South Island May 2012 Newsletter (2) c292b3fe
BLAKELY PACIFIC LIMITED SOUTH ISLAND FOREST NEWS Issue 13 October 2011
Latest Blakely Pacific News Staff Changes
You will hear a new voice on the phone at the Timaru Office next time you need to call. This new voice is Deb Booth who we welcome to our team. Many of you will know now that Jane Carrodus finished on the 16 th March 2012 but carried on for a few more weeks to help train Deb Booth into the her new role as South Island Office Administrator. Jane worked 12 years for Blakely Pacific and was a big part of the transition team that helped develop our log production accounting system when Blakely Pacific took ownership of the Herbert and Geraldine Forests back in 2000. It is interesting to point out in 2000-2001 we produced only 80,000 m3 of logs, yet last year (2011) the South Island operation produced/handled 207,000 m3 of logs. This was a combination of our own forest harvesting production and private forest (woodlots).
Markets: Andrew Cocking So far 2012 has been a log market that is very much steady, without too much excitement. No real signs of great peaks as in 2011, However neither is there a threat of any great price crashes like the one that occurred in October 2011. As they say what goes up must come down yet the log prices did rebound quickly in Dec-Jan to more sustainable levels of where production and markets can operate, even more so where forests are located closer to ports or mills. During the unsettled horizon that developed last Oct 2011 I took the opportunity in Nov to visit the Chinese log market with our log agents TPT Ltd. It was an opportunity to visit the market in a back spin and help reinforce the commercial message that NZ forest owners will leave their forest standing than continuing to cut our forests if prices did not rebound quickly. What was occurring was a inventory sell down (like a NZ boxing day sale) not a new benchmark setting phase in log prices. I met a lot of established log wholesalers in China who had been burnt financially by the massive price drop. It told me that these guys need stable prices just like we do. The CFR log price for A grade dropped from US $ 160 to $ 145 then to $ 110 in a matter of 4 weeks last October. The CFR price for A grade is now back to US $ 126 - $ 130. Freight has bounced up also since January and the NZ exchange rate continues to hamper NZ $ returns. These fundamentals are always a strong factor in determining CFR pricing. 2011 was still a strong year for all forest growers in New Zealand but it had been a long time between drinks.
Issue 14
May 2012
Anti Sap Stained - Pruned Sawlog (Radiata Pine) – Sawmill in Lanshan – China
Wood Chopping on the Village Green, Geraldine Sponsored by Blakely Pacific Saturday 3rd of March started as a cold blustery autumn day certainly not conducive to wood chopping. Blakely Pacific sponsored the 350 underhand chop definitely not for the inexperienced!! These guys only wear trainers in the way footwear protection. Derek Burrows was on hand to give the winners their sponsors merchandise, a cap each with the Blakely Pacific emblem on the front. First place went to Terry Rice from Christchurch, 2nd went to Tony Jensen from Hokitika, and 3rd went to Nelson List and 4th to Don Minehan both from Southland. Also on hand to lend support was Adam Lowe from Hokitika who is the current World Champion in the double hand sawing discipline. At the Sydney Royal Show Adam was the former holder of the 15” standing block record. Close to lunch time the sun came out which resulted in a pleasant afternoon for all.
Issue 14
May 2012
Hoods Creek Walking Track Re-opening Barry Wells On the 15th April 2012 the Hoods Creek Walking Track in Herbert Forest was officially re-opened by Waitaki District Mayor Alex Familton, and North Otago Tramping and Mountaineering Club President Bronwyn McCone. There were approximately 90 people present to witness and celebrate the ribbon cutting ceremony. The Hoods Creek track had effectively been closed since the removal of a walkway around the waterfall approximately 15 years ago. Since that point in time the track had fallen into disrepair, and had become overgrown for much of its length. The re-opening of the track was the result of many days of voluntary work by the North Otago Tramping and Mountaineering Club members, with Blakely Pacific supplying all materials plus providing assistance with specific tasks. Instead of replacing the walkway at the waterfall, a new steel stairway was constructed and installed to go up the bluff stairway adjacent to the waterfall. This stairway was designed and built by Apex Engineering of Oamaru. After the formalities, many of the people present walked the Hoods Creek Track or the full loop, or alternatively some chose the easier option of just the Podocarp or Swallows Tracks. All walkers were guided by Club members. The North Otago Land SAR supplied radio communication for the day, and the North Otago Motor Group graciously donated a rental van for ferrying the various groups of walkers to and from the various track starting and finishing places within the forest. All of the walking tracks traverse through mature native podocarp forest remnants, the scale of which are rare in the North Otago area. The Herbert Forest walking tracks are a tremendous community asset, that are now open to the public to enjoy. Maps boards like the one shown below are displayed at the start and finish of all tracks, and there are also some laminated maps available at the Swallows and Breakneck Road carparks for people to take with them while walking the tracks – we would just ask that these please get returned to the box when they finish their walk. Blakely Pacific is very grateful to the North Otago Tramping and Mountaineering Club for their immense contribution to this on-going project.
Issue 14
May 2012
Austimber Forest Expo March 2012 In March 2012, Andrew Cocking (BPL South Island Regional Manager) and Barry Wells (BPL Forest Manager) took Warren Black, Tony Buick and Cory Pennington to Mt Gambier, Australia, to visit the AUSTimber forest expo. Warren owns and runs Black Contracting, a harvesting crew based out of Oamaru, and Tony Buick and Cory Pennington are both crew foremen in the two Gillion Logging Ltd crews, at Herbert and Waimate respectively. AUSTimber is the largest forestry expo in the Southern Hemisphere, showcasing the latest in technology, machinery, products and services for the forest industry. There were numerous static displays as well as “in-forest” demonstrations of equipment. All of the main forestry harvesting equipment manufacturers were represented at the expo. The guys flew in and out of Melbourne, and drove the 450km to Mt Gambier, in South Australia. They spent a full day at the expo, and got to see all of the new machinery options from different manufacturers. The guys enjoyed being able to see the machines up close and then operating, and also talking to the representatives on the various sites, who were a mix of operators, salesmen and engineers. There was also a good range of wood chipping machinery on display and operating, which was very interesting. These machines are common in Australia due to their lucrative woodchip market for paper production, but are now also being seen more in New Zealand as part of the emerging bioenergy industry. The AUSTimber expo was an excellent experience and was a very professionally run event. The guys enjoyed the visit and took value from seeing the range of equipment that could potentially improve the efficiency of their own operations. The trip was also an excellent opportunity to involve the next generation of harvesting contractors who will play a vital role in Blakely Pacific’s future harvesting operations.
Issue 14
May 2012
Board of Directors Visit In mid-March we hosted a visit from the US, a visit made up of the majority of the Board of directors and the senior managers of the company. This was a real whistle stop tour of the New Zealand operations aimed as a familiarisation for directors who either hadn’t been to New Zealand previously or who hadn’t been here for a number of years. Following the trip the company chairman and family member, Jim Warjone commented; “I had a terrific time in NZ! You and your team did a terrific job of organizing and implementing the experience for the Board!” . He went on to say; “Phil and his team have truly embraced the values of the owners and created real current and future value in the company's timber portfolio while geographically diversifying our overall risk. I am very proud to have been a part of their success and that of their predecessors!”. I can only take a very small part of the credit for what the directors and US executive saw on their trip. Without doubt, most of the credit is due to the managers, contractors and workers who have created and operate this great asset that we own and manage here in New Zealand on behalf of the family. As I review the success of the trip, I’d like to particularly thank an often overlooked part of our “team” – our contractors for making this trip the major success it was. It was fantastic for the board to be able to spend some time with the folk who really make our business work. In particular I’d like to thank; Nick Sims, Warren Black, Joe Manning and his crew, Neil Thomas, and Tony Buick and his crew for the excellent work they did. The directors all commented how they’d enjoyed talking with the people directly involved in the operations of the company and they were very impressed with the knowledge and obvious level of commitment shown by each one of you and your teams. There is no better way for them to understand how the business works than to talk to the people actively engaged in the day to day operations on the ground. There is absolutely no question that the directors and US senior managers left New Zealand with a clear understanding of the importance of our contractors to the success of our business. I’d also like to recognise the excellent contribution made by our own staff; Ash, Barry, Steve and Andrew and of course Geoff and Mitch from the Tauranga Barge company – it was great to see them interacting with confidence and the respect and teamwork shown between them and our contractors was picked up by a number of the directors. Finally, it is timely to recognise those folk who work out in the forests who rarely get any recognition – our core workforce. As we visited operations in both the north and south islands it was impressive to see the efficiency and dedication of these folk – and the humble way they go about just “getting on with their work”. Thanks to you also – you rarely get any recognition and yet you are the guys that day to day, week after week turn up and get the work done for the company. Thanks again to everybody – you were all fantastic ambassadors for Blakely Pacific and your commitment to this company is clearly obvious and this puts us in a very strong position as we look to grow our business here in New Zealand. Phil Taylor Managing Director
Issue 14
May 2012
Blakely Pacific Staff Milestones Derek Burrows receives a plaque to recognise his 50 years of service in the New Zealand forest Industry. Pictured: Andrew Cocking SI Regional Manager, Derek Burrows, Rene Ancinas Port Blakely CEO
Silviculture News With winter around the corner, pruning and thinning operations are winding up until spring to make way for the planting season. From the start of the year through Geraldine, Herbert, and Waimate forests we’ve thinned over 120 ha, pruned 75 ha and regen pulled over 60 ha ( Regen pull is basically removing regenerated pine from newly established stands by hand), which has been a great start for the year. Planting this year will see the establishment of 400, 000 Radiata Pine (150,000 consisting of Juvenile cuttings), 100,000 Corsican Pine and up to 200,000 Douglas Fir within our three main production forests. We’re aiming to have our seedlings planted within the three month winter period (June to August) which will require a great effort from our two Silvicultural contractors, but going from past seasons, it should be achievable.
From the South Island Forestry Team
Andrew Cocking South Island Regional Manager
Derek Burrows Forest Manager
Ashley Buchan Forest Manager
Barry Wells Forest Manager
Deb Booth Regional Administrator
Timaru Office
Head Office
P O Box 139
P O Box 13 980
122 Hilton Highway
CHRISTCHURCH
TIMARU
Ph (03) 365 2846
Ph (03) 688 2173
Fax (03) 353 7469
Fax (03) 688 2176
The mark of responsible forestry SGS-FM/COC-1493 FSC SUPPLIER FSC Trademark © 1996 FOREST STEWARDSHIP COUNCIL A.C
Issue 14
May 2012
Latest Blakely Pacific News Staff Changes
You will hear a new voice on the phone at the Timaru Office next time you need to call. This new voice is Deb Booth who we welcome to our team. Many of you will know now that Jane Carrodus finished on the 16 th March 2012 but carried on for a few more weeks to help train Deb Booth into the her new role as South Island Office Administrator. Jane worked 12 years for Blakely Pacific and was a big part of the transition team that helped develop our log production accounting system when Blakely Pacific took ownership of the Herbert and Geraldine Forests back in 2000. It is interesting to point out in 2000-2001 we produced only 80,000 m3 of logs, yet last year (2011) the South Island operation produced/handled 207,000 m3 of logs. This was a combination of our own forest harvesting production and private forest (woodlots).
Markets: Andrew Cocking So far 2012 has been a log market that is very much steady, without too much excitement. No real signs of great peaks as in 2011, However neither is there a threat of any great price crashes like the one that occurred in October 2011. As they say what goes up must come down yet the log prices did rebound quickly in Dec-Jan to more sustainable levels of where production and markets can operate, even more so where forests are located closer to ports or mills. During the unsettled horizon that developed last Oct 2011 I took the opportunity in Nov to visit the Chinese log market with our log agents TPT Ltd. It was an opportunity to visit the market in a back spin and help reinforce the commercial message that NZ forest owners will leave their forest standing than continuing to cut our forests if prices did not rebound quickly. What was occurring was a inventory sell down (like a NZ boxing day sale) not a new benchmark setting phase in log prices. I met a lot of established log wholesalers in China who had been burnt financially by the massive price drop. It told me that these guys need stable prices just like we do. The CFR log price for A grade dropped from US $ 160 to $ 145 then to $ 110 in a matter of 4 weeks last October. The CFR price for A grade is now back to US $ 126 - $ 130. Freight has bounced up also since January and the NZ exchange rate continues to hamper NZ $ returns. These fundamentals are always a strong factor in determining CFR pricing. 2011 was still a strong year for all forest growers in New Zealand but it had been a long time between drinks.
Issue 14
May 2012
Anti Sap Stained - Pruned Sawlog (Radiata Pine) – Sawmill in Lanshan – China
Wood Chopping on the Village Green, Geraldine Sponsored by Blakely Pacific Saturday 3rd of March started as a cold blustery autumn day certainly not conducive to wood chopping. Blakely Pacific sponsored the 350 underhand chop definitely not for the inexperienced!! These guys only wear trainers in the way footwear protection. Derek Burrows was on hand to give the winners their sponsors merchandise, a cap each with the Blakely Pacific emblem on the front. First place went to Terry Rice from Christchurch, 2nd went to Tony Jensen from Hokitika, and 3rd went to Nelson List and 4th to Don Minehan both from Southland. Also on hand to lend support was Adam Lowe from Hokitika who is the current World Champion in the double hand sawing discipline. At the Sydney Royal Show Adam was the former holder of the 15” standing block record. Close to lunch time the sun came out which resulted in a pleasant afternoon for all.
Issue 14
May 2012
Hoods Creek Walking Track Re-opening Barry Wells On the 15th April 2012 the Hoods Creek Walking Track in Herbert Forest was officially re-opened by Waitaki District Mayor Alex Familton, and North Otago Tramping and Mountaineering Club President Bronwyn McCone. There were approximately 90 people present to witness and celebrate the ribbon cutting ceremony. The Hoods Creek track had effectively been closed since the removal of a walkway around the waterfall approximately 15 years ago. Since that point in time the track had fallen into disrepair, and had become overgrown for much of its length. The re-opening of the track was the result of many days of voluntary work by the North Otago Tramping and Mountaineering Club members, with Blakely Pacific supplying all materials plus providing assistance with specific tasks. Instead of replacing the walkway at the waterfall, a new steel stairway was constructed and installed to go up the bluff stairway adjacent to the waterfall. This stairway was designed and built by Apex Engineering of Oamaru. After the formalities, many of the people present walked the Hoods Creek Track or the full loop, or alternatively some chose the easier option of just the Podocarp or Swallows Tracks. All walkers were guided by Club members. The North Otago Land SAR supplied radio communication for the day, and the North Otago Motor Group graciously donated a rental van for ferrying the various groups of walkers to and from the various track starting and finishing places within the forest. All of the walking tracks traverse through mature native podocarp forest remnants, the scale of which are rare in the North Otago area. The Herbert Forest walking tracks are a tremendous community asset, that are now open to the public to enjoy. Maps boards like the one shown below are displayed at the start and finish of all tracks, and there are also some laminated maps available at the Swallows and Breakneck Road carparks for people to take with them while walking the tracks – we would just ask that these please get returned to the box when they finish their walk. Blakely Pacific is very grateful to the North Otago Tramping and Mountaineering Club for their immense contribution to this on-going project.
Issue 14
May 2012
Austimber Forest Expo March 2012 In March 2012, Andrew Cocking (BPL South Island Regional Manager) and Barry Wells (BPL Forest Manager) took Warren Black, Tony Buick and Cory Pennington to Mt Gambier, Australia, to visit the AUSTimber forest expo. Warren owns and runs Black Contracting, a harvesting crew based out of Oamaru, and Tony Buick and Cory Pennington are both crew foremen in the two Gillion Logging Ltd crews, at Herbert and Waimate respectively. AUSTimber is the largest forestry expo in the Southern Hemisphere, showcasing the latest in technology, machinery, products and services for the forest industry. There were numerous static displays as well as “in-forest” demonstrations of equipment. All of the main forestry harvesting equipment manufacturers were represented at the expo. The guys flew in and out of Melbourne, and drove the 450km to Mt Gambier, in South Australia. They spent a full day at the expo, and got to see all of the new machinery options from different manufacturers. The guys enjoyed being able to see the machines up close and then operating, and also talking to the representatives on the various sites, who were a mix of operators, salesmen and engineers. There was also a good range of wood chipping machinery on display and operating, which was very interesting. These machines are common in Australia due to their lucrative woodchip market for paper production, but are now also being seen more in New Zealand as part of the emerging bioenergy industry. The AUSTimber expo was an excellent experience and was a very professionally run event. The guys enjoyed the visit and took value from seeing the range of equipment that could potentially improve the efficiency of their own operations. The trip was also an excellent opportunity to involve the next generation of harvesting contractors who will play a vital role in Blakely Pacific’s future harvesting operations.
Issue 14
May 2012
Board of Directors Visit In mid-March we hosted a visit from the US, a visit made up of the majority of the Board of directors and the senior managers of the company. This was a real whistle stop tour of the New Zealand operations aimed as a familiarisation for directors who either hadn’t been to New Zealand previously or who hadn’t been here for a number of years. Following the trip the company chairman and family member, Jim Warjone commented; “I had a terrific time in NZ! You and your team did a terrific job of organizing and implementing the experience for the Board!” . He went on to say; “Phil and his team have truly embraced the values of the owners and created real current and future value in the company's timber portfolio while geographically diversifying our overall risk. I am very proud to have been a part of their success and that of their predecessors!”. I can only take a very small part of the credit for what the directors and US executive saw on their trip. Without doubt, most of the credit is due to the managers, contractors and workers who have created and operate this great asset that we own and manage here in New Zealand on behalf of the family. As I review the success of the trip, I’d like to particularly thank an often overlooked part of our “team” – our contractors for making this trip the major success it was. It was fantastic for the board to be able to spend some time with the folk who really make our business work. In particular I’d like to thank; Nick Sims, Warren Black, Joe Manning and his crew, Neil Thomas, and Tony Buick and his crew for the excellent work they did. The directors all commented how they’d enjoyed talking with the people directly involved in the operations of the company and they were very impressed with the knowledge and obvious level of commitment shown by each one of you and your teams. There is no better way for them to understand how the business works than to talk to the people actively engaged in the day to day operations on the ground. There is absolutely no question that the directors and US senior managers left New Zealand with a clear understanding of the importance of our contractors to the success of our business. I’d also like to recognise the excellent contribution made by our own staff; Ash, Barry, Steve and Andrew and of course Geoff and Mitch from the Tauranga Barge company – it was great to see them interacting with confidence and the respect and teamwork shown between them and our contractors was picked up by a number of the directors. Finally, it is timely to recognise those folk who work out in the forests who rarely get any recognition – our core workforce. As we visited operations in both the north and south islands it was impressive to see the efficiency and dedication of these folk – and the humble way they go about just “getting on with their work”. Thanks to you also – you rarely get any recognition and yet you are the guys that day to day, week after week turn up and get the work done for the company. Thanks again to everybody – you were all fantastic ambassadors for Blakely Pacific and your commitment to this company is clearly obvious and this puts us in a very strong position as we look to grow our business here in New Zealand. Phil Taylor Managing Director
Issue 14
May 2012
Blakely Pacific Staff Milestones Derek Burrows receives a plaque to recognise his 50 years of service in the New Zealand forest Industry. Pictured: Andrew Cocking SI Regional Manager, Derek Burrows, Rene Ancinas Port Blakely CEO
Silviculture News With winter around the corner, pruning and thinning operations are winding up until spring to make way for the planting season. From the start of the year through Geraldine, Herbert, and Waimate forests we’ve thinned over 120 ha, pruned 75 ha and regen pulled over 60 ha ( Regen pull is basically removing regenerated pine from newly established stands by hand), which has been a great start for the year. Planting this year will see the establishment of 400, 000 Radiata Pine (150,000 consisting of Juvenile cuttings), 100,000 Corsican Pine and up to 200,000 Douglas Fir within our three main production forests. We’re aiming to have our seedlings planted within the three month winter period (June to August) which will require a great effort from our two Silvicultural contractors, but going from past seasons, it should be achievable.
From the South Island Forestry Team
Andrew Cocking South Island Regional Manager
Derek Burrows Forest Manager
Ashley Buchan Forest Manager
Barry Wells Forest Manager
Deb Booth Regional Administrator
Timaru Office
Head Office
P O Box 139
P O Box 13 980
122 Hilton Highway
CHRISTCHURCH
TIMARU
Ph (03) 365 2846
Ph (03) 688 2173
Fax (03) 353 7469
Fax (03) 688 2176
The mark of responsible forestry SGS-FM/COC-1493 FSC SUPPLIER FSC Trademark © 1996 FOREST STEWARDSHIP COUNCIL A.C
Issue 14
May 2012
