FOREST TALK

Removing exotics is not the solution

“IT IS SCARCELY BELIEVABLE THAT THE

Government’s long heralded emissions plan will be undermined by a single policy designed to appeal to the anti-forest lobby,” says Climate Forestry Association spokesperson Dr Sean Weaver.

He says the plan, announced last month, has highlighted “the extraordinary impact” of its proposal to remove exotic trees from the permanent category of the ETS, increasing the country’s emissions by 45 million tonnes – the equivalent of more than two years of road transport emissions – by 2035.

The first of three emissions plans, released by Climate Change Minister James Shaw, reinforced that “forestry has a critical, ongoing role in reaching the net-zero component of Aotearoa New Zealand’s 2050 target”. However, the Government’s proposal to restrict exotic trees from the permanent category of the ETS – its first action under the plan’s Forestry section – will ensure that target can’t be met, says Dr Weaver.

“The Government is putting New Zealand’s whole climate change strategy on the line for a misguided policy that will affect less than 3% of Aotearoa’s most marginal, rugged and hard to reach land.

“The emissions reduction plan figures show that removing exotics from the permanent category would increase emissions by millions of tonnes. And worse, this is likely to be a significant underestimate – already the uncertainty created by the consultation has put a large amount of planting on hold.

“Even the first Budget period 2021-2025 is likely to blow out if exotics are taken out of the permanent category of the ETS, given how hard it is to make native planting commercially viable and the impact the consultation on removing exotics has already had on planting rates.

“The Government’s new plan acknowledges that regenerative forestry can improve carbon removal and storage, and protect carbon stocks in the long-term – New Zealand simply cannot afford to reject this vital tool for decreasing our carbon footprint.”

Dr Weaver says although the Climate Forestry Association supports native afforestation, and members have significant native reforestation projects, the slow growth rates of native trees alone will mean their impact on the country’s new carbon budgets will be minor and late.

“While investing in understanding the carbon yield of native trees and finding ways to reduce the cost of native afforestation is a laudable aim, the strategy – as yet undefined by the Government – will do little to meet our immediate needs to address the climate emergency,” says Dr Weaver.

“Exotic trees are our sprinters – they grow quickly and sequester much more carbon over the short term. Native trees, which grow far more slowly, are our long-distance runners, sequestering carbon over the long term. The point is, we need both, for immediate carbon reductions now and long-term sequestration.

“As the Government’s initial plan highlighted, without the right policy settings that recognise the role of exotic trees in our climate strategy, we will fail to meet our emissions targets. That will cost taxpayers tens of billions of dollars as we are forced to subsidise indigenous reforestation, and buy expensive and uncertain credits offshore to offset what will now be a shortfall of nearly 150Mt.

“The Government’s plan has put a great deal of focus on providing incentives to reduce transport emissions. We applaud this because it is long overdue. But there is little point in doing that if at the same time we are getting rid of the exotic reforestation tool that will capture more than two years’ worth of the country’s entire road transport system. The gains we make in transportation reductions will be cancelled out by the losses in the forest sector.

“It’s time this Government took climate change as seriously as it says it does and put every resource we have available here in Aotearoa to work on reducing emissions.” NZL

Questions raised

WHILE THE BIOENERGY SECTOR HAS WELCOMED THE

Government’s Emissions Reduction Plan announced last month, National Road Carriers wants more detail on the intention to cut freight emissions by 35% by 2035 by using low emissions trucks to transport food and other products.

National Road Carriers Chief Operating Officer, James Smith, says the plan for transport focusses almost entirely on personal transport, with “just one bullet point” committing $20 million to accelerate the decarbonisation of freight transport.

“The freight transport sector needs the Government to commit to lowcarbon infrastructure and provide incentives to road-freight companies to change their truck fleets,” he says.

“There are plenty of things the Government can do to encourage emissions reduction in road transport. For example, they could follow Australia’s lead by applying different depreciation rates to lower-emitting trucks.

“We also need clearer guidance regarding biofuels. And we need more investment in the infrastructure required to support alternative fuel trucks such as increasing the capacity of the electricity grid and a fast charger network capable of charging trucks. We could be doing more to encourage Euro 6 standard vehicles while we wait for these alternatives to become available in this country.

“The road transport industry is fully engaged in reducing emissions. The challenge is that the technology is not commercially available yet. Trucks are big ticket items with a long life. They can be on the road for 30 years – five years for front-line duties before dropping down to other tasks. What is the Government doing to enable a change in this technology?”

Meanwhile, Brian Cox, Executive Officer of the Bioenergy Association says the bioenergy sector has been developing the foundations for the use of biomass residues and recycling of organic waste, on which many of the policies and programmes announced can be built, and the sector is ready to expand.

“The supply of biomass residues from the forestry and wood processing sectors are critical to being able to replace fossil fuels. Recent work has shown that there is adequate biomass available from forestry and agriculture but we need to improve market information from buyers and sellers of biomass, so that we have the right quantities of biofuel, of the right type, available in the right place, at the right price,” he says.

“It is encouraging that the Government has approached emission reductions with a cross sector approach. It is also encouraging that the bioenergy emission reduction solutions have been coupled with the transition to a circular bioeconomy which will provide financial incentives for industry to be able to reduce costs, develop new income streams, and reduce emissions. New Zealand has been slow to adopt circular economy principles where food wastes are recycled to make other products rather than discharge to landfill. There is no reason why all communities across New Zealand could not have zero organic waste going to landfill, and additional value is derived from greater domestic processing of our forestry.

“If we focus on the domestic emissions reduction policies and programmes as set out in the ERP we should be able to avoid having to purchase international carbon credits which ensures that the investment required benefits New Zealand Inc and not some other country. It is a pity that this is not a primary focus of the Plan.” NZL

TAKE BACK CONTROL WITH BOA HYDRAULICS.

The World’s Fastest Hydraulic Hose Repair

Countering the illegal timber trade

THE ILLEGAL HARVESTING OF WOOD IS A

significant problem globally, contributing to deforestation, degradation of ecosystems and damaging economic and social impacts.

Voluntary measures have been in place for around 20 years but protections are incomplete. Now New Zealand is committing to trade only in legally harvested timber with the Forests (Legal Harvest Assurance) Amendment Bill introduced to Parliament last month.

Under the Bill, timber harvested in New Zealand and overseas, and used in products made here or imported, will have to be verified as being legally harvested.

“The new system will strengthen the reputation of our forestry and wood processing exports, safeguard our market access, and reduce the risk that we import illegallyharvested timber,” says Forestry Minister Stuart Nash.

Global consumers want assurances about high-quality primary products. Under the new legislation, log traders, primary processors, exporters, and importers will apply to MPI to be registered in the legal harvest system.

“The system establishes regulations and requirements to confirm timber sourced here and overseas is harvested in compliance with the relevant laws. Anyone purchasing timber and timber products must produce information showing this is the case,” says Mr Nash.

“All registered parties will need to put in place a due diligence system, which MPI will provide guidance on, and which will be regularly assessed. Their names will appear on an online public register administered by MPI. They can also apply for an Exporter Statement which they can use for overseas market access purposes.

“This information provides evidence of harvest legality when sending product overseas and to their customers. Around a third of our timber or timber product exports go to markets with wood legality assurance requirements.

“Under the Bill, trees or timber products are deemed legal if they are harvested by a person who has a legal right to harvest the trees or plants for use or sale, and the person complies with laws in the place where the harvest occurs.

“This is verified through a declaration the logs are being legally harvested and through due diligence systems. If the harvest occurs in another country or jurisdiction, relevant laws or rules in that location would be applied to specified products imported here.

“The regulatory system contributes to New Zealand and international initiatives to counter trade in illegally harvested timber.

“The Ministry for Primary Industries (MPI) currently uses interim arrangements with several key trading partners to provide assurance. The bill provides a long-term solution to meet the requirements of trading partners for a robust legal harvest system, and to give confidence and certainty for the forestry and wood-processing sector

“With increasing international efforts to ensure that traded timber products are from legally harvested timber, we need a robust legislative framework that supports continued market access for our exporters while also preventing the import into New Zealand of illegally harvested timber products,” says Mr Nash. NZL

A logging ship being loaded in Port Chalmers, Dunedin.

Rates increase targets forestry

THE FOREST OWNERS ASSOCIATION (FOA) HAS BEEN

unsuccessful in its application for a High Court judicial review of Wairoa District Council’s decision to increase rates on forestry land. This comes after a judge agreed a council had the right to increase rates on forestry land due to “negative community wellbeing”.

The council, which has a small rating base of about 8300, overhauled its system to make rates more affordable for residents and small commercial properties while increasing rates for high value properties. The FOA represented seven substantial forestry companies that had about 52,000 hectares in the district.

The impact on forestry saw 115 ratepayers in the forestry sector paying NZ$334,000 more based on additional costs for roading maintenance and an “increase to reflect the negative community wellbeing impacts of the industry on the district”.

The review was heard by Justice Christine Grice in the High Court at Gisborne in February. The FOA argued the rating decision was “unfair and unreasonable and in particular improperly targeted forestry because they were wealthy”. It said the council failed to take into account environmental wellbeing and climate change, and wrongly assumed that forestry was the cause of negative wellbeing.

It also said the Council was using the Rating Act as a means of discouraging the conversion of productive land to forestry “because it had no powers to regulate against conversion of farmland for forestry use”. NZL

Hi-tech approach to silviculture

THE GOVERNMENT IS BACKING PRECISION

Silviculture, a $25.5 million, seven-year programme led by Forest Growers Research (FGR) which will focus on developing mechanisation, automation, digital technology and robotics in the silviculture value chain.

“This hi-tech approach to forestry management will have a major impact on the key silvicultural areas of planting, pruning and thinning, as well as in-nursery activities,” says Forestry Minister, Stuart Nash.

“Silviculture is about controlling the composition, structure, growth and quality of a forest. It is essential to manage and create value from our plantation forests, however it has remained a highly manual and labourintensive work practice.

“We’re investing $10.2 million from the Ministry for Primary Industries’ Sustainable Food and Fibre Futures fund (SFF Futures) to enable the forestry industry to switch to the latest silviculture technology.”

Mr Nash says the innovative use of technology offers multiple benefits for the forestry sector. “It will make silviculture work safer, more productive and more attractive to workers. The programme includes re-training workers to match the transition into high-tech jobs. It will also enable the forestry workforce to create higher-value products more efficiently.”

A ‘smart spade’ which identifies exactly where to plant a tree seedling is just one of the new technologies in the Precision Silviculture development project. It combines a planter with a sensor, linked to electronic mapping. The map sends a beep signal to the planter to go a couple of metres up or along the slope to put the seedling in. The end result is a much more optimally spaced plantation forest which makes for better growth and easier and safer harvesting.

FGR National Research Manager, Paul Adams says, “The development of mechanised thinning and pruning will not only make silviculture operations safer, more efficient and more precise, but also enable them to integrate into mechanical extraction of now increasingly valuable forest biomass,” Paul Adams says.

“Using machinery and remote sensing through our silviculture operations lets us keep very accurate records of how well the trees in the forests are doing. At the moment the usual way of assessing the growth and quality of a forest is through someone going in and measuring a few samples. Using technology to measure the development of each and every tree and batch of seedlings would be a quantum leap in management and ultimately much more precise breeding selection as well.”

Mr Adams adds that remote sensing will enable the already small volume of herbicide use in forest nurseries to be reduced: “And we are looking at using water retaining gels for the seedling roots, which is not practical at present.

“That could extend the planting season from four to six months and into drier areas and periods, which will occur in most regions with climate change.”

Mr Nash adds that the investment is part of the Government’s wider plan to provide economic security to workers and businesses, with higher skilled and high-wage jobs that support a low-emissions economy.

“Advancements in mechanisation and precision automation will make the recovery of forest waste more financially viable. This will unlock potential to use biomass waste in new manufacturing chains. This could include biofuels and biodegradable alternatives to plastic products, such as disposable cups and packaging.

Agriculture Minister Damien O’Connor says that the timing is right for this programme with a large number of forests planted in the 1990s due for harvesting in the mid-2020s.

“Other benefits will be an improved pruned log supply for domestic wood processors, and use of the technology in indigenous forest establishment,” he says.

The Smart Spade.

Four workstreams

The Precision Silviculture programme Involves four workstreams:

Workstream one Nursery — creating value by improving efficiency: focused on reducing seedling costs to the forest owner. Prototype automation systems focusing on the key bottlenecks in the tree nursery production system will be delivered. The prototype development will span production activities in both containerised and non-containerised nurseries, from seed sowing through to deployment of seedlings in the forest. Workstream two Planting — creating value by mechanisation: focused on reducing the cost of planting by moving from manual planting to multiple mechanical planting and preparation operations. This work will create novel prototype solutions for the delivery of additives that increase plant survival and extend the annual planting season.

Workstream three Pruning — creating value by mechanisation: focused on creating value by reducing the costs of pruning by moving from manual pruning to mechanical pruning equipment. It will deliver prototype mechanical pruning systems that improve the safety and productivity of pruning operations.

Workstream four Thinning – will reduce reliance on manual labour for forest operations and create a safer work environment. It will develop equipment and techniques that will enable forest owners and contractors to undertake costeffective mechanised thinning and extraction operations. NZL

Forestry Minister, Stuart Nash, at the Scion campus being shown drone technology by Henry Fear.

Commercial forestry buys into Western Southland

WESTERN SOUTHLAND HAS BEEN LONG

settled but has never been regarded as a prime region for pastoral farming. A Malaysian company has identified the local farmland in the district around Tuatapere as ideal for commercial forestry.

Pine Plantations Private has bought two blocks of farmland in the Tuatapere District in the last 12 months for the purposes of commercial forestry.

In 2021, the company paid Boundary Creek $NZ 4 million for 457 hectares of farmland.

This year the company purchased 264 hectares of land at number 563 Happy Valley Road Tuatapere, adjoining its 2021 investment. The purchase price was $NZ 2 million and the land was bought from the same vendor, Boundary Creek.

Both purchases required the statutory approval of the Overseas Investment Office. In both cases Pine Plantations Private was granted its request to acquire the land it sought to purchase.

In its decision, the Overseas Investment Office noted that the applicant company “is an experienced forestry investor in New Zealand and the Land (264ha.) adjoins other forestry land owned by the Applicant.”

The office’s decision also notes relating to the second block that, “The Land is currently mostly farm land (approximately 160ha.) with the remainder being mostly pockets of native bush. There are no dwellings on the Land.”

The decision of the Overseas Investment Office states as well, that “By way of background, the Land that is the subject of this application is Land Use Capability (LUC) classifications; LUC4 (2ha.) and LUC 6 (262 (ha.)”

In a prepared statement Pine Plantations Private Limited’s Independent Director, Peter Keach, says foreign investment is essential to meet the Government’s planting targets. The Intergovernmental Panel on Climate Change (IPCC) announced earlier this year that it has calculated that carbon emissions need to peak by 2025 at the latest to give the planet a 50:50 chance of keeping heating inside 1.5*C

While there is widespread scepticism at this calculation, the 1.5C goal was adopted by signatories to the Paris Agreement. In announcing this, IPCC said if this goal is attained it would reduce problems from floods, fires, droughts, pollution, heat waves, disease and plant and animal extinctions compared with heating of 2*C or 3*C (the path of current world policies).

However, Mr Keach says the Malaysian investment at Happy Valley Road was for commercial forestry, not carbon sequestration. He admits that the company would sell any carbon it accumulated. The conversion of the property to commercial forestry will be undertaken by PF Olsen of which Mr Keach is a shareholder and former Chief Operations Manager.

Pine Plantations Private will convert about 160ha of the Happy Valley Road land into commercial Pinus radiata forestry with the new forest to be planted by the end of 2024. Harvesting of the new forest is due to commence in 2048, and replanting of a second rotation will commence once the first rotation of trees is harvested. The first half of the adjoining land was planted last winter, and the second half will be planted this winter, Mr Keach says. NZL

Grooved Drums and Sleeves

Fuel pressure building

TRUCK OPERATORS ARE EXTREMELY CONCERNED ABOUT THE rising cost of fuel and other operating costs, poor roading and driver shortages according to a recent National Road Carriers (NRC) survey.

Respondents ranged from individual owner-drivers through to large trucking companies with more than 100 drivers and support staff. All industry work types were represented among the more than 160 respondents, which were spread across both North and South Island businesses and included a few overseas-owned companies operating in New Zealand.

Across the membership there was shared concern around some common business critical issues, with the top four being: • Nearly 80% of members are extremely concerned about rising costs and inflation around fuel. • 65% of members are extremely concerned about rising costs of other inputs such as fuel additives, tyres and insurance. • 58% of members are extremely concerned about poor roading – which causes increased running and maintenance costs and accidents. • 48% of members are extremely concerned about driver shortages and retention.

NRC Chief Operating Officer, James Smith, says there were no surprises in the findings especially as fuel prices in March 2022 were nearly 60% higher than in the same month last year, and poor road conditions and driver shortages are both longstanding issues – with the driver issue being seriously exacerbated by the COVID pandemic.

Z Energy’s Nicola Law recently gave some context for high fuel prices to FICA members. Over recent weeks we have seen significant movements in the global price of refined fuels driven by international events such as Russia’s invasion of Ukraine with these global price movements flowing through to New Zealand, impacting on increases at the pump, she says.

Global oil markets continue to experience volatility seen following Russian military action in Ukraine at the end of February, coupled with the impacts of embargoes on Russian supplies and associated sanctions on Russian flagged vessels which has put further pressure on the global supply chain.

“Z Energy has, and continues to see, increased price volatility across all grades and shipping as a result of this international event. Russia is the world’s second largest oil exporter, and its oil is of a grade that allows for very efficient refining of mid-distillate fuels such as diesel and aviation gas, which in turn has caused a spike in the costs to these grades,” says Ms Law.

While the barrel costs are in flux and a useful measure in part, it does not tell the entire story, given New Zealand purchases are based on the cost of Gasoil 10ppm (diesel) as opposed to simply the barrel price. We will continue to see volatility in the price of Gasoil for the short to medium term, she explains.

In terms of security of supply, she says diesel, and overall fuel stocks are strong, and supply interruptions are not anticipated regardless of the global situation.

“The closure of the Marsden Point refinery and New Zealand moving to an Import Terminal System on April 1st has long been planned for, and scheduled deliveries are already on the water in line with our refined product needs. We are ever conscious of the role our products play on New Zealand businesses and their ability to keep us moving,” she says.

“We trust that the current events driving uncertainty will settle down sooner rather than later so we can all get back to some degree of normality.” NZL

tdxltd.co.nz/ourstory

The new name for TransDiesel

The McDougall Logging crew at work.

Taking control

THE NEW ZEALAND FORESTRY INDUSTRY BLEEDS AN EXCESS

of $130 million annually in lost productivity. This equates to 800+ forestry crews losing 10 to 15 hours per month at an average cost of $1200 per hour. Unplanned hose failure plays a large part in this lost productivity. As forestry contractors are mostly paid by the amount of wood they can move, it’s crucial to keep machines working.

For the last seven years BOA Hydraulics has been enabling change to the hydraulic hose industry, helping customers to understand the true cost of their burst hydraulic hose and machine downtime and giving them the ability to undertake their own repair and maintenance work, using their own tools and inventory.

McDougall Logging was an early adopter of BOA’s World Fastest Hydraulic Hose Repair Solution, having the hose repair trailer onsite for over three years now.

“The main reason we went to the onsite BOApod trailer is that it’s on the job, onsite. You blow a hose that you don’t have a spare for and you’re up and running in 15 minutes. It certainly has been well worth its weight in gold,” says Raymond McDougall, owner of McDougall Logging.

“We could be waiting anywhere from an hour to an hour-and-a-half for a hose doctor to get out to site. So straightaway there is an hourand-a-half that you are waiting to be up and running again. Where with this BOApod onsite, we are up and running in 15 to 30 minutes max. If you weigh that up out of a week, you have saved maybe twoand-a-half hours in a week, which is definitely a savings!”

It’s common sense that keeping on top of machines with preventive measures is the best approach to avoid larger issues later. With the BOApod, McDougall Logging has the control to perform hydraulic hose maintenance, changing hoses before they blow.

“The money that you save in downtime, and pouring oil on the ground, outweighs the cost of the trailer,” Mr McDougall says. “Plus you’re not holding the crew or a truck up because you can get it sorted before it blows to pieces. If you look at it overall, changing our operating model to use preventative maintenance with the BOA solution is certainly beneficial for what we are doing out here. If you are remote, I can’t see why you don’t have one. I would recommend the BOApod to anyone that is 30-40 minutes out of town – you will save money.” NZL

Less energy, more timber

ONEFORTYONE JUBILEE SAWMILL’S

second Continuous Drying Kiln (CDK) is now online, completing a $16 million capital investment project at the site in Mount Gambier.

Jubilee Sawmill General Manager, Paul Hartung, says the kilns are working well and have increased site capacity while improving the quality of the timber dried.

“The CDK’s are powered by our own sawdust and wood waste offcuts, and their efficient design is using less energy to process more timber compared to our old batch kilns,” he says.

“With the old batch kiln we put 150m3 of timber in at a time, drying it at up to 160 degrees to achieve a moisture level down to 12%. These high temperatures can stress the timber.

“With the CDK, we load the timber to move through the drying process. With the efficiencies of shared energy and temperature control, the new kilns have a maximum temperature of 130 degrees which is a lot less aggressive on the timber as it dries.”

Two of four older batch kilns will be reconditioned and remain on site to provide added flexibility and backup for when the CDK’s are offline for maintenance.

The upgrade project is part of a greater Jubilee-wide modernisation program, which has included sawing equipment upgrades and the addition of robotic pack wrap and strapping machines.

“The upgrades and new equipment on site are creating better and safer working environments for everyone,” says Mr Hartung. “The team is also getting the opportunity to gain new skills, work with the latest technology, and enjoy a safer and more modern workplace.” NZL

New name, same values

TRANSDIESEL, A LEADING SUPPLIER OF CONSTRUCTION

equipment, diesel engines and transmissions, as well as consumable and lubricant products to the heavy-machinery industry, has undergone a facelift with a name change to TDX.

“Our continued goal of delivering exceptional customer experiences as well as a focus on technology, innovation and sustainability are key drivers for this update to TDX,” says CEO Colm Hamrogue.

“It marks an exciting opportunity to develop the business and prepare the brand for opportunities over the coming decades.”

TDX employs almost 300 people across a nationwide network of 18 branches and has grown from small beginnings in the early 1980’s to an annual turnover of over $200M.

“The evolution to TDX reflects our maturing as a company, one which had an initial focus on diesel engines and transmissions, to one which now partners with some of the world’s biggest and most recognisable names, including Volvo and Yanmar construction equipment, Shell lubricants as well as Perkins, Sennebogen, Kohler and Allison Transmissions,” says Mr Hamrogue.

One consideration which remains very much front of mind for the TDX team is an overwhelming desire to retain a Kiwi-centric focus, he adds.

“We recognise and respect 40 years of heritage and are enthusiastic to build on this legacy for the next 40. Above all else, we want to reinforce that TDX is local.

“We’re locally owned, assist locals and want locals to succeed. Our customers know and trust us, that’s something that is never going to change.”

As part of the commitment to bringing the brand alive locally, TDX is launching an initiative to support local customers and their communities.

Each branch will have funding to support local causes, charities or events, specifically those with a strong environmental and/or social element, that enable people and communities to come together and thrive.

As part of launch celebrations and to get ‘supporting local’ underway, TDX is thanking all of its people with a Prezzy Card and the instruction of ‘do what you want with it, but make sure you spend it with a local business or charity’.

“It’s a small but significant statement about helping others and keeping things local, an example of how our people can make a difference to the communities they belong to,” he adds.

The rebrand to TDX as well as fresh identity was spearheaded from within the company and involved consultation across a variety of key stakeholders including staff, customers and suppliers.

“The new name and logo is a nod to the foundations of our brand, a promise to customers and commitment to add value to our partners,” says Marc Warr, Marketing Manager.

“We’re confident that we are remaining true to our heritage, at the same time making a positive and future-focused statement that will stand us in good stead for decades to come.”

The design of the new logo also holds particular significance.

“The arrow illustrates moving forward together with our customers and the hexagon demonstrates the importance of partnership between our people, customers and suppliers,” he explains.

“As for the ‘X’, it represents the customer-focused difference we’re renowned for, a world-class service experience we’ve made our own and will continue to deliver into the future.

“It’s an exhilarating time to be a part of the TDX team and the new developments are symbolic of a dynamic future for the brand.”

The new website is live and the roll out of new branding will be introduced on all sites over coming months, including uniforms, building signage and customer-facing interaction opportunities. NZL