fossil-fuel based power consumption, lumber drying using fossil fuels like natural gas or heating oil, operating yard equipment, producing heat using fossil fuels for pulp and paper processes, production and transportation of tree seedlings, logging, and log transportation will increase, if they haven’t already.

“We have already begun to see an impact, especially in terms of suppliers

from page 4 reductions and direct rebates targeted at those identified as needing relief, such as low income wage earners..

What the carbon tax hasn’t impacted in Alberta is slash burning. The government has no plans to include this activity as part of its carbon levy.

“In terms of the question about pile burning, the carbon levy will not apply, because this is not considered a fuel,” Oneil Carlier, Alberta Minister for Agriculture and Forestry told the Logging and Sawmilling Journal. “Our government encourages timely burning of logging slash piles as a way to reduce the amount of potentially large amounts of trees on the ground which could fuel wildfires.”

One fact is clear: higher income earners and most bigger businesses, including forest companies, loggers, and log haul contractors, will pay the tax and it will cost more to do business.

According to Susan Yurkovich, President and CEO of B.C.’s Council of Forest Industries (COFI), what forest companies and those supplying them can expect once a national carbon tax is in place is a period of

and contractors beginning to pass along the cost,” says Brock Mulligan, spokesman for the Alberta Forest Products Association (AFPA).

No one will escape, but the AFPA expects that certain sectors will be harder hit than others.

“Parts of the sector that are energy intensive, like mechanical pulp mills, could be especially affected,” says Mulligan, pointing out that it all seems a little unfair

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spotlight

considering that, “our sector has already taken significant steps to reduce our carbon footprint”. Canadian pulp and paper mills have reduced GHG emissions by 66 per cent since 1990. Looking ahead, forest companies have pledged to remove 30 megatonnes of carbon dioxide from the atmosphere by 2030 through the Forest Products Association of Canada’s “30 by 30 Challenge”.

Yurkovich says that COFI has heard

from its energy intensive and trade exposed members about how the carbon tax is putting them at a competitive disadvantage, and those concerns have been taken to government.

“For those businesses who are going to pay high carbon taxes and are trade exposed, where they are dealing in commodity products that are priced in the global marketplace, there has to be consideration of that,” says Yurkovich.

“Otherwise you can really disadvantage your industry.”

The B.C. example is the best predictor of the path going forward for Canada related to the impact on the forest industry of a carbon tax. While the B.C. government is keen to tout noticeable outcomes since the carbon tax implementation, there is scant research showing exactly what impact the carbon tax has had on the province’s gross domestic product and the cost to businesses.

The government’s ace in the hole is that introduction of the carbon tax has worked to reduce GHG emissions in the province. According to the David Suzuki Foundation, economic modeling it chose to highlight concluded that, “the B.C.

carbon tax will reduce B.C.’s emissions by three million tonnes annually by 2020.”

Although they add that it, “represents just eight per cent of the effort required to reach B.C.’s goal of reducing greenhouse gas emissions 33 per cent below 2007 levels by 2020.”

Speaking of economic modeling, University of Ottawa Masters degree candidate Seher Zubair put his own modeling skills to work in a paper to the university’s Department of Economics.

It’s called, “Impact of the B.C. Carbon Tax on Sectoral GDP and Emissions.” It was submitted at the end of 2013. His model reinforces the principle that what goes up, must come down. In this case, as B.C. forestry costs have gone up with implementation of the carbon tax, its contribution to the province’s overall GDP has gone down.

Zubair concluded that forestry and logging reduced its contribution to the province’s GDP by $396 million up to that point. That was an 11 per cent reduction.

Zubair noted that a number of sectors to page 8

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spotlight from page 7 experienced a decline in their contribution to GDP with the introduction of the carbon tax, forestry being one of them.

“The factors behind the decline experienced by these sectors could stem from reduced competitiveness and profitability as costs of production rises due to higher energy prices,” he concluded.

B.C.’s business community is well aware of the negative impact of the carbon tax and escalating power costs, so much so that according to the publication, Business BC, a consortium of eight mayors, Unifor, the Mining Association of British Columbia and a number of small business were lobbying the provincial government to have the 7 percent provincial sales tax (PST) on power sales to industry scrapped in the provincial budget. The B.C. government listened, and announced plans to phase out the PST on electricity sales, starting in October 2017, when it plans to reduce the PST on power sales from 7 per cent to 3.5 per cent.

The report noted that three pulp and paper mills closed in the province in 2015, in Chetwynd, Port Mellon and Port

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Alice, and that companies like Catalyst Paper pay $11 million annually just in PST on their power bills. Power makes up 30 per cent of their costs.

The problem, they point out, is that if pulp and paper mills start to shut down, this has a ripple effected on the sawmilling sector, as they lose the outlet and income from the sale of their wood chips.

This could result in sawmill closures and even more job loss. And as Mulligan pointed out, the forestry sector most likely to feel the biggest impact from the carbon tax are certain types of energy-intensive pulp and paper mills.

It seems that the forestry sector understands the motivation behind the carbon tax, and while no one likes more taxes, they are prepared to adjust. Alberta’s key forest industry players recently met with Minister Oneil Carlier and Premier Rachel Notley, prior to her departure on a trade mission to the United States. When asked if industry used the opportunity to express their concerns about the impact of the recently introduced carbon tax, Mulligan responded, “no, this issue did not come up at that meeting.”

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BCinteriorlogging Greg Munden, President of Munden Ventures Ltd, runs the family business with his brother, Chad.

SOLID BUSINESS move into logging

Munden Ventures of Kamloops, B.C. got involved in logging more by accident than by design, but it’s turned out to be a solid business decision.

By Paul MacDonald

F

or long-established trucking company Munden Ventures Ltd of Kamloops, B.C., their entrance into doing logging happened more by accident than by design, though it has turned out to be a very solid business decision.

“We were hauling logs and lumber for Weyerhaeuser and Tolko mills in the region,” explains Greg Munden, the company’s president, who runs the business with his brother, Chad.

“Weyerhaeuser was closing some of their mill operations in B.C., and they were down to mills in Princeton and Kamloops, and in the end, the company decided to close the Kamloops mill, which put things into turmoil.”

Eventually, Weyerhaeuser’s forest licences were sold to forest companies West Fraser and Interfor, who both

10

Logging & Sawmilling Journal - March/April 2017

have mills in the region. “So the logging contracts that had been with the Weyerhaeuser operations, went to these companies—and our trucking contracts went with them,” says Munden.

The people who owned two of the logging contracts that had been transferred decided to sell out, which could have added some further uncertainty to the situation for the Mundens.

“We had the transportation contracts, so we bought one of the contracts and began the family’s harvesting division, Peak Forestry Ltd, logging for West Fraser, with the idea that we could have a little more control over our destiny as a business, to manage things from stump to mill,” says Munden. “It seemed like the right thing to do at the time.”

In hindsight, it has turned out to be very much the right thing to do, as the two Munden brothers and their wives,

BCinteriorlogging Kim and Alea, as well as their parents, Jim and Linda, and a third brother, Ryan, the latter who are mostly silent partners these days, have moved into harvesting very successfully.

“Buying one of the two contracts, we wanted to step in and manage that piece of that business. With the other contract, that was sold to another contractor—but that has worked out well, too, and we continue to do their hauling,” says Greg.

While Munden Ventures may have become involved in logging quickly, it did so in a very well-thought-out manner—with a very experienced logger, Darryl Higgins, as partner. “Darryl knew that part of the business, and Chad and I learned from him, as we went along. Darryl was a great partner to have.”

After a time, the Munden’s wanted to grow the logging side of the business, and Darryl eventually wanted to exit the business, so they bought him out.

And since then, they have continued to grow and purchase more logging equipment.

Greg relates that when they first started logging, the deal to purchase the contract included the existing logging equipment.

“The equipment the contractor was using came with the deal,” he said. “Some of it was a bit long in the tooth. It had sat idle for a couple of years from the time that Weyerhaeuser closed the mill in Kamloops, until they were able to transfer the licences and logging got rolling again.”

In some respects, that was OK, he says.

“We needed to walk before we ran anyways, being new to logging, so starting with old iron was fine. And as we got more comfortable and more experience, we began updating it.”

While logging equipment may have

been new to Munden Ventures, they are old hands at owning and servicing equipment, in trucking, going back to Greg and Chad’s grandfather, Craig.

Throughout the now three generations in trucking, there has been an emphasis on safety, customer service—and keeping equipment in good shape, says Greg.

“Our overall philosophy is production equipment needs to be current,” he says.

“We’re open to having some older equipment that is not production-based, that is not going to impact the operation on a dayto-day basis. We have a little bit of older roadbuilding equipment, for example.

“But everything on the production side, whether it is bunchers, skidders or loaders, are basically current models.”

Greg noted that there is a very big emphasis on the business being relationship based.

“We are loyal customers to the suppliers we work with, and we need that from the customers we have,” he says.

The equipment that came with the logging operation, and of course the trucks they have worked with over the decades, continue to influence what they have in the fleet today. From the start, and their grandfather’s day, they have worked with Kenworth trucks, so there is a very strong relationship with B.C. dealer, Inland Kenworth.

“They’ve looked after us, and we’ve tried to develop those same type of relationships on the logging equipment side.”

That includes working with the B.C. John Deere dealer, Brandt Tractor, and Woodland Equipment, the Hyundai dealership.

“Woodland Equipment has emerged as a good partner for us, and we are continuing to expand our relationship there.

Brandt has done a great job for us on the service side, as well. We’re pretty happy to page 12

The company’s office/shop in Kamloops, B.C. Munden Ventures has very strong supplier relationships, in Kenworth trucks with B.C. dealer, Inland Kenworth, with B.C. John Deere dealer, Brandt Tractor, and Woodland Equipment, the Hyundai dealership.

Logging & Sawmilling Journal - March/April 2017

11

BCinteriorlogging from page 11 having two core suppliers, and they’re doing a good job of looking after us—the products and service are good.”

On the bunching and skidding sides, they have gone with Deere equipment.

“We’re definitely John Deere fans in those areas,” says Greg. “Both of our skidders are John Deere—a 748H and an 848, and we have two John Deere 953Ks look after the bunching.”

From Woodland Equipment, they have Hyundai log loaders. “We just got our second Hyundai 3026 log loader. We’re interested in seeing how that performs, but we already have a 3026 machine doing decking and hoe chucking for us, and we’ve had good experience with it.”

Munden Ventures sub-contacts out the processing to Randy Janzen whom Greg praises for the solid work he does for them.

“Randy’s done a great job for us—he’s really keen on meeting all the standards for the mill side, so we’re viewed by our customers as best in class, which is what we’re trying to achieve.

“Processing is not an easy side of the business—Randy is in tune with what’s going on, on site, and works closely with his operators. He’s a Hyundai/Waratah guy, and he has good relationships with both of those companies.”

Greg said it made sense at the beginning to sub-contract the processing, and that is still the case.

“It was probably a necessity early on for us to do that,” he says. “Taking on the harvesting was a big thing for us when we really had no plans to do that, up until that point—it was a big move for us.

“Sub-contracting the processing was a piece of our plan, to ensure that getting into the harvesting was workable, and that we did not take on more than we should.”

Greg added that there are some very

12

Munden Ventures wanted to walk before they ran with the logging, so they started doing 135,000 cubic metres a year, and stayed at that volume for four years. They’ve since moved up to doing 200,000 cubic metres a year. good reasons to having a solid subcontractor such as Randy Janzen in a key harvesting role. “Randy has a vested interest in making sure the machines have good uptime, that he has good operators, and that they meet our needs—and they have done that. He’s very focused on the processing piece, which is not an easy part of the job to do well. They deliver for us, day-in, day-out.”

While Greg is the company’s president, and oversees overall operations including the trucking side, his brother, Chad, manages the logging operations.

“Chad is the guy on the ground,” he says.

“Chad worked closely with Darryl, and he acquired some of the equipment as we’ve grown, and ran various pieces himself.”

Before they purchased the contract, Chad was very familiar with the woods, having been a trucking contractor.

“The harvesting side was new to him— and to me. But he had been around it all his working life, working with logging contractors.”

Logging & Sawmilling Journal - March/April 2017

That knowledge transfer from Darryl to Chad worked well, says Greg. “Chad is a top notch supervisor, and he and our employees are responsible for the success we have on the harvesting side, keeping things moving, and making sure West Fraser is happy.”

As Greg noted, they wanted to walk before they ran with the logging, so they started doing 135,000 cubic metres a year, and stayed at that volume for four years. As they became more comfortable with the work, there were opportunities to increase their volume. “We were eager to do that,” says Greg.

They have increased their volume, and did 200,000 cubic metres last year.

“We’re not a big contractor, by any means,” he says. “But that is substantially more volume than we’ve done before, with pretty much the same logging equipment. We are focused on utilization, and to page 14

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BCinteriorlogging from page 12 trying to maximize the equipment that we have.” He cautions, though, that they do not want break through that threshold where you need one more piece of equipment—but getting that piece of equipment might overall be inefficient, because it can’t be fully utilized. It’s kind of a fine balancing act, at points.

“It’s also a balance as you move into different kinds of stands these days,” he explains. “The mountain pine beetle is pretty much done for us at this point—we get maybe 10 or 15 per cent beetle wood now, vs. entire stands of beetle wood we were getting before.

“It could be really problematic at times to figure out the right number of pieces you needed, with beetle wood. You could get into a really poor stand of wood, and production would just fall away. You’d want to add another processor to keep your production up, which really challenged us at times.

“Now, as we move into more green wood, we just don’t need the same processing capacity—the wood is generally bigger. It’s been an interesting situation that I think a lot of B.C. Interior contractors are grappling with, in the post-pine beetle era.”

For contractors such as Munden Ventures, getting into green wood means they can really focus on production. Rather than dealing with the demanding, and low production beetle wood, they are now in healthy stands.

“When you are in green wood, you don’t get the massive swings in production,” he explained. “If you are in a really small piece stand, you are still going to get some fluctuations. But generally, you don’t have the blowdown, the wood laying around, that has such a big impact on production. They are better pieces to log—unfortunately, it’s getting steeper.”

Like a lot of B.C. contractors, Munden Ventures is looking ahead—and it often means looking up, as in having to tackle steep slopes in logging.

Greg checked out the wide selection of steep slope harvesting equipment at work at the recent DEMO International logging equipment show, held this past September in Maple Ridge, B.C. “We wanted to see what is happening on that side—it’s not an area that we’ve had the need to get involved in yet, but we can see it coming,” says Greg. “And we want to be in tune with what’s coming

This past fall, the company took delivery of a Hyundai 3026 log loader. They already had a 3026 machine doing decking and hoe chucking, and had good experience with the machine.

and what’s available, in equipment.

“There’s no doubt the low lying forest has been harvested, so getting into steeper ground, farther up the mountain, is probably a reality for a lot of B.C. logging operations going forward.”

Being a medium-sized logging contractor, Munden Ventures’ plan is to let other, perhaps larger, contractors do the pioneering work with steep slope equipment.

“That would take some of the growing

“A focus for us is not to lose any days, and we set that up as best as we can,” says Greg. “We have an excellent low-bed contractor that we use—Craig Dichrow of Upcott Enterprises really looks after us, and keeps us harvesting. At the end of the day, if we’ve finished a block, we move the equipment at night, so we can start on the new permit the next morning.”

Both Greg and Chad learned from their Dad that with equipment, it is very hard to get back days that you lose. “So we focus on uptime on the equipment, and not losing time in moves, and all the little things you can control as a contractor.”

Munden Ventures relies on its suppliers, such as Woodland Equipment, Brandt Tractor and Upcott Enterprises to help in that effort.

“They understand the focus we have on uptime, and are very responsive, and juggle things around to address situations we may have, to keep us running,” says Greg.

They also have their own service truck and heavy duty mechanics to carry out scheduled routine maintenance. And it may be a subtle thing, but they have their schedule work around servicing the equipment, rather than around the equipment having to work around the mechanics’ work schedule.

Doing all this means having engaged employees, from mechanics to operators, says Greg.

“The single biggest thing for us is our employees,” says Greg.

“On the logging side, we have good, reliable equipment operators who know what they are doing—most of our guys have been logging a lot longer than we

Like a lot of B.C. contractors, Munden Ventures is looking ahead—and it often means looking up, as in having to tackle steep slopes in logging.

14

pains out of that equipment area—and the various tethered products might sort themselves out, too. Maybe a leading design will emerge over the next couple of years and if we need to get involved in steep slope logging, there will be much more knowledge and experience out there to employ.”

Moving into green wood has already had an impact on operations.

“I think the availability of permits for all licencees has been challenging as they move out of the wide open, big beetle blocks to the realities of today, which are smaller blocks in the green stands.

“The notion in the Interior of the 30,000 to 50,000 cubic metre blocks is becoming more rare. It’s more likely that you will have blocks of 10,000 to 20,000 cubic metres. It takes a lot more permits for the licencees to keep all their contractors going.”

A result of this is that logging contractors are moving their equipment around more to get to more blocks—all the while, working hard at keeping their equipment utilization high.

Logging & Sawmilling Journal - March/April 2017

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BCinteriorlogging from page 14 have. We rely a lot on them, and we’ve been very fortunate to have them as we’ve started up the logging side of the company.

“You need to have the right equipment—but we have people with a lot of years’ experience operating those machines.”

While Chad oversees the logging operations in the bush, both he and Greg focus strongly on the numbers of the busi-

16

ness, tracking closely how the company does, on a block by block basis.

“We have a really strong foundation from our Mom and Dad on tracking what we do, and understanding how our equipment is performing,” explains Greg.

“We’ve used the last five years, particularly the last two years, to try to develop a database of how we have performed in various blocks with different and similar characteristics, to build a model on how we can price our work going forward—what

Logging & Sawmilling Journal - March/April 2017

worked, what didn’t work, productive time vs. idle time on each piece of equipment each day.”

The technology onboard the machines, such as telematics and GPS tracking, all help with this.

“We really try to build data behind what we have done in the past so we can be confident bidding or quoting jobs, and what the results will be. We don’t want to be shooting from the hip with our bids.”

As much as possible, they want to base the numbers they are presenting to licencees for work on hard data—rather than trying to spitball some numbers, based on a gut feel about logging a block.

“For guys who have spent their lives in the woods, and have been around harvesting equipment forever, they are better at relying on their gut than we are,” says Greg. “We’re still relatively new to this.

And there is big money that you could potentially lose in this business if you are wrong.

“The data gives us a baseline to start from—and then we can focus on problem areas on a block, like a rock cut or ridgeline or slopes, and focus on coming up with good numbers around that, rather than starting from square one with the whole job.”

The data-driven approach worked well for them on the trucking side, and it is proving helpful in logging, too.

“We still have a lot to learn in logging—there are people out there who do things better than we do,” Greg quickly adds. But having this data works well for them—and could work well for others, too, he suggests.

“As contractors, we all have this very expensive equipment that we need to work on an efficient basis,” Greg says.

“And having a conversation with the mill about rates is not easy, period. There is a lot of pressure to meet licencee rates.”

As the saying goes, sometimes logging contractors can truly feel they are stuck between a rock and a hard place.

“But it helps to have data and comparable numbers to support the case that you are making about why rates should be higher than what a licencee is proposing. They might not have the information or data that you have.”

At the end of the day, Greg says, it can be about developing and maintaining a good relationship with the mills you work for. “The licencees want the best delivered log costs to the mill—but they want us to be in business long term. That’s in their interest, too.”

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steepslopelogging

FLYING HIGH in steep slopes with the Falcon

18

Logging & Sawmilling Journal - March/April 2017

B.C.’s Hyde Creek Logging has found the Falcon Winch Assist system from New Zealand-based DC Equipment to be a great fit with the logging it does on steep slopes on northern Vancouver Island.

steepslopelogging

By Paul MacDonald

R

ichard Coyne can see the future of logging on the coast of B.C.—and it’s going to be steep.

Coyne has been logging on northern Vancouver Island for 25 years—for almost five years with his own company, Hyde Creek Logging—and he knows the region well.

“We’ve done a lot of logging on the valley bottoms, on the easy ground,” says Coyne. “The steeper slopes are coming up on us—and I wanted to get involved before everybody else gets on board.”

And, he adds, he believes moving into steep slope logging using tethered equipment is a sound business decision. “Some people look at it as just a necessity—but I think you can make good money at it, too. The earlier you get on board, the better chance of that happening, I think.”

Steep slope logging, and the equipment associated with it, have taken off in the last year or two, in B.C. “It’s really become popular in the last year or so, but I’ve been seriously looking at it for the last three years,” says Coyne.

“With the steep slope information and conferences that have been happening, it’s been easier for us to figure out the right direction for us to go.” And the direction was the Falcon Winch Assist system from New Zealand-based DC Equipment, supported locally in B.C. by dealer Great West Equipment.

Coyne took a very thorough approach to reviewing what was in the market for steep slope tethered equipment.

He reviewed all the systems, and rated them, based on what he was looking for, and wanted to achieve, with steep slope

Working with the DC Falcon winch system are two levelling falling machines.

Hyde Creek has two remote controlled tethered systems, mounted on a Tigercat LS855D directional faller and on a John Deere 959M feller buncher with a John Deere FR24B head. equipment. He pretty much developed a check list.

“Early on, I thought I wanted a two-line system,” he says. “But then I quickly realized there were some limitations to that— such as if you ever want to log wood that is above where you can get your winch machine to. With the DC Falcon single line system, I can do a block and strap on the high side, and still log on the high side.”

He toured tethered systems operating in the U.S. Pacific Northwest, both two-line and single-line systems, and that confirmed for Hyde Creek Logging that a single line system was the way to go for their operations.

Once Coyne decided to go with a single line system, that automatically narrowed the choice of equipment.

At a steep slope logging conference, Coyne had the opportunity to talk directly with the Falcon system developer—and logger—Dale Ewers. Ewers has multiple logging operations spread through New Zealand, using the Falcon system.

“Everything that Dale has developed, he has used in his own logging operations,” explained Coyne. “As far as I’m concerned, people who develop equipment for themselves, and for their own use, are going to make good products.”

He added that there will always be a learning curve for the use of new equipment in logging operations, but the fact that the Falcon system was tried and tested gave him the confidence that the learning curve would be a lot less steep, no pun intended.

The next check on the list for Coyne was the support and availability of parts.

Logging & Sawmilling Journal - March/April 2017

With Great West Equipment taking on distribution and support of the Falcon system, that made the choice easier, he said.

Great West Equipment gave him flexibility with the new Falcon system. Coyne was able to rent the equipment for a few months, and try it out in his operations to make sure it would work as he thought.

Essentially, Great West Equipment wanted him to be happy with the equipment. He purchased after the trail period ended.

On northern Vancouver Island, Coyne contracts to Western Forest Products, working out of the company’s Englewood Division, in the community of Woss.

“We tend to do all of Western’s challenging ground,” he explains. “I’ve kind of made a career out of working on steep slopes.”

They have been using feller bunchers, and doing hoe chucking in 50 per cent plus slopes for years.

“But there is still a limit to what you can do, with steep ground, rock and the mud, depending on the time of year,” he explained. “Depending on the season, you might not be able to get on to some slopes that you would at other times of year.

“That’s what made a tethering system on steep slopes appealing—it opens up a whole spectrum of wood that we can do, regardless of the conditions or the time of year.”

Adding to the flexibility of the Falcon system is the other harvesting equipment they are using.

Working with the DC Falcon winch system on a Volvo FC3329 carrier are to page 20 19

steepslopelogging

from page 19 two levelling falling machines. They have two remote controlled tethered systems, mounted on a Tigercat LS855D directional faller and on a John Deere 959M feller buncher with a John Deere FR24B head. Depending on the tree size, ground conditions and slope, Coyne can alternate the machine to be tethered.

The DC Falcon traction assist system increases production for the levelling machines, as they now have constant tension, up and down the hill. This allows the levelling machines to keep their track on the ground, resulting in less ground disturbance, greater tractive effort and more stability.

The single 500 metres of 1 1/8” swaged cable has about 23 tonne holding capacity.

It allows the Volvo/Falcon DC winch excavator to be more versatile, to build its own trails if needed. As Coyne notes, it also has the ability to tether the levelling machines above the road, by using hook blocks and stump movement sensors and using the rigging to get down into draws and gulleys.

In addition to the service he’s received from Great West Equipment, Coyne says the ongoing support he’s received from DC Falcon has been very welcome.

“This is still pretty cutting edge equipment, and there continue to be new developments,” he says. “Since I got the machine, there have been further changes —which is a good thing. And they are sharing all those changes with us.

“And if we found that there are things that haven’t worked for us, they will make changes.”

20

The DC Falcon traction assist system increases production for leveling machines, as they now have constant tension, up and down the hill. This allows the levelling machines to keep their track on the ground, resulting in less ground disturbance, greater tractive effort and more stability.

Falcon had added lock valves to the Volvo FC3329 to avoid any cylinder creep while winching. The lock valves were always on, which created some issues with how smooth the machine ran as an excavator. Falcon recognized the issue and came up with an electric lock valve, which only turns on when winching.

Hyde Creek Logging is usually working in a mix of old growth and second growth wood. The first setting they used the Falcon in, the wood was smaller, and in the second setting, it was working in larger old growth wood.

“There are challenges to both,” says Coyne. “Tethering the Deere buncher with the hot saw, it is capable of taking down a bigger tree than our directional felling head, so that gives us more options.

Logging & Sawmilling Journal - March/April 2017

And if we’re going to be falling the wood and setting it up for cable yarding, if it’s available, I prefer to use the hot saw because it’s more productive. We are getting more wood for the winch time. But there are other situations where the directional falling head is the smart way to go, such as when we want to have the capability to fall trees and hoe chuck them.”

Coyne recently had the equipment working just outside of the town of Port Alice, on the far north of Vancouver Island.

With the Port Alice operation, the wood had probably been taken out by wildfire at some point, and then grew back. It made for some good wood—dense, tall and high to page 22

steepslopelogging from page 20 volume. They were getting about 1100 cubic metres per hectare.

The new system has been quickly accepted by the operators—one of them being Coyne, who operates the Tigercat directional faller. The cable aspect has taken a bit of getting used to, he says.

“That’s probably been the biggest challenge, but that’s because we’re not rigging guys,” he says.

“And then there is that first leap of faith in believing that it is going to work when you first go down the hill.” And, of course, it does work.

But Coyne and the other operator, Chad MacKenzie, who runs the John Deere 959M feller buncher with the hot saw, have quickly adapted. “It took Chad about four hours to get quite comfortable running with the winch system.”

And, he reports that it continues to work well, and deliver productivity improvements, as they learn how best to use it in their logging operations.

“We have been learning things like how much you move the winch machine or where you place it. If you set it up at the right spot the first time, you can reduce the number of times you have to move it. There are all these little things that we are learning, and that are making it more productive.

“One of the biggest challenges to learn and understand is how to Siwash the cable, using a stump to make a direction change,” he says. “A slope is not always straight up and down, and there can be gullies. If you want to go into a gully sideways, with the winch machine above you, you hook the

lines on a stump that is cut off high, and then you can get into those spots more easily. There are little tricks like that.”

From what Coyne saw in New Zealand, the ground they are working with in B.C. is more rocky—in some limestone areas, they are working with almost steady rock. This can impact how they do the steep slope work.

Asked if he had any advice for loggers looking to get some steep slope equipment, Richard Coyne said to look carefully at the systems out there—but to make a decision in a timely way.

Get involved sooner, rather than later.

“From the logging I’ve done, I know that rock can be many things. It can be grippy—or not. Limestone can be quite crumbly—it can almost turn into a limestone road when you walk over it. Other areas, it can be hard, like marble.

“You have to figure out the rock conditions in areas, and work around them. In New Zealand, they have rocky areas, but they seem to have a bit more dirt on the slopes.”

The slopes there also tend to be more

constant, he says. But let there be no doubt—they are very steep. “They have 700 or 800 foot slopes that are almost continuous 100 per cent slopes.”

Coyne noted that after he committed to getting the Falcon system, he travelled to New Zealand, and toured around many operations working with the systems.

“I was kind of like a sponge, talking to the operators and learning as much as I could about how it works. I went to the factory, and met the people who make the equipment. If we have any issues, I can put a face to a name, and contact them directly.” It was worth the trip just for the contacts, let alone all the other things he learned, says Coyne.

“It kind of put my mind at ease, because I had not actually seen a Falcon system at work when we committed to it.”

Any follow-up questions they’ve had have been dealt with promptly, he says.

“When we started working with the system, we had some electrical things to deal with. I sent them an e-mail about it, and we received a reply within an hour that helped us out. We have a good working relationship with the Falcon people.”

Quite often, if they have questions, they will just text the contacts they have in New Zealand.

Working with cutting edge equipment is not new to Coyne and Hyde Creek Logging; they have worked with John Deere to develop new products. They ran a prototype falling head on the 959M for almost a year and passed on modifications that they made themselves to their to page 24

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steepslopelogging from page 22 machine that were made to the Deere production machines. They have a few visits a year from the Deere engineers to discuss how things are working, and pass on any ideas they have.

As he does with the Deere equipment, Coyne is happy to pass on tips to Falcon about their system, and how it might be changed to better work in B.C. conditions. DC Falcon, and its dealer partner, Great West Equipment, are very interested in learning, so they can better develop the market in B.C., and better serve customers.

Coyne said having a local dealer, such as Great West Equipment, on board was very important. Having innovative equipment is one thing, but you need on the ground dealer support, he says. “That’s key. You want to have access to parts, locally.”

In terms of the equipment itself, it’s been low maintenance, he says.

“One thing I learned in New Zealand is that most of the winch machines are really high hour machines. They are basically retired, and they will put new pumps in them, and use them for the winch. They run at half-throttle all day, and do not have to do very much.” Any maintenance usually involves the rigging, and that would mean inspecting it, more than anything, to make sure it is in good shape.

Coyne says they do most of their own maintenance, hiring a dealer mechanic when they need to. In additions to the harvesting equipment, they have three John Deere log loaders, two 3754 machines, and a 3554.

24

Asked if he had any advice for a logger looking to get some steep slope equipment, Coyne said to look carefully at the systems out there—but to make a decision in a timely way.

“Some people might hesitate, but it’s better to get involved sooner than later.

The biggest thing is to get out there and look at all the systems and then figure out exactly what is going to work for you. For me, it was a system that would be flexible so I could cover off different situations.”

In addition to Coyne and his operators learning the new equipment, there’s also a bit of a learning curve for who they work for, the Western Forest Products folks.

“I’ve been spending time with their engineers, educating them on how best to lay out blocks for the winch assist system.

We need to set up the settings so tethering makes sense—but that won’t take long.”

Logging & Sawmilling Journal - March/April 2017

The Western Forest Products people are interested in the new system—Coyne has already had calls from other company divisions, interested in working with them.

He likes that, because it means job security. But he says it was still a big step.

“It was a big decision to get into tethering. Financially it was a big step because we bought the winch equipment and the Tigercat machine at once. That was a bit of a gulp, but I think it’s all good.

“Besides, I like to be on the cutting edge. I like working with Deere on developing their machines, and I like working with the Falcon. I’ve always had the philosophy that if you don’t get involved, nothing is ever going to change.” And things need to continue to change and evolve in logging equipment and methods, he added.

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B.C. Saw Filer’s Association trade show: sharing knowledge and resources

The upcoming B.C. Saw Filer’s Association AGM and trade show remains a solid venue to sharing knowledge and resources for all those involved in the trade.

By Jim Stirling

G

ood signs are always welcome. It’s a really good sign, for example, when a forest industry association’s trade show component—and a barometer of its importance—is sold out.

But when the emails and texts requesting space keep on arriving, you don’t want to disappoint them.

That was the good news/bad news scenario facing the B.C. Saw Filer’s Association trade show, well ahead of the event’s April 28-29 date.

The Saw Filer’s annual general meeting and trade show is scheduled for the Coast Kamloops Hotel and Convention Centre and it will accommodate as many exhibitors that wish to take advantage of the opportunity offered as it possibly can,

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Logging & Sawmilling Journal - March/April 2017

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industryevents from page 26 assures Bryan Glaister, vice-president of the BC Saw Filer’s Association. At least 42 exhibitors were confirmed attendees.

The association is an independent, grass roots fraternity which aims to encourage the sharing of knowledge and resources for the benefit of all those involved in the sawfiling trade.

The sawfiler’s 2017 trade show is scheduled to be open for seven hours on Friday, April 28.The trade show provides an uninterrupted opportunity for delegates to renew old acquaintances and strike new ones while learning about and examining the latest technology available to the sawfiling trade.

“Among the exhibitors we have saw and arbour manufacturers, grinding equipment, chemicals and guide dressers,” points out Glaister. Also on hand will be manufacturers of complete saw systems like Optimil, he adds. As well, Western Forest Products is expected to host a recruitment booth during the trade show, he says. When the trade show wraps up, a dinner and entertainment will take centre stage.

The group’s annual general meeting

28

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by Tolko Forest Products will discuss the

Logging & Sawmilling Journal - March/April 2017

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Sawfilers key to lumber recovery

T

hey’re called sawmills for a good reason. The saws at the heart of the industrial plants have always been the focus for creating squared boards from the round logs delivered to them.

The early saws were unwieldy creatures at best and with their crocodile teeth, heavy handed on the wood fibre. Today’s mill saws are all about thin kerf, high speed precision with minimal deviation that significantly help produce greater lumber recovery and less sawdust.

The sawfilers and benchmen are charged with maintaining and enhancing that accuracy in a wood diet that

varies in diameter and species along with fibre types from the beetle-killed super dry to green wood. The sawfiler’s objective remains constant.

“But I think in the best mills, the sawfilers work together as a team with the electricians and the millwrights,” points out Bryan Glaister, vice-president of the B.C. Saw Filer’s Association.

The filer cares for and prepares the best saws required at each machine centre; the millwright is responsible for the precise installation necessary for saw performance while the electricians install the optimized magic to allow the whole machine system to do the job for which it’s designed.

Glaister is a benchman with Gorman Brothers Lumber based at Westbank near Kelowna, B.C. Gorman Bros is a specialist sawmill producing all one-inch products for a range of repeat international customers. One of the issues facing the sawfiling fraternity right now is not so much one of attracting new entrants into the profession as it is certifying those already participating in it, outlines Glaister. The origins of the issue date back to the recession of 2008/9 when the bottom fell out of the U.S. lumber market and much of the developed world descended into an to page 32

B.C. Saw Filer’s Association

EXHIBITOR LIST

Andritz Iggesund Tools Canada Ltd BGR Saws Burton Saw and Supply Canada Canadian Forest Industries Canadian Forest Products Carbide Tool Works Chevron Canada Ltd Corbilt Group of Companies Fuchs Lubricants Grasche USA HMT Machine Tools Canada Hodgson Saw Ltd Jayrod Consulting & Sales Ltd. Kennametal Key Knife Inc. Logging and Sawmilling Journal Mobil Lubricants Modern Engineering (1973) Ltd Optimil Machinery Inc. Peerless Saw Company Petro-Canada Lubricants Precision Guide Mach. & Repair Ltd Premier Bandwheel and Equipment Ltd Pro Mac Manufacturing Ltd Raptor Integration Inc. Rockwell Industries Ltd Saw-ADD LLC Silvana Import Trading Inc. Simonds International Streifel Industries Ltd Supersaul Chemmex USNR voestalpine Precision Strip LLC Western Forest Products Williams & White Equipment YGE Equipment

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Logging & Sawmilling Journal - March/April 2017

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industryevents

from page 30 economic tailspin. Sawmill closures were one of the devastating casualties for the forest industry. Qualified workers in many sawmill professions found themselves out of work. A ripple effect from that was a decline in the numbers of new entrants into the industry. That, in turn, meant training institutions—it was the B.C.

Institute of Technology at the time—had no demand for their classes and had no choice but to drop them.

As the industry began its gradual recovery from the recession, the need for industrial ticket training began to regenerate.

The BC Saw Filers’s trade school, the only one on the province, switched to Thompson Rivers University’s (TRU) Williams Lake campus. It teaches all aspects of operating,

repairing and adjusting saws and sharpening equipment. TRU offers sawfilers two courses toward certification but there was no course instructor for the benchman endorsement, says Glaister. And that is cause of a bottleneck for would be ticket holders until the situation changes. to page 34

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from page 32 Automation in the sawmilling sector has undoubtedly cost some workers their jobs. New technologies are being perfected daily including the increasing use of robotics in sawmills. Naturally, sawmill workers like their counterparts in other industries undergoing similar transformations, are anxious about the implications

for their future job security. “In our area, we still have to have the skilled workers,” believes Glaister. He cites the emergence of auto levelling technology within the sawfiling discipline as an example of an innovation that was predicted by some to cause job loss. “It’s been helpful, yes, but it’s just another tool. A filing room still needs the experience of manual labour.”

Glaister has been working around filing

rooms since 1980 and that was a lot of innovations ago. He followed his dad’s example as a professional sawfiler starting on the B.C. coast before moving to the interior. Old attitudes, however, can remain relevant even with the latest in technology. “A wise old sawfiler once said ‘take care of the details, the rest will take care of itself,’” recalls Glaister. “And that still makes a lot of sense today.”

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Logging & Sawmilling Journal - March/April 2017

toplumberproducers

West Fraser takes over top spot from Canfor

36

Logging & Sawmilling Journal - March/April 2017

toplumberproducers WOOD MARKETS’ annual survey of top Canadian lumber producers highlights the ongoing healthy market conditions coupled with mill expansions and capital expenditures—and a change in the country’s top lumber producer, with West Fraser coming out on top.

By Russ Taylor

F

or the sixth consecutive year, total North American softwood lumber shipments were up, rising by 5.3 per cent in 2016 versus 2015 (from 58.2 billion board feet to 61.3 billion board feet).

The steady growth in the U.S. housing market, combined with strong growth in residential repair and remodelling and a favourable export market in China, propelled strong production gains. As a result, Canada’s total shipments grew by 7.6 per cent (+2.0 billion board feet to 28.5 billion board feet), with total U.S. shipments up 3.3 per cent (+1.1 billion board feet to 32.8 billion board feet).

In Canada, shipments were up across all regions of the country, led by Quebec, with an increase of 834 million board feet to 6.3 billion board feet (+15.3 per cent); this was followed by B.C., up 478 million board feet to 13.6 billion board feet (+3.6 per cent), and Ontario, which saw a lift in shipments of 263 million (to 2.1 billion board feet; +14.3%).

The gains were due to a mix of mill re-

CANADA TOP 10 SOFTWOOD LUMBER PRODUCERS · 2016 (Million Bf)

No. of Production Mills 2015 2016 Company Open 2015 2016 Change 2 1 West Fraser 13 3,599 3,796 5.5% 1 2 Canfor 13 3,829 3,787 -1.1% 3 3 Tolko 8 1,960 1,897 -3.2% 4 4 Resolute FP 15 1,678 1,844 9.9% 5 5 Western FP 8 891 943 5.8% Weyerhaeuser 1 3 842 876 4.0% 6 6 7 7 Interfor 5 784 876 11.7% 10 8 EACOM 7 704 851 20.8% 8 9 J.D. Irving 5 771 850 10.2% 9 10 Tembec 7 706 708 0.3% Total Top 10 84 15,764 16,428 4.2% Total Canada Shipments 26,506 28,522 7.6% % of Canada Shipments 59.5% 57.6% Notes: Includes lumber produced only at primary sawmills and excludes U.S. production.

1. Production includes custom cut volume

Rank

Logging & Sawmilling Journal - March/April 2017

starts, upgrades and added shifts across the country. However, further gains in Canada are likely to be constrained by sawlog supply limitations in B.C. pertaining to the mountain pine beetle infestation, and from the implementation of U.S. duties on Canadian lumber exports to the U.S.

Canadian Top 10: Up 4.2 per cent

From 2010 through 2013, the top 10 Canadian producers consistently grew their shipments at a faster pace than the overall Canadian industry. However, in 2016 (as in 2015), softwood lumber shipments by the top 10 Canadian lumber producers grew at a slower pace than Canadian shipments as a whole (+4.2 per cent for the top 10 versus +7.6 per cent for Canada). As a result, the Canadian top 10 companies saw their output rise from 15.8 billion board feet in 2015 to 16.4 billion board feet in 2016.

The slower growth in the top 10 companies is likely an indication that the larger Canadian companies are consolidating production and retooling mills to optimize for anticipated changes in the log profile and projected reductions in overall timber supply (particularly in the B.C. Interior).

This was evident in 2016 as Canfor (#2) and Tolko (#3) both recorded reduced production levels or closures, mainly from their B.C. operations.

However, Canadian mill investments in the U.S. South are proving to be very strategic due to the ample timber supplies and very high sawmilling margins (from low timber prices). As well, with the U.S. duties on Canadian lumber shipments commencing in May, Canadian mill ownership in the U.S. is looking to be a very astute move. While there was no U.S. acquisition activity in 2016 by Canadian companies, West Fraser, Canfor and Interfor’s current U.S. mill count of 39 provides for some excellent diversification for their sawmill business. to page 38 37

toplumberproducers

from page 37

West Fraser overtakes Canfor for top spot

Turning to the ranking of the top Canadian firms, six of the top seven companies were based in Western Canada and their collective production was 12.2 billion board feet (42.7 per cent of Canada’s shipments). Production for the top four eastern Canadian producers was 4.25 billion board feet (14.9 percent of Canada’s shipments).

The order of the top five Canadian producers was as follows: West Fraser, Canfor, Tolko, Resolute and Western Forest Products. Of note, West Fraser surpassed Canfor as Canada’s top lumber producer, a position it last held in 2011.

Collectively, the top five Canadian

producers raised their production to 12.2 billion board feet (43.0 per cent of Canadian lumber output), versus 12.0 billion board feet (45.1 per cent) in 2015. West Fraser inched up to the lead spot, increasing its output by 197 million board feet (to 3.80 billion board feet; +5.5 per cent) at its 13 mills. Canfor dropped to second position with 3.79 billion board feet and recorded a decline in output of 42 million board feet (-1.1 per cent) despite purchasing Wynndel Box & Lumber during the year. Tolko placed third, with its output falling by 63 million board feet to 1.90 billion board feet (-3.2 per cent); it cut production by half at its Quesnel, B.C. mill beginning in October, 2016 (and later closed its Merritt, B.C. mill in Q1-2017).

Fourth-place Resolute gained 166 million board feet (+9.9 per cent) to reach a healthy 1.84 billion board feet. Western

saw its output increase by 52 million board feet (to 943 million board feet) as capex upgrades at multiple sawmills in 2015 gave way to solid gains in 2016.

The wild card for 2017 is the imposition of U.S. duties on Canadian lumber starting on May 4, 2017. This is expected to negatively impact Canadian production (and U.S. exports) and benefit U.S. sawmills (and timberland companies).

This will be discussed at length at WOOD MARKETS’ Global Softwood Log & Lumber Conference in Vancouver B.C. on May 11, 2017. The conference will also address ongoing supply shocks and dislocations coupled with steady growth in the U.S. market in conjunction with developments in Asian markets and the anticipated role of European and Russian exporters. More information on all of these events can be found at: www.woodmarkets.com/conference/ global-conferences/ ___________________________________ Russ Taylor is President of International WOOD MARKETS Group of Vancouver, B.C. International WOOD MARKETS Group Inc. is a wood products consulting services firm. Its consulting team has provided industry and market expertise in the solid wood products field to its clients since 1993. The firm also publishes a number of strategic industry multi-client reports including its landmark WOOD Markets Monthly International Report (since 1996), the monthly China Bulletin (since 2007), and various five-year forecast reports. The company’s various conferences are key ways to inform producers, exporters and importers of key trends in global markets.

Further information is available at www. woodmarkets.com

38

Logging & Sawmilling Journal - March/April 2017

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BCsawmilling

From hobby sawmill to wo The Kanigan Family in B.C. may have started Gold Island Forest Products as a hobby sawmill, but these days the mill has been ramped up considerably—with numerous upgrades—and now specializes in producing high quality custom cut cedar/fir lumber and timber products.

By Paul MacDonald

T

he Gold Island Forest Products sawmill in the West Kootenays region of British Columbia is a long ways from Japan, but the company’s owners are firm believers in the Japanese concept of Kaizen—implementing continuous improvements. They may not use the Kaizen term, but they know all about working hard to improve mill operations.

The family-owned business has been serving the West Kootenays and local area for 15 years, specializing in precise high quality custom cut cedar/fir lumber and timber products. Its wood is utilized in diverse applications such as commercial and residential construction, bridge timbers and post and beam construction.

While it is well established now, Gold Island Forest Products actually began as a hobby sawmill project in the early 1980s.

Tom Kanigan (who is third generation

40

Logging & Sawmilling Journal - March/April 2017

BCsawmilling

orkhorse

forest industry) and his father, Cecil Kanigan, started the mill by rebuilding and fabricating much of the equipment that Gold Island Forest Products still currently operates.

In 2003, Tom and sons, Trevor and Jody, decided to ramp up operations, and assembled the mill on a newly purchased piece of property in South Slocan, south of Nelson, and started manufacturing lumber and custom cut timbers.

“We have this approach of constantly improving and investing in our sawmilling equipment and the business,” says Trevor.

“When we first started, and for five or six years, 20 to 25 per cent of our revenue was reinvested into the sawmill.”

And Gold Island Forest Products continues to upgrade and streamline its operation with steady reinvestment to meet customer needs—and best utilize their wood supply.

In recent years, they’ve added additional equipment, so the operation is now a threeline mill vs. a traditional one-line mill.

“It really is a mini-version of a larger mill now,” says Trevor.

Trevor, brother Jody, and their dad, Tom, know all about working at larger mills. They all previously worked for Slocan Forest Products (now owned by Canfor) sawmills in the region.

Tom Kanigan (centre) with sons Trevor (right) and Jody (left) with a truckload of cut-to length logs at the Gold Island Forest Products mill in South Slocan, B.C. Trevor explained that they started out with a single headrig line at Gold Island, with a circular saw with heavy kerf. Their first addition was a Baker resaw. They have since moved towards thin kerf equipment, for recovery purposes. “We want to make the best use of the wood we have to work with.”

Along the way they picked up a first generation Wood-Mizer LT300 mill. “We slowly dialed the LT300 into the overall mill, and upgraded the guide system,” says Trevor.

“The Wood-Mizer equipment has all the features that we were used to in bigger sawmills, in terms of setworks, sawing accuracy, thin kerf—the recovery is good on the equipment. And it’s reliable and dependable.”

Gold Island probably has about 25,000 hours on their LT300, and it’s still going strong. “The only costs we have had on the mill have been related to regular maintenance.”

Recent changes include some modifications so the mill can take 21 foot logs, to produce 18 and 20 foot pieces, vs. the usual 16 foot.

“With the recovery, we saw a 30 per cent premium for 18 and 20 footers, and our customers were looking for that from us, because a lot of the other mills in the B.C. Interior that run cedar are pretty much 16 foot mills now,” explained Trevor.

They have also replaced the Baker unit with two new resaws, a singled head unit and multi three-head unit from Cantech.

Historically, Gold Island worked with 9 to 12 inch diameter logs.

“But when Pope & Talbot went down, the log market really changed, and we went to having to process a 4 to 5 inch bush run log sort,” explained Trevor.

Forest company Pope & Talbot had three sawmills in the region, when it went out of business in 2008. One of their sawmills was in Castlegar, near South Slocan, where Gold Island is located.

“That mill going down had a huge impact on log supply and our operation,” said Trevor. “The dynamics of the local log market changed. We knew we needed to put in place equipment to process whatever was available in terms of logs.”

Gold Island looked at its options, and saw that Wood-Mizer had twin vertical band saws running successfully—and went the Twin Vertical Saw (TVS) route, working with a local firm, Timber Line

to page 42 41

BCsawmilling from page 41 Mill Construction, of Nelson, B.C., to assist with design and construction.

“I think we’re the only 16 foot client of Wood-Mizer in Canada with the twin vertical machine,” says Trevor. That said, they don’t feel like a lonely Canuck, service-wise. “The technical support from Wood-Mizer has been really strong. We’ve been happy with that.”

They’ve also added a Wood-Mizer E430 board edger.

Being a smaller independent operation, mill service and parts is key—Gold Island wants to be up and operating as much as possible. Again, their experience with larger sawmills drives their focus on efficient operations. In a spin on the cliché about real estate being all about location, location, location, running a sawmill can be all about uptime, uptime, uptime.

“We’ve seen the experience of some smaller mill operators, where they can be fixing the equipment half the time, and only running half-time,” says Tom. “With what we have, you come in the morning, push a button and everything starts.”

Gold Island runs production on a fourday week basis, with 10-hour days. The fifth day is kind of a mini shift/catch-up/ maintenance day for the operation.

While Gold Island has always been good at meeting the needs of customers, the downturn really drove home how resourceful you need to be—and resulted in them shifting gears, species-wise.

“When we started, we were probably 80 to 90 per cent fir timbers, for the timber frame home market,” says Trevor.

“When the housing market collapsed, no one was spending a nickel on timbers. So we shifted heavily to cutting cedar.”

A bonus is that with the bush run cedar they work with, they are able to make pretty effective use of every log, something that was not always possible when they were cutting fir.

Although the fir market has started

Gold Island Forest Products continues to upgrade and streamline its operation with steady reinvestment to meet customer needs—and best utilize their wood supply. In recent years, they’ve added additional equipment, so the operation is now a threeline mill vs. a traditional one-line mill. coming back, Gold Island is still cutting 70 to 75 per cent cedar. “Cedar has become a staple for us,” says Trevor, “and we have a really strong relationship with our broker based on cedar.”

Gold Island established a relationship with their broker, PowerWood, of Surrey, B.C., four years ago.

“PowerWood was the right size to match with us,” says Trevor. “They knew that when the industry recovered, they would be able to take close to 100 per cent of our production—right now, we are one of their regular suppliers. We’re quite dependent on them, and they are quite dependent on us.”

They are able to deliver upwards of 40 different types of cedar products to PowerWood—and also able to fit in smaller local cedar and fir orders. “We have to be flexible and diverse to survive, and we don’t want to lose those local orders. Jody will fit them into the daily production or on a Friday,” says Trevor.

In terms of wood supply, Gold Island has no tenure, and does not own any forestland.

“We rely buying on the open market,”

says Trevor. “We’ve built a reputation for being able to go into the Revelstoke area, and compete with the major buyers in that market.” About 80 per cent of their logs come from that area, through the Revelstoke Community Forest. Revelstoke is about 200 kilometres from the mill.

They also purchase wood from small woodlot owners, as well. But the supply can be spotty, and they are looking for good logs.

“For the woodlot owners, they’re smaller and harvesting wood is not necessarily a day to day thing,” says Trevor. The quality is sometimes not there. “They might have a 36 inch diameter cedar that is twisted and gnarly, and not much use to us.”

The timber is all dictated by what’s in the stands of the woodlots, of course, and what the woodlots happen to harvesting.

Trevor said they are fortunate in that they are two large private landholders in the region who harvest steadily.

All the forest industry players in the region have been able to benefit from the “Kootenay Mix” of trees—meaning they have been little impacted by the mountain pine beetle, unlike other areas of the B.C. Interior. The Kootenay Mix includes a number of species—lodgepole pine, ponderosa pine, western white pine, whitebark pine, Engelmann spruce, western larch, Douglas-fir, western red cedar, sub-alpine fir, grand fir, western hemlock, aspen, and cottonwood.

When it comes to logs on hand, for Gold Island it’s simple, says Trevor. “We’ll have as much inventory as we can afford.

Inventory is key—without it, you are not

to page 44 42

Logging & Sawmilling Journal - March/April 2017

BCsawmilling from page 42 running. So we try to bite off as much as we can, and a little more.”

Gold Island has been a supporter of and beneficiary of the move to cut-to-length wood, since it has no cutoff saw. It has had to buck wood in the yard. “One of our highest costs in handling log inventory has been in the hand bucking,” says Trevor.

One of the truckers they work with, Todd’s Trucking, contacted them about going CTL with their hauling equipment.

Gold Island assured him they could keep him busy, hauling CTL wood to their mill—and Todd’s Trucking ordered a new trailer, with bunks to accommodate CTL wood.

“Going to CTL wood was a big change for the area,” says Trevor. “We went from wondering if we should do it, to taking a bit of a leadership position, and just moving ahead and doing it. We pay a premium for the CTL wood—but we don’t have to spend the money bucking it in the yard now. It’s been a good thing for us, giving us big savings in the log yard.

“The move to CTL has saved us a whole big decision-making process on

44

how we were going to deal with tree length wood at the mill. We’ll take CTL wood, any day.”

The changes are continuing with the mill operation, Trevor reports. Their dad, Tom, is about half-way through the rebuild of a Morbark debarker to add additional debarking capacity for the mill, to work alongside the rosserhead debarker they have now. They’re also looking at getting a hogging line operational for the bark, and want to tackle the waste residuals at the mill by converting it to usable hog fuel.

The combined decades of experience Tom, and sons Trevor and Jody, have with Slocan Forest Products has served them well, with Gold Island Forest Products.

“The dynamics of that experience has helped us,” says Trevor. Tom started work in mill maintenance, worked on the accounting side, and in construction for about 35 years. Jody did stacker work, planer work, forklift work and grading.

Trevor worked in pretty much all aspects of the mill.

“I think we’re a good team,” says Tom. “There has not been a lot of headbutting, which is kind of surprising for a family

Logging & Sawmilling Journal - March/April 2017

business. Our goal is the same.”

Having that depth of experience was especially critical in dealing with the downturn. “The key then was cash flow, and just being able to put logs in front of the mill.”

The frustration they have these days is, no surprise, wood supply. It would be helpful if the provincial government, and the B.C. Ministry of Forests, stepped up and offered assistance, in the form of more wood, for smaller and mid-size sawmillers like Gold Island, says Trevor.

“We just want to cut wood—why is it so hard to get?” says Jody, in frustration.

“It would be easy for us to add a second shift, and employ more people, if there was fibre available,” he said. And they are not looking for huge amounts of fibre. “It’s not like we are running a dozen truckloads of logs per shift—we’re using about 1.5 to 2 truckloads each shift.”

They suggest that perhaps it’s time for the provincial government to review community forests, to make sure they’re delivering as much opportunity as possible,

to page 46

BCsawmilling from page 44 especially to smaller mill operations—and living up to their mandate of being community focused.

“We recognize and respect what the community forests stand for, but they need to respect sawmill operations like ourselves, and what we provide to the community and the local economy in terms of jobs and wages,” says Trevor.

That said, the Kanigan’s have satisfaction in seeing what has been achieved with Gold Island Forest Products. And while it can be challenging, it’s a fairly straightforward business model. “Really, we just look at the wood that is available and match it up with the markets—and stay away from what the big lumber players are doing.” And they have to be nimble and responsive to markets. “That’s why we configured the mill the way we did, with three lines to be more flexible.

That way, we can handle a four inch short log right up to 32 inch wood.”

That does not mean they are sitting pat, however. There are plans to upgrade their Wood-Mizer LT40 with a Super LT70 mill.

One of the truckers Gold Island Forest Products works with, Todd’s Trucking, contacted them about going CTL with its hauling equipment. And Gold Island assured them they could keep them busy. The move has been very beneficial since Gold Island does not have a cut off saw.

They currently have three PLCs to control sweeps and conveyor start-ups, and the next step would be to add some frequency drives.

“We’re trying to automate things as

much as possible—but it’s a bit of a jigsaw puzzle sometimes,” says Tom. That said, the puzzle seems to be coming together nicely.

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Logging & Sawmilling Journal - March/April 2017

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industryshows

Gearing up for Canada North Resources Expo in Prince George

By Jim Stirling

C

ontinuing a worthwhile tradition is admirable, but maintaining its relevance in a rapidly changing industrial environment represents a considerable challenge.

Canada North Resources Expo (CNRE) seems to have mastered the technique as the latest version of the event is set to prove again May 26-27 in Prince George, British Columbia.

This will be the third biennial version of the CNRE in its present format. The show highlights developments and new techniques available to the forest industry along with the heavy construction and project infrastructure sectors in one of Canada’s richest natural resource regions.

Logging and Sawmilling Journal is the Official Show Guide for CNRE, and will feature extensive show coverage in the May issue of the magazine.

In 2013, the CNRE attracted about 8,000 people including many forest industry company decision makers. The attendance figure increased to about 8,400 for the most recent show, in 2015.

“The bookings for 2017 are going great,” reports Matt Mitchell, show manager.

“We’re a little ahead of last time in 2015.”

Mitchell represents Master Promotions Ltd., the company producing Canada North Resources Expo.

The significance of the CNRE’s acceptance by its core audience and the public has to be considered in the context of the times. “Marketing budgets are dwindling,” noted Mitchell. Companies and potential exhibitors at industrial trade shows are painstakingly careful in deciding where best to present their latest products and technologies to the marketplace. Uncertainty is never a friend to investment and the forest industry has its share of uncertainties. The relationship to the United States lumber market under President Donald Trump’s America-first protectionism and the declining fibre basket for 48

dimension lumber production in the B.C. Interior as a result of the mountain pine beetle epidemic are up at the top of the uncertainties list.

But the forest industry still has its job to do and views the CNRE as a useful tool toward helping achieve its goals.

The outdoor equipment demonstration zones at the Prince George show’s CN Centre are a perennial favourite, for both general interest and business. “We have noticed that several companies want to expand their footprint at this year’s show compared with 2015,” noted Mitchell.

The Inland Group, Woodland Equipment and Peerless are just three examples of a heightened presence at the CNRE in 2017.

The Northern B.C. Safety Conference is returning as an adjunct to the CNRE, continued Mitchell. The event features expert speakers to help delegates manage safety challenges in the workplace more effectively.

The theme is maintained through the Health, Wellness and Safety zone. It is a Logging & Sawmilling Journal - March/April 2017

cluster of interactive booths and displays in the CN Centre which examines and offers a cross section of safe work habit developments and services.

“We also have a larger number of mainly smaller sawmill industry suppliers booked into the 2017 event and it’s nice to see them come back,” added Mitchell.

There’s an important aspect of the CNRE that is often overlooked. “We are continually looking for a chance to give back to the community,” explained Mitchell, “and to strengthen our relationship with the community.” The Prince George-based Resources Expo Society helps facilitate the process. For example, proceeds from pancake breakfasts benefit Big Brothers and Sisters of Prince George, a non-profit organization offering mentoring services to youth. The CNRE also supports a legacy scholarship and bursary program at the regional College of New Caledonia.

For registration information and more details about the CNRE in 2017 visit: www.CNRE.ca

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TECHUPDATE

By Tony Kryzanowski

Mulchers and Mulching Heads Tigercat

The new Tigercat 480B mulcher is a highpowered track mulcher that offers superior durability and high uptime for large-scale, time-sensitive right-of-way and site preparation projects. It now features the robust and durable Tigercat FPT C13 Tier 4 final engine rated at 550 hp at 1800 rpm.

The recently introduced Tigercat 4061 mulching head features reinforced side covers and abrasion resistant skids. The housing is optimized with debris door cylinders mounted internally for protection and contains position references to aid in skid alignment.

Timing belts eliminate belt slip and provide efficient power transfer to the rotor, lowering maintenance time and costs associated with conventional v-belts. The 4061 wear liner requires no welding and the rotor does not need to be removed when servicing. There are also reversible and interchangeable shear bars for quick servicing. In addition, a tapered housing shields debris from potential build-up and easily accessible grease points make daily servicing even more convenient. The 4061 is available on Tigercat’s M726G and 480B mulchers. www.tigercat.com

PrimeTech

PrimeTech, with its product line of five models from 160 to 600 horsepower, is able to offer the right size tracked mulcher for any job, says the company. Main applications include vegetation management, ROW clearing, land conversion, road reclamation, soil stabilization, and road construction and maintenance.

The flagship in PrimeTech’s product line is the new PT-475.

It is powered by a Cat C13 engine producing 475 horsepower and it runs two dedicated Danfoss 130 cc, mulcher pumps. It is equipped with oversized, coarse-fin radiators, with a swing-out oil cooler, preventing them from getting plugged up and making cleaning easy.

The variable-pitch reversible fans help reduce the power absorbed by the fan, which eventually results in reduced fuel consumption. The mulching head features a new type of rock resistant drum.

New multi-task SFH/PM heads for sub-soiling, mulching and rock crushing are available. The oscillating undercarriage with its 36” swamp-type track pads adapts perfectly to uneven ground and assures a very low ground pressure of 0.36 kg/cm2/4.90 psi, meaning less wear and a longer working season in soft and swampy areas. www.prime-tech.com 50

Rayco

Rayco’s C200 machine is among the ultimate in compact, powerful mulchers, says the company.

The C200 is powered by a 200 horsepower Isuzu diesel engine and tips the scales at only 18,500 lbs. Due to its size and weight, the C200 can be transported to and from the job easily. Its narrow profile makes the C200 well-suited for ROW clearing on narrow lines as well as for use in larger scale clearing projects.

The C200 rides on a hi-track, steel undercarriage available with two-speed travel and is available with 20” single-grouser tracks for extreme traction or triple-grouser street pads for applications that require minimal soil disturbance. The hi-track undercarriage promotes longer track life, reduces debris packing in the track chain, and cleans easily to save maintenance time.

The C200 is purpose-built and comes with loader-style lift arms that provide a mulcher lift height of 8’. This makes it easier to mulch taller vegetation.

The operator cabin is comfortable and spacious, with a highbacked, heated seat with air-ride suspension. The rear fan is auto-reversing, reducing maintenance time. All gauges and controls are located on a large LCD display that includes a rearview camera. www.raycomfg.com

Fecon

Fecon Inc now offers the FTX128R rubber tracked mulcher.

The new rubber undercarriage uses a heavy duty bogie roller system and metal imbedded rubber tracks. The FTX128R provides 23” of ground clearance, powerful steering, excellent traction, and 4.5 psi for responsive handling in soft, wet conditions.

The FTX128R is said to be ideal for right-of-way clearing where working on both sides of the road is necessary, or for moving a short distance to the next clearing site. The ride quality is smooth with excellent performance on or off pavement.

The FTX128R features attachment versatility with a quick attach coupler combined with up to 60 gpm of in-cab adjustable high flow and optional pressure adjustment. www.fecon.com

Logging & Sawmilling Journal - March/April 2017

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techupdate from page 50

Denis Cimaf

Denis Cimaf offers a new twist on mulching with its new tilt system for its DAH line of industrial boom-mounted mulchers for excavators and tracked feller-bunchers.

The ability to reach tougher spots with groundbreaking precision, the possibility to let gravity drive trees into the tilted rotor, and the advantage of grinding standing trees with less slash are all new techniques added by the tilt. Operators using it report productivity increases of up to 40 per cent over the same attachment without tilt.

Denis Cimaf Inc is already known for its industrial frontmounted and boom-mounted mulchers. The DAH boom-mount mulchers and the DAF front-mount mulchers feature original depth-control planar drum technology with cutting knives that can be sharpened. Each Denis Cimaf industrial attachment is tested after assembly and is installed and tuned by a Denis Cimaf technician with the owner/operator. www.deniscimaf.com

Prinoth

The RAPTOR 300r is said to be a unique machine for right-of-way maintenance as well as mulching operations on rough or swampy terrain. Its undercarriage with rubber tracks adapts to all types of ground or obstacles and allows the operator to easily cross roads.

Prinoth says that it is the perfect combination of efficiency and mobility, enabling the operator to work reliably and productively.

The Cat C7.1, 275 horsepower, Tier 4 final engine output is mechanically connected to the rotor of the mulcher with a PTO. It is a highly efficient, low ground pressure machine with all modern features. The 3-point linkage allows for attachment flexibility.

Among its features are: rubber tracks, delivering low ground pressure of 3.77 psi; excellent all-terrain mobility so that it can be used in all soil conditions, even up to four feet in water; a cabin featuring maximum comfort and safety standards; maximum power to the mulching head with no hydraulic or cooling losses; and a standard three-point linkage with PTO allowing for other attachments like a blade, chipper or snow blower. www.prinoth.com

Supertrak’s cooling system features a heavy-duty hidebris combination charge air, radiator, and oil cooler.

Roof louvers push air out of the enclosure quickly. The SK350PP features a large intake area with optional debris screens.

Not only can this power pack be track mounted, it can be built as a standalone power unit for job sites. With a track mounted power pack equipped with a mulcher, it becomes a very high production land management machine. Depending on excavator reach, the operator can clear and maintain the steep side slope of remote areas, ditch banks, power lines and gas lines. When the power pack is not in use, the excavator will perform all day-today functions as normal. www.supertrak.com

Barko

The Barko 930B and 937B industrial tractors are said to deliver optimal hydraulic horsepower to mulching heads for effortless land clearing, right-ofway maintenance, and site prep.

Highly maneuverable and built to withstand rough terrain, the machine rips its way through the most demanding right-of-way land clearing and site prep jobs, says the company. The 930B is powered by a 320 horsepower Cummins QSL9 Tier 4 final diesel engine, while the 937 features an upgrade to a 380 horsepower engine.

Unlike loop systems that can waste fuel, Barko’s load sensing hydraulic system automatically adjusts attachment performance according to the load, resulting in better fuel efficiency, increased productivity and low total cost of operation, says the company.

The tractors’ unique 45-degree articulation joint withstands extreme stress and tough terrain, while their maneuverable design provides a turning radius of 15’ 9” for tight spaces. Barko’s exclusive quick attach system also allows for fast attachment changes on the go. www.barko.com

Supertrak

Supertrak has launched a new line of Tier 4 power packs to fit tracked excavators from 12 tonne to 30 tonne class.

These power packs range from 140 horsepower to 450 horsepower, depending on excavator base carriers. Supertrak’s new SK350PP is designed to match equal weight of traditional standard counterweight for ease of machine transportation and is equipped with a Cat C9.3 Tier 4 engine delivering 100 gpm @ 5500 psi.

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Logging & Sawmilling Journal - March/April 2017

FAE Group SpA

The SFH mulcher, featuring solid construction and high versatility, can be used with tractors with power up to 500 horsepower. It grinds trees up to 45 cm and stones up to 35 cm diameter, and reaches 40 cm

to page 54

techupdate from page 52

SEPPI M

in depth. The transmission with side gearbox, which converts the speed into shredding power, together with the tool options and the rotor, make the SFH model unique, says the company.

The new mulcher for excavators UML/S/EX/VT joins existing UMO/EX and UMM/EX mulchers, positioning itself exactly in between. It is designed to fit perfectly into the category of the most commonly used 20 to 25 tonne excavators, and combines the compactness of the UML/EX with the robustness of the UMM/EX. It completes the company’s land clearing product line. www.fae-group.com/ca

Mericrusher

MeriCrusher now offers the MJF S mulcher with power frame, rotating sizing screen and modular design.

With working widths from .8 to 4.8 meters, and available in PTO and hydraulic versions, with a range of 50 to 768 horsepower, it has a true working depth of up to 16”.

Quality Finnish engineering and manufacturing has come to North America, says the company, with full factory support and a complete stock of spare and wear parts.

Minnesota-based Crushing Mechanics says that there is simply nothing else like it for land clearing. www.crushingmechanics.com

St George Co.

In 1989, the St George Company introduced one of the first excavator-mounted mulchers to the market. Years of mulching machinery experience have helped develop the present offering to what the company says is the most advanced excavator mulchers on the market, the Seven Excavator mulcher line.

Seven mulchers feature a high density tungsten carbide hammer design with more hammer blades on the rotor and replaceable counter blades, resulting in long hammer life, lower horsepower requirements, and the production of fine “Class 1” mulch, according to the company. The production of Class 1 mulch will allow a contractor to meet the most demanding mulching specifications. Class 1 mulch makes for better ground cover and returns to nature quicker.

In construction, Seven mulchers feature dual carriage, main roller bearings that are external loading, a fully enclosed body welded from Strenx 700 high tensile steel, and 3/4” thick Hardox 450 steel skid pads, giving the mulcher a long productive life in the toughest of conditions. To fit most any excavator, a full range of fixed and variable hydraulic motors are available.

Seven mulchers are available for excavators 5 to 45 tonnes, with mulcher widths from 3’ to 6’ wide. Wood material up to 10” can be mulched. www.excavatormulcher.com 54

The SEPPI MAXSOIL 350 is described as the world’s largest stone crusher and forestry tiller. It is a multi-function soil tiller, forestry mulcher and stone crusher. It tills soils, mulches stumps and roots and crushes rocks. Working in the 300 to 450 horsepower class, it tills soil as deep as 14”, mulches wood up to 20”, and crushes stones up to 16”. It is available in 8’ and 11.5’ working widths. www.wmce.ca

TMC CANCELA

TMC CANCELA’s new line of TRiADVANCE mulchers are said to combine the best advanced technologies and TMC patents, with a vision and philosophy that strives for maximum performance. TRiADVANCE integrates system guarantees that with a machine overload, the tractor will be protected from power outages, downtime or transmission shaft breakage. The aligned system of the gearbox is patented by TMC CANCELA, which ensures perfect alignment of the transmission for any position of the machine. The TMC CANCELA system works with hammers of three by two cut levels combined with counter blades—two fixed and two with hydraulic position control.

This configuration guarantees an excellent finish on any surface mulching, the company says. www.crushingmechanics.com

BRON

The BRON family of mulchers are built tough to handle all mulching and land clearing requirements.

With sizes ranging from 275 horsepower to 700 horsepower, the BRON mulchers have the power to perform, says the company. All of the company’s mulchers are equipped with hydraulic tilting cabs, heavy duty final drives and high efficiency cooling packages. Oscillating track frames and low ground clearance allow these mulchers to perform in most ground conditions.

Designed with operator comfort in mind, all operator stations are equipped with joystick mounted air ride seats. Heat and air conditioning are standard, as are rear-mounted cameras. Fire suppression systems, hydraulic winches and positive air shutoffs are available options. www.rwfbron.com

Logging & Sawmilling Journal - March/April 2017

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March/April 2017

The Edge New Brunswick introduces enhanced winter weight program T for winter 2016/17

More information on the New Brunswick winter weight program is available by contacting Glen Légère, Research Leader of FPInnovations’ Roads and Infrastructure group glen.legere@fpinnovations.ca 514-782-4544.

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Logging & Sawmilling Journal - March/April 2017

he New Brunswick Department of Transportation and Infrastructure (DTI) recently introduced an enhanced winter weight (WW) program for the forest industry based on research and recommendations provided by FPInnovations’ Roads and Infrastructure research group.

New Brunswick’s winter weight program provides the forest industry with the opportunity for log hauling with increased weights on pre-defined roads during frozen conditions. The threshold previously used to start hauling at WW, however, was set at a conservative 1.0 m pavement frost depth.

In 2015–2016, FPInnovations’ Roads and Infrastructure group conducted an indepth analysis of New Brunswick’s pavements to determine if a shallower starting frost depth could be used and, therefore, the WW hauling period extended. A set of typical pavements were analyzed using layered elastic modeling, pavement service life analysis, and risk management.

The analysis revealed that both shallower starting frost depths and higher truck loadings could be used without compromising pavement integrity.

Based on FPInnovations’ recommendations, New Brunswick DTI has adopted a new WW starting threshold of 0.85 m frost depth instead of 1 m. This change is expected to provide up to two additional weeks of WW hauling, depending on the zone. The New Brunswick forest sector estimates that WW saves them approximately $1 million per season in haul costs.

The new extended WW program is estimated to generate more than $300,000 in additional savings each year, while continuing to reduce summertime traffic levels and pavement wear and tear.

This initiative was spearheaded by FPInnovations researchers, in close collaboration with New Brunswick DTI and the forest sector.

The Edge

Raising awareness about construction initiated slides

R

oad construction in the forest industry is often necessary to access old growth and second growth forests where older roads are upgraded. The Construction Initiated Slides Working Group (CISWG) would like to raise awareness to workers, contractors, and licensees that construction initiated slides are not constrained to specific geographic areas or site conditions. In fact, construction initiated slides occur year round under all weather conditions and on steep to gentle slopes down to 30 per cent or less in many areas of B.C. Between 2012 and 2015, there were 36 construction initiated slides recorded on the coast of British Columbia. The financial, environmental and most importantly, human cost can be significant not only to those physically injured, but also for anyone who has been on site during a slide.

Employers and tenure holders on the land base engage forest professionals, professional engineers and geoscientists as qualified professionals to provide advice on hazards, consequences and risks associated with road construction activities.

These professionals will identify hazards and indicate work which may be undertaken by construction crews to reduce the risk to workers, the public and to protect the environment.

Qualified professionals have a duty to follow the established standard of care identified in all professional practice guidelines for the forest sector.

The guidelines may be found at either https://www.apeg.bc.ca/For-Members/ Professional-Practice/ProfessionalPractice-Guidelines or http://member.

abcfp.ca/WEB/ABCFP/Practising_in_BC/ Practising_in_BC.aspx#guidelines.

In December 2015, WorkSafeBC indicated the professional practice guidelines established by the Association of Professional Engineers and Geoscientists (APEGBC) and the Association of BC Forest Professionals (ABCFP) as being the accepted standard for landslide risk assessments (WorkSafe BC Guideline G26.18).

Those working in planning, designing and building road will want to familiarize themselves with WorkSafe OHS Regulations for Excavations (20.78-20.101), Planning and Conducting a Forestry Operation (26.2) and Creating Additional Hazards (26.80) at a minimum. These will

guide the various assessments, prescriptions and direction needed for road construction activities to help eliminate the occurrence of landslides associated with road construction.

CISWG has developed a road construction initiated slide awareness presentation for workers involved in road planning, design and construction. The presentation and webinar may be found at the following link: http://www.bcforestsafe.org/ node/2713.

The article above was written by the Construction Initiated Slides Working Group (CISWG), a group formed in late 2014 to address a trend in logging road construction initiated landslides on the coast. The group focuses on engagement of workers and resource professionals; education and awareness; new ways to identify sensitive zones and safely build roads; and options for monitoring and enforcing road-construction standards.

For more information, please contact Clayton Gillies, Senior Scientist of FPInnovations’ Roads and Infrastructure group, and FPInnovations’ representative for the CISWG clayton.gillies@fpinnovations.ca 604-222-5674.

Logging & Sawmilling Journal - March/April 2017

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The Edge

New test results confirm tips for logging load securement

L

oad securement devices commonly used as wrappers or tie-downs to secure log loads can be relatively heavy and make it difficult for some drivers to throw over a log load. Therefore, some drivers develop shoulder injuries from throwing wrappers, which, in some cases, can be career ending. For others, the inability to throw these securement devices over a load may act as a barrier to entering the industry. Some options can be used to eliminate the need for the driver to throw load wrappers or tie-downs, or to make them easier to throw.

FPInnovations (then the Forest Engineering Research Institute of Canada, or FERIC) had previously evaluated synthetic ropes and found that after a few months of use their breaking strength dropped significantly. From the observations made during this study, the apparent causes for this degradation appeared to be from abrasion, both external (from the logs) and internal (from dirt intrusion amongst the fibres). The concerns raised from this research prevented FPInnovations from recommending their use to members.

However, increased focus on driver safety and retention, coupled with their increased use in some areas, led FPInnovations in 2014 to undertake another project evaluating these ropes for load securement.

New tie-downs and load wrappers were put into service, and periodically removed for break testing to determine how their strength changed with use. Ropes

from three different suppliers were used and were taken to Cortland Ltd. in Anacortes, Washington for destructive break testing. The results from these break tests, as with the earlier FERIC study, showed that the strength of the UHMWPE ropes decreases fairly quickly with use. This is a significant finding that users of synthetic rope need to be aware of. Continuing to use wrappers or tie-downs made from synthetic rope without adequately accounting for their decrease in strength is not recommended.

Should users continue to use these

ropes, following the manufacturers’ inspection guidelines will ensure that damaged or weakened ropes are removed from service. However, this alone will not ensure that the ropes retain adequate strength required to meet the requirements of the cargo securement standards.

To help mitigate the loss in strength, it may be worth considering using a larger diameter rope, by up-sizing the rope by one to two sizes, as was suggested by the manufacturer upon seeing the results from this study. However, selection of the appropriate diameter rope for the load retention application requires careful consideration. Further work is required to determine how the strength of larger diameter rope used as log tie-downs or wrappers changes with use, and to determine if using larger diameter ropes is a viable option for log load securement.

The manufacturer also suggested that minimizing dirt and sand contamination will slow the rate at which the rope loses its’ strength.

For more information on this study, please contact Rob Jokai, Principal Technologist of FPInnovations’ Transport and Energy group, at rob.jokai@ fpinnovations.ca or at 604-222-5694.

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Logging & Sawmilling Journal - March/April 2017

The Edge

Bio-based panel board resins, new press technology on the horizon with Alberta Innovates support

BY TONY KRYZANOWSKI

Lignin is one of the most abundant polymers on the planet. It gives trees lberta has made a substantial their strength. One of its properties is investment to support cutits ability to work as an effective, beting-edge lignin production nign adhesive substitute in the producfrom pulp mills—and it has already tion of panel products. However, it is started to pay dividends. not an easy compound to work with.

Hexion, a world leader in the Nuila says it will take a combination production of specialty chemicals of the right bio-based PF resin forand a supplier of adhesive resin mulation and new panel board press to the panel board industry, is on technology for companies to consider the cusp of commercializing a biousing this alternative. based phenol formaldehyde (PF) Hexion is working with a European Hexion R & D chemist Dr. Shuna Cheng is one resin that could eventually contain press manufacturer and intends to of the team members working at the company’s as much as 50 per cent lignin. purchase and install the new press Edmonton laboratory developing bio-based PF Some estimates show that more design at a pilot plant located at its resins that could contain up to 50 per cent lignin. than two-thirds of all wood prodEdmonton research laboratory in the ucts have some adhesive resin in fall of 2017. It will mimic commerthem. The most obvious examples wood products and commercialization of a cial panel board production at a typical are plywood, oriented strandboard, lamiproduct substitute that has the potential to Alberta production facility. The goal is to nated veneer lumber and cross laminated significantly reduce greenhouse gas (GHG) demonstrate to panel board producers timber. Hexion says the annual demand emissions,” says Patrick Guidera, Forest locally and around the world how a new for resin among panel board manufacturTechnologies Director at AI. “There is no generation of press technology, working in ers in Western Canada alone is about doubt that this is disruptive science, and concert with the bio-based PF resins, can 130,000 tonnes per year. the potential market for this new product deliver panel board with similar or better “We’re quite confident that we are and press technology is staggering.” properties as panel board manufactured going to be able to commercialize techNuila says Alberta Innovates’ support using traditional, fossil-fuel based PF nology with lignin in 2018,” says Carlos has helped Hexion accelerate its research. resins.

Nuila, Vice-President of Research and It has also helped to have an Alberta partInitially, Hexion is focusing on a Development for Hexion’s Forest Products ner in West Fraser, who is able to provide bio-based PF resin replacement with a Division. “One of our issues is supply of a highly purified and consistent cut of minimum of 20 per cent lignin substitulignin materials over the long term.” lignin, and who has a willingness to work tion, specifically for OSB manufacturers, Alberta Innovates (AI) has provided closely with Hexion to help develop the because Nuila says that is the greatest sub$3 million for the construction of the required formulation, he adds. stitution challenge among panel products. $30-million lignin recovery plant completOther panel board producers, such Hexion is also working to develop a ed last year at the West Fraser pulp mill in as Tolko, are very interested in Hexion’s technology where certain existing panel Hinton. Alberta Innovates has contributed research and are providing industry board presses could be modified so that another $500,000 through its Alberta Bio feedback. As a result of this promising companies could use the bio-based PF Future (ABF) program toward Hexion’s research, there could be wider industry resin on their production line without project, focused on the development and acceptance of resins that incorporate having to purchase an entirely new press. commercialization of a bio-based PF resin lignin.

If successful, there could be production and the development of a new panel Industry has been a major driver beline trials in early 2018. board press design. The ABF program hind the development of a bio-based PF is designed to help diversify the Alberta resin formulation, Nuila says, because of For more information about the economy by accelerating growth of the their interest in offering solutions incorHexion research project, contact John bioindustrial sector. It encourages the use porating locally sourced renewable raw Kompa, Hexion Vice-President, Public of sustainable biomass, primarily from materials. Lignin is replacing the fossil-fuAffairs, at John.Kompa@Hexion.com, forestry and agriculture, in renewable el-based phenol component of traditional and for more information about AI’s bioproducts and technologies.

PF resins. So this substitution should result support for this project, contact Julia “What AI is getting from its investment in reduced GHG emissions because less Necheff, AI Communications Specialist, is to validate the use of lignin as part of a phenol will be required within the new PF at julia.necheff@albertainnovates.ca. bio-based replacement resin in engineered formulation.

A

Logging & Sawmilling Journal - March/April 2017

59

The Edge

Capital Power advances wood biomass co-firing project

BY TONY KRYZANOWSKI

A

lberta’s Capital Power Corporation is currently in the development and design phase of a biomass co-firing system at its coal-fired Genesee power plant.

The company is now focused on pursuing fibre supply agreements with Alberta forest companies to use their mill-generated residual fibre, consisting primarily of bark, as power plant biofuel.

If all the pieces fall into place, it could begin permanent, co-fired power production by 2018.

This wood-based biofuel reCapital Power has found no technical issues to prevent mixing processed wood waste source represents about 15 per with coal to generate power at its Genesee Power plant. cent of the fuel needs for one of the three power units operated by Capital Power about 70 kilometres west The second option may be for landowners One is the province’s introduction of a of Edmonton, or about 60 megawatts of carbon levy and plan to phase out emisto grow short rotation trees, like willow biomass power production. This rate of sions from coal-powered energy producand poplar, as biofuel. renewable power generation from cotion by 2030. The second is the planned Sandy Fleming, Business Development firing would result in an annual reduction phase out of beehive burners to dispose Director at Capital Power, says that down of carbon dioxide emissions of approxiof sawmill wood residuals. Forest compathe road, the company may consider supmately 400,000 tonnes per year. nies have the fuel and Capital Power has plementing its mill-based biofuel resource Genesee is a three unit, coal-fired the need, so it is a good partnership. with both wood fibre provided by private power plant with a generation capacity Another potential woody biomass landowners as well as possibly growing of about 1400 megawatts. Test burns of fuel resource available to Capital Power their own short rotation wood fibre crops co-fired woody biomass with coal last fall is the slash piles in the bush that most on their own lands. However, at present, showed no technical obstacle to incorAlberta forestry companies currently burn. this option would likely not be economiporating significant amounts of woody However, their repurposing will ultimately cally viable, so the current focus will be biomass fuel. come down to economics. At present, on forest mill residual fibres produced by “Capital Power’s plans for substituting Fleming says mill wastes are relatively large, Alberta mills. wood fibre for coal at their power plants close to the plant in a clean, concentrated He adds that Capital Power is not adis good news for Alberta farmers and form which, with a small amount of proverse to considering as much wood fibre woodlot landowners and it could just be cessing, it is ready to use as biofuel. biofuel replacement for coal as possible, the beginning, considering that all coalbut noted that it would require almost fired power plants may be looking for an five million dry tonnes of wood fibre analternative fuel,” says Toso Bozic, Bioennually to replace Genesee’s current coal ergy and Forestry Specialist with Alberta For more information about Capital consumption. For now, the company is Agriculture and Forestry.

Power’s co-firing program, contact Sanfocused on finding sources to meet the He adds that there are thousands dy Fleming at sfleming@capitalpower.

200,000 dry tonnes annually that it would and thousands of hectares of mature or com. For woodlot owners interested take to supply their initial 60 megawatts over-mature natural forest with significant in harvesting or growing trees as a co-firing project. amounts of biomass that landowners curcash crop, contact Toso Bozic at Toso.

What’s driving Capital Power’s switch rently have little or no market for. This Bozic@gov.ab.ca. to co-firing woody biomass is two-fold. may pose a fire risk to the landowners.

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Logging & Sawmilling Journal - March/April 2017

The Edge

CWFC focused on supporting industry with proven options to mitigate climate change impact on wood supply

BY TONY KRYZANOWSKI

T

here is ample evidence that the Canadian forest industry will face greater challenges to its wood supply from pests, pathogens, and wildfire due to climate change.

The Canadian Wood Fibre Centre (CWFC) is taking a lead role in the area of technology development and knowledge transfer to help the industry adapt their forest management practices to mitigate the potential impact of these threats.

The goal is to present industry with demonstration sites showing the implications of taking no action, along with sites showing forest management and harvesting strategies tested by CFS/CWFC through its decades of practices development and study of long-term research sites that industry can apply to help support a sustainable fibre supply in the climate change era.

CWFC Regional Coordinator and Program Manager Derek Sidders says that the areas they will be addressing are: plantation establishment strategies that are more resilient to climate change; partial harvest systems that address midterm timber supply issues showing up all across Canada as it relates to the availability of sawlogs and certain dimensions of tree species; and tracking climate change and current management practices that are having an impact on maintaining healthy forests.

“We’re looking to adapt some of our experience and activities related to our previous work in such areas as ecosystem management emulating natural disturbance where we created a variable retention harvesting design that would mimic wildfire by looking at individual tree and patch retention scenarios and deploying that in mixedwood scenarios at all stages in Alberta,” says Sidders.

He adds that this is one of the largest ongoing research studies ever established.

“It is giving us very clear answers as it relates to maintaining biodiversity and the impact of various removal levels on carbon budgets, as well as looking at regeneration implications associated with partial harvest retention levels involving

various species,” says Sidders.

The recent and ongoing devastation perpetrated by the mountain pine beetle is one example where it is obviously necessary for industry to develop ways to mitigate that impact by using strategies that result in stands that are vigorous, healthy and hopefully more resilient.

Sidders says that CWFC has taken a serious look at rehabilitation in stands consisting of both immature and mature lodgepole pine experiencing 50 per cent mortality due to a beetle infestation.

“We have developed a partial harvest system that aims to remove values from that stand, including removal of biomass which can contribute to growth in the bioeconomy, as well as the fibre for conventional forest products, working in concert with large forest companies in northern Alberta,” he says.

The system not only captures value from these infested stands, but uses harvesting and novel regeneration systems to bring the stand back to a vigorous and healthy state, while spacing high density, non-infected lodgepole pine to reduce their susceptibility to attack, with the goal of enhancing their size and their vigor.

In other scenarios —where there were mixedwood components within beetle infected stands—CWFC demonstrated how to maintain the mixedwood characteristics of the stand, while implementing a partial stand species conversion by introducing white spruce with lodgepole pine on micro-sites to create a healthy growing environment, leading to a future, productive, commercial forest.

“We are also working in the Petawawa Research Forest in Ontario, where we are deploying a variety of different practices that are looking at second generation, pure softwood and mixed stands that have been impacted by extreme weather events,” says Sidders. “They have experienced mortality from drought, wind throw, and storms.”

In this case, CWFC is using its partial Logging & Sawmilling Journal - March/April 2017

Partial harvest then re-establishing native hardwoods with tolerant softwoods is one strategy CWFC is proposing to make one Ontario site affected by climate change more resilient. harvest systems and creating more stand diversity by re-establishing tolerant softwoods in the understorey and introducing native hardwoods or fast growing hardwood nurse crops to provide cover and nutrients to the valuable softwood species, such as white pine.

Eventually, CWFC hopes to establish a network of sites as a type of legacy, covering a wide variety of species combinations created through the use of novel harvest and management systems aimed at mitigating the impacts of climate change, that demonstrate both removal of present values, potential site enhancement and adaptation strategies going forward, and applications that validate what can be done to address the future timber supply challenge that industry currently faces.

“We’d like to start deploying those strategies in some of our research forests and building partnerships across Canada to deploy them into the primary forest types in all locations,” says Sidders.

For more information about research sites related to this program and methods deployed on demonstration sites both in the past and under the current program, contact Derek Sidders at Derek.sidders@canada.ca.

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SUPPLIERNEWSLINE Logging and Sawmilling Journal helps make history

As the lone Canadian company to earn a first-ever Construction Media Alliance (CMA) award, a London, Ontario firm has made history—and Logging and Sawmilling Journal was able to play a part.

CMA is the successor to the Construction Writers Association (CWA) that had a long history of recognizing excellence in construction industry journalism and marketing communications.

Marketing Strategies & Solutions Inc., a 20-year member of the London business community, was presented the Best Ad category award in the Marketing Communications division of the inaugural Construction Media Alliance (CMA) awards. All CMA journalism and marketing communications award winners were announced and presented in March at CONEXPO-CON/AGG, the Western Hemisphere’s largest construction industry trade show held every three years in Las Vegas.

The special ad ran on an exclusive basis in Logging & Sawmilling Journal.

“Most important to us, the winning print advertisement sent a critically important health message to our partners and friends in the Canadian forestry industry,” says Robert Adeland, President of Marketing Strategies & Solutions.

“One of our major clients, Sennebogen LLC, is a leading worldwide manufacturer and supplier of purpose-built material handlers used in various industries, including forestry,” explains Adeland.

“When it was reported that Canadian

62

men working in forestry are at a higher risk of developing prostate cancer, we were honored to work with Sennebogen to create a smart, vitally important, eyecatching ad.”

The intent of the award-winning ad developed in support of the National Movember Campaign was to encourage the hard-working, hardy men who work in Canada’s forests to get out of the woods and in to see their doctor, explains Michael Anderson, Senior Account Manager with Marketing Strategies & Solutions.

“To have this particular creative piece be part of the CMA’s first class of award winners is the ultimate thumbs-up to us, our client SENNEBOGEN, and the publisher of the special ad, Logging & Sawmilling Journal,” says Adeland.

Peterson Pacific introduces 4710D horizontal grinder Peterson Pacific’s new 4710D horizontal grinder is designed for high volume producers with very demanding end product specifications.

The 4710D is powered by a Tier IV Caterpillar C18 engine rated at 755 horsepower. A Tier II, 765 horsepower engine is also available.

Boasting 18” of ground clearance, this model is particularly suited for land clearing

Logging & Sawmilling Journal - March/April 2017

By Tony Kryzanowski operations or other applications where mobility and frequent moving is desired.

Peterson’s three-stage grinding process with an up-turning rotor and large grate area enables the 4710D to produce materials to exact specifications. The quick change multiple grate system makes it easy to customize grate configurations to produce a wide variety of finished materials. Grates are removed through an access door on the side wall.

The 4710D features Peterson’s Adaptive Control System, which controls all components of the feed system to optimize output. www.petersoncorp.com

John Deere updates TimberNavi mapping solution

John Deere has now completed the most robust update to its fully-integrated, digital mapping solution, TimberNavi, since its initial launch.

Designed for use with the John Deere L-series skidders, wheeled feller bunchers and M-series tracked feller bunchers, the upgrade includes the integration of Internet-enabled wireless data transfer, remote display access capabilities, and location history viewing of other JDLink-enabled machines. Developed based on aggregated customer feedback, these advanced features create a more connected jobsite, optimizing productivity, says the company.

Launched in 2015, TimberNavi provides owners and operators maximum visibility to the jobsite, increasing efficiency and productivity in the woods. The update will maintain the key features of the initial launch, including custom map creation,

suppliernewsline a high-resolution touch screen display, visual alarms based on customizable buffer zones, and full support of a John Deere dealer. These features increase the operator’s spatial understanding of the terrain, harvesting areas and points of interest on a map, which in turn helps enhance productivity, increase uptime and deliver lower daily operating costs. www.deere.com

the moment, the company is logging with ten Ponsse machines.

In total, Ponsse has manufactured about 450 Ponsse Scorpion harvesters.

It started production of the machines in 2014, and it has delivered Ponsse Scorpion harvesters into 20 countries. www.ponsse.com

There is a new design and an improved quality weld-on grapple tip now available through Northface Ventures Ltd. It works on loader grapples and skidder grapples.

Being made from heat-tempered steel, and not cast, makes it strong enough to handle the harshest conditions and ground engaging motions.

With patent pending status, its innovative design is described as a level above the competition.

This is a logger’s tip made by a logger for loggers everywhere, says the company.

That said, it works well on many different applications and not just specifically in logging.

Having a quality made wearable item such as these grapple tips will increase operating uptime and efficiency, says the company.

Contact Northface Ventures owner, Ryan Bremner, at ryan.bremner@clusko.com.

pletely new line of EPA Tier 4 Final certified forwarders.

Komatsu offers new line-up of Tier 4 Final Improved weld-on grapple forwarders tip from Northface Komatsu America Corp has a com-

The 12,000th Ponsse forest machine was handed over to a customer recently at Ponsse’s Vierema, Finland factory. The Ponsse ScorpionKing was received by a family logging company, Sarl NC Bois, from Tremilly, France.

Ponsse is pleased to be celebrating its 12,000th forest machine, says Jarmo Vidgren, Ponsse’s sales and marketing director. As a Finnish company, the milestone marks a great beginning to Finland’s centennial year, he added.

In 2009, Sarl NC Bois acquired the first eight-wheel Ergo in France, and the Ponsse ScorpionKing harvester it acquired in 2014 was one of the first in France. At

KEY FOCUS:

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Logging & Sawmilling Journal - March/April 2017

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Andritz Iggesund................................................5 Brandt Tractor..................................................51 Cannon Bar Works.............................................6 Checkmate Fire Prevention...............................12 Comact............................................................29 Elmia Wood.....................................................62 Falcon / Great West Equip.................................23 Finning CAT......................................................45 Great West / Falcon..........................................23 Hyundai Dealers..............................................47 Inland - Steep Slope.........................................17 Interior Logging Assoc.......................................44 International Wood Markets.............................63 John Deere........................................................9 Konrad FORSTTECHNIK...................................24 Liebherr...........................................................39 Linck................................................................27 Log Max...........................................................43 Metal Detectors Inc..........................................38 Northern Metalic Lubricants...............................7 Northland Forest Products................................28 Olofsfors..........................................................33 Olofsfors Iggesund............................................46 Peterson...........................................................35 Pierce Pacific....................................................22 Ponsse.............................................................49 Quadco / Southstar............................................2 Quadco / Keto.................................................16 Ritchie Bros......................................................55 Rockwell Industries..........................................28 Rotochopper....................................................31 Sennebogen.....................................................15 Streifel Industries..............................................32 Supersaul Chemmex.........................................32 Tigercat / Inland...............................................68 Valutec Wood Dryers..........................................8 Volvo Truck......................................................13 Wallingford's Inc...............................................25 Waratah...........................................................67 Watson Gloves.................................................34 Westerra Equipment.........................................53 Wood-Mizer.....................................................44 Woodland Equip..............................................21 WALLCHART Brunson Instrument Burton Saw California Saw DK Spec FPInnovations HMT Machine Tools Hodgson Saw J.J. Kennedy Sawfiling Kennametal Optimil Petro-Canada Precision Guide Machinery Pro Mac Manufacturing Rockwell Industries Simonds International Williams & White Equip.

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thelastword

Time to focus on the EU markets with new deal—while we wait for Trump's take on softwood lumber

By Tony Kryzanowski

T

he opening of writer Rudyard Kipling’s now famous poem “If . . .” begins with the phrase, “If you can keep your head when all about you are losing theirs ...”

That phrase and poem, penned by the author of such classics as ‘The Jungle Book’ seems particularly appropriate for the times as it relates to maintaining markets for Canadian wood products.

There is a sense of panic coming from the Canadian forest sector as a quick signing of a new Softwood Lumber Agreement (SLA) with the United States seems highly unlikely, even as the federal government announces a federal-provincial task force on the issue and discussions take place at the highest level.

President Donald Trump’s erratic behavior has raised very legitimate concerns within Canada’s forest sector as to what impact there might be on Canadian trade relations with the Americans. Last year, Canada shipped $4.7 billion worth of lumber to the United States.

So the times call for cooler heads to prevail, and in the midst of these nervous times, very little ink was spared recently in the press about a huge Canadian trade accomplishment and massive opportunity for the Canadian forest sector: the ratification of the Comprehensive Economic Trade Agreement (CETA) with the world’s third largest importer of forest products, the European Union (EU).

The deal removes 98 per cent of tariffs and endorses the concept of ‘preferred trading nation status’ between Canada and the EU, representing 28 individual member states with a total population of over half-a-billion people.

While the Americans talk trade protectionism, Canada has pulled off a massive trade coup, and unfortunately, this fact seems to have barely been noticed by Canada’s forest sector.

As the likelihood of a quick new SLA

66

dims, the thrust towards Asia is an appropriate and admirable response. But the forest sector might want to leave a few eggs in the basket to test this new opportunity with the EU. During a recent meeting between top forestry executives and Alberta Premier Rachel Notley, one key topic discussed was developing new uses for forest products in Alberta. CETA is not only an opportunity for new uses of forest products, but new markets.

While most Canadian forest products already enter the EU duty-free, once CETA comes into force, Canadian products will enjoy duty-free and quota-free market access to the EU. At present, tariffs on forest products range from two per cent to 10 per cent. The panelboard industry is likely to witness the most immediate benefit. Fibreboard has a seven per cent tariff, plywood has a seven to 10 per cent tariff, and oriented strandboard a seven per cent tariff. All these tariffs will disappear.

The Europeans have a history of using other forms of trade barriers to control market access, such as health and environmental regulations, even if a free trade agreement exists. To Canada’s credit, a mechanism has been put in place to facilitate dialogue between Canada and the EU to raise industry concerns with proposed regulations at an early stage.

For example, a new Sanitary and Phytosanitary Measures Joint Management Committee has been struck to facilitate discussions between Canadian and EU experts and provides a venue for experts to resolve issues impeding trade—before they become major problems.

Where the real opportunity exists for Canadian forest companies to tap into the European market is in novel forest products like mass timbers, nanocrystalline cellulose (CNC) and lignin. These novel building materials and bio-products derived from wood have numerous applications, Logging & Sawmilling Journal - March/April 2017

and we have barely scratched the surface with them.

In the EU, Canada will be dealing with industrialized countries like France, Germany and Britain (the last at least for a while, before Brexit), with advanced engineering, chemical, aeronautical, pharmaceutical and bioenergy sectors, all of which are potential markets for these materials.

Mass timber technology comes from Europe. They know how to build with it.

It should be easy to sell our mass timber products to them. Furthermore, Canada already has a major commercial CNC producer in Quebec-based, CelluForce, as well as significant capacity in Alberta to produce near commercial volumes of this biomaterial. West Fraser also has just opened a $30 million, commercial lignin production plant in Hinton, Alberta, using a novel, more environmentally-friendly, recovery system.

Another significant opportunity exists in the export of wood pellets. Europe’s consumption of wood pellets is expected to grow significantly, climbing by 10 per cent in 2015 alone to 7.2 million tonnes annually. Canada is Europe’s second largest supplier, garnering about $326 million annually, but still trailing the U.S. as the main supplier by a wide margin. With CETA now in place, perhaps there is an opportunity to improve Canada’s market share, especially with the new status that CETA provides to us.

Finally, let’s not forget our strong connection to Europe, as many Canadians are only one generation removed from ‘the Old Country.’ Maybe it’s time we actually tried to monetize our mosaic vs. melting pot approach to Canadian culture, and remind our new European trade partners about that strong, continuing connection many of us still have with them as we develop our trade network.

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