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Five-star safety ratings for two NZ transport companies

Australian timber industry news - Fr, 28/03/2025 - 00:45
Two Nelson-Tasman transport companies, Stuart Drummond Transport Limited and Borlase Transport, have achieved the prestigious five-star rating in the Log Transport Safety Council Health and Safety Contractor Audit, placing them among only 14 companies nationwide to receive this elite recognition. Source: Timberbiz This achievement represents the highest level of safety excellence in the log transport industry and reflects both companies’ unwavering commitment to maintaining the highest possible standards in their operations. “We are incredibly proud to have achieved a 5-Star rating in the Health and Safety Contractor Audit. Safety has always been a top priority for our company, reflected in both our resources and the commitment and dedication of our entire team. It’s rewarding to see that when tested against a rigorous industry audit, we have achieved the highest result,” said Harry Llewellyn, General Manager of Stuart Drummond Transport. “This achievement is truly a team effort – from our workshop team to our drivers and office staff. High standards must be demonstrated across all areas of the business, and this result is a testament to the collective dedication of our team.” Steve Borlase, Business Manager for Borlase Transport Reaching said that reaching this five-star benchmark reflects years of continuous improvement and the team’s daily commitment to safety. “We’re proud to be part of this exclusive group of transport operators who set the standard for safety in New Zealand,” he said. Both companies serve as key transport partners for OneFortyOne’s New Zealand Forests business, handling the critical task of safely transporting logs from forest to market. “Working with partners who prioritise safety at this level is fundamental to our operations,” said Shaun Truelock, General Manager of OneFortyOne’s New Zealand Forests business. “Their achievement of this five-star rating reinforces our confidence in their operations and aligns perfectly with our values of safety, excellence, and responsibility. When you see these trucks on the road, you can be confident they’re meeting the highest safety standards.” The Log Transport Safety Council Certified Contractor Audit is a rigorous assessment that evaluates transport operators’ health and safety systems, operational procedures, and compliance standards. The five-star rating represents exceptional performance across all measured criteria. This recognition comes at a time when safety standards in the transport industry are increasingly important, with customers and communities alike expecting the highest levels of responsibility from operators handling large loads on public roads. Both transport companies look forward to maintaining these elite standards and continuing their successful partnerships with clients who value safety excellence.

Tas freight scheme is a good start but only a start

Australian timber industry news - Fr, 28/03/2025 - 00:44
The Tasmanian Forest Products Association has welcomed a $181.9 million ongoing commitment to the Tasmanian Freight Equalisation Scheme announced in this week’s Federal Budget, describing it as a good start for Tasmanian businesses. Source: Timberbiz However, TFPA Chief Executive Officer Nick Steel said the Federal Government must do more to assist Tasmanian businesses, including those in our sustainable forest industry. “Our industry is pleased to see the Federal Government responding to last year’s Senate Inquiry into the TFES, but to ensure the scheme remains fit for purpose the government needs to commit to ongoing review and modernisation of the program,” Mr Steel said. “This scheme was set up almost 50 years ago and it’s clear that, in its current state, it’s no longer working for Tasmanian businesses. “Being an island, Tasmania is at a distinct disadvantage compared to other states when shipping goods to their markets. The Whitlam Government introduced the TFES in the 1970s to go some way to level the playing field between mainland and Tasmanian businesses. “While we welcome to Federal Government’s commitment to rebalance the weighting for the different classes within the scheme, to arrest the class shift that has occurred over the past fifty-years, ongoing review and modernisation needs to continue – otherwise we will see the same issues occur moving forward.” Mr Steel said the TFES remains a key pillar of the TFPA’s Federal Election priorities, and the association will be working with all sides of politics to ensure the program continues to work to improve opportunities for Tasmanian forestry businesses. “We will be urging all parties to back the modernisation of the scheme to ensure it restores some cost parity and ensures an adequate indexation rate to enable businesses to participate in interstate and international trade on a more level playing field,” Mr Steel said. “Australia is currently in a cost-of-living crisis. It’s being particularly felt here in Tasmania, not only by consumers but also by businesses trying to sell to the other states. “That’s why all political parties must commit to doing everything they can to ensure Tasmanian businesses can compete fairly with their mainland competitors.”

Long-term timber demand shored up by increased supply

Australian timber industry news - Fr, 28/03/2025 - 00:43
Publication of the Wood Volumes Analysis indicates Australia has reliable access to structural forest and wood products to meet future demand. The report provides an analysis of the long-run supply of and domestic demand for wood products in Australia, particularly those used in construction. Source: Timberbiz Executive Director of ABARES Dr Jared Greenville said that the findings reflect the diverse timber supply available to Australians and that demand is likely to continue to increase. “Timber is a valuable resource, widely used in Australia’s construction sector,” Dr Greenville said. “Demand for construction related timber is expected to grow by about 50% by 2050 as the population increases, but the final volume will vary depending on our future preferences for housing types, with some houses using more timber than others. “On the supply side, the report indicates that Australia’s domestic log availability is projected to increase by approximately 70% through to 2055 with a record availability of 16.8 million cubic metres per year of softwood sawlogs for residential construction in 2050-2054. “Australian plantation managers are working hard to maintain and optimise log availability, and they are working alongside mills to increase the output and variety of timber products available to the domestic market.” International markets have been crucial to meet wood demand, particularly in times of short-run growth. “The long-term nature of forestry production can mean that pressure is placed on supply if there is a short-run surge in demand. In those times, access to international markets has provided access to key wood product supplies, helping maintain the momentum in domestic construction,” Dr Greenville said. “Global markets are expected to continue to be a reliable source in the future, despite the disruptions seen through COVID, when global freight was delayed. With strong global log availability and advances in technology and innovation we are expecting global trade in forest and wood products to continue.” More information or to download the report visit: https://www.agriculture.gov.au/abares/research-topics/forests/forest-economics/forest-economic-research/australian-wood-volumes

New Forests establishes Future Forest Innovations Fund with Oji Holdings

Australian timber industry news - Fr, 28/03/2025 - 00:43
New Forests has entered into a partnership with Oji Holdings to establish the Future Forest Innovations Fund, a corporate forest investment fund to help it achieve its 2030 environmental goals. The partnership sees an almost US$300 million investment from Oji Holdings, along with a co-investment from New Forests. Source: Timberbiz Through the fund, Oji will seek to invest in productive plantation forestry assets in Southeast Asia, North America, Latin America and Africa, that both generate a financial return and provide considerable climate benefits. Oji will seek to target an additional 1.5m tCO2e per annum of net sequestration by 2030 from the forestry assets it acquires. Oji Holdings is already a significant investor in plantation forests globally with 635,000 hectares and through this partnership, seeks to invest in an additional 70,000 hectares of plantation forests, across greenfield and brownfield assets in the four main regions. New Forests will draw upon its 20-year history managing forests sustainably for financial, environmental and community impacts, while focusing on an improvement in genetics, implementation of leading information and analytics systems, and advanced application of geo-spatial data across forestry assets. “We are excited to partner with Oji, one of the world’s leading manufacturers of pulp and paper, to establish the Future Forest Innovations Fund as a new initiative that leverages our 20 years of experience managing forest investment funds,” Mark Rogers, Chief Executive Officer of New Forests said. “We are continuing to see momentum and interest from corporates looking to invest in forestry and the natural capital asset class. By investing in sustainable forest plantations in four major regions of the world, we will be assisting Oji to achieve their 2030 mission of growing their sustainable forestry assets and reducing overall carbon emissions.” Oji said that through the operation of this fund, we will combine the diverse expertise of New Forests, an expert in forest management, with our own forest management technologies. The aim is to develop products that use wood resources and contribute to the realisation of a sustainable society. The Future Forest Innovations Fund has been established as an open-ended, Variable Capital Company (VCC) registered in Singapore.

Attention turns to the federal election to deliver investment to forestry industries

Australian timber industry news - Fr, 28/03/2025 - 00:42
Australia’s forestry and forest products sector will turn its attention to the Federal Election campaign following this week’s 2025-26 Budget which the sector believes did not deliver any meaningful new investment to help forestry industries realise their potential for the climate, economy and communities. Source: Timberbiz “The Australian Forest Products Association does, however, welcome a number of small Budget measures and we thank the Albanese Government for that support,” AFPA CEO Diana Hallam said. “We will now shift our focus squarely to the Federal Election campaign to secure what our sector needs as outlined in our Platform – Australian Timber. Australia’s Future, to help fix the national housing crisis, strengthen our sovereign capability in timber and wood-fibre and ensure a healthy and well promoted and understood sector,” she said. “We welcome the additional $20 million for the Buy Australian campaign, but to really drive Australian product in the marketplace, we need the introduction of country of origin labelling to allow consumers to readily choose locally grown timber and wood-fibre. It is currently far too difficult for Australian consumers to discern where timber products come from and we will be campaigning hard for this policy in coming weeks. “The Budget’s $181.9 million in funding for the Tasmanian Freight Equalisation Scheme (TFES) over the forward estimates is acknowledged, but reform and more work is needed to optimise the transport of timber and wood resources across Bass Strait.” Ms Hallam said it was also disappointing that the forest products supply chain, as one of Australia’s largest manufacturing sectors, wasn’t included in the Government’s Budget announcements around green production credits which went to aluminium and iron. She said that as a sector that was truly carbon positive with innovation potential across a range of nation building products including bioenergy options from woodchip and timber residues, the sector really should be at the forefront of the Government’s planning in this policy space. “We also reiterate our support for the $54 million announced over the weekend for prefabricated and modular housing and to assist in certification for this type of manufacturing that timber and wood-fibre businesses are leading the charge on. It is timely that the Government has acknowledged pre-fabrication has expanded from just the old donga to include innovative timber panel systems which are more modern, attractive, affordable and a climate-friendly solution to building,” she said. “So, following the Budget, we will focus on the Federal Election campaign to secure what Australia’s forest products sector needs to realise its potential for the nation and the world and we’ll work with all sides of politics to achieve our goals.”

Opinion: Dr Michelle Freeman – creating a park doesn’t guarantee biodiversity

Australian timber industry news - Fr, 28/03/2025 - 00:42
With the (New South Wales) State Government poised to announce the creation of a Great Koala National Park, a unique opportunity emerges to balance the establishment of protected koala habitats and the preservation of state forests, offering a win for positive environmental, social, cultural, and economic outcomes. Whether managed as national park or state forest, science-based active forest management – the thoughtful and deliberate tending of forests – will be crucial to maintaining and enhancing Australia’s forests, responding to climate change and conserving koala habitat. Simply creating a national park does not guarantee biodiversity conservation. There is no doubt when managed well, national parks benefit the environment and communities by conserving biodiversity, providing for recreational opportunities and cultural wellbeing, storing carbon and providing clean water. State forests, also provide all of these values, along with recreation and eco-tourism opportunities, timber and non-timber forest products. The effective conservation benefit provided by state forests has been demonstrated by recent research that shows koala numbers remain high and stable in NSW state forest. However, this is not a guarantee, for example, in Booderee National Park, severe declines in native animal species have occurred. Potoroos and bandicoots have had to be re-introduced from nearby state forest after becoming locally extinct within the national park. In the Pilliga Forest the thriving population of koala declined following conversion of state forest areas to conservation reserves. This decline is attributed to changes in management that previously encouraged the growth of eucalypt species favoured by koalas. Given this, it is critical that these lessons be learned and applied if the Great Koala National Park is to truly conserve koala. Equally, it is important to understand the consequences of removing sustainable, renewable, modest and highly regulated native forest timber supply from state forests when creating the new Great Koala National Park. Research has shown that when Australian hardwood timber from native forests becomes unavailable, it is mostly replaced by imported timber, concrete, steel or fibre cement – only in relatively few cases is it replaced by Australian plantation products. The products that predominantly replace native forest timber products have high carbon cost, are less environmentally friendly and represent a much greater sovereign risk. Some groups advocate for Australia to rely solely on plantations for its timber supply. However, claims that such a transition can be done easily are false and oversimplistic. For now, we simply do not have sufficient plantations to replace the wood products sourced from native forests. Increasing the plantation estate needs to start today, however even then it will take decades to meet Australia’s growing timber needs. Addressing this is an important task given that every recent global climate-change mitigation strategy highlights the increased use of wood as a substitute for materials with high carbon emissions. Managing the threat of bushfires is another key consideration. Effective conservation recognises and embraces the role of year-round fire management in maintaining healthy forests. The reality is that converting state forest to national park causes a loss of capacity that seriously undermines efforts to prepare for, and respond to, future bushfires. Lessons from Victoria show the difficulty and high costs of maintaining the skill and capacity of expert fire contractors following closure of the state forest industry that provides their core work. Deciding which areas become a Great Koala National Park presents the NSW Government with a significant opportunity. Through striking the right mix of national parks and state forests we can meet the many and varying needs of society and the environment. By adopting holistic and science-based approaches, the NSW Government can demonstrate that it is possible to simultaneously achieve all the benefits flowing from well managed forests. This opinion piece was originally submitted to the Sydney Morning Herald. Dr Michelle Freeman, Science Policy Officer Forestry Australia

Analysis: Allan Laurie – export log sales are facing head winds

Australian timber industry news - Fr, 28/03/2025 - 00:41
The good steady run of reasonable pricing across export log sales over the last five months is now facing some head winds as a number of factors line up to potentially see some downward pressure on wharf gate log prices in Q2. A weakness in demand in China is being primarily driven by a combination of tariff concerns, domestic prices dropping and manufacturers lacking confidence. This is having a broader cumulative impact with most export agents experiencing buyers starting to refuse to issue contracts and Letters of Credit. Most are saying they believe prices will drop and they are waiting to see where the bottom is. Whilst we might otherwise have a sense of history repeating, this time any movements being quoted appear to be suggesting a few dollars only. All are quoting the Trump factor as causing as much nervousness amongst hina manufacturers as any single element. Increases in shipping costs are starting to be the order of the day with up to US$10 per cubic lifts for some voyages. The Red Sea Conflict is not helping. With Houthis rebels attacking commercial shipping, hundreds of vessels are diverting to the longer route around Cape Horn to get to the UK and Europe. Some commentators have suggested shipping costs are returning to slightly above where they were pre COVID. This is not good news for those with an expectation the new levels could be short lived. Erstwhile back in China, the total softwood log inventory has remained unchanged at about 3.9mil m3 and off port sales have been running along at around 60,000 per day. Again. the market fundamentals are not entirely unfavourable, so we do not expect the market to crash as it did in Q1 2024. Recent stimulus packages announced by the China government are not thus far adding economic revival to the extent of fixing a massively over stocked housing market. Some commentary has suggested there will be better times ahead as a consequence of the Government targeted spend. In India the signs are more promising. February log vessel arrivals totalled 7 with the same number predicted in March. This is about the right number with inventory falling and some of the distressed cargo held in bond also starting to move. Whist we can expect to see better price stability in India, shipping remains the most significant challenge, both in terms of cost and availability. The net impact of the current tariff on NZ logs is being quoted as the largest ticket item currently preventing us from growing our market share. At present NZ logs sold to India customers attract effectively a US$7 per cubic metre tariff. Thus, many forestry eyes are focussed on our Prime Minister and Trade Minister Todd McClay as they attempt a Free Trade Agreement. The removal of the tariff could add NZ$50 mil + per year to export earnings through a combination of tariff removal and the additional market share that would be created. In a scale context this does not sound like a big number. In reality, the total wood product sales from NZ to India in 2024 was $76mil. Clearly there is much to be done to develop this market. Kiwi Leaders have started by treating this as a front and centre issue. This has the forest industries wide support with clear evidence India has much to offer NZ forest owners. Our domestic sawmill owners seem mostly happy with sales levels just so so. Most seem to believe the impending winter could present scale challenges but there is a consensus new house starts are back on the rise and new sales enquiries at reasonable volumes increasing As with the log grade, the current firming of the NZ$/US$ exchange rate is not helping the bottom line. The perverse is if the illustrious President Trump succeeds with the current tariff impositions, this should help strengthen the US$ thus bring the Kiwi back down. The next two months could be interesting. If China domestic prices swing back up due to demand, we will be Ok. If they do not, it will be batten down the hatches and slow the number of log vessels leaving NZ. Kiwi loggers taking a good long week off at Easter would help. As always, please remember the thoroughly important message, “despite the challenges, it remains, as always, fundamentally important, the only way forward for climate, country and the planet, is to get out there and plant more trees”! Allan Laurie, Managing Director, Laurie Forestry.

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by Dr. Radut