Industry News Roundup

As We See It: Safe Routes, Round 13

By Danny Dructor

Back in 1997, while serving on the American Loggers Council (ALC) Congressional Relations Committee representing the Texas Logging Council, I was asked to spearhead a change in law to allow state legal weight tolerance on the Federal Interstate Highway System. That was 24 years ago, or in Congressional time, 12 sessions ago. We have seen leadership change hands in Washington several times since 1997, and during that time, we have stayed the course in our attempt to make delivery of unrefined forest products to the mills and wood yards as safe as possible.

Originally introduced as the “Right to Haul Act” and several edits defining and refining later, what is really a very commonsense piece of legislation was recently re in troduced as the Safe Routes Act of 2021 H.R, 2213 by Congressman Mike Gallagher (R-WI). Since its reintroduction, it has gained bipartisan support with the addition of Con gressman Jared Golden (D-ME) as a cosponsor.

So here we are in round 13 of what has turned out to be the longest attempt in the history of the American Loggers Council to get a piece of legislation across the finish line.

Along the way ALC has garnered support and allies from organizations within our industry including the Forest Resources Assn., American Forest and Paper Assn., Southeastern Lumber Manufacturers

Assn. and several state and regional logging associations that are members of ALC. We have also walked the halls of Congress with many of our sponsors representing the insurance industry and OEMs who consider this legislation an important step forward to improve safety by decreasing the likelihood of incidents while transporting unrefined forest products from the woods to consuming mills.

I would be remiss if I did not point out that ALC members have worked diligently over the years securing support from Republicans and Democrats in both the

House and Senate. The issue remains that, despite all the work,

Transportation Committee Chairs have yet to allow this legislation due process with a fair hearing and a vote for passage.

ALC’s position has been and continues to be one that involves safety for the general public and those drivers hauling the loads.

Arguably more efficient routes to mills create the benefit of fewer

CO2 emissions which should be of interest to the Biden administration. In addition, when state legal weight limits are utilized on shorter Interstate routes when available, fewer hours of service and fewer drivers are needed in an industry challenged to recruit new drivers.

What was not anticipated is the opposition encountered from the railroad industry, which apparently views this legislation as a threat to their commerce. I cannot remember the last time I saw a load of logs being loaded on a railcar in the woods and being taken to a mill or collection yard, an everyday occurrence before rail service to rural areas became insufficient and modern infrastructure became available. In order to become more profitable, short line rail companies were acquired by larger rail lines. Tracks in rural areas that once served the timber and other

Dructor

rural industries were pulled up, and the rights of way became trails for recreation, forcing truck transportation to become more efficient. This begs the question then as to why rail is opposed to the narrowly crafted “Safe Routes Act of 2019.”

It is hard for a Congressman or Senator to argue against safety and protecting lives, but what continues to amaze all of us is the unwillingness of the T & I Committee to move this simple legislation out of committee and give it the hearing it deserves. Safe Routes is not about revenue, or interfering with another industry’s commerce, it is about safety. Safe Routes Save Lives. Let’s hope that as we fight through Round 13, both the chairs of the Senate and House Transportation Committees and their members will give this legislation the opportunity it deserves.

Danny Dructor is Executive Vice President of American Loggers Council, a 501(c)(6) trade association representing the interests of timber harvesting and timber hauling businesses across the United States. For more information visit www.amloggers.com.

Bosworth Is New SWPA Director

shoes: "This opportunity to lead and passion into this position to help advocate for such a hard-working, focus on solutions, not problems, and tough and critical segment of the for- change the conversation about how est industry is truly an honor and a we address them. Forests and forest responsibility not taken lightly.” products are the most sustainable out An Iowa native, Bosworth earned there; loggers not only deliver these her Bachelors in Forestry from Iowa to the consumer, they also reduce forState University. She’s spent most of est risks like wildfire, pests and disthe last decade serving the forest ease. Yet many federal assistance proindustry in the South, beginning her grams for agriculture are not even career in Georgia as a county forester, available to the forestry community. later becoming the longleaf specialist This doesn’t make any sense. I’m for the Georgia Forestry Commis- looking forward to working with our sion, where she advised on the pru- partners, new and old, to help make dent establishment of longleaf. Next, real changes for loggers in Georgia she took her passion for forestry to a and Florida, and maybe beyond.” regional stage when she joined the American Forest Foundation as their Southern Regional Tree Farm Manager. There she oversaw the network of thousands of landowners and volunteers and led the implementation and development of new certification tools in the Southeast. Most recently she served as Director of Forestry and Regulatory Affairs at the Florida Forestry Assn. “We have a lot of work to do and many challenges that on a quick glance sometimes seem insurmountable but must be addressed to protect not only the harvest and logistics sectors but keep the entire forest industry, and forest landscape, viable and vibrant,” Bosworth says. As rising

On April 12, the lumber costs have the public disSoutheastern Wood cussing forest products, Bosworth Producers Assn. hopes to focus some of that attention named Laura Bos - specifically on logging. “I want to worth its new Exec- highlight the challenges and logistics utive Director. Her that loggers face, and help the public predecessor, Tom - understand. I came into this position my Carroll, is retir- from the forestry and certification ing in June after 20 Bosworth world, and chose to work with SWPA years with SWPA because I saw how loggers were and 14 as its Executive Director. treated: always the underdogs. I can Bosworth calls it an honor to have identify with that, and am looking been selected to step into Carroll’s forward to taking that experience and

ALC Names Dane As Executive Director

pandemic. He has also been involved in legislation allowing state legal weight tolerances on the Federal Interstate Highway System and other ALC initiatives like the Future Careers in Logging Act. ALC President Tim Christopherson states, “After close to 18 months of searching for a new executive director for the ALC, the search committee was able to narrow down the field to one candidate. I am pleased that Scott has accepted the position and look forward to working with him during the transition. He has the drive, passion and ambition to take the ALC to the next level.” Dane adds, “Danny has provided the leadership to develop the American Loggers Council into the leading national voice of the American logAs of June 1, ging industry. I look forward to conScott Dane be - tinuing to build upon that foundation, comes the Exec- expanding the partnerships, supportutive Director ing the state members with their for the American issues and promoting the agenda of Loggers Council the American Loggers Council.” (ALC), replacing The ALC office will be relocated the retiring Dan - from Texas to Minnesota, where Scott Dane ny Dructor, who Scott will set up the office beginhas been with ning June 1. ALC since July 2001.

Dane brings with him a vast amount of experience working with timber harvesting and timber hauling associations, having been the Executive Director for the Associated Contract Loggers and Truckers of Minnesota for the past 17 years. Dane, who spoke at the Republican National Convention last summer, has experience in both the state and national levels in issues impacting timber harvesting and timber hauling.

Dane has been a critical component of the ALC’s work to gain financial assistance for those businesses impacted by the COVID-19

Endowment Launches TimberHauling.com

U.S. Endowment for Forestry and Communities in May announced the official launch of TimberHauling .com, a national buyers’ group that provides savings on products and ser vices to nearly 10,000 independent small trucking and hauling businesses.

The TimberHauling.com platform will help the sector move together as a unified market rather than thousands of independent producers. The timber harvest and hauling sector of the forestry industry is the strained link in the U.S.-based forest products value chain. This sector is continually dealing with a range of challenges, including inclement weather, mill quotas, labor shortages, high fuel and insurance costs, and high equipment costs—both upfront and ongoing.

For a modest annual membership fee, members enjoy discounts and savings on parts and services. TimberHauling.com gives loggers national buying power and strength they have never had to shore up and further unify the sector.

“The Endowment focuses on opportunities when others can’t or won’t,” according to Ewell Smith,

Executive Director of the Carolina

Loggers Assn. (CLA). “Developing a national platform that will save money for independent loggers and haulers will make them more costcompetitive and efficient.”

This group also strengthens the capacity of state and regional asso-

ciations to deliver services. The program is being piloted first in partnership with state logging associations in North Carolina (CLA), South Carolina (South Carolina Timber Producers Assn.), and Virginia (Virginia Loggers Assn.).

“The Endowment is using our sector-wide vision, risk capital, and bridge-building competencies to build an ‘Amazon-like’ model to drive savings to individual timber hauling firms,” says Pete Madden, President & CEO of the Endowment. “TimberHauling.com is part of our Initiative 2020 Vi sion that mandates strategic and targeted investments to support the development of traditional forest products markets to retain and grow existing forest-based economies.”

A variety of companies have already joined the platform: Goodyear Tire & Rubber Company; MHC Kenworth; Setliff Law P.C.; Schwab Brothers Hydraulics; TCS Fuel Cards; North American Supply; and Cadence Petroleum Group. More companies and services are expected to be added as TimberHauling.com grows. Currently, TimberHauling.com is offering a free six-month “test drive” membership that can offer cost savings on hoses, tires, equipment, legal expenses, oil and fuel. Visit timberhauling.com and click on the pricing tab to learn more.

Paper Excellence Buys Domtar For $3 Billion

Paper Excellence, a North America manufacturer of pulp and specialty printing, writing and packaging papers headquartered in Richmond, British Columbia, Can., is acquiring Domtar for $3 billion.

After the transaction closes, Paper Excellence says it intends to continue the operations of Domtar as a stand-alone business entity. Domtar will continue to be led by its management team and Paper Excellence plans to retain Domtar’s corporate and production locations.

Paper Excellence reports seven pulp and paper manufacturing facilities in Canada, with more than 2.8 million tonnes of production and $2.4 billion in annual sales.

Domtar maintains corporate offices in Fort Mill, SC and Montreal and operates multiple pulp, paper, converting, liner board and chip mill manufacturing facilities in North America, including a paper facility in Bennettsville, SC and a pulp facility in Ashdown, Ark. The company reported $3.65 billion in sales for 2020.

Arkansas Pellet Plants Count On Residue

Drax Group, a major producer of industrial wood pellets and owner of the world’s largest biomassfueled electricity generation plant in the United Kingdom, will begin constructing the first of three satellite pellet plants in Arkansas. The three plants are together expected to produce 120,000 metric tons of wood pellets a year from sawmill residues, supporting Drax’s plan to increase self-supply to its power station in the UK.

Drax will begin construction of the first plant near a West Fraser sawmill in Leola, Grant County, with commissioning expected in October. Drax will utilize sawdust and other dry residual materials from the West Fraser facility. Drax will begin construction on two more plants in other locations in the coming months. In total, Drax will invest $40 million in the state, creating 30 new direct jobs and many more indirect jobs across three Arkansas communities.

The development of the satellite pellet plants is part of Drax’s strategy to increase biomass self-supply to 5 million tons by 2027, improving supply chain resilience while reducing pellet costs.

Drax owns and has interests in 17 pellet mills in the U.S. South and Western Canada that have the capacity to manufacture 4.9 million tonnes of wood pellets a year.

The pellets produced at the new satellite plants will be transported to Bruce Oakley terminal in Little Rock, Ark. before being shipped south to Louisiana to oceangoing vessels.

SYP Sawmill Plans To Come Back Soon

Thankfully no injuries were reported after an air compressor exploded and started a fire at East Alabama Lumber’s sawmill at Lafayette, Ala. on April 22. The fire took out most of the sawmill in the primary breakdown area.

“We’ve got some equipment that it didn’t affect,” says owner Bob Dudley, adding that while the planer mill and kilns weren’t damaged, much of the lumber breakdown green end was a complete loss. “We’re definitely going to rebuild.” He says mill personnel are looking at replacement equipment and developing a plan to get the facility back up and running as soon as possible.

Dudley Lumber also operates a pine sawmill at Salem, Ala. and a small hardwood mill at Hatchechubbee, Ala. Dudley Lumber’s fire woes continued in early May when a line of extreme thunderstorms moved through the state causing extensive damage, and a lightning strike ignited a diesel tank fire at the hardwood mill. No additional equipment or property was damaged.

Dudley Lumber purchased East Alabama Lumber from Byron Welch in 2001. Welch began the operation in 1950.

Enviva Considers Pellet Plant At Bond, Miss.

Enviva, the world’s leading producer of industrial wood pellets, reports the possible development of a wood pellet plant in Bond, Miss., about 50 miles north of Gulfport. This plant would produce between 750,000 and more than 1 million tonnes per year.

Enviva reports that construction of a 750,000 tonnes wood pellet plant continues in Lucedale, Miss., with completion expected in the middle of this year. And Enviva continues to move forward on the development of a wood pellet plant in Epes, Ala.

Virginia Increases Minimum Wage

In what may perhaps be a sign of things to come nationwide, Virginia raised its minimum wage on May 1. The new minimum of $9.50 an hour is higher than the federally mandated minimum of $7.25 and is sched-

uled to continue increasing each year for the next few years. Trailing only its northern neighbor Maryland, Virginia now has one of the higher minimum wages in the Mid-Atlantic region, higher than North or South Carolina, Georgia, Florida or West Virginia. The legislation is available to read at https://lis.virginia.gov/cgibin/legp604.exe?201+sum+SB7.

The new law also directs three state agencies (including the Virginia Employment Commission) to conduct a joint review of the feasibility of implementing a regional minimum wage structure in the Commonwealth. The agencies must submit their findings to the General Assembly and Governor by December 1, 2023.

Ala. Gov. Attends Forest School Graduation

On April 30, Alabama Governor Kay Ivey served as the keynote speaker at the spring graduation ceremony for the Alabama Forestry Commission’s Forestry Academy. The Forestry Academy’s Class of 2021 graduated 27 students.

This was the first graduating class from the program this century. Alabama Forestry Commission established the original Forestry Academy in 1979, and it continued through 1994. Now, after 26 years, the Academy has been reinstated. This first graduating class of the “new” Academy is composed of recently hired AFC employees from 20 counties across Alabama. These individuals have completed eight weeks of intensive classroom study and field exercises in forest protection, forest management and teamwork building. The Academy train ing will pay tremendous dividends not only to the agency but also to forest landowners throughout the state as these men and women have become proficient wildland firefighters and knowledgeable forest managers.

“Without our forest industry Alabama would lose 111,000 jobs and hundreds of millions in yearly income revenue, “ Governor Ivey told the graduates at the ceremony, which took place in Andalusia. “The safety and sustainable growth of our forests require our full attention, and proactivity. This is where each of you will make a significant difference in

Alabama Governor Kay Ivey spoke at the Forestry Academy graduation, the first since 1994.

Strategic Biofuels Gains Ground

Louisiana Governor John Bel Edwards joined Strategic Biofuels LLC CEO Paul Schubert in an announcement that the company’s wholly owned subsidiary, Louisiana Green Fuels, plans to develop a renewable diesel plant near the Caldwell Parish seat of Columbia. Situated on a 171-acre site at the Port of Columbia, the plant would produce up to 32 million gallons of renewable fuel annually through established refinery processes with wood waste as the feedstock. The company is completing feasibility and financing phases for the project in anticipation of a final investment decision by late 2022.

Louisiana Green Fuels would make a capital investment of at least $700 million. The company would create 76 new direct jobs and more than 400 new indirect jobs.

Strategic Biofuels reports it has raised 85% of its early-stage financing from investors in north Louisi -

ana. In addition to the Columbia renewable diesel refinery, the company envisions the development of additional Louisiana refineries that would target production of renewable aviation fuel, as well as diesel.

Strategic Biofuels states its re new able diesel is significantly different from biodiesel and is not subject to biodiesel’s severe blending limitations. “Renewable diesel is a high performance, low emissions, ‘drop-in’ synthetic fuel,” the company asserts. “The greenhouse gas, primarily carbon dioxide, produced by Louisiana Green Fuels will be captured and permanently sequestered in underground geologic formations, thereby preventing the captured carbon dioxide from entering the atmosphere.”

The site, 25 miles south of Monroe, is on an active port site with a Union Pacific rail line.

The company says the Port of Columbia site is located within one of the largest fiber baskets in the country, ensuring long-term costeffective feedstock supply; and that within a 75-mile radius of the site there are more than 40% more tons of pine grown annually on private lands, mostly managed plantations, than are harvested.

Drax completed its acquisition of North America industrial wood pellet produce Pinnacle Renewable Energy Inc. The transaction re ceived overwhelming support from both sets of shareholders.

The acquisition increases Drax’s annual operational pellet production capacity to 4.9 million tonnes at 17 plants across Western Canada and the U.S. South—up from 1.6 metric tons. The deal also gives Drax access to four deep water port facilities and three major wood fiber baskets.

Stimpson Retires After Active Career

Fred Stimpson, one of the Stimpson family members who ran Gulf Lumber Co. in Mobile, and who was most recently President of Canfor Southern Pine for six years, announced his retirement this past December. In April Canfor elected him to the company Board.

Stimpson, a Timber Processing Man of the Year in 2000, spent much of his lumber career with Gulf Lumber Co. sawmill and forestry operations. Educated in forestry, Stimpson became president of Gulf Lumber in 1987 and served in that capacity until 2009, which was the same year Gulf Lumber and Scotch Lumber merged to form Scotch Gulf Lumber, including the Gulf Lumber sawmill in Mobile and the Scotch sawmills at Jackson and Fulton, Ala. Stimpson served as CEO of Scotch Gulf Lumber.

Scotch Gulf Lumber sold to Canfor for $80 million in 2013 in a threeyear purchase plan and Stimpson joined Canfor. In 2015, Stimpson became President of Canfor Southern Pine, based in Mobile, and led the company’s Southern U.S. business, helping the company expand from four mills to 15 operations including a transportation company for hauling lumber and wood residuals across the Southeast.

Stimpson’s successor as President of Canfor Southern Pine is Tony Shef field. Previously, Sheffield serv ed in financial and sales positions for Canfor Southern Pine, most re cently as Vice President of Southern Yellow Pine Sales and Marketing. He was Chief Financial Officer for Scotch Gulf Lumber before the purchase by Canfor and was General Manager at Scotch Lumber before that.

Air Permit Issued For Proposed Plant

Renewable Biomass Group has been issued an air quality permit by

the Georgia Dept. of Natural Re sources Environmental Protection Div. for the construction and operation of an industrial wood pellet mill in Adel, Ga.

The permit allows the processing of not more than 497,000 oven dried tons of wood chips in the wood pellet dryer, not more than 337,968 tons of wood chips from the green hammermill, and not more than 246,234 tons of wood chips from the dry hammermills during any 12 consecutive months. The permit also requires the operation of a wet ESP and RTO.

Last September the Adel City Council voted to annex a 171-acre industrial park area in Cook County into the city of Adel and to re-zone the property from agricultural to heavy-industry, where the new plant will be located.

The company hopes to begin commercial production in the first quarter of 2022.

The Renewable Biomass Group web site indicates the company wants to develop 2 million metric tons per year of industrial wood pellets projects over a seven-year period.

The RBG air permit application indicates the plant will procure 1.1 million tons of softwood annually.

Weyco Plans Holden Makeover

Weyerhaeuser Co. announced plans to make a two-phased $157 million capital investment at its southern yellow pine sawmill in Holden, La. Phase one includes nearly $19 million to upgrade lumber kiln drying capacity, while the second phase will include a major investment of $138 million to completely modernize the facility.

“This investment is a testament to each employee here at Holden,” says Brent Mitchell, Holden interim mill manager. “It reflects a personal commitment to the highest level of performance, both operational and safety-wise, that each employee has. After years of planning this project, we’re excited for the sustained benefits it will bring to our people, our operation and the community.”

Weyerhaeuser plans to modernize the sawmill to produce longer-length lumber, add a new planer mill, and add two continuous dry kilns for increased drying capacity. Additionally, the company will build out the necessary infrastructure; upgrade computer technology, control rooms, and heating and fan systems; invest in environmental technology to meet current performance standards; and invest in quality and safety equipment. Work is expected to take place over the next three years.

The Holden facility began lumber operations in 1980 under Crown Zellerbach, and Weyerhaeuser acquired the mill in 1996.

Payeur Made Tracks With Quadco, Southstar

Payeur’s career began in 1967 as ties. He’s been a fixture as a key a mechanic with Timberjack in part of Quadco’s sales team ever Ontario. He started as a field since, even after Komatsu bought mechanic and parts man, but moved Quadco in 2018. into sales and later into management. He soon made the decision to venture out on his own, opening a parts supply business in Vernon, BC in 1981. The business was successful, eventually carrying Hyundai, Volvo and Tigercat logging equipment. Payeur sold one of the first Waratah 620 processing heads in North America way before he eventually went into business with Waratah founder Dave Cochrane. While running the dealership, Payeur also developed the Skylead, a small skidder-mounted yarder used in smaller timber. Payeur got out of the dealership in 2004, but re-energized his career in 2011 when Southstar, a New Zealand-based attachments company, went up for sale. Together with four former em ployees turned business partners, Payeur and his team purchased Southstar, which included founder Cochrane who started the company in 2007 after he sold Waratah to Deere in 2000. They began manufacturing in Canada and New Zea land, and ex panded Southstar’s

Following a presence in the Western North successful log- American market. ging equip- During Payeur’s time with Southment career star, the company developed hosethat has span - through design and four wheel drive ned five dec - processor heads, and was the first to ades, Marcel offer all three model types in grapPayeur, Quad- ple processor design. co Group Sales Payeur believes the decision to Specialist and sell to Quadco in 2016 made sense a former Southstar part Payeur because Quadco is committed to the industry and provides Southstar owner, announced his retirement. more global distribution opportuni-

Upgrade Coming For ATI Malvern

Anthony Timberlands, Inc. (ATI) will invest $10 million in improvements to its pine sawmill in Mal vern, Ark. during the next six to eight months.

“Our sawmill in Malvern has been in place for almost 75 years. We have made numerous improvements over the years, ensuring the viability of the mill through technological and production enhancement measures,” according to Steve Anthony, President of ATI.

The project will include an upgrade to the primary breakdown systems of the mill—the carriage headrig for large logs and the sharp chain small log side. The mill’s trimmer line will also be enhanced to handle the higher production volume afforded by the upgraded primary breakdown systems.

“Sawmill equipment is constantly evolving. If you are not periodically upgrading scanners, optimizers and lumber handling equipment, you are falling behind your competitors,” Anthony adds. “The windfall provided by recent record lumber markets will allow us to finance these, as well as major projects at other ATI locations, internally.”

Installation of the new equipment will take place on a staggered schedule between August 2021 and January 2022. Employment numbers will not be impacted, while hourly production levels are expected to increase by 25%.