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December/January 2016

CUTTING LUMBER DRYING COSTS with advanced kiln control system

BEAR LAKE LOGGING: Changing gears in B.C. coastal logging DEERE DELIVERS with new 748L skidder in Alberta

WITH THIS ISSUE… The Edge!

SPECIAL REPORT: Logging contractors being left behind in the recovery?

FEATURES December/January 2016 Volume 46 • No. 8

On the Cover:

Getting the timber out to the dryland sorts and the sawmills economically has always been a top priority for the industry. In this issue of Logging and Sawmilling Journal we take a look at how a few different loggers do just that, including very different logging operations in B.C. and Alberta. (Vancouver Island log sort photo by Paul MacDonald)

Editor Paul MacDonald Contributing Editors Jim Stirling Tony Kryzanowski George Fullerton Tech Update Editor Tony Kryzanowski

4 Spotlight—

Publisher Rob Stanhope E-mail: stanhope@forestnet.com Phone: (604) 990-9970 Fax: (604) 990-9971

Logging contractors being left behind in the recovery?

Sales Associates James Booth (604) 990-9970 E-mail: jbooth@forestnet.com Perry Rosehill (604) 613-3001 E-mail: rosehill@forestnet.com

While the forest industry has recovered from the downturn—though the recovery still seems tentative, at times—the logging contractor sector seems to have been left behind when it comes to improved logging rates. What gives?

Circulation Manager Maureen Cole (905) 201-0853 Fax: (905) 294-8645 E-mail: mcole@idirect.com

Design & Art Production Manager Sheila Ringdahl E-mail: artwork@forestnet.com

Changing gears in B.C. coastal logging

Office Manager Betty Rosales E-mail: brosales@forestnet.com

B.C. coastal logger Bob Lee has had to change gears with his logging operations in recent years, and this involved some big time changes, with a move to second growth wood, and purchasing and operating bunchers and processors.

Office PO Box 86670, 211 East 1st Street North Vancouver, BC V7L 4L2 Phone: (604) 990-9970 Fax: (604) 990-9971 Website: www.forestnet.com Subscriptions: Canada $58 a year; two years $70; three years, $85. Group accounts, six or more subscriptions, $25 per subscription per year. Outside Canada, $95 per year. Airmail $165. Single copy, Canada $6; elsewhere $10. Reproduction prohibited without permission of the publisher. ISSN 0226-7572. Indexed in the Canadian Magazine Index by Micromedia Ltd. Back copies from 1996 onward are available through our website www.forestnet.com and in microform from Micromedia Ltd., 416-362-5211.

new 748L skidder

The new John Deere 748L skidder is helping Alberta logging operation Forest Trotter Contracting be more productive, especially on hilly ground—and offers more operator comfort, to boot.

24 Cutting lumber drying

Publications Mail Agreement No. 40064045 Return undeliverable Canadian addresses to CIRCULATION DEPT. PO Box 86670 Stn Main North Vancouver BC V7L 4L2 e-mail: mcole@idirect.com

costs

POSTMASTER: Send US address changes to LSJ Publishing Group, PO Box 610, Edmonds, WA 98020-0610 Published December/January 2016 Printed in Canada on 20% recycled paper. We acknowledge the financial support of the Government of Canada through the Canadian Periodical Fund of the Department of Canadian Heritage. Logging & Sawmilling Journal is a member/associate member of the following industry organizations:

18 Deere delivers with

B.C.’s Southcoast Reman, a large custom lumber remanufacturer and kiln drying operation, is making use of an advanced new kiln control system that is delivering impressive savings on their power costs—in the neighborhood of 30 to 40 per cent.

32 Getting past the

hurdles of harvesting on Haida Gwaii

Constraints are a fact of life with forestry operations on Haida Gwaii, off the north coast of B.C., but Haida-owned Taan Forest has an initiative underway that would see primary manufacturing of logs from its FSC certified forest operations.

38 Inside/out sawmilling

B.C.’s McLeod Lake Indian Band is now involved in sawmilling, through Duz Cho Forest Products, and it has taken an interesting approach with an “inside/out” design for its cant mill, which is creating higher valued products from raw material that other potential users don’t want—or can’t economically use.

42 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 - Bio Solutions and FPInnovations.

48 Diversifying the

industry’s workforce— with more women

Registered Professional Forester Melinda Morben has had a successful career in the forest industry—having started out operating logging equipment in the B.C. Interior—and she is now encouraging more women to look at working in the forest industry.

66 The Last Word

Tony Kryzanowski says it’s time to compensate logging contractors on what it costs to run a business in 2015—not in 2008.

DEPARTMENTS

Calendar........................................ 10 Tech Update: Class 8 Trucks.......... 52 Suppliernewsline........................... 58 Classifieds..................................... 64 Ad Index / Subscriptions................ 64

Logging & Sawmilling Journal - December/January 2016

TOO spotlight

low logging rates a threat to the industry?

Although logging rates have recovered somewhat since the depths of the Great Recession, there is still widespread concern about low contract rates among loggers right across Canada, and this situation threatens to undermine the entire industry.

By Tony Kryzanowski

common complaint heard among Canadian logging contractors these days is that while forest companies seem to have recovered from the 2008 industry downturn, logging and haul rates have not bounced back to reflect today’s reality—and today’s costs. This has resulted in a tense relationship in many parts of Canada between loggers and their clients. Herman Derksen, owner of Northwest Harvesting in north-central Alberta, speaks plainly about how current logging rates are having a direct impact on how he manages his company. 4

“The rates are not set up for you to be training people,” he said in an interview with Logging and Sawmilling Journal recently. In other words, because of how much he is paid compared to the cost to run his business, he can’t afford to keep operators employed if they can’t ramp up quickly to meet daily production targets. Derksen said he can’t afford to operate at less than peak productivity—all the time—just to pay the bills. Compared to when he started logging in 1998, he said that “fuel, expenses and employee wages are way higher, so the potential for failure is way higher. “Nowadays, your operators and your production are so key. Now, if you don’t

have exceptional guys in all your machines, you’re not going to survive.” During the 2008 downturn, Derksen halted all new equipment purchases, but as all contractors know, there comes a point when equipment wears out. That opens up a new can of worms for logging contractors nationally as it relates to rate negotiations—the influence of the exchange rate between the Canadian and American dollar on the current cost of equipment. Darcy Coleman, owner of Coleman Forest Products in Sundre, Alberta, says

Logging & Sawmilling Journal - December/January 2016

to page 6

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spotlight from page 4 that he anticipates that the cost to replace his Komatsu 450 tilting feller buncher will likely be about $140,000 more today, because of the exchange rate differential. Yet logging rates have largely remained the same since the day he bought it new in 2012. “We try to replace some machines every year just to stay current, but the future is going to be interesting given the escalating cost of equipment,” Coleman says. “The challenge is going to be how do we absorb a 25 per cent increase in the cost of machinery, with no change in the logging rates.” Wayne Lintott, General Manager of the Interior Logging Association (ILA) in Vernon, B.C., with 385 members as far north as Prince George and as far south as the American border, says that logging rates in the B.C. Interior dropped about 11 per cent during the downturn in 2008. They have gone back up, but not to the point where they reflect current operational costs and where contractors are satisfied. Over the last decade, some contractors in the B.C. Interior have also undergone a

significant and expensive change in how they log. For years, loggers in the southeast corner of the province delivered logs tree length. While they appreciate the significant investment forest companies have made to reopen and refurbish area

“Ten years ago logging contractors had a profitability that was very sustainable for their operation--now they are just breaking even or making a very small percentage.” sawmills, now, as a condition of continuing to log in that area, many had to make the transition to an entirely cut-tolength logging operation in a steep slope environment. “When you go from processing tree length wood to processing short wood,

you lose about 30 per cent production from a processor,” says Clint Lightburn, co-owner of Lightburn Ventures, who logs in the Kootenays near Cranbrook, B.C. “So, when I am running three processors to achieve my production on long logs, I’m going to have to run a fourth processor to make up what you lose in production by cutting short logs.” Lintott says that overall, dissatisfaction with rates is the number one concern among ILA contractor members, adding that if concern over rates is front of mind with contractors throughout their working day, that doesn’t make for a great relationship with forest industry clients. “Whereas 10 years ago they had a profitability that was very sustainable for their operation, now they are just breaking even or making a very small percentage,” says Lintott. As a further reflection of the struggle to make a buck logging in the B.C. Interior these days, Lintott says that they have members wanting to sell out. The challenge is that they are having a hard time finding a buyer. And given the challenge to be profitable at the end of the day, “unfortunately, the kids just don’t want to

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Logging & Sawmilling Journal - December/January 2016

spotlight take it over because of the liability behind it and the negotiating process they have to go through with the licensee.” He agrees that many logging contractors have now also taken on log hauls to subsidize their their logging operations. Some contractors say they have taken it on because they simply can’t afford to work with a separate log haul contractor and wait for logs to be delivered, as they are paid on the basis of cubic metres delivered to the mill yard. A similar concern with rates is happening on the B.C. Coast. “We know that during the 2008/2009 global recession, many contractors reduced rates in order to survive lean times during those years,” says David Elstone, Executive Director of the BC Truck Loggers Association (TLA). The TLA represents 450 independent forest industry contractors and suppliers, creating jobs in 110 Coastal communities. “Rate improvements since then have not kept pace with sawmill manufacturing company profitability and as a result, our contractor members are still struggling to remain sustainable.” Elstone says the trend toward the consolidation of tenures on both the Coast

and B.C. Interior is a major factor influencing rate negotiations. “The underlying cause of a lack of rate improvement both on the Coast and the B.C. Interior is a result of the consolidation of tenure, which has given the ‘majors’ an advantage when negotiating rates,” he says. “This, together with the current rate dispute mechanism within the Bill 13 regulation, has resulted in an inability to achieve sustainable rates for logging and road building.” Bill 13 allows B.C. contractors to seek arbitration if they feel their compensation is unfair, but according to the TLA, a change to the dispute mechanism—putting an emphasis on ‘fair market rate’ as a guiding principle—has tended to undermine what contractors can actually earn. “The majors use terms such as ‘market rate’ and ‘industry standard rate’ and fundamentally believe that all rates should reflect the last lowest bid for incremental work that they can find,” says Elstone. “This disturbing trend has undermined contractor sustainability and has the potential to undermine the industry as a whole.” He adds that when a major coastal company reports record earnings, while

the TLA has members going to auction because they cannot sustain their business, “there is clearly a disconnect between logging rates and manufacturing profits. They do not want to pay more, citing ‘market rates’ believing that there is always another contractor to take the place of those who fail financially.” However, there are different points of view within the logging community, and whether there is room for improvement in day-to-day operations. Some question whether loggers are operating as efficiently as they can. “Rates are one issue,” says Roger Nesdoly, general manager of Mistik Management in Meadow Lake, Saskatchewan, “but the actual (business) model, efficiency, attitude and ethic of individual contractors can vary greatly.” The company is owned by NorSask Forest Products and Meadow Lake Pulp, and is responsible for hiring logging contractors to provide wood for both these operations. While overall he says he works with a good group of

Logging & Sawmilling Journal - December/January 2016

to page 8

spotlight from page 7 contractors who first and foremost have a genuine desire to keep their clients financially viable, he sees significant differences on how individual loggers go about working with the rates offered. Like other parts of Canada, many contractors working in the Maritimes are also feeling financially challenged, but to address this issue, investigating efficiency is high on the agenda. Peter Robichaud, Executive Director of the Canadian Woodlands Forum (CWF) based in Truro, Nova Scotia says that he senses a greater co-operative spirit emerging among contractors and wood product manufacturers to work more collectively, so that the region’s small to medium size logging businesses can be profitable. CWF is a not-for-profit, membershipbased organization that fosters communication, information and tech transfer to help improve business relationships along the supply chain and to help its members work efficiently and productively to remain viable. At present, it works primarily in the Maritimes, with its membership consisting of a number of key loggers, suppliers,

and wood product manufacturers doing business in that region. While there are large companies like Irving prominent in the Maritimes, there are also many ‘generational’ sawmills operated by families, where the business has been passed on from one generation to the next. Like Roger Nesdoly working in Saskatchewan, Robichaud says there is a general local sense that raising contractor rates is not the only pathway to higher profitability. “A lot of guys feel that you can’t just keep running back to the mills for more money all the time,” he says. “I find that a lot of the larger companies have really stepped up to the plate and started assisting their suppliers with far more advanced process improvement type programs, really working and assisting the contractor to help him improve his business, productivity and efficiency.” Ultimately, the way that contractors operate day-to-day has a direct correlation to wood costs and contractor viability. “The companies recognizing that say, ‘you know, we’ve got to do something here or else we just won’t have anyone left to cut wood’,” says Robichaud, and

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what’s interesting is that Irving has been at the forefront of this initiative. But what happens in situations where contractors do become more efficient and are penalized for doing so? Wayne Lintott says he is familiar with at least one situation in the B.C. Interior where a logger did take steps to become more efficient with a new multi-stemming processor head. The outcome? The forest company reduced the logger’s rate because they realized he had taken steps to put more money in his pocket. “Where’s the incentive to become more efficient?” Lintott asks, adding that this practice of penalizing contractors who become more efficient has been going on for years. Unfortunately, this tactic of penalizing contractors on their rates once they become more efficient is not exclusive to the B.C. Interior. It seems like a fairly widespread practice with the consequences now coming home to roost, as some contractors have shown a reluctance to participate in any activities or initiatives launched by forest companies purportedly to help them work more efficiently. All too often they feel that this has simply become an excuse for wood product manufacturers to reduce logging rates. Bill Sauer, General Manager of the B.C. North West Loggers Association (NWLA), with its members operating primarily in the Terrace area, says his members know all about efficiency, since most make their living bidding on BC Timber contracts where the wood mix is typically 70 per cent pulpwood to 30 per cent sawlogs. That area of B.C. is a true free enterprise market, but it demonstrates what happens when markets drive prices to their lowest, most competitive point. Yes, Sauer says, his members are incredibly efficient and could probably teach other stump-to-dump contractors a thing or two about how to become more efficient. However, the downside is that with such an unpredictable source of income and so much downward pressure on prices, few are buying new equipment. Alberta’s Darcy Coleman understands that situation completely, especially given the current cost of equipment. He says one option his logging company is definitely considering is purchasing ‘lightly used’ equipment as replacements because they won’t be able to afford to buy new, given the current rate structure and exchange rate differential.

Logging & Sawmilling Journal - December/January 2016

to page 10

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spotlight from page 8 Other contractors make no bones about what the current rates structure will force them to do, and that is simply to hold onto equipment longer, commonly known as “bubble-gumming” equipment. Some logging contractors worry what influence current logging rates and the mountain of paperwork that comes along with the job will have on young people thinking about a career in logging. Despite the financial challenges, there are many older or retiring logging contractors eager to pass on the business to sons and daughters. Some are trying. The question is, will they survive at today’s logging and haul rates? After trying it, Gord Griffiths’s son, Patrick, outright refused. It was a heartbreaker for the owner of Hollyn Timber, headquartered in Dryden, Ontario and a forest industry veteran of nearly 50 years. But given the cost of logging today and the rates being offered, he completely understood. Fortunately, his son stuck around as a feller buncher operator, but in terms of taking the business over? He said, “no thanks.”

Dave Legg, Manager of the Dryden Forest Management Corporation, understands this situation all too well, reporting that logging rates in his area have not increased for many years. The Corporation manages a Sustainable Forest License (SFL) representing about 118,000 hectares of productive forest, consisting of 16 shareholders all of whom are loggers. This includes five active loggers in the Dryden Forest, two logging elsewhere, with the remainder either retired or no longer logging. “In the ‘good’ days, the idea of working outside was appealing and financially viable for many,” says Legg. “Today, that appeal and financial stability is not there. With many loggers getting older and retiring, they are not being replaced.” One issue pertaining to rates that is rarely considered is the cost of logging today, versus the “good old” days. A lot of the easy wood has already been harvested. “The areas we harvest now are the best of what is left, which is a far cry from easier logging in the 80’s and 90’s,” Legg says. “The increased costs and difficulty of logging seems to fall on deaf ears when

O N - B O A R D W E I G H I N G F O R T H E T I M B E R I N D U S T RY

SOLUTIONS

negotiating price. Price seems to be determined based on distance on a map.” A recent new trend that will definitely have an influence on logging in general throughout Canada over the short term is the downturn in the oil patch and the sudden availability of experienced equipment operators, which could influence wages now that there is less competition for employees. Coleman says that at one time when they advertised for a processor operator, they might get one or two applications. A recent advertisement resulted in 50 applications. Both Peter Robichaud in the East and Wayne Lintott in the B.C. Interior say their members are aware of this sudden availability of workers, but they aren’t depending on it. “As soon as the oilfield starts back up again, they’ll be gone,” says Lintott. “So, it’s not going to be a stable workforce that we will be getting. I don’ think for one minute that the kids coming back are going to stay if the oilfield opens up. The money there is too good for them.”

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BClogging

Changing gears in B.C. coastal logging B.C. coastal logger Bob Lee has had to change gears with his logging operations in recent years, and this involved some big time changes, with a move to second growth wood, and purchasing and operating bunchers and processors. By Paul MacDonald

ince many logging contractors started out their careers by operating a skidder or buncher, they are good at changing gears on equipment—but in recent years, they have also had to be very good at changing gears with their logging contracting businesses. Vancouver Island logger Bob Lee knows all about that. Through the mid-1990s to the mid2000s, Lee operated a logging camp operation for harvesting western red cedar on the mid-B.C. coast. Then the downturn came, and due to a drop in U.S. housing construction, the demand for cedar wood products dried up. “It was like the switch went off—it was that quick,” says Lee.

The switch in gears came when they received work from Vancouver Island forest company, TimberWest, for harvesting work on the Island. They went from harvesting old growth wood to second growth. With the camp operation, the focus had been on traditional old growth harvesting equipment, such as yarders. “We did bring some of that equipment down from the camp and we work with it, but we also had to get a lot of expensive

equipment—bunchers and processors— and we did not have a background in that type of equipment,” explains Lee. “It was a major shift in equipment and logging techniques, to move to second

Logging & Sawmilling Journal - December/January 2016

growth wood, and it was totally new to me—I had no experience in that type of equipment. It was a bit of a leap of faith. Fortunately, we were able to get people in the seat of equipment that belong there.” For the TimberWest work, Lee’s company, Nanaimo Lakes Logging, took on some of the company employees who, fortunately, knew a lot about operating mechanical harvesting and processing equipment. “There were a lot of good guys,” says Lee. “They were able to hop into the machines, and go straight to work.” Lee now has an operations manager, Chris Flynn, overseeing the Island operation who has a strong background in mechanized logging and a broad equipment background. The 40-year-old Flynn can run every machine on site, and oversees the Vancouver Island work. “So we had a good crew, we had

the work, and we were able to get the equipment—the rates were low, but we were able to put the new operation all together,” says Lee. These days, Nanaimo Lakes Logging and associated company Bear Lake Logging, which still operates the logging camp, share an office and shop in Parksville on Vancouver Island with Black Diamond Mechanical and Welding, which does large repairs for the two logging companies, along with doing work for other logging firms. Lee’s partners in both Nanaimo Lakes Logging and Bear Lake Logging are David Pope and Timber Johnson. Bear Lake Logging has also been able to keep its logging camp operation busy. It has done work on the coast in the region around the town of Bella Bella, and the former mill town of Ocean Falls. The town of Ocean Falls used to be home to a large pulp and paper operation, with a populaBear Lake Logging’s Bob Lee.

Recent equipment additions to the logging operation include a new Hitachi 370 with a Pierce grapple processor (GP) head—the first GP head on Vancouver Island—and a Hitachi 290 log loader, both from Hitachi dealer Wajax Industries.

tion that peaked at 5,400, before it was shut down in 1980. “We’re basically trying to establish a home in that general area of the midcoast with our camp barge and all our old growth remote logging equipment,” explains Lee. The mid-coast work was for the Heiltsuk First Nation/Western Forest Products joint venture managed by A&A Trading Ltd, in the Bella Bella area. It is currently working for forest company Interfor, near Ocean Falls. “The challenge for the mid- B.C. Coast area is that through the lean years, cedar demand and prices just dropped off the charts, so there really hadn’t been much going on up there,” says Lee. “But now the cedar market has improved dramatically, so it’s a situation of getting all the infrastructure and contractors—ourselves included— set up and working up there again. “The companies wanted us to go up there, which is great, but the challenge is in getting the work all lined up and getting roads in place, after such a dry spell. But it seems to be coming together now. The last few moves we’ve made, we’ve been able to go from one job to the next without missing a beat. We’re hoping we can build on that and keep things going—with the camp operation and our barge, we’re pretty much geared for that type of work.” Loggers in the camp operation work on a two weeks in/one week out shift. There used to be many logging camps

to page 14 Logging & Sawmilling Journal - December/January 2016

BClogging from page 13 scattered along the B.C. coast, but these days they are far fewer in number. And they are quite an upgrade from the logging camps of the past. Lee wants to keep the loggers who work in camp—who are a different breed from the loggers who want to stay close to town—happy. So, what are the challenges of running a logging camp in 2016? “Number one is you have to have good accommodations for them,” he says. “The guys who go to camp want to have a nice place to stay. And you need to create a fairly consistent schedule for them, so they know when they are going to be working, and when they are going to be home. That’s part of the bigger challenge of making sure you have the logging work in front of you, and you don’t have too many delays. “What’s really important is you want to have the right machinery and the right people to make it all work, so you can have a safe and continuous operation, with people coming and going from camp.”

At one point, perhaps in the 1970s, having satellite TV, or even a large choice of movies on tape, would have been sufficient at logging camps. “Now, communication is important, so we have satellite phones and we have the Internet,” says Lee. This all helps to attract and retain people. “I think we’ve got a really good group of people at the camp, who are dedicated to making a remote operation work.” Their logging camp can accommodate 29 people, two-thirds of whom are Bear Lake employees, with the balance being contract fallers and other forestry related people. The Bear Lake crews, who are from all over the Island, and some from the Lower Mainland and B.C. Interior, are flown in to camp aboard Turbine Single Otters, from the Campbell River Spit. Some of the logging equipment, such as log loaders, hoe chuckers, used at the camp operation could be shared with the Nanaimo Lakes logging operation, on Vancouver Island. But to keep both operations efficient, they pretty much have their own equipment set-ups. With both operations, Lee works to have good equipment for employees.

“They want to show up in the morning, hop on a machine that is going to start and run properly—they don’t want to be fighting their equipment to have it work,” he says. “We do our best to keep the equipment maintained.” Lee noted that some coastal camp operations opt for large yarding equipment, like a 7280 Cypress. But they have chosen to go with more mid-sized equipment, like the Madill 122 and Cypress 6280. The Nanaimo Lakes operation, in addition to the mechanical harvesting equipment, has Madill 120 and Madill 122 yarders. The yarders are fairly versatile in that they could be used in either operation, but because of the logistics and distances involved in moving equipment, the equipment pretty much stays put in the respective operations. ‘We do a little bit of sharing equipment, but we try to keep them separate operations, and keep them busy at each operation,” says Lee. For Nanaimo Lakes Logging, the logging equipment line-up includes a LinkBelt 350 with a Waratah 624C head and a Tigercat LS855C tilter with a Waratah 623C head. “We also have a new Hitachi 370

Logging & Sawmilling Journal - December/January 2016

Ontariologging with a Pierce grapple processor (GP) head—we bought the first one on the Island,” says Lee. “It’s working really well,” he says. “We’re really happy with it. Our intention is to be able to use it as a loader, as well. It’s tied with a yarder, and that way we don’t need to have both a loader and a processor. “We can get to situations where the yarder is off on its own, and it needs equipment to support it. A loader can’t process the wood, and a processor can’t load wood. So we went with the Pierce GP head, and now we have the ability do both. “It’s really versatile—I can’t see any compromise when it comes to the processing. As a loader, perhaps it’s a bit of a compromise in second growth wood, but not that much.” One of the most recent purchases was a Hitachi 290 log loader, from dealer Wajax Industries. The equipment line-up includes a couple of older Komatsu log loaders, but their focus recently has been more on Tigercat, from B.C. dealer, Inland, formerly Parker Pacific Equipment, and Hitachi equipment from dealer Wajax Industries. They have a Tigercat 870C tracked feller buncher, a Tigercat LS855C hoe chucker with a Waratah FL85 directional felling head, a Tigercat H855C processor with a Waratah 624C and a Tigercat 880 loader, which does some log loading, but which is mostly used for hoe chucking. “We get good service from Inland,” says Lee. As mentioned, they use the services of Black Diamond Mechanical and Welding for major maintenance work. One of their Madill 122 yarders received a major upgrade, and is now back in camp. The day to day repairs for both Nanaimo Lakes and Bear Lake Logging are done on site, with their own heavy duty mechanics. “My thinking generally with equipment is that it’s really important to have a mix of equipment in age,” says Lee. “We have some new equipment, and some mid-cycle equipment, and some older equipment. “The new equipment is great, but it’s really expensive, and the depreciation is really high in the first two years. If you had all new equipment, you’d never make it financially. And if you had all old equipment, you’d never make it because you’d be plagued with breakdowns. “There seems to be a sweet spot for equipment about mid-cycle, where depreciation has dropped off, the loan payments are gone, and it is still productive, reliable and current. I guess the ideal would be to have all mid-cycle equipment, but of course the equipment gets old. “It seems like you need to have a blend—you need to be thinking about bringing new equipment in and selling off or parting out the older equipment, and mixing it all together.” This plan sees them buying one or two new pieces of equipment each year. With the high cost of investing in equipment—and the general cost of operations—the financial sustainability of the coastal contract logging sector has been an ongoing issue as the industry recovers. Rates have increased, but logging contractors say there needs to be more recognition by the licencees of their costs, and responsibilities. “There really has been a shift in responsibilities to the contractor,” says Lee. “Being a logging contractor is a lot more demanding than it used to be—it is a lot more involved from the safety and environmental aspects. “It’s a totally different business than it used to be,” he added. to page 16 Logging & Sawmilling Journal - December/January 2016

BClogging from page 15 “We have much higher overhead than a contractor had 25 years ago.” There have been ongoing discussions about rates between contractors and the licencees, both individually, and through the Truck Loggers Association, which represents the coastal contractors. “I think it’s critical that the licencees and the contractors work together to come up with a longer term plan and stronger working relationship that has a future to it, rather than simply bidding on logging jobs,” says Lee. “To go from job to job—particularly in remote locations, and not have the long term certainty of the rate or work—is very difficult. There needs to be more of a partnership.” That partnership ideally would include a rate structure that acknowledges and reflects the history and experience that contractors bring to the table—and the huge investment they have in their businesses, their people and their logging equipment. These days, Lee works hard to keeping both Bear Lake and Nanaimo Lakes operations busy. But market conditions are

For Nanaimo Lakes Logging, the logging equipment line-up includes a Tigercat LS855C tilter with a Waratah 623C head, a Tigercat 870C tracked feller buncher, a Tigercat LS855C hoe chucker with a Waratah FL85 directional felling head, a Tigercat H855C processor with a Waratah 624C and a Tigercat 880 loader, from B.C. Tigercat dealer, Inland, formerly Parker Pacific Equipment. kind of mixed. The Chinese market for lumber has cooled off. “The U.S. market is coming back, but it’s gradual.” At this point, Lee is a bit sceptical about all the talk there has been done

about a super cycle in lumber prices. “I think we might have been through the super cycle already—and it really wasn’t that super,” he says.

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equipmentprofile

Deere delivers with new 748L skidder The new John Deere 748L skidder is helping Alberta logging operation Forest Trotter Contracting be more productive, especially on hilly ground—and offers more operator comfort, to boot. By Tony Kryzanowski

hile logging on its own is a stressful business venture, logging in northern Alberta’s muskeg region has a way of adding to that business stress because of the short production window that is available. Forest Trotter Contracting Ltd. has just made a major new investment in John Deere’s new 748L skidder to ensure maximum production and uptime when they need it in these kind of tough spots. Based in LaCrete, Alberta, Forest Trotter Contracting is one division of a three company partnership that includes another logging company, Exact Harvesting, and a large road building division, Northern Roadbuilders. The owners are Philip Unrau, Harvey Wolfe and David Driedger. Forest Trotter Contracting started out in 1998—at that time, Unrau was an employee of the company. He bought the company with Wolfe and Driedger when the owner decided to sell out in 2009. In addition to logging, the company also has a strong background in forest reclamation and environmental work, as well as road building, which explains to some extent its three divisions today. “I grew up in logging,” says Unrau. “My dad used to log for the local sawmills for as long as I can remember. I always lived in camp and grew up in the industry.” Forest Trotter Contracting is a stumpto-dump contractor that logs for the Tolko Industries sawmill in High Level, Weyerhaeuser in Grande Prairie, and the Norbord oriented strandboard (OSB) plant in High Level, harvesting a total of 650,000 cubic metres annually. The majority is softwood, with 50,000 cubic metres of

hardwood for the Norbord plant. The softwood harvest is 300,000 cubic metres each for Tolko and Weyerhaeuser. The average diameter of the logs is 10” to 12”. While they only have one wood deck of generally 16 ‘ logs for Norbord, there are three log sorts at roadside for Tolko based on diameter, with the majority in 20’ lengths. Logging for Weyerhaeuser is still tree length, with a sawlog and pulpwood sort at roadside. Unrau says that the logging done in the Grande Prairie area for Weyerhaeuser occurs throughout most of the year, with many oil and gas access roads already available to reach forest cutblocks. The terrain is generally hilly within the cutblocks themselves. Logging for Tolko and Norbord further north is a different story. There is only a short window of logging for the Tolko sawmill and Norbord OSB plant because of the muskeg terrain where wood is harvested, and unlike the Grande Prairie area, there is little to no existing access to forest cutblocks. “In the north here, it’s kind of swamp logging,” says Unrau. “You have to cross a lot of swamps just to get to the wood. So we have to wait for winter, build ice roads and start our season after November and log until the end of March.” The company uses a low ground pressure Bombardier BR275 snow groomer— the same machine that is used to groom ski hills—as an initial step to prepare the ground so that it freezes for building access roads to their cutblocks. What helps is that the area around High Level gets colder, faster, and it generally stays cold all winter as it is located in the extreme northern part of the province.

In late fall, the grass is bladed down and then trucks add water to freeze and harden the surface. As soon as the roads are deemed hard enough for heavy truck traffic, the logging equipment is hauled in—and the season begins. Normally, accessing cutblocks is the biggest issue. Once in the blocks and the roads are frozen in, the logging works well but there is that constant pressure to maintain production and have a backup plan in the event that a piece of

Logging & Sawmilling Journal - December/January 2016

equipmentprofile

Forest Trotter Contracting foreman assistant Rod Friesen (left), skidder operator Ben Martins (in cab), and Weyerhaeuser operations foreman Peter Schmidt put the company’s new John Deere 748L skidder through its paces and give it a thumbs up for operator comfort and ease of operation for lesser experienced operators.

equipment has unexpected downtime. “The challenge is always to produce the volume you expect in four months,” says Unrau. While the logging season is longer further south in the Grande Prairie region, the fact that it is warmer presents its own challenges from an equipment standpoint. Warm weather in winter, which can sometimes occur in the area around Grande Prairie, is not the logger’s friend, and it takes longer for the ground to freeze.

“We have more problems with Weyerhaeuser in Grande Prairie with skidders needing more flotation and wide pads on the bunchers so they don’t sink,” says Unrau. “It’s so warm that the ground just doesn’t freeze as much. On our new John Deere 748L skidder, we installed wider tires and that helps a lot.” Overall, their fleet consists of three John Deere 853G feller bunchers and four Tigercat 870C feller bunchers. Their skidder fleet consists of the new John Deere

748L skidder with another one on order, two John Deere 848H skidders, two John Deere 748G III skidders, two Tigercat 630D skidders, a Tigercat 630C skidder, a Tigercat 615C skidder, and a Caterpillar 525 skidder. They bought two new John Deere 2154 processor carriers last year. One is equipped with a Waratah 622 BII

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equipmentprofile from page 19 processing head and one with a Waratah 622 C processing head. They also have a John Deere 2054 delimber carrier. Their log loader fleet consists of a John Deere 892E, a Caterpillar 325C, a Caterpillar 330LL, a Caterpillar 330L, a Caterpillar 330BL, a John Deere 3754D, and a Tigercat 880. Their extensive road building fleet consists of a variety of Caterpillar dozers in various sizes, as well as a Hitachi ZX330LC excavator, a John Deere 270LC excavator, and a Caterpillar 322L excavator. Unrau says Forest Trotter Contracting has operated John Deere 748 GIII skidders for about 10 years and have noticed a number of upgrades on the new 748L model. “The John Deere 748L has a nicer cab and offers more operator comfort,” says Unrau, “and it’s better balanced.” On the older John Deere 748 skidders, they noticed that the weight was lighter in front which made it difficult to start a heavy drag on hills if the ground was frozen. With the new model, the front end does not lift up at the start of a drag, so it is a smooth process. “We did a couple of trials on hills with the 748L and the 848H, and that 748L pulled bigger drags than the 848H could pull on flat ground,” says Unrau. “We’re getting good results.” He adds that the new John Deere 748L skidder makes their operation much more

productive, especially on hilly ground. In the past, their bunchers were laying down half bunches for the skidders to pull up hills. That is no longer necessary with the John Deere 748L. “We should be almost cutting our cycle time in half by being able to pull full drags up the hills rather than dragging half loads,” says Unrau. He adds that John Deere has also ‘beefed up’ what was on the older 748 GIII models. For example, he says the centre bearing where the 748L skidder articulates is about double the size of older units. In terms of maintenance, he says there is good access to the whole machine and they are consuming a reasonable amount of fuel compared to the amount of wood that the skidder is transporting. From an operational standpoint, Unrau says that putting a greener operator on the unit should not be a challenge based on how user friendly the controls are designed. “I jumped on the machine when we did a demo and I hadn’t been on a skidder as an operator so it would have been like me being a new operator,” he says. “Everything felt like it was in the right position.” Unrau had operated bunchers and excavators, and being that the John Deere 748L is controlled with joysticks, he says it felt like sitting in a tracked machine. “I think it is going to be very good for making use of new operators,” says Unrau. “Seasoned operators coming off the

John Deere 848H, they get used to it very quickly.” Forest Trotter Contracting is in the process of further renewing their fleet and have purchased a new John Deere 953M feller buncher, another John Deere 748L skidder, and a John Deere 2154 processor carrier, as well as a Tigercat 880 log loader and an Tigercat 870 feller buncher, some of which are dedicated to their Exact Harvesting operation. The cost to Canadian logging contractors of replacing equipment because of the Canadian dollar exchange rate versus the American dollar continues to be front of mind for many. For example, Unrau says it will cost about $100,000 more to replace his feller buncher today vs. what it would have cost a year ago. Finding enough qualified operators continues to be a major challenge, although Unrau says it has gotten a bit better with the downward spiral of the oil and gas industry. “The more cubic metres you push through a machine in an hour, that’s what makes you money and you can only do that with good, qualified, experienced operators,” says Unrau. Despite the challenges, Unrau says that the company is interested in growth and potentially taking on more volume, adding that he looks at all options and if they are able to take on more volume or a new contract, he looks at all offers seriously.

Forest Trotter Contracting expects to be twice as productive with its new John Deere 748L skidder in icy, hilly conditions, which will help them meet their production targets during the short, four month logging season near LaCrete, in northern Alberta. 20

Logging & Sawmilling Journal - December/January 2016

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Where do you go from here? As a business owner, the important decisions you make today can significantly impact where your business will be tomorrow. Do you downsize or expand? Diversify or specialize? Re-invest in new equipment and technology or prepare your business for succession or sale? That’s where MNP’s Forestry professionals can help. By delivering industry insights and solutions that go beyond traditional accounting, we look at your business from all angles so you can plan strategically and create the future you envision. Contact Blair Traxler, CPA, CA, Business Advisor, Forestry & Forest Products, Prince George, B.C. at 250.596.8313 or blair.traxler@mnp.ca

Succeeding at Succession Maximize Value By Ensuring Your Corporate Structure Aligns With Your Exit Strategy

Whether you run a logging company or manufacture wood products, you’ve put in a lot of effort to grow your business – but what happens when you retire? “A common question I ask when I meet with new or existing forestry clients is, what is your plan for retirement? Common responses include selling the business, transferring the business to my son or daughter, selling the business to employees or taking my equipment to auction,” says Blair Traxler, CPA, CA, a Business Advisor with MNP’s Forestry & Forest Products practice in Prince George. “While it’s great that many of my forestry clients have a response, it’s important they get this plan into action. As a rule, I tell my clients they need to plan their exit five years in advance to maximize the businesses value and minimize taxes. Having your business ready for sale does not mean you have to sell it, but if the opportunity presents itself, you are ready to take it.” When approaching retirement, it’s important to ensure your corporate structure aligns with your exit strategy. If the current structure does not align, it will either inhibit you from exiting the business in the way you intended or it will result in excessive income taxes, neither of which is an attractive option. Below are some common ways you can exit your business and the tax issues that should be addressed to maximize each option.

Selling Your Business When the shares of a business are sold, the individuals who own the shares are eligible to claim the lifetime Capital Gains Exemption, which was $813,600 in 2015 and is indexed to inflation going forward. However, if the company holds passive assets it could prohibit your from claiming the exemption. Additionally, a structure should also in be place that allows you to multiply the number of Capital Gains Exemptions available. If possible, two or more Capital Gains Exemptions are better than one. “The number one issue I see with selling a business is that clients come to us too late to maximize the business’ value,” says James Kungel, CPA, CA, MNP Tax Specialist. “Structuring the company to remove passive assets and multiply the Capital Gains Exemption cannot take place at the time of the sale, it must be done years before you want the transaction to take place. If the structure has not been implemented years in advance, you may be faced with unintended tax consequences.”

Transferring the Business to Your Son or Daughter Transferring the business to the next generation can be problematic from an income tax perspective, as non-arm’s length transactions have different tax consequences than an arm’s length sale. “If you utilize your Capital Gains Exemption, it results in tax consequences to your son or daughter. If you do not utilize your Capital Gains Exemption, you end up paying more tax than necessary,” explains Kungel. One alternative is to have the company redeem your shares, however, this will result in you paying tax at dividend rates (40.61%) rather than at capital gains rates (23.85%). There are other ways to mitigate the tax consequences of a transfer of the business, however, they must be arranged in advance of the transaction.

Selling the Business to Employees Many employees would love the opportunity to take over the company. However, the most common problem is that employees do not have the capital necessary to purchase the business so owner financing is a common solution. “Under this option it is important that the owner look at a structure that allows them to retain control of the corporation or at least have a say in operations given that the owner will bear the majority of the consequences should the business fail before they are paid out. Unanimous Shareholder Agreements are also extremely important in this case to minimize risk,” adds Kungel.

Taking Equipment to Auction “The most common response I hear from owners is that they will simply take their equipment to auction. This option is fairly simple, however, if properly planned, you can minimize the tax you have to pay on the distribution of corporate funds,” explains Traxler. Exiting the industry happens in one of two ways; voluntary or involuntary. In both cases, you owe it to yourself to determine the most appropriate corporate structure long before an actual sales transaction takes place. Maximizing the value of your business and paying less tax means having more money left over in retirement to spend time with your grandchildren, travel the world or look for your next opportunity. For more information, contact Blair Traxler at blair.traxler@mnp.ca or James Kungel at james.kungel@mnp.ca.

Cutting lumber drying costs

anadian lumber producers literally spend millions of dollars on electricity to circulate air in their dry kilns to dry lumber every year. But what if a mill or lumber drying operation could significantly reduce its power costs? There is a huge incentive to do so— with power being a significant variable cost and potentially controllable, any saving has a positive impact on a company’s income statement. Even shaving 5 or 10 per cent off your power costs would result in a significant saving. And reduced energy costs naturally result in reduced cost per thousand board feet of lumber dried. Add to that, if an operation can reduce 24

drying time, it can essentially increase its drying capacity—without adding capital cost to build new kilns. Southcoast Reman, a large custom lumber remanufacturer and kiln drying operation in Maple Ridge, B.C., just outside of Vancouver, is doing even better than 5 or 10 per cent. A new kiln control system operating in 2 of its 7 dry kilns has been able to achieve a combined savings of 30 to 40 per cent in electrical power costs. The new control system’s contribution is based on the new principle of “listening to the wood”. Chris Luke, general manager of Southcoast Reman, says their operation is always looking for innovative ways to be more cost efficient. The groundwork for the adoption of the new kiln control

system goes back several years, when Southcoast initiated two feasibility studies with the help of BC Hydro, to identify opportunities to make their kilns more energy efficient. “We believed we had opportunities to maintain and improve drying performance, while reducing our kiln drying schedules and the electrical and gas consumption the kilns require to operate, as well as reducing our maintenance and electrical service cost,” explained Luke. As a custom operation, Southcoast is an independent privately-owned business, and provides lumber remanufacturing and kiln drying services only. It doesn’t

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lumberdrying from page 24 buy, remanufacture or sell its own lumber. Custom drying accounts for approximately half of Southcoast’s service business. The company’s focus is to provide its customers with superior custom processing, kiln drying and packaging services, accurate documentation, and on-time shipping. Their customers include the largest forest products company on the B.C. Coast, Western Forest Products, and forest company Interfor, as well as a number of smaller independent manufacturers and distributors of higher value lumber from all the coastal wood species. “We don’t own lumber,” says Luke. “Because we are exclusively a service provider, we have to be extremely cost effective and efficient, or we won’t be in business.” Southcoast’s seven direct gas-fired side-loader kilns were installed in 2007. However, the drying controls technology needed updating. The control system had no Programmable Logic Controls (PLCs), or Variable Frequency Drives (VFDs) on the circulating fan motors or blower fan motors to control fan speeds to facilitate

The new Vacutherm kiln controls system at Southcoast Reman is generating lots of interest in the industry. Jim Parker, President of Vacutherm (above, second from right) reviews some of the features of the system to (from left) BC Hydro’s Kal Sahota, Steve Quon and Markus Zeller. In the centre is lumber drying expert Sita Warren and on the far right is Chris Luke, general manager of Southcoast Reman.

the management of electrical and gas consumption. A completely new kiln control was essential to optimize the kiln drying

schedule, to reduce both electrical and gas consumption, as well as lower maintenance and electrical service costs due to faults arising from the original control

Logging & Sawmilling Journal - December/January 2016

lumberdrying systems. Lumber drying expert Sita Warren had worked with Southcoast from the beginning, conducting BC Hydro-funded energy efficiency feasibility studies back in 2009 and 2010. Warren was retained by the company to develop, track and report on their kiln energy performance which formed the baseline. “Long story short,” says Luke, “working with Sita, we sought her insight for internal improvements and identified what we considered to be the best kiln control company that could not only design, but also build the system we needed.” “The ball was really put in our hands,” says Jim Parker, President of Vacutherm, of Warren, Vermont. “The challenge was to build a conventional kiln control system.” As the company’s name implies, Vacutherm are experts at building and installing kiln controls for vacuum kilns, as well as building vacuum kilns themselves. “When we first looked at this, it looked pretty straightforward—but when it came to implementing some of the sophisticated energy management controls that were necessary to save electricity and gas, that took an enormous effort by our engineers,” said Parker. Vacutherm already had a very sophisticated control system which formed the basis for the software for the new kiln controls at Southcoast. That said, there were still several years of development, much of it focused on developing very sophisticated computer modeling systems, and air flow and heat algorithms. But following that, the company was able to build a prototype, test it, tweak it … and then designed, engineered and built the first production conventional kiln controls. The new kiln controller systems have now been installed in two 80,000 – 90,000 board feet conventional direct gas-fired kilns at Southcoast. The control system optimizes the drying schedule while maintaining the company’s high quality standards—and even providing the opportunity to improve those already high standards. There has also been a big reduction in steam use for humidification purposes, thereby reducing gas consumption for the boilers that are used for conditioning lumber. Essentially, Southcoast is drying faster and with less energy, both electricity and natural gas from the direct gas fired burners used to heat these kilns, as well as gas required to fire boilers used

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lumberdrying from page 27 to produce steam used in the conditioning process. “Some of this seems counter-intuitive,” says Parker. “Reducing drying time usually means drying fast, and possible lumber damage. But we have proven that is not the case. It seemed hard to believe, but once we fully understood it, it makes perfect sense.” The more gently you can dry the wood, the less likely you are to case harden or cause other defects, such as cracks and checks. “It’s a more natural drying process,” says Parker. What the system does, says consultant Sita Warren, is listen to the wood, and the information the wood is providing. “We’re listening to where the wood is at, and when it is willing to give up moisture, and then pushing it to give up that moisture at just the right time,” explains Warren. “Getting the water out of the wood now requires less energy, and takes less time. And that’s why we have been able to accomplish the energy savings numbers. “I’ve always wanted to see this happen,” says Warren, who has worked in the lumber drying area for decades. “In the past, with kiln systems, we have been telling the wood what we want it to do. But with the

new control system, the wood is telling us what its characteristics are, its initial moisture content, how much heat it needs, how much air flow it needs—essentially, what it needs and when it needs it, so there is no checking, case hardening or warping. “The wood is telling us, through the system, what it needs and what it doesn’t need. And through computer modeling, the control system reacts to that.” The system Vacutherm has developed can replace aging, outdated, or even just underperforming kiln controls. It was also Vacutherm’s goal to provide efficient and powerful controls without being overly complicated. Its TOUCHDRY operator interface is easy to use and simple to understand, and provides operators with the opportunity to optimize the kiln schedule. “The kiln operator can be trained on the system in an hour or two,” says Parker. “We can’t be Apple, but we’ve made the system fairly simple.” The energy management features on the Vacutherm system use several proven algorithms to optimize airflow and reduce energy costs. Customers with 600FPM or more air velocity in their kiln and no existing speed control on their fans can see significant electricity savings, and thanks to the system’s smoother control, reduced steam demand if that is used for conditioning.

The new Vacutherm kiln control systems have been installed in two 80,000 –90,000 board feet conventional direct gas-fired kilns at Southcoast Reman. The control systems optimize the drying schedule while maintaining the company’s high quality standards—and even providing the opportunity to improve those already high standards. 28

A remote control feature, along with the ability to alert operators by e-mail or text message, also offers real time awareness of mechanical problems in the kiln. No longer does a kiln run for months with fans out of service or vents malfunctioning, causing increased steam demand, longer drying times and poor drying quality. “When the Southcoast kiln supervisor fired up the kilns with the new control system, they started drying wood like they always have,” says Parker. “But the sophistication of the new system offers the opportunity to achieve major energy savings.” Where to from here for the system? Vacutherm is ready to roll it out at other drying operations, sawmills—and other forest industry plants. A similar system is being designed for installation at Coastland Wood Industries’ veneer drying plant in Delta, B.C., Southcoast’s sister operation. Veneer drying is a different process, with feeding of veneer being done continuously, rather than the batch drying that is done with lumber. But the computer modeling principle remains the same. And instead of listening to the lumber, the system listens to the veneer, as to what is required to dry it properly. The system has to be even more responsive to the information it gets due to the different types and thicknesses of the veneer.

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lumberdrying from page 28 With operations such as Coastland and Southcoast Reman, Vacutherm’s overall approach is to evaluate conventional kiln applications for both energy savings and time savings opportunities. With the company’s evaluation tools, it can quickly determine opportunities for power utility incentive programs, such as those offered by BC Hydro or other utilities, or optimization opportunities. The company says this conservative approach helps customers make decisions based on solid financial payback numbers. And there can be substantial savings for sawmill operations, and their drying systems. Often, the focus in sawmills is looking for productivity improvements,

hence lower operating cost in the primary manufacturing and lumber sorting areas. But as the Southcoast experience shows, there can be significant savings on the kiln drying side of the business as well. Vacutherm will also be looking for ways to further improve the system. “The more we learn, the more feedback we get, we’re only going to get better at squeezing more out of these energy systems. I want us to be able to turn that VFD down one hertz a little bit longer, if we can. But we’re not going to know when and how we can do that until we have more experience.” BC Hydro notes that while the Southcoast experience has delivered energy savings of 30 - 40 per cent, savings of 15 to 25 per cent will be more typical. “The

potential is site and wood specific,” says Kal Sahota, senior key account manager for BC Hydro. Southcoast is a custom operation and primarily dries high value coastal wood. There are variables that they cannot control resulting in drying schedules being different with many interruptions that are just part of this custom service business. The SPF lumber being dried in the B.C. Interior sawmills that own and control the lumber being dried, is more standard, with typical drying times of one or two days. Markus Zeller, specialist engineer at BC Hydro, noted that each kiln load of lumber is unique, in terms of what its energy needs are. “Each tree is different—every tree has its own fingerprint,” says Zeller. “If you can get feedback from the lumber, then you can get the final moisture content to exactly where you want it. “If a lumber customer is looking for 14 per cent moisture content, BC Hydro wants our customers to achieve that level of service for them with the lowest amount of energy—not 11 per cent with more energy or 18 per cent with not enough energy.” Sahota and Zeller said that BC Hydro is assisting customers, such as Southcoast, to achieve sustainable energy savings with its incentive programs. “We want to help customers achieve real, long term savings. Both Sahota and Zeller praised Southcoast Reman for being a trail-blazer, and being willing to try new technology. “With new technology, there can be plenty of companies that want to be first to be second, so to speak, in terms of employing new technology,” said Sahota. “But Southcoast has taken a leadership position, and was the first to take this on. “BC Hydro played a role with some incentive funding, but the risk and the ownership and system responsibility was borne by Southcoast,” he added. And now the company is reaping the benefits and savings.

Logging & Sawmilling Journal - December/January 2016

BClogging

By Jim Stirling Getting past the hurdles of harvesting on I

Haida Gwaii

temizing them can make the situation sound worse than it is. But constraints are a fact of log harvesting life for Taan Forest. Right off the top, about 52 per cent of the land base in Haida Gwaii—formerly the Queen Charlotte Islands—is formally protected by one category or another, like parks and reserves. Take away lands that are unavailable and the northern British Columbian island’s timber harvesting land base shrinks to between 20 and 25 per cent, estimates Jerome Benoit, planning-contract supervisor with the Haida-owned Taan Forest. There are also numerous Haida cultural features within the working forest that must be accommodated through the timber harvesting planning process. An

Logging & Sawmilling Journal - December/January 2016

BClogging

Certification provides a market edge for Taan Forest

example is “monumentals”, large mature trees that may have values for pole carving or other ceremonial purposes. The 1.20 cubic metre per tree volume and 110 centimetres diameter minimums are just the beginning parameters on a list that must be met to qualify trees as “monumentals”. Some cedar take hundreds of years to achieve “monumental” status. Several forest plants also require accommodation for varying reasons including devil’s club, fairy slipper and crabapple. Other constraints include yew trees (partly for medicinal purposes), bear dens (Taan is Haida for bear) while marbled murrelet and goshawk habitats also have to be protected in the planning process. Riparian zones and buffers are part of to page 34

he archipelago of Haida Gwaii curves like a protective shield up to 130 kilometres out in the Pacific Ocean from British Columbia’s northern mainland. The land and sea and the living things within them have shaped all that is Haida Gwaii. They are the mirror image of the islands’ rich culture. Trees flourish in the mild maritime climate. Wood products made from them traditionally have high value and quality. Taan Forest, owned by the Haida people, wants those values and qualities reflected in its markets. Part of the strategy for achieving that is why the company turned to the Forest Stewardship Council (FSC) to certify its approximately 480,000 hectares of forest operations on Haida Gwaii. Taan joins much larger forest companies in Canada like Canfor, Tembec and Al-Pac which have raised the FSC standard to demonstrate to their customers their wood products originated on land that conserves biodiversity and is responsibly and sustainably managed. All told, about 23.5 million hectares of Canadian forests have been certified against FSC’s forest management standards. The FSC was co-founded in 1989 by the Rainforest Alliance and is the world’s first global sustainable forestry certification program. The certification process involves the on-the-ground evaluation of a forest by an independent third party certifier. Keith Moore is an independent

Logging & Sawmilling Journal - December/January 2016

consultant and principal in Moore Resource Management, based in Queen Charlotte City on Haida Gwaii. He has worked as a lead auditor and certifier for the Rainforest Alliance since 2000 in five Canadian provinces and nine countries. However, Moore was not involved in the Taan Forest accreditation process on Haida Gwaii. The FSC recognizes regional differences in a country as large and diverse as Canada through its classification standards system. They include B.C.; the boreal forests; the Maritimes and the Great Lakes/St. Lawrence regions. Auditors will typically put together a team to conduct the accreditation process. It begins with a detailed assessment followed by four annual audits to ensure the standards established are continuing to be met in forestry and the downstream chain of custody during each five year period of accreditation. “The FSC certification is the gold standard in our approach to market credibility,” points out Bob Brash, chief operating officer with Taan Forest. The company is in the process of diversifying its product range to include higher value and niche product lines. “Where FSC certification is additionally helpful is that customers have stayed with us when the market is not so robust,” noted Brash. “We’re comfortable with our FSC decision. We have to respond to the marketplace.”

BClogging

THE FACES OF HAIDA GWAII:

Top photo: Colin Richardson, a former logger and now manager of the Solutions Table, a co-operative between the B.C. government and the Haida Nation, set up to review applications for land use on Haida Gwaii. Above Photo: Bob Brash, chief operating officer with Haida-owned Taan Forest. Photo below: Jerome Benoit, planningcontract supervisor with Taan Forest. Bottom Photo: April Churchill, Haida Enterprise Corporation (HaiCo) board member, former vice president, the Haida Nation.

the no-go zones along with the impacts of landscape and terrain assessments and requirements stipulated under the Forest Stewardship Council’s (FSC) standards for qualification as a sustainably managed forest. “That’s an indication of the shopping list for the forest areas we can’t harvest,” summarizes Benoit. The planning work involving the necessary field assessments for the constraints comes with a cost attached. Benoit reckons the silviculture and engineering costs that have nothing to do with logging per se amounts to plus or minus 10 per cent of costs. “We’re keeping our heads above water,” reports Bob Brash, chief operating officer with Taan Forest. As a major employer on the islands, there is much local interest in what Taan does—or what observers feel it should do. People talk a lot about value added manufacture on-island and that is something they’re interested in working on, adds Brash. “Value added manufacture requires capital and we’re a young company,” he explains of the business realities. Taan Forest is entering its second five-year operating period as a company. Back in the early- and mid-1980s, Haida Gwaii was being creamed of its timber by off-island owned companies at an unsustainable rate of two to three million cubic metres a year. The Haida found that situation intolerable and set in motion a process to wrest back control of their lands and seas. It’s worked. The islands’ TSA AAC was estimated at 512,000 cubic

metres in 2014. The actual harvest, however, was about 345,000 cubic metres. Taan Forest has the largest AAC at 460,000 cubic metres but is actually harvesting little more than 300,000 cubic metres, says Brash. Harvesting methods by volume are about five per cent helicopter logging; 25-30 per cent grapple yarding and most of the rest hoe chucking. Skilled fallers and those wishing to become skilled are in demand on Haida Gwaii. Deer are an expensive impediment to cedar regeneration on the islands. The animals were introduced to Haida Gwaii at the turn of the last century and because they have no natural predators, their numbers have mushroomed. Cedar seedlings are the deers’ delicacy. Protection, typically by expensive staked plastic tubing, is necessary for about five years to protect the cedars’ vulnerable leaders from browsing. Haida Gwaii’s isolation from traditional wood product markets has been a major factor hindering development of a viable on-island log processing sector, especially in the available second growth timber stands. There have been many more attempts than successes through the years. Taan Forest is working on several fronts to find ways to expand its options and develop more high end markets. The FSC certification process is one example of the strategy. Another is the establishment of a re-manufacturing facility. The model being considered would probably see primary

to page 36

Haida Gwaii voices on logging

pril Churchill a former vice president with the Council of Haida Nation: “Respect all things. Always start with the principle of value. “Taan has a business plan to increase added value; to cut less and be careful about export. The Haida people fight for that protection and industry now has a certainty factor. “The Haida Nation and the Haida people have a rich culture because of the land. We’re connected to it. We have to protect our land or we won’t be here.” Colin Richardson a former logger and now manager of the Solutions Table. 34

The Table is a cooperative between the B.C. government and the Haida Nation set up to review applications for land use on Haida Gwaii. “We had to slow down the clearcutting of the lands and bring back Haida authority to decision making, a benefit to all citizens of this earth, not just Haida or B.C. “If we can protect 85 per cent of the yew tree ( for medicinal values) I feel all right about that. “The Haida want to ensure the natural rhythms of Mother Earth continue.”

Logging & Sawmilling Journal - December/January 2016

WE KNOW WHAT YOUR EQUIPMENT MEANS TO YOU

BClogging from page 34 breakdown on Haida Gwaii with final manufacturing in southern B.C. where Taan has established business relationships with wood product manufacturers for custom cutting and has access to marketing expertise. A development like this would give them the ability to ship a quality product in a timely manner, says Brash. On island, Brash explains, Taan Forest is trying to come to an understanding with an existing operation. The Old Massett Forestry Corporation, owned by the Old Massett Indian Band along with Abfam Enterprises, have recently opened a wood briquette manufacturing plant in Port Clements on Graham Island. Abfam, a longestablished small sawmilling operation has been one of the most consistent and persistent operators on the islands. “We would like to try and move that forward. It creates jobs locally and that’s what we want to do,” says Brash. Taan Forest is involved in continuing negotiations with manufacturers of high grade soundboard and keyboard manufacturers, like Yamaha and Steinberg. The top quality, FSC certified, precisely manufactured parts are critical to the instruments’ integrity in the market place. “We’re getting there,” believes Brash. Another positive initiative underway on island are negotiations between BC Hydro and the Council of Haida Nation (CHN), Taan’s owner, seeking energy solutions. Haida Gwaii depends on expensive diesel

power generation. It has been another stumbling block to developing profitable wood processing facilities on-island. Hydro and CHN are examining the feasibility of establishing a bioenergy plant.

Furnish would come in the form of wood chips or sawdust created from the ample supply of pulp logs on Haida Gwaii.

dump log contractors. Taan counters that a phase contract model better suits the islands’ smaller logging contractors. The issue surfaced after long time islands stump-to-dump contractor Edwards and Associates declared bankruptcy in 2015. During early discussions between the USW and Taan, the union agreed TFL 60 could be sub-divided into two stump to dump contracts. Taan’s position is that suggestion still favours larger, off-island contractors. More recently the USW ran a full-page

advertisement in the Haida Gwaii Observer, the local newspaper, outlining the background to the TFL 60 situation and the union’s position. Taan Forest responded to that salvo with an open letter of its own. Both letters alluded to a continuing willingness to negotiate an out-of-court settlement. The next developments are likely to happen behind closed doors rather than in the media. The Labour Relations Board could be the next stop with the issue.

Stump to dump or phase contracting in Haida Gwaii?

ierce gales are natural occurrences on Haida Gwaii. A storm brewing now, however, could have precedentsetting implications for forest companies and their logging contractors throughout the British Columbian coastal region. The dispute pits the United Steelworkers (USW) against Taan Forest and it concerns how jobs are contracted out. Specifically at issue is how log harvesting is structured on Taan’s TFL 60 on Haida Gwaii. The Steelworkers says pre-existing agreements stipulate the use of stump to 36

Logging & Sawmilling Journal - December/January 2016

FOR ALL YOUR SAWMILL EQUIPMENT AND SYSTEM SOLUTIONS

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millprofile

INSIDE/OUT SAWMILLING B.C.’s McLeod Lake Indian Band is now involved in sawmilling, through Duz Cho Forest Products, and it has taken an interesting approach with an “inside/out” design for its cant mill, which is creating higher valued products from raw material that other potential users don’t want—or can’t economically use. By Jim Stirling

uz Cho Forest Products is inside out. But that’s only one part of a young operation unafraid to blaze its own trail. And successfully so, with its first full year of business—and safely conducted business—under its corporate belt. Duz Cho Forest Products (DCFP) operates a cant mill in Mackenzie in north central British Columbia. And it is, indeed, inside out: with the processing equipment

outside along one side of the mill building, covered overhead but open to the elements on the other. Inside, under cover, the finished cants are stored awaiting shipment to varied markets from Saudi Arabia and China, to North America. Mill staff on each of the two daily shifts learn the production positions in the mill first-hand, through a process of rotation. And as they do so, their safety and that of their fellow workers is emphasized. And emphasized again.

DCFP clearly has its own philosophy, but the venture also represents a significant departure from the parent company’s past corporate experiences. It is the first time Duz Cho has moved into the sawmilling business, creating higher valued products from raw material that other potential users don’t want or can’t economically use. Duz Cho Logging, meaning “big timber” in the Tse’khene language, has been a well established full phase log harvesting and road construction

At the Duz Cho Forest Products mill, the processing equipment is outside, along one side of the mill building. The mill has selective heating at outside work stations.

Logging & Sawmilling Journal - December/January 2016

millprofile

One of the crews (above) celebrates the one year anniversary of the Duz Cho Forest Products mill in Mackenzie, B.C. The relatively new sawmill has a workforce that is 60 per cent First Nations and 40 per cent women. contractor since 1988. The company is 100 per cent owned by the McLeod Lake Indian Band and was named business of the year in 2014 by the Mackenzie Chamber of Commerce.

Several years ago, Duz Cho began its diversification as the oil patch in northeastern B.C. and Alberta expanded with the creation of a civil, oilfield, energy and general construction division offering a

range of services to those industries. The new Mackenzie cant mill is the

Logging & Sawmilling Journal - December/January 2016

to page 40

millprofile from page 39

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newest addition to the Duz Cho family group of companies. When Derek Orr, president of Duz Cho, addressed the Council of Forest Industries (COFI) convention in Prince George this spring, he spoke of “the essence of proudness” the new mill was contributing to band members and their families. He said the cant mill was an additional example of the McLeod Lake Indian Band working together as an equitable partner, in this case toward using more of the forest resource. “What we’re doing here is utilizing small wood, much of which was being burned before,” explains Bill Barwise, mill operations manager. Much of it is beetle killed lodgepole pine down to about 3.5 inch tops. “But we can extract a higher value product from this fibre and provide the pulp mill a better quality chip,” he adds. The mill achieves that with mainly used sawmill equipment. The mill can accommodate up to 11 inch diameter logs: it has a 12 inch Nicholson A5 debarker. After passage across a tray sorter and moisture reader, the wood traverses a Newnes grade mark reader. The mill’s main breakdown machine is a HewSaw R200 from 1996 which despite its history continues to perform well. “Essentially, we run like a planer on a cut-to-order basis,” says Barwise. Squared cants 80 by 80 millimetres are normal for Asian markets, down to 72 by 72 millimetres. But the mill can cut other sizes including six inch cants. Product bound for Asian customers is stuffed into containers at Duz Cho’s loading dock in Mackenzie, sealed and not re-opened until it reaches the end customer. Interex Forest Products Ltd., handles DCFP’s export business while BPWood in Penticton, B.C. looks after the domestic sales. The cant mill equipment is partially exposed to the elements primarily as a sawdust mitigation measure. The emphasis is on protecting people, leaving equipment exposed but with the provision of selective heating at work stations. The alfresco design ties in with the staff job rotation system employed through most positions in the mill. The mill requires five people per shift and runs two 12 -hour shifts with a total of around 20 people including the maintenance staff. “Sixty per cent of our workforce are First Nations and 40 per cent of our workforce are women,” continues Barwise. The job rotation and the emphasis on

Logging & Sawmilling Journal - December/January 2016

millprofile safety is interwoven into the mill’s inclusive culture. And that’s a word that’s used a lot around Duz Cho Forest Products. It’s not just part of safety meetings and field level hazard assessments; the culture involves everyone having a voice in a broad-based communication between maintenance, operational and supervisory people. And whatever DCFP is doing, it’s working. The first year’s operation resulted in no time loss injuries. Factored into that achievement is that several of the mill’s workers had little or no experience working in an industrial setting. They’ve had to learn from the ground up. Tyler Thomas is a good example. “I never thought I’d work in a sawmill,” he says with a broad smile. “But it’s good. It’s safe here and everyone helps. If you don’t know something all you have to do is ask.” DCFP was recently in the process of commissioning a log merchandiser that will accommodate both tree length and cut to length logs. “Hopefully it will help give us the right log for our operation and capture as much fibre as we can. Utilizing more aspen is part of that process,” says Barwise, as DCFP moves into its second full year of operation.

The Duz Cho sawmill produces higher valued products from raw material that other potential users don’t want or can’t economically use. It utilizes small wood, much of it beetle killed lodgepole pine down to about 3.5 inch tops, though it can accommodate up to 11 inch diameter logs.

Obtaining the right logs also requires continuing a co-operative relationship with other forest companies working in the Mackenzie area. This includes Paper Excellence, Canfor, Conifex, West Fraser and Dunkley Lumber. DCFP is also working with the B.C. Forest Service. “There’s a lot of dead pine out there that the licencee mills can’t use and the forest service wants

to clean more of that up,” he notes. DCFP’s inside/out mill is clearly a success story for its home team. “It works for us,” declares project manager Mike Richard. “I’m not saying it’s right for everyone but if we were to build another mill from scratch, we’d do it the same way.”

Logging & Sawmilling Journal - December/January 2016

December/January 2016

The Edge Classification standard coming soon for thermo-modified wood

anufacturers of thermo-modified wood (torrefied wood) have recently formed a group within the Quebec Forest Industry Council (QFIC) in order to develop and implement a classification standard for their products. This work is being carried out in co-operation with FPInnovations, Cecobois, QFIC and Formabois. Thermo-modified wood is different from wood in its natural state. In fact, wood that is heated at a high temperature alters the main constituents of wood, such as hemicellulose and lignin. The crystalline structure of cellulose may also be slightly modified, in both its physical and mechanical properties. The main resulting advantages after treatment are an improvement in dimen-

sional stability, an increase in resistance to fungal degradation and the creation of new, attractive colours of the material. Moreover, based on the findings of studies on this topic, the stiffness of the wood is not significantly reduced in the process; however, it is a known fact that compared to non-modified wood, modulus of rupture and resistance to impact are diminished. And that is why the use of thermo-modified wood for the structures of buildings is not recommended. And lastly, such wood also has less resistance to abrasion following treatment. Modification of the properties of wood depends on the temperature during treatment. The treatment schedule must therefore be carefully adjusted according to the final planned use of the product. In

the past, a number of experiments proved disappointing, as the performance of the product failed to meet expectations. Classification of thermo-modified wood into various categories is therefore well justified. In fact, a classification grid based on the properties of the material will help consumers make a wise choice for their planned use of this wood (e.g., siding, patio, fence, panelling, furniture and other indoor and outdoor uses).

For more information in this regard, please contact Carl Tremblay, researcher at FPInnovations, at carl.tremblay@ fpinnovations.ca.

Logging & Sawmilling Journal - December/January 2016

The Edge

Bioindustrial Conference shines timely light on Alberta Ron Reis, senior vice-president for pulp at Millar Western Forest Products Ltd., also participated in ust one day after the Alberta a featured panel presentation, on government announced its creating industry partnerships. He Climate Leadership Plan, Alprovided an update on the comberta Innovates Bio Solutions (AI pany’s bioenergy effluent project, Bio) and the Biorefining Converwhich will use anaerobic digestion sions Network (BCN) co-hosted technology to produce biogas from a conference in Edmonton titled, the waste stream at the company’s “Bioindustrial Innovations: Unbleached chemi-thermo-mechanical locking Value and Tackling Climate (BCTMP) pulp mill in Whitecourt, Change.” Alberta. The biogas will be used as “The timing, although not fuel to generate 5.2 megawatts of planned, couldn’t have been betpower for the pulp mill. ter,” says Steve Price, CEO of AI Reis said Millar Western has deBio. Price says the very successful The Millar Western anaerobic digester and biogas veloped an important relationship conference, with more than 260 power production facility at the company’s pulp mill participants at its inaugural event, in Whitecourt, Alberta will come on stream this spring. with Alberta Innovates, working in particular with AI Bio’s sister will be an annual international organization, Alberta Innovates event co-hosted by AI Bio, aimed at highlighting Alberta and its bioindustrial organization over the past six years. Based Technology Futures (AITF). As well as running studies in the AITF pilot plant at the University of Alberta, BCN receives opportunities. on the anaerobic processes employed in funding from AI Bio to support research The three-day gathering attracted its bioenergy project, Millar Western has participants from across North America. In communities and create partnerships with partnered with AITF on previous initiaindustry in the areas of biorefining and addition, there were participants from Eutives, such as investigating the use of pulp biomass conversion technologies. rope, South America, Asia and Australia. mill sludge as organic fertilizer for area “The conference clearly demonstrated It featured presentations from Alberta farmers. AITF was a sponsor and active a large, vibrant and growing community companies engaged in commercial bioinparticipant at the conference. in the bio space in Alberta—one that dustrial enterprises, updates on projects The conference also had an outward the BCN and AI Bio have clearly helped supported by AI Bio such as ongoing defocus with a feature panel titled “The establish,” says BCN executive director, velopment of the Biomass Resource InforInternational Marketplace for Bio-Based mation Management System (BRIMS), and David Bressler. “Many of the international participants, including the European Com- Products.” James Lee, director of comknowledge exchange among researchers mercialization at Bioindustrial Innovation mission’s Directorate-General for Energy, sharing their findings on a variety of Canada (BIC) was among the presenters. are the result of long-term interaction and biomass characterization and conversion The focus at BIC is to help Canada beengagement by the hosts.” projects. As one of four members of the AI Bio’s role is to partner with the prov- come a globally recognized leader in takprovince’s Alberta Innovates family of ing sustainable feedstock, such as agriculfunding agencies operating at arm’s length ince’s forestry and agriculture industries tural and forestry byproducts and wastes, to encourage their greater participation from government, AI Bio provides finanand turning these renewable resources in the bioindustrial sector, add value to cial support for many of these endeavors. into energy and value-added chemicals. agriculture and forestry biomass, and help “Alberta is blessed with wonderful Lee said he has noticed a positive companies advance to the commercial academic institutions and an entrepremomentum in knowledge and acceptance stage. Alberta’s forest industry was well neurial spirit that can move us forward,” of bioproducts globally, particularly when represented at the conference, among says Price. “We are now in a position consumers are given comparable “green” both participants and presenters. to capitalize on that as it relates to the product choices, and more industrial Eddie Peace, bioproducts coordinabioeconomy.” sector leaders are choosing more environtor at West Fraser, provided information Knowledge extension is a key commentally friendly, sustainable on the company’s new lignin extraction ponent of Alberta Bio Future, AI Bio’s alternatives. plant in Hinton, Alberta. Peace spoke on bioindustrial program. Price says the how the company is working hard to find government asked AI Bio to host an avenues to add value to lignin. AI Bio international conference that would help helped West Fraser make the leap to full advance knowledge and growth of the For more information about the commercialization through support from bioeconomy. Working with BCN was a conference, contact Julia Necheff, Alits Advanced Materials and Chemicals natural partnership, given the excellent berta Innovates Bio Solutions, at julia. Program. relationship that AI Bio has built with the necheff@albertainnovates.ca. BY TONY KRYZANOWSKI

Logging & Sawmilling Journal - December/January 2016

The Edge

Fruits of CWFC collaboration with University of Guelph showcased at field day event BY TONY KRYZANOWSKI

ver the past decade, the Canadian Wood Fibre Centre (CWFC) has established a highly successful collaboration with the University of Guelph as part of its Short Rotation Woody Crop (SRWC) National Network of Sites, showcasing short rotation woody biomass options in Canada. The fruits of this successful partnership between CWFC and the university were showcased recently during the SRWC Systems Development Field Days held at the 22-hectare demonstration site located at the Ontario university. The site consists of a variety of afforestation and agroforestry biomass research trials, which presented a unique opportunity during the workshop to discuss the benefits and shortcomings of each in one location. The over 60 participants—consisting of landowners, commercial and industrial end-users, and government representatives in attendance—enjoyed presentations from SRWC specialists from CWFC and researchers from the Canadian Forest Service, University of Guelph and BIOFUELNET Canada. Among the topics discussed were SRWC and agro-forestry biomass options, plantation establishment

and management methods, growth and yield expectations, carbon sequestration and nutrient implications, and potential markets for woody and agroforestry biomass. “There are a number of viable end use options for short rotation woody crops,” says Tim Keddy, CWFC Wood Fibre Development Specialist, “especially now with the renewed emphasis on carbon sequestration and climate change adaptation. It bodes well for the research that we have done over the past 15 years.” A highlight of the event was a demonstration of two proven purpose-built, and Canadian-made woody biomass crop harvesting systems. The active demonstrations showcased the Anderson Bio-baler and Gyro-Trac BBS woody biomass harvesting and baling systems. Attendees were able to evaluate each machine operating in three-year old willow and hybrid poplar plantations. The University of Guelph site demonstrates best practices for establishing short rotation woody crops and management options suited primarily for Ontario and eastern Canada as a whole. Keddy adds that the growing conditions, especially the soil, climate, and the fact that the water table is close to the surface, are very

Aerial view of the University of Guelph Short Rotation Wood Crop site during a recent Field Day event shows the variety of agroforestry options being demonstrated by CWFC at the site. 44

The Guelph Field Day event attracted biomass end users, government representatives, and researchers, celebrating the decade-long relationship that CWFC has developed with the University of Guelph. different than the CWFC research sites in western Canada. “The investment made by CWFC since 2005 in setting up potential management regimes related to the production of woody biomass at the University of Guelph research site has received recognition and appreciation from landowners, non-governmental organizations, and federal and provincial ministries,” said Dr. Naresh Thevathasan, Research Manager and Adjunct Professor at the University of Guelph, School of Environmental Sciences. He added that six local and international graduate students, as well as 500 undergraduate students, have benefited from this collaboration.

For more information about the University Of Guelph demonstration site and CWFC’s short rotation woody crop program, contact CWFC Wood Fibre Development Specialist Tim Keddy at tkeddy@NRCan-RNCan.gc.ca or Derek Sidders at Derek. Sidders@NRCanRNCan.gc.ca. Presentations made at the workshop can be viewed at http://www.biofuelnet.ca/news-and-events/short-rotationcrop-systems-development-field-days/.

Logging & Sawmilling Journal - December/January 2016

The Edge

Improving safety related to road construction landslides

oad construction-initiated landslides have been a persistent issue on the coast of British Columbia and, to a lesser degree, within other areas of the province. According to recently collected data, there have been 26 such incidents on the coast over the last three years. Nine of these incidents involved excavators sliding down the slope from the road prism during road construction activities. The incidents have been very serious in nature with considerable human, environmental and operational costs. Fortunately, we have seen no fatalities to date but both physical injuries and physiological impacts have been common. Some groups have developed partial solutions to the issue, but there has not been a united front across the industry to address the problem. On October 7, 2014, an informal group of industry, government and consulting practitioners met to explore the issue. The meeting was sponsored by BCTS (BC Timber Sales). One of the actions stemming from the meeting was the formation of a working group that is supported by the Coastal Harvesting Advisory Group (CHAG). A formal proposal based on this action was provided to CHAG and support was confirmed in December 2014.

Group Purpose:

To develop initiatives that support the elimination of slide type incidents during road construction activities on the coast.

Scope:

The working group will focus on B.C. coastal road construction, but will pass on information to all interested B.C. Interior parties. The group has developed a shortto medium- term strategy to address quick wins that will have an immediate impact, as well as a longer term strategy to sustain improvement and inform other initiatives.

Actions:

The working group is focusing on: • Data collection and analysis; • Raising awareness within the industry; • Training methods and resources for road crews and professionals;

• New ways to identify sensitive zones and build road; and • Options for monitoring and enforcement of road construction standards. The outcomes will be shared and used across the industry to create a more uniform application of improved road construction methods and processes.

Group Members:

BC Timber Sales: Mike McCulley, RFT; Western Forest Products: Jack Reynolds, RPF; Interfor: Robert Shelley, RPF; Ministry of Forests, Lands and Natural Resource

Operations: Tom Jackson, RFT, and Gino Fournier, RPF, PEng; FPInnovations: Clayton Gillies, RPF, RPBio; BC Forest Safety Council: Dustin Meierhofer, RPF; Aztec Geoscience: Del Ferguson, PGeo; and Ponting Logging: Mark Ponting.

For any additional information, please contact Clayton Gillies, Senior Scientist of FPInnovations’ Resource Roads program at clayton.gillies@fpinnovations.ca.

Logging & Sawmilling Journal - December/January 2016

The Edge

Direct seeding in Western Canada—a reforestation alternative? BY PAMELA MATUTE, FIT, Researcher, Silvicultural Operations and JANET MITCHELL, RPF, Associate Research Leader, Silvicultural Operations

Background

Currently, most harvested land in Western Canada is reforested via natural regeneration or tree planting. Direct seeding, despite widespread acceptance in Scandinavian forestry, has not yet been widely adopted in Canada. Research efforts in the 1960-80s resulted in variable success, and as a consequence very little operational direct seeding has taken place since. However, the current reforestation challenges posed by wildfire, mountain pine beetle and salvage logging warrant the need for alternative regeneration strategies. Lack of seed source often makes these large scale disturbances unsuitable for natural regeneration and costly to plant. Furthermore, recent advances in seed application technology and knowledge have made it possible to achieve promising results, making direct seeding an alternative worth including in the silvicultural toolkit.

Why direct seeding?

Seeding can be done by air or groundbased equipment. FPInnovations’ research has focused on direct seeding (seeding simultaneously with mechanical site preparation) as it is particularly well suited to the large scale disturbances resulting from mountain pine beetle, salvage logging and wildfire. Direct seeding is a cost effective treatment that can cover large areas quickly, at productivities ranging from 0.6-1 ha/ hr and for half the cost of tree-planting. Higher stocking densities can be easily achieved with little added cost, making it ideal for stands susceptible to forest pests. The direct seeding season is also longer than for tree planting, and can thus help streamline silvicultural operations planning. Direct seeding does have disadvantages 46

to consider. It requires larger amounts of seed and has longer establishment time than tree planting. Germination success is dependent on uncontrollable external factors such as weather and seed predator populations. Variations in microsites can result in a clumpy and irregular distribution similar to those found in naturally regenerated stands, requiring the need for fill-planting or spacing.

Operational considerations

Successful direct seeding is dependent on knowing where and when direct seeding is a viable option, and what the best prescription is for the site. FPInnovations has installed over 13 trials across Canada since 2011 in order to assess how different ecological zones, tree species, seed treatments, treatment times, and site preparation and seeder equipment affect the end result. Preliminary operational findings have indicated that while there are a myriad of factors that influence the success of a direct seeding operation, the key factors that can be controlled are: site selection, site preparation, and sowing season.

Site selection

Site selection is perhaps the most important decision in the direct seeding planning process. Generally, a site well suited for natural regeneration would also be suitable for direct seeding. The site should be mesic, with low brush competition and low slash levels. Fresh, loamy soils are preferred, as coarse or fine soils can lack the soil moisture or aeration necessary for seed germination.

Site preparation

Mineral soil exposure is required for germination in most of our conifer species. Currently available seeding equipment can be mounted on a variety of trenchers and scarifiers for a combination of mechanical site preparation and direct seeding. Direct seeding has unique

site preparation requirements: trenches should be shallow and broad, best achieved with no pressure on the discs. The seedbed should be ideally comprised of the shallower soil horizons or a mix of mineral soil and humus.

Sowing season

Direct seeding can be performed as early in the spring and as late in the fall as operationally possible. Early spring seeding with stratified seed takes advantage of spring rainfall and rising temperatures. Also, the predation risk is low because seeds will germinate soon after seeding. However, direct seeding of stratified seed has operational complications. First, care must be taken to seed early enough for the seed to become established before the hot and dry months of the summer. Second, the increased moisture content of stratified seed can cause seed flow problems in the seeder. Lastly, stratified seed is fragile and susceptible to heat, mold, and premature germination, making spring direct seeding a time-sensitive operation. These problems can be avoided by seeding unstratified seed in the late summer and fall, but having seeds overwinter increases the risk of predation by rodents.

Final Notes

While direct seeding will not replace tree planting or natural regeneration in the future, it can be a very valuable tool for the silvicultural regeneration toolbox. The Scandinavian experience has shown that a successful direct seeding program is possible with careful site selection and seed application. FPInnovations’ research trials will add to the knowledge and experience required for achieving successful results in a western Canadian context.

For more information, please contact Janet Mitchell at janet.mitchell@fpinnovations.ca.

Logging & Sawmilling Journal - December/January 2016

industryprofile

Diversifying the industry’s workforce— with more women

elinda Morben knows all about saying “yes” to opportunity in the forest industry—and she is encouraging other women to look at employment opportunities in Canada’s forest industry. This past January, Morben made a presentation at the Truck Loggers Association convention in Victoria, where she spoke on the topic of the industry employing more women, as a way of expanding the workforce. Based on her own positive experiences, she is encouraging more women to look at working in the forest industry. “I think the industry has been accepting of women,” she says. “People have been respectful and I’ve had really supportive people that have helped me.” The perception about the forest industry is that it’s a logger’s world—and that logger is a big, burly guy. But to some degree, that is a stereotype, and it’s changing. When it comes down to it, if you can do the job, you can have a go at it, says Morben. “You always have to prove yourself in the forest industry—that’s just the way it is,” says Morben. “People don’t care if you’re a man or woman—it’s all about whether you can do the job. “If you want to work with a solid group of people who are honest and fair and hardworking, I’d say you should get in this industry,” she added. Morben is currently manager of operational logistics at Island Timberlands

Melinda Morben, manager of operational logistics at Island Timberlands.

Logging & Sawmilling Journal - December/January 2016

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© 2015 Caterpillar. All Rights Reserved. CAT, CATERPILLAR, BUILT FOR IT, their respective logos, “Caterpillar Yellow,” the “Power Edge” trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission. www.cat.com www.caterpillar.com

industryprofile from page 48 on Vancouver Island, but she started out in the industry processing logs in the B.C. Interior. “I started running logging equipment pretty much right out of high school,” says Morben, who is originally from the B.C. Interior. When Morben completed high school, a family member who owned a shop suggested she come down and help out. A logger came in to the shop, needing some equipment repairs, and impressed by Morben’s initiative and work ethic, the logger, Stewart Perron, offered her a job logging. She processed timber for Perron’s operation, with a New Holland carrier with a Log Max head. Morben later worked for another contractor, Chad Welychko, the owner of Jamestown Contracting Ltd. in Fort St. James, who did processor phase contracting. Welychko was just introducing Waratah processors into his equipment line-up, so in addition to running processors herself, Morben also trained new employees on the Waratah equipment. And she thrived on the work. “Operating a processor can be dynamic work—you’re challenging yourself to do the sorts properly, and do more logs and volume every day,” she says. Welychko had two processors, and everyone pitched in on maintenance, including Morben. “Someone told me that you were not a true equipment operator until you could mechanic and wrench on your own machine, and not need help unless it was a major repair,” she says. Morben was out there changing oil and hoses. “I was right in there.” Her favourite piece of equipment: a Madill 1800. “I just loved that machine—it had a Waratah 622 head on it.” Another favourite was a Volvo 294 with a Waratah 624 head. In her last year of logging, her work coincided with studies at the College of New Caledonia in Prince George. “All along, I learned never to say no to opportunity,” she says. “I liked logging, but I also wanted to make sure I took the opportunity to get an education.” 50

“You always have to prove yourself in the forest industry— that’s just the way it is,” says Morben. “People don’t care if you’re a man or woman—it’s all about whether you can do the job." Morben was talking to the career counselors at the College of New Caledonia about further forestry-related education opportunities while she was on her way to becoming a Registered Forest Technologist (RFT). There were pending changes allowing RFTs to become RPFs, and Morben again said yes. “I wanted to do the degree,” she says. She eventually transferred to UBC, and graduated in forestry, and is now an RPF. After UBC, Morben did some contract work in the industry, and looking for the

right fit, was thinking about going for an MBA. “I thought it would be a good combination, being an RPF with an MBA.” But she also applied for a quality control supervisor position at Island Timberlands— and got the job. Morben has now been at Island Timberlands for five years. While she had been considering getting that MBA at one point, she is probably now getting the equivalent of an MBA in timberlands management at Island Timberlands. “I’m really excited to be in timber production,” she says. “I’ve learned a tremendous amount.” At Island Timberlands, Morben has mostly worked in quality control, and managed the company’s Northwest Bay dryland sort. These days, she is manager of operational logistics, and works with a cross-functional team, that takes in several areas of the Island Timberlands business. “With my experience in quality control, I’m able to bring knowledge about sorts and manufacturing specifications and a lot of our timber types and distribution hubs all over the company’s land on Vancouver Island.” The team works to manage the customer process for the company, specifically helping to schedule the harvest, fully utilizing logging equipment, the capacity the company has, and what they can harvest each year in each area, she explains. “And we are looking at how we can be more efficient,” she added. “We’re looking at our dryland sorts closer and making sure we are supplying them with the capacity to manage what they are handling as efficiently as possible.” To backtrack a bit, Island Timberlands was formed in 2005. Industry icon MacMillan Bloedel had been purchased by Weyerhaeuser Company in 1999, and in 2005, Weyerhaeuser sold all of their B.C. coastal assets. Island Timberlands was formed as a result of the purchase of the B.C. coastal private timberlands. It owns 258,000 hectares of timber land, most of it on Vancouver Island, and is the secondlargest private landowner in the province. Island Timberlands supplies both domestic and international customers with

Logging & Sawmilling Journal - December/January 2016

timber, which drives their harvesting and sort operations, explains Morben. “Because our business changes so quickly with our customer demand and our customer mix, we really have to be on our toes making changes. We do really well with our logging to be able to change quickly with the equipment and the company/contractor mix that we have.” Of the approximately two million cubic metres that is harvested each year, about 1.5 million cubic metres is done by contractors, and 500,000 by company crews. The contractors closely co-ordinate what they are doing in terms of equipment purchases with what is coming up with any timber type changes for Island Timberlands. The new initiative that Morben is part of helps the contract managers for the seven Island Timberlands geographical business units schedule and flow their wood efficiently. “We are doing that on an ongoing basis, balancing our wood and what our boom out-turns are going to look like. “It gives us a broader equipment perspective so we can use our contractors and home crew, and equipment, more efficiently,” says Morben. “We want to be making good business decisions with the equipment we have, and where we distribute it. Overall, the goal is more efficient timberlands management.” That also involves looking at the future, and what timber types and sizes Island Timberlands is going to have down the road. “For our home crew, we’re looking to buy the right equipment size for that timber type,” explains Morben. This has already resulted in some equipment changes. The operation as a whole has now switched over to Southstar processing heads. “We have three new Southstars—and we’re liking them,” says Morben. “We did a lot of analysis—it was a good change for us.” With her background on the logging equipment side, Morben was part of the team that made the decision to switch heads. For Morben, it has also meant re-connecting with Marcel Payeur, whom she first met during her time processing in the B.C. Interior. She says Payeur and his group at Southstar are delivering top notch service. “Of course the equipment itself is important to us, but in terms of service, you call the Southstar people, and they are here.” Uptime and ease of service are important to Island Timberlands, as is the accuracy of the processing their heads must

“If you want to work with a solid group of people who are honest and fair and hardworking, I’d say you should get in this industry,” says Morben. do, day-in, day-out. “We have some pretty intensive manufacturing practices and specifications,” says Morben. “We can process anywhere from seven to 11 sorts out of a timber pile. We are really keyed into some unique timber markets.” There can be a large number of sorts at the dryland sort; they could easily have over 100 open log booms, which means 100 timber sort codes. “A sort can be running 150 open booms, and we can be scaling 55 to 70 different sorts daily. We want to be very, very accurate with

industryprofile what comes in from the woods and the sorting.” The Southstar heads have a well-established, user-friendly measuring system, says Morben, but the company provided more. “Southstar came in and designed a complete system for us that is very easy to use. They hear what we’re saying when we’re asking for something, and they’re giving us the service we need.” Morben says their production guys are excited about using the new Southstar equipment. In terms of the carriers, Morben says they have stayed with the Cat 325 machines. All of the work, Morben stresses, is done with safety in mind. In 2014, the operation went 100 per cent accident-free. From the safety side to the equipment purchases, Morben feels her past experience in the woods has been instrumental in furthering her career. And she is going to continue to focus on the opportunities—and encourages other women to look at the forest industry. “It’s a great industry to work in,” she says.

Logging & Sawmilling Journal - December/January 2016

TECHUPDATE

Class 8 Trucks Caterpillar

The Cat vocational truck line redefines heavy duty while delivering all the power, performance and productivity customers expect in a forestry application, says the company. Cat’s Class 8 trucks are available in set-forward axle and set-back axle configurations with 114”, 116”, 122”, and 124”

By Tony Kryzanowski

of quality, innovation and technology to produce industry leading, rugged and reliable vocational trucks, says Kenworth. The T880 offers outstanding performance, excellent driver comfort, a quiet cab, and ease of serviceability, according to the company. Available in day cab, and mid-roof 52” and 76” sleeper configurations, the T880 comes standard with the PACCAR MX-13 engine rated up to 500 hp and 1850 lb.-ft. of torque. The T880 can be ordered with a 116.5” BBC hood optimized for the PACCAR MX-13 engine, providing enhanced visibility, or with the standard 122.5” BBC hood. The Kenworth T880 vocational truck with the PACCAR MX-13 engine received the 2015 Truck of the Year award from the American Truck Dealers (ATD). www.kenworth.com

Peterbilt

Peterbilt Motors Company’s roots began in logging more than 76 years ago and it’s an industry the manufacturer continues to serve with custom manufactured trucks with the highest levels of quality, durability and performance. Peterbilt’s flagship vocational vehicle is the model 567, available in both truck and tractor configurations and with either a set-forward front axle (SFFA) or set-back front axle (SBFA). Both

bumper to back of cab options. The trucks can be built as a truck or day cab in 6X4, 8X6, 6X6, and 4X4 configurations. The CT660, CT680, and CT681 are powered by a Cat CT13 vocational truck engine with ratings specific to truck applications and horsepower/torque combinations to tackle the toughest jobs. The ergonomic features of the cab interior, such as the spacious wide cab with premium sound insulation and easy to reach gauges and switches, enhance driver and job site safety and productivity, says the company. www.drivecat.com

Kenworth

Kenworth has a long and distinguished 92-year history of building trucks for tough, demanding logging applications. Today, the Kenworth T880 continues that legacy. Since its introduction in 2013, the T880 has established a new standard of excellence and builds upon the company’s heritage

are also available with 115” or 121” BBC lengths. The model 567 is specifically designed to take on the harshest conditions and applications, while still providing customers with numerous lightweight options to maximize payloads. The aluminum cab structure provides the strength and ruggedness to meet severe service requirements. The hood is constructed of Metton, a lightweight but strong material that can withstand impacts that would crack or shatter fiberglass hoods, says the company. The Model 567 SFFA is standard with the PACCAR MX-13 engine with up to 500 horsepower and 1850 lb-ft of torque. It is also available with the new PACCAR MX-11 engine with up to 430 horsepower and 1550 ft-lb of torque. Both compressed natural gas and liquefied natural gas configurations are available. The Model 567 is available as a day cab or with Peterbilt’s complete lineup of detachable sleepers, including the new 58” sleeper. www.peterbilt.com

to page 54 52

Logging & Sawmilling Journal - December/January 2016

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techupdate from page 52

Mack

The Titan by Mack model has the power, durability and ground clearance to meet the tough demands of logging applications. Built specifically to handle heavy loads on difficult terrain, the Titan features a high-capacity cooling package and a frame designed with maximum ground clearance for rough, uneven ground. All Titan by Mack models come standard with Mack’s largest-ever engine, the 16-litre MP10, which delivers up to 605 horsepower and best-in-class torque ratings of up to 2060

a day cab and enables maximum payload and maneuverability. The VNX 430 has a 42” sleeper and provides the right mix of payload capacity and comfort, says the company. No compromises are necessary with the VNX 630, which features a spacious 61” mid-roof sleeper. www.volvotrucks.com

Freightliner

Tough on the outside, comfortable on the inside, the rugged and versatile Freightliner 122SD is engineered with durable components to haul heavy, oversized loads from the logging site to the sawmill. Outfitted with a durable, non-corrosive aluminum SD cab, and reinforced with e-coated steel, state-of-the art adhesives and Henrob rivets, the 122SD is ergonomically designed with the driver in mind. The chassis features a broad offering of vocational suspension choices and single or double channel frame rails with tensile strength of up to 120,000 psi and up to 5 million RBM. With a

lb-ft. Also standard is the Mack mDRIVE HD automated manual transmission for a fully integrated Mack powertrain. The mDRIVE HD features reinforced internal components and sophisticated software to handle the toughest applications. Mack’s GuardDog Connect telematics system is also standard and boosts uptime by proactively monitoring the truck for fault codes that could potentially shut it down. www.macktrucks.com

Volvo

Combining extreme capability and premium comfort, the Volvo VNX has the power demanded by heavy haul applications such as log hauling. The VNX is equipped with the Volvo D16 engine, with up to 600 horsepower and 2050 lb-ft of torque. Volvo’s I-Shift automated transmission is standard, with the I-Shift for Severe

GVWR of up to 92,000 pounds and a GCWR of up to 160,000 pounds, the 122SD is available with manual, automatic and automated manual transmission options that are said to be ideal for logging applications. Additional standard and optional components found on the 122SD include: threaded front suspension spring pins and bushing; lower radiator rock guard and up to 1700 square inch radiator; heavy-duty bolted cross members; oil pan skid plates; under-the-passenger seat battery mounting; and an impactresistant back window. The 122SD comes equipped with the Detroit DD15 engine. Detroit DD13, DD16 and Cummins ISX15 engines can also be specified. www.freightliner.com

Western Star Duty applications standard on VNX models with heavier weight ratings. A number of drive configurations are available, including a recently introduced 8x6 tridem rear axle group on VNX 630 models. All VNX models come standard with Volvo Remote Diagnostics, which helps customers avoid unexpected downtime by providing proactive monitoring, diagnostics and repair planning, all while the truck is in operation. The VNX is available in three cab configurations to meet the needs of any log hauling application. The VNX 300 comes with 54

The Western Star 4900 is ideal for the big loads and tough demands required for logging, says the company. The powerful and durable 4900 is hand-built, body-builder friendly, and available with thousands of customization options to give customers the right truck for their job. The 4900 can be specified with Detroit DD15 and DD16 or Cummins ISX engines, and Eaton Fuller manual, automated and Allison automatic transmission options, to provide optimal power and handling to negotiate logging roads while hauling a full load.

Logging & Sawmilling Journal - December/January 2016

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techupdate from page 54 Features such as galvannealed steel cabs with extra gussets and reinforcements are precision bonded to withstand harsh conditions. The cab’s high ground clearance is perfect to handle ruts, while its roomy interior with easy-to-read gauges, double door seals and extra storage help keep drivers comfortable during long days. Heavy duty truck components, such as bumper options, copper brass radiators with bolted steel tanks, planetary axles and the TufTrac suspension further add to the 4900’s durability. www.westernstartrucks.com

International

Navistar, Inc. has announced that it will launch a new line of premium vocational trucks for the severe service segment beginning in early-2016, leveraging shared technology and intellectual property from its venture with Caterpillar. In addition, the company announced that it will transition to Caterpillar the production and engineering of the Cat-branded severe service trucks the company has been supplying to Caterpillar since 2011. Navistar will continue to manufacture trucks for Caterpillar through December 31, 2016. While specific terms of the transition will not be disclosed, both companies will have the opportunity to leverage certain

joint intellectual property, collaborate with suppliers and utilize licensing agreements moving forward. “Navistar and Caterpillar have had a strong, collaborative working relationship through a number of projects and partnerships for many, many years,” says Bill Kozek, president, Navistar Truck and Parts. “This next phase provides Navistar with an exciting opportunity to introduce new technologies and product features into our new line of premium vocational trucks that we’ll launch in 2016.” Navistar International Corporation is a holding company whose subsidiaries and affiliates produce International brand trucks. www.internationaltrucks.com 56

Logging & Sawmilling Journal - December/January 2016

Extreme Power Plus

With its power and performance, the VNX can help your operation run better and more profitably every day. It is a heavy-haul tractor featuring a Volvo D16 engine delivering up to 600 hp and 2050 lb-ft of torque. Increased vocational ride height provides greater ground clearance and accommodates more articulation and improved front ramp angle. With a 16,000 lb front axle and 46,000 lb rear axle, and a 60,000 lb centre tow pin capacity, the VNX is engineered for long combination vehicles, heavy equipment hauling, aggregate, low-boy, logging, oil and gas – any application that demands maximum strength, reliability and efficiency. Learn more at volvotrucks.ca.

VNX Heavy Haul

Volvo Trucks. Driving Progress

SUPPLIERNEWSLINE Hyundai introduces new fuel efficient log loader

Hyundai has introduced its new fuel efficient HX3026 log loader, featuring a Tier 4 QSB 6.7, 180 horsepower Cummins engine. The loader comes equipped with a 300 size undercarriage, and 24 mm HD rails and pads. The TR40 Trend Power grapple comes with 8.5 tines, and the Extreme Duty boom and stick are purpose-built. It has a cab forward, 60” tip over cabin. Other features include a counterweight consisting of a 1050 litre fuel tank, three-point grab handles and steps, as well as ergonomic control handles. www.woodlandequip.com

Microtec installs first government certified log scanner

The Microtec Logeye is now officially the first scanner in North America approved to automatically measure log volume for trade. By drastically reducing the manpower and log handling involved, the Microtec Logeye scanner reduces scaling costs while providing more accurate log measurements for trade.

The scanner has been tested and certified by Measurement Canada. The first stage of testing was done in the lab in Ottawa at the end of September, and it was then installed on a B.C. sawmill’s bucking line. The second stage of testing was completed under actual operating conditions, leading to official approval in October 2015. Previously, the mill was required to manually scale 100 per cent of its logs off site at a dryland sort facility. Together with the Ministry of Forests of B.C., the mill, and Microtec, a pilot project was designed to use the measurements of the officially approved and sealed scanner for 58

payment. As a result, manual scaling has been reduced from 100 per cent to approximately 2.5 per cent. The species/grade ratio from the manually scaled sample is applied statistically to the whole boom. The remaining bundles bypass the sort facility, travel directly to the mill and are scanned in the debarking line. In addition to scanning the volume, the data is also used for bucking optimization. All measurements are compiled and sent to the province’s HBS (Harvest Billing System) for payment. www.springer-microtec.com

Comact opens new facility in Quebec

Comact, one of North America’s leading sawmill equipment manufacturers, recently hosted the grand opening of its facilities in Mirabel, Quebec, an event attended by more than 200 people. “We are extremely proud to welcome our clients and business partners to our all-new facilities,” said Stéphane Desjardins, Comact’s vice-president for optimization. “This is the perfect opportunity for them to meet our team and see the dynamic environment in which we work. This building was designed to reflect our cutting-edge technology as well as our highly-qualified personnel.” Brian Fehr, Chairman and Managing Director of the BID Group, Comact’s parent company, and Alistair Cook, President and Chief Executive Officer of the BID Group, spoke and underscored the importance of this investment, which reflects the company’s commitment to its industry and clientele. “As an industry leader, we wanted to offer our clients an experience at the height of the quality of our products and services,” said Fehr. Fehr and Cook also seized the opportunity to break the news about the acquisition of WaneShear Technologies, LLC and the integration of Ron McGehee and his talented team to the BID Group (see below item in SupplierNewsline). Comact clients and partners were invited to take a guided tour of the facilities in Mirabel. Technical seminars covering the company’s latest developments in products and services were offered in the afternoon. The new workplace provides a dedi-

By Tony Kryzanowski cated space for testing as well as training for the company’s clients, in addition to enabling better customer service and the optimization of working methods. The new offices will house over 110 people in state-of-the-art work spaces. The optimization services, the after-sales service team and calling center as well as the administrative staff will work from there. “With these new developments, our working environment will be better suited for the preparation of equipment and it will facilitate teamwork, inducing change in our methods of work and ultimately will be of great added-value for our customers,” said Desjardins. www.comact.com

Cropac introduces new Taylor lift trucks

Cropac has introduced the new Taylor Pneumatic Tire and Rough Terrain lift trucks. Taylor lift trucks are engineered to meet the needs of the lumber industry, and the Taylor Rough Terrain Material Handling Trucks are specifically designed

for one task: moving material in the harshest environments imaginable. Whether it’s snow, mud, rough and uneven terrain, the Taylor rough terrain lift trucks deliver unparalleled performance, says the company. Taylor Big Red designs, engineers and manufactures the ultimate heavy lift trucks, according to the company. With branch locations strategically located throughout Canada and a new state-of-the-art branch in Alberta, Cropac Equipment Inc. offers a full line of Taylor forklifts for sawmills, pulp mills and OSB plants. www.cropac.com

Logging & Sawmilling Journal - December/January 2016

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suppliernewsline from page 58

BID GROUP acquires WaneShear—and Ron McGehee

The BID Group of Companies has acquired WaneShear Technologies and has added Ron McGehee to the BID Group team. “Adding Ron McGehee and his experienced team expands our equipment and service product lines including the new ‘Profiling Machine’ for primary and secondary breakdown systems,” says Alistair Cook, Chief Executive Officer of the BID Group. “This new line of products and Ron’s expertise in breakdown equipment and sawmill technologies will further enhance the BID Group’s abilities to offer a complete solution to our highly valued customers.” Cook added that the BID GROUP wants to serve its customers throughout the industry with a full range of equipment, installation, and after sales service. “Ron and his team will be relocating to our expanded South Carolina complex,” says Cook. www.bidgroup.ca

Tigercat releases D-series 822 track carrier Tigercat recently released the D-series 822 track feller buncher to the North American market. The new D-series 822 features a number of improvements aimed at service access, operator ergonomics and hydraulic efficiency. The new 822D offers the Tigercat FPT

A new cab structure with narrower front posts and larger side windows enhances visibility with improved sightlines. The skylight has been replaced by a camera system providing the operator with a much wider field of view. With tight tuck boom geometry and near zero tail swing, the Tigercat 822D track feller buncher is a powerful, yet compact machine wellsuited to selective felling and clear fell applications. www.tigercat.com

Redhead Equipment new Sennebogen dealer in Saskatchewan

One of the largest heavy equipment dealers in Saskatchewan, Redhead Equipment, now offers sales, parts, service, and financing on Sennebogen material handling equipment. “With seven locations from Lloydminster to Swift Current and more than 100 technicians in the province, Redhead can provide fast, reliable service for Sennebogen customers,” said Constantino Lannes, President of Sennebogen LLC. “What sets us apart is our long history of parts and service support in Saskatchewan,” said Gary Redhead, President and CEO of Redhead Equipment. “We’re well respected in the industry,” he said. “We have a reputation for getting the job done.” Redhead views Sennebogen’s strong reputation for quality as a good fit for his business, and also likes the fact that Sennebogen has a culture of problem solving for its customers. www.sennebogen-na.com

sits in the centre point of all movements. It offers the operator total visibility and the ability to work comfortably and efficiently. By using Strenx 700 MC Plus highstrength steel in the crane arms—Strenx 700 in the chassis and Hardox 450 in the cutter head—the Scorpion has a lower overall weight which helps maneuverability in rough terrain. Lower weight allows more bearings to be added, which gives the Scorpion its unique stability. Fuel consumption has been reduced and boom movements are faster. www.ponsse.com

PrimeTech launches new flagship mulcher

PrimeTech, a brand of FAE Group, has introduced its new, purpose-built, PT-475 tracked carrier for superior performance, productivity and serviceability. This 475 horsepower unit offers a Cat C13 Acert, 12.5 L turbocharged and aftercooled engine, with six in-line cylinders. It is fuel efficient and can be offered both in the Tier 3/Stage IIIA version and in the Tier 4/Stage IVA version. Its powerful hydraulic system consists of Danfoss pumps and mo-

Ponsse wins Swedish Steel Prize 2015 for harvester

C87 Tier 4f engine running at 310 hp, a higher capacity cooling system and a new engine enclosure profile that improves right hand side visibility. At the push of a button, the powered engine enclosure fully opens with side platforms for easy access to critical components including hydraulic filters, the swing gearbox, cooling system components and both sides of the engine. The redesign also allows for a larger standard fuel tank, which increases capacity to 585 L and includes ground level fueling. 60

This year’s winner of the international Swedish Steel Prize is Finland’s Ponsse. The prize was awarded for the company’s new generation of forest harvester, the Scorpion. Using high-strength steel, Ponsse realized a revolutionary design on the Scorpion which improves both performance and comfort. “Ponsse has not only significantly improved operator ergonomics, but also enhanced functionality and safety, and increased productivity with this new design,” says Gregoire Parenty, chairman of the jury and executive vice-president and head of market development at steel manufacturer, SSAB. The Ponsse Scorpion features a symmetrical crane boom where the operator

tors for track and front attachment drives. The front attachments, made by FAE, provide high quality operation and reliability, and define the versatility of the unit. The PT-475 can be equipped with a variety of front attachments such as forestry mulchers, soil stabilizers/subsoilers and rock crushers. Changing the attachment and thus adapting the carrier for different applications is said to be easy and quick. The oscillating undercarriage Berco D5HD adapts perfectly to uneven surfaces. www.prime-tech.com

Logging & Sawmilling Journal - December/January 2016

to page 63

6-8 APRIL 2016 KELOWNA, BC, CANADA Delta Grand Okanagan Resort & Conference Centre

The 2016 COFI Convention continues the tradition of presenting top-notch industry analysts, business veterans and political leaders to our delegates. Combined with extensive networking opportunities and a growing trade show, the COFI Convention is the leading forest industry conference in Western Canada. AN OVERVIEW OF THE 2016 PROGRAM: •

Staying Competitive on the Global Stage: International Market Outlook

•

Competitiveness at Home I: Fibre Access

•

Competitiveness at Home II: First Nations and Business Partnerships

•

Remaining Competitive: Innovation, New Products, Future Opportunities

•

Municipal Leaders’ Panel

•

CEO’s Panel

LIVE EQUIPMENT DEMOS, IN-WOODS

& IN ACTION! For more information and to secure your exhibit space at this premier event, please contact: Mark CusaCk, National Show Manager mcusack@mpltd.ca Toll Free: 1.888.454.7469

Logging & Sawmilling Journal - December/January 2016

classified

suppliernewsline from page 60

New fire fighting facility slated for B.C.

Sawfiling Community Remembers Con Williams

The B.C. government is providing $5.88 million to construct a new firefighting facility in the province’s Interior, at the Williams Lake Airport, for the use of B.C. Wildfire Service staff and crews. The new one-storey 22,000 square foot main building and three upgraded outbuildings will be home to the Cariboo Fire Centre’s main office, associated support services, and ground crew and air crew facilities. Planned facilities include the regional wildfire co-ordination centre, airtanker and pilot facilities, meeting and training rooms, staff offices, workshops, firefighter changing rooms, laundry and shower areas, and storage areas. Lauren Brothers Construction has been selected to build the state-of the-art firefighting complex through a competitive process. Construction should be completed by fall 2016. About two-thirds of the project’s trade contractors are companies in the Williams Lake area.

Sawfilers across North America lost one of their own in December when Con Williams, past President of Williams & White Equipment, passed away. Con was a recognized leader and friend of the closely knit sawfiling community. He was a familiar figure in the industry, often riding to conventions and meetings—where he was a welcome speaker—on a large touring motorcycle. Con’s long career at Williams & White began in 1966 at the tender age of 12. By 1978, he had taken over management responsibilities. From the 1980’s right to through to the present, a long list of sawfiling and knife grinding innovations were developed by Con and the Williams & White team. Like his father before him, Con recently passed the reins of Williams & White on to the next generation. His two sons, Matt and Justin, are very ably overseeing the cutting edge automated sawfiling technologies that continue to be developed by the company. Con will be missed by all who knew him. His passing truly leaves a gap in the lives of his family, friends and sawmillers across North America.

Logging & Sawmilling Journal - December/January 2016

Check out Logging & Sawmilling Journal at www.forestnet.com

INDEX DECEMBER/JANUARY 2016

NAME:________________________________ TITLE/POSITION:__________________ COMPANY NAME:_______________________________________________________ ADDRESS:____________________________________________________________ PHONE: ______________________________

FAX:___________________________

EMAIL:______________________________________________________________ WEBSITE:____________________________________________________________

# 64

Logging & Sawmilling Journal - December/January 2016

ADVERTISER PAGE BPWood................................................ 40 Brandt Tractor........................................ 21 Brutus Truck Bodies.................................. 7 Caterpillar.............................................. 49 Cleanfix NA.............................................. 6 COFI Convention................................... 61 Demo International 2016....................... 62 DK Spec................................................. 47 Great West Equipment............................. 2 HewSaw................................................ 26 Inland Group......................................... 11 Interex Forest Products........................... 41 John Deere.............................................. 9 KMC Kootenay Tractor............................ 30 Log Max................................................. 31 MNP................................................. 22-23 Morbark................................................. 37 Northern Pneumatics.............................. 39 Oregon Logging Conference................... 51 Peerless.................................................. 56 Peterson................................................. 25 Pierce Pacific Mfg................................... 14 Quadco................................................. 16 Sennebogen........................................... 53 Smithco Mfg............................................. 8 Southstar Equipment.............................. 55 Steep Slope Logging Conference............. 59 Stihl......................................................... 5 Tigercat.................................................. 68 Tsubaki.................................................. 29 Vacutherm............................................. 27 Volvo Trucks........................................... 57 Vulcan On-Board Scales......................... 10 Wajax Equipment................................... 35 Waratah................................................. 67 Westerra Equipment............................... 15 Wood-Mizer............................................. 6 Woodland Equipment............................. 17

classified Andrea Masella Appointed Country Manager North America Trelleborg Agricultural and Forestry tires Trelleborg is pleased to announce that, effective October 19th, Andrea Masella was appointed to the position of Country Manager for North and Central America Agricultural and Forestry Tires for Trelleborg Wheel Systems. Andrea Masella graduated in engineering from the University of Rome, Italy. His passion for the agricultural industry grew while initially working for an original equipment manufacturer and then at Trelleborg, where he has held several strategic positions in Europe and North America. Masella says: “It is an honor for me to take on this new challenge at such an important moment for Trelleborg agricultural tires in the U.S. There are many positive things happening in the company, such as the first “Made in the USA tire” produced in our state-of-the-art manufacturing facility in South Carolina. We have also successfully launched several new product lines in both original equipment and replacement channels.” Dealers and end users can find more information about Trelleborg at www.trelleborg.com/wheels/us

Logging & Sawmilling Journal - December/January 2016

thelastword

Time to compensate logging contractors on what it costs to run a business in 2016—not in 2008 By Tony Kryzanowski

here is a lot of pain being felt among individual Canadian logging and log haul contractors these days (see the Spotlight story on page 4 of this issue) and while it would be easy to blame the big, bad forest companies exclusively, the pain is coming from a lot of different directions. A great deal of uncertainly currently exists in the forest products world, with softwood lumber prices having gone in exactly the opposite direction as market forecasters expected, the thirst for lumber in China has diminished, and the recent American decision to place a massive tariff on supercalendered paper for some Canadian producers. The cost for everything seems to keep going up for the average logging and log haul contractor—the most painful being the cost of replacing equipment. Given the exchange differential between the Canadian and American dollar, some contractors are reporting as much as a 30 per cent increase in the cost of equipment. While I hesitate to use the word crisis, it’s hard to find another word to describe what some contractors face in the short to medium term with equipment replacement. The response is painfully clear. Contractors will have to absorb that cost, extend the life of existing equipment, look for ‘lightly used’ replacements—or turn off the lights and quit the business entirely if the exchange rate differential sucks out the last few percentage points of profit from the business. What I’m hearing from many long term, well established loggers these days is: “It used to be fun and profitable.” Now? Not so much. Personally, I can’t envision a situation where over the next decade large contractors will be able to afford to continue

to operate at the same level. Maybe the answer is for logging contractors to take on less volume with less iron and fewer employees, but operate more efficiently. Maybe that has been a long time in coming. For years, the trend has been to encourage trusted and efficient contractors to take on more volume so that forest companies have fewer contractors to have to deal with. In theory, this hasn’t been a bad approach because it rewards good contractors with the potential for more profit. However, human nature being what it is, abuse can find its way into this relationship. By abuse, I mean asking these contractors to take rate reductions when times are tough, but hesitating or outright refusing to raise rates back to current conditions when times are better. It’s the big box store model—promise a supplier big volumes to the point where they can’t afford to work for anyone else, and when they become totally dependent upon you, then you start squeezing them on price. What has made this situation worse for contractors is the evolution toward dominance of the entire industry by a smaller group of companies. In other words, some areas have become so dominated by single large forest companies that contractors have nowhere else to turn if they are squeezed. While this situation is difficult for contractors, as business practices go, it’s hard to fault the majors for trying to create good value for their shareholders, with fibre costs notorious for being their biggest business expense. But here’s where some really nasty negotiating tactics sometimes raise their head: when forest companies actually penalize contractors when they take steps to become more efficient, by reducing their rates. That crosses the line.

If forest companies want to avoid having to negotiate with organized contractor associations that have full control over whether logs show up in their mill yards in future, they had better put a stop to this heinous practice. Is there room for contractors to operate more efficiently? Yes. Are there situations where contractors are working as efficiently as they can, but still face abuse from their forest company clients? Unfortunately, yes. While I hesitate to take sides, the fact is that the Truck Loggers Association in B.C. has got it right, as noted in the Spotlight story. The current situation of fewer forest companies controlling a greater share of the industry is creating an adversarial situation among loggers, log haul contractors, and companies. Where I am not seeing as much confrontation is in situations where wood product businesses are still owned by individual entrepreneurs or groups of private shareholders. Predictably, these owners tend to have a better feel for what logging contractors are experiencing in the trenches, and seem more beholding to their suppliers. Suffice to say, given the current trend of how many contractors are leaving or retiring from the industry, and how few young people are filling the gaps, forest companies best think long and hard before squeezing contractors any further. Contractors did their part during the downturn and took the rate cuts. Now it’s time to provide them with the opportunity for a reasonable return on their investment with rates that reflect today’s costs—not what it cost to run a logging business in 2008.

Logging & Sawmilling Journal - December/January 2016

CONFIDENCE BY DESIGN.

THE PROOF IS IN THE EFFICIENCY, PRODUCTIVITY AND UPTIME. We put a lot of thought into the 875 and 880 series loggers. We wanted the machines to be multi-purpose yet purpose-built, high on power but low on fuel consumption, a pleasure to operate and easy to maintain. So we started from the undercarriage up and redefined what a purpose-built forestry machine should be. When you choose a Tigercat logger, you are backed by painstaking engineering work and a team of dedicated manufacturing and product support professionals. Whether you are processing, shovel logging or loading, feel confident that your Tigercat logger will deliver higher performance and increased efficiency along with maximum long-term uptime.

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