logic forest solutions ltdlogicfsl.co.nz/assets/4e8d13525e/logic-fsl-business-profile-2020.pdf ·...

BUSINESS PROFILE

LOGIC FOREST SOLUTIONS LTD

Wi Pere Trust - Forest Management Proposal

46 Childers Road, Gisborne 4010

P: 06 863 2447

E: [email protected]

W: www.logicfsl.co.nz

mailto:[email protected]

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Logic FSL – Business Profile

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

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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.

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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.

Health and

Safety and

Environmental

Management

Logic FSL operates a comprehensive, up to date Health, Safety and Environmental

Management system. The HSE policies and procedures are updated regularly to keep abreast

of any legislative changes and ensure continuous improvement. These documents set the

standard for health, safety and environmental compliance and ensures that best practice is

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.

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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.

Technical

Capacity

Logic FSL strongly believes in adapting to the fast pace of technology, as such currently utilises:

• iAuditor is a cloud-based system used to undertake regular auditing of both H&S and

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.

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Logic planning meeting – Matt Main, Jessie Bourke, Richard Smith

Contractors

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

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.

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• 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

Insurance

Logic has the following insurances –

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

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Administration

Logic FSL have robust and proven administration systems to support a large array of financial

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

Establishment

Logic FSL work closely with MPI – Te Uru Rakau to advise on the current ETS scheme and

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.

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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.

Silvicultural and

Annual

Management

An annual management fee is charged to the forest owner after planting to cover administration,

forest mapping, operational planning, programming and scheduling, forest management

records, regular forest inspections, contract inspection and negotiation, correspondence and

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.

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Operations – Harvest Management

Inventory

Mapping and

stumpage

estimates.

Stand stumpage estimates are derived from gathering accurate stand information. From this

data informed decisions can be made by the forest owner as to the optimum harvest age and

seasonal timing dependent on log markets. Logic FSL focuses heavily on accurate forest

mapping which is critically important to measure NSA (net stocked area). Pre-Harvest

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

and Allocation

Logic FSL currently manages 280,000 - 300,000 tons (approx.) of logs per annum. Logic have

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

planning

Logic FSL has vast experience in harvest planning and this contributes to a large proportion of

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

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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.

Roading and

Engineering

As roading forms a large part of harvesting expenditure, accurate, cost-effective plans need to

be created and monitored. Logic FSL have partnered with highly experienced contractors and

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.

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Roadline and

Clear-fell

Harvesting

Logic FSL have developed strong partnerships with our harvesting and roading contractors

which has allowed us to work closely together to offer the best solutions for our clients.

Wherever possible harvest plans are developed in conjunction with our contractors, enabling

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.

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