I n c o r p o r a t i n g A U S T R A L A S I A N F O R E S T L O G G E R & S AW M I L L E R APRIL 2016 • P: (03) 9888 4834 • www.timberbiz.com.au
Plantations…the missing piece of the puzzle T
HE AUSTRALIAN Forest Products Association (AFPA) has released a comprehensive new policy proposal, Plantations…the missing piece of the puzzle, detailing a solution to the plantations crisis facing Australia. Softwood and hardwood plantations provide more than 80% of the wood fibre and timber for our national forest product industries. However, investment in new plantations in Australia has effectively come to a standstill. “We are now in the crazy situation where we are importing more and more softwood, for example, to build our houses because existing sawmills cannot get sufficient resources. It is a bad situation which gets worse and worse the longer we wait,” said AFPA Chief Executive Officer
Ross Hampton. AFPA’s new policy proposal would see the Australian Government recognise 29 Strategic Plantation Hubs in which plantations and downstream processing would be encouraged through a range of well-targeted measures. The policy does not propose new spending, rather the refinement of existing investment policy drivers, such as the carbon farming initiative, and the allocation of targeted funds from existing programmes to state governments, local governments and industry in 29 plantation hubs. The plan capitalises on the underlying regional basis and strengths of the plantation forest industry, with a focus on improved access to the Emissions Reduction Fund auction process; development of a national
farm forestry cooperative; redirecting Commonwealth infrastructure, road and communications funding to support projects in the plantation hubs; and training to address critical skill demand shortages. AFPA believes the policy proposal will reignite plantation investment while ensuring the right trees are planted in the right places for the right markets. The plantation hubs would be defined by 100 kilometre radius circles drawn around the 29 major wood plantation growing and processing centres in Australia, which service domestic or export wood and paper markets. Research into the economics of the plantation forest industry has repeatedly shown that the optimal areas to develop new wood
Continued on page 8
AUSTimber2016 primed to be biggest yet
T
he organisers of AUSTimber2016 have put in place an event with – • Over 80 brands exhibiting at the world famous Expo • Speakers from countries as diverse as Canada, Japan, Brazil, Malaysia, South Africa, Chile and New Zealand at the international Sustainable Supply Chains for the Timber Economy of the Future conference • Industry field trips to venues ranging from steep terrain logging to Australia’s largest hardwood mill, Australia’s largest
pulp and paper mill and some highly specialised plantation and sawmilling sites • The Wood - the Intelligent Alternative seminar covering the exciting manufacturing opportunities presented by the new National Construction Code coming into play at the start of May • The traditional Welcome Dinner (this time featuring David Foster as MC) with its charity auction offering a range of interesting lots looking to beat the record result achieved at AUSTimber2012.
• The Komatsu Forwarder competition with a prize of $2,500 to go with the bragging rights of being the best operator • The VicForests Wood Chop with a variety of events including having the Victorian State Title for Double-handed cross cut sawing on the line and Production Hot Saw chain saw racing On top of delivering all of the above, the event is advertising for the first time on TV to encourage the general public to go along and see the equipment and people Continued on page 8
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In the news I n c o r p o r a t i n g A U S T R A L A S I A N F O R E S T L O G G E R & S AW M I L L E R
April 2016 Issue 2 Vol. 25 Established 1991 Features In The News 3-12 AUSTimber 13-28 Bushfire 29 Australian Forest Growers 30 Ingenuity 31 International Day of Forests 32 Publisher and Chief Executive: Hartley Higgins General Manager: Elizabeth Bouzoudis Editor: John Hudswell j.hudswell@ryanmediapl.com.au Adelaide Office (08) 8369 9512 Advertising: Michael Dolphin m.dolphin@ryanmediapl.com.au Melbourne Office (03) 9888 4834 Production: Luke Westle Trader classified: m.dolphin @ryanmediapl.com.au Melbourne Office (03) 9888 4834 Subscriptions: subs@forestsandtimber.com.au Adelaide Office (08) 8369 9522 Subcription rates One-year (8 editions) $55 Two-years (16 editions) $95 Accounts: Adelaide Office (08) 8369 9555 Postal Address: 630 Regency Road, Broadview South Australia 5083 Phone: (08) 8369 9555 Fax: (08) 8369 9501 Melbourne Office: Suite 103, 486 Whitehorse Road, Surrey Hills, Victoria, 3127, Phone: (03) 9888 4822 Website www.timberbiz.com.au Printed by Lane Print, Adelaide, SA Conditions The opinions expressed in Australian Forests & Timber News are not necessarily the opinions of or endorsed by the editor or publisher unless otherwise stated. All articles submitted for publication become the property of the publisher. All material in Australian Forests & Timber News copyright © Ryan Media. All rights reserved. No part may be reproduced or copied in any form or by any means (graphic, electronic, or mechanical including information and retrieval systems) without written permission of the publisher. While every effort has been made to ensure the accuracy of information, the published will not accept responsibility for errors or omissions, or for any consequences arising from reliance on information published.
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Timber Queensland appoints new Chief Executive Officer
M
ICK STEPHENS has been appointed as Timber Queensland’s new Chief Executive Officer (CEO). The former AFPA deputy CEO will take on his new role in mid-March. Retiring CEO Rod McInnes welcomed the appointment of his successor saying Mick’s background would absolutely complement the Board’s vision for the future of the association. Mr McInnes said that after a rigorous executive search the Board’s choice was based on Mr Stephens having the most suitable blend of expertise, experience and passion to lead Timber Queensland during the next chapter of its journey. “Mr Stephens’ formal qualifications in Forestry and Economics, extensive industry involvement and previous Government experience along with his track record working with member-based organisations, made him the ideal candidate to lead Timber Queensland into the future,” said Mr McInnes. Chief Executive Officer of the AFPA, Ross Hampton said: “Mr Stephens has directly served the interests of the forest industries of Australia for many years, firstly through the National Association of Forest Industries and for the last five years in senior roles at AFPA. Mr Stephens has played an important part in major policy debates and contributed significantly to our successes. “Mr Stephens will be moving to Queensland to take up this important leadership position heading the State Association, which is a member of AFPA, with our goodwill and best wishes.
¢ Mick Stephens, Timber Queensland’s new CEO.
¢ Rod McInnes, retiring CEO of Timber Queensland.
As the national Association, AFPA works collaboratively with all the State Associations, including Queensland, and this will continue.” “I am very much looking forward to taking up this important position and working with the Board to further promote the opportunities for the Queensland timber industry. There is great potential to further grow and add value to the State’s forest products industry and this will be an important priority going forward,” Mr Stephens said.
Queensland backs forest and timber R&D THE QUEENSLAND Government has released a new plan for AU$1.4 million of research, development and extension funding which will support the growth of the state’s forest and timber industry. Department of Agriculture and Fisheries (DAF) Deputy Director General (Fisheries & Forestry) Scott Spencer said the Queensland forest and timber industry research, development and extension (RD&E) framework was developed around industry priorities. “The framework was facilitated by an advisory committee of industry representatives to ensure we target the investment where it can have the most impact,” Mr Spencer said. The committee includes representatives from HQPlantations, Parkside Building Supplies (Timber Division), the Engineered Wood Products Association of Australasia, Kalka / HWB Group, and Forest and Wood Products Australia. “We are committed to growing the forest and timber industry, driving innovation, and optimising the value of forestry resources. This RD&E framework is the cornerstone to targeting investment that will
support the industry’s future development.” The framework outlines a range of areas for investment across eight key themes: native forests, softwood plantations, hardwood plantations,
forest protection, wood residues, logistics and processing, timber products and building systems. “DAF is realigning its forest and timber industry RD&E program to support the framework and is
providing funding support for new priority projects in these theme areas.” The framework can be downloaded from www.daf. qld.gov.au
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April 2016
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In the news
In Brief Performance assessment of WA Regional Forest Agreement to ensure strong outcomes The Australian and West Australian Governments have agreed to a scoping agreement for the planned third five-yearly review of the Regional Forest Agreement for the South-West Forest Region of Western Australia. The Assistant Minister for Agriculture and Water Resources, Senator Anne Ruston, said the review was the first phase in meeting the Coalition Government’s election commitment on RFAs. “Regional Forest Agreements are a key tool in managing these important multiple-use forests in each state responsibly and consistently. This review, under the WA Regional Forest Agreement, is another step in maintaining resource security and investment confidence for the forestry industry in WA whilst providing ongoing certainty for conservation outcomes,” Senator Ruston said. One Forty One looking for workers One Forty One Plantations says it wants to harvest more pine trees, but a lack of manpower is impeding the process. The company’s desire to increase its pine harvest is in stark contrast to recent issues raised by construction union, the CFMEU, on the sustainability of the forestry resource. Chief operating officer of One Forty One Plantations, Owen Trumper, said the company was not concerned with over-harvesting. “No question; we’re operating at about 2 million cubic metres — that’s a sustainable yield of our estate,” Mr Trumper said. “In many ways, we’re actually undercutting,” he told the ABC. Three years ago, the company paid the South Australian Government $675 million for the harvesting rights to 80,000 hectares of State-owned plantations. Mr Trumper indicated that during the early 2000s that the forest was being under-harvested, which created a surplus of trees. Now, the company would like to capitalise on strong market conditions. Taxing time for PNG Papua New Guinea’s Forestry Minister says operations of the Malaysian logging giant Rimbunan Hijau in his country are monitored closely. This follows a new report by the US-based research group, the Oakland Institute, which exposes a web of tax evasion and financial misreporting by logging companies operating in PNG. The Institute investigated the financial records of dozens of companies, including Rimbunan Hijau and its many subsidiaries, which have reported little or no profit for over a decade. Minister, Douglas Tomuriesa claimed that his department collected comprehensive taxes from loggers in PNG including Rimbunan Hijau. 4
National call for mechanical fuel load reduction tenders
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$1.5 million national tender to fund three mechanical bushfire fuel reduction trials is now open. Assistant Minister for Agriculture and Water Resources, Senator Anne Ruston, and New South Wales Minister for Primary Industries Niall Blair, are calling on potential service providers to submit expressions of interest. Minister Ruston said the $1.5 million to fund mechanical fuel reduction trials was available through the $15 million National Bushfire Mitigation Program, a three-year program to reduce the impact of bushfires and build a more disaster resilient Australia. “This tender process delivers on a key forestry election commitment made by the Coalition and demonstrates our commitment to improve bushfire prevention and fuel load management in our public forests,” Minister Ruston said. Expressions of interest for funding bids for trial sites are now open and will close 1 April 2016 at 2pm. “By undertaking trials and incorporating the learnings from them we will be able to use evidence-based prevention and management methods in the future. “Our hope is that these trials will give us alternatives to those we currently have—like planned burning—especially around key assets or high conservation value areas where planned burns pose too high a risk. “Developing these tools has strong potential to benefit communities who currently deal with smoke haze during planned burns, state and territory forest managers and potentially the front line—our hard working fire management agencies and volunteers. “Through this tender we want to fund at least three mechanical bushfire fuel reduction trials in different parts of the nation.” Minister Blair said NSW was determined to work with the Australian Government to deliver better bushfire mitigation tools for its communities. “We know the devastating impact bushfires can have on the community and on our precious environmental and productive resources,” Minister Blair said. “Mechanical fuel reduction is about finding effective and efficient ways to reduce fuel loads whilst retaining important forest values and reducing the potential for high intensity bushfires. The trials provide another example of innovative, active and adaptive
management approaches to forest and fire protection across the landscape. “We’re always looking for ways that do the least harm to the forest and produce the most benefit in mitigating the risk of bushfires.” The Australian Forest Products Association (AFPA) Chief Executive Officer Ross Hampton said there is more than one way to reduce the fuel load in our bush. “Matches and fuel reduction burning has its place, but so do mulchers. Removing fallen timber and lower level scrub, known as ‘mechanical fuel removal’ is a widely accepted bushfire mitigation tool which we have not been utilising in this country.” A report by Deloitte Access Economics (DAE) into the economics of ‘mechanical fuel removal’ found that removing fuel from the bush, in combination with fuel reduction burning, could dramatically reduce the damage caused by bushfires and save the community tens of millions of dollars each year. “In the United States, for example, there is a 10 year, $400 million program into mechanical fuel reduction to improve forest health and reduce bushfire risk,” Mr Hampton said. Senator Ruston also had a strong message for the forestry industry saying there had never been a more exciting time to be involved in the forestry and wood products industry. “The Turnbull Coalition Government will continue to remain in step with industry on policy development,” she told an Australian Forest Product Association function.
Australian Forests & Timber News
April 2016
" ... removing fuel from the bush, in combination with fuel reduction burning, could dramatically reduce the damage caused by bushfires and save the community tens of millions of dollars each year. " “This is an industry that has demonstrated its willingness to innovate to meet the challenges of the future—and as purveyors of a truly renewable and recyclable product the industry can look forward to an increasingly important role in providing the materials of the future. “The Forest Industry Advisory Council will deliver a strong discussion paper that will position our forest and wood products industries to take full advantage of future opportunities. “The council has welcomed the strong level of industry engagement in preparing this paper, and is now carefully considering the nearly 80 submissions it has received – and is committed to delivering a paper that represents the view of the collective industry,” the Senator said. “The Turnbull Coalition Government stands with our forestry industry in committing to a profitable and sustainable future.” www.timberbiz.com.au
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In the news
VicForests gets stamp of approval for sustainability
V
ICFORESTS has successfully retained its certification with the Australian Standard for Sustainable Forest Management for the ninth year running. The Australian Forestry Standard (AFS) is a certification that provides consumers with the assurance that the timber products they are buying comes from sustainably managed forests. VicForests’ Chief Executive Officer Robert Green said that this re-certification was a great example of how VicForests was continuously improving and adapting its operations as a leader in sustainable and ethical timber production. “We take our responsibilities very seriously and are continually looking at ways in which we can
balance the need to protect environmental values while also meeting the demand for locally sourced, sustainable timber. “Our staff are very passionate about what they do. Every operation is carefully planned before harvesting to ensure threatened species and habitat are protected and the area regrows to its natural state.” The AFS is internationally recognised by the world’s largest forest certification scheme, the Program for the Endorsement of Forest Certification (PEFC). There are nine criteria that must be met to receive certification including the need to protect biodiversity, maintain forest productivity and forest health, protect soil and water, maintain carbon
¢ VicForests’ Chief Executive Officer Robert Green.
¢ Ferns among the forest.
cycles and to maintain and enhance social and economic benefits. VicForests is audited every nine months by the accredited auditors in order to retain its certification. The most recent re-certification audit took place in December 2015. “The report stated that VicForests has consistently and continuously improved and kept pace with the changes
to the timber industry,” Mr Green said. VicForests was also praised for its management systems with significant improvements being made to maps and other key planning and communications tools. Training and assessments were listed as areas to improve on. “We are currently reviewing these procedures
Mitsui to become shareholder in New Forests TOKYO-BASED Mitsui is to acquire a 22.5% shareholding in New Forests, an investment manager specializing in sustainable forestry and land management in Australia, New Zealand, Asia, and the United States. Founded in 2005, New Forests has assets under management of AUD 2.8 billion (approximately ¥240 billion) including more than 600,000 hectares of timber plantations, rural land, and conservation investments globally. New Forests is one of the ten largest forestry investment managers in the world and the largest focused on the growing timber markets and plantation sectors of the Asia-Pacific region. New Forests is also distinguished by its commitment to high levels of environmental performance and positive social and community outcomes in its investment and forestry asset management policies. The company is a signatory to the United Nations-supported Principles for Responsible Investment as well as other industry and membership groups supporting best practices in forestry, responsible investment, and sustainability. New Forests also has a commitment to third-party certification of the sustainability of all its investments and operations. Over the past 30 years, institutional forestry investment, including funds, direct investments, and timber REITs, has grown to more than USD 100 billion (approximately ¥12
6
trillion). The sector is positioned for further growth in the coming years as institutional investors seek to increase investment in real assets like timber, agriculture, real estate, and infrastructure. In addition, global timber demand is expected to grow at 1.5-2% per annum, and incremental growth in supply will need to come from sustainably managed plantations. Mitsui’s investment in New Forests is part of its strategy to increase and diversify its investment in forestry to meet the world’s growing demand for sustainably produced timber from well managed forest resources. Mitsui looks forward to supporting the growth of New Forests and the sustainable forestry investment model, positioning this investment at the centre of its business portfolio. Through this investment Mitsui will contribute to sustainable development while providing a stable supply of wood resources through New Forests’ business. Mitsui will support the growth of New Forests using its extensive business network and knowledge accumulated through its long-term engagement in the forest sector. Mitsui also has expertise in asset management and financing and the capacity to support New Forests in entering the Japanese institutional investment market. Working together, Mitsui and New Forests hope to expand Japanese institutional investment in the forestry sector.
and will work to improve them over the coming months,” Mr Green said. VicForests is responsible for the sustainable harvest, regrowing and commercial sale of timber in Victoria. VicForests supports thousands of jobs state wide and plays a vital role in sustaining the economy in rural areas.
VAFI Annual Industry Dinner 2016 - celebrating 130 years! This year the VAFI Annual Industry Dinner is a particularly special event, as it marks 130 years of industry representation in Victoria. The dinner, to be held on Friday 18 November, will be a great celebration of an industry and Association with a proud history and a bright future. From 1886, when sawmillers met at the Orient Hotel in Melbourne, through to the Hardwood Millers’ Association of Victoria, then the Victorian Sawmillers Association, and finally, the Victorian Association of Forest Industries: this is the long and proud history of the Association, and it is a legacy that VAFI staff are proud to uphold. “We have come a long way since those early days at the Orient, although some of our challenges remain eerily similar,” said Tim Johnston, CEO. “However, VAFI is no longer just sawmillers, we are also growers, managers, contractors, and processors. We work in plantations and in the natural forest, and we live in rural, regional and metropolitan Victoria. Some of us even live interstate! From the seedling to the stick of timber or ream of paper, we are all that and everything in between. “I am very honoured to be
Australian Forests & Timber News
April 2016
¢ Tim Johnston
the CEO of an association that is a trusted voice for the forest and wood products industry. We have worked hard for our strong reputation for service and advocacy in Victoria. “With your help we would love to make 2016 a year of celebration. We would love to hear your stories about the industry in Victoria and we would love to see your photos from the past, and the present. This industry would not be the great industry it is today without all of you. “Throughout this year we will be running a spotlight on history in our newsletter, The News Mill, and will feature stories and photos on the night of the dinner,” said Tim. To be a part of this celebration please contact the VAFI office at info@vafi.org.au or give us a call on 03 9611 9000. www.timberbiz.com.au
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In the news
Forestry Tasmania makes good progress towards FSC certification
F
ORESTRY TASMANIA is meeting more than 90% of the indicators required for FSC certification, according to an audit report. Forestry Tasmania’s CEO Steve Whiteley welcomed the positive progress report and said the organisation was well on the way to addressing the remaining issues. “FSC Forest Management certification is a complex process with more than 200 separate indicators, and while we have certainly made good progress in meeting the requirements, we recognise we still have some more work to do. “We remain strongly committed to achieving FSC certification and our people should be commended for their ongoing work and focus to implement the changes necessary to achieve it.”
FSC is a leading global certification scheme that promotes responsible forest management worldwide and enables businesses and consumers to make informed choices about the forest products they buy. Mr Whiteley said the Forestry Tasmania’s Board had recognised the significant public interest in Forestry Tasmania’s FSC certification journey and had therefore taken the progressive step of releasing the full audit report. “FSC audit reports are typically only made publicly available once certification is achieved, however in the interests of openness and transparency we want our stakeholders to be fully informed about the process we are undertaking. “Our stakeholders and customers have previously indicated that FSC
Forest Management certification is important to them and it has therefore been an important priority for Forestry Tasmania. “I would like to thank all stakeholders who have provided input into the audit process, and encourage ongoing consultation as we continue to refine and improve our systems to achieve this standard. “These are complex issues to resolve and we trust that all stakeholders with an interest in Forestry Tasmania achieving the best possible balance between social, environmental and economic outcomes will welcome the work we have undertaken to date, and our ongoing commitment to achieving FSC Forest Management certification.” ¢ Steve Whiteley, CEO
Plantations…the missing piece of the puzzle Continued from page 1
plantations are within 100 kilometres of major processing facilities and ports. These important facilities – including pulp and paper mills, sawmills, wood panel plants and port facilities provide the most significant domestic and export market opportunities for the industry. The most recent analysis by BAEconomics (2015) has shown that, unless exceptional circumstances exist, the typical economic haulage distance for investment in new plantations is within 100 kilometres of a market. The BAEconomics (2015) analysis also showed that new wood plantations would be unable to compete for high cost agricultural land The other advantage of planting within strategic hubs
is the economies of scale brought about by the existing wood resources in these regions. Plantation resources that are too distant and fragmented lack the scale at a regional level necessary to support internationally competitive and profitable wood and paper product processing facilities. An important feature of the plantation forest industry is the integrated use of high quality logs for timber as well as pulpwood and lower quality wood that is converted into value-added products such as paper and wood-based panels. The existence of strategically located processing facilities such as paper and panel board mills provide a high-value market for pulpwood and other processing residues from the
sawmilling industry. This integrated value chain improves the overall profitability of the industry and underpins many regional jobs. These are the suggested Hub sites:1. Darwin 2. Mareeba 3. Gladstone 4. Maryborough 5. Gympie 6. Yarraman 7. Caboolture 8. Kyogle 9. Koolkhan 10. Nundle 11. Herons Creek 12. Bathurst 13. Tumut 14. Tumbarumba 15. Albury 16. Bombala 17. Wangaratta
18. Myrtleford 19. Morwell 20. Geelong 21. Colac 22. Portland 23. Mount Gambier 24. Mt Lofty Ranges 25. Burnie 26. Bell Bay 27. Boyer 28. Collie 29. Albany FPA estimates that the plantation hubs policy would create more than 4,500 new jobs over the next 10 years. For every 100 hectares of plantation in Australia, it has been shown that around 1.5 direct jobs are created in management, harvesting, haulage and processing (Bureau of Rural Sciences 2005). These new jobs would be created across the industry
supply chain, in silviculture, harvesting and haulage, as well as in sawmilling, wood processing and paper manufacturing. This would be a major boost for regional economies and communities across the nation. This policy would also generate climate change mitigation benefits. The planting of 30,000 hectares per year of new long rotation softwood plantations over the next 10 years, for example, would capture and store an additional 5 million tonnes per annum of carbon emissions from the atmosphere. These new plantations would remove a total of 50 million tonnes of carbon emissions over that period.
AUSTimber2016 primed to be biggest yet
Continued from page 1
that go to make our industry both technologically advanced and focussed on sustainably managing our forest resource. Oh, and at the same time, seeing that this is an industry with great career prospects and business opportunities. “The support of major sponsors Latrobe City and HVP has been greater than simply putting their name to the event,” says AUSTimber Evente General Manager Laurie Martin. 8
“As part of their commitment to the event and the industry, Latrobe City was the first government region in Australasia – federal, state, regional or local – to introduce a Wood Encouragement policy with officers and councillors subsequently putting their weight behind getting such policies adopted across Australia. At least six other local government bodies across Australia have now adopted their own WE policies. “HVP have not only provided
the plantation for the Forest Expo site, they have brought their considerable expertise to bare to deliver a site that is world class and an excellent context in which to showcase both the Australian industry and the international equipment manufacturers who will be demonstrating their machines and technology,” he said. “If you haven’t already booked your tickets to the event, now would be a good time to go onto the
Australian Forests & Timber News
April 2016
AUSTimber website – austimber.org. au – and do just that. “And if you haven’t already secured your accommodation, you can go through the website to do that as well or, alternatively, take advantage of the event’s proximity to Melbourne (about a two-hour drive) and day trip from the city. “However you look at it, going to Gippsland in April could be a real eye-opener if you’re a professional in the industry,” Laurie said. www.timberbiz.com.au
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In the news
Innovative approach keeps business on the rails
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N INNOVATION, rail. “TasRail recently operated a manufactured at Triabunna number of trial services hauling on the east coast of south bound logs for a new customer. Tasmania, is helping TasRail to While it is early days yet, TasRail is grow its container freight volumes hopeful that it can capture a greater and improve the overall efficiency share of the available freight task.” of the Tasmanian freight system. White believes the LogTainers are The custom designed ‘LogTainer’ a great story for Tasmania. “They is the innovation of Elphinstone are a great example of what can be Engineering in collaboration achieved through collaboration”, with TasRail. TasRail chief he said. “The outcome is a safe executive officer Damien White transport solution that benefits said the LogTainers solved business and industry through lower a vexing efficiency problem prices and increased efficiencies; previously associated with the community benefits through rail transport of whole logs. safer roads and avoided road “Conventional log wagons are accident and pollution costs; and incompatible with other forms of the Triabunna region benefits rail freight, meaning that they are from expanded manufacturing empty in one direction of each facilities with potential to log train service,” White said. generate further employment as “The Logtainer is a unique cradle Elphinstone expand their product that sits on top of an intermodal offering to the transport sector.” rail wagon, enabling the same TasRail is a State-owned company, wagon to be used for hauling logs established on 1 December 2009 and shipping containers. This by an Act of the Tasmanian enables TasRail to fully utilise the Parliament. The principal backload train journey to carry objectives of the business are more freight, thereby increasing set out in the Rail Company Act asset utilisation and the overall 2009 and require the company to efficiency of train services.” operate a rail business in Tasmania, The LogTainers also offer effectively and efficiently and to superior loading and unloading operate its activities in accordance efficiencies and improved safety with sound commercial practice. outcomes. TasRail purchased With a workforce of around 240 men 40 of the LogTainer Units from and women, Tasmania’s current Elphinstone, underwritten by freight task is approximately a $1 million grant from the 2.6 million tonnes per year – Australian Government. TasRail’s generating annual revenue in order provided the base volume the order of $37 million. TasRail necessary to fund investment in the conservatively estimates that equipment and resources required the freight it transports by rail to establish local manufacturing each year effectively removes the facilities at Triabunna. equivalent of 200,000 B-Double The rail operator currently rails truck movements from the State’s in the order of 90,000 tonnes of road network. whole logs each year but White On 10 February 2016, Tasmania revealed that the LogTainers marked the 145th anniversary of were already proving to be an railway operations in Tasmania. asset in the company’s efforts to attract increased log volumes on
Special ceremony TO CELEBRATE his life and honor Richard Stanton’s memory, a special ceremony was held on 13 March to plant a tree dedicated to the former National Secretary of the Australian Forestry Standard (AFS). Richard died in January 2015 following a tragic cycling accident. “We lost a great friend and colleague, and his death was a huge loss for the PEFC family. Richard dedicated his life to forests, and it is only right to plant a tree to commemorate him,” said Ben Gunneberg, PEFC International CEO, at the ceremony. “Richard was optimistic, 10
Australian Forests & Timber News
April 2016
enthusiastic and thoughtful. You will not be forgotten, Richard. Thank you for your friendship, your colleagueship, and your dedication to our work. You will be sadly missed.” The tree – a spotted gum (Corymbia maculate) – was planted at the National Foresters Grove in Albury joining more than 225 dedicated trees at the Foresters Grove. The memorial grove commemorates people who have made significant contributions to building a sustainable and renewable forest industry in Australia. www.timberbiz.com.au
D I R E C T
signodedirect.com.au
In the news
Changes to illegal logging regulations still don’t please all
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HE AUSTRALIAN G ove r n me nt’s independent review into the impact of illegal logging regulations on Australian businesses has met with approval from some quarters and condemnation from others. Minister for Small Business and Assistant Treasurer, Kelly O’Dwyer MP, Assistant Minister for Agriculture and Water Resources, Senator Anne Ruston, and Assistant Cabinet Secretary and Assistant Minister for Finance, Dr Peter Hendy MP, said the government was supporting all five of the recommendations in this review and will progress reforms. Minister Ruston said the review identified a range of actions that would likely minimise the business cost of complying with Australia’s illegal logging regulation. “The government remains completely committed to combating the illegal logging trade and in addition we are now minimising unreasonable and unnecessary costs on businesses,” Minister Ruston said. “Illegal logging has significant global economic, environmental, and social impacts and undercuts the legal timber market here in Australia. Minister O’Dwyer said the review found there was an opportunity to amend the existing regulation to strike a better balance between the risk of illegal timber
entering the Australian market and the very real cost of compliance to small businesses which are doing the right thing. “Any changes to illegal logging regulations will be about finding that balance and the government will continue to consult stakeholders on any proposed regulatory changes,” Minister O’Dwyer said. “We know that it can take time for businesses to adjust to new regulatory
manufacturers of timber and paper products, gave the changes the thumbs up. Australian Forest Products Association (AFPA) Chief Executive Officer Ross Hampton said the government’s continued support of action against timber imports sourced from illegally logged timber was a show of confidence in the Australian forest industry’s world-class practice and rigorous standards. “AFPA’s forest growing
agrees that this change will bear close monitoring to ensure actions by dubious importers do not indeed occur,” said Mr Hampton. “AFPA also appreciates the government’s agreement to proposals to streamline, simplify and reduce any further cost burden of the regulation to Australian domestic producers.” On the other side of the ledger, the CFMEU condemned the government’s plan to reform illegal logging
“The government wants to rely on other countries changing their own guidelines around illegal timber but that is a pipe dream.” arrangements, so we will extend the existing ‘softstart’ compliance period while the changes are being progressed, so no penalties will apply for failing to meet the due diligence requirements.” Assistant Minister Hendy said any proposed changes would be informed by further consultation and progressed with minimal impact on businesses. “Just as KPMG spoke with businesses and individuals from across the industry in undertaking this review, the government will continue that conversation on any proposed regulatory changes,” Minister Hendy said. Australia’s major industry body, which represents forest growers, harvesters, and
members are 100% certified by internationally recognised certification schemes, such as Australian Forestry Standard and/or Forest Stewardship Council. This is compared to many overseas countries with little or no recognised forest management certification. “With 60 million trees replanted or regenerated each year after harvest, the Australian forest products industry is also truly sustainable. “In the government’s response to the review, we note that it agrees in principle to increase the individual consignment value threshold in the Regulation to $10,000. However, it has indicated that it will put in place measures to prevent gaming of this new threshold. AFPA
regulations maintaining they will weaken the timber industry and spell disaster for local jobs. CFMEU National Secretary Michael O’Connor said the proposed reforms would increase the trade of illegally logged timber, causing massive economic, social and environmental issues. “Australia’s forest and forestry products industry already face heavy competition from overseas suppliers but this decision will gut local jobs, especially in regional areas,” he said. “This is typical of a Prime Minister who doesn’t give a stuff about local jobs, doesn’t care about our regions and pretends to care about the environment, when we all know that’s a lie.
“The government wants to rely on other countries changing their own guidelines around illegal timber but that is a pipe dream.” The government plans to raise the individual consignment value threshold from $1,000 to $10,000, meaning companies could bring in commercial quantities of timber products without any checks and balances in place. By scrapping due diligence requirements, any protections ensuring timber products are sourced from legal timber mills is thrown out the door, along with local jobs. “By removing the safeguards against the importation of illegally logged timber this government is opening up the industry to competition from illegal logging operations,” Mr O’Connor said. “The fact is, it costs a lot of money to follow the rule of law around these issues and people are out there to make a quick buck. They’re not going to just change the way they do business because Australia tells them they ought to. “What the government is really saying is, if you can keep your shipment values under $10,000 then it doesn’t matter if they come from an illegal source because we’re not going to check.”
Timber smuggling between Myanmar and China slumps ILLEGAL TIMBER smuggling across the Myanmar-China border has dropped sharply in the past six months, the Environmental Investigation Agency reported in early March. The slump represents an opportunity for the two countries to end the illegal trade once and for all, the EIA said, although Myanmar timber industry officials are not optimistic. Research from the UK-based nonprofit published last September found that the illicit timber trade between 12
the two countries was nearing an all-time high. Almost half a billion dollars worth of illegal timber – 900,000 cubic metres – crossed the border between Myanmar’s Kachin State and China’s Yunnan province in 2014, according to the EIA. But field observations since the September 2015 report show a dramatic fall in the trade across official and unofficial crossing points, the organisation reported recently. Sawmills in Yunnan border towns have closed due to lack of new logs
from the Kachin State forests, local sources told the EIA. No new logs have been seen for months, the sources said. The report suggests several potential drivers for the drop in smuggling. Myanmar’s arrest of 155 Chinese loggers in January 2015 and the EIA’s report from September of that year had raised political awareness, it said. A supply glut in the illegal timber trade and China’s economic slowdown were also factors.
Australian Forests & Timber News
April 2016
¢ Trucks loaded with logs wait in Kachin State to cross the border to China. Photo: Environmental Investigation Agency.
www.timberbiz.com.au
Australia’s biggest Forest products Expo is on again! Traralgon, Victoria 11-16 April, 2016 * Over 80 brands exhibiting at the world famous Expo * Speakers from countries as diverse as Canada, Japan, Brazil, Malaysia, South Africa, Chile and New Zealand at the international Sustainable Supply Chains for the Timber Economy of the Future conference * Industry field trips to venues ranging from steep terrain logging to the largest hardwood mill in Australia, the largest pulp and paper mill in Australia and highly specialised plantation and sawmilling sites * The Wood - the Intelligent Alternative seminar covering the exciting manufacturing opportunities presented by the new National Construction Code coming into play at the start of May * The traditional Welcome Dinner (this time featuring David Foster as MC) with its charity auction offering a range of interesting lots looking to beat the record result achieved at AUSTimber2012. * The Komatsu Forwarder competition with a prize of $2,500 to go with the bragging rights of being the best operator * The VicForests Wood Chop with a variety of events including cross-cut sawing, tree climb and Production Hot Saw racing * Two hour drive from Melbourne To book your tickets and search local accommodation, go to www.austimber.org.au Sponsored by:
Supported by:
AUSTimber 2016
Eco Log reveals new harvester range and officially announces collaboration with Volvo Penta
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016 IS the year when Eco Log’s newest generation of 550, 560, 580 and 590 harvesters will be launched with Volvo Penta D8 engines installed, ranging in power from 218 to 320 hp. Characterized by their high performance, reliability, fuel efficiency, and low emission levels, Volvo Penta diesel engines are built to be versatile. The engines are developed to satisfy forestry application with their low weight, compact designs, and easy installation, making them perfect to power the new Eco Log harvester generation. It is important to mention that Eco Log and MTU (Mercedes) remain partners. The reliability and efficiency of MTU engines, notably the 926 LA, have undoubtedly contributed to the success of Eco Log machines over the past years. Therefore, the existing D-series forwarder and 688 continue to be equipped with Mercedes Engines. The choice of Volvo Penta Engines for harvesters has been motivated by 3 main reasons: Proximity, Flexibility and After-sales. i. As simple as it sounds, Volvo is a Swedish heritage and Eco Log, which is based in Söderhamn on Sweden’s east coast, has over the
past few years highly focused on the value of using local components. Suppliers with a close geographic location enable both better support and closer partnership. ii. One and the same engine block can fulfill several standards, for example, with either Stage IIIA or Stage IV-compliance. This smart flexibility contributes to the efficiency of Eco Log production by providing the ability to use the same base machine frames while simultaneously fulfilling the various emission requirements worldwide. iii. International sales have expanded over the past two years and Eco Log is now represented on four continents. A strong global network is required to guarantee maximum uptime, reliable service and peace of mind for Eco Log customers. The new Eco Log 550, 560, 580 and 590 harvesters are dressed with the latest Eco Log colors and will of course remain equipped with innovative pendulum arms. Their impressive ability to tilt 25° sideways and a pitch angle of 17° to the front or rear allows them to easily maneuver in hilly environments. Eco Log equips, as standard, the new 550, 560, 580 and
Machine
Engines
Maximum power
Peak torque
Displ.
Euromot 4/Tier4f
kW
hp
rpm
Nm
rpm
Liters
550
TAD870VE
160
218
2200
1050
1060
7,7
560
TAD871VE
185
252
2200
1150
1160
7,7
580
TAD872VE
210
286
2200
1250
1237
7,7
590
TAD873VE
235
320
2200
1300
1310
7,7
590 with five pumps; two for the transmission, two implement pumps (one for the crane and one to operate the harvester head) and one so called “recirculation pump” which together with the new vertically oriented coolers optimizes the cooling capacity of the harvester where and/or whenever the machine operates. The Volvo Penta engine provides power to these pumps, running at a low rpm, and can easily handle all working conditions without overloading the engine. Among other new features, the cab is now able to rotate 350° further decreasing the frequency of machine movement verse competitors and thereby saving additional fuel costs even beyond those provided by the already efficient Volvo Penta engines.
Note that the 570 has been removed from the harvester range to the benefit of the 550. This unique four wheeler is now powered by 218hp and is equipped with a larger crane (the Eco Log crane 250 [255 kN], previously installed on 570D).
Imagine a world without hydraulics IF YOU think of the greatest inventions and developments in the world, items like the telephone, the wheel, electricity and the light bulb immediately spring to mind. However, lurking quietly and often uncelebrated nor recognised is the development of hydraulics and its incredible impact on humanity. Without this marvel of engineering and science, some of mankind’s greatest engineering feats would never have been possible. Hydraulics have driven agriculture and mining, been a central element in the Industrial Revolution, supported innovation around the world and been integral to projects that we define as some of our greatest, such as sending man to the moon, building the Panama Canal and construction of the Hoover Dam. The buildings we all live and work in are produced as a result of hydraulic controlled machinery. The energy we produce and consume from electricity to oil are at our fingertips and the petrol station thanks to hydraulics. How do you travel in your daily life? Train? Car? Plane? Hydraulics are critical components in the production and control of the mechanical machines we use for transport and provide us the ability to travel rapidly and safely throughout our local neighbourhood or across the world. Virtually everything in our modern world has been touched 14
by hydraulics in some way or another. In its simplest form, hydraulics deals with the science and engineering based field of fluid mechanics, where the activation of liquid creates the ability to generate, control and transmit power. The word hydraulics originated from the Greek word Hydraulikos which is loosely translated as ‘water’ and ‘pipe’. The earliest uses of fluid (water) were used throughout ancient Egypt, Greece and China in primarily agricultural fields. Ancient Rome is credited with many different early hydraulic applications, including power generation via watermills and hydraulic mining, where high pressure water was used to dislodge rock and sediment. When it comes to machinery, hydraulic operated machines utilises hydraulic fluid that is transmitted throughout the machine to various hydraulic motors and hydraulic cylinders, becoming pressurised according to the resistance present. The fluid is generally controlled directly or automatically, by control valves and distributed through hoses and tubes. Hydraulic machinery has been such a breakthrough tool for the human race due to the very large amount of power that can be transferred through small and flexible hoses to activate this power in a mind boggling array of applications. Australian Forests & Timber News
April 2016
Since 1981 Australian industry has relied on ENZED to keep their hydraulic machinery in tip top shape and thanks to ENZED’s revolutionary idea to bring the hydraulic repair equipment out to where the machinery was located rather than customers visit a store, ENZED has also played a part in reshaping the hydraulic industry. With ENZED pioneering the modern on call hydraulic repair service the entire industry has been able to save millions of dollars in reduced downtime plus receive a whole new level of quality service. ENZED boasts a network of 300 fully qualified mobile Hose Doctor’s Australia wide connected to over 100 ENZED Service Centres. www.timberbiz.com.au
AUSTimber 2016
Confidence and trust plays a major role in business success
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CCORDING TO Tabeel Trading’s Managing Director Steve Witherow their purchases of 11 Komatsu Forest machines over the last 18 months revolves around two key points ... confidence and trust. Running a successful forestry logging/chipping/ haulage business is more than just utilising machines ... it is about the people; the business relationships; the trust; the confidence. With a current workforce of 108 the obvious question was how do you keep track of things? and his reply said it all ... “Good people. You can’t run a business like this without good people, and that’s my main focus. It’s not about the machinery, it’s about the people, and everyone is equally important and family is most important.” And that includes a long-standing business relationship with Komatsu Forest. Steve and his recently deceased father John have created a long and successful logging business when moving to Mt Gambier for the salvage operation just after the Ash Wednesday fires in 1983.”It all developed from there,” says Steve. When the fire salvage work finished they moved into green plantations. “Our first harvester in 1986 was a Kato excavator with a Steyr processing head; it was very early days for mechanisation. We were just producing long length pulp, and Moreland Logging had kicked off with the first KF products... the Valmet GP940 mounted on a Sumitomo excavator. “From there it started to develop even more as manufacturers caught up with everything that we (contractors) wanted as they were pretty dirty and rough bits of gear at that point of time,” Steve recalls. “In 1986 we began our contracting with the Woods and Forest Department (the SA Government) and from there it progressed through those years in contracts, www.timberbiz.com.au
we eventually branched out and started working for CSR. That is when we got into chipping and took over what was CSR’s harvest and haul division which was not cost effective as a mill
operation. At that stage we had 15 people before we took over the CSR harvest and haul division and then it jumped to about 50.” Tabeel’s first Komatsu (Valmet) came in 1988, a Valmet 892 forwarder ... the
Australian Forests & Timber News
start of the Komatsu Forest Australia connection. “That was when we met Brenton Yon and it just grew from there. Since then we’ve had nearly every model they’ve made, from single grips to twin
April 2016
grips to their forwarders; even their Timbco range of Feller Bunchers. We also run quite a number of Peterson machines which is now under the KF banner in Australia.” Continued on page 16
15
AUSTimber 2016
Confidence and trust plays a major role in business success Continued from page 15
Steve explained that it wasn’t just buying equipment from KF, “it’s more a long standing business arrangement that’s worked for both companies. In some cases they may not have the best product but they are probably the best company for us to be dealing with.” When asked whether there was any one model that stood out over the years he didn’t hesitate in responding ...”At one point we purchased four black 911 Harvesters. I got one machine to run through two contracts ... it did a 10 year contract ! We traded it in and bought it back twice ... and we have still got it today. So, it’s really been a classic as we traded it in and bought it back twice. It’s a training machine ... for operators to learn in. When they first released the series we jumped on them because they were very productive and for their time they were well advanced,” said Steve. “Komatsu Forest’s backup and support is the standout. If you have a problem with a particular item of equipment they work on the problem and come up with a resolution. “They’re not just about selling machines and leaving you with a heap of problems. They support their product. They are a tight crew from
top to bottom so if you have an issue they get the message fairly quickly. Yes, Komatsu Forest Australia have been good to deal with. “While Komatsu Forest Australia are considered a very experienced supplier of harvesting equipment, they now have extended their product line by becoming the dealer for the Peterson chipper and green waste product line which has been another plus for us.” The latest hybrid Peterson flail chipper has special relevance for Tabeel ... “we were on the design team with Peterson”, says Steve. “That’s been another arrangement that really came about because of Komatsu Forest’s insistence of getting on board with what the customer wanted, not necessarily what they thought the customer should have. That’s worked out well.” This new machine will be on display at AUSTimber. “Komatsu Forest have been in the country for a long time and are regarded as being a reputable supplier and have been very supportive of contractors over the years as well as supporting many industry groups. We see them as good business partners but we don’t always buy their
equipment . We’ve got 19 harvesters, 15 forwarders and 7 excavators of various breeds, but the majority are KF products”. Steve mentioned the KF technicians. “They’re the unsung heroes ... they don’t get a lot of mention. These machines are so technical today and you need the technicians to be there to get them on line. They’re a very important part of the purchase decision, too. “You look at who is who, who is available for support, where the spare parts are going to come from. All these things in some way help make your decision ... which Komatsu Forest have been good at most times. “The timber industry has been very good to us and it’s probably the cleanest, greenest thing we could ever be involved with,” says Steve. “This area (Green Triangle) has been through downturns but has reinvented itself with a vibrant export market with strong growth over the last two years in blue gum and some expansion in the pine operations as well.” This has required a significant capital investment by Tabeel to meet these new demands over the last couple of years with Steve’s shopping list at Komatsu Forest being as follows:
4 x 895s. 1 x 931.1 1 x 931 new gen 1 x 951 1 x S132 1x S92 1 x 5000 Peterson Flail / Chipper 1 x 6800 Peterson Flail 1 x 6910 Peterson Chipper PC220LC-8
When asked what he most liked about the latest batch of equipment, Steve replied: “It’s early days but productivity levels and machine up time is looking good”.
¢ P eterson 6910 and 6800 at work
¢ P eterson 6910
¢ P eterson 5000H
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Australian Forests & Timber News
April 2016
www.timberbiz.com.au
A NEW GENERATION OF
FOREST MACHINES NOW IN AUSTRALIA!
RANDALLS EQUIPMENT COMPANY is proud to be associated with PONSSE Plc Finland by introducing the full range of PONSSE forestry machines to Australia. PONSSE is the world leader in supplying the logging industry with productive and environmentally friendly cut-to-length harvesting systems. CONTACT US FOR MORE INFORMATION RANDALLS EQUIPMENT COMPANY PTY LTD email: randalls@randalls.com.au www.randalls.com.au HEAD OFFICE VICTORIA Randalls Equipment Company 8 Wallace Avenue, Point Cook, Melbourne VIC Contact: Peter Randalls Ph: 03 9369 8988 WESTERN AUSTRALIA (NEW) Randalls Equipment Company 9B Charles Street, Albany WA Contact: Adam Bremner Ph: 0437 059 477
FORWARDERS: From 10.000 to 20.000 kg load capacity. HARVESTERS: PONSSE offers a full range of wheeled harvesters for the most challenging logging conditions. Six impressive models that range from the Beaver to the heavyweight Bear, including the new and very impressive ScorpionKing. The product range includes both six and eight-wheel harvesters in all size categories. Application ranges from harvesting softwood saw logs to harvesting & debarking eucalypt pulpwood.
A logger´s best friend www.ponsse.com
AUSTimber 2016
Pursuit of personalised service paid dividends LINX FINANCE was established in 1999 by Rohan Ford, having previously worked for a large equipment finance broking firm since 1992. Rohan’s pursuit was centered on providing a personalised service proposition to some niche industries, namely Forestry and Transport, who were particularly “time poor” and ill-equipped to facilitate the complicated task of obtaining competitive and wellstructured asset finance products. Linx’s after hour philosophies ensured it was able to get to its clients to ensure it was representing their respective businesses in the best possible light. “The business soon grew with the introduction with other industry specialists, namely Steve Day, Glenn Mellis, and Jason Steinke, which help ensured we could reach all states and pockets of Australia,” said Rohan. “Driven by a desire to provide the most competitive products for our clients we also established an aggregation service to ensure significant scale. The aggregation business today boasts over $1.8 billion in asset finance per annum, ensuring we deliver exactly that for our clients. “The journey over the last 20 years has been incredibly rewarding, dealing with some of the nicest and commercially savvy people in the industry,” he said. “The forestry industry has certainly had its share of ups and downs, as have the lending institutions and their respective waning levels of support…….. however, we ensured we were always up for a good fight to ensure the job goes on and the machinery necessary were delivered. “I am happy to say we have won most of the bouts, boasting a career to date commensurate to the famous Floyd Mayweather. The short to medium term future looks bright, lender appetite is improving and interest rates are set to remain low for some time,” said Rohan.
“We look forward to continuing our close association with the industry and sincerely thank those who have shared the journey with us.” Recently, Linx (in partnership with the Australian Forest Contractors Association) organised a tour showcasing commercially operating forestry sites to provide more than 20 lenders with the opportunity to learn more about the industry. During the two-day tour representatives of financial institutions were able to witness the diversity and complexity of commercial harvesting operations at a range of sites, such as the flat thinning operations of AusTimber, and the steep shovel and cable harvesting sites of Mountain Logging and ANC Forestry. This allowed them to experience, and appreciate firsthand, the wide range of equipment required to deal with the tough and extreme conditions that these sites operate under. Linx Australia Group also arranged for the lenders to visit HVP Plantations, Australian Paper’s Maryvale Mill and the Australian Sustainable Hardwoods mill in Heyfield. Here, the sustainable practices and value adding products within the timber industry were demonstrated. At the completion of the two day event, having gained an extensive understanding of the timber industry, the representatives of the major banks felt encouraged about the future economic outlook for the industry, whilst reflecting an enhanced perception of its sustainable and environmentally sound practices. Subsequently, Linx has noticed significant uplift in lenders attitudes in this very capital intensive industry. Participants were also reminded that the Latrobe City would be hosting AUSTimber2016, of which Linx Australia Group will be a major sponsor. AUSTimber is the largest forestry and timber show in the
¢ Rohan Ford (Left) and Steve Day.
¢ Lenders on tour of the forestry industry.
southern hemisphere and will showcase the latest in technology, machinery, products and services for the industry. It is the world’s only combined softwood and hardwood plantation expo (which will be held at Flynn Creek), and provides a great opportunity for members of the forestry and finance sectors to discuss future projects. The Traralgon Showgrounds site will have marquee and hall sites
for exhibiting and demonstrating the latest developments in timber processing equipment, systems and connectors for pre-fabrication manufacturers, displays of timber and panel products and treatments for designers, wood-working equipment for smaller scale operators. “We will see you at AUSTimber.”
Federation Training to attend AUSTimber 2016 IN 2016, Federation Training will make its AUSTimber debut, with a strong focus on its carpentry, cabinet making and forestry courses. AUSTimber is the Australian timber industry’s biggest four-yearly event and will be held this year at Traralgon. The event provides an opportunity for demonstration, discussion and dreaming up the technologies that improve productivity and sustainability in the management of forest products. “As teachers, this is a great event for us to meet potential students and to talk about what we can offer them,” said Federation Training 18
Forestry teacher, Kevin Nunn. “It is important for the community to be reminded that we are here to provide them with qualifications that are relevant and appropriate to their local industry,” says Mr Nunn. Federation Training is excited to reopen its Forestec campus, based in Kalimna, which is a purpose-build facility where students can receive hands-on, practical training to gain industry-ready skills and qualifications. All their courses have flexible study options, meaning you can complete your course in a way that best suits you and your lifestyle. The range of courses on offer at AUSTimber can be Australian Forests & Timber News
April 2016
studied from the Yallourn, Bairnsdale, Fulham and Forestec Federation Training campuses. “Whatever you decide to study, I and the other teachers can talk you through your study options and make sure you’re confident that you have the skills you need to get ahead in the workforce,” said Mr Nunn. Federation Training can be found at AUSTimber in the Main Pavilion, Showgrounds. For more information on any of Federation Training’s courses or to learn more about their presence at the AUSTimber expo, call 1300 133 717. www.timberbiz.com.au
AUSTimber 2016
Latest technology on show
“
ASIA PACIFIC is a strong and growing market for John Deere forestry machines and it’s the intention of the Deere and Hitachi team at AUSTimber to show customers the benefits of all the latest John Deere technology that makes Deere such a global leader in forestry equipment technology,” says Simon Shackleton, Sales Manager for John Deere Forestry, Asia Pacific and Africa. A full range of new “game changing” forestry harvesting machines will include a number of both Cut-to-Length and FullTree-Length equipment on static display and also working on two live demonstration sites.
Industry-led initiatives for safety issues
AT THIS year’s AUSTimber, ForestWorks will host a session about the opportunities for industry-led initiatives to manage safety issues facing the industry. The session will be held at the Macfarlane Burnet Room, Traralgon Service Centre, 3438 Kay Street, Traralgon, from 3-5pm (prior to the Welcome Dinner and charity auction).
Speakers: • Diana Lloyd from ForestWorks will provide an update of the FOLS Skills Verification Program which ForestWorks adminsters for industry. • John Gilbert, OAM - Manager Industry Stakeholder Engagement NHVR (National Heavy Vehicle Regulator), will discuss recent road transport policy initiatives.
“We encourage customers to visit the John Deere / Hitachi display and come and meet our global team and take the opportunity to discuss our new and exciting products which will be on show at AUSTimber2016, including the new MSeries tracked harvesters and feller bunchers and LSeries skidders with the first models of these products only recently brought into Australia.” There will be the new John Deere 948L skidder, the largest skidder John Deere produce, working along with an 853M feller buncher on the eucalyptus demonstration site. Just across the road in a pine stand attendees will be able to view
John Deere’s latest technology regarding CTL equipment, a 1270E eight wheel harvester. Customers will also be able to view a demonstration of John Deere’s newest forestry equipment fleet management software package “Forestsight Solutions” and test their skills on a John Deere forestry simulator. Representing each of the three John Deere factories that manufacture forestry equipment, and supporting the local Hitachi Australia sales team, will be 20 John Deere global forestry experts including Product Managers, Engineers and Marketing Personnel.
¢ 8 53M feller buncher.
¢ Deere 948L skidder.
Top chance to try world-class machines PONSSE MACHINES will be highlighted during AUSTimber near Traralgon and, according to Ponsse’s Australian agent Peter Randalls (Randalls Equipment Company), it will be a top chance for contractors to actually try the machines. “I’m sure AUSTimber will be the first time for many Australian forestry contractors to actually sit in the machines,” Peter said. “Ponsse is today the largest manufacture of Forwarders and Wheel Harvesters in the world, so for Australian logging contractors to see what the world uses in the industry is sure to be a highlight. “We will be running the Ponsse Bear Harvester in pine site alongside a Ponsse Elephant King Forwarder. “In the hardwood site we will run the ERGO 8wd Harvester with Euca H7 head also with a Ponsse Elephant King Forwarder. The plan for Ponsse machines to be displayed at AUSTimber includes Ponsse Elephant King 8WD Forwarders, Ponsse Bear 8WD Harvester, Ponsse Scorpion King Harvester, Ponsse ERGO 8WD Harvester with Ponsse Euca H7 harvesting head (for the hardwood), Ponsse H10 Harvesting Head static. ¢ ( Top right) The Scorpion has some sting. ¢ (Right) Ponsse Heads make quick work of harvesting. ¢ (Below) The Elephant has real strength.
• Sean Carlson, Principal Engineer, Engistics will present the results of the load restraint testing undertaken in Gippsland and the Green Triangle with contractors. • Paul Molenaar, General Manager, Compliance Experts will discuss his experience with developing and implementing industry wide Better Business models in other industry sectors including agriculture and transport. www.timberbiz.com.au
Australian Forests & Timber News
April 2016
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AUSTimber 2016
Caterpillar to showcase latest machines and technology
C
ATERPILLAR IS launching the Cat® 320D2 Forest Machine (FM) in Australia, coinciding with the company’s exhibit at AUSTimber2016. The company also is introducing the new Cat Advanced Ride Management (CARM) seat suspension system for the D Series wheel skidders, a revolutionary development in seat suspension technology. Caterpillar purpose-built forestry equipment -- like forest machines, track harvesters and feller bunchers, and wheel skidders -- enables loggers to operate efficiently and profitably. Cat forest machines are configurable for a wide range of applications; these include roadside processing, harvesting, stroke delimber, road building, biomass, stump removal, log loader and mill yard applications. The four models -- the 320D2 FM, 324D FM, 325D FM and 568 -- are rugged, powerful, industry leaders in reliability and durability. The Cat 320D2 FM replaces the 320D FM and is available in a General Forestry version for use in site prep, forestry road building, and heavyduty harvesting and processor applications; a Log Loader version is available for grapple (log loading), grapple saw, and light-duty processor applications. The Cat 320D2 FM delivers improved performance and versatility. Hydraulic operations are smoother, and swing torque has increased 18%. Ambient cooling capacity is improved, and
lower engine rpm helps to increase fuel economy. The improvements increase productivity and uptime while reducing operating costs. The machine is powered by the Cat C7.1 engine, which delivers 118 kW (158 hp) of gross power. This is a proven engine that is less sensitive to fuel quality and boasts improved reliability and lower fuel consumption. A hydraulic cross-sensing system utilizes two hydraulic pumps and maximum engine power during diverse operating conditions. Faster implement speeds and increased swing power improve overall performance, productivity, and efficiency. The General Forestry model utilizes a purposebuilt undercarriage for performance in the woods and heavy-duty pressed pin retention and greased lubricated track assemblies for longer life. Track roller frames for Log Loader configuration include outboard mount support for the carrier rollers and a heavier carrier roller, improving reliability and providing longer service life in forestry applications.. A large swing bearing diameter and unique bearing design extend swing system and upper frame life. Swing power and performance are enhanced for moving large payloads quickly and efficiently. The width of the lower track frame in the General Forestry configuration maximizes stability when swinging large loads at longer reach distances.
All Cat FM models feature purpose-built forestry cabs that reduce operator fatigue. Product Link™ is standard to help loggers manage operating costs and efficiency. Cat track harvesters and feller bunchers are designed with the best combination of lift capacity, swing torque and tractive effort ratios to enable loggers to boost production in the woods. The Cat 541 Series 2 and the Cat 552 Series 2 are full tail swing machines designed for high-production clear-cutting or final felling in rough terrain. The 552 is a levelling machine for improved operation on steep terrain. The Cat 521 and 522 B Series machines are nearzero tail swing platforms. The 522B is a levelling machine for select or clear-cut logging, and the 521B is a nonlevelling model best suited for plantation thinning, biomass harvesting and mediumproduction select or clear-cut applications. Track harvesters and feller bunchers have the Cat C9 ACERT™ 226 kW (303 hp) engine, which has a proven track record of reliability and durability in the woods. A high-capacity cooling system and on-demand reversing fan keep the harvesters debrisfree and running at the proper operating temperature, optimizing performance, durability and fuel economy. The closed centre hydraulic system includes fully adjustable electric over hydraulic controls and plentiful flow capacities; two or three pumps -- depending
¢ The Cat 320D2 Forest Machine in the workplace.
on configuration -- power the hydraulic system to give loggers smoother multifunctioning. Cat D Series wheel skidders enable loggers to get to the landing faster, increase production, and reduce operating costs, and the new CARM seat suspension system will allow them to work in unparalleled comfort. CARM is a semi-active suspension that dampens vibration and minimizes end stop events. The suspension system senses actual ground conditions and automatically adjusts the rate of dampening in real time. Cat D Series wheel skidders feature a six-speed transmission with more gears in the working zone, lock-up torque converter and independent front and rear differentials for more pulling power and control, high-capacity cooling system and reversing fan, highperformance hydraulics, a
roomy, quiet and cool operator station, and tilting cab for servicing. A new hydraulic system provides faster multifunctioning capability and greater lift capacity. There are four models. They range in power from the Cat 525D (151kW, 203 hp) to the Cat 555D (205kW, 275 hp). The Cat D Series skidders are equipped with the C7.1 ACERT™ engine. It delivers more power and more fuel economy while complying with both U.S. EPA Tier 4 Final and EU Stage IV emission standards. The D Series also offers the C7.1 ACERT engine, which is equivalent to U.S. EPA Tier 3 and EU Stage III emission standards. Caterpillar customers are supported by the industry’s largest network of dealers who will keep them up and running with parts availability, field services, state-of-the art diagnostic programs, remote monitoring, and more.
¢ A Cat 320D2 Forest Machine with a Cat HH44 DE harvester head
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Australian Forests & Timber News
April 2016
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AUSTimber 2016
Caterpillar to demonstrate forest machine simulator at AUSTimber
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ATER PILLAR WILL demonstrate its Cat® Simulators Forest Machine (FM) Log Loader Simulator System at AUSTimber 2016. The demonstration coincides with the launching of the Cat® 320D2 Forest Machine at the Australian timber industry trade event. Cat Simulators combine simulated worksite applications and conditions with realistic controls. A variety of training exercises designed to address each of the skills associated with operating actual machines are represented in different work environments. Cat Simulators provide hands-on learning in a safe and economical way to enhance traditional operator training programs. Experienced operators also can benefit from simulator training by refining skills to
increase production levels. The FM Log Loader Simulator System features the same joysticks found in the actual machine so operators can gain familiarization and understanding of the controls before moving and loading logs. The virtual technology worksite is set in a forest environment where users can learn the necessary applications used in forestry operations. An optional motion platform enables users to feel vibration and movement when the simulated machine is running during training exercises. The system records and reports each simulator session so users, instructors, and administrators can see the results. The FM Log Loader Simulator System teaches familiarity with controls, how to perform a machine walk-around, log handling, ¢ Cat Simulator Log Loader.
log sorting, loading and unloading a log trailer, shovel logging, and loading and off-loading the machine from a low-boy trailer. Exclusive to Cat Simulators is SimU Campus™, the software that measures, records and reports the results of all simulation sessions so instructors and users can track progress. Hundreds of benchmarks based on Caterpillar expert data are included in the system, with the operator’s performance measured against these benchmarks and outcomes recorded to a database. Cat Simulators deliver costeffective virtual training that provide numerous benefits. They allow trainees to master operating procedures in a safe environment, make the actual machine available for production, and reduce owning and operating costs. In addition to the Cat Simulator, the Caterpillar exhibit at AUSTimber 2016 will consist of about a dozen machines and attachments showcasing capabilities in harvesting hardwood and softwood and total forest industry solutions. The local Cat dealership William Adams will assist in making the show a success. The Cat 320D2 Forest Machine is a track machine available in a General Forestry version for use in site prep, forestry road building, and heavy-duty
¢ Learning can be fun ... simulator on site.
harvesting and processor applications; a Log Loader version is available for grapple (log loading), grapple saw, and light-duty processor applications. In addition to launching the Cat 320D2 Forest Machine, the company also will introduce the new Cat Advanced Ride Management (CARM) seat suspension system for the D Series wheel skidders, a revolutionary development in seat suspension technology that will provide unmatched comfort for operators and help improve the bottom line
for logging contractors. The CARM seat suspension system is a semi-active suspension that dampens vibration and minimizes end stop events in real time, a breakthrough technology. The suspension senses and adjusts its rate of dampening in response to changing ground conditions. CARM automatically applies higher dampening in rough ground conditions like those found in clear-cut applications and applies lower dampening under smoother conditions, such as well-kept skid trails.
Manufactured to endure the most extreme & demanding terrains
There’s a track for all terrains CLARK TRACKS Ltd, based in Dumfries, Scotland manufactures a range of superior forest machine tracks to suit all terrains and all machine types and are available through Australian agent B.A.Viccars. With more than a quarter of a century of experience, Clark Tracks has built a solid business based on durable products and friendly customer service. The range of tracks offered, goes from high flotation through to aggressive tracks designed for maximising grip climbing ability. At the high-flotation end of the range, Clark Tracks offers the TXL, TXCL and Flotation ranges of tracks. “The TXL is the most advanced high flotation tracks available, providing excellent soft ground capabilities, low soil compaction and disturbance and good traction, an area where other high flotation tracks get stuck,” says Brian Viccars. “At the other end of the track spectrum, for maximising traction, we offer our Grouzer track
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and two special variants; Climbing Special (CS) and Climbing-X (CX). These super-aggressive tracks assist machine to operate on steep and challenging sites,” he said. Clark Tracks also builds the ultimate allseason, multi-terrain range of tracks; Terra-85 and Terra-95. Terra-85 is suited to harvesters and forwarders up to 15t payload. Terra-95 is suited to larger harvesters and forwarders with 15t payloads or greater. Additionally, for Large Forwarders and 6 wheel skidders, Clark tracks offer the Forwarder-X (FX) tracks, a special variant of the Heavy Duty Terra-95 track. “All Clark Tracks are built in Scotland, using the best quality European steel and components to guarantee performance and long work life,” said Brian. Randalls Equipment will have Clark tracks fitted on a Ponsse Elephant King, and Hitachi will have them fitted on a John Deere 1270 eight wheeler at AUSTimber. Australian Forests & Timber News
Terra
Grouser
Rocky
Flotation
TXL
TXCL
Clark Tracks specialise in providing a wide range of forest machine tracks to suit numerous applications for the worldwide forestry market that we serve.
CLARK TRACKS high performance for maximum work life
www.clarktracks.com
April 2016
B.A. Viccars Pty. Ltd P. 61 (02) 4295 5881 Mobile: 0418 266 731 vchain@chainpro.com.au
Tasmania Chaffey’s Chains Mobile: 0428 140 466 admin@chaffeyschains.com.au
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AUSTimber 2016
Fire suppression and protection technology on display
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ECON INDUSTRIES Australia will have the latest fire suppression and fire protection products on display to show clients and visitors to the AUSTimber2016 expo. Fire technicians will be manning the stand to discuss the products on display as well as answer any questions you may have. Some of the products that will be on display include: • The new Checkfire 210 control system from Ansul which is now standard fitment on all Komastu forest equipment. • Fire extinguishers and firefighting equipment. • A range of AFFF suppression systems. • Brochures on different types of fire suppression systems Recon Industries Australia technicians will be on hand at the stand to assist with and discuss compliance with Australian standards and how to best maintain the fire suppression systems fitted to machinery. Recon Industries will also be giving away multitools to some lucky visitors. For more information please visit the Recon Industries Australia Stand.
¢ Peterson Chipper with fire suppression system fitted.
New series raises equipment to another Tier TIGERCAT IS now offering an FPT Tier 2 engine option for the 610E, 615E, 620E, 630E and 635E skidders, bringing the benefits of the E-series to Australia and New Zealand. The Tier 2 option uses the same proven Tigercat FPT N67 engine used for Tier 4 final markets with a simplified after-treatment system.
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Tigercat FPT engines are equipped with a second generation common rail fuel injection system, allowing them to achieve top performance in terms of load response, maximum torque and top power with minimum fuel consumption. The N67 provides outstanding reliability, low fuel consumption and high performance.
All E-series skidders are equipped with a new air ride seat with automatic weight adjustment to improve operator comfort and ergonomics. The new seat provides extensive adjustments for forward/ back position, lumbar support and height. Integrated active climate control in the seat removes hot, humid air to cool the operator in
Australian Forests & Timber News
April 2016
summer. Seat heating keeps the operator warm in winter. Tigercat designed and built forestry-duty axles are equipped in all E-series skidders. This gives Tigercat maximum design control and allows for enhanced commonality of spare parts across different machine models.
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AUSTimber 2016
Chipping in to ensure a strong future $3 million expansion plans
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ASMANIAN-BASED Neville Smith Forest Products - Smartfibre is on the cusp of expansion, and it’s all being done to ensure the business is ready to capitalise on current and new markets. The NSFP group are long and established operators in the Australian timber industry. After selling their timber business to a listed entity in 2006 the Neville Smith family had a brief industry absence before seizing the opportunity to re-enter the industry in 2011. Since re-entering the industry the NSFP group have undertaken a number of significant acquisitions in the Tasmanian forest industry to re-establish themselves as one of the largest private operators. These include: • Acquisition and recommissioning the Mowbray drymill and hardwood distribution centre in July 2011 • Purchase of the Gunns hardwood business and inventory in December 2011 • Secured long term cat 2&3 hardwood log supply agreement and entered into a lease for the Southwood greenmill in July 2012 • Re-acquired Smartfibre wood chip business and export facility in December 2012 • Acquired Southwood sawmill from current owners in October 2015. NSFP were the original owners and operators of the Smartfibre Wood Chip business and built the existing mill (then known as Tasmanian Fibre) on a green field site at Bell Bay in 2002, starting with a small share of the market of around 100,000 GMT in the first year of export. “Our products initially were uncontrolled wood and progressed into products of FSC controlled Native PX and pine residue,” explained Smartfibre General Manager Danny Peet. Tasmanian Fibre progressed and in 2005 obtained FSC controlled wood accreditation. This lead to a major five year www.timberbiz.com.au
contract with a large Japanese customer. This contract was complemented with other export contracts and various spot sales. With sales averaging above 300,000 GMT the business experienced a period of financial strength and sustained growth, with a maximum output of 370,000 GMT shipped in 2008. “We also changed our name to Smartfibre for strategic marketing reasons,” Danny said. Since 2007 sales have been exclusively plantation wood. “This was a deliberate strategy to align the business model for Smartfibre with the maturing Tasmanian plantation estates and to ensure the business grew on a sustainable basis. “With the GFC in 2009 and the affect it had on the MIS schemes, including the loss of many plantation forest coupes, we were forced to revisit this strategy,” Danny said. December 2012 saw the NSFP Group purchase the business and assets of Smartfibre with the addition of supply and processing contracts and a continuation of exclusive plantation wood processing and export. “The export of FSC Certified native residues remains a fundamental link in a sustainable viable industry and we consider that now is an excellent time to return to the native wood chip export industry under FSC 100%. The processing and export of plantation wood chips will continue to be a fundamental part of our product mix. “Importantly, the processing of native timber will be in the form of an FSC-100% material product. Our FSC accreditation will not only open up new markets for native timber it also will not be in competition with existing Tasmanian producers. We are confident of creating a product that is sought after in the market that can be beneficial for both Tasmanian employment and the business’s growth,” Danny said. Which brings us to the expansion plans .... “To
Continued on page 24
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April 2016
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AUSTimber 2016
Chipping in to ensure a strong future Continued from page 23
enable Smartfibre to service these new markets and to capitalise on the growing availability of plantation timber (as MIS scheme plantations are released from legal entanglements) we have a project under way to expand production capacity and improve energy efficiency at our mill,” he said. This will be achieved primarily by: • increasing the production capacity of the existing chipping machinery via the installation of a larger and more powerful Precision 96” chipper • converting to an electrical fuel source to improve both energy efficiency and to provide a more consistent power torque; and • expanding the size of the current stockpile area for an extra 30,000GMT capacity. The productivity gains achieved will allow the existing business to expand production from around 300,000 GMT per annum up to its current operating permit level of
800,000 GMT per annum. Changes to the main plant infrastructure will significantly improve the utilisation of the existing site and capital investment. The upgraded chipper machinery (96” Precision Husky from Australian agent Jondod is scheduled to arrive soon) will increase production output by 33%. Diesel usage will decrease from 7,000 litres to 2,000 litres on average per week -- a reduction of 240,000 litres per annum. This will be replaced by renewable energy produced from the State’s hydro electrical system. The project is being managed internally by Danny in conjunction with contracted electrical and structural engineers. The existing mill already holds an operating permit for production volume of up to 800,000 GMT. This would ordinarily be the largest hurdle to overcome and positions the project for an immediate start. Planning is significantly advanced with the key
components at the following stages: Tas Networks has been engaged and approved the upgrade for supply of electricity t Tas Water has been engaged and inspected the water lines that need to be realigned t Council and the EPA have approved the upgrade and proposal. t Electrical planning is well under way with Pitt And Sherry engaged to price the electrical component. t Grant Mawer Engineering is engaged to prepare engineering drawings for the installation of the new chipper. t Chipper and electrical components have been ordered. The increased production will be primarily generated by the productivity gains at the Bell Bay site from the new equipment and expanded stockpile. “This will include purchase of land from Tasports to build a new stockpile and a second
chipper plant. This second stage is planned for 2017/18, adding further production and construction positions. “The total investment is likely to be in excess of $3m,” said Danny. “The growth generated by this project will also provide the catalyst for further industry investment by the shareholders of NSFP. The NSFP group have extensive plans for further investment beyond the Bell Bay site in a range of value-adding opportunities, including engineered wood products, pre-finished wood products and bio-mass energy production,” he said. The business has come a long way already. With just four workers making up the initial workforce this now climbs to 20 when shiploading is in progress and the prediction is that there will be 30 direct positions when the upgrade is complete. The initial machinery used was a “very old” Precision 84” chipper. In 2005 a new disc was purchased. “It was more robust than other
models and easier to set up and maintain,” Danny explained. The decision to upgrade to a 96”chipper, however, has been the aim from the outset ... “It was just a matter of timing and the need to increase production without compromising the current shift configuration. All of the plant was actually set for a 96” production volume, belts, screens etc. when the plant was first commissioned in 2003,” he added. And how does Danny see the industry future ... “We believe forestry is at the stage of getting the balance right with plantation and certified native wood, but there will also be the inevitable biofuel, engineered wood, log export and other variations to the uses of our resource as innovation continues in which woodchipping within the Forestry industry will always play a part. “We are confident that Neville Smith Forest Products and, in fact, the export of woodchips is sustainable for many more decades.”
Almost four decades of successful business ties MENTION THE name Precision Husky and you automatically think of Jondod ... the Australian agent for the world-leading brand. In fact, Jondod and Precision Husky Corporation have had an enduring relationship for almost four decades. Starting out in woodchipping, Precision has constantly met market demands with enthusiasm. Around eight years ago they took on Toro’s tubgrinding division. They re-named (Progrind), reengineered and added a number of new models to the already impressive range. The Progrind is a natural fit to their line of inwoods debarking and chipping equipment and with the Progrind’s patented double cut hammermill that virtually eliminates jamming it enhances Precision’s reputation for performance engineering. Jondod, in conjunction with Precision Husky, can furnish more than 70 products for the timber, chipping, logging and wood waste recycling industries around Australia. “We have supplied over 200 chipping operations over the last 36 years. We have an incredible history with Precision Husky who, in turn, have exceptional products 24
and highly experienced personnel. With a motto of “Whatever It Takes” Precision are world leaders in wastewood management,” says Andrew Cantrill of Jondod, which has organised Smartfibre’s new 96” chipper deal. Just a few of the technical aspects of the 96” chipper are: Chipper Size
96”
RPM of Disc
450
Number of knives
4 to 10
Approx. weight (lbs)
33,100
Thickness of Disc
57/8”
Production (Tons/Hr*)
250
Production average based on maximum number of knives and 3/4” chip.
Precision’s spout design with a flat bottom and canted side gives 25% more anvil contact with the log. This provides absolute control of the log, preventing slapping and wood turning. Both horizontal and vertical anvils give additional life with less maintenance. Both are hard surfaced with colmonoy which has a hardness of 62 to 65 on the Rockwell C scale.
¢ The 96” Precision Chipper is a big machine no matter which way you look at it.
Australian Forests & Timber News
April 2016
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AUSTimber 2016 Are you ready for AUSTimber 2016? We are all set for AUSTimber 2016 and will have the Finlease 1968 ZB Fairlane taking pride of place in our marquee out in the forest. It’s just our way of saying that good old-fashioned service still exists.
How is the finance landscape in the lead-up to AUSTimber 2016? By Mark O’Donoghue
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E HAVE been busy and rapidly expanding the number of clients we now assist for finance in the full supply chain from forestry and haulage, through to the mills. The timing of our entry into the industry as an alternate finance provider has been ideal, coinciding with increased industry activity. We have been delighted by the response from the industry in allowing us to provide some finance alternatives and this has resulted in a good number of new clients and the start of some wonderful long-term relationships Mark Sealy from our Tassie office has been particularly busy funding new contractors into this particularly improved market. The combination of Mark’s 30 years of experience in financing the timber industry and the use of basic financial modelling tools has not only assisted contractors in their negotiations with forest owners, it has been invaluable in securing finance on good commercial terms for contractors entering or reentering the market. With this industry having dedicated contracts, an ability to service debt needs to be focused on the forward workflows and not on past years trading performances (which is the way that many Financiers have historically viewed finance applications). We have had excellent success by clearly focusing on this very aspect.
Any advice to contractors in getting their finance right? From what we have seen in the field there are three areas worth commenting on:-
The hidden dangers of concentration risk Many business owners are blissfully unaware that financing equipment through their existing bank usually has that equipment debt “bootstrapped” to any other securities the bank may hold (such as properties and other owned assets within the business). This bootstrapping typically comes in two forms:1. Cross Collateralisation Clauses (which sees all debt with the bank secured by all security held by the bank) www.timberbiz.com.au
¢ Mark O’Donoghue is the founder and CEO of Finlease
2. General Security Agreements (GSA) which is the new term for the old Fixed and Floating Charges or Registered Equitable Mortgages (REM). Which means the bank owns all assets of the business under this GSA. Typically the banks do not go out of their way to tell business owners about these overarching securities, however, it is most often the reality and a simple company search will tell a business owner if a GSA is in place over their business. Finally, the sleeping dragon in this situation most often rears its head when a business looks to change banks and the outgoing bank insists upon all equipment finance being paid out and the penalties incurred on contracts which are early to midterm at that point. As an indication of those penalties, the cost to terminate a $1 million equipment loan which is one year into a five year transaction is typically in the order of $40,000. In a world where there are a dozen or so competitive banks and financiers keen to finance equipment in its own right without this bootstrapping, a company’s existing bank is probably the worst place to have their equipment debt. The existing bank does have a role to play in funding working capital such as overdrafts as well as property based requirements and under these circumstances, the bank having the benefit of property equity via mortgages over properties is completely relevant and commercially acceptable. The provision of a GSA to a bank
should only ever be granted by a business as a last resort as it is in effect the granting of a mortgage to the bank over the entire company.
Spreading the risk Many businesses spread their equipment debt across 3 or 4 financiers as this creates a stable platform of supportive lenders for future growth as well as creating competition between those financiers to ensure competitive structures and rates are provided. This can be done by the client or through the use of a capable finance broker. Remember, these lenders have no other asset as hard security other than the equipment they have financed.
The true effect of interest rates In this increasingly competitive environment where contractors are constantly squeezed on margins, any saving in expenses is beneficial. Based on a simple $1 million debt over a five year term, the following is worth noting:• At 5.5% the payments are $19,100 p/m • At 4.5% the payments are $18,645 p/m The difference of $455 p/m over the 60 month term is $27,300. To put this into perspective, where a business has a net profit margin of 5%, an additional $546,000 in turnover is required to offset this additional $27,300 cost, so attention to the cost of finance is always a worthwhile exercise.
Australian Forests & Timber News
April 2016
Dispelling the myths Refinancing existing equipment debts towards the latter part of the existing contracts (in the last 12 – 18 months) can be done through an increasing number of financiers. There are minimal penalties involved to do so at this later stage, the current interest rates would typically be around 2% less than the initial debt and the refinancing of those existing debts on long-term assets will usually substantially reduce the existing monthly commitments and in doing so free up cash flow which can cover in part the cost of additional equipment. Equipment finance can be written with payments monthly in arrears to allow a 30 day payment delay to assist cash flow. The cost differential between monthly in advance and a monthly in arrears is minuscule. Example on $1milion over 5 years:• Monthly in advance $18,573 p/m • Monthly in arrears $18,645 p/m Used equipment including private sales can easily be financed, saving businesses significant dollars on the cost of equipment. Care does need to be taken around ensuring clear title on private sale assets, including company searches on the vendor to ensure there is no dedicated debt on the asset or overarching GSA by their bank. A simple PPSR search will show up on any interests held on those assets being sold. Major refurbishments of existing plant can also be financed on a term equipment debt, no different to repowering the engines of an aircraft where the value of the aircraft is substantially increased through this process. 25
AUSTimber 2016
Take the Scania for trunk road traction Scania saves time and money for logging experts H&L Scheidl
H
& L Scheidl is a wellknown Mount Gambierbased livestock and logging contractor. Owner, Hans Scheidl has been running logging trucks for more than 45 years. He has recently switched to Scania V8-powered trucks to pull his new Elphinstone logging trailers through the loamy, boggy, crudelycut logging tracks and along the deserted, unsealed roads that link the forests to major highways. The Scania R 620 V8 trucks produce 3000 Nm of torque, are exceptionally good on fuel, and have been engineered to cope with working in the frozen forests of northern Scandinavia, so Australia’s milder climate poses them no problem. A typical load is 44.5 tonnes of logs for a 68-tonne gross combination mass. Scania V8 trucks are also well regarded for their comfortable cabs with excellent vision, as well as a unique hydraulic retarder auxiliary braking system. Hans says one of his drivers, Jim Smith, said he felt fresher getting out of the Scania after a shift than when he got in. “The Scanias have eliminated my downtime,” Hans says. “This is vital because this business is all about volume. “The engines and gearboxes are good and the servicing has been great. One of the trucks has already done 120,000 km. I need trucks that
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Scania will have a large display of trucks at AUStimber 2016, including new V8-powered 620 hp 6x4 prime movers destined for well-known logging companies, a single-trailer suited P-series day cab prime mover, ideal for split-log transport, and a unique, practical and flexible 4x4 CrewCab cab/chassis with seats for 5. Be sure to drop by the Scania stand to say hello. can work in the bush, and these work well there. They have given me no grief at all,” Hans says. “The Scanias have provided excellent traction in the muddy and slippery forest roads, thanks to their hub-reduction axles on 4-point air suspension. They are fitted with a 14-speed manual gearbox because they are easy to drive and the drivers like them,” he says. “We specified the new Scania 4100 Nm Retarder for the R 620s, which gives us plenty of braking performance. These are the first trucks in Australia with the new big retarder,” Hans says. At present Scheidl’s has three Scania R 620s working in the forests. They delivering logs either to the Mount Gambier mill or to customers in Portland or Colac. “The Scanias are the only trucks I am double-shifting at present,” Hans says. “They are good for this".
¢ Driver Jim Smith.
“The bottom line for us is that the Scanias deliver very high productivity,” Hans says. Scania’s Regional Sales Manager for South Australia, Alfons Reitsma, says Hans had a firm view of what he wanted in a new truck. “He wanted high productivity in terms of trip times, good tare weight, reliability, durability, and safety. High ground-clearance was also important. “We have a special logging truck specification that includes a strong 6x4 chassis, straight 9-tonne front axle as well as important safety features such as roll stability, ESP, EBS and built-in load scales, all of which help the drivers do their
Australian Forests & Timber News
April 2016
jobs better and in greater safety,” Alfons says. “We also fitted hub reduction axles for outstanding take-off traction, and we added Goodyear super single tyres for increased stability on the rough roads. “Scania’s logging specification vehicle is the ideal solution for forestry hauliers because when you combine the Scandinavian logging expertise, Scania’s legendary V8 power and a full-house of safety features, there really is nothing better to do the job. “Hans Scheidl’s experience proves that point,” Alfons says. Find out more by visiting www. scania.com.au
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YOU
SCANIA
HAVE PURPOSE BUILT POWER & RELIABILITY
With a heritage in logging that began in the snowy wastes of the frozen Arctic, Scania can deliver a purpose-built, V8-powered solution to your specific application. There is 3000 Nm of torque available at low revs, matched by low fuel consumption, so our R 620 V8 is the ideal solution for Australian forestry hauliers looking for power, durability and fuel.
So contact your local branch or authorised dealer to find out how a Scania Total Transport Solution can work for your business. VICTORIA
NEW SOUTH WALES Scania Prestons Tel: (02) 9825 7900
QUEENSLAND
Scania Richlands Tel: (07) 3712 8500
WESTERN AUSTRALIA
Scania Dandenong Tel: (03) 9217 3600
Scania Newcastle Tel: (02) 9825 7940
Scania Pinkenba Tel: (07) 3712 7900
Scania Bunbury Tel: (08) 9724 6200
Scania Laverton Tel: (03) 9369 8666
K&J Trucks, Coffs Harbour Tel: (02) 6652 7218
Spann’s Trucks, Toowoomba Tel: (07) 4634 4400
NJ’s of Wagga Tel: (02) 6971 7214
RSC Diesels, Cairns Tel: (07) 4054 5440
Scania Campbellfield Tel: (03) 9217 3300
SOUTH AUSTRALIA Scania Wingfield Tel: (08) 8406 0200
Scania Kewdale Tel: (08) 9360 8500
AUSTimber 2016
Onetrak and Tigercat introduce new products to the Australian market
O
NETRAK IN, conjunction with Tigercat, will exhibit at AUSTimber 2016. Representatives from Tigercat’s factory in Canada along with local Australian representatives will join the Onetrak team in presenting the Tigercat brand and its expanded product range during the event. The most recent product releases include the brand new E-series skidders powered by the Tigercat FTP N67 Tier 2 engine. Two E-series skidders (the 615E @ 168KW or 225HP and the 630E @ 198KW or 266HP) can be seen live in action during the event and a separate Tigercat FTP N67 Tier 2 engine will be shown as a static display. The Tigercat 615E is a quick, compact six-wheel drive skidder best suited to extremely soft or steep terrain, selective felling, oversized logs and other challenging applications. The 630E is a high production fourwheel drive skidder suited to the toughest jobs, the most demanding terrain, heavy loads and aroundthe-clock operations. On the Forwarder front, Tigercat’s new low-wide bunk system is unique to the industry and will be showcased fitted on the new C-series 1075 forwarder also powered by the Tigercat FTP N67 Tier 2 engine @ 230KW or 308HP. The bunks are angled to reduce overall gate height and to eliminate the need for a vertical sliding gate. The low-wide bunk system allows easier crane operation and decreases loading and unloading cycle times. In combination with the new series of hooked cranes, the low-wide bunk significantly reduces the chance of crane contact with the gate or bunk stakes. The working envelope of the crane is expanded for reduced machine travel and improved productivity. Operator visibility and ergonomics are enhanced. The operator enjoys a clear sight line to the top of the load, increasing log placement accuracy and decreasing cycle times. In addition, the grapple stays within the operator’s view through the entire loading cycle for reduced strain. Another new feature of this C-series forwarder, will be the inbuilt telematics system pushing real-time data to a display console located in the site marquee. A Tigercat M726E mulcher will be part of the static display at AUSTimber 2016. The M726E achieves the highest machine availability rates for excellent productivity in a variety of high duty cycle land clearing
28
applications. An optional multifunction hydraulic system and quick attach boom adapter allows the machine to be quickly and easily switched from a mulcher to a feller buncher for increased versatility and the ability to fell large or merchantable timber. Onetrak will also showcase a selection of its range of other forestry products such as a Dressta TD14M dozer with forestry specifications. From the Hyundai forestry line, various excavator base conversions from loading machines to harvesters will be on display. Various Rotobec grapples for forestry applications will also be presented on site including the release of the new fixed wrist pulpwood grapple. Following is the full list of live demonstration and static display machines and attachments available on the Onetrak and Tigercat site at AUSTimber this year; • TIGERCAT L830C feller buncher with 5185 fixed felling saw • TIGERCAT LH855C harvester fitted with the Waratah HTH624C harvesting head • TIGERCAT 1075C forwarder with Tier 2 Tigercat/FPT engine and Tigercat telematics system • TIGERCAT 855C feller buncher fitted with the class leading 2000 series bunching shear • TIGERCAT H845C harvester fitted with the Logmax 7000 XT • TIGERCAT 615E skidder with Tier 2 Tigercat/FPT engine • TIGERCAT 630E skidder with Tier 2 Tigercat/FPT engine • TIGERCAT M726E mulcher with separate 2000 series shear head • TIGERCAT FPT N67 Tier 2 engine on display • HYUNDAI R210LC-9 fitted with Waratah HTH616C • HYUNDAI R210LC-9 High Chassis fitted with Satco 420 directional felling head • HYUNDAI R250LC-9 High Chassis fitted with hardwood loading package • DRESSTA TD14M dozer with PAT blade, RMR and bush package
10 year anniversary At the same time as AUSTimber, Onetrak will be celebrating its 10 year anniversary and in conjunction with Tigercat has
invited customers and industry representatives to an open night at the new state-of-the-art facility located at 1-5 Marlo Place at Hallam, Victoria. The event will take place on Friday evening of the 15th of April at 7pm for a 7:30pm start.
Australian Forests & Timber News
April 2016
If you are interested in attending the event please call Mel Gavin on (03) 87 885555 or contact your local Onetrak representative who will gladly arrange a spot for you at this landmark occasion.
www.timberbiz.com.au
BUSHFIRE
Land management issues in fire areas should be probed: IFA
T
HE INSTITUTE of Foresters of Australia has prepared a submission to the Special Inquiry headed by Euan Ferguson into the January 2016 Waroona bushfire in south-west Western Australia. The submission argues that the Inquiry should pay particular attention to land management issues that may have contributed to the scale, intensity and difficulty in controlling the Waroona bushfire. These issues include the impact of bauxite mining in State forest on access and the ability to undertake effective fuel management, as well as inadequate management of fuels across all land tenures including remnant vegetation on the Swan coastal plain. The submission also stresses that plantations and forests are valuable State assets that should be given priority during bushfire suppression operations. Ferguson is a forester and fire emergency manager with 39 years experience in fire and fuels risk management, community engagement and emergency management leadership. Meanwhile, salvage operations have started in the Myalup region
to recover as much saleable timber as possible, following recent bushfires that damaged State-owned plantations. Forestry Minister Mia Davies said the damage from the Waroona bushfire, which swept through more than 3,300 hectares of pine trees in McLarty, Myalup, Bombara and Eckersley plantations in the Myalup coast region, would cost about $8 million to replace. In addition, more than 150ha of pine trees in the Esperance region were damaged or destroyed. “The loss will have an impact given the trees form the basis of future feedstock for the pine industry in the Bunbury region. “The Forest Products Commission estimates the timber industry will lose up to 500,000 cubic metres in future resource from these bushfires or the equivalent to one year’s supply to major log processors. “We are well under way with our salvage operations and what can be saved will be supplied firstly to local mills and then possibly overseas.” In response to the bushfires, the commission expects to replant 600ha of State-owned plantations this year,
with the balance being replanted over the next two winters. The Minister said that salvage and regeneration of the young karri forests burnt in the Northcliffe fires had also started. About 5,000 hectares of young karri regrowth within State forest boundaries was severely burnt in
the 2015 Northcliffe fires. Of this area, 3,000ha has been assessed as unlikely to recover without any management intervention. A 100ha area has been identified for a trial to investigate salvage and regeneration methods and ways to minimise the cost of the regeneration process.
¢ Aerial shot of the impacted Waroona area.
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¢ Salvage work in progress following the Waroona fires.
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Australian Forests & Timber News
April 2016
29
AUSTRALIAN FOREST GROWERS
AFG Tree Farmer of the Year Award
S
INCE THE early 1980s, Australian Forest Growers has been conducting the prestigious annual award to honour and acknowledge individuals, who by their own efforts and example, have made significant contributions to private commercial tree growing in Australia. The award honours and acknowledges landowners or private forest managers who, by their personal efforts, have demonstrably managed to establish or maintain areas of forest on their property for the purposes of sustainable commerce in the products attainable from trees, protection for either catchments or crops, or for reasons of preservation of biodiversity or a particular forest ecosystem. The competition relies on State nominations to be submitted each year. States are then asked to nominate their selected candidate (after subsequent judging) to compete in the biennial National Competition with the winner announced at the conference.
Essential criteria • Excellence in farm planning and farm forestry • Good land management, in that the whole farm is either being used or there is a demonstration that a whole farm plan has been developed and that the part development is in line with such a plan • Innovation in any sector of private forestry – natural forests, plantations, agro-forestry, etc • Leadership in the community in these developments
• Wide application of the principles adopted • Integration of forestry with other farm developments
Nominations • Nominations may be received either from: • The applicant • For the applicant by another person • An AFG branch The award will not be limited by previous awards so that a landowner may enter the award several times.
Eligibility • Entrants must own the property/forest estate • A lessee may be eligible if the application is countersigned by the landowner that the work done is due to his or her efforts • A previous winner of an AFG award may apply • An entrant need not necessarily be a member of AFG • The winner of the State competition is an automatic entrant in the National competition.
Judging • Judging in the first instance will be based on the written submission in the form provided with field inspections carried out if considered
appropriate. • Judging will be conducted by a panel consisting of appropriate representatives of branches, sponsors or other appropriate people. • There will not be a tie in any competition. • Only the winner will be announced. Second or third place getters will not be announced although a “Special Mention” may be awarded for an exceptional submission.
State presentations State presentations will be at an event organised by a Branch in the State.
National presentations National finalists will need to prepare a Power Point or video presentation for use at the AFG National Conference, on the evening of 25 October 2016. PowerPoint or video presentations will be given during the course of the Conference dinner to showcase each State winner. Applications are now open for State Tree Farmer of the Year and close on 30 June. State award winners will be announced on 30 July. The National award winner will be selected on 30 September and will be announced at the AFG Biennial National Conference on 25 October.
State Co-ordinators State
Name
WA
Richard Moore
richard.w.moore2@gmail.com
NSW/ACT Tim Gillespie-Jones
tim _ gj@hotmail.com
VIC
Gary Featherston
gary@foreststrategy.com.au
TAS
Arthur Lyons
Arthur.Lyons@pft.tas.gov.au
SA
Jan Newport
janette.newport@bigpond.com
QLD
Carol Neal
carolneal@bordernet.com.au
Communication is the key for private and farm foresters THE AUSTRALIAN Forest Growers Biennial National Conference in Launceston (2326 October) will challenge speakers and delegates from all parts of the private forest grower enterprise to show how and why private and farm forests provide a diverse range of social, economic and environmental values to be shared, managed and enjoyed by local and regional communities in Australia and elsewhere. The conference theme is ‘Make the Right Choice’. Communication is the principal objective of the three-day conference program consisting of up to 40 ‘face-toface’ speakers and presenters. Comprehensive field tours and social functions will provide members and delegates with an unrivalled opportunity to meet one another, the speakers, industry representatives, 30
researchers and trade exhibitors to share their ‘tree growing’ knowledge and experience and to learn about latest practical and technical developments in silviculture, processing and marketing. The following four conference streams have been identified to showcase up-to-date knowledge, industry, research and innovation in Australia: A. I nvestment Rationale (Why invest in forestry?)
AFG Conference organisers invite you to deliver a paper and/or poster presentation at the conference, via the first step of submitting a Draft Abstract to be received electronically by 31 March 2016.
B. Sustainability and Environment C. Forest Growth and Productivity D. Research, Innovation and Commercialisation The Conference Organising Committee (COC) invites papers and poster presentations from a broad range of interest, background
and expertise. The program is designed to include personal grower experiences and case studies of an anecdotal and practical nature; the presentation and discussion of industrial, social, silvicultural and environmental
Australian Forests & Timber News
April 2016
issues relating to the science and sustainability of private and farm forestry; through to scholarly and philosophical arguments about policy, planning and marketing in a rapidly evolving economic and social environment. www.timberbiz.com.au
INGENUITY
Australian ingenuity helps nab timber thieves in US
D
NA TESTING of wood from high-value big leaf maple trees has led to the landmark prosecution of four timber thieves in the United States ... with technical help from Australia! Researchers at the University of Adelaide were approached in 2012 by officers from the US Forest Service following the felling and theft of big leaf maples from the Gifford Pinchot National Forest in Washington State.
Four defendants charged with the theft recently pleaded guilty in a case that marks the first time the US government has prosecuted for illegal interstate trade of wood products under the Lacey Act. The Lacey Act is an American wildlife protection law that was amended in 2008 to include plants, making it illegal to trade in illegally sourced wood products. University of Adelaide Research Fellow Dr Eleanor Dormontt, who
manages the university’s timber tracking activities, said the university became involved when a US Forest Service agent read an article in local trade magazine Timber West about the work of Professor Andrew Lowe – a world leader in using DNA methods to identify timber – and his team at the University of Adelaide. “He took the initiative to give Professor Lowe a call here in Adelaide and from there we built a joint project bringing in various other parties that could bring expertise and finance to make it a reality,” Dr Dormontt said. DNA taken from big leaf maple stumps in the Gifford Pinchot National Forest were matched with wood samples seized from the mill of the alleged thieves. The wood samples were sent for testing at the university in South Australia. Researchers from the university’s Environment Institute developed DNA markers for the big leaf maple population. They joined the US Forest Service and timber-tracking specialists Double Helix Tracking Technologies, with help from World Resources Institute, to develop the first DNA profiling reference database for the species. It’s the only one of its kind for trees that has been validated for use in court proceedings. “This project has been a fantastic team effort here at Adelaide and we are all really proud that our work
has helped secure such a landmark conviction,” Dr Dormontt said. The big leaf maple is the largest of all maple trees and possesses a high-value ornamental wood used for making musical instruments such as violins, guitars and piano frames. Distortions in maple wood grain can create patterns prized by woodworkers. When milled, a single log of maple can be used to make products worth more than USD $100,000. Dr Dormontt said the US Forest Service, which estimates $1 billion worth of timber a year is stolen from private and public land in the United States alone, is keen to work with the university on future cases. Professor Lowe, the University of Adelaide’s Chair of Conservation Biology and Chief Scientific Officer of Double Helix, said the technology could be used as a certification tool to verify whether big leaf maple had been legally harvested. “Our database indicates that, with these markers, the likelihood of two trees having the same DNA profile is as low as one in 428 sextillion; there are thought to be approximately 70 sextillion stars in the universe,” Prof Lowe said. The DNA markers that were developed for this study have been peer-reviewed and were recently published in the journal Conservation Genetic Resources.
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¢ The crime scene.
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Australian Forests & Timber News
April 2016
31
INTERNATIONAL DAY OF FORESTS
Growing a sustainable and innovative forestry sector
C
elebrating the UN International Day of Forests, Assistant Minister for Agriculture and Water Resources, Senator Anne Ruston, acknowledged the vital role forests play in sustaining communities, economies and the environment in Australia and around the world. Minister Ruston said the World Forestry Day was the perfect opportunity to acknowledge the importance of our forests and sustainable forest management. “About 1.6 billion people around the world rely on forests for their livelihoods—and the Coalition Government certainly recognises the significance of forestry industries to many regional communities across Australia,” Minister Ruston said. “Forestry makes such a significant contribution to our economy—and arguably the greatest economic, social and environmental benefit comes from ensuring that we are managing our forests sustainably. “That is why we are putting in place sensible policies and measures to support a strong forestry industry. I’m proud that we’re maintaining our long-term support for Regional Forest Agreements, implementing bushfire mitigation measures, and combating illegal logging. “The Coalition Government has a key focus on fostering innovation across a multitude of different industries, including forestry. There is huge support for coordinated
research and development through Forest and Wood Products Australia (FWPA), as indicated by our new $4.6 million in new funding to assist with eligible research development. “We are committed to continuing our philosophy of informed and consultative decision-making, and through the Forest Industry Advisory Council we are making sure that the forestry and wood processing industries are engaged in the policy-making process. “Like any industry, there are challenges, but I am bullish about the future— knowing what an innovative industry we have here in Australia. “This Coalition Government is committed to working with industry, and putting the right policies in place to support continued growth on a sustainable footing,” the Senator said. Australian Forest Products Association CEO Ross Hampton said forest products were the green and sustainable resource par excellence, but only if they came from the places that renew, regenerate and replant after they harvest. “Every year some 60 million trees are replanted and resown in Australia. The environmental benefits continue as the wood waste and biomass, which are produced as a normal byproduct of sustainable forest management practices, can be used for renewable energy.” Mr Hampton said, “Contributing $21 billion to the national economy and
¢ Steve Whiteley (Chief Executive Office Forestry Tasmania) and Rudolph van Rensburgh (Director, Margules Groome) at the AFS International Day of Forests dinner in Melbourne.
32
with around 120,000 direct jobs across the full value chain, Australian forest, wood and paper industries are a vital part of the rural and regional communities they underpin right across the country,” he said. “Sustainably harvested and replanted forests and plantations are a natural way of managing carbon, and Australia’s industry is managed to world class standards. With increasing international demand for sustainably sourced fibre and related forest products, Australia is well placed to become a global leader. AFPA will be looking to all sides of politics in this federal election year for the comprehensive suite of policy settings which will help secure this future,” said Mr Hampton. Forestry Corporation of NSW’s CEO Nick Roberts said State forests continued to play many vital and varied roles in local communities a century since the first formal forestry legislation was passed in Australia. “This year’s International Day of Forests is significant for the Forestry Corporation of NSW, as it falls 100 years after the Forestry Act 1916 first established us as the then NSW Forestry Commission,” Mr Roberts said. “We were established with the objective to meet the community’s ongoing demand for timber while maintaining healthy and productive forests over the long term and a century on, more than 500 thriving State forests throughout NSW are
¢ Ben Gunneberg, CEO and Secretary General, PEFC, and Senator Anne Ruston, Assistant Minister for Agriculture and Water at the AFS International Day of Forests dinner in Melbourne.
testament to how we have achieved that balance. “Today, we manage over two million hectares of native forests and plantations that support thousands of Australian jobs in timber production and underpin an industry that contributes $2.4 billion to the economy annually. Equally importantly, these forests also provide many environmental values that the corporation protects for the benefit of the community,” Mr Roberts said. “We welcome more than three million campers, bushwalkers, trail bike riders, four wheel drivers, horse riders and mountain bikers to forests throughout the State every year. “Our production forests have been harvested and regenerated many times since 1916 and the fact they continue to thrive is testament to the sustainable forest management practices that have been employed over
¢ S uzette Weeding (General Manager Forest Management, Forestry Tasmania) and Wayne Tibbits (Program Manager Forestry, global-mark) at the AFS International Day of Forests dinner in Melbourne.
Australian Forests & Timber News
April 2016
the past century. Because we continue to manage these forests sustainably, they will carry on regenerating and supplying renewable timber 100 years from now and beyond.” VicForests provided each student at Gladysdale primary school with a eucalypt seedling in celebration of International Day of Forests and to teach them about sustainable forest management. “Forestry is a vibrant and important component to local economies in regional Victoria. There is a great sense of pride among timber communities and many industry workers are fifth or sixth generation in their family,” said VicForests Regional Engagement Manager, Liz Langford. “We gave each child a seedling of their own to nurture and grow to teach them about the forestry cycle of harvesting, regrowing and selling timber products.” Ms Langford said that VicForests regrows all forests that it harvests, planting thousands of trees each year. “VicForests has a store of around three billion seeds and our staff collect around 1,500 kilos of seeds every year so we are able to regrow all the same species of plants. “In addition to the environmental benefits of sustainable forests, they also produce beautiful, useful and recyclable materials we all use or appreciate in our daily lives,” she said. www.timberbiz.com.au
BIO
New RFCS service providers to help farmers, fishers, foresters and rural small businesses
M
INISTER FOR Agriculture and Water Resources, Barnaby Joyce, has announced the service providers who will deliver Rural Financial Counselling Services (RFCS) to regional communities from 1 April this year. Minister Joyce said the 12 service providers will continue to provide the same high quality, valued service to rural and regional Australia that the RFCS is known for. “As a bush accountant myself, I know full-well the challenges of managing farm finances, and the pressures that can bring,” the Minister said. “The $47 million (GST exclusive) for RFCS from April 2016 to June 2019 demonstrates the Australian Government’s commitment to this important service. “Following a merit-based competitive application process, I am pleased to announce the successful organisations that will deliver rural financial counselling services to clients across the country. “RFCS’s national footprint will mean farmers, fishers, forest growers and harvesters, and rural small businesses will continue to be
able to access a provider that knows their region and the issues they face,” said the Minister. “Following a comprehensive review of the RFCS undertaken by the National Rural Advisory Council, the Australian and state governments have agreed to consolidate 14 regions into 12 to ensure funds are being spent most cost effectively to deliver the same or higher level of service to farmers across the country. “The Australian Government is providing extra transitional funding to regions most affected by the boundary changes, to make sure that services to clients continue smoothly. “In addition to farmers, fishing enterprises and small related business that are in financial hardship being eligible, forest growers and harvesters will now also be able to take advantage of the service. “The RFCS has been providing an important service to farmers and rural communities for almost 30 years—and we are committed to seeing the good work of the RFCS continue strongly into the future.”
The successful applicants by region are:
Rural Business Support Service Incorporated South Australia Northern Territory Rural Business Tasmania Inc.
Tasmania
Sunraysia Rural Counselling Serv Inc.
North-west Victoria
Goulburn Murray Hume AgCare Limited
North-east Victoria
Rural Financial Counselling Service Victoria Gippsland Inc.
Eastern Victoria
Rural Financial Counselling Service Victoria Wimmera South West Inc.
Western Victoria
Richmond Valley Business & Rural Financial Counselling Services Inc
Northern NSW
Rural Financial Counselling Service NSW Southern Region Incorporated
Southern NSW
Rural Financial Counselling Service NSW Central West Incorporated
Central NSW
Central Western Queensland Remote Area Planning and Development Board
Northern Qld
Rural Solutions Queensland Inc.
Southern Qld
Facts versus emotion in Tasmanian biomass debate
THE QUALITY of public discourse about the possibility of Tasmania building a biomass fuelled electricity plant needs to be lifted. Rob de Fégely, National President of the Institute of Foresters of Australia, asks that people consider facts not emotive argument when considering the benefits, or otherwise, of a biomass/electricity plant. “Wood biomass is potentially a renewable energy source that can reduce greenhouse gas emissions when used to replace fossil fuel energy. However, professional foresters understand that there is community concern about the potential impacts of large-scale use of wood for bioenergy on other forest values such as biodiversity and reluctance in some quarters to accept energy generated from wood as genuinely renewable. “It is undeniable that wood burning does release CO2 into the atmosphere from where it was originally absorbed but the international community, and indeed the United Nations, recognises that use of bioenergy does not make a net contribution to the CO2 in the atmosphere, as long as forests are not being cleared. www.timberbiz.com.au
The United Nations Food and Agriculture Organization states: “Wood energy is as important as all other renewable energy sources altogether (hydro, geothermal, wastes, biogas, solar and liquid biofuels)” But it recognizes that it must be from, “Wood arising from sustainably managed resources”.1 “The Institute of Foresters of Australia supports the use of wood from both natural and planted forests for biomass energy provided that forests are sustainably managed, and harvested areas are regenerated or replanted to ensure that forest greenhouse gas balances are maintained over the long term. 2 “Resources Minister Paul Harriss (now retired) was right in advocating a local biomass energy industry which is cleaner and greener than importing energy from Victoria’s brown coal fired power generators,” said Mr de Fégely. 1
Western Australia
Primary Production Services Inc.
http://www.fao.org/forestry/energy/en/
h t t p: // f o r e s t r y. o r g . a u / p d f / p d f p u b l i c / p o l i c i e s / S t a t e m e n t - v 8 -1WoodforBioenergy.pdf
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Cant & Peavey Hooks Logrite Cant & Peavey hooks Light but very strong Made in USA 42” - $245, 60” - $300. Log stand to suit - $85
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Spencer Logging Tapes Clinometers/Height Meters Tough US made logging tapes 15m - $110, 25m - $130 30m + diameter - $154
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Australian Forests & Timber News
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FIREWOOD MILLS
For Information, please, call 0419-536 804 or email your postal address to info@firewoodmills.com.au
Forest Equipment Specialist
Madill 2850C
$198,000.00 inc. GST
Tanguay TF975
$99,000.00 inc. GST
New model Easy50 available now!
Different sizes of mills with optional feeding table and drum cleaner. Tractor, Diesel Power Pack or Electric Power Pack driven models.
Tigercat 635D Skidder $357,500 inc. GST
Valmet 445EXL
$192,500.00 inc. GST
John Deere 848H Skidder (NSW)
Timberking TK722A
$176,000 inc. GST
$150,000 inc. GST
Tigercat L830C
Komatsu 430LXT
$242,000.00 inc. GST
$528,000.00 inc. GST
Valmet 425EX + Waratah HTH622B
Rosin CF850 Felling Head
$137,500 inc. GST
$55,000 inc. GST
BUNCHING GRAPPLES
If you are looking for a heavy-duty grapple that will sort, bunch and load all day, every day, then you need a Rotobec. Onetrak offers the complete range of Rotobec Bunching Grapples, Heavy-Duty Log Grapples and Multi-Stem Grapple Saws. Give us a call for more information.
1300 727 520
www.onetrak.com.au
EXPRESSIONS OF INTEREST We are seeking expressions of interest for the removal [harvest of wood] of approximately 2,100 Walnut trees on our property in the Mildura region. Trees are generally 8-9 years old & in sound condition – they are being cleared due the continued expansion of our grape vine interests.
For further information please contact Paul: MOB: 0419 331733 or EMAIL: pderrico@ncf.net .au
- CLEARANCE SALE - Commences April 11 -
The yard will be open from 8am till 4pm at 113 Mill Lane, Rosedale (25 minutes from Traralgon) and if you’re in the region for AUSTimber come visit us! Machinery available • 890.2 Valmet Forwarder 21000 hours. Engine is only 3000hrs old. • D7G CAT Dozer. Open cabin, Scrub guarded, 14 foot Angled blade, Tree pusher and Rake blade. • 10,000 liter above ground steel storage tank. • CAT 325B Quick Hitch Assembly. • 921 Valmet Harvester 28500 hours with 370 head. Comes with a spare parts unit. • 965 Valmet Harvester head complete and spare parts. • 620 Warath Head with spare parts (less head computer). • PC220-6 Komatsu with a 622 Warath 21100 Hours set up for Hardwood. Warath Forestry guarding. • 622 Warath Thumbnail Pine rollers. • 370 Valmet Thumbnail Pine Rollers (rubber Inserts as new). • 630 Timberpro outer boom (Feller Buncher). • 892 Crane Assembly. • 1710 John Deere Forwarder Main Boom and Bolster. • 890.3 Komatsu King post and Slew rack. Damage to top of King post. • 911 Valmet Harvester Black/Red Bogie tracks as NEW. • 85-35 Kockums Bogie Tracks. • 820 Timbco Diff parts. • 630c TigerCat Hydro stat pump. • 445 Timbco Cab tilt cylinder; Lift Ram cylinder barrel and Harvester Boom Set to suit Waratah. • 425 Timbco slew motor parts. • 980 Rosin Valve Bank Assembly and spare Rams. • 890.2 Valmet Forwarder Engine Tier 2 with a damaged crank (not compete). • 2x HD36 Cranab grapples. • 3X Hultons .42 Grapples and Parts. • Heavy Duty Disc plough for Dozer. • Assorted Hyd cylinders, Feed motors and Rotators. • Assorted Diesel Fuel Tanks for in Field. • 5 Retractable Hose Reels to suit service vehicle. • Timbco 820 Forwarder with 22,500 hours. Engine replaced @16,000 hours. • CAT 325 Shovel/Loader with SATCO 848 grapple with 21,500 hours. • Workshop Manuals. Valmet; OSA; Timberjack; Kockums; Rosin; Timberline Trucking • Elphinstone winches • Bulbar from a T401 Classic • Range of Cab guards • 1898 Isuzu FSR 500 Tray
Contact: 03 51992768 and ask for Terry. All equipment is used. 133 Mill Lane, Rosedale. 3847
Australian Forests & Timber
Classifieds
Sell your used equipment, advertise your tender, offer your real estate or find your next employee. For rates and deadlines call Michael (03) 9888 4834 or email: m.dolphin@ryanmediapl.com.au
In PRINT & ONLINE 34
Australian Forests & Timber News
April 2016
www.timberbiz.com.au
Classifieds
Sell your used equipment, advertise your tender, offer your real estate or find your next employee. For rates and deadlines call Michael Dolphin on (03) 9888 4834 or email: m.dolphin@ryanmediapl.com.au
CLEARANCE
Milling & Processing Machinery Wolfenden Twin Circular Resaw
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COMPLETE SAWMILL
If you have a news tip call John Hudswell on 08 8369 9512 or email j.hudswell@ryanmediapl.com.au
$10,000+GST
Equipment available
Anthon 1.8m wide belt sander
Very heavy duty, high production machine. $15,000+GST
Loser - Dowell cut off machine x 2
$3,500+GST Each
No. 220
Loser - Dowell rod sander
$4,000+GST
4 Tonne Side loader forklift Perkins Diesel
$9,000+GST
CONTRACTOR REQUIRED Pilliga forest 11,000 m3 Forestry Corp guarantee supply Log, snig, haul to mill at Baradine Contact:
Tilt Hoist pack destripper
with multi Bundle infeed and strip conveyor very good unit. $32,000+GST
Rhinbold offcut chipper Very good condition.
Mick Paul – 0409 928 410 / mick@austwood.com
Subscription is free and easy! Visit www.timberbiz.com.au to sign up today.
- Chipper System - Over Head Sawdust Bins Approx 30m3 each - Kiln driers electric and gas assist 35m3 & 45m3 - Frame & truss operation - Weining Powermat 2000 - Optidocker and End matcher - Picket machine - Racking frames
CONTACT :
PATRICK 0438 420075 OR (02) 67420403 MICHAEL 0409 928410
Austral Timber Group
Distributed each Thursday, Daily Timber News offers a snapshot of forest and timber news, research and marketing content gleaned from Australian and international media sources.
- Log Deck - Log Docker - Woodchipper - De Barker - Twin Edger, cabin & Log Deck - Gibson Bench - Grey Bench - Two Saw Edger - Gibson End Trimming
Huge inventory of smaller items! ALL EQUIPMENT OFFERED AS IS WHERE IS BASIS!
$16,000+GST
Contact: Ken Baker 0438 643 992 or ken.baker@ubteam.com
FOR SALE
WELL MAINTAINED AND OPERATIONAL – LOCATED IN GUNNEDAH. GUNNEDAH TIMBERS PTY LTD HAS NOW COMPLETED ALL PRODUCTION ON-SITE DUE TO LACK OF LOG SUPPLY.
BUSINESS FOR SALE
• Large existing customer base, specialising in retail/ trade treated pine posts, poles and sawn timber. • The business is ideally located in a high visibility site on the South Gippsland Highway, two minutes from the Korumburra CBD. • The site is 5 acres of land which includes quality offices and showrooms, shedding that house numerous timber machining equipment, large area of covered timber racks, timber treatment shed with 64 ft x 4 ft diameter treatment cylinder, Volvo loader and Kamatso folk lift. • There is huge potential for further growth to expand this long time established and well respected business. • Price $650,000 + stock
For information or a private viewing please email -
sales@albertontimber.com.au, call John on 0429 832 437, or Luke on 0429 832 434
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www.timberbiz.com.au
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Australian Forests & Timber News
April 2016
35
NEXT BIG STEP
NEW ADVANTAGES WITH KOMATSU Welcome
to the Komatsu AUSTimber Sites - Softwood/Marquee - Bluegum - Chipping - Fowarder Competition
KOMATSU FOREST’S 25TH ANNIVERSARY IN AUSTRALIA Introducing
Komatsu
Come and visit our sites to: • Catch up with the team that has consistently been serving you for many years • See our great new products that will help meet your future demands • Watch the Komatsu Forwarder Competition
THANKS FOR COMING
www.komatsuforest.com.au