LOGIC FOREST SOLUTIONS LTD - BUSINESS PROFILE Wi Pere Trust - Forest Management Proposal
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BUSINESS PROFILE LOGIC FOREST SOLUTIONS LTD Wi Pere Trust 46 Childers - Forest4010 Road, Gisborne Management Proposal P: 06 863 2447 E: admin@logicfsl.co.nz W: www.logicfsl.co.nz
2 Business Profile – Logic Forest Solutions Ltd Introduction Logic Forest Solutions Ltd (Logic FSL) is a 100% locally owned, Gisborne based forest management company providing a range of services to both small woodlot and corporate forest owners primarily in the East Coast region, and more broadly throughout New Zealand. The company was established 21 years ago primarily for the provision of harvest planning, road engineering and pre-harvest inventory services to the East Coast region. Currently, the focus is still primarily with harvesting and associated engineering services including harvest planning, road survey and design, and forest mapping. With added interest in both carbon farming and the ETS, Logic FSL has more recently managed large new forest establishment programmes for both Pinus radiata and Manuka afforestation for both carbon and honey production. By combining our technical expertise throughout the supply chain from forest establishment and management, to harvest planning, engineering and marketing we can provide the client with a seamless management service. Logic FSL have a strong focus on Health and Safety and Environmental management. We are a small hard-working team with the necessary skills and experience to deliver a safe, environmentally sound, productive and cost-effective operation. Underlying these requirements is the necessity to maximise returns to the Forest Owner. The management team consists of three full time operational Directors led by Richard Smith who started the company in 1999. The Directors are well supported by experienced staff all of whom are tertiary qualified and highly skilled in their respective roles. Together the team brings an abundance of skills and experience throughout the forest industry. Directors from left: Ben Williams, Richard Smith and Matt Main Logic FSL – Business Profile
3 Additionally, Logic FSL strongly believe a large part of our success is gauged by the quality of our contractors, and as such, Logic has developed strong long-term relationships with highly skilled, professional contractors in all levels of our business. All Harvesting Contractors are now Safetree certified. The Logic team is composed of the following: Richard Smith – Managing Director Since its inception, Richard has successfully led Logic FSL through the industry ups and downs. Having worked in all aspects of the New Zealand forestry industry for over 25 years he has gained a wealth of knowledge, experience and networks. Richard is an expert in harvest planning where his skills have proven him to be one of the top planners in New Zealand. He is respected throughout the industry and his services are sought after nationwide. Richard is honest, authentic and with an open and transparent style. He has a passion for supporting and mentoring young people in the Industry. Ben Williams – Director – Operations Manager With experience that covers a wide range of forestry operations, Ben’s skills are valuable in any forest situation. His focus is Harvest planning and management and has more recently specialised in Woodlot planning, engineering and harvesting. Coming from a background in farming Ben understands and can implement processes to reduce the impact on farming whilst getting the best returns from the Woodlot. Ben is a great communicator and the ideal liaison between all stakeholders. Matt Main – Director – Technical Operations Manager Technical forestry, in all aspects of forest mensuration is where Matt began his forestry career. Being Logic FSL’s technical expert he is innovative with a flair for introducing new technology to enhance operational practices. Having worked in all areas within Logic FSL over the past 10 years Matt has developed his skills as a harvest manager, planner and roading engineer, exponentially. Matt is efficient in the field, a quick thinker and problem solver who will make sure the job gets done no matter what the obstacles. Madeleine Teneti – Office Manager / Accounts / GIS Mapping Madeleine is skilled in accounts with a strong background in administration and financial management, primarily in a small business environment. She is constantly looking for ways to create efficiencies within the business. More recently she has moved into a GIS role with Logic FSL. She manages this process and is effectively developing her skills in this area. Logic FSL – Business Profile
4 Jessie Bourke – Health & Safety / Compliance Manager Jess has a background in risk management and emergency medical logistics. She has a passion for education and engagement regarding all thing’s health, safety and well-being in the workplace. Jess has fresh ideas and is quickly becoming the go to Health and Safety and Compliance professional in the East Coast region. Daniel Laffey – Operations / Environmental / GIS Mapping Having recently joined Logic after 4 years with a larger corporate forest company in Gisborne, Daniel is technologically savvy and has a variety of skills including environmental compliance and certification, GIS and mapping, aerial data capture and analysis and operational supervision. Daniel easily fits and is developing into a strong member of the Logic FSL team. Logic FSL operates a comprehensive, up to date Health, Safety and Environmental Health and Management system. The HSE policies and procedures are updated regularly to keep abreast Safety and of any legislative changes and ensure continuous improvement. These documents set the Environmental standard for health, safety and environmental compliance and ensures that best practice is Management followed. Logic FSL’s HSE system is audited periodically by our large forest owner clients. Our last audit (late 2019) resulted in an industry first 100% score across the HSE system(s). Logic FSL has a H&S professional as part of the team, responsible for all internal H&S policy and procedures as well as regular auditing and monitoring of contractor H&S systems. Jessie Bourke has a degree in Health Sciences with honours and a Level 4 National Certificate in Health and Safety Management. Within the East Coast region Logic FSL has aligned with the Eastland Wood Council. We recently achieved the EWC goal of having all our harvesting contractors Safetree certified (which is currently the national forestry industry gold standard accreditation) by the end of 2019. Previously, Logic FSL achieved Tertiary accreditation (the highest level) in the ACC Workplace Safety Management Practices programme in early 2017. Logic FSL’s H&S system is audited periodically by our large forest owner clients. Health and Safety assistance, business consultation and systems audits are all services that Logic FSL extend out to other businesses and trusts. Logic FSL currently offers and has successfully helped other contractors achieve Safetree certification. The scope includes forestry business’s such as harvesting crews and earthworks as well as agriculture, horticultural and industrial based businesses. Logic FSL – Business Profile
5 Logic FSL operates under our own Environmental Management System which is also updated frequently. This document sets the standard for environmental compliance and ensures that best practice is followed. There is a strong focus on environmental compliance and there is an environmental expert as part of the team. Daniel Laffey has an in-depth knowledge of the Resource Management Act and associated legislation and was pivotal in maintaining environmental accreditation for his previous employer. Ben Williams has been heavily involved with the evolving GDC resource consenting process for several years. More recently he has developed a strong understanding of the National Environmental Standard for Production Forestry (NES PF) and has an in-depth knowledge of its practical application to everyday forestry operations. Ben has been a member of the EWC Environmental Working Group since 2015. Logic FSL strongly believes in adapting to the fast pace of technology, as such currently utilises: Technical • iAuditor is a cloud-based system used to undertake regular auditing of both H&S and Capacity environmental performance across all operations. Provides a platform to report real time back to clients. • RoadEng Survey and design (Road and engineering design software with capacity to directly upload Lidar terrain data. Designs are field set out via Trimble Geo 7x GPS unit to 1cm accuracy) • Fully functioning GIS mapping and remote login GeoMaster via Interpine Innovation. In-house capacity to generate accurate mapping derived from field Drone footage. Qualified and experienced staff utilising the higher technical capacity in ArcGIS 10.5 • Two Drone aircraft operated by two personnel with 101 CAA recognized competency certificates and currently working towards 102 for advanced commercial operator’s certificate. • Drone Deploy software used to generate 3D elevated terrain modelling. Used extensively for monthly cutover mark ups, NES/RC consent auditing and monitoring, aggregate stockpile surveys, waste cutover assessments, water-way monitoring, mapping, planting and releasing assessment’s, silvicultural mark ups and forest health surveys. • XERO accounting system and SmartPayroll for HR functions. • WorkflowMax an online project management system allowing project tracking, time reporting, job budgets and monitoring. This integrates with XERO the online accounting system. • PS Log which was designed specifically for the forest industry to track acquisition, harvesting and distribution of logs from the delivery docket to logging production, costs and sales revenue. Logic FSL – Business Profile
6 Logic planning meeting – Matt Main, Jessie Bourke, Richard Smith Logic FSL has developed strong, long-term working relationships with highly experienced contractors. It is our business strategy to engage and develop these relationships with high Contractors caliber contractors, as we believe our success and reputation are gauged by the quality of our work and associated contractors. Logic FSL’s current contractors are listed below and it is our intention to use their expertise in their various professions to ensure risk is managed and outcomes are assured to the quality standards required: • McIndoe Logging and Cartage – McIndoe Logging has been working exclusively with Logic FSL for over four years. They are a fully mechanised crew with both hauler and ground base capacity. McIndoe’s adoption of mechanised falling and tethering technology has bought many H&S and environmental benefits to harvesting. They are currently building an off highway, purpose-built forwarding truck to cart logs from hard to reach processing sites. This will enable Logic to offer innovative and cost-effective harvesting solutions which both decrease Health and Safety and Environmental risk and increase returns to the grower by reducing harvesting and roading costs. Additionally, McIndoe Logging provide a fully integrated cartage service to supplement, streamline and control uplift off the skid. • BBL Contracting Ltd – Roadline and construction crew; Tony Shanahan is well known in the industry and has unrivalled experience and knowledge in road line harvesting, road construction and general engineering. BBL are an integrated Roadline and Construction crew. Logic FSL – Business Profile
7 • Tahurua Earthworks – Earthworks Specialists with a full range of machinery and skilled operators to undertake all required earthworks and pavement formation. Hayden Bruce has worked extensively around the Gisborne / East Coast region and has a large network of both farming and forestry clients. • Gisborne Helicopters – Logic FSL has a long-standing working relationship with Gisborne Helicopters who have experienced pilots providing all our spraying, transportation of seedlings and pest control when required. • Stone Forestry – Planting and releasing contractors with a crew of approx. 25-30 planters and experienced pruners and thinners for all our silviculture projects. Logic has engaged Stone Forestry for many years ensuring exceptional establishment and Silvicultural results. • Overhead Solutions Ltd – Logic FSL and Hana Ormond have worked together on numerous past projects. This company specialises in data collection and quality control plotting. McIndoe Logging - Sherbrooke Woodlot harvesting with a 123 Madill Grapple Swing Yarder Logic has the following insurances – Insurance 1. Commercial Motor Vehicle 2. Management Shield (Broadford Insurances, Statuary Liability, Employers Liability, Employment Disputes, Directors and Offices, Fidelity, Internet Liability, Legal Prosecution Defence) 3. Professional Indemnity 4. Public Liability Logic FSL – Business Profile
8 Logic FSL have robust and proven administration systems to support a large array of financial Administration transactions and fortnightly/monthly contractor payments. Logic FSL uses Xero accounting software in tandem with Workflow Max which is an integrated project management and timekeeping software package. Madeleine Teneti has vast experience and ensures these systems are running efficiently and the appropriate reports are being created. Contractor area “mark ups” for work completed are measured in the field by drone footage and accurately mapped along with supporting quality control data, specific to the operations completed. PS Log is a woodflow and docket reconciliation software package which was designed specifically for the forest industry to track acquisition, harvesting and distribution of logs from the delivery docket to logging production, costs and sales revenue. All operations are fully reported in terms of Health and Safety and Environmental using specifically designed i Auditor software. Additionally, full financial reports are also completed with all costs directly attributed from actual invoices paid, and all revenues received. Key indices are reported by actual versus budget and graphed to visually see how the project is performing. Operations – Forest Establishment Forest Logic FSL work closely with MPI – Te Uru Rakau to advise on the current ETS scheme and Establishment potential funding schemes available. Land use feasibility studies are completed on behalf of our customers to best advise on the following – • Suitability of land use for the establishment of a forest • Objectives of new forest establishment and likely carbon and clear fell returns • Species choice and “right tree in the right place” • Funding and NES- PF (National Environmental Standards for Production Forestry) considerations • Risk assessment • Cash flow forecasts and operational budgets Lead by Matt Main, Logic FSL have an experienced team to project manage the establishment of a forest. Management plans and operational budgets are prepared for the client ensuring objectives are well defined and all risks are assessed. Operations will not commence until these plans and budgets have been discussed and approved. Accurate maps are generated from our GIS mapping system and any necessary consent or NES applications for forest establishment are prepared and submitted to the appropriate Council. Logic FSL – Business Profile
9 Large scale commercial Pinus radiata establishment undertaken by Logic FSL – Tuakau Blk- East Coast. Tree stocks are ordered well in advance to ensure adequate supply for the next planting season. Fencing, tracking, pre plant spraying, planting, pest control, survival counts, and release spraying are all undertaken using experienced contractors. Thorough documentation of all operations and strict quality control systems are implemented to ensure high quality and cost-effective establishment of new forests. An annual management fee is charged to the forest owner after planting to cover administration, Silvicultural and forest mapping, operational planning, programming and scheduling, forest management Annual records, regular forest inspections, contract inspection and negotiation, correspondence and Management reporting, liaison with the customer, farm staff and neighbours. Budgets are prepared for either clearwood or framing regimes with options to prune or not to prune. A cost benefit analysis is presented to the customer with supporting cash flows and current log market considerations included to ensure an informed decision is made regarding silviculture expenditure. Timing of silvicultural operations are monitored closely to ensure the best results are achieved in terms of clearwood production for pruned stands, and to maximise volumes of high grade saw logs for framing stands. Pruning and thinning is undertaken outside of the planting months (May-August) by professional contractors with regular reporting, quality control and final budget versus actual reports completed for all operations. Contractor pricing is regularly bench marked by tendering out work packages to ensure the market sets the prices. Logic FSL – Business Profile
10 Operations – Harvest Management Stand stumpage estimates are derived from gathering accurate stand information. From this Inventory data informed decisions can be made by the forest owner as to the optimum harvest age and Mapping and seasonal timing dependent on log markets. Logic FSL focuses heavily on accurate forest stumpage mapping which is critically important to measure NSA (net stocked area). Pre-Harvest estimates. Inventory also further enhances accuracy to further determine stand valuations. Growth models derived from tree assessments in the field are also used to model stand growth and present feasibility options on harvest age and returns. Stumpage estimates are then prepared and presented to the forest owner and updated on a regular basis to monitor and capitalize on a favourable log market. Marketing Port Logic FSL currently manages 280,000 - 300,000 tons (approx.) of logs per annum. Logic have and Allocation developed a long-term working relationship with Pacific Forest Products (PFP), New Zealand’s leading log export company nationwide and the main log export company out of Gisborne. The PFP New Zealand based Sales and Marketing team travel extensively to the markets and have strong relationships with their customer base. They also have a good association with the Port operations in each of their discharge ports. PFP currently ship to 33 Ports in the Asia Pacific Region with cargoes supplied from New Zealand, Australia and Uruguay. AWG prices are bench marked by receiving monthly pricing schedules from other log exporters operating out of Gisborne. Our long-term supply over many years to PFP allows Logic FSL to negotiate fixed pricing when appropriate. This gives price assurance to the customer and eliminates market risk in a falling market. Additionally, through this long-term partnership Logic FSL have secured a significant amount of port storage at Eastland Port meaning secured allocation with no additional offsite storage charges to date. Pressure on port space will increase as the district increases its cut and having this port allocation will mean a distinct competitive advantage. This saving will be passed on directly to our customer’s. Harvest Logic FSL has vast experience in harvest planning and this contributes to a large proportion of planning our overall business. Contracts have extended throughout New Zealand with current work predominantly located in Gisborne, Hawkes Bay and in the Central to Lower North Island area. Harvest Planning has recently become more detailed with the introduction of tougher council regulations and the NES-PF. Thorough harvest planning ultimately predetermines positive Logic FSL – Business Profile
11 harvesting outcomes in terms of environmental, safety, social and financial results. Accurate and detailed harvest and roading plans are field verified before being entered into GIS mapping systems. These plans form the basis of accurate resource consent or NES PF applications that need to be prepared and submitted to the appropriate council. They will also assist in freshwater consents for crossings or large engineering structures. As roading forms a large part of harvesting expenditure, accurate, cost-effective plans need to Roading and be created and monitored. Logic FSL have partnered with highly experienced contractors and Engineering have developed a team approach to road construction and associated engineering. Higher levels of compliance under resource consent and NES-PF conditions have significantly increased roading costs. Expenditure can quickly escalate due to poor planning, poor construction practices, and poor supervision. Logic FSL have developed sound robust systems to ensure this risk is mitigated as much as possible. Road survey and design via Softree software is utilised where necessary to ensure difficult road sections (switchbacks, stream crossings and end haul sections) are engineered to minimise earthworks, calculate cut and fill volumes, maintain workable road grades and alignment and to avoid failure. This technical engineering design is completed in house by Logic FSL staff and ensures the contractor has a design and set out to follow. A strong focus is placed on water control and maintenance of the roading networks to avoid costly clean-up work and potential compliance issues after storm events. Full documented reports are provided monthly to our customers detailing incidents, environmental monitoring audits, earthworks completed, post-harvest clean-up work, and monitoring of earthworks financial budgets. New Roading Old Dome Road, Dome Forest, Mangatu Blocks Inc. Logic FSL – Business Profile
12 Logic FSL have developed strong partnerships with our harvesting and roading contractors Roadline and which has allowed us to work closely together to offer the best solutions for our clients. Clear-fell Wherever possible harvest plans are developed in conjunction with our contractors, enabling Harvesting efficiencies in both road and skid construction and harvesting. Logic FSL focuses heavily on Health and Safety and the environmental aspects of all its operations. Good operational planning minimises health, safety and environmental risk and leads to higher production lowering logging rates. Logic FSL has frequent onsite meetings and ensures thorough preharvest documentation is discussed and understood by all involved. Site visits and documented inspections are completed regularly to ensure operations are compliant and contractors are working to best practice standards. All blocks have a post- harvest inspection completed that is signed off by the Contractor and Forest owner. Logic FSL is a member of the Eastland Wood Council and all staff, contractors and their employees undertake pre-employment and random drug testing on a regular basis. Over recent years there has been a push for fully mechanised harvesting crews, particularly in the high-risk areas of tree falling and breaking out. Tethering and mechanised tree falling are becoming more common and Logic FSL have a number of Contractors leading the way in this area. Other benefits from mechanisation include better recovery of high valued pruned logs, increases in production, reduces our environmental footprint by less tracking and protection of native riparian’s, and significantly reduces our safety risk. Long term partnerships with our contractors have encouraged increased innovation with harvesting methodologies and the adaption of new techniques. Recently, Logic FSL and McIndoe Logging have planned and proposed large areas of harvest for a stage truck operation. Initial analysis has shown that significant cost savings are achieved by reduction in roading densities, large earthworks, and skid site area. Efficiencies are created with log cartage and log storage at a single processing point. Safety risk is reduced as is environmental risk with a smaller disturbance footprint . During challenging times in the industry we firmly believe that doing what we have always done, with similar results is not a desirable strategy, and we should be always open to trailing new things for the benefit of our customers, our people and the land we all work on. Logic FSL – Business Profile
13 Logic FSL – Business Profile
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