Applying Reduced Impact Logging to Advance Sustainable Forest Management

Home , Afforestation, Liberation cutting

Asia-Pacific Forestry Commission

International Conference Proceedings 26 February to 1 March 2001 Kuching, Malaysia

Edited by

Thomas Enters Patrick B. Durst Grahame B. Applegate Peter C.S. Kho Gary Man

Food and Agriculture Organization of the United Nations Regional Office for Asia and the Pacific Bangkok, Thailand 2002

Table of Contents

The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the permission of the copyright owner. Applications for such permission, with a statement of the purpose and extent of the reproduction, should be addressed to the Senior Forestry Officer, Food and Agriculture Organization of the United Nations, Regional Office for Asia and the Pacific, 39 Phra Atit Road, Bangkok, Thailand.

Cover photos: Kuswata Kartawinata, Francis Ng, Reidar Persson and Thomas Enters

For copies of the report, write to:

Patrick B. Durst Senior Forestry Officer FAO Regional Office for Asia and the Pacific 39 Phra Atit Road Bangkok 10200 Thailand Tel: (66-2) 697 4000 Fax: (66-2) 697 4445 Email: [email protected]

Table of Contents

Foreword

Acknowledgments

1. Introduction - Thomas Enters and Patrick B. Durst

2. Reduced impact logging: concepts and issues - Dennis P. Dykstra

3. Impediments to the adoption of reduced impact logging in the Indonesian corporate sector - A.W. Klassen

4. Helicopter harvesting in the hill mixed dipterocarp forests of Sarawak - Danny Chua Kee Hui

5. Forest harvesting roads: meeting operational, social and environmental needs with efficiency and economy - C.H. Wells

6. Reduced impact logging in Bhutan - Ugyen Thinley

7. Simple measures with substantial impact: implementing RIL in one forest concession in East Kalimantan - Alexander Hinrichs, Rolf Ulbricht, Budi Sulistioadi, Yosep Ruslim, Irwan Muchlis and Djwa Hui Lang

8. Why minimum diameter cutting alone cannot fit with RIL objectives - Plinio Sist, Jean-Guy Bertault and Nicolas Picard

9. Recent advances in training strategy development in support of RIL implementation - Napoleon T. Vergara

10. Improving forest harvesting practices through training and education - Ross Andrewartha

11. Directional tree felling training program: an association’s approach - Peter C.S. Kho and Barney S.T. Chan

12. Forest harvest training - The Sumalindo Project - D. Ed Aulerich and Jefri R. Sirait

13. Reduced impact logging: does it cost or does it pay? - Wulf Killmann, Gary Q. Bull, Olaf Schwab and Reino E. Pulkki

14. Financial assessment of reduced impact logging techniques in Sabah, Malaysia - John Tay, John Healey and Colin Price

15. Financial indicators of reduced impact logging performance in Brazil: case study comparisons - Thomas P. Holmes, Frederick Boltz and Douglas R. Carter

16. Financial and economic analyses of conventional and reduced impact harvesting systems in Sarawak - Aaron Ago Dagang, Frank Richter, B. Hahn-Schilling and Penguang Manggil

17. Financial costs of reduced impact timber harvesting in Indonesia: case study comparisons - Grahame B. Applegate

18. The financial benefits of reduced impact logging: saving costs and the forest A case study from Labanan, East Kalimantan - Muhandis Natadiwirya and Martti Matikainen

19. Improving occupational safety and health: the International Labour Organization’s contribution - Peter Blombäck

20. Safety and occupational health in forestry operations in Australia - Changes in approach through time - Robert McCormack

21. Reduced impact logging in Sarawak, Guyana and Cameroon - the reasons behind differences in approach - W.B.J. Jonkers

22. Building partnerships - Tasmania’s approach to sustainable forest management - Graham R. Wilkinson

23. Progress towards RIL adoption in Brazil and Bolivia: driving forces and implementation successes - Geoffrey M. Blate, Francis E. Putz and Johan C. Zweede

24. Implementing reduced impact logging in the Alas Kusuma Group - Nana Suparna, Harimawan and Gusti Hardiansyah 25. Outcome-based regulations to encourage reduced impact logging - Chris P.A. Bennett

26. Trading forest carbon to promote the adoption of reduced impact logging - Joyotee Smith and Grahame Applegate

27. Addressing the gap between the theory and practice of reduced impact logging - Simon Armstrong and Chris Inglis

28. Incremental cost of complying with criteria and indicators for achieving sustainable forest management - Mohd Shahwahid H.O., Awang Noor A.G., Ahmad Fauzi P., Abdul Rahim N., Salleh M., Muhammad Farid, A.R., Mohammad Azmi M.I. and Amir S.

29. Policies, strategies and technologies for forest resource protection - William B. Magrath and Richard Grandalski

30. Cautious optimism but still a long way to go - Thomas Enters and Patrick B. Durst

Back cover

Foreword

The management of natural forests in the Asia-Pacific region is at a crossroads. Despite some progress toward sustainable forest management, particularly in the years since the United Nations Conference on Environment and Development (UNCED), the area of forests that is sustainably managed remains dwarfed by an ever-increasing area of degraded natural forests. Recognition of this challenging problem has grown substantially in recent years, resulting in stepped-up efforts to protect additional areas of natural forests and improve the management of those forests dedicated to timber production.

Reduced impact logging (RIL) is a key component of sustainable forest management and various timber-producing countries in the Asia-Pacific region have recognized its considerable potential. RIL has been tested in numerous countries and applied on a small scale. Its widespread application, however, is constrained by several impediments, including the lack of sound information. Information is inadequate in a number of areas, but is most acute with respect to the economic and institutional implications of RIL.

The Food and Agriculture Organization of the United Nations, the International Tropical Timber Organization (ITTO), the Center for International Forestry Research (CIFOR), the USDA Forest Service, CIRAD-Forêt and several other national and international organizations have promoted improved timber harvesting for many years. These efforts reached an important milestone with the organization of the International conference on the application of reduced impact logging to advance sustainable forest management, held from 26 February to 1 March 2001 in Kuching, Malaysia. The conference assessed past and ongoing efforts to implement RIL and considered options for future application.

This publication contains papers that were presented and discussed during the conference. Based on their extensive knowledge, the authors address the most pertinent questions and provide a state-of-the-art overview of current thinking and knowledge. The authors and conference organizers suggest that RIL can significantly contribute to sustainable forest management but also flag the many challenges that lie ahead.

In presenting this publication, FAO and its partners are pleased to continue their support for sustainable forest management in the Asia-Pacific region. We hope that this publication will help foresters and policy makers to better understand the key issues, challenges and opportunities concerning RIL. The recommendations, as debated and drafted in Kuching, are clear. Governments, industry, research institutions, and international organizations need to intensify their support for the adoption and widespread application of RIL. Without such concerted efforts, the future of the region’s valuable natural forests is uncertain.

Acknowledgments

This publication is based on papers that were presented at the International conference on the application of reduced impact logging to advance sustainable forest management: constraints, challenges and opportunities, held in Kuching, Malaysia from 26 February to 1 March 2001. The editors would like to thank Mr. Robin Leslie for his editorial support, Gideon Suharyanto for the layout, and Janice Naewboonien who assisted in proofreading.

The international conference was made possible because of the outstanding efforts of many organizations and individuals working in close partnership. The organizers are especially grateful to the staff of the Sarawak Timber Association who provided valuable logistical support and played a key role in making the conference a success.

Core financial support for the conference was provided by the USDA Forest Service, the United States Agency for International Development (USAID), the International Tropical Timber Organization (ITTO) through the pre-project on Strengthening Sustainable Management of Natural Forests in Asia-Pacific, the Tropical Forest Foundation (TFF), the Center for International Forestry Research (CIFOR) and CIRAD-Forêt. The in-kind support by the FAO Regional Office for Asia and the Pacific, the Sarawak Timber Association, the Forest Department of Sarawak and the Ministry of Forestry in Indonesia is also appreciated.

A large number of participants received financial support from a wide range of donors and sponsors to attend the conference. The organizers are grateful to these numerous sponsors who helped make possible the excellent levels of participation from government, industry, non-governmental organizations and research institutions. Finally, the organizers thank all the participants who made presentations and actively contributed in the conference, and the authors who prepared papers for this publication.

1. Introduction - Thomas Enters and Patrick B. Durst*

* FAO Regional Office for Asia and the Pacific, 39 Phra Atit Road, Bangkok 10200, Thailand, Tel: ++(66 2) 697 4000, Fax: ++(66 2) 697 4445, E-mail: [email protected] and [email protected]

BACKGROUND

While there are some who insist that the only way to protect forests from destruction is to ban all forms of timber harvesting, economists have been quick to point out that if timber production were to cease, tropical forests would be viewed by many governments and individuals as a resource of little value - perhaps more logically and profitably converted to other productive uses. Hence, there are a growing number of pragmatists who promote the improved management of the majority of the world's forests that will likely remain outside of strictly protected areas. They contend that improving timber harvesting practices can greatly reduce negative impacts to forests, thereby helping to maintain a natural resource whose productive and sustainable use is important to national economies and local well being.

Forests featured prominently in the 1992 United Nations Conference on Environment and Development (UNCED) and have remained high on the international agenda ever since. People concerned about forests have worked diligently to identify new and better ways to manage forests in a more sustainable manner. Criteria and indicators (C&I), covering economic, social and environmental aspects of forest management, have been developed and tested to help plan, monitor and assess progress toward the new and broader concept of sustainable forest management. Manuals have been prepared to guide the collection and compilation of data required by the various C&I schemes. Certification programs have been established to recognize and encourage sound forest management

Responding to the need to refine timber harvesting practices and techniques, codes of forest harvesting practice have also been developed. The main objective of such codes is to promote harvesting practices that improve standards of utilization and reduce impacts to the social and physical environment. The Code of Practice for Forest Harvesting in Asia-Pacific, published in 1999, complements the recommendations and guidelines by the United Nations' Intergovernmental Forum on Forests (IFF) and the International Tropical Timber Organization (ITTO) by providing additional direction for field-level application. Most member countries of the Asia-Pacific Forestry Commission (APFC) have drafted national codes or similar forest harvesting guidelines.

In recent years, a great deal of attention has focused on low- impact logging, or reduced-impact logging (RIL), as one means for moving toward sustainable forest management. RIL is a systematic approach to planning, implementing, monitoring and evaluating forest harvesting. It has been developed and refined over several decades and new practices and thinking continue to emerge. Various timber-producing countries in the Asia-Pacific region have recognized the substantial potential of RIL in advancing sustainable forest management.

While considerable progress has been made towards some aspects of sustainable forest management in recent years, attitudes and practices on the ground have changed little in many areas. Although initial experiences with RIL - mainly based on research and small-scale projects - are promising, widespread adoption is not in sight. Moreover, despite the flurry of articles published in scientific journals over the last several years on how timber harvesting is transforming from exploitative to environmentally sound and efficient, awareness about RIL and understanding of its concepts and components remain weak. Hence, it should not come as a surprise that some in the industry argue that RIL stands for "reduced-income logging," and many company representatives continue to insist that they cannot afford RIL. Actual field experience suggests that RIL is indeed more costly than "conventional logging" in many instances. In others, however, RIL can actually enhance profitability.

The question of profitability is only one of many issues that arise during discussions on RIL. Although RIL guidelines have been drafted and disseminated, it is still not clear to many what actually constitutes RIL and in what ways it differs from current widely applied logging practices and techniques. While there is broad agreement that more training is critical for sustainable forest management, little is known about the elements and approaches of appropriate training programs. There is also recent recognition of the importance of safety and occupational health issues and the need for tailored incentive schemes to motivate people and organizations to change. There is a lack of adequate information on both issues. There are many uncertainties regarding the economic aspects and the adequacy of current regulatory frameworks.

To enhance understanding of RIL and to promote improved timber harvesting the Asia-Pacific Forestry Commission (APFC), the International Tropical Timber Organization (ITTO), the Food and Agriculture Organization of the United Nations (FAO), the Sarawak Timber Association (STA), the Center for International Forestry Research (CIFOR), the USDA Forest Service, the Tropical Forest Foundation (TFF), the Forest Department Sarawak and the Indonesian Ministry of Forestry (MoF) organized the International Conference on the Application of Reduced Impact Logging to Advance Sustainable Forest Management in Kuching, Malaysia, from 26 February to 1 March 2001. The main objectives of the conference were to review the current knowledge of RIL with regard to technical, economic, institutional and training aspects and to provide interested stakeholders with the sound data and accurate information on forest harvesting options.

THE CONTRIBUTIONS

The papers included in this book were presented and discussed during the conference and served as the basis for identifying follow-up activities. The book does not provide the definitive answers to all RIL-related questions, but it provides useful insights and assessments to guide future activities and implementation of RIL. A look at the contributions from different parts of the world, provided by authors with very diverse backgrounds and experiences, indicates that many aspects are quite location-specific. What works well in one location because of enabling conditions may not be feasible under different circumstances.

This publication is not intended to be a practitioners guide. It is written for policy makers, scientists and senior forest managers, to familiarize them with the pertinent issues related to RIL. It seeks to raise awareness about the opportunities for improving timber harvesting as well as the challenges that lie ahead. Finally, it is hoped that this publication will stimulate a discussion on RIL that ultimately leads to changes in attitudes and practices on the ground.

The papers in this publication are organized according to the following themes:

● Concepts and issues of RIL ● Key technologies and steps towards improving forest harvesting ● Training for the future ● Costs and benefits of RIL ● Safety and occupational health issues ● Practical experiences with implementing RIL ● Regulatory frameworks and incentives ● Research issues, monitoring and forest resource protection

The final section of the book presents an overview of the most pertinent issues, identifies some knowledge gaps and discusses the recommendations that were presented on the last day of the conference.

In the first paper, Dennis Dykstra points out that RIL is not a new concept. Its basic elements and technologies are generally well understood from many years of application in temperate forests. At the same time, RIL can be perceived as both new and different because of important dissimilarities between temperate and tropical forests. These factors require a new mindset by logging operators and a new approach to tropical forest management. Dykstra stresses the importance of training and of reducing wood waste as key areas for advancing better forest management.

Art Klassen looks at constraints to the adoption of RIL within the Indonesian corporate forestry sector, with particular implications for extension and training. He acknowledges the importance of training, but also emphasizes that forest companies need to modify their management approaches. New technical and management functions are essential to implement RIL successfully. This will require organizational and structural changes in planning and harvesting.

Danny Chua Kee Hui describes helicopter-logging systems in Sarawak, Malaysia. Helicopter logging is not intended to replace completely the existing ground-based crawler tractor system in Sarawak. However, harvesting of the hill mixed dipterocarp forests is progressing towards steeper and more difficult terrain where helicopters can be used effectively if timber prices are high enough to cover the high costs of operations and capacity building.

Clynt Wells provides information on the economic consequences and potential environmental problems associated with poorly constructed logging roads. In acknowledging the many examples of good roading practice, he concentrates on the problems that can occur and offers some basic, but key, points that are fundamental for making forest-harvesting roads effective, economic and environmentally responsible for all parties concerned.

Ugyen Thinley describes initiatives in Bhutan, where the adoption of skyline logging systems, improvements in road construction and more appropriate silvicultural systems help to sustainably manage the mountain forest environment. According to Thinley, the greatest challenge is to strike a balance among commercial timber harvesting, traditional utilization for domestic consumption and the national goals of maintaining the environmental values of forest cover, soil conservation, and clean air and water.

Alexander Hinrichs and his colleagues report on their experiences in implementing RIL in one forest concession in East Kalimantan, Indonesia. They stress that even simple adaptations of current practices can achieve substantial results. However, this requires long-term commitment by senior management to change from a functioning and legally acceptable harvesting system to a more complex system that requires detailed instructions to field managers. Such change is fostered by a culture of openness, regular communication and feedback, and investments in training.

Plinio Sist, Jean-Guy Bertault and Nicolas Picard warn against expecting too much from RIL as long as timber harvesting and logging intensities is determined by the rule of minimum diameter cutting limits. RIL is a necessary, but not a sufficient, condition for sustainable forest management. Based on original population density, population structure, regeneration dynamics and breeding systems, the authors propose additional silvicultural rules to complement the minimum diameter cutting limits. Such rules would serve to keep logging intensity under a threshold compatible with sustainable forest management.

Four papers examine training needs, opportunities and approaches related to RIL. The first paper by Napoleon Vergara presents an approach to developing training strategies that could lead to the more effective implementation of RIL. Vergara stresses the importance of basing training on the sound assessment of human resource development needs. It should encompass the training of national RIL trainers and will usually require training of priority target groups at all organizational levels - from field operators to senior management and policy makers. Training should also seek to integrate RIL principles and techniques in formal silviculture and forest-harvesting courses in forestry education institutions.

Ross Andrewartha presents the approach adopted in Tasmania (Australia) and Vanuatu to provide training and education across all levels of the forest industry to support the adjustment to new forest-harvesting standards and codes. He emphasizes the essential need for a structured and systematic approach to training and education to ensure that improvements in harvesting standards occur. Competency-based training and assessment requires operators to demonstrate competence, measured against predetermined criteria rather than focusing on course inputs. Active participation of trainees is emphasized. Other important components in improving harvesting practices include providing skilled training staff, developing training and support materials, establishing demonstration sites, developing assessment criteria and training workplace assessors.

Peter Kho and Barney Chan describe experiences in developing a directional tree-felling training program that the Sarawak Timber Association offers to concessionaires and contractors. They point out the difficulties of providing training in remote locations to loggers who may not have enjoyed any formal education, and the initial reluctance of trainees who feel that they know already what needs to be known about felling trees. Although the training faces many obstacles, Kho and Chan conclude that they have been successful and provide evidence of the improved performance of tree fellers.

Ed Aulerich and Jefri Sirait describe efforts in Indonesia where they have provided training in cable yarding operations and road construction. The authors highlight the importance of providing knowledge and skills to employees at different operational levels as well as to regulatory bodies. It is important that all parties have an understanding of the advantages and disadvantages of the new harvesting practices and equipment to be employed. Most training programs only target operators, although these programs are rarely successful unless the management understands the need for training and supports such programs.

Perhaps the most controversial issues regarding RIL relate to the financial and economic implications of adoption. Wulf Killmann and his co-authors ask the fundamental question whether it pays to adopt RIL or not. Seeking to answer this key question, the authors analysed 266 publications dealing with RIL. While no definite answer emerged, the tentative conclusion is that RIL costs more than conventional logging if only operational costs are considered and a short-term perspective is taken. On the other hand, if the long-term economic implications of site and stand damage and increased timber recovery are considered, RIL is often economically competitive with conventional logging.

John Tay, John Healey and Colin Price present their findings of a very detailed study conducted in Sabah, Malaysia. Applying RIL practices to harvest timber reduced damage to vegetation and soils by 50 percent compared with conventional logging (CL). However, RIL is costly when applied on hilly terrain because of opportunity costs associated with foregone timber (i.e. trees that are not cut for environmental reasons). Of the 176 ha allocated to CL units in the study, almost all of the area was logged. In the RIL units, only 129 ha (56 percent) of the 230 ha was logged. The considerable reduction in area logged has obvious and substantial financial implications. Therefore, the authors call for compensatory payments and the design of appropriate financial transfer mechanisms.

Thomas Holmes, Frederick Boltz and Douglas Carter draw a different conclusion from their study on financial indicators in the Brazilian Amazon. They conclude that RIL can be competitive with, or superior to, CL in financial terms if the costs of wood wasted in the harvesting operation are accounted for. Standardizing study methods, and replicating studies across different forest types, levels of industrial scale and markets, would allow more rigorous tests to be made of relative profitability of RIL and CL. The authors note that the adoption of RIL is impeded by the opportunity cost of timber set aside to maintain productivity and ecosystem integrity, and issues regarding land tenure security.

Aaron Ago Dagang and his colleagues report on their financial and economic analyses of CL and RIL in Sarawak (Malaysia). They found CL to be financially more profitable than RIL from the business perspective. The economic analysis, on the other hand, demonstrated that from society's point of view RIL was preferable to CL. Sensitivity analysis revealed that RIL can become financially more attractive than CL if any of the following occur: a) harvesting intensity is increased from 28 m3/ha to above 36 m3/ha; b) harvesting costs are reduced by 30 percent; c) timber prices rise by 15 percent; or d) certification and carbon trading supplements are incorporated. To increase the profitability of RIL, the authors recommended increasing the intensity of the initial harvest. Damage assessments should be carried out to monitor the effects of higher extraction volumes. The authors also strongly recommend a payment system that rewards workers for good practices.

Grahame Applegate compares four recent studies of the costs and benefits of implementing RIL in the closed forests of East Kalimantan, Indonesia. He concludes that studies involving operational costs and benefits of harvesting are inadequate in the Asia-Pacific region. There are serious problems related to different, or inappropriate, methodologies that limit the ability to compare study results. The partial nature of some financial analyses can also yield misleading results. Applegate suggests a new approach to more accurately identify actual operational costs of improved harvesting practices. The method is designed to account for the scale of operations, and to determine and define interrelationships and dependencies of different harvesting components or those that have a major impact on costs.

In the final paper of the economics section, Muhandis Natadiwirya and Martti Matikainen explain how to save money by saving the forest. They focus on the comparative costs of skidding under RIL and CL in East Kalimantan, Indonesia. The results of their study reveal differences in the time skidders are used, skidding efficiency, and overall skidding costs under CL and RIL. Good planning, based on accurate pre-harvest inventories under RIL, can save as much as US$ 600 in skidding costs in one compartment (100 ha) alone.

Forestry is characterized by difficult working conditions, heavy physical efforts and high risk of accidents. To secure the future of forestry, both human resources and forest resources must be managed in a sustainable manner. Paradoxically, safety has largely been neglected because of perceived economic constraints. Peter Blombäck argues that high costs of accidents should be a major stimulus for companies to tackle the poor safety situation in forestry, particularly in logging activities. Safety is not a stand-alone issue and should not have a status and organization separate from other production functions. Approaches that treat occupational safety and health as integral elements of company objectives and optimal quality management tend to be far more successful.

Concerns for workers' safety in forestry are not new. Robert McCormack presents the health and safety developments in the Australian forestry industry over the last 40 years. Important developments included the introduction of the chainsaw, training needs created by new technology, the contribution of scientific studies, recognition that holistic and comprehensive training is required and the importance of acknowledging prevailing social attitudes. The Australian experience provides examples of how factors interact, and how the evolution of thinking and philosophy can influence change.

Although there have been calls for improving forest harvesting for decades, the wide-scale application of environmentally sound practices is still the exception rather than the norm. Nonetheless, numerous practical experiences are emerging from areas where RIL has made inroads. Wybrand Jonkers describes different approaches in implementing RIL on three continents. He compares four RIL methods developed in different types of rain forests. All methods are based on existing technology, and include pre-felling surveys, directional felling and planned skid trail patterns. Differences in approach relate mainly to differences in logging intensity and forest composition. All methods lead to substantial reductions in logging damage compared to conventional operations, and are comparable in costs to CL. Jonkers highlights constraints that still need to be overcome if RIL is to be implemented widely.

Drawing from experiences in Tasmania (Australia), Graham Wilkinson emphasizes the importance of "partnerships" in regulating forest practices. Collectively, partnership arrangements between various stakeholders can facilitate the development of a progressive forest practices system. Compliance with codes of forest practice can be achieved through either a cooperative or an adversarial approach. Partnerships, by nature, require a cooperative approach that achieves mutually agreeable outcomes. Wilkinson highlights that the continuing challenge for Tasmania's forest practices system is to maintain a spirit of cooperation and to avoid regulatory changes that would lead to a more adversarial and punitive system.

Geoffrey Blate, Francis Putz and Johan Zweede attempt to clarify the elements and factors that facilitate and impede the adoption of RIL in the Brazilian and Bolivian Amazon. The authors draw conclusions from their collective experience in the region and open-ended interviews with various forest sector stakeholders. From 1995 to 2000, at least 15 forestry enterprises in each country began implementing many RIL elements. They have made the most progress in pre-harvest and harvest planning. In Bolivia, improving market access through certification is a key motivation for companies to adopt RIL practices. In Brazil, the cost savings that result from better planning appear to be the principal factor motivating RIL adoption. The authors identify various factors that impede RIL adoption in both countries, including risk of invasion by squatters, fire hazards, lack of trained staff, lack of markets for lesser- known species, the perception that RIL is too expensive, and lack of national policies supporting the forestry sector.

Nana Suparma, Harimawan and Gusti Hardiansyah highlight the experiences of the Alas Kusama Group - Indonesia's third largest forest company - in implementing RIL. The authors' message is that, if applied correctly, RIL can result in increased productivity and lower operating costs. The environmental benefits of RIL have also been demonstrated in trials carried out in the company's concessions in Central and West Kalimantan, Indonesia. The authors stress that success requires targeted training, effective supervision and a new payment scheme that rewards operators for quality work. They conclude that, within the overall forest concession system in Indonesia, changes on a large scale will only take place if the Ministry of Forestry ensures that all harvesting activities are carried out within an effective and transparent regulatory framework. Companies must also be required to comply consistently with the regulations and laws governing forest resources. Widespread adoption of RIL, especially in tropical forests, will probably remain an elusive goal wherever the forest policy environment is overly prescriptive and input-based. Chris Bennett advocates an alternative approach that focuses on forest management outcomes to allow site-specific adaptations while providing the framework for sufficient regulatory oversight. RIL adoption is fostered through the establishment of secure rights of access to forest resources, adequate recognition of village roles in forest management, replacement of overly bureaucratic and prescriptive regulations with policies that focus on forest management outcomes, and removal of trade and industry policies that undervalue forest resources (making alternative uses of the land more attractive). Bennett also notes that both local and central government accountability are likely to be pivotal in the adoption or rejection these policies.

The emergence of the Clean Development Mechanism (CDM) has raised hopes, that payment for carbon sequestration services will provide a significant incentive for sustainable management practices in industrial forestry in tropical countries. Joyotee Smith and Grahame Applegate assess the prospects for realizing these hopes. They note the paucity of data to support CDM planning in forestry and the high degree of uncertainty about CDM rules. The cost of RIL-based SFM projects may be higher than previous estimates indicate, because most economic analyses assume that a permanent forest estate is maintained under conventional logging. A more realistic conventional logging scenario is repeated timber harvesting at short intervals, leading to degradation of logged areas. While this scenario increases the potential carbon and other environmental benefits from RIL projects in the long run, it also increases the opportunity cost of adopting RIL-based SFM, particularly in the short term. Also, the cost-effectiveness of RIL- based SFM projects is likely to be highly site-specific. Hence, the authors conclude that CDM RIL projects should not be perceived as a "silver bullet" for inducing sustainable management. If targeted carefully and embedded in an integrated program of policy reforms, they could, however, considerably enhance the effectiveness of more conventional approaches. The result could be improved forest management, contributions toward climate change mitigation and biodiversity conservation. Simon Armstrong and Chris Inglis explore the gap between the theory and practice of RIL. Research undertaken in a commercial harvesting operation in Guyana indicates that RIL improves efficiency, reduces unit cost of production and reduces damage to the forest. Strengthening management systems and changing attitudes are particularly important in improving harvesting practices. Armstrong and Inglis report on experiences of companies in adopting these recommendations from research that were simple and pose the least risk to the company. The authors argue that improvements in harvesting are unlikely where harvesting guidelines or targets are set without planning and managing the necessary change within harvesting operations. Despite the growing body of literature that indicates that RIL is cost-effective, its uptake by industry remains limited. According to the authors the key reasons include poor communication, the use of inappropriate terminology, and differing perspectives between researchers and commercial operators.

Mohd Shahwadid and his colleagues analyse the various new and improved activities acribed by the Malaysian Criteria and Indicators (MC&I) for sustainable forest management. The incremental costs of adhering to the MC&I were appraised using cost data from a research project conducted in Terengganu, Malaysia. Improved road construction, tree marking and mapping, skidding and foregone revenues from protected buffer areas, were the main factors contributing to higher costs of complance.

William Magrath and Richard Grandalski suggest that governments, communities and international organizations could begin to employ a large number of promising approaches to enhance forest protection and management. The authors emphasize that forest resource protection should not simply be measured in terms of numbers of infractions or actions taken against undesired activities. Forest resource protection needs to be considered as a specific dimension of overall resource management. The authors conclude that the need is not so much for more forest resource protection, as it is for better forest laws and policies and more effectively targeted forest resource protection programs.

The papers included in this publication reflect the wide diversity of perspectives and experiences related to the implementation of RIL. These differences are most evident when comparing the papers arguing the economic implications of adopting RIL. Many authors further caution that their experiences may be location- specific and perhaps difficult to replicate in other forest types and less enabling economic environments. Thus, the final section of this book summarizes the key insights gained from the papers and the discussions that took place during the conference in Kuching. It seeks to identify knowledge gaps and to offer recommendations to be taken up by various stakeholders and organizations in the forestry sector.

2. Reduced impact logging: concepts and issues - Dennis P. Dykstra*

* International Forestry Consultant, BLUE OX FORESTRY, 9770 SW Vista Place, Portland, OR 97225-4251, USA, Tel. 503-292-9311, Fax 775-514- 1088, E-mail: [email protected] or [email protected]

INTRODUCTION

In this paper, two apparently contradictory conclusions are drawn: First, that reduced impact logging (RIL) involves the application of technologies that have been known for many years and are utilized as a matter of common practice in many industrialized countries; and second, that RIL is something new, requiring both a new mindset and also a new approach to tropical forest management. It is hoped that the reader will be convinced that these assertions are true in spite of the apparent contradiction between them.

TERMINOLOGY

In forestry, a distinction is often made between ‘timber harvesting’ and ‘logging’. Logging generally refers to the process of felling and extracting timber from forests, whereas timber harvesting includes pre-harvest planning, technical supervision and post- harvest assessments that reflect concern about non-timber resource values and about the future state of the forest. The term ‘reduced impact logging’ however, has become essentially interchangeable in the vernacular with timber harvesting. ‘Reduced impact logging technology’ is a collective term that refers to the use of scientific and engineering principles, in combination with education and training, to improve the application of labour, equipment and operating methods in the harvesting of industrial timber.

A BRIEF HISTORY OF RIL IN THE TROPICS

Until after World War II, logging operations in tropical forests were for the most part unmechanized, relying largely on human and animal power. As such, they involved only small areas of forest and had little impact on the resource. Even so, some of the best early work on management of tropical forests emphasized the importance of careful logging to protect future crop trees. An example of this is the management system for teak developed by Sir Dietrich Brandis in Burma during the second half of the nineteenth century (Dawkins and Philip, 1998).

Beginning in the 1950s, industrial logging of tropical forests became widespread as the worldwide demand for timber increased dramatically due to the rapid postwar economic expansion. Mechanized logging technologies developed in industrialized countries were introduced into the tropics quickly, and both the scale of operations and their intensity changed substantially. Tropical foresters began to recognize that many industrial logging operations were leaving forests in a seriously degraded condition (Dawkins, 1958; Nicholson, 1958; Redhead, 1960; Wyatt-Smith and Foenander, 1962; Fox, 1968). Some authors, most notably Dawkins (1958), went so far as to suggest that selective harvesting of moist tropical forest might be incompatible with the goal of sustained-yield management because of the excessive damage to residual vegetation that resulted from mechanized logging. At the same time, other tropical foresters (Bruenig, 1957) had begun to develop and test prescriptions for mechanized logging that would minimize damage to residual vegetation and soils and thus foster sustained-yield forest management. Even so, comparisons over time by authors such as Fox (1968), Nicholson (1979), Ewel and Conde (1980), Marn and Jonkers (1982), Estève (1983), DeBonis (1986), Jonkers (1987), Hendrison (1989), and Bruijnzeel and Critchley (1994) suggested that as increasingly powerful machinery was being introduced into tropical forests, the scale of damage to residual vegetation and to soils was rising proportionally. By 1992, when the United Nations Conference on Environment and Development convened in Rio de Janeiro, it had become clear that at least in some instances the mechanization of logging operations in the tropics posed a serious threat to long-term sustainability of the resource, particularly if impacts on non-timber values were added to the equation (Dykstra and Heinrich, 1992).

Around the same time, the first publications were appearing, in which the term reduced impact logging was used (Putz and Pinard, 1993). Somehow this term and its acronym “RIL” proved more broadly acceptable than ‘environmentally sound timber harvesting’, an alternative that was being promoted by the FAO Forestry Department (Dykstra and Heinrich, 1992). The Tropical Forest Foundation (TFF) introduced the related term ‘low-impact logging’ but this was not generally adopted by environmentalists who felt that ‘low-impact’ and ‘logging’ were mutually exclusive terms. The more neutral term reduced impact logging was picked up quickly and widely used, both in technical articles and in news releases. The concept of forest management technologies that reduced logging impacts resonated not only with foresters but also with the general public. Importantly, the concept also was supported by influential environmental organizations such as WWF and IUCN. As a consequence, RIL gained a legitimacy that foresters themselves could never have provided.

Also around this time, a concerted effort was underway on a variety of levels to assess the effectiveness of tropical forest management and to develop and implement guidelines to improve management practices. Influential publications stemming from this activity included Poore et al. (1989), ITTO (1990), Poore and Sayer (1990), FAO (1993a) and FSC (1994, revised 2000). Building on these efforts, a number of initiatives were undertaken to develop codes of practice for logging in tropical forests. Many of these codes of practice borrowed heavily from guidelines developed for Australian tropical forests during the 1970s and 1980s (Queensland Forest Service, undated; Ward and Kanowski, 1985). An early effort was the Fiji National Code of Logging Practice (Fiji Ministry of Forests, 1990), developed with assistance from the International Labour Office (ILO). By 1996, FAO had published a model code of forest harvesting practice (Dykstra and Heinrich, 1996), and this spurred a large number of tropical countries to develop their own codes of practice, often with assistance from FAO, the International Tropical Timber Orgainization (ITTO), the European Union, or bilateral development-assistance agencies such as GTZ (Germany), USAID (USA), AusAID (Australia), French Cooperation, DFID (UK), and others. FAO’s Regional Office for Asia and the Pacific subsequently worked with member countries of the Asia-Pacific Forestry Commission to develop the Code of Practice for Forest Harvesting in Asia-Pacific (FAO, 1999) and is also assisting with the development of national codes of practice as extensions to the regional code.

LOGGING IN TROPICAL VERSUS TEMPERATE FORESTS

In spite of very high biomass levels, tropical forests generally support much lower volumes of merchantable timber than temperate forests (Wadsworth, 1997). The volume of timber harvested from an average hectare of tropical forest worldwide is less than 30 m3 and usually involves 10 or fewer trees, each of which is a different species (FAO, 1993b). In Africa, some highly selective operations remove only one tree in 10 ha. By comparison, a typical operation in the coniferous forests of the Pacific Northwest of the USA extracts 500 m3/ha from 200-300 trees, most of which are a single species. As a consequence of the relatively low volume of merchantable timber harvested per hectare of tropical forest, the area disturbed by logging to obtain a given volume of industrial roundwood is substantially larger than in temperate forests. This means that logging operations in the tropics are spread over extensive areas, making them obvious to large numbers of people. Although spreading operations over large areas may reduce impacts on a per hectare basis, it can result in a greater total impact because of the many additional kilometers of skidtrails and roads that are required. One analysis comparing operations in West Africa with those in Europe found that the effective road density, measured in meters of road per cubic meter of roundwood extracted, was fifty times higher in the African operations than in the European operations (Dykstra and Heinrich, 1996). Perhaps more importantly, the many additional kilometers of road built into tropical forests to extract timber makes the forest more attractive for colonization. An important demographic difference between temperate and tropical forests is that the latter are often populated, and the people who live in them depend upon the forest for their livelihoods. This was once true of temperate forests, but by the time mechanized logging was being applied in temperate forests, those forests had largely become unpopulated. It remains true in tropical forests, in spite of a worldwide trend toward increasing urbanization. Even remote areas like the forests of Borneo support relatively large populations of both indigenous people and migrants, and these people often make extensive use of non- timber forest products. For example, at CIFOR’s Bulungan Research Forest in East Kalimantan, Indonesia, a survey of several communities of Dayaks - forest-dwelling indigenous people who inhabit remote areas on the island of Borneo - indicates that of 383 plant taxa identified in the area, 236 (62 percent) are used in some way by the local people. Non-timber forest products (NTFPs) are the single most important source of cash income for these people, accounting for as much as 80 percent of an average household’s annual cash income (Wollenberg, 1998). Furthermore, a comparison with town dwellers suggests that the forest dwellers’ total annual incomes, including imputed values for the NTFPs they use, average almost one-third more than the average incomes of town dwellers who do not have regular access to forests. This indicates the importance of considering local populations and the potential impacts of logging on non-timber forest resources when planning forestry operations in the tropics.

A recent study in Cameroon (Nef, 1997) demonstrated that by avoiding timber species from which local people harvest NTFPs, timber companies might be able to gain the support of local populations and thereby avoid chronic theft and operational disruptions. There may be significant costs associated with such a strategy, however; in Nef’s study, 24 NTFPs used by local people were produced by tree species that were also used for commercial timber. Designating as ‘off limits’ to logging the 10 tree species considered most valuable as sources of NTFPs would, according to Nef’s analysis, reduce the company’s aggregate timber stumpage value per hectare by about 20 percent. WHAT IS NEW ABOUT RIL?

To a large extent, RIL technologies that are being promoted for adoption in tropical forests have been developed in temperate forests and are utilized as a matter of common practice there. In this sense, they represent nothing new. Because of the differences between tropical and temperate forests, however, many of these practices require significant adjustment in order to be economically and technically viable in the tropics. Also, protection of non-timber values in areas where local populations utilize NTFPs requires considerable evaluation and planning.

Although it varies somewhat with the local situation, RIL in tropical forests generally requires the following (see, for example, Sist et al., 1998):

● Pre-harvest inventory and mapping of individual crop trees.

● Pre-harvest planning of roads, skidtrails and landings to provide access to the harvest area and to the individual trees scheduled for harvest while minimizing soil disturbance and protecting streams and waterways with appropriate crossings.

● Pre-harvest vine cutting in areas where vines bridge tree crowns.

● The use of appropriate felling and bucking techniques, including directional felling, cutting stumps low to the ground to avoid waste, and optimal crosscutting of tree stems into logs in a way that will maximize the recovery of useful wood.

● Construction of roads, landings and skidtrails so that they adhere to engineering and environmental design guidelines.

● Winching logs to planned skidtrails and ensuring that skidding machines remain on the skidtrails at all times.

● Where feasible, utilizing yarding systems that protect soils and residual vegetation by suspending logs above the ground.

● Conducting post-harvest assessments in order to provide feedback to the concession holder and logging crews and to evaluate the degree to which RIL guidelines were applied successfully.

Nearly all of these practices are common in temperate forests. Two that are not are the requirement for mapping individual crop trees, and the need for preharvest vine cutting.

Numerous studies have shown that mapping of individual crop trees is essential in tropical forests where only a small number of trees per hectare can be harvested commercially. Information on locations of individual crop trees can be used to locate roads, landings and skidtrails so that the crop trees can be extracted without disturbing soils in areas where no trees are to be harvested. In spite of efforts to develop improved systems for mapping individual trees (Hendrison, 1989), this remains both a logistical headache and a cost that is not readily accepted by operators. Nevertheless, recent analyses such as Holmes et al. (2000) indicate that this additional cost is more than offset by the benefits provided through the effective planning that the individual tree maps provide. Still, research is needed to streamline this process and to make use of recent developments in remote sensing that might reduce the cost of pre-harvest mapping.

Beginning with a rather important and influential paper published by Fox (1968), it has been recognized for a long time that pre- harvest cutting of vines can significantly reduce damage associated with felling in areas where climbing vines are present. Historically, a common procedure has been to cut all vines within a harvest block, regardless of whether the vines are associated with crop trees. It now appears that this is both unnecessary and wasteful; instead, vine cutting should concentrate in the area around individual crop trees and their neighbours, and often the cost can be reduced by coordinating this activity with pre-harvest inventory and mapping. It is also important to recognize that some vines are used by local people, and that certain vine species, such as figs, are important sources of fruit for wildlife. As mentioned earlier, most RIL technologies have been developed in temperate countries and are applied there widely. In this sense, RIL is not new - it is simply the transfer of well- established technologies from temperate forests to the tropics. Because of the important differences that exist between temperate and tropical forests, however, the correct application of RIL in the tropics involves several new steps. The section that follows argues that some of these differences require both a new mindset and also a new approach to tropical forest management.

ISSUES IN RIL

Philosophical acceptance by foresters. Many foresters, often including those responsible for the education of forestry students in universities and technical institutes, consider logging to be a subject that should not be discussed in polite society (Dykstra 1994). Although most foresters recognize that harvesting is essential if income is to be generated from forestry investments, there is a tendency to treat the logging operation in the way farmers treat the slaughterhouse - hide it away in the hope that it will not disturb the customers.

There are at least three consequences of this tendency. First, logging operations seldom get the professional attention required and therefore are often poorly planned, improperly executed, and inadequately supervised. Second, foresters and forestry technicians frequently have little appreciation for the positive benefits of timber harvesting and only a vague, uncomfortable sense of the very real environmental hazards that are associated with logging operations. Third, foresters often come to believe that environmentally sound harvesting is impossible at a level of cost that will permit an economically viable forest industry. They are thus often willing to accept poor logging practices because the alternative does not seem feasible. This is partly due to the fact that few logging operations in tropical forests can truly be described as environmentally sound, so there is little opportunity to see such practices being applied. In addition, conventional wisdom holds that environmental protection always costs more, so it is generally assumed that RIL must be more costly than conventional logging. The cost of RIL. The opposite holds true. Studies by Marn and Jonkers (1982), Hendrison (1989), and most recently by Holmes et al. (2000) have demonstrated conclusively that properly planned and supervised harvesting operations not only meet conditions for sustainability but also reduce harvesting costs by a substantial margin as compared to conventional logging. The difficulty is that these cost savings are due to better planning, better supervisory control and better utilization of felled timber. To obtain these savings, therefore, it is necessary to have technically competent planners, loggers and supervisors.

Training. The most critical single requirement for the successful application of RIL on a wide scale in tropical forests is the availability of skilled logging personnel at all levels. The fact that almost no tropical countries presently offer such training effectively dooms their forests to poor logging practices. Unless these countries and the development-assistance agencies that work with them begin to recognize this constraint and work to overcome it, there is little hope that timber concession holders will be able to implement RIL effectively on a large scale, simply because they will be unable to find skilled personnel who understand both why and how to carry out RIL. Efforts by organizations such as TFF to train loggers, planners and supervisors in Brazil and more recently in Indonesia have shown the way forward to overcoming the training vacuum, but this is a problem of enormous proportions that will require intensive, coordinated efforts on the part of government agencies, development-assistance organizations, and non-governmental organizations like TFF.

Active supervision of loggers. Well-trained loggers need equally well-trained supervisors to ensure that their work is carried out properly and to provide feedback that will help them to improve their practices continually. It is important that supervisors understand not only what to do and how to do it, but also why, and they must be able to communicate this understanding in an effective way. Supervisors must be on the ground every day, not confined to an office where they can only supervise by remote control.

Aerial logging systems. By adhering to the above requirements for RIL practices, virtually any type of logging machinery can reduce impacts as long as the operation is properly controlled and supervised. But it must be recognized that there is an optimal logging system for any given situation, and that a low-impact system in one situation might become a high-impact system in another situation. Most logging in tropical forests relies on ground- based skidding machines. Such systems can achieve acceptably low impacts when operators are trained properly and slopes are of low to moderate steepness. Unfortunately, in many forests, especially in developing countries, ground skidding is used even when slopes are very steep. Under such conditions, the environmental impacts associated with ground skidding are often unacceptably high. Aerial logging alternatives such as cable systems and helicopters can reduce direct impacts associated with ground disturbance during logging substantially, and because of their extended yarding capabilities can also reduce the density of haul roads needed to support logging operations. As most soil erosion associated with logging operations can be traced directly to roads and skidtrails, reducing the density of this infrastructure will lessen stream sedimentation and all its related offsite impacts, such as the siltation of reservoirs and irrigation ponds, high treatment cost for drinking water, and reduced fishery values. Unfortunately, both cable systems and helicopters require highly skilled crews and specialized knowledge that is often in scarce supply in developing countries. This emphasizes the need, again, for effective and widely available logger training.

Some RIL technologies are indigenous to the tropics. Several types of RIL systems are unique to tropical forests. The kuda- kuda system still used in some swamp forests probably exists nowhere outside the tropics, although the concept of moving logs along a ‘corduroy road’ of logs was often used in temperate forests until the middle of the last century. Although animal- powered skidding systems have been important historically in temperate forests, it is safe to say that logging with elephants and with water buffalo (carabao) has always been limited to the tropics!

Improving harvest recovery. Regardless of the type of logging equipment used, the amount of usable wood recovered from forest harvesting can be improved by reducing wood residues at all stages of production, from felling to skidding to transportation and final processing. In tropical forests particularly, improved utilization has tremendous potential for reducing the area of forest disturbed annually through timber harvesting. A study initiated by FAO (Dykstra and Heinrich, 1997) and continued by the Center for International Forestry Research (CIFOR) and the World Forestry Center (WFC) suggests that the volume of wood recovered from harvesting operations in managed tropical forests could be increased by perhaps 10-30 percent without a significant increase in harvesting cost. In fact, Dykstra and Heinrich (1997) argue that improved utilization in most situations should reduce harvesting cost (see also Holmes et al. 2000).

On the basis of the FAO-CIFOR-WFC study, Figure 1 shows how the area of tropical forest disturbed annually through harvesting operations might be reduced if utilization were improved. The scenarios assume that the demand for industrial roundwood is driven by population growth, and that a one percent increase in population results in a 0.75 percent increase in demand for industrial roundwood. Under this assumption, the expected world population of 8.9 billion in 2050 implies a level of demand for tropical industrial roundwood to the order of 453 million m3 per year.

Figure 1. Historical trend in the area of tropical forest disturbed annually through timber harvesting, with projections through 2050 under three different utilization scenarios. (Sources: FAO, 1998, 1999; FAOSTAT, 2000)

Scenario 1. Three projections are shown in the figure. The upper projection line assumes no change in utilization standards as compared to the period 1961-1990. Under this level of utilization, 16.6 million ha of tropical forest would need to be disturbed in 2050 in order to harvest 453 million m3 of industrial roundwood. Compared to 2000, when the harvest of tropical industrial roundwood is approximately 195 million m3, this represents an increase of more than 130 percent in the area of tropical forest disturbed annually by timber harvesting.

Scenario 2. The middle projection line assumes an improvement in utilization of one percent annually beginning in 2001. Even such a modest improvement would result in a significant reduction in the area disturbed. In 2050, the area of tropical forest disturbed annually in order to harvest 453 million m3 of industrial roundwood under this scenario would be 11.1 million ha. Compared to Scenario 1, this represents a reduction of one-third in the area of tropical forest that would be disturbed each year by timber harvesting. Perhaps more importantly, the one percent annual improvement in utilization would reduce the total area of tropical forest disturbed over the 50-year period from 2001-2050 by almost 150 million ha. This is a huge reduction, equivalent in area to more than one-tenth of all of the world’s protected areas combined.

Scenario 3. For comparison, Figure 1 also shows the area of tropical forests that would have been harvested annually between 1961 and 2050 if the tropical harvesting recovery rate were equal to the utilization rate reported for the USA around 1990. Although far better than current practice in tropical forests, this level of utilization is judged by FAO experts to be achievable over the long run with reasonable improvements in training and management of tropical forest operations. As the figure indicates, a one percent annual improvement in felling utilization beginning in 2001 would result in a utilization rate around 2050 that is very close to the 1990 USA rate.

A reduction in the annual area of tropical forest harvested in the order of magnitude suggested by this analysis would benefit both timber and non-timber forest resources substantially. In addition, the improved utilization of felled timber would reduce forest residues significantly, thus decreasing the risk of destructive fires of the type that occurred during 1997 and 1998 in Brazil and Indonesia. There is little doubt that the large volume of forest residues left behind by past logging operations contributed to the destructiveness of those fires and to the large amount of smoke and haze that drifted over neighbouring countries for several months.

CONCLUDING REMARKS

This paper suggests that RIL is not a new concept because its technologies are generally well understood from many years of application in temperate forests. At the same time, it can be perceived as both new and different because of important dissimilarities between temperate and tropical forests that require a new mindset by logging operators and a new approach to tropical forest management. The new approach will have to recognize that tropical forests are places where people live, and will need to directly and specifically accommodate the many ways in which these people depend upon the forest for their livelihoods and their well-being. The new approach will also have to provide effective training for logging personnel and their supervisors if RIL is ever to become a widespread reality in tropical forests.

REFERENCES

Bruenig, E.F. 1957. Waldbau in Sarawak. Allgemeine Forst- und Jagdzeitung 128:156-165.

Bruijnzeel, L.A. & Critchley, W.R.S. 1994. Environmental impacts of logging moist tropical forests. IHP Humid Tropics Programme Series No. 7, UNESCO, Paris, France.

Dawkins, H.C. 1958. The management of tropical high forest, with special reference to Uganda. IFI Paper 34. Imperial Forestry Institute, Oxford.

Dawkins, H.C. & Philip, M.S. 1998. Tropical moist forest silviculture and management: A history of success and failure. CAB International, Wallingford, UK.

DeBonis, J.N. 1986. Harvesting tropical forests in Ecuador. Journal of Forestry 84 (4): 43-46.

Dykstra, D.P. & Heinrich, R. 1992. Sustaining tropical forests through environmentally sound timber harvesting practices. Unasylva 169: 9-15.

Dykstra, D.P. 1994. Teaching ecologically benign logging methods in the professional and technical-level forestry schools of the Asia-Pacific Region. Food and Agriculture Organization of the United Nations, Rome, Italy. FAO Forestry Paper 123 (report of the 17th Session of the FAO Advisory Committee on Forestry Education, combined with Regional Expert Consultation of the Asian Network on Forestry Education, 13-15 Dec 1993, Bangkok, Thailand). p. 164-180.

Dykstra, D.P. & Heinrich, R. 1996. FAO Model Code of Forest Harvesting Practice. Food and Agriculture Organization of the United Nations, Rome, Italy.

Dykstra, D.P. & Heinrich, R. 1997. Forest harvesting and transport: old problems, new solutions. Keynote presentation for Session 14 (Forest Harvesting and Transport) at the World Forestry Congress, Antalya, Turkey, 13-22 October 1997. Proceedings Vol. 3, pp. 171-186.

Estève, J. 1983. La destruction du couvert forestier consecutive à l’exploitation forestière de bois d’oeuvre en forêt dense tropicale humide africaine ou américaine. Bois et Forêts des Tropiques 201:77-84.

Ewel, J. & Conde, L.F. 1980. Potential ecological impact of increased intensity of tropical forest utilization. Biotrop Special Publication 11.

FAO 1993a. The challenge of sustainable forest management: What future for the world’s forests? Food and Agriculture Organization of the United Nations, Rome, Italy.

FAO. 1993b. Forest resources assessment 1990: Tropical countries. FAO Forestry Paper No. 112. Food and Agriculture Organization of the United Nations, Rome, Italy.

FAO. 1998. State of the World’s Forests 1997. Food and Agriculture Organization of the United Nations, Rome, Italy.

FAO. 1999. State of the World’s Forests 1999. Food and Agriculture Organization of the United Nations, Rome, Italy.

FAO. 1999. Code of Practice for Forest Harvesting in Asia- Pacific. RAP Publication: 1999/12. Food and Agriculture Organization of the United Nations, Regional Office for Asia and the Pacific, Bangkok, Thailand. FAOSTAT. 2000. FAO Forestry Database. Food and Agriculture Organization of the United Nations, Rome, Italy. http://apps.fao.org/page/collections?subset=forestry.

Fiji Ministry of Forests. 1990. Fiji National Code of Logging Practice. Ministry of Forests, Suva, Fiji. (Plus a 7-page booklet on chainsaw use and safety).

Fox, J.E.D. 1968. Logging damage and the influence of climber cutting prior to logging in the lowland dipterocarp forest of Sabah. Malaysian Forester 31 (4): 326-347.

FSC. 1994, revised 2000. FSC Principles and Criteria. Forest Stewardship Council, Oaxaca, Mexico. Available at http://www.fscoax.org/principal.htm.

Hendrison, J. 1989. Damage-controlled logging in managed tropical rain forests in Suriname. Series on the Ecology and Management of Tropical Rain Forests in Suriname, Wageningen Agricultural University, The Netherlands.

Holmes, T.P., Blate, G.M., Zweede, J.C., Pereira, R., Jr., Barreto, P, Boltz, F. & Bauch, R. 2000. Financial costs and benefits of reduced impact logging in the Eastern Amazon. Tropical Forest Foundation, Alexandria, Virginia.http://www.tropicalforestfoundation.org/costbenefits.html

ITTO. 1990. ITTO guidelines for the sustainable management of natural tropical forests. Technical Series 5, International Tropical Timber Organization, Yokohama, Japan.

Jonkers, W.B.J. 1987. Vegetation structure, logging damage and silviculture in a tropical rain forest in Suriname. Number 3 in the series on Ecology and Management of Tropical Rain Forest in Suriname, Wageningen Agricultural University, The Netherlands.

Marn, H.M. & Jonkers, W. 1982. Logging damage in tropical high forest. In: Srivastava, P. B. L. et al., Editors, Tropical forests - source of energy through optimisation & diversification. Proceedings of an international conference held 11-15 November 1980 at Penerbit Universiti Pertanian, Serdang, Selangor, Malaysia. pp. 27-38.

Nef, R. 1997. Socio-economic impacts of forest exploitation on the livelihoods of local people in Southern Cameroon: Timber versus non-timber forest products. Master of Science thesis, Department of Forestry, Wageningen Agricultural University, The Netherlands.

Nicholson, D.I. 1958. An analysis of logging damage in tropical rain forests, North Borneo. Malayan Forester 21(4): 235-245.

Nicholson, D. I. 1979. The effects of logging and treatment on the mixed dipterocarp forests of South-East Asia. Report FO:MISC/79/8, Food and Agriculture Organization of the United Nations, Rome.

Poore, D., Burgess, P., Palmer, J., Rietbergen, S. & Synott, T. 1989. No timber without trees: Sustainability in the tropical forest. Earthscan Publications Ltd., London.

Poore, D. & Sayer, J. 1990. The management of tropical moist forest lands: Ecological guidelines, Second Edition. IUCN Tropical Forest Programme, publication no. 2. Gland, Switzerland.

Putz, F.E. & Pinard, M.A. 1993. Reduced-impact logging as a carbon-offset method. Conservation Biology 7(4): 755-757.

Queensland Forest Service. Undated. Guidelines for the selective logging of rainforest areas in North Queensland state forests and timber reserves. Queensland Forest Service, Brisbane, Queensland, Australia.

Redhead, J.R. 1960. An analysis of logging damage in lowland rain forest in Western Nigeria. Nigerian Forestry Information Bulletin (New Series), No. 10, p. 5-16.

Sist, P., Dykstra, D. & Fimbel, R. 1998. Reduced impact logging guidelines for lowland and hill dipterocarp forests in Indonesia. Bulungan Research Report Series No. 1, September 1998, Center for International Forestry Research, Bogor, Indonesia. Ward, J.P. & Kanowski, P.J. 1985. Implementing control of harvesting operations in north Queensland rainforests. In: Shepherd, K. R., and H. V. Richter, Editors, Managing the tropical forest. Proceedings from a workshop held at Gympie, Australia, from 11 July to 12 August 1983. Development Studies Centre, The Australian National University, Canberra. p. 165-186.

Wadsworth, F.H. 1997. Forest production for tropical America. Agriculture Handbook 710. USDA Forest Service, Washington, DC.

Wollenberg, E. 1998. Unpublished notes for the “People and Forests” presentation at the CIFOR Public Forum, United Nations University, Tokyo, Japan, 10 April 1998; supplemented by personal communication. Senior Scientist (Local Forest Management), Center for International Forestry Research, Bogor, Indonesia.

Wyatt-Smith, J. & Foenander, E.C. 1962. Damage to regeneration as a result of logging. Malayan Forester 25(1): 40- 44.

3. Impediments to the adoption of reduced impact logging in the Indonesian corporate sector - A.W. Klassen*

* Regional Director, Tropical Forest Foundation1, Manggala Wanabakti, Blk. IV, 9th Floor, Wing B, Jl. Jend. Gatot Subroto, Senayan, Jakarta 10270, Indonesia, Tel: ++(62 21) 573 5589, Fax: ++(62 21) 5790 2925 E-mail: [email protected]

INTRODUCTION

The need for RIL

RIL implies a different approach to forest harvesting. But, why is a different approach needed and what is wrong with the present system of extraction when it seems to have been successful and profitable for so long?

There are two possible explanations for the interest surrounding the promotion and research of RIL[1]. First, there is a growing recognition in the scientific, professional and regulatory communities, that the existing practices of forest harvesting inflict an unacceptably high level of damage on trees, soils and forest hydrology. In Indonesia, there is also growing concern that the underlying assumptions of the official Indonesian Selective Cutting and Planting System (TPTI)[2], as practised currently and enforced, are not valid. Unless the forest is left in a better condition after the harvesting, as opposed to today’s norm, the fundamental assumption that the harvesting of the natural production forest is sustainable within the 35-year cutting cycle, is in serious doubt. Secondly, the international marketplace is becoming more and more sensitive to the issue of ecolabelling. This development addresses the question of sustainable forest management directly. Increasingly, forest managers are more frequently being approached by buyers with the question, “Can you supply certified wood?” Improving forest practices through strategies such as RIL can assist greatly in the achievement of certification; hence there is a growing recognition that RIL is becoming an unavoidable practice for any concessionaire hoping to achieve certification. This second reason seems to be emerging as the primary driving force behind the interest in RIL among forest companies in Indonesia.

Current logging practices

In Indonesia, most forest concessionaires follow the TPTI system and carry out a 100 percent inventory and most of the regulatory requirements. So why is this insufficient?

TPTI is highly descriptive when it comes to harvesting practices. However, the extract of marked trees is left to the discretion of the forest company. In itself, this may not necessarily be bad. However, combined with an almost total absence of effective field monitoring and enforcement of existing regulations, TPTI fails to deliver on its promises.

Within most concessions, harvesting areas are allocated typically to production teams consisting of a production machine and one or more fellers. The production team is relatively free to move around the designated block and extract the marked trees according to the commercial criteria set by the company. Efficiency or environmental considerations are seldom given much consideration.

The result is often considerable wasted machine time looking for logs and inefficient extraction. Damage to the environment is far higher than it would be if a more carefully planned and supervised approach was used. This situation is typical of selection cutting systems throughout the tropics. Clearly, there is much scope for improvements to current practices. A pragmatic approach to developing a RIL strategy

RIL promises two types of potential benefits. The first is greater financial benefits in terms of higher productivity per machine unit. This can be expressed as lower production costs per unit volume extracted, reduced maintenance costs and other less obvious financial benefits. The long-term benefits can be expressed in terms of better stand conditions for the second cutting cycle and other benefits of a long-term nature that are more difficult to quantify.

Recent research in Brazil provides very strong indications of the financial benefits of RIL. After allowing for the additional planning costs of implementing RIL, Holmes et al. (2000) reported that the overall cost of production was typically 12 percent lower relative to conventional harvesting operations (see also Holmes et al., this volume).

RIL research results from Southeast Asia are not as clear in terms of financial benefits. Most researchers have tended to focus on productivity aspects. A recent review of research in Indonesia shows an almost universal improvement in selected productivity variables for RIL compared to conventional harvesting (Klassen, 1999a[3], see also Applegate, this volume). Major forest projects that have carried out RIL research were polled and a synopsis of RIL productivity benefits was summarized in the article. Clearly, in light of the uncertainties facing the forest industry in Indonesia today, any promotion of RIL must emphasize the short-term financial benefits.

The second type of benefit concerns the minimization of environmental impacts through reductions in damage to the residual stand, soil disturbance and erosion, and a major reduction of the logging impact on water quality and general hydrological functions of the forest stream system. These environmental benefits are easy to see in any RIL trial and have been well documented by many researchers.

Some simple truths

In Indonesia and elsewhere in the tropics, RIL guidelines have, in some cases, been developed as part of RIL research (Department of Forests, 1997; Sist et al., 1998; Ruslim et al., 1999) yet none of these project-driven guidelines have gained broad acceptance by the forest industry. A few simple truths have become evident:

● RIL can achieve significant financial and environmental benefits with relatively modest changes to current operating practices. Often some of the more debatable aspects of RIL guidelines detract from their overall effectiveness and benefits.

● As RIL guidelines become more complex and intricate, RIL becomes more costly to implement, and therefore, less attractive to many concessionaires and operators.

● For RIL guidelines to achieve more widespread adoption, they must be pragmatic. There must be a clear inherent financial incentive before broad-based adoption can become a reality. Simply put, it may be desirable to sacrifice some ideals to achieve the greatest possible benefit when promoting RIL to the corporate sector.

● The environmental benefits are attractive primarily to those producers who are interested in long-term sustainable forest management and who have a market-driven interest in certification for ecolabelling. This is certainly the situation in Indonesia today (see also Blate et al., this volume for a discussion on the situation in Brazil and Bolivia).

● Government regulations that seek to impose RIL guidelines will fail in the present environment in Indonesia. RIL guidelines and practices must be adopted voluntarily because they are superior to current practices, not because they are demanded by regulations (which are presently unenforceable).

DEFINITION - ‘SCOPE AND CONTENT’

The ten ‘steps’ of RIL Most of the discussion and initiative concerning RIL is from the perspective of researchers and forestry projects. Consequently, RIL has been defined in a variety of ways, both in terms of what activities it should encompass and what constraints should be placed on forest harvesting.

A review of the literature suggests that there are number of RIL components (see Dykstra, this volume); some require special skills or modifications of existing practices and each one is important in the overall implementation of RIL.

Since TFF’s primary interest is to promote RIL to the forest industry through training and extension, it is convenient to define RIL as a series of distinct components or steps that form the basis of training modules and technical procedure manuals.

This approach is particularly relevant in the Indonesian context. Many forest companies already have well-developed technical skills and management systems. To make the necessary adjustments to RIL may mean that only small gaps in technical knowledge or skills, operational capability, management understanding or management structure require addressing. The modular description of the RIL components also lends itself to targeted training. Gaps in any one or more steps are easy to identify and to address within a specific training module.

Step 1 Creating a receptive management system

A common perception is that RIL is essentially a set of practices based largely on technical aspects of planning and extraction. Yet without a firm commitment from management, it is obvious that technical practices alone will not ensure the successful adoption and implementation of RIL.

A strong commitment, based on an understanding of the potential benefits, is the starting point. Equally important is the recognition of the existing ‘gaps’ in skills and understanding of the RIL concept at all levels of the production process. This recognition must, of course, be followed by the implementation of the necessary corrective actions. Forest companies will need to examine their organizational structure and various job functions and will have to make both the structural and functional changes necessary to succeed in implementing RIL.

Step 2 Operational inventory

Forest inventory is recognized universally as a prerequisite to the achievement of sustainable forest management. In the tropics, stock mapping is a common inventory technique, although it could be argued that under certain conditions, representative sampling, with or without stratification, is a more effective and efficient inventory method for operational purposes.

In Indonesia, regulations governing the 100 percent inventory require only the mapping of tree positions. Maps are seldom used for any meaningful operational purpose and their utility is largely confined to meeting the requirements of the Ministry of Forestry. Since most companies already perform this function in order to obtain their annual cutting permits, additional and more relevant information can be collected easily with few extra financial outlays.

Step 3 Preparing an operational-scale contour map

Operational-scale contour maps are a fundamental prerequisite for implementing RIL, especially for planning and locating skid trails in the topographically complex Indonesian forest landscape. The scale of such maps could vary from 1: 1 000 to 1: 5 000. The choice of scale and contour intervals should be a function of topographic variability and the level of detail that a forest operator may wish to include on the map, although at present, it is determined by rigid bureaucratic requirements.

The preparation of contour maps can be achieved by conventional mapping techniques from aerial photographs. However, for a variety of reasons, this is still far from realizable in Indonesia. A more practical approach is the collection of topographic data during the inventory and the subsequent production of a contour map according to conventional cartographic or computer-assisted mapping techniques. This step will require training of inventory crews, not so much to collect the necessary data but, more importantly, to follow a disciplined survey protocol in order to avoid data errors that can be frustrating during the map production. Conventional or computer-assisted mapping techniques will require additional training in most cases. Of all the RIL steps, this one probably presents the major technical challenge.

Step 4 Planning the skid trail network

The operational contour and inventory maps are the basis for the planning of the skid trail network. It is critical to consider the spatial context. Many concessions still use the 100 ha square block boundary system to organize and administer planning and operations. Such boundaries should not be used as the limits of the skid trail planning. Natural barriers such as streams, swamps, ridge tops or excessively steep ground should be included also to determine the shape and size of the area. Successful skid trail planning must look beyond the artificial administrative boundaries within the approved annual operating area and must be carried out in the context of planning for efficient and environmentally sound harvesting.

Map reading skills will have to be strengthened through additional training. Generally, these skills are not taught or emphasized in formal academic institutes and are seldom part of a company’s operating procedures; hence, they are often poorly developed among the technical staff.

Step 5 Location of skid trails and landings

The skid trail network must be located on the ground and demarcated using paint or flagging ribbons. Both the planning and actual location of skid trails should be governed by standards that specify optimum slopes and skidding distances as well as dealing with issues of steep ground, environmentally sensitive areas and riparian protection. Stream crossings should be avoided whenever possible in order to maintain water quality and overall hydrological functions.

To date, efforts at promoting RIL have frequently been frustrated by the lack of technical skills when transferring planned activities into actual ground locations. In addition, the concept of incorporating protection zones or considerations into an operational layout is relatively new for most companies.

Step 6 Opening of skid trails prior to felling

The benefits of opening the skid trail network prior to felling are not always clearly understood. In Indonesia, broken topography and relatively heavy felling intensities make it preferable to open the skid trails prior to commencement of felling activities. In the Brazilian Amazon on the other hand, it has been TFF’s experience that easy topography, short skidding distances and uncertain profit margins on certain species, make it more desirable to open skid trails after felling.

A crawler tractor or skidder should drive along all located skid trails with its blade raised slightly above the ground. The benefit is that a clearly visible extraction ‘framework’ is established prior to felling. The feller has better access and a better sense of assessing options for directional felling.

The soil should not be disturbed and all pole and sapling-size trees need to be left on the skid trail. This woody material helps to protect the soil during skidding. Where the skid trail has to pass along a sloping hillside, side cutting is necessary.

Step 7 Felling

Some experts advocate the marking of the felling direction on the tree by the inventory crews or by a separate marking crew. Our experience suggests that this is counterproductive. The final felling decision will always rest with the feller. Successful implementation of directional felling requires empowerment of the feller through training aimed not only at demonstrating safe and technically effective felling techniques, but also at imparting a simple decision-making framework that will help to guide the feller in choosing the most appropriate felling direction.

Considerations that could be included in such a decision-making framework, or guideline, should include technical considerations, safety, location of protected trees and future crop trees, orientation for more effective extraction, proper bucking to maximize utilization, minimization of felling damage and protection of riparian zones. It is easy to train fellers to follow these guidelines. Adoption of RIL felling techniques is seldom constrained by the failure of fellers to understand the requirements, but rather by a failure of company management to follow through with effective direction and supervision.

This may require the creation of a new position in the operational structure of the company. Currently, the most common practice is to have minimum supervision of production activities and to pay fellers and tractor operators on a unit volume basis. In this arrangement, management is essentially abrogating its responsibilities in ensuring successful implementation of RIL.

Step 8 Skidding

In conventional extraction practices, skidding is extremely damaging to soils and residual stands. Through planning, proper locating and opening of skid trails prior to felling, skidding efficiency can be improved significantly and negative environmental impacts reduced.

Additional reductions in skidding damage require close supervision and the adoption of simple guidelines that are appropriate to the individual company or situation. Some points to consider include the increased use of the winch, the need to stay on existing predetermined trails, avoiding stream crossings and sensitive areas.

Achieving these goals is not simply a matter of training, but requires more effective supervision. As discussed under felling, company organization and functions are both factors in determining the success of these aspects of the RIL process.

The lack of appropriate technology is sometimes cited as a handicap in minimizing logging impact. Alternatives to tractor logging exist in the Asia-Pacific region and need to be explored further. More appropriate ground-based equipment than the standard crawler tractor, originally designed for pushing, exists. There is a need for managers to re-examine these alternatives, not only from an environmental, but also from cost and productivity perspectives.

Step 9 De-activation

In many cases it is desirable to de-activate skid trails. This should involve cross-ditching to minimize channelling and erosion on skid trails with steep gradients. This activity should be incorporated into the normal job description of the tractor operator and carried out once harvesting is completed.

As with many other operational aspects of RIL, clear and simple guidelines should be developed for individual units or concessions to best reflect the unique operating and management conditions. Also, company structure and functions with respect to supervision play a crucial role.

Step 10 Evaluation and monitoring

To provide meaningful feedback to management and operators of a concession, an appropriate evaluation procedure should be developed. This might involve post-logging surveys of the skid trails by sampling of soil disturbance or other parameters or, it might involve something as simple as a field inspection of a logging unit by a designated person and the preparation of a brief report.

Such assessments or inspections are necessary to provide internal feedback so that any deficiency can be identified quickly and corrected, and to ensure that management and staff are constantly aware of the objectives and achievements as part of the overall sensitization process of RIL implementation.

IMPEDIMENTS TO ADOPTION

The question remains why, if the environmental benefits are so obvious, regulatory institutions do not put in place the technical standards, guidelines and regulations that can ensure enforcement of better harvesting practices. Furthermore why, if the financial benefits are reasonably clear, do not more forest managers seek to implement RIL within their companies and operations? This last question is of particular interest.

Certainly there is no shortage of possible explanations for why RIL is not being embraced more widely by the tropical forest industry. Although this paper focuses primarily on the reasons that relate to the Indonesian corporate forest sector, it is worthwhile examining a wider range of reasons or ‘excuses’, which are often used. The following are common:

Lack of tenure security

This is a commonly cited reason in the Indonesian context. The Ministry of Forestry’s mandate is being undermined by as yet, ill- defined decentralization processes (see also Bennett, this volume). Indigenous land claims, illegal logging and conflicting signals from the Ministry are all contributing to serious uncertainty within the forestry sector. However, it can also be argued that despite these uncertainties, there is still sufficient reason for forest managers to adopt RIL (Klassen, 1999a).

Ineffective government regulations and enforcement

Ineffective government regulations and enforcement are implicit constraints to adoption. Forest managers have become accustomed to operating in an environment where performance requirements can be manipulated. There is clearly a need to change this environment and to create an effective enforcement agency. Government ineffectiveness is an increasingly significant deterrent against the adoption of sustainable practices and specifically of RIL.

Excessive costs and lack of clear financial benefits

The argument that RIL means ‘reduced income logging’ has been largely discredited by existing research. While there is some validity to this argument as demonstrated by the adoption of RIL strategies within the context of rigorous performance guidelines, such as those adopted for carbon offset schemes (Pinard et al., 1995), most research indicates that productivity gains and financial benefits can be expected through the adoption of a pragmatic RIL system (Klassen, 1999b). There is a need for more dissemination of information about the financial benefits of RIL.

Inadequate information concerning RIL

Despite years of discussions, workshops and numerous research and demonstration projects, misunderstanding of what actually is required to implement RIL persists. It has been our experience that company officials often appear knowledgeable about RIL but when actually required to elaborate on what they have done to adopt RIL, they display a lack of understanding of the implementation requirements.

There is still a need for better information on RIL and for more effective dissemination of such information. The TFF in collaboration with the Association of Forest Concession Holders (APHI), is addressing this information gap by publishing articles on RIL in APHI’s bi-monthly journal, Hutan Indonesia, and through the joint publication of occasional RIL newsletters.

Lack of adequate technical guidance

In Indonesia, the TPTI silvicultural system provides a step-by- step prescription as to how the natural forest should be administered. Many people have argued that this administrative approach has focused on prescriptions to the detriment of adequate enforcement or technical guidance (see Bennett, this volume). While the TPTI states that impacts should be minimized, there is essentially no guidance as to how this is to be achieved.

On the regulatory side, enforcement of the TPTI emphasizes reporting requirements and usually ignores field implementation.

The lack of clear technical guidance for the implementation of the various RIL elements is being addressed by the TFF in collaboration with the APHI, through the development of technical procedure manuals. These manuals are based on training modules that have been developed for specific technical functions.

Lack of serious intent This often remains a major reason for the failure of companies to adopt RIL practices. Everyone would be more comfortable if we focused our attention exclusively on technical or other explanations for the failure of companies to adopt RIL. The reality is that companies all too frequently are simply not interested in RIL since it disrupts the status quo and since many companies are still more interested in their immediate wood supply than in sustainable forest management.

Increasingly, the realization that sustainability of their business depends on sustainability of the forest is slowly emerging among corporate managers. Companies interested in long-term forest management are responding to market-driven pressures for certified wood and are ‘developing’ an interest in RIL. In this respect, the pressure for certification is emerging as a major driving force for the adoption of RIL.

FOCUS ON THE CORPORATE SECTOR

If indeed, the pragmatic implementation of RIL can produce clear financial and environmental benefits, and if RIL can indeed contribute to sustainable forest management, it should be expected that corporate forest managers would pursue this strategy. However, only a few companies have begun the process of modifying their operations and even fewer have achieved full implementation on a concession-wide basis.

Reasons for this apparent reluctance of companies to adopt RIL have been discussed throughout this paper. Specifically, the main points that pertain to the forest industry are summarized hereunder.

Understanding the opportunity - a matter of perception

There is still a widespread misperception of the potential benefits of adopting RIL. Even among managers who have some appreciation that RIL can yield both financial and environmental benefits, clear understanding about what really constitutes RIL is often lacking. Specifically, this refers to essential measures to achieve noticeable financial and environmental benefits and, what training and organizational changes need to be put in place to effect the necessary improvements.

Convincing company management of the benefits of RIL is often a complex process. It is not just a matter of convincing top management in capital cities. Regional and camp managers should be fully supportive of the necessary changes and, they in turn will have to convince their line management.

In many cases, forest concessionaires respond to ‘demands’ from the industries. Overall company perception is biased towards manufacturing. The forest is still considered a necessary inconvenience.

Concession management frequently has a poorly developed cost- accounting system and concessions are not run as individual profit centres, but as part of a larger system including the manufacturing process. Consequently, a manager’s perception of costs may be incomplete. Hence, a carefully prepared study on the financial benefits of RIL may have little meaning to a camp manager if the manager is not really concerned about certain cost components such as the cost of amortizing equipment.

Gaps in knowledge and skills

Most efforts at promoting RIL have been made by externally funded projects in collaboration with a concessionaire. Projects tended to focus much of their early effort on training industry partners in the various RIL techniques. This type of training typically has been limited in scope as defined by the collaborative agreements and funding constraints.

Major forest companies generally run their operations efficiently and perform many functions necessary for practising RIL. The quality of planning and operational activities is often a function of motivation. For example, most companies carry out 100 percent forest inventories because they are required to do so. The granting of annual cutting permits is conditional on the inventories, and other activities. The companies’ modus operandi, however, generally find little utility in this activity. Hence, field checks have revealed very low levels of accuracy. RIL, however, requires accuracy for planning purposes. Clearly there is a need for targeted and effective training. The TFF and the APHI are working together to develop training modules that can be delivered directly to forest managers. The underlying assumption is that knowledge or skills gaps are usually minor and filling these gaps can be addressed more effectively in the actual working environment than in a more formal classroom setting. Requests for training have increased due to the effective dissemination of information and in response to the growing interest in forest certification.

Training modules that are being developed:

● Forest inventory sampling methods and field procedures are generally understood by the forest industry and reasonably well implemented. However, many concessionaires have not realized the full utility of this activity. Training will focus on how it can improve operations, rather than on the finer technical details.

● Topographic mapping at an operational scale is essential for detailed planning. For various reasons, Indonesia has failed to develop appropriate maps. However, the opportunity exists to create these maps from ground surveys that already are being carried out as part of the regulatory requirements. Training field crews to collect the necessary data consistently and accurately, presents a major challenge but one which can be overcome at minimal cost since the financial expenditures are being made by most companies already.

● Manual and computer-assisted contour mapping involves the processing of field data to create contour and tree position maps at an appropriate scale (1: 1 000 to 1: 5 000).

● The use of operational contour and tree position maps for harvest planning, including the incorporation of environmental protection concepts, is the next step. Formal education has largely ignored the need for this skill. Hence graduates working in forestry tend to have a poorly developed sense of spatial planning. In addition, the use of contour maps for day-to-day planning and operational control is virtually unheard of. Therefore, the necessary skills have not been developed. The integration of environmental concerns into operational planning is a radical departure from the existing situation for most companies and requires training at both the management and technical levels.

● Training for production personnel (fellers, tractor operators) has been done mostly on the job. Experience with formal training of fellers has shown that appropriate skills can be imparted easily and successfully. The success of this type of training largely depends on putting in place the necessary support mechanisms such as operational guidelines, effective supervision and appropriate bonus payment systems.

There is a need for the development of this type of training within the industry. Generally, external funding is difficult to obtain. Probably, industry-funded training will have to wait for the development of a greater consensus on the benefits of improved forest worker performance. Most of the reluctance to place greater emphasis on this type of training relates to the fact that usually felling and skidding are paid on a piecemeal basis.

● Monitoring RIL activities (evaluation, mapping, recording, and reporting) is a new function for any company wishing to implement RIL. It requires training and structural changes. New personnel may be required or new functions will have to be assigned to existing personnel.

Management form and function - the need for change

Forest concessionaires in Indonesia have evolved in a relatively unrestricted work environment and have had little need to develop certain disciplines and skills important for the implementation of RIL. Managers, therefore, often fail to appreciate the need for additional training since the performance of their staff has served them in the past. In the same way, managers often have difficulty appreciating the need to introduce new functions and positions. Seminars and workshops for management and supervisory personnel are important for generating an understanding of the implementation requirements for RIL.

RECOMMENDATIONS

It is time to change the focus in the debate about RIL from research to implementation. Given the diversity of topographical, biophysical and operational variables, there will always be opportunities to question research results. The existing research and demonstration results, if not always definite, nevertheless strongly point to the potential benefits of practising RIL. They indicate that significant environmental and financial benefits are achievable through the pragmatic application of RIL.

There is a need for governments and regulatory agencies to support the broad adoption of RIL through concrete action. Verbal endorsement is simply not enough and can no longer pass for action. More significantly, there is an urgent need for forest managers to be more pro-active in adopting RIL.

● Forest companies and forest managers, must educate themselves on RIL. They must examine their own operating structure and make adjustments. A change to RIL may require new functions or the modification of existing functions. This will demand some structural adjustments - perhaps new positions or new ways of operating. Supervision will have to be strengthened and better internal feedback mechanisms may have to be put in place.

Fundamentally, there is a need for forest companies to shoulder more of the responsibility of managing the public forest resource to achieve sustainable forest management through the adoption of improved management practices such as RIL. Training in the form of workshops and short courses has an important role to play in facilitating a better understanding of the necessary functional and structural adjustments.

● Gaps in knowledge and skill levels need to be identified and filled by thorough training. Some of this training can be achieved by the forest companies, while some may require the involvement of external trainers or participation in specialized training programs. Governments and funding agencies need to place greater emphasis on the development and delivery of training and extension programs for the forest industry.

REFERENCES

Department of Forests. 1997. Vanuatu reduced impact logging guidelines. Vanuatu, Department of Forests, Vanuatu.

Holmes, T.P., Blate, G.M., Zweede, J.C., Perreira, R. Jr., Barreto, P., Boltz, F. & Bauch, R. 2000. Financial costs and benefits of reduced-impact logging relative to conventional logging in the eastern Amazon. Tropical Forest Foundation, Washington, DC.

Klassen, A.W. 1999a. Analisis Aspek Finansial dan Produktivitas Reduced Impact Logging (RIL) (Productivity and Financial Aspects of Reduced Impact Logging), Hutan Indonesia, a bi- monthly journal published by the Asosiasi Pengusaha Hutan Indonesia, Edition 9 and 10, year 2, August and September, 2000.

Klassen, A.W. 1999b. Reduced impact logging: A cost effective way to reduce utilization waste in the natural forest management unit. Paper presented at the Seminar Konservasi Lingkungan Melalui Efisiensi Pemanfaatan Biomass Hutan, Yogyakarta, November 13.

Pinard, M.A., Putz, F.E., Tay, J. & Sullivan, T.E. 1995. Creating timber harvesting guidelines for a reduced impact logging project in Malaysia. Journal of Forestry, 93(10): 41-45.

Ruslim, Y., Hinrichs, A. & Ulbricht, R. 1999. Technical guideline for reduced impact tractor logging. SFMP Document No. 10a. Ministry of Forestry and Estate Crops in cooperation with Deutsche Gesellschaft für Technische Zusammenarbeit. Jakarta.

Sist, P., Dykstra, D. & Fimbel, R. 1998. Reduced impact logging guidelines for lowland and hill dipterocarp forests in Indonesia. CIFOR Occasional Paper No. 15. Bogor: Center for International Forestry Research.

[1] The Tropical Forest Foundation (TFF) is an international NGO with a mandate to promote RIL through information dissemination, training, and extension. In South-East Asia, TFF has an office in Jakarta, Indonesia. [2] TPTI (Tebang Pilih Tanam Indonesia) is the main system of natural forest management. It forms the silvicultural basis for the Indonesian forest concession system. [3] An English version of this paper is available from the author at [email protected]

4. Helicopter harvesting in the hill mixed dipterocarp forests of Sarawak - Danny Chua Kee Hui*

* Forest Engineer, Forest Department Sarawak, Wisma Sumber Alam, Petra Jaya 93660 Kuching, Sarawak, Malaysia Tel: ++(60 82) 31 9280, Fax: ++(60 82) 44 5640, E-mail: [email protected]

INTRODUCTION

Helicopter harvesting is an aerial harvesting system whereby logs are removed vertically from the forest and flown to a roadside landing or drop zone. Other aerial systems include the use of balloons and airships, but these have not been successful. Commercial helicopter harvesting has been carried out since the early 1970s in the Pacific Northwest of the USA and has proved to be a harvesting system with low environmental impact.

OVERVIEW OF HELICOPTER HARVESTING IN SARAWAK

Helicopter harvesting was introduced to Sarawak in April 1993 when a local timber company, WTK Organization, brought in a Sikorsky S-64E aircrane to lift logs from forest areas with difficult terrain in the Kakus-Pandan Protected Forest. Because of its high production performance, its ability to lift logs out of forest areas where ground-based and cable systems cannot be used and the minimal damage it causes to the surrounding forest, the helicopter is now used by many timber operators in Sarawak. Currently, helicopter harvesting is concentrated in forest areas that are either inaccessible, or located on steep terrain that was not harvested previously by crawler tractors. As harvesting of the hill forests proceeds towards remote regions and more difficult terrain in Sarawak, the Forest Department is encouraging timber operators to intensify the use of helicopters in their future operations.

TYPES OF HELICOPTERS USED

Currently, three types of helicopters are being used in various parts of Sarawak (Table 1). The helicopters can operate in a wide range of weather conditions except when foggy or misty conditions affect the visibility of the pilot or when there are turbulent winds. The Sikorsky S-64F has been used for harvesting for many years in the USA. The Oregon-based company operating this type of helicopter is, therefore, very experienced in helicopter logging. The Russian MIL 8 has been used for commercial helicopter harvesting in New Zealand since 1993 and also in Papua New Guinea. The KAMOV Ka-32 is the latest type of helicopter to be used for harvesting in Sarawak. Appendix 1 illustrates these three helicopters.

Table 1. Types of helicopters used for harvesting the hill mixed dipterocarp forests

Type Country of origin Lifting capacity of helicopter KAMOV Ka-32 Russia 5 000 kg MIL 8 Russia 5 000 kg Sikorsky S-64F USA 11 000 kg

Other types of helicopters, which were brought in for use, included the Sikorsky S-64E, Chinook 234 and the MIL Mi-26, but these helicopters are not in service at the moment.

In most of the helicopter harvesting operations, a small support helicopter is necessary for transporting the tree fellers to remote logging blocks, spotting missing logs, bringing spare parts to the base camp, aerial reconnaissance, forward planning and for overall supervision of the operations.

HELICOPTER-HARVESTING PROCEDURE

Felling operation

The felling operation has to be planned properly, coordinated and monitored by the timber operator to ensure that the helicopter has an adequate volume of logs to lift each day during the period when it is stationed in the operating area of the timber concession. It is even more critical when the timber operator utilizes different types of helicopters to lift logs from the same area. This is because the felling crew has to select the right trees to be felled depending on which helicopter is coming in first to do the lifting. Felling of trees is normally carried out at least two to four weeks before the helicopter is scheduled to arrive. A felling crew of two persons can only cut down an average of five trees per day because of the difficult working conditions and the need to select good, merchantable trees for felling.

After a tree has been felled, it has to be bucked properly to ensure an optimum load per trip but not exceeding the lifting capacity of the helicopter. The log is then clearly painted with numbers so that it can be spotted easily and identified by the helicopter pilot. Heavy logs are also distinguished by special symbols.

The tree feller has to prepare the log for lifting by removing any obstacles from the log and ensuring that it has been cut cleanly at both ends with no hang-ups. To ensure that the logs are visible to the helicopter pilot, the felling crew sometimes fell surrounding trees. Normally this is not necessary because a sufficiently large canopy opening is created when the tree falls to the ground. The felling crews are trained by the loadmasters or felling supervisors of the helicopter companies in the proper felling techniques and the preparation of logs for the helicopter to lift.

Lifting operation

After the trees have been cut, the helicopter is brought in to extract the logs. Lifting is done using a long line attached to the main aircraft frame with a grapple at the other end. The length of the long line ranges from 75 to 100 m. Different types of grapples, which can be electrically, hydraulically or mechanically controlled, are used. The lifting operation is carried out without any assistance from the ground. The helicopter pilot has to be very experienced and well-trained for the pilot has to locate the prepared log and manoeuvre the helicopter so that the grapple is placed precisely on the log. The log is then lifted vertically out from the forest and flown to the roadside landing or drop zone. The flying range is kept within 2 km from the landing or drop zone for helicopter harvesting to be economically viable. Heavy logs, indicated with the special symbol, are lifted out during the last few turns before refuelling when the helicopter is lighter. Normally, one log is lifted per turn.

For the three types of helicopters, the lifting operation requires a flight crew of two pilots, one to fly the helicopter and control the grapple and the other to monitor the instruments in the aircraft. The helicopters involved in this type of work consume a large quantity of fuel and have to be refuelled every hour. Refuelling pads are therefore located close to the working areas.

Landing/drop zone operation

The location of the landing or drop zones have to be planned properly and spaced out to facilitate the helicopter approach and to ensure optimum flying distance.

The logs are placed gently at the landing or drop zone by the helicopter to avoid damage or breakage. Experienced pilots will normally place the logs in an orderly manner. A landing receives a substantial volume of logs each day because of the continuous operation of the helicopter and short return times. The landing has to be sufficiently large to accommodate a drop zone and stacking area. Logs have to be debarked, tagged, measured and carried away as soon as possible to avoid congestion at the landing. The number of personnel working at the landing is kept to a minimum because it is very dangerous to move around with the helicopter arriving every few minutes to drop logs.

Safety factor

There is a high emphasis on safety for all aspects of the helicopter harvesting operation from the felling of trees through to the landing or drop zone. The helicopter must be properly and continuously maintained to Aviation Regulation Standards. Its estimated maintenance time for every flying hour is four person- hours. The pilots require a high level of concentration for this type of work; therefore, their number of flying hours for any period of time is also limited by Aviation Regulations to avoid pilot fatigue.

No tree fellers can be in the vicinity when the helicopter is picking up logs. This is because the rotor downwash from the helicopter may break some of the tree branches of the surrounding stand and cause injuries or fatalities to persons on the ground. The number of persons working in the landing or drop zone must also be kept to a minimum when the helicopter is dropping logs.

HELICOPTER PRODUCTION PERFORMANCE

Detailed time studies were carried out by the Forest Department on the Sikorsky S-64F and the MIL 8. The performances are given in Table 2.

Table 2. Performance of the Sikorsky S-64F and MIL 8

Sikorsky S-64F MIL 8 Lifting capacity 11 000 kg 5 000 kg Average volume per turn 7.24 m3 3.54 m3 Average turn time (within 2 km flying 2.94 minutes 3.5 minutes range) Average no. of logs lifted out per 110 73 effective working day Average volume per effective working 760 m3 261 m3 day Estimated volume per month (information 20 000 m3 6 000 m3 obtained from helicopter company)

No detailed time studies were carried out on the KAMOV Ka-32, which has a similar lifting capacity of 5 000 kg as that of the MIL 8. Its performance is therefore expected to be the same as that of the MIL 8.

Advantages of helicopter harvesting

● The helicopter can extract logs from sites that are inaccessible with difficult terrain as well as from environmentally sensitive areas where the use of ground- based and cable systems is impossible or undesirable. ● High machine productivity. The helicopter works during the day and maintenance is done at night when it is not flying.

● High production rate. The Sikorsky S-64F can produce at least 17 times more volume than a tractor in an effective working day.

● There is reduced harvesting damage to the surrounding trees.

● There is no exposed ground surface inside the harvesting block due to the absence of skid trails and cableway corridors.

● Fewer roads are required because the economic flying range of the helicopter is 2 km. Normal ground-based harvesting in Sarawak requires a road density of 10 m/ha. However, with a combined helicopter and tractor-harvesting approach, the road density can be reduced to 5 m/ha.

● There is negligible increase in stream turbidity.

DISADVANTAGES/CONSTRAINTS OF HELICOPTER HARVESTING

● High capital and operating cost of the helicopter.

● Less utilization of standing timber resources. Because helicopter harvesting is expensive, the number of trees felled and extracted is lower compared to tractor operations because only trees with sound, merchantable timber are selected, minimizing rejected logs at the landing. Studies done by the Forest Department show that only 1.4 to 3.5 trees/ha are extracted compared to 8.7 trees/ha in tractor- harvesting areas.

● The volume of remnant and rejected logs left behind in the forest is higher in the helicopter-harvesting area compared to tractor-based harvesting. This is due to the selection of only good, merchantable logs for lifting. The logs have to be bucked properly to optimum length due to the maximum lifting capacity. Studies carried out by the Forest Department show that based on a per tree extracted basis, about 1.8 to 2.3 m3 of unutilized timber are left behind in an area harvested by helicopter compared to 0.08 m3 in an area harvested by tractor.

● Frequent downtime of Russian-made helicopters due to delays in obtaining spare parts.

● No local expertise in flying the helicopters (performing long line lifting) and maintenance. Therefore, the operation is dependent on pilots and aircraft engineers from outside Sarawak.

ENVIRONMENTAL IMPACTS OF HELICOPTER HARVESTING

An assessment of the harvesting damage, open space created and stream turbidity in the helicopter- and tractor-harvesting area has been carried out by the Forest Department (Chua, 1993; 1995).

Table 3. Comparison of environmental impacts of helicopter and tractor harvesting

Description Helicopter harvesting Tractor harvesting No. of trees/ha felled and 1.4 to 3.5 8.7 extracted No. of trees damaged or 1.45 to 3.13 5.49 removed per tree extracted* Open space created by 4 % to 11 %** 15.91 % canopy openings and skid trails as a % of harvesting area Stream turbidity during 2.9 NTU*** 35 NTU dry days Stream turbidity during 21 NTU 287 NTU wet days

* All dipterocarps and nondipterocarps of 10 cm diameter at breast height and above were recorded ** No exposed ground surface due to the absence of skid trails

*** Nephelometric Turbidity Units

The number of surrounding trees that are damaged or totally removed per tree felled and extracted in the helicopter-harvesting area is between 1.45 to 3.13, whereas in the tractor-harvesting area, it is 5.49. In the helicopter-harvesting area, there is no exposed ground surface due to the absence of skid trails. Skid trails occupy 6.3 percent of the tractor-harvesting area. The open space in the helicopter-harvesting area is created by the canopy opening, when the tree falls, and some site clearing around the felled tree to enable the helicopter pilot to locate the log. It is much smaller compared to ground-based systems. Stream turbidity in the area worked by the helicopter is also much lower under all weather conditions (Table 3). Based on the results, helicopter harvesting can therefore be considered a low impact “environmentally friendly” harvesting system.

MAIN CHALLENGES

Costs

Helicopter harvesting is generally more expensive than tractor harvesting because of high operating costs and higher contract rates for felling crews. A direct cost comparison between helicopter harvesting and the conventional tractor-harvesting operation under similar difficult terrain conditions in the Model Forest Management Area (MFMA) project area in Sarawak indicated that helicopter-harvesting cost was twice the tractor- harvesting cost (ITTO, 2000).

Since 1993 when helicopter harvesting first started, the main challenge facing the timber operators and the helicopter companies has been to find ways to reduce the cost of harvesting. Recognizing that it is a low impact harvesting system, the Forest Department of Sarawak is encouraging its use by allowing all logs extracted by helicopter to be exported. Reduced royalty rates are also applied to timber extracted by helicopter. Unfortunately, logs extracted by helicopter do not fetch better prices compared to logs extracted by tractor and with fluctuating log prices, which are beyond the control of log-producing countries, helicopter harvesting in Sarawak continues to have its ups and downs.

Over the years, timber operators in Sarawak have tested six types of helicopters with different lifting capacities (i.e. Sikorsky S- 64E, Sikorsky S-64F, Chinook 234, MIL 8, MIL Mi-26, KAMOV Ka- 32). However, only three types are in use today, i.e. Sikorsky S- 64F, MIL 8 and KAMOV Ka-32 as the timber operators found them to be more cost-effective. In some timber concessions, a combination of big and small helicopters is used to optimize the lifting of logs of different sizes.

Coordination and understanding between the timber operator and helicopter company

In helicopter harvesting, felling of trees is managed and handled by the timber operator while the helicopter company only comes in to lift logs. Therefore, excellent coordination and understanding between the two parties are vital to reduce downtime and delays and to ensure that logs are fresh when brought out to the landings. Only then will helicopter harvesting be financially viable.

Recognition of intangible benefits

The use of helicopters in timber harvesting definitely has low environmental impacts due to reduced road construction, absence of skid trails, reduced damage to the forest stand and ground surface and less soil erosion and stream sedimentation. Therefore, the intangible benefits derived should be considered and recognized by both timber operators and tropical timber consumers.

CONCLUSION

Helicopter harvesting in Sarawak is not intended to replace the existing ground-based crawler tractor system completely. Over the last three years, the volume of logs lifted out by helicopters has accounted for only 5 percent of the total log production from the hill forest. The gentle and undulating forest areas will still be worked by tractors incorporating reduced impact logging (RIL) procedures. However, harvesting of the hill mixed dipterocarp forests in Sarawak is progressing towards the interior regions where the terrain is steep and more difficult. The potential or opportunity for helicopter harvesting lies in these areas. In such terrain, tractor harvesting with RIL procedures is less effective (particularly in reducing stream sedimentation) and is presently difficult to implement for the following reasons:

(a) Effective area for harvesting is reduced considerably.

(b) Lack of trained and committed manpower in the timber industry.

(c) Capacity building of Forest Department staff to carry out supervision of RIL for sustainable forest management has not been completed yet.

Notwithstanding the high cost of operation, the use of helicopters will definitely improve the sustainability of the forest and at the same time preserve its environmental values.

RECOMMENDATIONS TO MAKE HELICOPTER HARVESTING ECONOMICALLY VIABLE

Efforts should be made to convince tropical timber consumers that logs produced by the helicopter-harvesting system (or even by RIL with tractors) should be accorded premium prices in view of the high cost of extraction. Timber operators and helicopter companies should continue to collaborate closely to improve planning and harvesting procedures in order to reduce the cost of extraction. The possibility of testing alternative types of helicopters should also be looked into.

REFERENCES

Chua, D. 1993. A case study on helicopter harvesting in the hill mixed dipterocarp forests of Sarawak. Research Report No. FE 1/93, Forest Department, Kuching, Sarawak.

Chua, D. 1995. Helicopter harvesting in the hill mixed dipterocarp forests of Sarawak using the Boeing 234 Chinook. Case Study Report No. FE 1/95, Forest Department, Kuching, Sarawak.

ITTO. 2000. Model forest management area (Phase II) Final Report. ITTO Project Report (Draft).

APPENDIX 1

KAMOV Ka-32

MIL 8

Sikorsky S-64F

5. Forest harvesting roads: meeting operational, social and environmental needs with efficiency and economy - C.H. Wells*

* Forestman & Associates Pty Ltd, P.O. Box 104, Samford 4520 Australia, Tel/Fax: ++(61 7) 3289 4245, E-mail: [email protected]

INTRODUCTION

The planning and construction of forest harvesting roads is a major and expensive operation that is critical to the orderly flow of logs. In tropical environments, road development has to contend with difficult terrain and high and protracted rainfall. Traditionally, logging roads have tended to use high-impact construction methods featuring wide clearing widths, major earthworks and relatively crude construction standards. The justification for such practices has commonly been on the basis of economic and operational needs. Poorly located, constructed or maintained roads are inefficient and can cause major soil and water hazards with serious and long-term social implications to affected communities, which may be distant from the site of the actual road.

Codes of practice have aimed at setting basic standards to reduce these adverse impacts whilst still meeting operational and other needs. Such new standards are often opposed by the timber industry as being impractical and uneconomic. Experience in code development in tropical Australia and a review of harvesting practices in the South Pacific suggests that proper road construction, sound environmental management, beneficial social outcomes and operational economics need not necessarily conflict. With few exceptions, good practice can achieve production, social and environmental management needs economically.

While acknowledging the many examples of good roading practice, this paper concentrates on the problems that can occur and offers some basic, but key points that are considered fundamental to making forest harvesting roads effective, economic and environmentally responsible for all parties concerned.

THE ROADING CHALLENGE

The objective of forest roading is to provide a road network that achieves economic production whilst meeting environmental and social needs. Essential considerations are:

1) Production needs: The primary purpose is to provide a road network of a standard and density that guarantees operational access and the timely and economic delivery of the required volume of wood. Access requirement is relatively short term. Economics must consider both the direct costs of planning and constructing an optimum network as well as the indirect costs and production ramifications caused by impassable roads, slow haul speeds, accidents, vehicle damage and landowner disputes. Industry must address the total road economics.

2) Social needs: Logging roads may be required for other purposes well after logging has ceased. Forest services may require access for silvicultural operations. Governments and communities seek road infrastructure to serve the access and development needs of an area. The need is usually long term and may be at odds with harvesting requirements and logging road development.

● Landowners may obstruct or prevent roading for personal, cultural or financial reasons. ● Community demand for roads may be without essential planning and have unreasonable expectations as to the road standard, particularly bridges that can be afforded by the industry. The logging roads may not be appropriate to community needs and cause social problems and undesirable development.

● The community may have no capacity, skills or intent to provide essential and ongoing road maintenance.

Despite this, community approval is often essential to the continuous and uninterrupted use of roads for logging.

3) Environmental needs: Roading can be a major and ongoing cause of adverse environmental impact. Impacts such as overclearing, visual scarring and accelerated land instability can have serious social and forest-sustainability ramifications. The primary problem tends to be soil loss and watercourse sedimentation. Roads and tracks are the sources of major sedimentation of watercourses with direct and ongoing impacts on community water supply and aquatic habitats. Environmental needs must be identified and then managed to avoid damage. Environmental concerns need to be addressed if logging is to remain acceptable.

The optimum forest road has to balance these needs and constraints in a way that is economic for the timber industry. This requires effective and economic planning, construction and maintenance of roads.

ROAD ECONOMICS

Key: If you do not know the real costs you cannot determine if you are economic

The costs and economics of road development and use are of primary importance to the overall economics of a logging operation. Various figures are often quoted for different standards of roads but unless the nature of the road and the basis for the figures are known, these costs have little meaning.

During a review of logging standards in the South Pacific, logging managers appeared rather vague on the question of roading costs. This may have been corporate policy - not to reveal costs. However, it is suspected that many simply do not have the accounting procedures to determine the real costs of roading (or indeed any other element of harvesting) other than an overall operational cost per cubic meter. Further, observation of the often considerable range of equipment standing idle and the apparent inefficient organization and operation of equipment suggests that there are likely to be significant savings if the inefficiencies could be clearly identified and corrected.

If you do not know the actual costs (direct and indirect) of each component of road planning, construction and use, there is no way to determine:

● if you have an optimum economic outcome; ● where to concentrate supervision or resources to achieve further economies; or ● whether acquisition of equipment or adoption of different construction methods is viable.

Too often, suggestions for improvement (e.g. compaction) are rejected on the basis that it will cost more. The matter can only be evaluated by analysing whether the investment achieves greater savings in direct or indirect costs in road construction or use.

Several points may be relevant:

1) The costs of roading must consider all elements. This will require that companies have appropriate accounting practices. Various texts can provide guidance on cost calculation to include all essential aspects and permit proper analysis and management of roading. Such procedures can be complicated. An alternative is to conduct studies on specific components to derive a reasonable cost estimate that can guide management.

2) Costs increase dramatically with road standards. Costs per kilometre quoted for major roads tend to be double those of minor roads. Conversely minimal- standard haul roads are relatively cheap. Clearly a properly designed road network, with each standard of road used in its appropriate place, will reduce and optimize total costs.

3) Roading costs do not only relate to the direct costs of labour, equipment and material used in construction and maintenance but also to:

● cost and production impact of delays caused by road failures or impassability; ● cost and production impact of haulage over the current road standard; and ● cost and production impact of truck damage, repair and unavailability.

These indirect costs can be substantial and need to be factored into decisions on road standards, construction methods and maintenance intensity.

Figure 1. Major direct and indirect costs associated with logging roads

PLANNING FOR EFFECTIVE, ECONOMIC AND ENVIRONMENTALLY RESPONSIBLE ROADS

Key: Time spent on effective planning can be an economic advantage

The initiation and ongoing development of a logging operation has to contend with pressure for early and continuous production. This imperative may be at odds with the time needed to plan effectively. There is a common tendency to build with limited planning. Planning requires good survey and mapping information. Unfortunately, adequate maps may not be available. Aerial photography or inspection can be particularly useful but require training in interpretation. Global positioning system approaches can be useful for ground surveys, but require training and equipment Time and resources spent surveying and planning should be weighed against the costs and problems caused by inadequate planning:

● Road alignments that are unworkable because the full length and practicality were not surveyed and roads had to be realigned or relocated.

● Tortuous alignments increase road lengths and incur an ongoing production penalty in haulage time and cost.

● Alignments that involve excessive side-cutting or watercourse crossings at great cost.

● Undesirable grades that limit use, compromise safety and results in vehicle damage and production penalties.

● Roads that do not tap the best resources and require long skid distances.

● Landowner disputes or road use disruption because of conflicts over social or cultural issues.

Planning, or the lack of it, sets the economic base of road construction, use and maintenance. Time spent in effective planning can result in substantial and enduring rewards.

Key: Planning should provide an effective and economic network

The road system should involve an appropriate network of major, minor and haul roads of progressively decreasing width and standard to achieve the production needs with minimum total cost and environmental impact. Because costs and impacts tend to increase with both road standard and density, total efficiency will depend on optimal planning to meet the need with the minimum necessary infrastructure with overall economy. Road standards: Codes of practice generally specify basic road design standards. The standard of the road at a particular point should reflect its purpose, life and design capacity in terms of volume and haulage speed. Observations in the South Pacific reveal that road standards, particularly for minor and haul roads, tend to be excessive in width and the extent of earthworks. Unnecessarily wide clearings for roads are more expensive, take longer to construct and have a greater environmental impact. It is suggested that while major haul roads should not be underbuilt, greater use can be made of cheap and low-impact haul roads. Several elements are worthy of consideration:

● Road classification: This must have practical meaning and guide industry as to the required minimum road standards at a particular point. In the Asian-Pacific region, volume per week is used but this can be difficult to predetermine. The classification system must relate to need and it may be more meaningful to express this in terms of total volume, which is easily calculated prior to logging. If this approach is used then the point at which haul roads should become minor and then major roads can be simply determined by both industry and the forest services. The question of classification needs closer analysis and specification.

● Belief in haul road capability: Where there has been a tradition of wide roads there can be great concern as to the practicality of the minimum standard of a haul road. Experience in Australia under conditions equivalent to most tropical situations demonstrated that haul roads with very narrow clearing widths and minimal formation can operate effectively and economically if appropriately managed and used.

● Clearing width: Clearing width should be kept to a minimum needed to construct the road construction, permit surface drying and provide sight lines. There is a common belief that road clearings must be very wide to permit sun drying. Road surfaces need exposure to sunlight. However, the width required to effectively achieve this can be quite narrow due to the high angle of the sun in the tropics. Some standards specify a permitted maximum width. Under this regime, logging companies tend to automatically clear the full permitted distance. The Code of Practice for Forest Harvesting in Asia-Pacific standard of one meter beyond the earthworks is more realistic (FAO, 1999).

● Extent of earthworks: It is common in the lesser elements of the road network to see excessive earthworks and lowering of the road into the terrain. Apparently this is caused by road builders cutting down to find a hard surface. This is time consuming and costly, complicates drainage and eliminates the possibility of regrowth of trees after logging. Given the limited use and life of such roads, it may be preferable to minimize excavation and utilize compaction to achieve a load-bearing surface.

Roading density: The issue of roading density relates to the spacing of minor and particularly haul roads. Whilst the subject of many texts, the planning of an optimum road density can be both complicated and difficult. The objective is a density/spacing that results in the lowest combined cost of roading and skidding. The basic considerations are terrain, volume per hectare and relative roading and skidding costs. If loggers do not know these costs, there is no way that an appropriate density can be planned. The cost of excessive or inadequate road density can be significant in terms of production costs and time.

Road standards and density should be the minimum necessary to meet needs economically.

Key: Planning integration with logging needs

Planning and road construction must meet the logging needs and be timely. Firstly, it is not uncommon to see roads and landings constructed, often with extensive earthworks, and then remaining unused, with the road becoming a massive skid trail. There may be weather-related reasons for this but clearly the time, costs and impacts of such works are considerable. The plan must meet the operational need.

Secondly, planning and road construction must be sufficiently advanced and ahead of logging to avoid haulage on unfinished roads. Poor planning, operational pressures and weather can result in haulage being attempted on unfinished sections of roads. This is not only difficult because of bogging and the need to tow trucks through the area; it can also have secondary adverse implications for skidding and loading with undesirable landings and skid trails being developed to overcome the problem of the unfinished road. Roading must be ahead of the needs, and planning should provide areas that can be worked in wet weather or where roading is delayed. Smashing through roads to meet the production target may yield the logs but can be hugely expensive because of low productivity, damage to roads and equipment, safety and the environment.

CONSTRUCTING EFFECTIVE, ECONOMIC AND ENVIRONMENTALLY RESPONSIBLE ROADS

Key: Construction to achieve the fundamentals of effective roading

The engineering principles of road construction are well known. While forest roads cannot generally afford the detail, finesse and cost applied to public road engineering, they must at least achieve the fundamental requirements for a successful road pavement. Basically any soil can support any load provided it is compacted (to achieve strength) and it is kept dry (to prevent water entering the road and weakening it). A forest road must have a good foundation and a water-resistant or shedding surface. Unless a road achieves these two factors adequately, it will fail. An effective road will (i) be constructed from the base upward in layers that provide a good foundation and (ii) be provided with an effective surface. Too often, due to pressure to provide access, the forest road builder ignores these fundamentals and attempts to solve the lack of load bearing capacity by excessive clearing, sun drying and gravelling. If the road is not delivering the production because of bogging or other failures, the chances are the fundamentals have been overlooked. In the long term this is poor economics that stops or delays production, reduces travel speeds, damages trucks and ultimately costs more than good construction.

Compaction will improve almost any soil by increasing road strength and providing a smooth and strong running surface. Compaction of the subgrade and base course is essential if the road is to carry the design load without failure that will result in production inefficiencies, delays and costs. The subgrade should be compacted and fill material placed in layers and compacted by an appropriate number of machine passes. Effective formation and compaction will require the use of less gravel material with significant savings in the cost of extracting, carrying and spreading gravel. Compaction of the surface is equally, if not more, important than compaction of the subsurface. Surface compaction creates a strong pavement that can carry and distribute wheel loads over a greater area. Additionally, optimum compaction tends to seal the surface, limiting or preventing water entry. This has the advantage of:

● a smoother running surface permitting higher speeds and reducing vehicle damage; and ● less surface erosion (increasing road life and reducing maintenance costs), dust formation and sediment production.

Consolidation by leaving the road surface to settle over a period of time is a poor substitute for compaction. It is strongly suggested that effective compaction is worth the cost.

Road drainage must protect the road from surface and groundwater. Water entering the pavement or subgrade weakens the structure making it more susceptible to failure. Road drainage is fundamental to road life and effectiveness and two basic elements are involved:

1) Surface drainage should drain road surface water and divert this and other water from adjacent areas away from the road formation. First, surface drainage is provided by shaping and compacting the road profile to shed water in either a crowned, outsloped or insloped formation. The crossfall should be in the 4 to 6 percent range to shed water without making driving difficult or dangerous. The correct profile established in construction should be maintained by grading and recompaction. Second, a system of table, turnout and cross-drains should direct water away from the road area.

2) Subsurface drainage protects the road against water that has entered through the road surface and subsurface water that enters from surrounding areas or the water table. The objective is to prevent the road from becoming saturated in a zone between the surface and a level approximately one metre below the surface. This is achieved by surface drainage, compaction of the subgrade and pavement, and drainage or road elevation to keep the road above the level of the local water table.

Failure to provide effective drainage will result in:

● loss of the road through wash out or slumping resulting in road closure; ● failure of the road pavement, affecting production and production economics; ● erosion of the pavement with increasing surface roughness and need for resurfacing; and ● high soil loss leading to stream sedimentation and serious environmental impacts.

Lack of effective road drainage is a major problem. Primary issues are:

● lack of compaction; ● lack of effective surface profiling and the continuing maintenance of this profile; ● inadequate depth and capacity of table drains; ● inadequate turnout of table-drain water; ● inadequate number and size of cross-drainage and structures; ● improper grading practices with water not being drained from the road surface; ● inadequate maintenance of drainage systems; ● blading off the road surface because of poor construction; and ● lack of fill-protection or sediment-trapping systems. The generally inadequate provision of cross-drainage is a major concern. Culverts and pipe cross-drains are expensive and time consuming to construct. Rollover water bars and inverts can be a simple and inexpensive alternative in some cases.

There is ample advice in the literature on the design and construction of effective and appropriate drainage and sediment trapping devices.

The combination of effective compaction and good drainage will result in an effective road. Conversely, inadequate compaction or drainage will, at minimum, cause inefficiencies and, in many cases, road failure. It is all too common to see road surfaces being bladed off to make them workable. This is not only expensive, but is a short-term measure that removes the road pavement and destroys the drainage system with disastrous environmental outcomes. It is also a certain sign that engineering fundamentals have not been achieved.

Key: Culverts and crossings need care

The construction of culverts and crossings is one area where codes require industry to undertake additional work for very important and sound environmental reasons. Watercourse crossings are locations where road construction can cause significant damage and sedimentation of streams. Important factors are:

● Sites for crossings should be excluded from initial alignment clearing and disturbance to avoid soil being bared and debris being pushed into the watercourse.

● Crossings should be planned and set out to preserve vegetation, except on the actual crossing alignment. Clearing should be confined within this area.

● Culverts and crossings are best constructed with an excavator because it is almost impossible for the work to be done by bulldozer without excessive disturbance. Excavators can easily complete all operations without entering the watercourse. Key: Gravel is expensive and gravelling should be managed

Gravelling is an expensive operation and gravel may not be available, or may be of poor quality.

● The use of gravel should be based on need and relate to road standard and design life. Gravelling should be avoided on temporary roads.

● Effective compaction and formation may reduce the need for gravelling. Gravel may not fix the problems caused by poor compaction and formation.

● Forest roads cannot afford detailed analysis of gravel requirements and the sizing and mixture of gravel materials applied to public roads. However, some attention to these factors can yield benefits:

1) Size material: Firstly, the minimum gravel depth should be about 1.5 times the size of the largest particle. The use of unscreened materials can require greater volumes. Secondly, it is common to see unscreened material being hauled considerable distances only to be dumped and the larger materials graded off the road. Quite simple screens can be erected at the gravel extraction site to roughly size material. The appropriate size can then be dispatched to the appropriate course. Bottom courses can use large materials whereas surface layers should use finer materials to achieve a smooth running surface. Even simple screening can result in significant savings, avoid wastage and achieve an improved road surface.

2) Formations should be smoothed prior to gravelling to reduce wastage caused by having to fill irregular surfaces. 3) Compaction should be used to consolidate the gravel and increase its effective life.

Key: Construction must be planned and actively supervised by competent people

Road construction is a complicated and staged process that requires all phases to be achieved in an integrated fashion with minimum works if the road is to be built at the least cost possible. Unfortunately, road construction is commonly not supervised effectively, resulting in:

● slow, ineffective and uneconomic construction; ● excessive clearing, earthworks and wastage of valuable fill material; and ● unnecessary and excessive environmental damage.

Unless effective supervision is applied, an effective and economic road will not result. Effective supervision requires that the supervisor:

● knows the roading plan and the logging priority; ● understands road construction and the management of machinery; ● sets out the centre line and the boundary of clearing, earthworks and exclusion areas; ● manages the orderly and economic progression of each phase of construction; ● matches equipment and resources to tasks and operational needs; ● ensures that operators know what is required and are aware of problems; ● actively supervises and directs operations; and ● concentrates efforts in priority areas.

Responsible environmental management must be applied throughout the construction phase. Damage must be avoided as repair is usually difficult, costly, impractical or simply not done. Supervision must be aware of, and avoid, works that pose environmental threats. Key: Equipment must be appropriate

Ideally road construction should have a range of equipment available so that each task can be achieved in the most efficient way. Equipment is expensive. For small operations or companies, the capital cost of acquiring bulldozers, graders, compactors and excavators may appear to be prohibitive. However, using bulldozers only for construction is inefficient. Larger companies have a greater capacity to utilize appropriate equipment with savings in earth movement, drainage, formation and gravelling.

● Bulldozers remain the major multi-purpose tools for clearing and earthworks. The type of bulldozer used should be matched to the clearing and earthmoving needs. While bulldozers can do many tasks, they may not necessarily perform these efficiently and it may be more economic to invest in purpose-built machines (e.g. graders for formation) than continue using bulldozers.

● Excavators are very versatile and effective construction equipment with significant advantages over bulldozers for excavation and placement of earth, battering of slopes and particularly for the construction of watercourse crossings and culverts. This efficiency tends to increase as conditions become more difficult (e.g. waterlogged). Their use is strongly recommended.

● Graders can spread material and form road surfaces to a high standard and most efficiently without the waste, inefficiency and poor standards resulting from the use of bulldozers.

● Compactors, whether towed or self-propelled, are important tools and their effective use can result in significantly improved standards and overall and long-term savings. Compactors should be matched to the soil type. Steel vibratory drum rollers are the most common. Other machinery including graders, loaders and trucks can assist in compaction, but this requires that the equipment varies the running track to compact the entire road surface. However, in general, this cannot match purpose-built compactors because ground pressures are much lower and the compaction is uneven. Compactors must be used properly, rolling the earth progressively from the edge to the centre of crowned roads with correct engagement and disengagement of the vibratory mechanism to achieve a uniformly strong and smooth surface.

● Trucks and scrapers: Where soil movement distances are short (i.e. less than 50 metres), bulldozers will perform quite effectively. As distances become longer, bulldozer use becomes increasingly slower, uneconomic and wasteful in terms of lost materials. Trucks and scrapers become more economic with distance.

Key: People must be trained and managed

The effectiveness and economics of road construction are highly dependent on the skill and attitudes of the people involved.

● Forest service staff should inspect, identify problems and positively contribute to road construction. They cannot do this unless they have a practical understanding and experience of road construction and equipment management. It is not uncommon for forest officers to avoid inspection because they do not know the process or criticize without being able to provide answers. Training is generally needed and forest officers should have the knowledge to intervene in a situation before it becomes a problem. The industry has the right to expect that the forest officers are experienced and can provide helpful and productive suggestions. Forest officers must have the skills to be able to assess plans and evaluate road-construction operations.

● Operators must be trained, skilled and experienced in machine operation and construction and maintenance techniques. Essential elements are:

1) The operator must be trained in correct techniques. This may take time. 2) The operator must be given the time to practise and gain experience so that new skills can be applied with economic speed.

3) The operator must have incentives to encourage application of best practices. Incentives may be in the form of financial reward, security of employment or prestige.

4) Operators with good skills should be encouraged by seeking their advice and by allowing them to operate without unwarranted and demeaning supervision.

Training will only be effective where there is a corporate employment policy that seeks and values a core of skilled operators. Too often the operator is regarded as expendable and easily replaced. Such attitudes do not result in good operation and can prove to be expensive in the long term.

Investment in skills training can achieve:

● improved efficiency; ● safety; ● reduced machine damage and increased machine life; ● better and more effective roads with gains to haulage productivity; and ● reduced impact.

USE AND MAINTENANCE: KEEPING ROADS EFFECTIVE

Roads must be used and maintained in a way that preserves their lives and efficiency.

Key: Roads should be used wisely

There are times when roads should not be used. Under wet conditions, any attempt to haul timber may be counterproductive. Under these conditions the road is most sensitive to damage:

● Production will be slow, unsafe and counterproductive in terms of road and vehicle damage. Industry must provide for wet weather areas and log stockpiling to overcome these events.

● Use of the road will provide the highest threat of soil loss and stream sedimentation. Continued use with increased rutting will only worsen the situation.

The Code of Practice for Forest Harvesting in Asia-Pacific provides operational restrictions for felling, skidding and road construction but provides no guidelines for haulage. This oversight may need correction.

Key: Maintenance must be applied and effective

It is all too common to see a well-aligned and constructed road become ineffective, if not impassable, because maintenance has not been applied or is applied properly. Road systems must be maintained to ensure their efficiency and keep drainage and sediment control systems operative.

Proper maintenance requires a concerted inspection program with regular checks of drainage systems and early correction of faults.

Maintenance should be applied on both a preventative and demand basis. Proper road use requires a pro-active maintenance program based upon timely inspection of road conditions. Such checking should not only guide maintenance but should also be part of a learning process to analyse and correct failures. A supervisor should be responsible for regular inspections of road surfaces and drainage systems to identify wear, and plan for repair. Timely maintenance can save costly repairs and avoid inefficiency in the road system. The objective of effective maintenance is to maintain the efficiency and life of the road by:

● maintaining a good riding surface; ● maintaining effective surface and subsurface drainage; and ● correcting safety hazards to vehicular traffic. A good operating surface will improve haulage speeds and reduce vehicle damage. It requires effective surface grading to smooth ruts and compact the surface to enhance the life of the grading. Drainage maintenance requires the surface profile to be restored as well as the table, turnout and cross-drains. Water must be able to freely drain from the road surface and then be managed in the side-drainage system.

While surface smoothing is usually done well, often little attention is given to the restoration of drainage systems. Common problems are:

● Grading material from the road to the sides instead of returning material to the road.

● Not using compaction with grading with the result that re- profiling has only short-term benefits and surface loss is increased.

● Surface grading creates a rill along the road edge and prevents surface water from entering the side drains.

● Not removing road edge vegetation, which stops free surface drainage and confines water to the road.

● Not reopening table, turnout and cross-drains.

Grading demands knowledge of the objectives, timing, skills and correct techniques in application. Good grading is more than just temporarily smoothing the surface.

ASSESSMENT

Road systems should be subject to practical forms of assessment of effectiveness and environmental management deficiencies:

● Cost assessment needs to cover total costs of skidding and haulage, in addition to the direct road construction and maintenance. ● Environmental effectiveness can be assessed via audits or monitoring programs. The Queensland Department of Natural Resources in Australia has developed auditing procedures and practices for their Native Forest Timber Production Code of Practice. Alternatively, or in addition, forest officers should utilize indicator-type monitoring systems soundly. Provided these are well designed and used cooperatively and positively, they can be useful tools for both government and industry. The aim is to identify and correct problems.

FINAL COMMENTS

The need to get smart: Industry can react to the imposition of new standards in one of two ways. Firstly, it can fight, object and resist. This is rarely sensible or productive unless the standard is in error. The alternative is to accept and try to meet the standard. In Queensland, the introduction of a code was strongly opposed as being uneconomic. Two years later, the objections had disappeared. Industry quickly realized the value of the techniques and avoided problems or the need for corrective work - all parties gained.

Seeing is believing: Calls to change the modus operandi are often opposed because there is little or no experience in implementing new practices and there is disbelief in their effectiveness. There can be great value in visiting conforming operations and seeing how they work. Often lack of understanding or experience results in an enormous waste of effort as people “reinvent the wheel”.

RECOMMENDATIONS

Given the costs, economic consequences and potential environmental problems associated with poor roads, there may be value in:

● Collating road construction and management information. There are many appropriate texts, manuals and guidelines that can provide practical and relevant information on road construction. Preparation and publication of a list of useful information would be useful.

● Training programs should be developed for roading supervisors, forest officers and operators to achieve similar benefits obtained from chainsaw and logging machine operator training. This should involve hands-on experience in equipment management and construction techniques. Development of road training is not a trivial matter given the need for access to land and equipment. Given the cost, such training may be best conducted on a regional basis.

REFERENCES

FAO. 1999. Code of Practice for Forest Harvesting in Asia- Pacific. Food and Agriculture Organization of the United Nations, Bangkok.

Useful information from Queensland, Australia

● Forest Codes of Practice - a range of forest codes of practice and other information has been prepared by the Queensland Department of Natural Resources.

● Roads in the Wet Tropics - Queensland Department of Main Roads provides an overview of environmental management systems for sealed and unsealed roads in tropical situations.

● Unsealed Roads Manual - Guidelines to Good Practice. A 1993 publication of the Australian Road Research Board providing design, construction and maintenance information.

● Soil Erosion and Sediment Control - Engineering Guidelines for Queensland Construction Sites. A 1996 publication of the Queensland Division of the Institute of Engineers, Australia.

● Forest Road Manual - a 2000 production of the Queensland Department of Primary Industries (Forestry).

6. Reduced impact logging in Bhutan - Ugyen Thinley*

* Director of Forestry Services, Ministry of Agriculture, Kingdom of Bhutan, Tel: ++(975 2) 32 1185/32 3055, Fax: ++(975 2) 32 2395, E-mail: [email protected]

INTRODUCTION

Bhutan is known as the land of the thunder dragon. It is a mountainous country nestled in the heart of the Himalayas. It has a total land area of 40 077 km2, of which 72.5 percent is covered by forests. Bhutan’s elevation ranges from 150 m to more than 7 500 m above sea level. This wide range in elevation has resulted in a tremendous biological variation that makes Bhutan one of the most biologically diverse countries in the world.

Although the total area under forest management, where active timber harvesting takes place, is only 3.45 percent of the geographical area of the country, forests play a major role in Bhutan. Most people live in a rural, forested landscape and depend on the forest for their livelihoods. The international community acknowledges Bhutan’s progressive conservation and development policies, which include preserving its near pristine environment through the conservation of extensive areas under forest cover.

The Government of Bhutan recognizes the importance of forests vis à vis the well-being of its people and for a long time has made the conservation of forests and the natural environment top priority in the national development policy. The generation of direct economic revenue from commercial forest harvesting is given low priority. Commercial timber harvesting and processing contribute 5 percent to the total national revenue. The export value of forest products is approximately Nu. 80 million per year[4].

The credit for Bhutan’s visionary policies belongs to His Majesty the King who decreed that a minimum of 60 percent of the country should be kept under forest cover forever. In 1999, the Government banned the export of logs to conserve forests further and to provide timber for local people at affordable prices in the interest of rural development and the maintenance of cultural values.

Logging operations were nationalized in 1979. Since then, forest management practices have moved steadily towards more sustainable management with the introduction of more intensive inventories, better data analysis, improved planning and more environmentally sound harvesting and road construction methods. Bhutan is now in the process of preparing a national Code of Best Practice, which is nearing completion.

OBJECTIVES OF THIS PAPER

The paper addresses a number of issues concerning better forest management and has the following four objectives:

● to review the current situation and knowledge of reduced impact logging (RIL) in Bhutan with regard to technical, economic, institutional and training aspects;

● to identify knowledge gaps and constraints in implementing RIL as a key element of sustainable forest management;

● to formulate recommendations that will help to advance the more widespread adoption and effective implementation of RIL components in Bhutan; and

● to state Bhutan’s political commitment for the implementation of practical measures aimed at achieving sustainable forest management.

It is hoped that sharing the Bhutanese experience will help to improve forest-harvesting practices and promote the adoption and effective implementation of RIL in Asia and the Pacific.

HARVESTING SYSTEMS IN BHUTAN

Bhutan has developed its own approach to forest harvesting in a very mountainous environment. Ground-based systems that are common in much of the tropical world cannot be applied in Bhutan, since this would result in large-scale environmental degradation. Currently, all commercial harvesting is based on cable logging systems. Cable logging, using fixed skylines, was first introduced in the early 1970s. Gradually, other equipment was introduced such as skidders, mini-tower yarders, hydraulic loaders and backhoes (for road construction).

The long-distance cable logging system is the most suitable option for commercial timber harvesting in the mountainous terrain of Bhutan. Both gravity and haul-back machines using a mini-tower are used. On average, the time required for the extraction of one cubic meter of timber using long-distance gravity skylines is 15.34 minutes while the shorter distance machines, using a haul-back line, take an average of 10.52 minutes/m3.

Gravity machines (cable cranes) can have a logging reach of up to 1 500 m. The distance between the two consecutive cable crane lines is usually 60 m or less. Over such a long distance, cable lines usually require intermediate support. They can lift a total weight of 2 500 kg (carriage and transport load).

This type of logging system requires careful planning, engineering and surveys to meet technical conditions for establishing and operating the cable crane.

Felling and bucking is done once the skyline corridor and the trees to be felled have been marked and enumerated. Care is taken to fell towards the extraction corridor or into the logging opening. After felling is completed, the long-distance cable crane is set up.

The whole logging operation is radio controlled. The forest management unit is divided into compartments or coupes. Usually, natural features such as rivers, creeks and ridges are chosen as boundaries. Utilization maps are prepared using these boundaries. The selection of annual logging coupes is in line with the management plan and according to annual targets. In selecting the coupe, stand volume and the quality of trees are determined. Normally, a system of parallel cable lines is used to develop a logging coupe. This systematic approach is suitable for the steep terrain prevalent in most logging areas.

SILVICULTURAL SYSTEMS

The traditional silvicultural system in Bhutan is a selection-and- improvement method of harvesting and regeneration. The natural forest is in many cases over-mature, with little regeneration in the understorey. Older and poorer quality trees are marked for felling to open the forest and assist natural regeneration. The first entry into the natural forest seeks to remove approximately 25 percent of the standing stock.

With the use of skyline systems, a narrow corridor is clear-felled to allow unobstructed installation of the cable line. The adjacent forest is marked and felled according to the silvicultural objectives. This clear-felling corridor approach is still the common silvicultural system applied in the hardwood forests.

In the conifer zone, the preferred silvicultural system is the group selection method. Small openings, varying from 0.2 to 0.3 ha in size, are created by felling trees along the skyline corridor. The single tree selection system has not been successful in stimulating regeneration in the conifer zone whereas the group selection system results in good natural regeneration. Where natural regeneration has difficulty becoming established, planting is carried out using the species naturally occurring on that site.

The productivity of the group selection system is also greater than the traditional single tree selection system. The traditional single tree selection system has an average productivity of 3.88 m3/hour while the group selection system averages a productivity of 5.01 m3 per working hour (FAO, 1999).

IMPLEMENTING REDUCED IMPACT METHODS Adoption of mechanized extraction

Most early logging in Bhutan used manual labour. Long, continuous slopes made the manual rolling of logs to a road possible. Initially, trees were felled and bucked manually. Gradually chainsaws were introduced but the manual extraction remained. Trees were marked and felled using a single tree selection system, cut into short logs (usually not more than 4 m) and rolled down the slope, sometimes for as far as a kilometer.

All undergrowth and regeneration along the rolling path had to be cleared. Rolling paths were often in small gullies or depressions. The ground would become compacted causing accelerated runoff and erosion, which made regeneration very difficult. Remaining trees often were damaged by the rolling logs, which frequently resulted in decay and disease. This method of harvesting had a high impact and was slow and inefficient.

Cable logging, using fixed skylines, was first introduced in the early 1970s. As Bhutan introduced more commercially oriented harvesting of its forests, more skyline equipment was purchased. Now, all of the commercial harvesting is based on cable skyline logging systems.

The conversion to skyline logging posed many challenges. Skyline logging requires good planning, engineering and surveying skills. The entire planning and location of the road system must be done to facilitate the most efficient use of the skyline equipment. The task of installing and operating a skyline system requires many specialized skills that were not available in the country when this technology was first introduced.

The environmental benefits of this change to mechanized logging are obvious. Soil disturbance is very low since the fixed skyline system fully suspends logs during the extraction process. Damage to logs is minimized. Landings are usually smaller, particularly if mechanized loading using small, hydraulic loaders is used. With the skyline system, regeneration is left largely undisturbed, since logs are lifted out of the forest, even in a single tree selection system. Improvements in road construction

Road construction in the mountainous areas of Bhutan creates probably the biggest environmental impact. In the past, roads were constructed entirely by manual means. This was slow and inefficient.

Small, crawler tractors such as the D-6 were introduced as the first step in the mechanization process. With the use of this machinery, Bhutan was able to open up its forest areas and introduce commercial utilization of the forest resource. However, the crawler tractor creates a high degree of soil disturbance. In the sedimentary geology of the Himalayas, the soils and underlying schist and gneiss are highly erodible. The very steep banks of the road excavation often failed and fill slope failures and erosion were common problems.

In recent years, a major step has been taken towards reducing the impact of road construction through the introduction of hydraulic excavators or back-hoes. With these machines, cut slopes can be tapered easily and fill material can be placed to create a more stable roadbed and to minimize erosion. Culverts are easier to install and ditch lines can be maintained easily. All of these improvements have reduced the environmental impact of forest road construction significantly, while simultaneously improving the quality of the roads.

However, construction costs have increased with the more environmentally sound method. Using the excavator as the main construction machine, on average, 5.60 m of road can be constructed per working hour. Using the bulldozer to construct the road under similar terrain conditions results in productivity of 13.61 m/hour. The cost of road construction was found to be US$9.28/m using the excavator compared to US$6.07/m by bulldozer (FAO, 1999).

Summary of improvements

The changes to harvesting and road construction methods through the introduction of more appropriate equipment and techniques and through better planning and training, have contributed greatly to the achievement of sustainable forest management. Refinements to the silvicultural system to reflect the regeneration requirements of the different forest ecosystems in the Bhutanese forest complex have also helped Bhutan to move toward sustainable forest management.

These benefits can be summarized as follows:

● Total road distance requirements have been reduced.

● Roads are now being constructed in a more environmentally friendly manner with less erosion and less site disturbance.

● With the adoption of skyline systems and hydraulic loaders, landing size has been reduced.

● More appropriate silvicultural systems, such as the group selection system in the conifer zone, have resulted in better regeneration and survival of residual trees. This will lead eventually to shorter cutting cycles.

● Logging waste has declined with the adoption of better harvesting methods.

● Soil disturbance and erosion have been reduced significantly in logging areas.

● Productivity for the harvesting activities has improved significantly.

Challenges and constraints

Despite the progress that has been made in forest harvesting, road construction, and environmental management, there is room for improvement.

● Traditional extraction methods (dragging and pulling) are still practised by rural people. This creates greater damage than is desirable. More significantly, logs and large tops are sometimes left in the forest. This provides a breeding ground for the spruce bark beetle (Ips spp), the major forest pest in the conifer zone. Methods used by rural people are also quite poor since simple conversion methods result in a high percentage of wood waste.

● Another constraint is the lack of adequate and appropriately trained human resources to monitor and implement harvesting operations efficiently. Skyline harvesting methods require special skills and training. They are also labour intensive. To monitor and control activities within the forest management units properly, qualified personnel are required.

● Routine maintenance on forest roads remains inadequate. Blocked drains and culverts result in unnecessary erosion. This is particularly a problem during the monsoon season when rainfall is heavy.

● Environmentally sound road construction methods may be desirable in meeting environmental goals, but they are more expensive. Since Bhutan’s policy is to prioritize the satisfaction of local wood needs at the expense of maximizing its revenue, such higher costs place a significant burden on the viability of the harvesting operations.

● While the adoption of mechanized harvesting and road construction methods produces environmentally beneficial results, the purchase and maintenance of equipment is expensive. Much of the production equipment is old and needs to be replaced. As Bhutan is pursuing a policy in which environmental protection and the maintenance of traditional values are prioritized over the maximization of commercial gains, this places a significant financial burden on existing commercial harvesting activities.

● Sometimes management of logging debris is carried out poorly, causing blockages in natural watercourses and resulting in erosion and a deterioration of water quality.

● Even in the commercial harvesting areas of the conifer zone, logging debris can provide a breeding ground for the spruce beetle. If their populations increase, they attack and kill live spruce. More vigilance needs to be exercised in minimizing logging debris.

The greatest challenge is to strike a balance between commercial timber harvesting, traditional utilization for domestic consumption and the national goals of maintaining the environmental values of forest cover, soil conservation, clean air and water.

Another area that impacts negatively on the achievement of sustainable harvesting and natural regeneration, is grazing in forest areas. Bhutan has a rural culture in which ownership of cattle and yaks is prized. These animals graze throughout the forest areas and damage regeneration through trampling and browsing. This has a negative impact on the harvesting cycle and ultimately, on the annual allowable cut.

RECOMMENDATIONS

Strengthening the legal forest management framework is an important element in achieving sustainable forest management. The Forest and Nature Conservation Act (1995) of Bhutan requires an approved forest management plan for all forestry operations. No forest harvesting is permitted until there is an approved management plan.

A code of practice, adapted to the Bhutan situation, is now under preparation and is nearing completion. This code will strengthen institutional arrangements further and will benefit Bhutan’s efforts to achieve sustainable forest management.

The existing equipment of the forest development agency is old and outdated. It is recommended to purchase new road construction equipment and cable cranes to improve the efficiency of harvesting and forest road construction. Cable cranes with a lift capacity of 5 tonnes will be acquired to further improve efficiency and reduce environmental impact.

Training remains a priority and a challenge. Only adequately trained, skilled and experienced machine operators will be employed for road construction and timber extraction in sensitive forest ecosystems and difficult terrain. The adoption of environmentally sound techniques requires additional skills and more qualified human resources.

CONCLUSIONS

Prior to the early 1970s, logging was carried out manually and impacts on the soil, the residual stand and hydrology were high. Bhutan has endeavoured to achieve high standards of environmental protection by adopting more appropriate management, road construction and harvesting techniques.

Bhutan’s development policies are aimed also at maintaining cultural values for its population, which is heavily dependent on the forests. The pursuit of these policies has required a limited amount of commercial forest exploitation in order to create revenues for national development.

Generally, Bhutan has been successful in achieving its environmental and social development goals, partly through the adoption of appropriate technology and techniques and partly due to a clear vision that has allowed decision-makers to follow a consistent course of action.

REFERENCE

FAO. 1999. Environmentally sound forest infrastructure development and harvesting in Bhutan. Food and Agriculture Organization of the United Nations, Rome.

[4] US$1 = Nu 46

7. Simple measures with substantial impact: implementing RIL in one forest concession in East Kalimantan - Alexander Hinrichs, Rolf Ulbricht, Budi Sulistioadi*, Yosep Ruslim**, Irwan Muchlis and Djwa Hui Lang***

* Promotion of Sustainable Forest Management in East Kalimantan (SFMP-gtz-MoF), P.O. Box 1087, Samarinda 75001, East Kalimantan, Indonesia, Tel.: ++(62 541) 73 3434, Fax: ++(62 541) 73 3437, E- mail: [email protected]

** Mulawarman University, Samarinda, East Kalimantan, E-mail: [email protected]

*** P.T. Limbang Ganeca, Jakarta and Samarinda East Kalimantan

INTRODUCTION

Forest management is affected negatively by excessive environmental damage caused during harvesting operations. Several studies on the effects of harvesting in Indonesia indicate that felling and skidding, based on the Indonesian Selective Cutting and Planting System (TPTI), cause, on average, 20-45 percent damage to the residual stand and open up about 20-35 percent of the area depending on harvest intensity, topographic conditions and machinery (Bertault and Sist, 1997; Elias, 1998).

Reduced impact logging (RIL) has been tested recently in Indonesia in several forest concessions. Research results indicate that RIL implemented in a practical manner can raise forest-harvesting performance (Klassen, 2000). The implementation of RIL fulfils several key indicators of the Indonesian standard for forest certification in natural production forests (Agung and Hinrichs, 2000).

The cornerstones of RIL are the planning of skid trails based on information from topographic and tree location maps, opening up of the skid trails prior to felling, directional felling and log extraction with winches (FAO, 1999). These measures aim to:

● reduce damage to soils (compaction and erosion); ● leave the residual stand in a good condition (to allow re- cutting as soon as possible); ● increase harvest efficiency by reducing logging waste; ● increase workers’ safety and reduce accident rates; and ● reduce rehabilitation and planting costs.

Implementing RIL should also have a positive impact on efficiency and cost-effectiveness. Some private forest concessionaires in Indonesia, especially those considering or already preparing for forest certification (ecolabelling), perceive these benefits. However, most concessionaires remain reluctant to adopt RIL because they believe that it requires major changes to field operations and well-trained staff. Many questions regarding the economics of RIL also remain. Finally, neither the Indonesian Government nor civil society encourages or pressures the private sector to implement RIL.

This paper discusses three years of experience with the implementation of RIL in one private forest concession in East Kalimantan. The private company was willing to test and implement RIL under the following conditions:

● RIL should not lead to major additional investments (re- engineering of harvesting machinery and change in methods are not required).

● RIL should be tested/implemented under the current conditions of the concession (workforce, topography and existing machinery).

● RIL should neither reduce productivity nor increase operational costs.

● RIL should reduce logging waste.

● RIL should be in line with government regulations and certification requirements.

These are typical needs of private companies. Avoiding re- engineering and major investments will only be possible for companies currently operating on flat or slightly undulating terrain. Logging operations in the mountainous regions of Borneo have to consider skylines or equivalent cable systems, especially if forest certification is the aim. The following discussion does not cover such conditions.

IMPLEMENTATION

In 1998, the management of P.T. Limbang Ganeca/East Kalimantan and the Sustainable Forest Management Project (SFMP-gtz) launched a RIL pilot project. In a first step, a RIL implementation team was established at camp level, comprising the camp manager and the heads of the logging and planning divisions (Kabid Perencanaan and Kabid Produksi). To implement RIL effectively, the planning and production teams need to cooperate closely. In-house training for the planning and production teams was conducted, focusing on necessary changes and additional tasks. The company developed computer software for topographic data analysis.

In 1999, a comparative study was conducted in five 1-hectare plots of two compartments. The effects of conventional logging (CL) versus RIL were evaluated, with regard to damage, efficiency, productivity and costs (Ruslim et al., 2000). At the same time, the cutting block for the next year was prepared by the planning division following RIL requirements. Several in- house training courses for logging crews (foremen, operators) and external courses for the division heads were conducted. By the end of 1999, RIL was understood completely at all levels in the company and RIL guidelines and standard operating procedures (SOP) were prepared (Ruslim et al., 1999, Ulbricht et al., 1999). Implementation started in 2000 on a 2 350 ha annual cutting block with ongoing monitoring/evaluation by the company, SFMP-gtz and a joint implementation team from the Ministry of Forestry the company and SFMP-gtz. The results are currently being analysed.

DEFINING REDUCED IMPACT TRACTOR LOGGING

RIL was defined as consisting of six major elements (Figure 1). Two years before felling (Et-2), in addition to the standard pre- harvest inventory, a detailed topographic survey is conducted. Six months before logging (Et-06), a tree location map is prepared (GIS-based), on which the optimal locations of the skid trails, according to ten agreed upon principles, are planned and marked. The marking of skid trails in the field and opening up take place prior to felling. The principles of the skid trail determination are explained in the SOP.

The felling team is advised to conduct directional felling whenever possible and reduce logging waste to a minimum. Safety measures are required such as escape routes, flexibility in felling direction and personal safety equipment. Skidding is allowed only on the planned skid trails, resulting in a winching corridor of 30 m on both sides of the skid trail. Blading is avoided whenever possible (on all skid trails with slopes less than 20 percent).

The foremen of the production section conduct supervisory and routine controls. After the completion of logging, tractor operators close skid trails to reduce erosion. Joint teams (production and planning) assess the quality of work in order to determine premium wages.

Figure 1. The six elements of RIL

The planning teams are responsible for:

● Topographic survey in conjunction or additional to pre- harvest inventory (ITSP). ● Development of tree location maps with topographic information. ● Planning and marking of skid trails.

The production teams have the following tasks:

● Opening up of skid trails. ● Directional felling whenever possible. ● Log extraction using winches. ● Closing up of skid trails and log decks. ● Supervisory and routine control during logging.

The joint tasks of both teams are:

● Evaluation of planned and actual skid trail locations. ● Block inspection after logging (work performance evaluation).

For the block inspection, task indicators - grading scheme and field evaluation sheets - were developed. Based on a sample of 30 trees and 2-3 skid trails per sub-compartment, the performance (work quality) of each operator team was evaluated. It is proposed to combine the block inspection results with the payment scheme (base wage plus additional quality premium) to secure workers’ interests. Table 1 provides an example of the internal evaluation of the activities by the chainsaw operator and assistant.

Table 1. Indicators and grading for internal evaluation of felling crews

No. INDICATOR DEFINITION GRADE DESCRIPTION 1. Contour maps The contour map Good The contour map is is very useful to used every day define the proper Fair The contour map is felling direction used sometimes Poor The contour map is never used 2. Escape routes Safety first for Good Helper always operator and cleared an escape assistant route Fair Helper sometimes cleared an escape route Poor Helper never cleared an escape route 3. Under cuts An under cut is Good Angle of around used to define the 45° felling direction Fair Angle of between towards the skid 15° trail Poor Angle of <15° 4. Hinges and The back cut and Good Proper hinge 5-10 back cuts hinge are very cm; height of back important to define cut 5-10 cm the felling direction Fair Proper hinge 3-5 and to avoid cm; height of back breaking the trunk cut 3-5 cm Poor Proper hinge < 3 cm; height of back cut < 3 cm 5. Stump height High stumps Good Maximum 30 cm for trees without decrease log buttresses volume and Fair Between 30-50 cm increase logging Poor > 50 cm waste 6. Use of the Proper felling Good Wedges always wedge direction towards used to cut trees if the skid trail needed Fair Wedges sometimes used Poor Wedges never used 7. Felling direction Reduced damage Good Felling direction of towards the to the residual <45° skidtrail stands from the Fair Felling direction of skidding process 45-60° Poor Felling direction of >60° 8. Damage to Potential crop Good Almost no potential potential crop trees for crop trees are trees regeneration damaged Fair Potential crop trees in the azimuth are damaged slightly Poor Many dead potential crop trees 9. Reduction of Too much timber Good Cross-cutting and logging waste left behind debranching done decreases volume Fair Medium amount of and adds to waste timber waste left Poor Too much timber waste left 10. Leaving behind Maximal use of all Good No commercial trees for no commercial trees trees left behind reason (diameter >50/60 Fair Some commercial cm) trees left behind Poor Too many commercial trees left behind 11. Method for Labels are needed Good Label is always attaching the for timber tracking present at bottom labels to the documentation of bole and stump logs and Fair Label sometimes stumps present at the bottom of bole or stump Poor Label not present at bottom of bole and stump 12. Number of trees cut per month 13. Topographic Stand structure conditions (dense, medium light) Topography (rugged, moderate flat) Soil type (clay, swamp rock) 14. Number of Record sum of trees evaluated tree samples NB: Points 1, 2, 6, 11, are tested when felling is carried out by the chainsaw operator and assistant. Professional judgement is needed by the evaluator.

Source: Ruslim et al. (1999)

Table 2 shows the major differences between the proposed tractor-based RIL and CL in Indonesia.

Table 2. Basic differences between RIL and CL in Indonesia

RIL CL Contour and tree location Tree location maps prepared for legal maps used by harvesting purposes, but not used by harvesting teams teams Skid trails planned and No preplanning for skid trails, opening opened prior to felling up during felling/skidding operations Directional felling so that the Felling direction determined by the tree falls at 45° angle to the weight of the canopy; wedges not used skid trail Tractor stays on pre-opened Tractor always drives directly to each skid trail: all logs up to 30 m log on both sides of the skid trail are winched to the tractor Logging waste reduced as Effort to reduce loggingwaste are limited much as possible: · Under cuts placed as low as possible · Stem breakage avoided · Maximum use of timber Skid trail of minimal width, Tractor manoeuvres with abundant damage to trees on both damage sides of the skid trail avoided Closure of skid trails after No closure harvesting to reduce erosion (Closing-up) Block inspection (quality and No formal block inspection quantity control)

STUDY RESULTS

Study design

The project team conducted a study to compare RIL with CL at P.T. Limbang Ganeca (Ruslim et al., 2000). In two 100-ha compartments, five 1-ha plots were selected for detailed measurements. The overall conditions were as follows:

● Forest concession area since 1969; sustainable AAC 52 500 m3/yr (result of DIPSIM calculation).

● Lowland dipterocarp forest, undulating terrain (slopes less than 30 percent); altitude 70-80 m asl.

● High logging intensity of 65 m3/ha (11-12 trees/ha) on all plots.

● Distance between plots and log yards identical for RIL and CL plots.

● Standard equipment: Komatsu D85E-SS crawler tractor, Stihl 070 chainsaw.

● Experienced operators on all plots; operators on RIL plots familiar with RIL.

● Winching up to 30 m on RIL plots; tractor operator has two helpers.

A time study for felling and skidding was conducted and data on residual stand damage (>20 cm diameter at breast height [DBH]), timber output (net exploitation factor) and forest opening were collected (Figure 2).

Study results

Felling and skidding efficiency and productivity

In the study area, the differences between RIL and CL for felling activities were minor. Concerning skidding, there was a noticeable difference in pure work time. Overall skidding productivity (per day) was calculated based on work time including lost time for meals, private activities and machinery repair.

Figure 2. RIL comparative study

Skidding under RIL required more time and reduced productivity by about 15 percent compared to CL. The main reason is that winching was conducted up to 30 m and tractor log loads were not combined. Reducing the winching corridor to 15 m and allowing combined loads to be skidded would increase skidding productivity, but would also increase damage.

Opening up of forest stands by felling and skidding

Stand openings following RIL were 29 percent lower than after CL. In particular, opening up by tractors was reduced drastically (by 65 percent). The damage caused by tractors usually delays natural regeneration. The large reduction indicates considerable environmental benefits and demonstrates that forest concessions adopting RIL can pass forest certification more easily (Figure 3).

Figure 3. Opening up by logging activities (average of five 1- ha plots)

Damage to the residual stand

The residual stand damage due to felling was not particularly different between the two treatments (dbh of trees measured was 20 cm up). However, damage to the residual stand caused by skidding in CL was far greater. RIL caused 26 percent less overall damage to the residual stand. In particular, RIL reduced residual stand damage from skidding by 55 percent as compared to CL (Figure 4).

Figure 4. Causes of damage to the residual stand (average of five 1-ha plots)

Net exploitation factor

The net exploitation factor in the RIL plots was higher (85 percent) than that in the CL plots (81 percent). Logging waste was reduced by 20 percent, although the CL operators were also instructed to reduce waste. Efforts have been made to increase timber usage efficiently by cutting the buttresses and placing the undercut properly (Figure 5).

Figure 5. Proper felling techniques reduce timber losses

Costs

Cost calculations are based on the assumption that in CL one felling and one skidding team (five workers) can complete 30 ha/month (timber production of 1 425 m3/month). Table 3 shows some cost data for harvesting operations.

Table 3. Forest harvesting operational costs (source: internal concession data from 1998)

Activity Scale Rp/month Rp/ha 1 Planning division Conventional preharvest 100 ha/mth Rp 4 237 000 Rp 42 inventory (ITSP) 370 RIL ITSP and topographic 100 ha/mth Rp 7 177 000 Rp 71 survey* 770 RIL topographic survey only 100 ha/mth Rp 4 683 750 Rp 46 838 Planning/mapping of skid 500 ha/mth Rp 1 428 000 Rp 2 856 trails Marking the RIL skid trails 200 ha/mth Rp 2 245 750 Rp 11 229 2 Production and equipment divisions RIL opening up skid trails, 200 ha/mth Rp 31 852 165 Rp 159 landings + closing up 260 Felling 30 ha/mth Rp 3 070 180 Rp 102 339 Conv. skidding including 30 ha/mth Rp 33 422 236 Rp 1 114 construction of log landings 075 RIL skidding - estimation (1)** 25.5 Rp 31 852 165 Rp 249 ha/mth 100 RIL skidding - estimation (2)** 25.5 Rp 29 697 079 Rp 1 164 ha/mth 591

* Calculations for a joint ITSP and topographic survey team.

** RIL reduces skidding productivity by 15 percent, volume skidded is therefore reduced to 25.5 ha/mth. Operational variable machinery costs are estimated to be reduced by between 5 (Estimation 1) to 15 percent (Estimation 2).

Under RIL the work time of a tractor working with a heavy load is reduced (more time was spent for non-travelling activities like winching and opening up areas; the number of trees per trip was also less). Therefore, the variable tractor costs (especially maintenance and fuel costs) could be reduced by 5 to 15 percent, although additional tractor costs accrue due to the use of higher quality cables in RIL.

Implementing RIL under the forest conditions of P.T. Limbang Ganeca required additional tasks for planning and the production teams (e.g. for the topographic survey, marking and constructing skid trails prior to felling, winching and closing up of the skid trails). The additional tasks increased operational costs by approximately Rp 1 000/m3 for the planning operations and Rp 5 000 to 7 000/m3 for production operations (depending on the estimation for variable tractor costs under RIL). Harvesting costs (including planning and operational cost up to roadside/log landings) consequently were only about US$1.00/m3 higher (at an exchange rate of US$1.00 = Rp 6 000) (Table 4). Additional overheads for human resource development, block inspection, team coordination and planning technologies still need to be considered. However, increased operational costs were covered directly by the financial gains due to higher timber utilization (increased net exploitation factor of about 4 percent). If the company is allowed to raise the annual allowable cut according to the higher exploitation factor, implementing RIL under the conditions of this case study will lead to a direct financial benefit.

Table 4. Comparison of harvesting operational costs using RIL and CL

Activity CL (Rp/m3) RIL (Rp/m3) 1. Planning division Rp 943 Rp 1 789 2. Production division ·Estimation 1 (see above) Rp 25 342 Rp 31 473 · Estimation 2 (see above) Rp 25 342 Rp 29 721 Total (Rp/m3) Rp 26 285 Rp 31 501 - 33 262 Total (US$/m3) US$1.00=Rp 6.000 US$4.38 US$5,25 - 5.54

Note: Harvesting intensity = 48 m3/ha; financial data represent cost calculations before the Asian crisis (1997).

Other tangible benefits of RIL include a reduced need for forest rehabilitation (obvious in the study case), lower equipment maintenance, lower accident rates and shorter time needed for the forest to recover until the next economically viable harvesting (shorter cutting cycle). The direct and indirect economic benefits, as under the conditions of the study area, clearly support RIL implementation.

LESSONS LEARNT

Implementing RIL in a private forest concession in Indonesia requires the following conditions to be met by the company: ● A long-term commitment by senior management to change from a functioning and legally acceptable harvesting system to a more complex system that requires detailed instructions to field managers.

● Willingness to invest in human resources development (training, study tours) and, if required, in new technologies (database management, GIS).

● Freedom for the field staff to apply a learning-by-doing approach.

● Time to adjust planning and production measures (a minimum of two to three years).

● Intensive and reliable internal control systems.

● A culture of openness and regular communication and feedback.

The major constraints and challenges for large-scale RIL implementation in Indonesian concessions are:

● Role of the government: So far, RIL is neither enforced nor controlled precisely by the Indonesian Government. Innovative concessionaires receive no incentives to conduct environmentally sound harvesting.

● Role of the government: Legal framework conditions support RIL insufficiently. Currently almost all forest concessions in Indonesia are affected by tenure insecurity (land claims, illegal logging), major uncertainties about their legal status, ambiguous policies regarding license extension and major political changes (related to political/administrative decentralization). Only transparent and stable framework conditions can encourage investments in environmentally sound harvesting.

● Role of the forest concessions: Forest concessionaires have to accept RIL as a standard part of TPTI, which they are obliged to follow. Any long-term commitment in forestry requires RIL and related human resource development.

● Role of the international community: So far RIL implementation is more a set of secluded project activities than a strategic approach to improve forest harvesting. International organizations and donors need to streamline their activities and provide effective policy advice and training.

● Role of the market: Forest certification (ecolabelling) requires RIL. However, market incentives for certified timber products are still uncertain. Market initiatives should encourage forest concessionaires to invest in RIL, for example, with partnership agreements between timber consumers and producers.

REFERENCES

Agung, F. & Hinrichs, A. 2000. Self-scoping handbook for sustainable forest management certification in Indonesia. SFMP Document No 6a. Jakarta: Ministry of Forestry and Estate Crops in cooperation with Deutsche Gesellschaft für Technische Zusammenarbeit. (Indonesian version also available).

Bertault, J. & Sist, P. 1997. An experimental comparison of different harvesting intensities with reduced impact and conventional logging in East Kalimantan, Indonesia. Forest Ecology and Management, 94: 209-218.

Elias. 1998. Reduced impact harvesting in the tropical natural forest in Indonesia. Forest Harvesting Case Study 11. Food and Agriculture Organization of the United Nations, Rome.

FAO. 1999. Code of Practice for Forest Harvesting in Asia- Pacific. RAP Publication: 1999/12. Food and Agriculture Organization of the United Nations, Bangkok.

Klassen, A.W. 2000. Analisis aspek finansial dan produktivitas reduced impact logging (RIL). Hutan Indonesia. Buletin terbitan APHI. Edisi 09, Tahun II/Agustus 2000. Ruslim, Y., Hinrichs, A. & Sulistioadi, B. 2000. Study on implementation of reduced impact tractor logging. SFMP Documents No. 01a. Jakarta: Ministry of Forestry and Estate Crops in cooperation with Deutsche Gesellschaft für Technische Zusammenarbeit. (Indonesian version also available).

Ruslim, Y., Hinrichs, A., Ulbricht, R. & P.T. Limbang Ganeca 1999. Technical guideline for reduced impact tractor logging. SFMP Documents No 10a. Jakarta: Ministry of Forestry and Estate Crops in cooperation with Deutsche Gesellschaft für Technische Zusammenarbeit. (Indonesian version also available).

Ulbricht, R., Hinrichs A. & Ruslim, Y. 1999: Technical guideline for salvage felling in rehabilitation areas after forest fire. SFMP Document No 1. Jakarta: Ministry of Forestry and Estate Crops in cooperation with Deutsche Gesellschaft für Technische Zusammenarbeit. (Indonesian version also available).

8. Why minimum diameter cutting alone cannot fit with RIL objectives - Plinio Sist*, Jean-Guy Bertault** and Nicolas Picard***

* Cirad-Forêt, Convênio Cirad-Forêt-EMBRAPA, EMBRAPA Amazonia Oriental, Travessa Dr. Eneas Pinheiro, Belem-PA 66095-100, Tel:(+55) (91) 299 45 93, Fax: 276 98 45, E-mail: [email protected]

** Cirad-Forêt, Campus international de Baillarguet, TA/10C, 34 398 Montpellier Cedex 5, France, E-mail: [email protected]

*** Cirad-Forêt, Cirad, BP 1813, Bamako, Mali, E-mail: [email protected]

INTRODUCTION

Since the late 1950s, due to increased use of heavy machinery for timber extraction, the impact of logging on tropical forests has attracted the attention of silviculturists and forest managers. The growing awareness of the need to protect forest ecosystem functions and to maintain biological diversity in production forests has promoted the introduction of reduced impact logging (RIL) in various regions and particularly in Southeast Asian countries (Pinard and Putz, 1996; Sist and Bertault, 1997). Since the mid-1990s, RIL guidelines were produced by forestry research organizations and forestry departments (Dykstra and Heinrich, 1996; Durrieu de Madron et al., 1998; Sist et al., 1998a; Elias, 1999; Vanuatu Department of Forests, 1997; Sabah Forestry Department, 1998). RIL is not only a tool to reduce damage to residual trees, soil disturbance and impacts on wildlife; it is also expected to maintain timber-yield capacity and biodiversity. More recently, modelling tools have led to growth and yield predictions in relation to logging intensity and logging damage (Ong and Kleine, 1995; Favrichon and Cheol, 1998; Favrichon et al., in Press; MacLeigh and Susanti, 2000).

The capacity of the forest to regenerate and maintain its ecological functions depends in the first place on the logging techniques, the logging intensity and the degree of damage. For this reason, logging is considered a most important silvicultural treatment. Because mixed dipterocarp forests exhibit high densities of timber trees, selective logging based on the minimum diameter cutting rule leads to high felling intensities from 10-20 trees/ha and high extracted volumes of 100- 150 m3/ha (Pinard and Putz, 1996; Sist and Bertault, 1997).

This paper shows that, under such high logging intensities, RIL objectives cannot be achieved, in terms of damage reduction, yield sustainability and biodiversity. The first part is a synthesis of the main research results related to the impact of logging on forest structure and dynamic processes in mixed dipterocarp forests. Specific examples from two RIL experiments carried out in East Kalimantan (Bertault and Kadir, 1998; Wollenberg and Sist, 1996; Sist et al., submitted; Chabbert and Priyadi, 2000) are provided. The second part proposes complementary silvicultural rules to better reach the RIL objectives. The main objective of this paper is to discuss the principles of complementary logging regulations according to the main ecological characteristics of commercial species (Table 1).

Table 1. Principles and constraints of additional logging rules based on ecological features and behaviours of commercial species

Ecological Principles Constraints/limitations features/behaviour Density Rare species Definition unclear Complex must not be felled Logging intensity must be density dependent Structure MDCL must be Poor knowledge of the minimum flexible diameter of adult trees and according to the regeneration dynamics type of structure Regeneration (dipterocarps) Minimum Definition of spacing not based on spacing between reliable experience nor data harvested trees Reluctance by loggers in areas with high density of timber to limit gap size < 600 m2 Trees with dbh > 120 cm should not be felled Breeding systems Minimum Poor knowledge of pollination and spacing distance seed dispersal distances between adult trees

MAIN RESULTS OF RESEARCH RELATED TO RIL

RIL efficiency in reducing damage to forest structure

Until now, studies on RIL have focused mainly on the impact of RIL on forest structure and soils in comparison with unplanned and uncontrolled logging, also called conventional logging (CL) (Sist, 2000). These studies have shown that RIL can reduce skidding damage drastically (Pinard et al., 2000; Sist et al., submitted). Skidding operations are the main cause of tree mortality during logging (Sist et al., 1998b). The proportion of trees destroyed during logging is reduced significantly in RIL by 40 to 50 percent in comparison with CL techniques (Pinard and Putz, 1996; Sist and Bertault, 1997; Elias, 1999; Chabbert and Priyadi, 2000; Sist et al., submitted). In Bulungan (Indonesia), for a similar extracted volume (53 m3/ha in CL and 61 m3/ha in RIL), skid trail length per timber volume extracted was twice as long in CL blocks as in the RIL compartment (17 301 m3 vs 9 090 m3) (Chabbert and Priyadi, 2000; Sist et al., submitted). Skidding damage on residual trees decreased from 25 percent of the original stand in CL to 9.5 percent in RIL.

In the Indonesian experiments, RIL clearly failed to reduce felling damage on the forest stand significantly (Sist et al., 1998b; Sist et al., submitted). Although vine cutting prior to logging is regarded as a promising technique to reduce felling damage, its effectiveness is still very controversial (Cedergen, 1996). At present, there are no available felling techniques to reduce overall felling damage in tropical forests. Directional felling, commonly applied in RIL, aims essentially to place the logs in position to facilitate ground-skidding extraction and, if possible, to limit damage to potential crop trees. However, this technique cannot reduce the overall damage on the stand, which mainly depends on the height of the tree, the size of its crown and topography (Cedergen, 1996).

In the two experiments in Indonesia (Berau and Bulungan), the proportion of trees destroyed and damaged in RIL plots under the high felling intensity (n >8 trees/ha in Berau, n >9 trees/ha in Bulungan) was similar to that recorded in CL; in both techniques, this affected about 50 percent of the original stand (Sist et al., 1998b; Sist et al., submitted).

Impact of logging techniques and intensity on forest dynamics

Minimizing the effect of logging damage is insufficient to achieve sustainable forest management. It is equally important to define logging intensities compatible with forest-yield and regeneration capabilities. The main impacts of logging techniques and intensity on the processes of forest dynamics are reviewed.

In Southeast Asia, and particularly in Indonesia, studies based on reliable growth and yield data and on how logging damage intensity affects forest dynamics processes, are still limited (Manokaran and Kochumen, 1987; Ong and Kleine, 1995). In Berau, forest dynamics processes were monitored over a six-year period including a period of four years after logging in 12 4-ha plots (200 m x 200 m), each divided into four 1-ha squares or subplots. To assess the effect of logging damage intensity on forest dynamics processes, regarding the logging techniques, the 48 resulting subplots were divided into 4 groups according to the proportion of remaining basal area (BA) (Table 2).

Table 2. Main structural characteristics of STREK[5] subplots before and after logging according to three main groups of logging damage intensity and control plots (G1 = remaining BA ³ 80 % of the original one, G2 = remaining BA 70- 80 %, G3 = remaining BA < 70 %, G0 = control plots, no damage) G1 G2 G3 G0 Low damage Moderate damage High damage Control Total number of subplots 11 14 11 11 Mean felling intensity 5.8 ± 2.2 8.3 ± 3.3 13.9 ± 3.0 - (harvested trees/ha) Mean % of damaged trees 15.3 ± 5.6 21.5 ± 6.0 25.4 ± 5.5 - Mean % of trees destroyed 14.8 ± 4.6 22.0 ± 4.9 33.0 ± 6.7 - Mean % of BA remaining 86.2 ± 4.6 75.4 ± 19.7 58.6 ± 7.7 - after logging Mean density before 557.7 ± 71.9 540.2 ± 80.3 481.9 ± 55.6 527.9 ± 56.9 logging (1990) Mean BA before logging 32.8 ± 4.9 31.8 ± 5.5 29.5 ± 1.7 30.7 ± 3.1 (1990) Mean density of 139 ± 43.0 113.1 ± 35.1 104.5 + 28.1 109.3 ± 23.0 dipterocarps before logging Mean BA of dipterocarps 15.5 ± 3.6 14.8 ± 3.6 15.7 + 3.1 14.5 ± 2.9 before logging Mean density after logging 486.4 ± 80.3 429.4 ± 65.4 331.0 + 64.2 524.1 ± 54.7 Mean BA after logging 28.3 ± 4.9 23.9 ± 3.6 17.3 ± 2.7 30.7 ± 3.2 Mean density of 117.9 ± 34.9 85.8 + 26.1 63.6 + 20.8 108.1 + 23.0 dipterocarps after logging Mean BA of dipterocarps 12.4 ± 3.3 9.3 + 2.2 6.4 + 2.3 14.5 + 3.1 after logging

Based on a six-year monitoring period (1990-1996), we built a matrix model to assess the impact of logging on long-term forest dynamics processes. The model was used to estimate the return time on each subplot applying the mean logging intensity and damage characteristics of each group of damage (G1, G2 and G3, Table 2). Return time was defined as the time required after logging to reach 90 percent of the steady-state density of harvestable dipterocarps (dbh[6] > 60cm). We used the steady-state density rather than the initial density because the time required to reach the initial state was generally too long. A very small variation in the initial density drastically increased the return time sensu stricto. The model also allowed us to assess the rotation length in each damage group.

Mean return times in G1 (low damage), G2 (moderate damage) and G3 (high damage) are respectively 66, 96 and 106 years and statistically different (ANOVA[7], F = 3.75, df = 2, P = 0.03). Hence, there is a strong impact of logging damage intensity on forest dynamics: the higher the damage the longer the time of forest recovery.

After logging, density of pioneers increases proportionally with the amount of damage; the most damaged stands show the highest density of pioneers (Figure 1). In the three groups, pioneers reach their highest density 20 years after logging and their maximum BA at 30 years (Figure 2). These results suggest that 30 years after logging, pioneers enter a phase of senescence to reach their original density recorded before logging at about 80 to 100 years after logging (Figures 1 and 2).

Figure 1. Simulation of pioneer density dynamics in the three groups of logging damage in Berau (G1: diamonds, squares, G3: triangles)

Figure 2. Simulation of pioneer BA dynamics in the three groups of logging damage in Berau (G1: diamonds, G2: squares, G3: triangles)

In the three groups, dipterocarps reach their maximum density at t = 50 years (Figure 3). The mean densities in the groups at t = 50 years were similar (G1= 122/ha, G2 = 124/ha, G3 = 128/ha) but statistically different (ANOVA, F = 15.7, df 2 = 35, P <0.01). However, at t = 50 years, G1 shows the highest BA (13.9 m /ha, 2 94.5 percent of the original BA) followed by G2 (12.7 m /ha, 86.4 percent of the 2 original BA) and G3 (11.7 m /ha, 79.6 percent of the original BA; ANOVA, F = 16.04, df = 35, P <0.01, Figure 4). The time required for dipterocarps to reach 90 percent of their original BA varies significantly among the groups (ANOVA, F = 7.58, df = 35, P <0.001) from 45 years in G1 to 65 in G2 and 85 in G3 (Figure 4).

We simulated six felling cycles under constant time t and constant extracted number of trees and applied several rotation lengths varying from 20 to 100 years with the following intermediary values: 24, 28, 32, 36, 40, 50, 60, 70, 80 and 90 years. The extracted number of trees was the mean number of felled trees in the three groups of damage: 6 stems/ha for G1, 8 trees/ha for G2 and 14 trees/ha for 3 3 3 G3. The extracted volumes (G1 = 44 m /ha, G2 = 78.5 m /ha, G3 = 130 m /ha) were calculated based on the average volume of dipterocarps in each dbh class tabulated in Favrichon and Cheol (1998). In G1, G2 and G3, the shortest sustainable rotations were respectively 23, 41 and 92 years, and significantly different (one-sided Wilcoxon significant at the 5 percent level). These rotation cycles give mean harvesting volumes of 2.4 m3/ha/yr, 2.0 m3/ha/yr and 1.4 3 m /ha/yr respectively in G1, G2 and G3.

Figure 3. Simulation of dipterocarp density dynamics in the three groups of logging damage in Berau (G1: diamonds, G2: squares, G3: triangles)

Figure 4. Simulation of dipterocarp BA in the three groups of damage in Berau (G1: diamonds, G2: squares, G3: triangles)

DEFINITION OF COMPLEMENTARY RULES FOR SELECTIVE LOGGING

Under high-felling intensity, RIL techniques do not reduce damage on forest stands effectively. The long-term consequence of high-damage rates is an increase of the rotation cycle (>80 years). Moreover, besides the yield consideration, RIL aims also to limit impacts on biodiversity (Putz et al., 2000). Considering the diversity of tree species only, considerable damage to forest structure and large felling gaps are likely to favour light-demanding and fast- growing species, whereas shade-tolerant species are more vulnerable to such severe disturbance (Oldeman and van Dijk, 1990). Therefore, heavy logging associated with high damage can modify forest-floristic composition substantially. Commercial species face drastic shifts in their density and structure. Their capability to adapt to altered environmental conditions created by logging and to maintain populations in the ecosystem after logging will depend mainly on the following features: original population density, population structure, regeneration dynamics and breeding systems. If complementary rules to the MDCL must be found to fit with RIL objectives, they should be defined according to these main features.

Population density

Dipterocarp forests and rain forests in general, are characterized by high species diversity. Usually, tree species are represented by only a few individuals. Dipterocarps can show a wide range of density from 0.05 adult trees/ha for rare species (e.g. Shorea ochracea in Berau) to two adult trees/ha (dbh > 50 cm) for the most common species (e.g. Dipterocarpus acutangulus and Shorea parvifolia in Berau; Nguyen-Thé and Sist 1998; Sist and Saridan, 1999). In tropical forests, even the most common species exhibit low densities. In Berau, in a 12-ha inventory of primary forest, Elateriospermum tapos, with only 16 trees/ha (dbh >10cm), representing only 3 percent of the total stem density, was the most common species (Sist and Saridan, 1999). The definition or concept of rare species is, therefore, very difficult and often associated with the concept of endangered species. In their tentative definition of ecological criteria of vulnerability to population declines after logging, Pinard et al. (1999) considered rare species to be those with less than one adult (dbh > 20 cm)/ha. In a RIL project in the Brazilian Amazon, the CIKEL company defined rare species (and therefore protected from logging) as those with less than seven adult trees in a 100-ha block. Similarly, in Cameroon, species with less than five stems (dbh >20 cm) in a 100-ha block are not harvested (Eric Forni Pers. Comm.). Because of the variability of species density among regions and even within the same concession area, it is difficult to formulate specific rules to regulate felling intensity for each timber species. However, it is critical to recognize that RIL guidelines should include specific and practical recommendations regarding these species. It is important to address the issue of rare species in RIL guidelines and define rules according to the data provided by forest inventories. Moreover, density is clearly not the single criterion to consider as population structure and regeneration dynamics are other important features for species maintenance.

Population structure

The impact of logging on the ecology and maintenance of a given species is linked to the original structure of the species. In tropical mixed dipterocarp forests, three main types of population structure can be recognized (Rollet, 1974, Figure 5). Dipterocarps mainly show the structure of type I (Appanah and Weinland, 1993). For this type, and in the case of dipterocarps, the MDCL can be generally applied, as the growth of potential crop trees will be favoured by the removal of adult trees. In type II (e.g. Agathis borneensis in Bulungan), adult trees are the main component of the population and juveniles are only few. Thus, logging intensities based on the MDCL will reduce the adult population density radically with dramatic consequences on reproductive ecology and regeneration success. Populations with type II structure are likely to be light-demanding trees, whose seeds are unable to germinate under low-light conditions. However, following logging, seeds dispersed in gaps will find favourable conditions to germinate and saplings will have optimal light intensities to develop and grow. For these species, regeneration success after logging will depend mainly on the maintenance of their breeding and dispersal systems. For this type of structure, it is suggested to increase the minimum diameter limit to leave sufficient numbers of adults able to ensure reproduction. In the case of Agathis borneensis, in Bulungan, fixing the MDCL to 80 cm will represent a mean of 3 trees/ha vs 5 trees/ha for an MDCL of 60 cm.

Type III is rare in mixed dipterocarp forests. In this type, applying the MDCL will result in a very low extraction density of this species, whereas the overall population density is relatively stable. It is likely that in these populations, trees reach their sexual maturity at a dbh lower than the fixed MDCL. For such populations, it should be possible to decrease the MDCL to about 45 cm (Figure 5).

Figure 5. The three main types of tree population structure in mixed dipterocarp forest (type I = dipterocarps; type II = Agathis borneensis; type III = rare mixed dipterocarp forest; arrows show the suggested MDCL for each structure)

Regeneration dynamics

Although dipterocarps are climax species (Swaine and Whitmore, 1988), growth of seedlings and saplings is stimulated by canopy openings (Ashton, 1998). However, even the most early light-demanding dipterocarps reach a maximum growth rate under moderate light intensity, which occurs in rather small gaps, while pioneers require a much larger canopy opening to germinate and grow (Clearwater et al. 1999; Sist and Nguyen-Thé submitted). Based on these observations, several authors have recommended that gaps created by logging should be limited to 500-650 m2 to favour advanced regeneration growth for dipterocarps and to limit pioneer invasion (Kuusipalo et al., 1996; Tuomela et al., 1996; van Gardingen et al., 1998). However, gap size resulting from logging is determined mainly by the density and the spatial distribution of felled trees. In mixed dipterocarp forests, and in tropical forests in general, many commercial timber trees exhibit a cluster distribution pattern. Hence, felling in patches with a high-timber density, while applying the MDCL, will lead to excessively large gaps. The complementary rule that we suggest is to define minimum spacing between harvested trees and to apply directional felling in such a way that trees are felled in different directions to create small and single gaps. The minimum spacing distance has not been studied in tropical forests. This rule has been applied recently in Central Africa with a minimum spacing between harvested trees of 30 m (Durrieu de Madron et al., 1999). The main objective was to reduce the number of large gaps created by the felling of several trees in a small area. The efficiency of this rule to reduce the number of large gaps has not been demonstrated clearly and more experiments are needed, particularly in the context of mixed dipterocarp forests. The felling of big trees (dbh >120 cm) usually with extensive crowns, causes significant damage to the residual stand and creates rather large gaps. It is suggested to retain these trees as seed bearers to avoid excessive damage.

Breeding systems and genetic diversity

Selective logging removes only the biggest adult trees of commercial interest, which are especially important for ensuring the reproduction of the species. For many tropical tree species, including dipterocarps, outcrossing is the usual mode of reproduction. However, the self-incompatibility systems developed by a wide range of dipterocarps are relatively weak (Bawa, 1998). Although dipterocarp flowers are visited by a wide range of insects, thrips and bees are recognized as the main pollinators of dipterocarp flowers (Ashton, 1982; Appanah, 1990; Bawa, 1998). After logging, distances between adult trees may be increased to the extent that the inter-tree movement of pollinators is reduced considerably and pollen dispersal becomes inefficient. Because of the weakness of the self- incompatibility systems of dipterocarps, logging favours inbreeding. This can have important consequences on the reproduction and the population’s genetic structure. Fruits set in self-pollinated flowers suffer from higher abortion rates than fruits from cross-pollinated flowers (Bawa, 1998) and increased inbreeding after logging leads to a reduction of the genetic diversity within a population, whereas genetic differentiation among populations increases. To keep breeding systems unchanged after logging, the most suitable rule would be to define, for each species, a minimum spacing between adult trees that should not exceed the mean pollination and seed-dispersal distances. Unfortunately, our knowledge of the breeding systems of dipterocarps is still very limited (Bawa, 1998). Because seed dispersal is another important factor of gene flux, information on seed- dispersal distances is also important.

CONCLUSIONS

The main objective of this paper was to discuss the principles of complementary logging regulations according to the main ecological characteristics of commercial species. Practical and detailed rules could not be defined because these must be based on data from pre-harvest inventories, which, so far, have been used mainly in RIL for skid-trail planning and delineation of protection areas. However, stand inventories that generally include all commercial species from at least 40 cm dbh or below (Sist et al., 1998), provide valuable information about density, structure and the spatial distribution of commercial species. Geographic information systems offer an opportunity to analyse spatial distribution of species according to different factors (soil, topography canopy disturbance). This area of research should be developed in the future to assist foresters in defining more sophisticated logging rules than the MDCL. More fundamental research on regeneration dynamics and breeding systems is needed to improve logging practices. Minimum-spacing rules are still very difficult to apply because our knowledge of the mean-pollination and seed-dispersal distance is limited. Regeneration dynamics of commercial species provide valuable and practical information as several studies have demonstrated (Kuusipalo et al., 1996; Tuomela et al., 1996; van Gardingen et al., 1998; Clearwater et al., 1999). This area of research must be encouraged in the future.

The additional logging rules proposed here are based primarily on the ecology of commercial species. However, the impacts of logging on wildlife are also potentially important in defining rules to improve logging practices.

ACKNOWLEDGEMENTS

This paper was inspired by two research projects in East Kalimantan - the STREK project (1989-1996), which was a cooperative research and development initiative involving Cirad-Forêt and the Forest Research and Development Agency (FORDA) of the Ministry of Forestry of Indonesia; and the Forest, Science and Sustainability: Bulungan Model Forest Project funded by the International Tropical Timber Organization (ITTO) and implemented by the Center for International Forestry Research (CIFOR) and FORDA.

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Pinard, M.A., Putz, F.E., Rumìz, D., Guzmàn, R. & Jardim, A. 1999. Ecological characterization of tree species for guiding forest management decisions in seasonally dry forests in Lomerio, Bolivia. Forest Ecology and Management, 113: 201-213.

Pinard, M.A., Barker, M.G. & Tay, J. 2000. Soil disturbance and post-logging forest recovery on bulldozer paths in Sabah, Malaysia. Forest Ecology and Management, 130: 213-225.

Putz, F.E., Redford, K.H., Robinson, J.G., Fimbel, R. & Blate, G.M. 2000. Biodiversity conservation in the context of tropical forest management. Environment Department Papers, Paper No. 75. Washington, The World Bank.

Rollet, B. 1974. L’architecture des forêts denses humides sempervirentes de plaine. CTFT, Nogent sur Marne, pp: 298.

Sabah Forestry Department. 1998. RIL operation guide book. Sabah Forestry Department, Sandakan, Malaysia.

Sist, P. & Bertault, J.-G. 1997. The STREK project, Indonesia. FAO Forest Harvesting Bulletin, 7(1): 4.

Sist, P., Dykstra, D.P. & Fimbel, R. 1998a. Reduced-Impact Logging Guidelines for Lowland and Hill Dipterocarp Forests in Indonesia. Bulungan Research Report Series No. 1. Bogor, Center for International Forestry Research.

Sist, P., Nolan, T., Bertault, J.-G. & Dykstra, D.P. 1998b. Harvesting intensity versus sustainability in Indonesia. Forest Ecology and Management, 108: 251- 260.

Sist, P. & Saridan, A. 1999. Stand structure and floristic composition of a primary lowland dipterocarp forest in East Kalimantan. Journal of Tropical Forest Science, 11(4): 704-722.

Sist, P. 2000. Reduced-impact logging in the tropics: objectives, principles and impacts. International Forestry Review, 2: 3-10.

Sist, P. & Nguyen-Thé, N. Submitted. Impact of logging damage on the dynamics of lowland mixed dipterocarp forest in East Kalimantan (1990-1996), Forest Ecology and Management.

Sist, P., Kartawinata, K. & Priyadi. H. Submitted. Comparison of logging impacts with conventional and reduced impact logging techniques in a mixed dipterocarp forest of north-east Borneo. Canadian Journal of Forestry Research.

Swaine, M.D. & Whitmore, T.C. 1988. On the definition of ecological species groups in tropical rain forests. Vegetatio, 75: 81-86.

Tuomela, K., Kuusipalo, J., Vesa, L., Nuryanto, K., Sagal, A.P.S. & Adjers, G. 1996. Growth of dipterocarp seedlings in artificial gaps: an experiment in a logged- over rainforest in South Kalimantan, Indonesia. Forest Ecology and Management, 81: 95-100.

Van Gardingen P.R., Clearwater, M.J., Nifinluri, T., Effendi, R., Ruswantoro, P.A., Ingleby, K. & Munro, R.C. 1998. Impacts of logging on the regeneration of lowland dipterocarps forest in Indonesia. Commonwealth Forestry Review, (77): 71-82.

Vanuatu Department of Forests. 1997. Vanuatu reduced impact logging guidelines. Vanuatu Department of Forests, Port Vila.

Wollenberg, E. & Sist, P. 1996. The Bulungan research forest. 1996 Annual Report. Bogor, Center for International Forestry Research. pp. 10-11. [5] STREK is the acronym for Silvicultural Techniques for the Regeneration of logged- over forests in East Kalimantan. [6] dbh = diameter at breast height. [7] ANOVA = Analysis of variation

9. Recent advances in training strategy development in support of RIL implementation - Napoleon T. Vergara*

* Green Tropics International, National Highway, Timugan, Los Baños Laguna 4030, Philippines, Tel: ++(63 49) 5361249, E-mail: [email protected]

INTRODUCTION

For a long time, Asia-Pacific countries have been engaged in logging, and have in recent decades emerged as the world’s largest producers of tropical hardwoods. However, in a rising number of countries, ecological stability and the continuity of forest-derived benefits have become doubtful, indicating that timber-extraction techniques have been too exploitative. To counteract this trend, the Asia-Pacific Forestry Commission (APFC) has been trying to motivate its member countries to adopt and apply reduced impact logging (RIL) techniques as a means to achieve sustainable forest management (SFM).

A necessary condition for implementing RIL is that personnel have the qualifications to perform their tasks and responsibilities effectively and efficiently. These qualifications have to be acquired and developed through training and capacity building. First and foremost, personnel need to know and understand the nature and scope of the work to be done, why it has to be done and how best to do it. They need technical skills and manual dexterity. In combination, these skills enable them to carry out complex tasks efficiently. Thus, greater efficiency and higher productivity in timber extraction under RIL is achieved through training: the development of appropriate knowledge, favourable attitudes and suitable skills (KAS) enable a person to perform assigned duties and tasks with minimum effort (least cost) and maximum results (highest outputs).

This paper presents an approach to developing training strategies that could lead to more effective implementation of RIL. Many of the concepts and approaches presented here are drawn from Regional Training Strategy in Support of the Implementation of the Code of Practice for Forest Harvesting (APFC, 2000).[8]

THE NEED FOR A TRAINING STRATEGY

Training is easier to implement, more effective in capacity building, and simpler to monitor and evaluate if it is guided by a comprehensive strategy, i.e. a carefully-prepared plan for achieving goals and objectives. Without such a strategy, training efforts generally remain reactive, i.e. piecemeal and uncoordinated responses to emerging problems. For example, RIL training often concentrates on felling/bucking and yarding/skidding operations simply because their negative impacts on the residual stands and the forest ecosystem as a whole are highly visible, and readily measurable in physical and monetary terms. Unfortunately, this approach often fails to recognize that other key stakeholders, such as policy-makers, planners and supervisors also need to undergo training because their decisions have significant and long-term impacts on the productivity and sustainability of the forest resources.

A training program that is guided by strategic thinking is pro- active in nature. It adopts a comprehensive, systematic and long- term approach to that leads to a training strategy encompassing:

● The whole range of logging operations.

● Identification and prioritization of the various personnel groups who need to be trained (the target trainees).

● Identification of the KAS essential to perform the various harvesting operations (the subjects covered in training).

● Determination of the different approaches and delivery techniques to produce the required expertise for carrying out the tasks (training methods).

● Identification of agencies and groups that could collaborate in implementing the training strategy and programs.

● Formulation of ways and means for securing financial resources for the training programs.

Constraints and opportunities for RIL

A number of constraints inhibit the adoption of RIL. Two important ones are:

● Widespread belief in the industry that RIL interferes with efficient harvesting operations and raises costs.

● Lack of appreciation in the industry and the general public of the expected benefits from RIL that could ultimately lead to ecological stability and sustainable forest production.

However, the rapid decline and degradation of forest resources and the fast-rising demand for forest products and services have created excellent opportunities for drawing the attention of policy- makers, forest managers, forest users and the general public to the urgent need to apply RIL to help perpetuate economic, ecological and social benefits derived from the forest.

Knowledge gaps in RIL

At this stage of RIL development in the region, significant gaps in knowledge exist regarding:

● The nature and magnitude of the negative impacts of forest harvesting that could be minimized through the application of RIL.

● The efficacy of various RIL components in reducing ecological and socio-economic damage.

● The comparative benefits and costs of RIL, especially from the perspective of the private sector.

Research needs in support of RIL application

The knowledge gaps indicate the need to undertake research, to generate both qualitative and quantitative information on the ecological and socio-economic benefits of RIL, the comparative costs of ‘with’ and ‘without’ RIL in forest harvesting, and the long- term effects of RIL on forest sustainability. The research outputs would be of critical value for formulating appropriate policies and for developing RIL techniques. They would likewise be useful reference materials for RIL training courses.

DEVELOPING A RIL TRAINING STRATEGY

There is nothing new in developing a generic training strategy. It simply involves the setting of goals and objectives; identifying target trainees; determining training needs; and formulating training courses that address those needs.

What may be unique to developing a RIL training strategy are the following considerations: (a) enlisting the participation of a much broader group of collaborators (e.g. government, industry, the general public, NGOs and academia); (b) focusing on a wider group of target trainees beyond just harvesting operators (i.e. top policy-makers, middle management, frontline supervisors, opinion-makers, and advocacy groups); (c) recognizing that RIL training is not just manual skills development but includes imparting of new knowledge and creation of favourable attitudes as well; (d) promoting the integration of RIL principles and techniques in formal forestry courses in academic institutions.

Goal and objectives of a training strategy

The broad goal of a RIL training strategy is to strengthen the capacity of appropriate persons, groups and agencies to formulate and implement RIL programs for forest management.

The objectives to achieve the above goal are to:

● identify and prioritize the target trainee groups (TTGs); ● improve the capability to design, organize and conduct training courses;

● assist in developing and organizing of in-country training courses for priority TTGs;

● promote the sharing of capacity-building experiences and training resources among countries to improve the efficacy and cost-effectiveness of training; and

● encourage the integration of RIL techniques in forest- harvesting and silviculture courses offered by forestry schools in the Asia-Pacific region.

The scope of the training strategy

A RIL training strategy for APFC member countries will have to be at two levels: regional and national.

The regional training strategy would involve the execution of three important tactics:

● Training of national RIL trainers. ● Development and organization of RIL training courses for priority TTGs. ● Integration of RIL principles and techniques in formal silviculture and forest-harvesting courses in forestry education institutions.

Adoption of the above tactics necessitates the following activities:

For the regional or sub-regional level

● Organization, with the assistance of APFC, FAO and other international donors and NGOs, of regional or sub-regional trainers’ training courses that will develop a corps of competent national RIL trainers.

For the national level ● Organization of national workshops, with the involvement of industry, local government and local NGOs to identify and prioritize the TTGs.

● Assessment of the RIL training needs.

● Design, development and formulation of RIL training courses specific to each TTG.

● Implementation of in-country RIL training courses for each TTG.

● Promotion of the integration of RIL principles and techniques in silviculture and forest-harvesting courses in forestry colleges in the Asia-Pacific region.

Identification of TTGs

In each country, three principal groups are targeted for training:

(a) National trainers - personnel drawn from government or private sector associations to be trained at the regional or sub-regional level, and whose main tasks are to help develop and execute national programs for training TTGs who will become in-country RIL implementers.

(b) In-country RIL implementers - government and private sector personnel of various ranks and responsibilities who will be trained in-country by the national trainers and who will help plan and execute RIL programs in their countries:

● Senior management - top government or corporate executives who set up their organization’s vision and formulate policies that guide forestry operations.

● Middle management - mid-level officers who translate broad corporate policies into logging work and budget plans and programs using RIL techniques.

● Frontline supervisors - lower level officers, who directly interact with field operators and ensure that the RIL-guided logging plans are carried out.

● Field workers/operators - field-level workers directly responsible for timber harvesting using RIL techniques.

● Opinion-makers - information analysts who disseminate expert views through mass media to shape public opinion.

● Journalists - skilled writers and reporters, who collect, process and disseminate information through the media that helps create public awareness concerning important issues.

● NGOs - organizations that play strong advocacy roles to help promote public awareness of the importance of RIL for sustainable development.

TRAINING NEEDS ASSESSMENT (TNA)

Each RIL training program should aim directly at filling the training needs of each TTG. Initially it is necessary to determine the required degree of KAS to make the TTG an efficient and effective RIL implementer at his/her level of responsibility. In short, the training needs should be ascertained first.

A four-step generic approach to determining the training needs of each TTG is outlined below:

● Ascertain the nature and scope of RIL-related tasks and the duties of each TTG.

● Determine the type and level of KAS required. ● Ascertain the current or actual level of KAS for RIL possessed by the personnel.

● Determine the capacity gap by comparing the current with the required KAS. The capacity gap has to be filled through training.

The nature of RIL training needs

Most candidates for RIL training are employed by logging firms and forest departments and have had significant experience in timber extraction. Thus, training does not have to include basic forest harvesting aspects. Instead it needs to focus on new skills to enable personnel to carry out their old tasks in new ways that minimize damage to the forest ecosystem while maintaining output levels and keeping costs down.

For example, experienced felling crews no longer need to be trained in directional felling. Rather they should be taught to apply their directional felling capabilities to minimize damage to the residual forests, to reduce breakage of the harvested logs, and to facilitate yarding or skidding - in short, to lessen the negative economic and ecological impacts of forest harvesting.

ACTIONS TO MEET THE OBJECTIVES OF THE TRAINING STRATEGY

Examples of the important actions needed to meet the objectives of the training strategy, and to produce the expected outcomes, are shown in Table 1:

Table 1. Objectives, actions and outcomes of the training strategy

Objective Action needed Expected outputs To identify and Organization of · List of RIL TTGs. prioritize the TTGs national workshops to · Short list of priority that should be trained identify and prioritize TTGs that should be implement RIL. TTGs. trained. · List of country institutions or organizations with personnel qualified to train priority TTGs. · List of potential sources of funds for the training courses. · List of major topics to be included in training the RIL TTGs. · Potential venues for training. To improve the Organization of a RIL National RIL trainers capability to design course for national with enhanced skills in: and organize courses trainers to be · conducting TNAs that will help improve conducted at the · designing, organizing the implementation of regional or sub- and coordinating short RIL. regional level. · courses in RIL · methods of teaching · preparing teaching aids · teaching short RIL courses To develop and 1. Assessment by RIL · Lists of topics to be organize in-country national trainers of the included in the RIL RIL training courses training needs of the training courses for for priority TTGs. TTGs. each priority TTG. 2. Development by · Course plans for national trainers of each priority TTG. training courses for each priority TTG. 3. Implementation of TTGs with improved RIL in-country training skills in RIL courses. implementation. To promote the Establishment of a Regional collections of sharing of training regional training unit training materials experiences and under the APFC to compiled in resources among serve as repository of computerized countries to improve and distribution centre databases that can be the efficacy and cost- for RIL-related training disseminated through effectiveness of the in- materials developed the Internet for use in country RIL courses. by in-country trainers. RIL training in-country. To promote the use of Holding of meetings Increased use of RIL RIL materials as with concerned references as training instructional university officials to materials for relevant references in distribute copies of courses in universities universities and RIL reference and colleges. colleges that offer materials and to formal or informal discuss their possible courses in silviculture use as training and forest harvesting. materials.

IMPLEMENTATION OF THE TRAINING STRATEGY

Coordinating and implementing mechanisms for RIL training

The training strategy aims to provide coordinated training for three major TTGs: (a) the national RIL trainers, (b) the in-country RIL implementers and (c) representatives of the media and NGOs. This calls for the organization of training activities at two levels: (a) regional and (b) national.

The regional strategy aims to put representatives from the different countries through trainers’ training courses. The outputs will be national trainers responsible for helping to design, organize and carry out in-country RIL training courses.

The national training strategy is geared to employ the national trainers to produce in-country RIL implementers and to create favourable public awareness in support of RIL.

Considering the close linkages between the activities and outputs of the two levels of training, it is necessary to set up coordinating and implementing mechanisms: (a) a small Regional RIL Training Coordinating Unit to coordinate efforts and help approach prospective donors, training experts and NGOs to assist with carrying out trainers’ training courses at the regional level; and (b) a National RIL Training Coordinating Unit to stimulate and coordinate the efforts of industry, local government, and NGOs for planning and executing in-country RIL training.

Development and organization of regional trainers’ training

The Regional RIL Training Coordinating Unit, which could be established strategically at the APFC, will have the following functions:

● Spearhead the development and organization of regional training courses for national RIL trainers.

● Enlist the assistance of donor agencies, training-oriented NGOs and industry organizations in the execution of the regional training activities.

● Compile, store and disseminate information on RIL courses to facilitate the sharing of training experiences and resources among countries.

● Coordinate with national RIL training coordinating units on course designs, availability of training resources and other relevant matters.

It would be desirable and cost effective to conduct the training in three separate sub-regions involving different countries (see Table 2).

Table 2. Country allocation for training in three APFC sub- regions

Sub-region I Sub-region II Sub-region III Bangladesh Cambodia Australia* Bhutan Indonesia Fiji China Lao PDR New Zealand* India Malaysia* Papua New Guinea Japan* Myanmar Samoa Maldives Philippines Solomon Islands Mongolia Thailand Vanuatu Nepal Vietnam Pakistan Republic of Korea* Sri Lanka

* Countries believed to have sufficient RIL implementation capacity already.

Regional course evaluation

At the end of each regional training course, participatory evaluation by the TTGs needs to be conducted to:

● determine whether the course contents are relevant and adequate to meet the objectives;

● assess the performance of the training specialists/course instructors;

● assess the quality and applicability of training materials used;

● assess the quality and timeliness of support provided by the host and other collaborating institutions; and

● assess the suitability of the trainees sent by the countries to take the course.

The results of the evaluation should be made available to the Regional RIL Training Coordinating Unit to be used to improve and upgrade future courses.

Development and organization of in-country training courses

In each country, a National RIL Training Coordinating Unit should be established. Depending on the country situation, the unit could be within the national forestry agency, or in an existing in- country training centre, or in a well-established training-oriented NGO. The unit is expected to collaborate closely with government and industry and take the lead in the following activities:

● identify and prioritize the TTGs;

● undertake TNA for the priority TTGs;

● design national RIL training courses for the priority TTGs based on the results of the TNA;

● secure funding for the training courses;

● identify qualified in-country trainers/resource persons and venues for the courses;

● provide guidelines for the preparation of visual aids and other training materials;

● conduct seminars on effective teaching/training methods for course teachers who have not participated in the regional trainers’ training courses;

● help organize and manage the training courses; and

● coordinate with the Regional RIL Training Coordinating Unit.

Identification and prioritization of in-country TTGs

TTGs who will become in-country RIL implementers in each country will be identified and prioritized during national workshops convened by the National RIL Training Coordination Unit, using the following criteria:

● Nature of involvement in forest harvesting - the more significant the TTG’s involvement in logging operations, the higher the priority for training.

● Consequences of not providing training to the TTG - what would be the magnitude of negative effects on the forest resource base if the TTG does not undergo RIL training?

● Advantages of providing training to the TTG - what would be the beneficial effects for the forest and society as a whole if the TTG is given appropriate training?

● Urgency of training the group - would training of the TTG speed up the recovery and sustainability of the residual forest?

● Availability of support funds - are domestic and external funds available for RIL training?

● Sufficiency and availability of qualified trainers in the country.

INTEGRATION OF RIL IN FORMAL FORESTRY COURSES

The integration of RIL in formal forest harvesting and silviculture courses offered by forestry schools and colleges in the Asia- Pacific region can be of major assistance in creating public awareness and appreciation of, and broadening the support for RIL adoption and application. Knowledge of RIL principles and techniques will be useful for forestry students in their future professional work.

The institutions that are logical targets for possible integration of RIL are:

● Professional-level institutions (e.g. universities) that offer degree programs at BA and higher degree levels.

● Sub-professional level colleges that offer diplomas and associate degrees in forestry programs.

● Technician-level schools that offer one-to-two year courses for forestry technicians.

● Training centres for skilled forest workers. One possible approach to promote the integration officially is to bring the matter up for consideration by the Asian Network for Forestry Education (ANFE) coordinated by the FAO Regional Office in Bangkok.

SHARING OF TRAINING RESOURCES

Sharing of training resources and experiences among countries could minimize the costly duplication of efforts significantly and reduce the budgetary requirements of in-country training. Examples of resources that can be shared are course designs, audio-visual aids (e.g. slides, transparencies, films, video clips, etc.), course handouts and training specialists.

To facilitate sharing, the Regional RIL Training Coordinating Unit can collect training materials developed by the different countries for compilation in a computerized database that will be accessible through the Internet.

FUNDING THE IMPLEMENTATION OF THE TRAINING STRATEGY

Even the best-planned training strategy will be ineffective if the countries concerned cannot implement it due to lack of financial resources. To ensure that the strategy can be realized it is necessary to consider funding.

Possible sources of funds for carrying out the strategy are:

● domestic funds of national governments and the private sector; ● grants from donor agencies (domestic and international); and ● loans from financial agencies (domestic or international).

Domestic funds are scarce, especially among the less developed countries in the region. External grants and loans are often allocated to projects that are perceived to have higher priority than training in RIL. Thus, funds for implementing the training strategy may only be available when ‘excess’ funds are re- allocated. This allocation could be facilitated by cultivating high- level policy makers, industry and the general public regarding the desirability and value of RIL training for sustainable forest management.

Donor agencies that have supported similar projects financially in the region include:

● Australian Agency for International Development (AusAID) ● Government of New Zealand ● Japanese International Cooperation Agency (JICA) ● International Timber Trade Organization (ITTO) ● United States Department of Agriculture - Forest Service (USDA/FS) ● United Nations Development Program (UNDP) ● Food and Agriculture Organization (FAO) ● World Bank ● European Union (EU)

Resource-poor countries could negotiate directly with donors for such aid, but it would be advantageous if an international/regional agency, such as FAO, served as a ‘broker’ to facilitate negotiations between donors and the countries concerned. One significant advantage of a broker is that it can negotiate simultaneously with a pool of donors to support a common activity, such as training, that is undertaken by several countries in separate but coordinated ways.

[8] APFC. 2000. Regional Strategy for Implementing the Code of Practice for Forest Harvesting in Asia-Pacific. Asia-Pacific Forestry Commission. Center for International Forestry Research, Bogor, Indonesia.

10. Improving forest harvesting practices through training and education - Ross Andrewartha*

* Harvesting Superintendent (Southern Region), Forestry Tasmania, Hobart, 79 Melville Street, Hobart, Tasmania 7000, Australia, Tel: ++(61 3) 6233 3282, Fax: ++(61 3) 6233 8252, E-mail: [email protected]

INTRODUCTION

Training and education of industry personnel are critical in any strategy to improve forest-harvesting practices. Tasmania has pioneered improvements in forest operations within the Australian forest industry, with the introduction of the Forest Practices Act in 1985, of which the Forest Practices Code (FPC) is an integral part. The code outlines minimal environmental standards that must be achieved for all forest operations, including guidelines to reduce the impact of logging.

The subsequent improvement in harvesting practices is a result of strong commitment to the code at all levels of government and industry and the professional dedication of forest practices officers (FPOs). FPOs are responsible for all operational planning and monitoring of forest operations to ensure compliance with the FPC.

The Vanuatu Code of Logging Practice (VCOLP) was introduced in 1998, using the existing Forestry Act as the basis for legislation (Vanuatu Department of Forests, 1997a). Full compliance with all operating standards was to be achieved by 31 December 2000. Complementary to the code, reduced impact logging (RIL) guidelines were formulated designed to assist field supervisory staff and industry operators in executing forest-harvesting plans (as required by the VCOLP). These guidelines specify tree selection and skid track alignment procedures, maximum skid track and landing dimensions and log extraction techniques (Vanuatu Department of Forests, 1997b).

BACKGROUND

Tasmania

Tasmania is the southernmost state of Australia with a landmass of 68 049 km2 (0.9 percent of the area of Australia) and has a population of 474 000.

The current land-classification status (under the joint Federal-State Regional Forest Agreement) is as follows:

● formal conservation reserves (36 percent); ● informal conservation reserves (3 percent); ● private land (9 percent); ● private forest (31 percent); ● multiple-use forest (managed by Forestry Tasmania) (17 percent); and ● other public land (4 percent).

Forestry in Tasmania is a major industry, with an average annual harvest volume of 4.5 million m3 from private and public forests, generating A$1.1 billion[9] in sales and employing over 7 000 people (Forestry Tasmania 1999). Forestry Tasmania, a government enterprise, manages 1.6 million ha of state forest, including 177 000 ha in reserves and 74 000 ha of hardwood and softwood plantations (Forestry Tasmania 2000).

Vanuatu

Vanuatu is part of Melanesia, which also includes Papua New Guinea, Solomon Islands, New Caledonia, Fiji, Tonga and Samoa. It extends over 850 km in length and comprises over 100 islands, although only 14 are over 100 km2 in size. The total land area is approximately 12 270 km2. The population, primarily rural-based, is about 181 000. Vanuatu’s forest industry is small in international terms, but nationally it is quite important. The major harvesting and processing activities are in Espiritu Santo (Vanuatu Department of Forests. 1997c). Numerous recent forestry initiatives include:

● a 1994 moratorium on round log exporting and introduction of a downstream processing policy;

● development of National Forest Policy (endorsed in 1998);

● revision of forestry-related legislation;

● development and implementation of the VCOLP;

● development of flexible silvicultural prescriptions; and

● introduction of RIL techniques.

TRAINING TRENDS

Concepts

Traditional training has tended to focus on the inputs, contents and time spent at training courses rather than on what course participants could do as a result of attending such courses.

Competency-based training (CBT) and competency-based assessment (CBA) are modern training procedures that recognize prior learning or practical experience, have objective predetermined assessment criteria and clearly specified training outcomes. Operator competence is defined as possessing the necessary skills, knowledge and attitude to complete a nominated task satisfactorily using predetermined assessment criteria (usually based on industry standards).

The advantages of CBT and CBA are that:

● training emphasizes the essential skills, knowledge and attitudes required to complete a specified task successfully;

● the trainee is required to demonstrate competence by completing a task to the required standard; and

● competence is formally recognized either internally within an organization or externally via an industry accreditation scheme.

A systematic approach to CBA involves the following steps: ● a detailed training needs analysis (either at an organizational, vocational or individual level);

● definition of detailed assessment criteria for each task;

● recruitment and training of instructors and assessors;

● development and delivery of training programs based on the identified training needs and assessment criteria; and

● formal assessment of operator competence and, if required, accreditation.

Examples of Australian forest industry operator competencies

Throughout the Australian forest industry, a wide range of core and elective units of competence for various industry vocations have been developed in a collaborative manner by industry employer organizations, union movements and training providers. Comprehensive assessment manuals, outlining the units of competency and performance criteria, have been developed to assist personnel in identifying the required standards of all tasks related to particular jobs. The following competencies are representative examples of typical industry vocations:

Field units of competency include:

● plan and conduct an operational-level forest inventory;

● prepare a forest-harvesting plan and demarcate coupe harvesting boundaries in accordance with the Forest Practices Code;

● determine appropriate harvesting prescriptions;

● consult with and coach harvesting contractors regarding harvesting prescriptions;

● inspect and monitor harvesting operations for compliance with utilization standards and the Forest Practices Code;

● conduct post-logging assessments to determine compliance with utilization standards; ● plan, locate and supervise road construction activities; and

● plan and supervise road maintenance programs.

Harvesting supervisor units of competency include

● assist with the preparation of forest-harvesting plans; ● mark coupe harvesting boundaries; ● locate and mark landing sites and primary skid tracks; ● monitor harvesting operations for compliance with utilization and harvesting plan conditions; ● segregate and mark forest products in accordance with industry specifications; ● monitor harvesting contractors and log classification officers’ performances; ● organize and conduct operational audits in accordance with organizational procedures; ● monitor post-harvesting restoration activities; and ● investigate alleged unauthorized cutting and removal of forest products.

Harvesting personnel ‘unit of competency’ include:

● cross-cut logs with a hand-held chainsaw;

● manually fell trees (basic and advanced levels);

● assess and segregate forest products in accordance with industry specifications;

● sort and stack logs;

● shift logs with skidding and lifting machinery;

● construct log landings and skid tracks in accordance with the relevant forest practices code; and

● load trucks in accordance with transport regulations.

Assessment and accreditation methods

A variety of methods exist in Australia for individual forest operators to achieve national recognition of their competence, regardless of how they acquired those particular skills. However, assessment of these skills must be in accordance with the agreed procedures and standards. “Statements of Attainment and Qualification” are issued by registered training organizations (RTOs) if a person successfully demonstrates competence in the particular “unit of competence”.

A “Workplace-based competence assessment” of a candidate is the most common assessment method. It is a process of gathering reliable, valid evidence, by an accredited workplace assessor to indicate the candidate’s competence against agreed predetermined criteria (Australian National Training Authority, 1999). Candidates are encouraged to self-assess before actually seeking a formal competence assessment, to measure their relative progress against the assessment criteria.

Another important aspect to competency-based training and assessment is the recognition of an operator’s pre-existing skills and knowledge, which negates the need for training for training’s sake. Known as “recognition of prior learning (RPL)” and “recognition of current competence (RCC)”, operators can apply to have their skills and knowledge formally recognized if they believe they can meet the requirements of a particular unit of competency. A candidate seeking accreditation, for example, may already be an experienced tree feller/chainsaw operator and seek a tree-feller’s licence (i.e. a form of accreditation). Such a person would only need to undergo an assessment and demonstrate competence, rather than attend a formal training course. If the person successfully demonstrates competence against the agreed criteria, that person is issued an appropriate operator’s licence.

If a person is unable to demonstrate competence (i.e. fails a particular job aspect during the assessment), the deficiency (known as the training gap) can be rectified by numerous methods, including attendance of formal training courses, job rotation, on-the-job training, provision of a mentor or completion of a self-paced learning program.

TRAINING STRATEGIES

When new standards or technologies are introduced, people may have different needs, responses and levels of commitment. Four broad target groups were identified in the recent Regional Strategy for Implementing the Code of Practice for Forest Harvesting in Asia- Pacific (APFC, 2000). The discussion below focuses on the training strategies adopted for the “supervisory” and “operator” target groups in Tasmania and Vanuatu.

Tasmania

Supervisory group

Tasmania has a two-tiered system for FPOs having delegated powers and responsibilities under the 1985 Forest Practices Act.

FPO planning level

This group is responsible for preparing and approving forest practices plans (FPPs). Any forest operation (road construction, harvesting and/or regeneration) on private or public land must operate under an approved FPP. These comprehensive plans provide detailed information on:

● forest types, volume and products; ● soil types and erodibility classes; ● watercourse classification by catchment size; ● archaeological and cultural values; ● fauna and flora values; ● roading standards; ● harvesting prescriptions and methods; and ● regeneration prescriptions (natural or artificial regeneration, plantation establishment, advanced regrowth retention etc.).

FPO inspecting level

This second group of FPOs is responsible for monitoring all forest operations to ensure compliance with the act and FPC, and the provisions and requirements of the particular FPP.

FPO training

Preparation and administration of FPPs require high levels of training and specialist support. This training and support is provided by the Forest Practices Board, an independent organization, funded by the forest industry and government. Other specialist instructors are drawn from industry or government departments (e.g. National Parks and Wildlife Service).

FPO training is based on modular, structured courses usually conducted annually. Courses cover scientific principles, practical application sessions, assignments, detailed session notes and extensive resource information manuals (including botany, archaeology, geomorphology, geology, and landscape values). Courses are complemented by quarterly newsletters, a website, and industry seminars.

Accreditation of FPOs

Industry organizations nominate personnel to attend FPO training programs. Each person seeking accreditation must meet defined criteria including demonstrated competence by:

● completing all training course assignments; ● passing an examination on the FPC; ● completing an FPP; and ● having a minimum number of years of industry experience.

If an applicant has successfully demonstrated his or her competence in accordance with the Forest Practices Board’s standards, a warrant is issued, making that person a delegated FPO (either with an FPO- Planning or FPO-Inspecting status) under the Forest Practices Act. To maintain the FPO planning status, the officer must approve a minimum of two plans per year.

The system has been successful to date, primarily due to the support of the Forest Practices Board and its staff and the professional approach adopted by the appointed FPOs. About 180 industry personnel are practising FPOs involved with 1 500 FPPs per year in total.

Forest operator group training

Education and training of this group is critical, as forest operators are responsible for the execution of approved FPPs and for ensuring compliance with the practical provisions of the FPC.

An industry-training provider (Hollybank Forest Education Centre Inc.) delivers structured, nationally accredited training programs and specific training courses (e.g. on machine operation). It integrates the relevant components of the FPC into its courses.

FPOs provide informal training and education, industry newsletters, regional inspections and field days for forest operators within their respective organizations.

Accreditation of forest operators

All Tasmanian forest operators must have nationally recognized accreditation in order to carry out specific tasks (e.g. machine operation, tree-felling, log segregation). The forest practices requirements, relevant to each job, are integrated into the various training programs and assessment criteria. Industry-accredited assessors are responsible for assessing operator competence and the Tasmanian Forest Industries Training Board manages the operator accreditation scheme.

Operational auditing

To ensure maintenance of the standards required by the act and code, FPB staff or independent consultants randomly audit approximately 15 percent of all approved FPPs. Results are published in the annual report, which is presented to the Tasmanian parliament. Most industry organizations conduct monthly operational audits to monitor compliance. In addition, the introduction of environmental management systems (e.g. ISO 14001) by major industry organizations requires all forest-harvesting operators to have a heightened level of training and awareness of environmental requirements to ensure system compliance.

Breaches of the Code must be reported to the Chief Forest Practices Officer and investigated. If deemed necessary, prescribed fines can be imposed or legal action undertaken by the Forest Practices Board. However, with the emphasis on corrective action rather than penalties, prosecution is generally a last resort due to the length of time between court hearings and the actual violation and the added expenses involved in legal proceedings. A system of warnings issued by FPOs (either written or verbal) to make good any code infringement has, to date, been a very effective mechanism, especially under environmental management systems such as ISO 14000. Such warnings specify the actions to be taken and the timeframe in which they must occur. Major code breaches or habitual offences can and will be prosecuted. On average, the Forest Practices Board successfully prosecutes three to four cases per year and imposes a range of fines (Wilkinson, 1999). Successful prosecutions in recent years primarily relate to harvesting timber without an approved FPP. Three cases resulted in fines being imposed by a magistrate ranging from A$ 3 000 to A$ 6 000 (Tasmanian Forest Practices Board, 1998).

Examples of recent fines include those assessed against a major forest owner and a cultivation contractor who were fined A$ 5 000 each for serious environmental damage resulting from failing to mark an adequate streamside reserve and attempting to conduct site preparation works when the soils were saturated. In another example, a contractor operating on private land received an A$ 2 000 fine for breaching the FPP by operating outside the harvesting boundary, harvesting inside a streamside reserve and skidding logs through a Class 3 stream. The Board considered in both instances the breaches to be serious, but recognized the cooperative attitudes and the remedial efforts to repair the damage when imposing the fines (Tasmanian Forest Practices Board, 2000).

Vanuatu

One aim of the recent bilateral Vanuatu Sustainable Forest Utilisation Project (VSFUP) was the preparation and implementation of a code of logging practice. Compliance with the VCOLP requires that all harvesting operations have an approved harvesting plan and are executed in accordance with that approved plan. Nominated industry supervisors are responsible for plan preparation and operational supervision.

Project background

Implemented in 1995, the project had numerous goals primarily aimed at improving forest management. Aspects of the VSFUP included extension activities aimed at achieving greater participation by landowners in forest management, institutional strengthening within the Department of Forests, introduction of new silvicultural prescriptions, and improvement of the industry skill base in the logging and processing sectors. In addition to the provision of computer hardware and vehicles, a wood-properties booklet was developed as a reference guide to assist in timber marketing, and a demonstration forest site on Efatewas successfully established. Joint initiatives between the Vanuatu Department of Forests and the VSFUP included the introduction of the VCOLP, review of the current silvicultural prescriptions, development of reduced impact logging guidelines and delivery of training programs. The three main training target groups were Department of Forests technical personnel, industry supervisors and operators, and landowners interested in forest activities.

Supervisory group training

Industry and Department of Forests staff attended various modular training programs in forest planning, supervision of harvesting operations and monitoring procedures. The training courses were designed and delivered by Department of Forests staff and members of the VSFUP funded by the Australian Agency for International Development (AusAID). The four modules were delivered over a 12- month period and coincided with the introduction of the VCOLP. Most courses lasted three to five days and covered the underlying principles and practical requirements of the VCOLP including forest- harvesting prescriptions, inventory techniques, aerial photograph interpretation, road location and construction, and tactical and operational planning procedures.

During the final module, participants, while working in small teams, had to prepare a 5-year strategic plan for a hypothetical forestry company interested in developing a sawmilling enterprise on a particular island. This task required participants to gather a wide range of information and data including inventory details, threatened species of fauna and flora, identification of archaeological sites and accessing computer databases. After assimilation of the relevant data and preparation of a detailed report, maps and tables, the strategic plan was presented formally to the Director of Forests for assessment and approval. This exercise represented the culmination and application of the wide range of skills and knowledge accumulated in the previous training modules and proved to be a very beneficial activity for the participants.

Training of forest operators

This group, primarily involved in road construction and maintenance, tree felling, log extraction and processing, is characterized by low levels of skill and literacy. There was extensive consultation with industry to determine the most appropriate training programs. Based on the consultation, a modular, progressive approach was adopted whereby operators participated in short, formal training programs, with an emphasis on practical application and the requirements of the VCOLP and RIL guidelines (e.g. directional felling, low-impact skid track construction techniques and conservation of streamside reserves). Course lengths varied from half-day to 2-day programs with in-field follow-up by nominated trainers or Department of Forests staff.

Twenty-one modules, which were either compulsory (e.g. water and soil protection) or vocationally-specific (e.g. restoration requirements) were identified for machine operators (Table 1). Most courses were structured around theoretical principles followed by practical application in the forest.

Training was provided and assessed by a dedicated training and assessment team using a consistent curriculum. Detailed training manuals based on the agreed curriculum, complete with session objectives, session notes and supporting visual or training aids were developed to assist in providing efficient and effective training. The training and assessment team, consisting of industry and departmental staff, participated in trainer-training programs and was involved in the design of the VCOLP implementation strategy. The 6- month industry program was reviewed regularly and refined by the training team, resulting in numerous improvements in course content, structure and methods of delivery.

Table 1. Modules and expected industry participants

Number Module Harvesting Roading Forest Tree Chainsaw supervisor machine machine feller operator operator operator 1 VCOLP X X X X X introduction 2 Basic X X X X X harvesting planning 3 Silvicultural X - X X X prescriptions 4 Exclusion X X X X X zones 5 Water X X X X X management 6 Watercourse X X X X X definitions 7 Coupe X X X X X harvesting planning 8 Field marking X X X X X procedures 9 Road X X O - - construction 10 Watercourse X X O - - crossings 11 Quarry X X - - - management 12 Log landing X - X O O operations 13 Skid track X - X O O construction 14 Directional X - O X X felling 15 RIL methods X - X X X 16 Truck loading X - X - - and hauling 17 Wet weather X X X X X limitations 18 Forest X X X X X hygiene 19 Post- X X X - - harvesting restoration 20 Supervision X - - - - responsibilities 21 Harvesting X X X X X safety

Accreditation

An operator accreditation scheme has been introduced to coincide with the introduction of the VCOLP and RIL guidelines. The scheme is managed by the Department of Forests and involves assessing basic operator competence, including knowledge of, and compliance with, the VCOLP. All major forest industry organizations are required to have accredited operators.

If an operator is assessed as competent (i.e. the person can complete the tasks to the required standards), an operator’s licence is issued, complete with laminated photograph, licence category and licence-issue conditions. Operators who are deemed to be “not yet competent” during the process of seeking accreditation, are required to undergo additional training in the areas identified as deficient or below the required standard and arrange re-assessment at a later date.

A penalty-points accumulation system for code breaches has been developed and operators can be fined or suspended depending on the penalty points accumulated for non-compliance or the severity of the actual breach. Examples of breaches include harvesting without an approved coupe plan and felling unmarked trees.

DEMONSTRATION FORESTS

Demonstration forests are a powerful medium to highlight the best methods, options and outcomes of sound forest practices (APFC, 2000). Such forests allow course participants to plan, carry out and audit forest harvesting. This practical learning-by-doing approach is fundamental in ensuring that the new skills and knowledge are transferred to actual work sites, thereby improving harvesting standards.

Numerous other benefits are provided by demonstration forests, including educating landowners, politicians and non-government groups, and improving scientific research.

CONCLUSIONS AND RECOMMENDATIONS

To improve forest-harvesting practices, a skilled and trained workforce is essential. Building such a workforce requires resources, support from all levels of management, dedicated forest supervisors, enthusiastic trainers and, above all, application of the required standards by all forest operators.

All of the above are linked intrinsically, vary in support provided from time to time and can be difficult to measure objectively. However, to achieve improved practices through training, the following recommendations are made:

● develop and implement national operator-accreditation schemes;

● develop industry operating standards and assessment criteria on a national or regional basis;

● design and deliver needs-driven training programs, using techniques based on competency assessment;

● set up and support training teams, responsible for delivery of competency-based programs using a consistent curriculum;

● regularly review training programs to assess outcomes and revise programs where appropriate; and

● establish and continue to develop regional, sub-regional and local demonstration forests.

GLOSSARY OF COMPETENCY-BASED TRAINING TERMS

Competence

Competency comprises the specification of the knowledge and skills, and the application of such knowledge and skill. A competent person is one who can do a particular task under operational conditions, to the standard specified, without supervision.

Site competence

The point in a person’s career where he or she has achieved all the competencies required for a reasonably effective employee.

Core competencies

These are the competencies that an organization would require most employees to achieve prior to site competence.

Key competencies

These are the particular competencies required for a defined vocation. Skills and knowledge

These are the building blocks of competency. To achieve competency, an employee needs certain skills and knowledge. Skills are both physical and analytical.

Off-the-job component

This is the formal theory training that will be delivered by various training providers.

On-the-job component

Trainees are placed in work units where they are expected to consolidate skills learnt during the theoretical sessions and to gain experience and maturity in dealing with the daily aspects of their particular job.

Competency standards

This is a detailed job analysis document. It is divided into duties/jobs (units of competence) and tasks/competencies (elements of competence). The components of each task, the standards expected and the assessment method to be used are specified in the Competency Standards document. It is designed to assist employees to prepare for assessment and to maintain standards on the job.

Assessment and evaluation

Assessment is designed to test competency. Assessment will be by formal competency-based assessment or in some cases by a checklist. Each assessment has specific criteria and standards that must be met. Only accredited Workplace Assessors should conduct assessments.

Coaching/mentoring

Coaching/mentoring is associated closely with formal training and is delivered by peers and workplace specialists. It is about helping others, providing pointers and direction and improving the value of performance. There is a distinct difference between training and coaching. Training

Training is the formal delivery of knowledge, and the opportunity to apply that knowledge and practice skills, in a controlled environment. Training should be delivered by accredited workplace trainers. During the training course, a candidate’s knowledge may be tested but such tests are not normally considered competency assessments.

REFERENCES

APFC. 2000. Regional strategy for implementing the Code of Practice for Forest Harvesting in Asia-Pacific. Bangkok, Asia-Pacific Forestry Commission, and Bogor, Center for International Forestry Research.

Australian National Training Authority. 1999. Forest and forest products training package: Assessment guidelines. Canberra.

Forestry Tasmania. 1999. 1998-99 Annual Report. Hobart, Forestry Tasmania.

Forestry Tasmania. 2000. 1999-2000 Annual Report. Hobart, Forestry Tasmania.

Tasmanian Forest Practice Board. 1998. Annual Report 1997-98. Hobart, Forest Practices Board.

Tasmanian Forest Practices Board. 2000. Annual Report 1999-2000. Hobart, Tasmanian Forest Practices Board.

Vanuatu Department of Forests. 1997a. Vanuatu Code of Logging Practice. Vila, Vanuatu Department of Forests.

Vanuatu Department of Forests. 1997b. Vanuatu reduced impact logging guidelines. Vila, Vanuatu Department of Forests.

Vanuatu Department of Forests. 1997c. Forest industry employment. Vila, Vanuatu Department of Forests.

Wilkinson, G. 1999. Implementing a code of forest practice - the Tasmanian experience. In: Bulai, S., H.T. Tang, K. Pouru, and B. Masianini. 2000. Proceedings of Regional Consultation on Implementation of Codes of Logging Practice and Directions for the Future. Field Document No. 3. Pacific Islands Forests and Trees Support Programme, Suva, Fiji. pp. 192-199.

[9] US$1.00= A$1.92 (May 2001).

11. Directional tree felling training program: an association’s approach - Peter C.S. Kho and Barney S.T. Chan*

* Sarawak Timber Association, Level 11, Wisma STA, Jalan Datuk Abang Abdul Rahim, Kuching 93450, Sarawak, Malaysia, Tel: ++(60 82) 33 2222, Fax: ++ (60 82) 48 7888, 48 7999, E-mail: [email protected] and [email protected]

INTRODUCTION

In the late 1980s and early 1990s, many concerned non- governmental organizations and western governments criticized Sarawak for alleged destruction of rainforests through uncontrolled logging practices. This attention encouraged the Sarawak State Government to re-examine forestry matters and policies, culminating in the Government inviting an independent mission, under the auspices of the International Tropical Timber Organization (ITTO), “to assess the sustainable utilisation and conservation of tropical forests and their genetic resources as well as maintenance of the ecological balance in Sarawak, Malaysia” (ITTO, 1990).

The mission made three recommendations, one of which was to strengthen the human resource aspect of the Sarawak Forest Department (SFD) comprehensively. As part of this strengthening process, training of staff from both the SFD and the timber companies was identified as being an important move towards sustainable forest management in Sarawak.

In June 1996, the Sarawak Timber Association (STA) collaborated with the SFD, to start a tree-felling training program to supplement existing training programs provided by the SFD and other government agencies. STA has been involved in the training of tree fellers for about 36 months and has so far trained 508 persons. The training concentrated mainly on occupational health and safety and directional felling. Typically, workers who have been targeted for training, have several years’ working experience in the field and are competent in the use of chainsaws. Techniques to reduce logging damage by using better and more refined methods were also explored. Most tree fellers work on contract, whereby their incomes are related directly to their production volumes.

In implementing the training program, STA faced a number of problems. Initially, like most training programs, there was resistance along the line of “we have been doing this for so many years, why should we go through with this training?” There were more problems: (i) the logging companies needed to be convinced of the benefits to be derived from the training of their employees; (ii) a suitable professional trainer was difficult to find - STA had to develop its own training curriculum and delivery; (iii) the potential trainees were spread thinly over a large geographical area of a very harsh environment and access to trainees was difficult, in many cases taking a whole day of travelling by airplane, express boat and four-wheel-drive vehicle; (iv) heavy rains and drought often made access to training sites challenging; (v) there were cultural problems involving the ethnic backgrounds and languages of trainees who had no formal education; and (vi) the program was expensive to run or offered no immediate tangible results.

This paper outlines the problems encountered, and then discusses the approaches towards solving them. First, the paper describes a typical round of the STA Tree Fellers Training Program. Second, it identifies and discusses five major problem areas. Finally, it reviews the success of this ongoing training event.

PROCEDURE IN ARRANGING A TRAINING COURSE

The entire process involved in organizing a typical training round must be understood in order to appreciate the problems and solutions faced by STA. The training program has been ongoing for about 36 months and it has settled into the following sequence:

1. Identification of a logging camp. The STA Secretariat, with assistance from the Engineering Section of the SFD, identifies a camp where the next training event is to be carried out. Initial contact with the company’s forest manager is then made and a tentative training schedule is agreed upon. This is important, as ground transport and other preparatory work have to be organized by the target camp. Usually about 20 to 30 tree fellers are identified for training each time.

2. Preparation by the logging camp. The camp management identifies the tree fellers to be trained (consequently, this determines the site for training). Their names and identity card numbers are then faxed to STA to verify that they have never been trained before. In order to keep time loss to a minimum during training, management is requested to identify/mark suitable trees for felling and to construct the skid trails in advance.

3. Support from the SFD. The Engineering Section of the SFD sends two officers on each training trip; one officer from the Regional Forest Office whose function is to oversee the training and help in language translation, and the other officer to be trained as a trainer. The support from the SFD is very important as it demonstrates the seriousness of the state authorities.

4. Transport logistics. This is purely administrative but very important, as it is difficult to move many people from different locations to the training sites in the forests efficiently. A fair amount of coordination is necessary, even to the extent of booking airline tickets and riverine transport. It must be stressed here that cooperation from the camp management is critical to coordinate both river and road transportation to the camp.

5. Initial briefing. Upon arrival at the target camp, STA’s professional trainer and the two officers of the SFD spend some time with camp management to explain the background of the training, the training schedule and the support that is required of them.

6. Training. Briefing is usually done at the log-landing site for two or three tree fellers at a time. First, an appraisal form is filled out for each trainee to gauge experience and skills. This information indicates the level of training required. Course objectives are then explained and expected results are stressed (e.g. personal safety, increased productivity from easier log extraction, maximum log volume and value recovery, minimal damage to standing trees). Demonstrating safe handling and maintenance of chainsaws, including wearing of safety apparel follows.

Actual hands-on training is done on a one-to-one basis. This is followed with a tree-felling demonstration, with each step fully explained by the trainer. Each trainee tries out the technique explaining the rationale of each step being made. This process is repeated until the trainee has demonstrated that the skills have been acquired (i.e. the trainee is competent in felling a tree). The trainee is then awarded a certificate of participation.

7. Debriefing. Before leaving the logging camp, the trainer spends some time with the trainees and management to review the training. This is to stress the importance of using the acquired skills. Another debriefing session is held at the STA office after the trainer’s return to Kuching and a training report is submitted. Details of the trained tree fellers are entered into a computerized database.

THE PROBLEMS STA faces a number of problems in conducting the training. Five major constraints are discussed here. STA has tried to solve these problems by providing answers that are very pertinent and relevant to the situation in Sarawak.

1. The trainer and the delivery method

The trainer is obviously critical to the success of any training program. Trainers familiar with tropical logging in general are few in number. Trainers qualified in directional felling in the tropics are more rare. It took STA about a year of searching, culminating in the identification of a suitable professional Maori trainer, who was seconded to STA by the New Zealand Forest Research Institute Limited.

The lack of properly qualified trainers in tropical logging is a real constraint to any training program. In many international fora and government-to-government meetings, there are calls and even funding for assorted training events, mostly in the name of sustainable forest management. However, there is no recognition of the fact that qualified trainers are scarce and there is a major need to produce more qualified trainers. STA has made a determined effort to train the tree fellers (who are directly in need of training) and not to train the trainers (as many overseas development agencies tend to do).

There is a need for more than technical competency of trainers. There are other important attributes that STA looks for, and most of these are cultural (and will be discussed later). The calibre of the trainer selected contributes considerably to the success of the STA training program.

The delivery of training beyond standard teaching methods can be a personal preference of trainers. In the STA training program, a few experiments were conducted to find the most effective delivery method to suit the trainees’ backgrounds. It was discovered that a ‘class’ or group of trainees’ approach is not suitable because of peer pressures to ‘refrain’ from adopting new techniques. In the case of Sarawak, almost all the tree fellers are very experienced. There are always one or two trainees who think they know more than others; these trainees will invariably make ‘smart’ remarks to distract the teaching and are basically uncooperative during the training. They have the feeling of “I’ve done this so many years now, what can you really teach me?” Changing the mindset of these tree fellers is difficult. Some think the new technique is slow and will lower their productivity.

Through trial and error, the most effective way of teaching was to limit the class size to not more than three while teaching the theory or background of new techniques. This was followed by a one-to-one practical session. Firstly, the trainer demonstrates what has been taught orally and then asks the trainee to fell a tree using the knowledge just acquired. At close contact, on a one-to-one basis, it is easier to correct errors and make improvements to the techniques taught. Indeed, almost all of the trainees had no problem in absorbing the training material within half a day.

Another important aspect is to acquaint the management, including supervisors and foremen, with the reasons for the training and the content of the training. This is usually done in a briefing session by the trainer the night before the actual training commences. Commitment by management is very effective in persuading the trainees of the necessity for training and continued use of the skills acquired.

2. Development of an appropriate training curriculum

There was no readily available ‘off-the-shelf’ curriculum that STA could use for training in Sarawak even though there is a long tradition of vocational training in temperate countries. The professional trainer employed by STA, working very closely together with member companies of STA and officers from the SFD, took three months to design an appropriate curriculum.

The targeted trainees were tree fellers who are currently employed by members of the STA. Many of them have been working as tree fellers for years, several for as long as 20 years, though on average they have spent 5-10 years working in logging. As such, these operators know their chainsaws and basic felling techniques. It was agreed that the training program should cover occupational health and safety and directional felling. These two concepts are not new but the target group is not part of the information network; the operators are not well informed about environmental and biodiversity concerns, opportunities for reducing the impacts of their felling operations, hearing loss and other occupational hazards.

Special efforts were made to simplify the range and extent of subjects to be taught in order to maximize the success rate of skill transfer. For example, after some trials, it was decided to revise the function of some recognized cuts: the scarf or felling notch cuts (to determine direction), wing cuts (to minimize lateral splitting or wood tearing), appropriate back cuts (to safely release the tree), and to use wedges when required.

3. Access to training sites

A major problem was accessibility to the training sites. Training sites are usually located close to a logging camp. There are thousands of tree fellers in hundreds of location, spread thinly over the 12.3 million ha of Sarawak. Getting from Kuching, where STA is based, to the training site can take a full day of travel or more. Typically the journey starts with about an hour of flying on a commercial airline. This is usually followed by a river trip taking anything from one to four hours, followed by a four-wheel-drive trip for a few more hours.

The target logging camp is contacted weeks in advance to allow the camp management ample time to select trainees. A training area has to be designated ahead of time, mainly to allow identification of trees for felling and building of skid trails to save time.

Weather is an important consideration due to the remoteness of logging camps and difficult transport conditions. Some boats stop when the river is too low due to drought. All road transportation within a logging concession halts during rainfall for safety reasons. This obviously hinders entering and leaving a training location. Rain also stops the training, as trainees cannot move from the camp to the training sites. The Sarawak system of logging is termed selective logging. This system dictates that only trees of acceptable diameter are felled; the number and species of trees allowed for felling are also controlled. In practice, this means that on average only 5-7 trees/ha are felled. Therefore, felling crews are far apart and not concentrated in any one logging area. STA’s training program is moving ahead only slowly because of the extensive geographical area to be covered. STA is considering adding another training team but this is difficult due to the lack of both qualified trainers and funding.

4. Cultural factors

By and large most tree fellers in Sarawak have not attended formal classroom education. This of course is not a barrier to learning new skills. In many cases, this training is the first time the tree fellers have been certified in their life and their pride in this achievement is evident.

There is a problem with communication. Most tree fellers are from the Iban or Orang Ulu, only two of the many ethnic groups living in Sarawak. This means that two different languages have to be used for communication, although often the fellers can understand a common third language like Malay. The STA professional trainer speaks English and Maori, but no Sarawakian language.

An officer from the SFD is part of the training team. One of the officer’s roles is to act as an interpreter. This interpretation creates a barrier in the delivery of the training. In order to reduce the errors due to poor translation, STA prepares audiotapes of some parts of the training, especially the part that provides the background, e.g. why is it important to reduce the damage to the forest during logging. These background materials are taped in the Malay language and then played on a battery-operated tape- recorder at the training sites.

STA is now planning to produce a training video to enhance the quality of delivery. However, training videos are technically difficult and very expensive to produce. An illustrated manual and posters in a few local languages are being designed as training aids.

By the nature of the work, both trainer and trainees are kept closely together in very remote locations for days on end. During this time, a non-Sarawakian trainer needs to be aware of cultural and religious differences and must be sensitive to the behaviour of different peoples. Without a doubt, a more mature trainer is an asset for such interactions.

5. High costs of training

Apart from the difficulty and exhaustion caused by long trips to the training sites, there are high costs associated with training. Typically air tickets cost a few hundred ringgits[10], together with incidental costs like food and transit hotels.

There is also a high cost for the target logging camp as the management there organises and pays for all the river and road transportation, accommodation and food as well as costs of all movements of staff and trainees during the training.

A more important cost that can impede training is downtime. Tree fellers are paid according to the volume of logs produced. They are by nature contractors, meaning their income is entirely dependent on their production. Any stoppage or downtime for whatever reason means reduced income. Why should a tree feller give up personal income to attend a training program?

It can be demonstrated easily that the yield from each tree felled can be increased with directional felling. In other words, the tree fellers can extract more volume of logs although a similar number of trees is felled. This translates into a higher income and is a definite incentive for the tree feller. At least it encourages the tree fellers to improve.

Lastly, the cost of employing a professional trainer is high compared to local standards. There is a need for accommodation, living expenses, insurance etc. The expense of a trainer, coupled with high costs for running such a training program, can discourage organizations from becoming involved in training.

THE RESULTS

Is the STA tree-felling training program a success?

In Sarawak, there are various penalties for infringing the SFD’s logging guidelines. There is a post-logging inspection when damages are recorded and the loggers are fined according to a standard published rate. This can form the basis for comparing the performance of the tree fellers.

In a project carried out in December 1997, the SFD team inspected four coupes (or blocks) of forests after logging to survey the damage. Since a tree feller should cause minimal damage to the standing trees, it is worthwhile examining the fines based on the production of logs. The monetary fines in Table 1 are converted to a per cubic metre basis to reflect the work of a tree feller.

The data in Table 1 show that the damages as defined by the SFD’s list of offences, show a decrease for tree fellers who have undergone the STA Tree Fellers’ Training Program. This indicates that the program has been successful in that the objectives have largely been met.

This result has encouraged STA to improve the training delivery method and to develop and refine techniques that are appropriate for Sarawak’s conditions and its council to continue funding the program. The association is forging ahead with the development of a tractor driver course; training is expected to commence in 2001.

Table 1. Average penalties in Malaysian ringgit (RM) per cubic metre of log produced for different coupes

Types of offences Untrained tree fellers Trained tree fellers Coupe A Coupe B Coupe C Coupe D Uprooting trees 0.06 - 0.02 - Trunk breakage 1.26 1.99 0.81 1.08 Major injury* 0.48 0.49 0.32 0.36 High stump 0.18 0.15 0.04 0.36 Minor injury** 0.55 0.37 0.30 0.29 Total 2.53 3.00 1.49 2.09

* Major injury. Less than half the crown damaged. More than half of the trunk/butt debarked. More than half of the roots broken or dug up.

** Minor injury. Less than half of trunk/butt debarked. Less than half of the roots broken or dug up.

CONCLUSIONS

The Tree Fellers’ Training Program was initiated and carried out by a private sector association (as compared to government- initiated training). This produced some unique approaches that contributed to its success. Close cooperation between the public and private sectors is vital.

It is both difficult and expensive to carry out logging training in Sarawak. The fact that Malaysia is a developing country makes these problems even greater.

Trainers and suitable training programs for tropical logging are extremely scarce. There is a substantial need for more constructive work for those working towards sustainable forest management.

REFERENCES

ITTO. 1990. Report submitted to the ITTC by the Mission “The Promotion of Sustainable Forest Management: a case study in Sarawak, Malaysia”. Yokohama: International Tropical Timber Organisation.

[10] US$1.00 = 3.8 ringgit

12. Forest harvest training - The Sumalindo Project - D. Ed Aulerich* and Jefri R. Sirait**

* FOREST ENGINEERING INC., 620 SW 4th Street, Corvallis OR 97333 U.S.A., Tel: ++(1 541) 754 7558, Fax: ++(1 541) 754 7559, E-mail: [email protected]

** PT. Sumalindo Lestari Jaya, Gedung Astra Agro Lestari, Lt. 2, Jl. Puloayang Raya Blok OR-1, Kawasan Industri Pulogadung, P.O. Box 3396 Jakarta 13930, Indonesia, Tel: ++(62 21) 461 6641, Fax: ++(62 21) 461 6681, E-mail: [email protected]

INTRODUCTION

The purpose of analysing, advising and implementing a variety of different harvesting options by P.T. Sumalindo Lestari Jaya was not to meet any special reduced impact logging (RIL) regulation. The purpose was to conduct operations that would be economically feasible while meeting socially acceptable standards. Since harvesting is more of an engineering activity than a forestry activity, the requirements to conduct such operations have to be physically possible (Aulerich, 1991). These three goals (economic feasibility, socially acceptability and physical workability) are basically the essence of RIL. The objective was, and is, to conduct cost-effective harvesting operations while reducing impacts on the environment.

PT. Sumalindo Lestari Jaya is an integrated wood-based industry company headquartered in Jakarta, Indonesia. It is operating in the natural forests of the upper reaches of the Mahakam and Boh rivers in East Kalimantan, Borneo. It also manages forest plantations in the lower reaches of the Mahakam and Kerdang Kepala near Sebulu, East Kalimantan. The operations in the natural forest supply logs to a plywood complex located in Samarinda and the plantation wood is used in two MDF (medium- density-fiberboard) plants located on the Mahakam River approximately 90 km up-river from Samarinda. The company has made enthusiastic efforts to improve harvesting operations to match their efforts in growing and utilizing the forests under their control.

Although the purpose of the initial investigation of Sumalindo operations by Forest Engineering Inc. (FEI) was to look at road construction activities in the swamps of East Kalimantan, this project quickly expanded into the analysis of the logistics of all harvesting options and activities.

Road construction and harvesting must be considered jointly, especially when difficult terrain conditions, such as swamps and mountains, are encountered. A harvest plan should be generated first, and then the required access system (roads, for example) should tie it all together. Overall plans prepared by skilled staff are, from an engineering perspective, vital to successful harvesting (Aulerich, 1992). For example, no roads should be built without knowing how harvesting will be conducted on each side of the road; no harvest block should be designated until operations for all adjacent blocks have been planned.

All forest harvesting activities require the basic steps of engineering, techniques and equipment. As the harvesting difficulties increase, the importance of each step increases. However, none of the steps will be taken unless top management supports the project both financially and in time allocation. This was true with Sumalindo from the beginning. Whereas it is vitally important that top management is behind the project, it is also important that there is interest at all levels within the organization.

Success depended upon “engineering” the operation because of the difficult terrain. This meant that there needed to be a knowledgeable group of people applying the correct techniques both in the planning phase and the operational phase.

After the initial evaluation of the ongoing operations, cable logging (primarily skylines) seemed to provide the most promising alternative for improving production, decreasing costs and reducing environmental impacts. The primary reasons for this conclusion were the steepness of the terrain, the high rate of soil erosion and the heavy rainfall, which could shut down tractor operations.

Major problems were encountered early in the attempt to implement cable systems. First, the application of cable yarding was prohibited in the natural forests in Indonesia where most of the operations were being conducted. Second, there was little understanding of skyline cable systems within the company, although some of the employees had been exposed to the high- lead system previously. Third, there were few, if any, cable systems working in the area.

Based upon these basic philosophies and conditions, a program of harvest planning and application was implemented, evaluating all harvest activities but concentrating on the application of cable logging systems. It must be remembered that to conduct acceptable harvesting operations there has to be a large degree of concern (both economical and environmental), knowledge, and accountability. This paper will concentrate on the knowledge component.

TRAINING

Training is necessary at different levels within an organization and for regulatory groups outside the organization. In the Sumalindo situation where a different harvest system was needed, there were three groups that had to be exposed to the new harvesting method.

Workshops were organized to introduce top management and middle management (group 1) to the alternatives to the basic ground-based systems being applied. Potential changes in road construction activities were discussed also. In the workshops and meetings, the primary purpose was to inform management of what would be expected in the areas of engineering, training and equipment purchases to make the new system operational and successful.

Meetings were also held with the regulatory agencies (group 2) to explain the concepts and approach to be taken. Since there was a lack of understanding about different systems, it was important that all parties had an understanding of the advantages and disadvantages of the methods to be employed.

Operations people (group 3) are often identified for training programs, although these programs are rarely successful unless the management understands the need and supports such programs.

In the case of Sumalindo, the most enthusiastic group was top and middle management, and this was the major reason for the success of the program. Building on the past efforts of Sumalindo to be leaders in plantation establishment and wood utilization, it was only natural that they would also be interested in options for improving harvesting operations. They also recognized that governmental policies that limited cable logging were in error and based on misperceptions and lack of knowledge about harvest systems.

The training consisted of more than the operation of the cable system. Since the success of cable operations is highly dependent upon the engineering of roads and systems prior to installing the cable equipment, the training efforts required by top and middle management covered all the aspects of an integrated operation. Such activities as road location and construction, linkages between tractor and cable operations, and loading and transportation were covered, as well as the actual cable operation.

Topics of a far-reaching nature were presented in these awareness sessions and included:

● the need for strategic planning; ● advantages and disadvantages of the different harvesting systems; and ● training needs for personnel.

Topics of a more detailed nature were also discussed. Examples included:

● using excavators instead of bulldozers for road construction; ● attaching “thumbs” to the excavators to aid in pioneering; and ● increasing the on-the-ground engineering activities, such as staking.

Since the success of most harvesting operations (especially cable operations) depends on: 1) the initial engineering; 2) the correct technique used by the operational crews; and 3) the correct selection of equipment, each of these components was addressed in the training. All workshops stressed the importance of harvesting plans from the engineering (rather than scheduling) point-of-view.

One-week classroom workshops were conducted initially for the operational management personnel on the following topics:

● cable logging techniques, covering all systems and their operational requirements;

● road design methods, covering the basic elements of horizontal and vertical design parameters and earthworks; and

● overall planning of operations, covering the importance and use of accurate topographic maps.

The training of top management is a never-ending effort of presenting material that increases the knowledge about different harvesting options. Normally managers are trained in other disciplines so they can see how and why other options will benefit the present program. They also need to know the necessary effort for achieving success and the costs and benefits involved. This total effort can take months or years. FEI has found that it takes approximately 5 years from initial efforts to see such a program of planning, training, and implementation become established. This, of course, depends upon many factors including the interest, knowledge, and acceptability of governing agencies (group 2).

TRAINING FOR CABLE OPERATIONS

The field phase of the cable training at Sumalindo began immediately after the classroom sessions with planning exercises, designed for planners, to examine terrain features that would influence the operation. Ground profiles were measured and payload estimates were determined. These sessions were conducted primarily for engineers and line supervisors who would be directing the operations.

A small (7-m tower) cable machine was purchased for the field training effort for the operational personnel. The machine was a Koller K-300, 3-drum, skyline machine and was equipped with a Koller SKA 1.5 multispan, clamping carriage. The selection of this machine was based on cost, simplicity of operation and relative safety of operation. It is an ideal training machine and can also be used in thinnings and final harvests of plantation wood for loads of 1-2 m3.

Planners, future cable planners and logging crews were required to train on the machine. Initially, all planners were required to spend two months working on the operation to give them a better understanding of what is needed to lay out a successful skyline setting. This meant they had to rig trees, put out guylines, notch stumps, and splice and set chokers along with the rest of the crew.

All trainees were instructed in the installation, operation and maintenance of a skyline logging installation. This meant that they learned where to set up the system, how to install the guylines and how to anchor the system. They were instructed in the installation of other structures such as tail trees and intermediate support trees. Basic techniques of splicing, felling of timber for the skyline, notching stumps and installing other types of anchors were covered. In total, each trainee spent approximately four months in training on the small cable system before moving to the larger cable machine in the natural forest. The training exercises were conducted first as part of a land- clearing program, but later, as the technique was applied to actual plantation harvesting, the program shifted to on-the-job training.

In the meantime, strategic planning was being conducted in the natural forests of the interior Mahakam River drainage, where a large 21 m tower would be utilized (Aulerich, 1995). This yarder was a Thunderbird TTY 70 slackline machine using a Thunderbird D-35, drum-lock, slack-pulling carriage equipped with a multispan truck carrier. The system can be used in a partial-cut or clearcut operation, yarding uphill or downhill.

All settings and roads were planned based on a designed strategic plan that had been field-verified. The cable logging was integrated into the tractor operations wherever possible after the initial test and training phase. The combination of systems greatly reduced the impact of skidding and allowed the tractors to skid downhill and the skyline to yard uphill.

The initial training at this location consisted of the planning and operational phase conducted on a 1 000-ha block. An engineer- hooktender initially directed the activities of the crew, but later acted in an advisory capacity. He was on the project for a total of four years.

Another cable operation that was installed by FEI and applied by Sumalindo in their plantation operations consisted of a monocable skyline using an 11-horsepower capstan winch system rigged in a zigzag configuration. This system consisted of open-sided blocks that enabled the logs to pass hanging blocks. The logs were attached manually to the skyline while it was moving.

The purpose of utilizing the monocable system was to increase productivity in swampy areas unsuitable for ground-based systems. Hand-carrying production rates were approximately 1 m3/person day. Kuda-kuda techniques were also tested and had a small production increase but were not used widely in the plantations. The initial tests using the monocable system resulted in production rates of 6-7 m3/person day. After the initial training machine was installed and tested, an additional eight units were purchased. Sumalindo then constructed two additional units.

TRAINING FOR ROAD LOCATION AND DESIGN

At the same time, a concerted effort to improve road design and construction was also being conducted. This was especially critical with the new skyline cable systems that were anticipated, since the preferred location of roads on the ridge tops enabled uphill yarding whenever possible and reduced side-hill road construction.

Although the company had developed and used complex engineering designs, there were some major problems with the location and the actual construction techniques. The location of roads, especially in the plantations, followed a grid pattern around the planted blocks, which rarely matched the ideal location for a harvest road.

In the steeper terrain of the interior, the final road rarely mirrored the paper design. This was primarily a result of no staking, allowing the equipment operator to build at will. This is quite common in many parts of the world where companies often feel that engineering expenditures are a waste of money. The results are that, in many cases, excessive materials are moved, thus causing environmental and economic disasters in the construction phase. Another problem is that in many cases the structural integrity of the road is in question.

In Sumalindo’s case, top management recognized the need to improve and initialized a program of engineering in the design, location and construction control. A program of field staking was developed so that the equipment operator could receive directions during the construction phase.

To aid in this application, FEI developed a field design manual that would allow the engineers to locate, design and stake roads directly in the field (Aulerich and Shen, 1994). Training sessions were conducted in the classroom and in the field to illustrate the necessity for road staking to reduce costs and negative environmental impacts of road construction.

Initially, river crossings on the Sumalindo main-line road were simply improved fords that were sometimes dangerous or even obstacles for transportation. As the engineering level for roads was improved, the necessity of developing a permanent road system with adequate drainage structures, including culverts and bridges, was recognized.

A program was initiated to replace temporary culverts with concrete culverts constructed on-site. This, approach, along with a well-designed maintenance program of road grading and culvert cleaning, helped ensure consistent access.

For the major streams, several different bridge designs were developed and installed. The first was a multispan log stringer bridge constructed over the Majud River. The next series of bridges were steel stringer bridges manufactured in place and installed at different locations, such as over the Bakun River at Kilometer 83, a major operations and training site. The largest and most complex bridge project was the design, construction and installation of a 60-m single-span bridge across the Boh River at Kilometer 122.

SUMMARY

Concern by an organization about doing a good job, both environmentally and economically, and employing people who are knowledgeable about the systems required for the work will result in RIL. Unfortunately, in today’s society many people do not realize that RIL will not occur simply by wishing for it or by passing regulations mandating it to happen. It will result, however, from ethically motivated organizations with competent professional personnel, trained by knowledgeable instructors, working in a stable and viable industry. In many ways, PT. Sumalindo Lestari Jaya is such an organization. It has an enlightened management team that is searching for ways to improve techniques and is willing to allocate resources to training programs and systems applications that will bring results.

There are only two ways to achieve RIL. One is to do the logging job correctly, and the other is to stop logging altogether. The second alternative is not practical or acceptable.

REFERENCES

Aulerich, E. 1991. Welcome address for the Symposium on Forest Harvesting. In: Proceedings of a Symposium on Forest Harvesting in Southeast Asia, June 17-20, 1991, Singapore. p. ii.

Aulerich, E. 1992. Harvesting plans: the strategic and the practical. ASIAN TIMBER, December 1992. pp. 30-33.

Aulerich, E. & Shen, Z. 1994. Engineering tables for forest roads metric. Forest Engineering Inc., Corvallis, Oregon 97333.

Aulerich, E. 1995. Applying skylines to partial-cuts in the tropics. ASIAN TIMBER, November 1995. pp. 41-45.

13. Reduced impact logging: does it cost or does it pay? - Wulf Killmann*, Gary Q. Bull, Olaf Schwab** and Reino E. Pulkki***

* Director, Forest Products Division, Food and Agriculture Organization of the United Nations, Via delle Terme di Caracalla 0100 Rome, Italy, Tel: ++(39 6) 5705 3221, Fax: ++(39 6) 5705 5618, E-mail: [email protected]

** 2022, 2424 Main Mall, Faculty of Forestry, University of British Columbia, Vancouver, British Columbia, V6T 1Z4, CANADA, Tel.: 604 822 1553, Fax: 604 822 9106, E-mail: [email protected]

*** Faculty of Forestry and the Forest Environment, Lakehead University, 955 Oliver Road, Thunder Bay, Ontario Canada, P7B-5E1, Tel.: 807-343-8564, Fax: 807-343-8116, E-mail: [email protected]

INTRODUCTION

There has been an increasing interest in reduced impact logging (RIL), particularly in the last decade. The interest has been shaped by a number of developments that include: a political focus on sustainable development at the highest levels, a general consensus about the necessity to manage forests more sustainably and a recognition that better technology is now available to monitor harvesting practices and forest conditions. There is a general desire to reduce negative environmental impacts all the way down to the operational level. It is also recognized that many conventional logging (CL) systems are not going to produce yields of the same volume and/or quality of timber at a sustainable level.

For these reasons, governments are now imposing stricter regulations on forest harvesting and timber markets and demanding responsible harvesting practices. Also, in some markets the demand for certified timber products is growing. Given the political and market demand for change, there is a commensurate desire to further articulate the nature of RIL. Some important questions must be addressed. For example, what have harvesting studies, carried out to date, been telling us and, perhaps even more important, what have these studies not told us? What should researchers do to continue or discontinue the promotion of RIL? Finally does RIL cost or does it pay?

To address these questions the objectives of the initial research briefly described in this paper were to: ● produce a definition and lay down the characteristics of RIL; ● review existing literature to tease out the quantitative information on RIL; ● develop a prototype model for recording data on RIL and CL operations; and ● compile a general cost profile of different logging machines.

DEFINITION

One of the first challenges in addressing the question “Does RIL pay?” is to define what we mean by reduced impact logging. Various authors (Armstrong and Inglis, 2000; Elias, 2000; Van der Hout, 1999; Reid and Rice, 1997; Ruslim et al., 1999; Sist et al., 1998; Sist, 2000; Department of Forests, 1999; Webb, 1997) have proposed definitions or aspects of RIL.[11]

Summarizing the work of these authors, RIL is defined as:

Intensively planned and carefully controlled implementation of harvesting operations to minimize the impact on forest stands and soils, usually in individual tree selection cutting.

RIL is generally characterized (Table 1) by having stand entries only at a predetermined cutting cycle, which generally should be no shorter than 20 years. No more than one-third of the basal area should be removed at one entry and a pre-harvest operational inventory is recommended strongly. Access roads should be constructed well in advance of harvesting, and climbers should be cut, if required, up to two years before the harvest. Planning should consist of tree marking, location mapping and planned felling direction. This planning should be linked with the layout of a minimal number of extraction trails. Once the logs are removed, they should be placed on landings of minimal size. The logging operations should only be conducted under favourable conditions (e.g. when soils are dry). Forest workers and supervisors should be well trained so they can ensure minimal negative impacts on the site; make maximum utilization of the trees felled; incur minimal damage to residual trees and advanced regeneration; and facilitate rehabilitation of negative impacts that may have occurred on the site. Finally, workers and supervisors should be well qualified to conduct post- harvest assessments.

Table 1. Some major characteristics of RIL techniques

Characteristics Stand entries at predetermined cutting cycle Landings planned < 1/3 of the basal area removed Tree marking, location mapping and felling direction Pre-harvest operational inventory Operations only under favourable conditions Advanced access road construction Maximum utilization of all trees felled Minimize extraction trails Minimal residual damage Climber cutting if required Rehabilitation of negative impacts Worker and supervisor training Post-harvest assessment LITERATURE REVIEW, HIGHLIGHTS AND ANALYSIS

Two hundred and sixty-six studies and articles on RIL and/or CL, conducted in closed broad-leaved tropical forests, were reviewed and classified. These publications dated back to 1950. The initial review of 212 articles was conducted in 1997 for the FAO Global Fibre Supply Model project (FAO, 1997). This review was then updated in 2000 when 54 additional articles were added, including some of the German and French literature (FAO, 2001).

The majority of the studies were published in the last decade (Figure 1). However, as many of the graphs in this paper indicate, the statistics were not presented according to a standardized system. In the 1970s, the number of publications on CL increased rapidly, whereas RIL was covered in only a few publications prior to 1980.

Once the articles were compiled and analysed, the statistics were organized into a database (Figure 2). The data extracted are summarized in the figures presented in this paper in order to give an indication of some general trends. It should be noted, however, that the data found in the various reports are not adjusted to account for inflation.

Figure 1. Number of forest harvesting publications by decade

Figure 2. Literature summary of cost-related characteristics of RIL and CL

Logging intensity

Figure 3 is a summary of 130 observations (n=37 for RIL and n=93 for CL). The median[12] volume harvested was 8 m3/ha lower, with RIL at 37 m3/ha and CL at 45 m3/ha. In the majority of the RIL studies the logging intensity was <60 m3/ha, while for CL there was a significant portion >60 m3/ha.

Figure 3. Logging intensity in terms of volume per hectare removed

In Figure 4, 101 observations (45 RIL and 56 CL) showed no significant difference in the number of trees harvested per hectare between the two forms of logging. The median number of trees harvested was 8 trees/ha for each cutting cycle. Taken together with the observation in Figure 3, we can conclude that CL involves extracting larger trees.

Figure 4. Logging intensity in terms of trees per hectare removed

Costs

Figure 5 summarizes the findings on planning costs per cubic metre. In 10 observations the median cost of RIL was US$ 0.28/m3 higher than that of CL. In another two observations the planning costs were reported as costs per hectare. The range of US$ 5.06 to US$ 50.00/m3 indicates serious shortcomings in the statistics on planning at this time.

It should also be noted that inventory costs were also woefully lacking and no statistical summary could be generated from the literature reviewed. Future studies must record and report planning and pre-harvest operational inventory costs in more detail.

In a total of 10 observations, the median felling cost of RIL was US$ 0.56/m3 higher than that of CL. This represents a cost that is 48 percent higher.

Figure 5. Summary of planning costs with RIL and CL

Figure 6. Felling costs in RIL and CL

One reason for the significant difference between the two types of logging is that RIL, on average, extracts smaller trees, and therefore felling costs per cubic metre are higher. Time studies on felling in RIL and CL operations showed that the time required to fell each tree is significantly longer in RIL operations. This additional time is used for felling preparations, such as determining the appropriate felling direction, and careful directional felling to prevent the stem from splitting and damaging advanced regeneration.

In a review of 11 articles (Figure 7) no appreciable difference in skidding costs between the two forms of logging was found. We did postulate that skidding costs might be lower with RIL, but these observations do not support this hypothesis. The average size of the trees is one of the factors that affects skidding costs per cubic metre. Therefore, the harvesting of larger trees in CL operations would result in lower skidding costs per cubic metre compared with RIL. Another factor may be that with fewer skid trails, the overall extraction distance would be longer. Figure 7. Skidding costs in RIL and CL

In these studies, no standard methodology was used to determine inventory, planning, operational and total costs. Therefore the total cost comparison (see Figure 8), which for 23 observations shows an increase in costs of US$ 8.50/m3, is not comparable with the previous cost graphs. The total costs in these studies were not broken down by activity. Therefore, it was impossible to assess which logging phases had been included.

The comparison indicates an increase in total costs (often not explicitly defined in the articles) of more than 43 percent. This highlights the need for a statistical framework that would make it possible to use field researchers’ and practitioners’ data more widely if they were presented according to a standard format.

Most studies that state that the total costs would be higher for RIL mention at the same time that the lower level of damage to the residual stand in RIL operations is likely to compensate for some of the additional costs in the future.

Another factor is that RIL is fairly new and it is likely that costs will be reduced as logging crews become more experienced.

Figure 8. Total costs of RIL and CL logging systems

Damage

Another issue of concern in the literature is damage to site and stands. Here we found significant differences between the two approaches to forest harvesting.

In 75 observations (Figure 9) we found that RIL had 41 percent less residual stand damage, when compared to 49 percent for CL systems.

Other studies (Figure 10), which measured stand damage in a different manner (a total of seven observations), found that median rates of damage for RIL and CL were 124 and 131 trees per hectare, respectively.

The data used to generate Figure 10 are not clear; no indication is given of tree size, proportion of tree species of commercial interest and the share of residual stand volume or basal area damaged. Again, this supports the need for a standardized approach to reporting logging impacts.

Figure 9. Stand damage (percent of residuals)

Figure 10. Stand damage (stems/ha)

In 15 observations (Figure 11) the damage to trees per trees felled was 56 percent less in RIL operations when compared to CL operations. In RIL operations the first step of directional felling is to determine the general felling direction according to the layout of the skid trails. Within this frame the felling direction is adjusted in order to minimize damage to the residual stand by felling into the section with the lowest density of trees of commercial interest. Figure 11. Stand damage (trees/trees felled)

Figure 12 was generated using 39 observations. There was a significant decline in skid trail damage with the adoption of RIL. The area covered by skid trails in RIL operations is almost 50 percent less than in CL. One of the most important characteristics of RIL is the layout and planning of skid trails prior to felling. The combination of marked skid trails and maps showing the location of each tree is very effective in minimizing the area affected by skidders when compared with the large area covered with trails when each stem is approached in a random manner as is done in CL operations.

Figure 12. Site damage (skid trails)

Despite only eight observations (Figure 13) of road damage, the trend was as expected with a much lower level of damage (41 percent) when using RIL techniques. As mentioned earlier, the planning of access routes prior to harvesting is a very effective tool to optimize the construction of roads and trails.

Figure 13. Compartment area damaged by roads

Figure 14, with 58 observations, indicates that site damage at RIL sites was 57 percent less than at CL sites. This is a very important finding. One of the most important problems with CL practices is that the high impact on the residual stand and soil severely limits the ability of the site to regenerate completely within the proposed cutting cycles. It is possible to reduce the impact of timber harvesting drastically by implementing RIL (Figure 14). In tropical forests, the highest level of nutrient loss due to leaching was detected in areas where the mineral soil was exposed. With RIL it is possible to restrict these severe damages to a relatively small area so that nutrient losses can be minimized while advanced regeneration is maintained to enable the site to recover completely within one cutting cycle.

Figure 14. Site damage (total area)

Utilization, lost timber and canopy opening

Figure 15, with 21 observations, indicates that utilization rates[13] are better with RIL; however, many more studies are needed. The training of workers and supervisors for RIL techniques usually includes some instructions on efficient bucking. In CL operations most stems were topped before the first branch, although there might be another valuable log above the first branch.

In 33 observations (Figure 16), with the adoption of RIL the volume of lost timber[14] was 60 percent lower than in CL operations. The maps used in RIL operations clearly indicate the position of each log so that the skidder operator can proceed systematically. In CL operations, it is often the case that logs are not found by the skidder operator.

The median for lost timber in RIL operations may be lower than reported here. This is because in many studies a loss was reported for CL operations but none was given for RIL operations. This could be interpreted as zero loss of timber; however, since this had not been stated explicitly, it was not considered in the analysis.

Figure 15. Utilization of felled timber

Figure 16. Lost timber (percent of volume removed)

In 25 observations (Figure 17) with RIL the canopy opening was 36 percent smaller and again this was expected. In CL operations most trees are felled in their leaning direction so that the felling gaps rarely overlap. In RIL operations several trees are felled into the same gap, whenever possible, thereby maintaining a high level of crown cover.

Figure 17. Canopy opening (percent)

COST DATA BY MACHINE TYPE

Another project was conducted to find standardized cost data that permit a comparison of data found in field trials with data assigned to various pieces of logging equipment by manufacturers. With cost information, it is possible to detect significant variances and better explain variability, particularly from region to region or from country to country.

In total, 231 pieces of ground-based logging equipment were reviewed with regard to machine costs, and all results were stored in a database. Figure 18 illustrates the types of cost and production data for a feller-buncher.

PROTOTYPE MODEL

The information presented in this paper clearly demonstrates a weakness in the existing economic data on CL and RIL. To address this issue we developed a RIL statistical prototype to collect, assemble and disseminate information for researchers and practitioners.

Figures 19-21 demonstrate just a small portion of the Visual Basic programme. As indicated on the front page, the structure of the information system is based on our findings in existing literature, but no logging-cost model by region is available at the moment. This is a feature that can be added easily once the system is adapted for the web environment, which will be administered by a group of editors considered experts in their field or in their region.

Figure 20 shows the mechanism for data entry in the following categories:

1. General planning 2. Felling 3. In-stand operations 4. Extraction 5. Roadside operations 6. Costs and impacts Figure 18. Example of standard ground-based machine costs

Figure 19. RIL statistical framework prototype

Figure 20. Logging method and system description form

The statistics that are to be compiled for general planning and compartment information include: general background information, logging compartment information, planning levels and road access.

In Figure 21, for example, the logging compartment information includes: stand data, terrain data, weather and silvicultural system data.

Figure 21. Logging compartment information data required

CONCLUDING REMARKS

RIL does cost more, but not as much as one might expect. It is important to bear in mind that the cost data presented represent a short-term analysis and they do not reflect all ‘costs’ such as, for example, the costs that might be expected when harvesting in the next logging cycle. Also, experience in RIL is new and higher costs can be expected. Once logging crews become more familiar with RIL it is expected that costs will be reduced.

In the longer term, and from ecological, social and economic points of view, it does pay to secure a more sustainable higher-valued timber supply with the application of RIL techniques. Many of the figures presented in this paper on site and stand damage, utilization rates and size of canopy opening support this assertion. In this context, it is also clear that RIL would support much more effectively the objectives of financial institutions, such as the World Bank, in their emphasis on poverty alleviation than other forms of logging. Additionally, the market will require widespread implementation of RIL if the forests are to be certified.

There are serious data deficiencies with respect to planning and inventory, and there is a serious lack of standards in data collection. We conclude that the existing data should be integrated with the proposed statistical framework to the greatest extent possible. In addition, new data on cable and aerial logging systems should also be collected and added to the existing statistical framework.

It would also be very helpful to build a logging cost model in order to make the information useful to practitioners, researchers, equipment manufacturers and modellers.

Finally, in order to make the necessary advances, it would be necessary to move to a web-based data compilation and information dissemination system. Input and participation of other researchers is required to develop a more reliable harvest information system. REFERENCES

Armstrong, S. & Inglis, C.J. 2000. RIL for real: introducing reduced impact logging techniques into a commercial forestry operation in Guyana. International Forestry Review, 2(1): 17-23.

Elias. 1999. Introducing a manual on reduced impact timber harvesting in the Indonesian selective cutting and planting system. ITTO Tropical Forestry Update 9, (3): 26+30.

FAO. 1997. Literature synthesis on logging impacts in moist tropical forests, by R. Pulkki. Global Fibre Supply Study Working Paper Series #No. 6. Food and Agriculture Organization of the United Nations, Rome.

FAO. 2001. Literature review on logging impacts in moist tropical forests, by O. Schwab, R. Pulkki & G.Q. Bull. Global Fibre Supply Model Working Paper Series No. 7. Food and Agriculture Organization of the United Nations, Rome.

Reid, J.W. & Rice, R.E. 1997. Assessing natural forest management as a tool for tropical forest conservation. Ambio, 26(6): 382-386.

Ruslim, Y., Hinrichs, A. & Ulbricht, R. 1999. Technical guideline for reduced impact tractor logging. SFMP Document No. 10a. Indonesian-German Technical Cooperation. Ministry of Forestry and Estate Crops in Cooperation with Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ).

Sist, P. 2000. Reduced impact logging in the tropics: Objectives, principles and impacts. International Forestry Review, 2(1): 3-10.

Sist, P., Dykstra, D. & Fimbel, R. 1998. Reduced impact logging guidelines for lowland and hill dipterocarp forests in Indonesia. CIFOR Occasional Paper No. 15. Jakarta, Center for International Forestry Research. Jakarta.

Van der Hout, P. 1999. Reduced impact logging in the tropical rain forest of Guyana. Dissertation. University Utrecht, Utrecht.

Department of Forests. 1999. Vanuatu reduced impact logging guidelines. Vanuatu, Department of Forests, Vanuatu.

Webb, E.L. 1997. Canopy removal and residual stand damage during controlled selective logging in lowland swamp forest of northeast Costa Rica. Forest Ecology and Management, 95: 117-129.

APPENDIX 1

Definitions of reduced impact logging

Armstrong, S. & Inglis, C.J. 2000. RIL for real: introducing reduced impact logging techniques into a commercial forestry operation in Guyana. International Forestry Review, 2(1): 17-23. RIL should at least imply a systematic approach to harvesting, specifically improved pre-harvest planning on the basis of appropriate and accurate information.

Elias. 1999. Introducing a manual on reduced impact timber harvesting in the Indonesian selective cutting and planting system. ITTO Tropical Forestry Update, 9(3): 26+30.

Reduced impact timber harvesting includes the following:

● Forest surveys prior to harvesting to generate data required for planning of the harvesting operations;

● A tree location and topographical map as a guide for felling and skidding;

● Climber cutting prior to felling;

● Regular training and adequate supervision;

● Routine briefing on procedures and techniques;

● Adoption of a premium wage system consisting of a base wage and premiums depending on quality and quantity of production as well as terrain difficulty.

Van der Hout, P. 1999. Reduced impact logging in the tropical rain forest of Guyana. Dissertation. University Utrecht. 1999.

The term ‘reduced impact logging’ (RIL) surfaced around the mid 1990s (Pinard et al., 1995), but the concept is also referred to as ‘low impact logging’ (Blate, 1997; Holmes et al., 1999), ‘planned’ (as opposed to ‘unplanned’) logging (Johns et al., 1996; Barreto et al., 1998), ‘environmentally sound harvesting’ (Hendrison, 1990). There is a need to clarify the substance covered by these terms, because we may be comparing apples and oranges. The adjective ‘reduced’ hints at a comparison with another logging method, which is obviously the current, local practice. The current practice may cover a broad range of methods, varying from ‘hit-and-miss, unplanned’ logging to ‘standard practice’ logging (Van der Hout and Van Leersum, 1998). The place a current practice may take on this scale depends largely on the scale and level of capitalization of the operation. Several elements are common to most RIL systems including the following (ITTO 1990):

● Pre-harvest inventory and mapping; ● Pre-harvest planning of roads and skid trails; ● Pre-harvest climber cutting; ● Directional felling; ● Optimum recovery of utilisable timber; ● Winching of logs to planned skid trails.

Reid, J.W. & Rice, R.E. 1997. Assessing natural forest management as a tool for tropical forest conservation. Ambio, 26(6): 382-386. Natural forest management is controlled and regulated harvesting, combined with silvicultural and protective measures, to sustain or increase the commercial value of stands, all relying on natural regeneration of native species.

Reduced Impact Logging aims to:

● reduce damage to the residual stand and soil (compaction and erosion); ● leave the environment in good condition; ● improve utilisation of timber potential and reduce waste; and ● reduce rehabilitation costs.

RIL includes the following planning and harvesting stages:

● pre-harvest inventory and topographic survey; ● contour and tree location map plotting; ● skid trail and log landing planning on the map; ● skid trail and log landing marking in the field; ● RIL using the marked trails and directional felling; ● skidding using “winching”; ● closing up; ● block inspection, quality control and reporting; and ● payment based on quality of work.

Sist, P., Dykstra, D. & Fimbel, R. 1998. Reduced impact logging guidelines for lowland and hill dipterocarp forests in Indonesia. Occasional Paper No. 15. Bogor, Center for International Forestry Research.

Reduced impact logging aims to reduce soil disturbance, impacts on wildlife, and damage to residual trees. RIL can be characterized through the following activities:

● stock survey (harvestable trees, potential crop trees, protected trees species, trees for non-timber forest products, important wildlife resource trees);

● climber cutting (all climbers >2 cm dbh that are attached to the canopy of harvestable trees);

● topography assessment;

● protected areas (unworkable areas, sacred areas, conservation areas, stream buffer zones);

● road, landing and skid trail planning; ● final pre-logging RIL survey (marking of skid trails, adjusting and marking felling directions, excluding trees from harvest where the extraction intensity would exceed 8 trees/ha);

● tactical maps and written plans;

● directional felling;

● skid trail marking and opening;

● rehabilitation of skid trails (cross drains, removing temporary stream crossing structures);

● road closure (removal of temporary bridges and culverts, cross drains); and

● other post-harvesting operations (controlled access to the permanent forest estate; proper maintenance of road surfaces, ditches, cross drains and stream crossings; clean landings and temporary camps).

Sist, P. 2000. Reduced impact logging in the tropics: objectives, principles and impacts. International Forestry Review, 2(1): 3-10.

Reduced Impact Logging (RIL) is also called Low Impact Logging (LIL) or Low Impact Harvesting (LIH). It includes the following principles:

● planning of logging operations at the annual coupe scale; ● pre-harvest forest inventory (100% timber inventory); ● planning of felling; ● planning of secondary roads, landings and skidding trails; ● supervision of logging operations; ● planning of post-logging operations; and ● detailed tactical logging map 1:2 000.

RIL is not only a technique to reduce the damage to the residual stand; it is also a procedure to optimize resource utilization through forest inventory and planning of harvesting.

Vanuatu Department of Forests. 1999. Vanuatu reduced impact logging guidelines. Vanuatu, Department of Forests.

The Vanuatu Reduced Impact Logging Guidelines were designed to reduce the impact of forest harvesting on soil and residual trees in comparison to damage levels incurred during conventional tractor logging in natural forests in Vanuatu. The main objective of RIL is to protect the regeneration and advance growth trees (potential crop trees) required for the next harvesting cycle and to minimize harvesting costs and optimize utilizable log volume. These objectives can be achieved through:

● appropriate pre-operational planning; ● careful implementation of acceptable harvesting practices and silvicultural prescriptions; and ● post-operational restoration and maintenance.

Webb, E.L. 1997. Canopy removal and residual stand damage during controlled selective logging in lowland swamp forest of northeast Costa Rica. Forest Ecology and Management 95: 117-129.

Selective logging is a harvesting system that produces disturbances similar to natural tree-fall gaps. Under optimal conditions selective logging does not significantly change forest structure, but stimulates natural regeneration and growth with the formation of gaps. A selective logging operation that utilizes methods (e.g. directional felling, planned extraction) to reduce damage to the residual stand is termed a controlled selection system.

[11] The work of the authors is described in more detail in Appendix 1. [12] The median is such a number that half of the observations are smaller than that number and half of the observations are greater than that number. [13] Utilization rate: Percentage of theoretical maximum merchantable volume available actually loaded on truck. [14] Lost timber: Merchantable logs having been prepared for extraction but not found by skidder operator.

14. Financial assessment of reduced impact logging techniques in Sabah, Malaysia - John Tay*, John Healey and Colin Price*

* Innoprise Corporation Sdn Bhd, P.O.Box 11622, Kota Kinabalu, Sabah, Malaysia, Tel: ++(60 88) 24 4130/24 4100 Ext.106, Fax: ++(60 88) 24 3244, E-mail: [email protected]

** University of North Wales, Bangor, United Kingdom, E-mail: [email protected] and [email protected].

INTRODUCTION

Reduced impact logging (RIL) has been given due recognition in recent years in the Asia-Pacific region because of its relevance to sustainable tropical forest management. The primary reason for this interest is that RIL can minimize on- and off-site impacts compared with “business-as-usual” or conventional logging (CL). Case studies have shown unambigouously that RIL can reduce logging disturbance by as much as 50 percent compared with conventional logging (Marsh et al., 1996). Also, the incremental benefit from RIL in reducing logging damage for future crop trees reduces carbon volatilization during and after logging (Pinard and Putz, 1996; Healey et al., 2000). Thus, the adoption of RIL is a right step towards achieving a sustainable supply of goods and services from tropical forests. It is also an attractive option for utility companies that emit greenhouse gases to offset their liability in forest sinks through changes in forest practices. These initiatives provide an alternative source of funds for forest enterprises to invest in the rehabilitation of logged-over forests.

Although RIL is an emerging harvesting system, its adoption beyond pilot or research-scale experiments has been modest. One factor that appears to impede the uptake of RIL by loggers is the lack of information on the costs and benefits of applying RIL. This paper attempts to bridge the information gap with respect to the financial aspects of RIL.

In this paper, the financial costs and benefits of RIL are based on a case study carried out in Sabah, Malaysia. The paper draws upon a larger study on the economics of RIL covering timber and non-timber values (Tay, 2000). Its aims are essentially to:

● highlight the key benefits and costs of RIL (i.e. RIL in Sabah); ● discuss key constraints, challenges and opportunities confronting RIL in Sabah; ● examine ways of removing some barriers associated with adopting RIL; and ● discuss RIL in the context of forest management issues (e.g. timber certification).

THE CASE STUDY

Study site

The study was conducted as part of a project located in the Sabah Foundation forest concession area in Sabah, Malaysia. The pilot phase of the project comprised 1 400 ha and lasted three years from 1992 to 1995. In 1996, the project area was expanded by another 1 000 ha.

The topography of the project site is hilly and characterized by broken ridges with altitudes ranging from 100 to 1 200 m above mean sea level. Numerous creeks and streams dissect the area. Mean annual rainfall recorded near the project site at Danum Valley Field Centre is 2 500 mm. There are generally two slightly wetter periods in the year with the influence of the wetter northeast monsoon that lasts from October until February, and the southwestern monsoon between May and September. The maximum and minimum annual temperatures recorded were of 31o C and 23o C.

The forest is dominated by trees of the Dipterocarpaceae family. It has an unevenage structure of five distinct canopy layers corresponding to seedlings, saplings, poles, mature and emergent trees. In one study of an 8 ha primary forest near the study site, 511 species of dipterocarps in 59 families and 164 genera were counted (Newberry et al., 1992). The mean density of trees greater than 1 cm diameter at breast hight (DBH) was 2 248/ha. The mean density of lianas over 2 cm DBH was estimated at 881/ha (Campbell, 1990).

Logging techniques

Conventional logging in Sabah utilizes chainsaws (Stihl 070) and bulldozers (D7F Caterpillar). Prior to harvesting, the fellers and bulldozer operators cruise the area to determine the approximate locations of trees, roads and skid trails (map scale 1: 50 000 with contour intervals of 50 m).

During harvesting, a team of one or two fellers locates commercial trees. All trees above 60 cm DBH are felled except those with visible defects. Fruit trees and trees of less than 60 cm DBH are not cut. Generally, timber fellers have complete freedom over the direction and method of felling. Consequently, felling damage can be excessive in uncontrolled logging and as much as 62 percent of stems suffer total damage (Fox, 1968). However, the severe felling damage in Sabah is also caused by high felling intensity of 8-15 trees/ha above 60 cm DBH (i.e. 80- 150 m3/ha). In addition, the abundance of climbers or lianas (500-900 m3/ha) significantly influences felling damage by pulling down and uprooting neighbouring trees. After a tree is felled, it is trimmed to a log length of about 6 m. Logs are then extracted to the roadside by bulldozers. The bulldozer team determines the layout of the skid trail and leaves a pattern of extravagant skid trails. Under the RIL system, the emphasis is on planning and controlled harvesting operations with respect to felling and skidding activities. The Sabah RIL guidelines are based on best management practices of the Queensland Forest Services, Australia. They comprise the following components:

● Climber cutting of large woody lianas 9 to 12 months prior to harvesting.

● Planning of roads and skid trails on a map scale of 1: 5 000 with special reference to minimizing disturbance to soil, streams and vegetation.

● Planning of log landings to reduce unnecessary openings and soil disturbance.

● Inventory of all harvestable trees to facilitate planning of skid routes and for post-harvest auditing.

● Skid trails flagged on the ground to restrict bulldozer movements during trail construction and skidding.

● Low skid trail density (not exceeding 150 m/ha) to reduce environmental impacts.

● Directional felling to align trees towards skid trails and away from potential crop trees.

● Use of winches for log extraction.

● Closing-down logging operations by removing obstructions to streams and draining skid trails at intervals according to their slope.

● Setting aside stream buffer zones.

These harvesting guidelines are additional to those prescribed for CL practices. They were conceptualized and tested in the field for application under Sabah conditions prior to their full adoption.

FRAMEWORK OF THE COST-BENEFIT ANALYSIS

The objective of the financial assessment is to compare RIL with CL in terms of costs and benefits. The assumption is that observed post-logging differences between RIL and CL can be attributed to the different logging methods rather than to variations between the sites.

Source of data

The data were generated directly in the study area through the establishment of a network of growth and yield plots. Eight forest management units totalling 406 ha were divided into four pairs. In each pair, one unit was subjected to RIL and the other to CL during 1993 and 1994. The following parameters were measured: area logged; area converted to bare soil under skid trails, log landings and roads; timber volume extracted; composition and damage to the residual stands. A time and motion study of tree felling and log extraction was carried out in another equivalent pair of forest management units. Log prices, log grades and logging costs were obtained from the forest enterprise concerned.

Timeframe of analysis

The analysis covered two cutting cycles at year 0 (t0) when the first harvest was undertaken in the primary forest, and at year 60 (t60) when the second harvest will be made. The reason for taking two harvesting cycles was that timber yields after 60 years are assumed to be markedly different from the initial yields.

In order to investigate the financial impacts of the second harvest scheduled at t60, the post-logging inventory data were projected over 60 years using the process-based DIPSIM forest growth model developed by Ong and Kleine (1995). Model outputs were validated against the independent results of Ong and Kleine (1995) and those of Bossel and Krieger (1994) for logged forests in Sabah. The t60 model outputs for tree density and size were used to predict the yields under RIL and CL. For the second harvest, the study assumed that previous alignments and locations of roads, log landings and skid trails would be re-used using the same harvesting techniques in the respective RIL and CL logged units.

Levels of analysis

Three different levels of analysis are used (Figure 1):

● Per cubic metre is the relevant level of analysis if a certain amount of wood is required or if there is a target for foreign exchange earnings from exporting timber and timber products.

● Per logged hectare is applicable when it is desirable or necessary to retain a pre-defined area of undisturbed forest. In this case the potential of foregone timber is not an issue to the stakeholders.

● Per representative hectare is appropriate when a constraint exists on the total area available for logging. For example, when certain logging technologies place restrictions on access to steep slopes. This level of analysis is relevant where limits on the total available forest area are likely to become binding over the next logging cycle.

Figure 1. Schematic representations of the three levels of analysis

Financial indicators

The relative advantage of RIL and CL is expressed by the net present value (NPV) criterion. The NPV provides a means of evaluating and comparing a stream of benefits and costs of RIL and CL over time by applying discount rates. The NPV of benefits B and costs C at time t, given discount rate i, is calculated as follows: For the financial analysis at t60 discount rates from 2 to 10 percent were chosen to enable decision-makers in both the private and public sectors to assess the viability of the project.

RESULTS AND DISCUSSION

Physical impacts

Harvest area

Of the 176 ha allocated to the CL units for logging, almost all of the area was logged. In RIL units, only 129 ha (56 percent) of the 230 ha was logged (Table 1). Forty-four percent remained unlogged as, according to Forestry Department Rules, slopes steeper than 35° are excluded from logging, although usually this rule is not enforced strictly throughout Sabah. Within the RIL and CL units, these areas were logged but the RIL harvesting guidelines permit logging in these areas only when incidental damage is minimal by having the tree crown falling out of these zones. Approximately 36 percent out of 47 ha with slopes over 35° were logged in the RIL units.

Harvest volume

The mean volume of timber extracted in the RIL and CL units of 106 and 136 m3/ha, respectively, was within the extraction intensity of 40-160 m3/ha reported in other parts of the study area. Such extraction intensities occur also in other locations in Sabah (Fox, 1968; Chai and Udarbe, 1977; Marns and Jonkers, 1981).

Harvesting timber using RIL techniques resulted in a substantial volume of timber foregone on steep slopes, in buffer zones and areas where felling is unsafe and causes environmental problems. The net timber volume foregone in RIL amounted to approximately 35 m3/ha. This has serious financial implications.

Timber stocking

Prior to harvest, total stem densities for trees greater than 1 cm DBH in the CL and RIL units were 4 382 and 3 798 trees/ha (Table 1). The original stand structure did not differ significantly for the six DBH classes (1-5, 5-10, 10-20, 20- 40, 40-60, >60 cm DBH) except for trees with 1-5 cm DBH. Following harvest, tree density in four of the six diameter classes (5-10, 10-20, 20-40 and >60 cm DBH) was significantly greater in the RIL than the CL units (Figure 2).

An assumed benefit of RIL is that it leaves a more valuable forest for the second harvest due to lower damage compared with CL. Based on the simulation results, the number of trees greater than 10 cm DBH in the RIL units was about 10 percent higher than in the CL units (RIL = 624 trees/ha; CL = 567 trees/ha, Figure 3). Growing stock was about 31 percent higher (RIL = 343 m3/ha; CL = 260 m3/ha). The biggest difference was for trees with 20-40 cm DBH. They totalled 41 trees/ha (31 percent difference between treatments) and 44 m3/ha (35 percent between treatments).

Although the growing stock benefited from RIL, the potential gains were not realized fully in the second harvest. It appears that trees in these diameter classes had not reached the harvestable size by the end of the 60-year simulation. Trees of 10 cm DBH would have to grow at a mean diameter increment of 1 cm/yr to reach a harvestable size of 60 cm DBH in 60 years. However, growth rates for dipterocarps or non-dipterocarp species of 10 cm DBH are commonly much lower. For example, Abdul Rahman et al. (1992) reported that the periodic diameter annual increment of dipterocarp and non-dipterocarp species greater than 10 cm DBH in a tractor-logged forest in Pahang, Malaysia was 0.52 cm/yr and 0.30 cm/yr, respectively. Chiew and Garcia (1998) reported a 0.56 cm/yr mean diameter growth rate of all species greater than 10 cm DBH in a tractor-logged forest in Sabah. In Peninsular Malaysia, the diameter growth rates of dipterocarps and non-dipterocarps greater than 10 cm DBH were 0.60-0.69 cm/yr (Thang and Yong, 1994). The figures for a selection of dipterocarps in Sarawak were 0.30-0.43 cm/yr (Chai et al., 1994).

Logging damage

In extracting 9 to 13 trees of above 40 cm DBH, the overall damage inflicted on the residual forests averaged 60 percent and 30 percent in the CL and RIL units, respectively (Table 1). The considerably lower damage in the RIL units was due to several factors. First, climber-cutting before felling reduced the overall proportion of trees with crowns snapped off (Appanah and Putz, 1984).

Second, the benefit of directional felling was most evident for trees in the 5-40 cm DBH range where the remaining stem density was higher in the RIL units compared with the CL units. In the RIL units, trees were marked for directional felling with due consideration to existing regeneration to minimize felling damage. Furthermore, trees were felled to facilitate skidding and minimize the bulldozer movements, thereby reducing incidental damages (Fox, 1968). Directional felling did not reduce the incidence of snap-off in the RIL units. It is most likely that the harvested trees had large crowns and stems that caused unavoidable damage to smaller trees.

Table 1. Summary of physical impacts of RIL and CL techniques on different forest values

Forest values RIL CL RIL-CL difference (%) A. Timber Logging area · Before logging · 230 ha · 176 ha · Area logged in · After logging · 128 ha · 175 ha RIL = 56 %, CL = 99% Stand structure (>1 cm DBH) · Before logging · 3,798 ±101 · 4,382 ± 212 · Density after logging trees ha-1 trees ha-1 · After logging · 3,001 ± 131 · 2,463 ± 212 RIL =79%, CL = 56% trees ha-1 trees ha-1 Species (density of dipterocarps) · Before logging · 522 ± 69 trees · 742 +100 trees · Density after logging ha-1 ha-1 · After logging · 388 ± 46 trees · 435 ± 49 trees RIL = 74 %, CL = 57 % ha-1 ha-1 Removals (extracted and · 797 trees ha-1 · 1,920 trees ha- · 58 % killed) 1 · Volume extracted -1 -1 · Att 0 · 9 trees ha or · 13 trees ha or · 31 % 106 m3 ha-1 136 m3 ha-1 3 -1 3 -1 · Att 60* · 111 m ha · 85 m ha · 31 % · Trees damaged · 21 % of original · 44 % of original · 52 % (destroyed) stems stems · Forgone timber · 50 % by area · None · 100 % (35 m3 ha-1) B. Soil* · Length (m) · Skid trails · 8.17 ± 0.37 m · 34.83 ± 0.99 m · 77 % · Roads · 3.76 ± 0.53 m · 4.67 ± 0.15 m · 20 % · Area (ha) · Skid trails · 4.3 ± 0.2 ha (4 · 21.0 + 0.8 ha · 80 % % of logged) (12 %) · Log landings · 0.7 ± 0.1 ha · 1.7 ± 0.2 ha (1 · 59 % (<1 %) % of logged) · Roads · 4.3 ± 0.6 ha (4 · 6.5 ± 0.4 ha (4 · 34 % %) %) · Percent · Bladed surface · 38 ± 5 · 87 ± 3 · 56 % · Churned soil · 50 ± 4 · 11 ±3 · 354 % · Intact topsoil · 9 ± 5 · 2 ± 0.41 · 78 %

Figure 2. Density of trees over 1 cm DBH before and after logging in units logged by CL (first column) and RIL (second column) techniques. The original stand structure in the experimental units did not differ significantly for the six DBH classes except for trees in the 1-5 cm DBH P 0.06 (t=2.291). After logging, there was a higher number of standing trees in the RIL units across all DBH classes. Tree densities in four of the DBH classes (5-10; 10- 20; 20-40 and >60 cm DBH) were significantly greater in the RIL than the CL units

Third, better planning of skid trails in RIL made an important contribution. As skid trails were marked on the ground, bulldozer operators had a better sense of direction and purpose, hence, avoiding unnecessary movements. Marking skid trails also prevented the bulldozer operator from driving the machine to the stump, and in the process, causing a higher incidence of stem damage. With planning, there are fewer skid trails and log landings in RIL units, which also reduces the loss of trees.

Open spaces

The total area of skid trails, log landings and roads in the RIL units was only 40 percent of that in the CL units (Table 1). They represented approximately 7 and 17 percent of the total area logged in the RIL (129 ha) and CL units (175 ha), respectively. All three categories of openings (skid trails, log landings and roads) in the RIL units were smaller than in the CL units, but only skid trails showed a significant difference in area between the treatments.

Figure 3. Simulated diameter distribution (logarithmic-transformed) in units logged with CL (top frame) and RIL over 20-year time intervals RIL units had a smaller area of skid trails occupying 4 percent of the total area logged compared with 12 percent in the CL units. Skid trails in the CL units, however, occupy a far larger proportion of the total forest area (Figure 4). The average length of skid trails in the RIL units was significantly shorter than in the CL units. Skid trail widths were the same.

Figure 4. Extent and intensity of skid trails (light line), log landings (dark lumps) and roads (dark lines) in CL and RIL units. The shaded areas in the RIL units represents unlogged areas, where slope is greater than 35°. Skid trails in the RIL units with a bladed surface were only half the proportions encountered in the CL units (Table 1). The proportion of skid trail area with churned soil in the RIL units was higher than in the CL. The proportion of skid trail area with topsoil intact was also higher in RIL units than in CL.

Log landings occupied less than 1 percent of the total area logged in both units. Their average size in the RIL unit was less than half that in the CL units (Table 1).

The total area of roads in RIL units was slightly more than half that in the CL units (Table 1). Roads represent approximately the same proportion in both RIL and CL units; about 4 percent of the total area logged.

Logging efficiency

Felling

The total time taken to fell a tree differed significantly between RIL and CL (Figure 5). RIL took approximately 32 minutes and CL took 19 minutes. The main reason for this difference was attributed to differences in work organization and the manner of executing the individual work elements.

Figure 5. Felling time for CL and RIL. The top frame shows the time taken to fell trees, the middle frame the time for bucking, and the lower frame non- productive time In RIL, fellers cut only two to three trees at a time in one area to minimize damage inflicted by trees falling on trees that had been cut down previously but not extracted. This procedure also eases skidding jams where fallen trees have been stacked on each other amidst logging debris. Bucking was done immediately after felling to facilitate skidding. In CL practices, fellers cut trees without interruption from 0700 to 1130 hours, and with no apparent regard to the facilitation of skidding. In most cases, bucking was left unfinished and had to be postponed until skidding commenced because of the congestion created by too many trees in one location.

On average, RIL and CL fellers spent 66 percent and 72 percent respectively of their time productively. Time taken to direct the fall of a tree was significantly higher in RIL than CL. This was the most time-consuming activity. RIL’s higher unproductive time was due to fellers having to wait for fallen trees to be extracted to prevent log jams. Idling and personal times in RIL were also much longer compared with CL but were related to the longer working hours in RIL which made them more apparent compared with CL.

Skidding

The total time required to extract a log using RIL was significantly longer than in CL (RIL = 39 minutes; CL = 26 minutes, Figure 6). With RIL, 72 percent of the overall time for skidding operations was spent on productive work elements compared with 86 percent with CL. The time taken to winch logs was the most important variable in RIL because logs were skidded uphill to disperse skid trail runoff.

Figure 6. Skidding times for CL and RIL. The top frame indicates productive times and the bottom frame unproductive times. The corresponding non-productive times for RIL and CL were 28 percent and 14 percent of total skidding times. More frequent stoppage of work due to mechanical failures occurred in RIL, possibly due to uphill skidding. Personal and delay times were also higher in RIL, but this could be associated with the longer working hours that made these times more apparent to the study.

Cost-benefit analysis

Per volume (m3) logged

The net contribution of RIL from the first harvest (t0) was less than half of CL (RIL 3 3 = RM27/m ; CL=RM57/m , Table 2). The lower NPVRIL was due to high extraction costs, and a lower yield. RIL costs 18 percent more than CL. The bulk of the additional cost comprised extraction costs at RM18/m3 or 12 percent of CL.

Table 2. Summary of financial analysis of RIL and CL on a per cubic metre/logged/management hectare

Year of Per m3 Percent Per Percent Per Percent Harvest logged ha representative ha (RIL- RIL CL (RIL- RIL CL (RIL- RIL CL CL)/CL CL)/CL CL)/CL 0 Revenue 196 200 2% 20 27 -24% 11 653 27 045 -57% 776 200 Cost 169 143 18% 17 19 8% 10 019 19 374 -48% 864 485 Net 27 57 53% 2 7715 -62% 1 634 7 671 -79% 912 60 Revenue 662 650 2% 73 55 33% 41 089 54 820 -25% 260 133 Cost 439 361 22% 48 30 59% 27 235 30 405 -10% 559 579 Net 223 289 23% 24 24 1% 13 854 24 415 -43% 701 554 0+60 @0% 250 346 28% 27 32 -14% 15 488 32 086 -52% 613 269 @2% 95 145 34% 10 15 -31% 5 855 15 112 -61% 440 199 @4% 49 84 42% 5 10 -48% 2 949 9 992 -70% 260 049 @6% 34 66 48% 3 8 -57% 2 053 8 411 -76% 661 459 @8% 30 60 50% 3 7 -60% 1 770 7 912 -78% 156 957 @10% 28 58 52% 2 7 -62% 1 678 7 752 -78% 993 796

Notes:

Price/cost increase at 2 % p.a.

3 3 Harvest yield at t0... RIL=106 m /ha CL=136 m /ha

3 3 Harvest yield at t60... RIL=111 m /ha CL=85 m /ha

3 3 For the second harvest (t60), RIL and CL yielded RM223/m and RM289/m respectively, without discounting. The reduction in profit due to the adoption of RIL was 23 percent of CL.

3 Total t0 and t60 NPV for RIL and CL without discounting was RM250/m and 3 RM346/m , respectively. At a 2 percent discount rate, the total t0 and t60 net 3 NPVRIL dropped to RM95/m or 62 percent of the undiscounted value compared with a drop of 58 percent for CL. Higher discount rates favour CL even more. This phenomenon is associated with the fact that high interest rates favour high yields in the short term (Price, 1989; Leslie, 1987).

The profitability of RIL was sensitive to log price changes using data from the second harvest only (Table 3). Without discounting, a 10 percent increase in log prices across all species for the second harvest would improve the base NPVRIL 3 by approximately 30 percent from RM223 to RM290/m . The increase in NPVRIL was almost on par with the base NPVCL. At a log price increase of 30 percent, the NPVRIL nearly doubled against the base case. A similar level of improvement was found with discounting, although the NPVRIL value was lower. For example, at a 2 3 3 percent discount rate, the base NPVRIL of RM68/m rose to RM88/m , an increase of about 23 percent with a 10 percent change in log prices. Log price increases of such a level or even higher have occurred in Asian countries before. For example, real prices of Asian tropical logs more than tripled in the first half of 1993 (ITTO, 1996). However, the improvement in RIL over CL with log price changes assumes that CL prices will not increase. This may or may not be the case depending on the supply and demand of logs.

Table 3. Sensitivity analysis on RIL for harvest at t60 on a per cubic metre basis

Net Present Value Discount rate (%) ==> 0 2 4 6 8 10 Base 223 68 21 7 2 0.73 1 Price increased by 10% 290 88 28 9 3 0.95 30% 422 129 40 13 4 1.39 50% 554 169 53 17 5 1.82 2 Log grade increased by 10% 258 79 25 8 3 0.85 30% 328 100 31 10 3 1.08 50% 398 121 38 12 4 1.31 3 Cost decreased by 10% 262 80 25 8 3 0.86 30% 340 104 32 10 3 1.12 50% 418 127 40 13 4 1.37

Timber prices might also increase because of certification, which may provide access to niche markets with a price premium. Certification requires the application of environmentally sound logging practices. A number of tropical countries have recognized the growing interest in certification and have responded with the development of national certification programs. Log price changes associated with timber certification would only affect timber from well- managed forests and not from conventionally logged forests.

The NPVRIL (t60) was also sensitive to changes in timber grade. Without discounting, a 10 percent improvement in SQ grades resulted in a 16 percent higher NPVRIL. With a 50 percent improvement in SQ grades, the NPVRIL was 78 percent higher. When benefits were discounted, identical levels of NPVRIL increases were obtained since all effects are at year 60. Although log grade improvement has a smaller effect on NPVRIL than price change, it can be influenced directly during harvesting operations. For example, directional felling, winching and avoiding log jams reduce damage to logs. These factors affect especially the t60 revenues because the quality of the timber from the next cut depends on the degree and extent of damage inflicted on future crop trees during the first cut. For the t0 revenues, the difference in timber quality between the RIL and CL units was less critical because timber was harvested in old growth forests.

Reducing the cost of extraction and operating overheads also significantly increases the NPVRIL. Without discounting, a 10 percent reduction in these costs raises the NPVRIL by 17 percent. At 50 percent reduction in costs, the NPVRIL nearly doubles. With discounting, identical levels of improvements in NPVRIL were found.

There are a number of opportunities to reduce the extraction costs. First, log harvest planning could be confined to loggable areas only, which can be only slightly more than half of the total area. Hence a 100 percent stock mapping incurs unnecessary costs. Stock mapping (including the production of field maps) costs RM1.35/m3 or RM143/ha, and is the most expensive activity of the additional activities required for RIL. There is a need to find an alternative means to determine what, in a given area, is loggable and unloggable. Second, the non- operational costs include other costs such as consultancy and training costs, which are expected to decrease over time when RIL becomes an integral part of forest management and staff is trained sufficiently. Third, there could be potential savings in RIL through reduction in machine wear and tear from better-planned skid trails and harvesting techniques. The potential savings in extraction costs could be at least 10 percent.

Per logged hectare

For the first harvest, the profits generated from using RIL and CL were RM2 912/ha and RM7 715/ha, respectively (Table 2). The 62 percent lower profits for RIL were due to lower harvested volumes. However, if only extraction activities were considered, RIL costs RM344 more than CL (RIL = RM9 573 and CL = RM9 917). This peculiarity was due to the opportunity cost of foregone timber in RIL not being included in the analysis, as some costs that were paid piecemeal on the basis of area covered (e.g. stock inventory, climber cutting etc) did not consider the foregone area.

For the second harvest, the NPVRIL and NPVCL without discounting were RM24 701/ha and RM24 554/ha, respectively. The relatively small difference favouring CL was due to improvement in RIL’s t60 yields over CL. At 2 percent discount rate, the total t0 and t60 net NPVRIL were lower than NPVCL by 71 percent. With increasing discount rates, the financial returns of both RIL and CL decline drastically.

Per representative hectare

The total undiscounted net benefits per representative hectare logged by RIL and CL at t0 and t60 were RM15 488 and RM32 086, respectively (Table 2). The 52 percent difference was due entirely to the opportunity cost of foregone timber that could not be harvested in RIL. With a 2 percent discount rate, the total net benefit for RIL and CL had similar trends of declines as per logged area. Higher discount rates make RIL even less attractive.

Comparing levels of analysis

It is evident that in most cases, RIL has substantial net costs (i.e. the net benefits are much less than those of CL). This is mainly because of the lower timber volumes harvested at t0. The assessment per logged hectare shows also the effect of the lower volume harvested by RIL (106 m3/ha) compared with CL (136 m3/ha). The opportunity cost becomes still greater if the smaller proportion of area harvested by RIL (129 ha out of 230 ha) compared with CL (175 out of 176 ha) is considered, which is demonstrated in the per representative hectare calculation.

For the t60 scenario, the lower damage to the remaining stand caused by the initial logging following RIL led to a greater timber yield (111 m3/ha) than following CL (85 m3/ha). Thus per cubic metre, RIL appears to be more profitable than CL. On a per logged and per representative hectare basis, RIL is less financially attractive compared with CL because of opportunity costs due to foregone timber.

Increasing the discount rate from 2 to 6 percent shows RIL to be less favourable when calculating on a per logged hectare and per representative hectare basis. This peculiarity is explained by the harvest yields at t0 and t60. Per logged hectare, the long-term timber benefit at t60 favours RIL. Increasing the discount rate makes this benefit less significant as an offset against the opportunity cost in t0. Per representative hectare, the opportunity cost of t60 timber becomes an insignificant item.

CONCLUSION AND RECOMMENDATIONS

The lessons learned from this study are:

1. RIL effectively reduces logging damage. In extracting 9-13 trees of above 40 cm DBH, logging damage decreased by 50 percent due to the removal of climbers, tree marking for retention of potential crop trees and directional felling, pre-harvest skid trail planning and RIL- imposed harvesting guidelines, e.g. restricting bulldozer movements to marked skid trails, limiting skid trail width and restricting felling in sensitive areas. 2. RIL costs money, especially when it is applied in the hilly terrain of Sabah. This study reveals that RIL is less profitable compared with CL because nearly half of the forest areas needed to be excluded from logging. However, such restrictions on timber production have environmental gains. The financial implications are borne by the timber producer, while society at large benefits. On the other hand, if a larger area needs to be exploited to make up for the shortfall in volume, the forest is used faster than planned and environmental benefits are similarly affected.

3. The “conventional” approach to costing RIL needs re-inventing to capture the true RIL costs. This study has demonstrated that the costs depend on the level of analysis (i.e. per cubic metre logged, per logged area or per representative area). Per cubic metre and per representative area are superior to account for the opportunity costs of foregone timber.

4. Discount rates significantly affect the NPV given that the t60 benefit and cost are distant in the future. Above 6 percent, RIL becomes financially infeasible.

5. The significance of RIL warrants a review of the RIL guidelines in two aspects:

(i) reducing the proportion of the area of a forest actually being allocated for logging; and

(ii) much more careful harvesting of timber from the area actually being logged.

6. If RIL is adopted at all, it has to be paid for at the forest enterprise level by paying the workers properly. At the global level, appropriate transfer mechanisms should be designed to distribute costs equitably.

ACKNOWLEDGEMENTS

Innoprise Corporation Sdn. Bhd., the British Council and the International Tropical Timber Organization provided financial support for the research. Numerous people have lent advice and assistance in this research: F.E. Putz, M. Pinard, R. Ong, D. Lee, M. Kleine, P.M. Costa, R. Nussbaum, C. Marsh, S. Williams, A.M. Rajin, and S. Gapid. We are grateful to all of them including others not mentioned here due to space limitation.

REFERENCES

Abdul Rahman, K., Wan Razali W.M., Shahrulzaman, I. & Azman, H. 1992. Growth response of hill dipterocarp forest following two methods of logging in Peninsula Malaysia. In: Wan Razali Mohd., Shamsudin, I., Appanah, S. and Abdul Rashid, M.F. (eds.), Proceedings of the symposium on harvesting and silviculture for sustainable forestry in the tropics. Kuala Lumpur, Malaysia. 5-9 October 1992. pp. 24-31.

Appanah, S. & Putz, F.E. 1984. Climber abundance in virgin dipterocarp forest and the effect of pre-felling climber cutting on logging damage. Malaysian Forester, 47: 335-342.

Bossel, H. and Krieger, M.H. 1994. Simulation of multi-species tropical forest dynamics using a vertically and horizontally structured model. Forest Ecology and Management, 69: 123-144.

Campbell, E.J.F. 1990. Ecological relationships between lianas and trees in a lowland tropical rain forest in Sabah, Malaysia. Unpublished M.Sc. thesis, University of Stirling, UK.

Chai, E.O.K., Tan, S.S. & Lee, H.S. 1994. Relative performance of dipterocarp trees in natural forest, managed forest, logged forest and plantations throughout Sarawak, East Malaysia. In: Wan Razali Mohd., Chan, H.T. & Appanah, S. (eds.), Proceedings of the seminar on growth and yield in tropical mixed/moist forests. 20- 24 June 1998, Kuala Lumpur, Malaysia. pp. 161-175.

Chai, D.N.P. & Udarbe, M.P. 1977. The effectiveness of current silvicultural practice in Sabah. Malaysian Forester, 40: 27-35.

Chiew, K.Y. & Garcia, A. 1998. Growth and yield studies in the Yayasan Sabah Concession Area. In: Wan Razali Mohd., Chan, H.T. & Appanah, S. (eds.), Proceedings of the seminar on growth and yield in tropical mixed/moist forests. 20- 24 June 1998, Kuala Lumpur, Malaysia. pp. 192-204.

Fox, J.E.D. 1968. Logging damage and the influence of climber cutting prior to logging in the lowland Dipterocarp forest of Sabah. Malayan Forester, 31: 326-47.

Healey, J.R., Price, C. & Tay, J. 2000. The cost of carbon retention by reduced impact logging. Forest Ecology and Management, 139: 237-255.

ITTO. 1996. Reduced impact, increased costs? Tropical Forest Update, 6: 10-12.

Leslie, A.J. 1987. A second look at the economics of natural management systems in tropical mixed forest. Unasylva, 39 (155): 46-57.

Marns, H.M. & Jonkers, W. 1981. Logging damage in tropical high forest. UNDP/FAO Working paper no. 5, FO:MAL/76/008. Sarawak Forestry Department, Malaysia.

Marsh, C.W., Pinard, M.A., Putz, F.E., Tay, J. & Sullivan, T.E. 1996. Reduced impact logging: a pilot project in Sabah, Malaysia. In: Schulte, A. & Schone, D. (eds.), Dipterocarp forest ecosystems: towards sustainable management. pp. 293- 307.

Newberry, D., Still, M.J. & Campbell, E.J. 1992. Primary lowland dipterocarp forest at Danum Valley, Sabah, Malaysia. I. Structure and family composition. Phil. Trans. Roy. Soc. London, 355 (1275): 323-457.

Ong, R.C. & Kleine, M. 1995. DIPSIM: a dipterocarp forest growth simulation model for Sabah. Research paper no.2. Forest Research Centre, Sabah, Malaysia.

Pinard, M.E. & Putz, F.E. 1996. Retaining forest biomass by reducing logging damage. Biotropica, 28: 278-295.

Price, C. 1989. The theory and application of forest economics. Blackwell, Oxford.

Tay, J. 2000. Economics of reduced impact logging techniques in Sabah, Malaysia. Ph.D. Thesis. University College of North Wales, Bangor, Wales, UK.

Thang, H.C. & Yong, T.K. 1994. Status on growth and yield studies in Peninsula Malaysia. In: Wan Razali Mohd., Chan, H.T. and Appanah, S. (eds.), Proceedings of the seminar on growth and yield in tropical mixed/moist forests. 20-24 June 1998, Kuala Lumpur, Malaysia. pp. 137-148.

15. Financial indicators of reduced impact logging performance in Brazil: case study comparisons - Thomas P. Holmes*, Frederick Boltz** and Douglas R. Carter***

* Research Forester, Southern Research Station, USDA Forest Service, PO Box 12254, Research Triangle Park, NC, USA 27709, Tel: ++(1 919) 549 4031, Fax: ++(1 919) 549 4047, E-mail: [email protected]

** E.T. York Presidential Fellow, School of Forest Resources and Conservation, Institute of Food and Agricultural Sciences, 357 Newins- Ziegler Hall, University of Florida, Gainesville, FL, USA 32611-0410, Tel: ++(1 352) 846 0904, Fax: ++(1 352) 846 1277, E-mail: [email protected]

*** Associate Professor, School of Forest Resources and Conservation, Institute of Food and Agricultural Sciences, 357 Newins-Ziegler Hall, University of Florida, Gainesville, FL, USA 32611-0410, Tel: ++(1 352) 846 0893, Fax: ++(1 352) 846 1277, E-mail: [email protected]

INTRODUCTION

The neo-classical theory of the firm is built on the presumption that businesses attempt to maximize profits, where financial profits are simply the difference between the revenue received by a firm and the costs it incurs. Economic theory says that, for a given technology, the firm evaluates the various ways it can utilize labour, land and capital inputs to produce outputs. Maximum profits are gained by choosing input levels so that the value of the marginal product produced by each input is equal to its cost (Varian, 1984). If inputs to the production process are non- priced (such as environmental quality), or under-priced (such as standing timber) then they will be over-utilized from a social perspective. In the case of forestry, the historical result has been timber mining, degradation of environmental quality and industrial migration.

The cycle of timber depletion, environmental degradation and industrial migration is not a new story. It occurred in the primary forests of the USA (Williams, 1989) and has proceeded to such tropical countries as Brazil (Nepstad et al., 1999). The demand for tropical timbers suggests that this process will continue unless significant changes in technology and/or policy are implemented. Tropical forests, formerly under little pressure for timber production, are now increasingly the focus of logging industry development. Growth in the Latin American and African share of total tropical timber production will likely continue, as few Asian countries have the potential to substantially increase sustainable log production (ITTO, 1996). Recent trends in tropical timber production show a decrease in the Asia-Pacific region’s share of global production by 29.6 percent from 1992 through 1999. Production in the Latin America-Caribbean region increased 15.8 percent over this same period (ITTO, 1999).

Conventional logging (CL) practices are recognized as a principal contributor to degradation and ultimate conversion of tropical forest ecosystems to non-forest land uses (Johnson and Cabarle, 1993; Bryant et al., 1997). The decreased productivity of forests following damaging CL entries may translate into higher opportunity costs for long-term forest management and greater incentive for the conversion of forestland to alternative uses.

Reduced impact logging (RIL) practices comprise harvest planning, infrastructure development and operational techniques that aim to reduce the damaging impacts of logging while improving the production efficiency of logging operations. The FAO model code of forest harvesting (Dykstra and Heinrich, 1996) provides the basis for the RIL system design. RIL techniques and guidelines are not fixed prescriptions, but adapt the best harvesting techniques to existing biophysical and economic conditions. Throughout the tropics, RIL has proven more ecologically benign than conventional logging activities (Boxman et al., 1985; Johns et al., 1996; Pinard and Putz, 1996; Uhl et al., 1997). Furthermore, RIL reduces operational costs (Boxman et al., 1985) and, in some cases, generates higher initial financial returns than conventional operations (Barreto et al., 1998; Holmes et al., 2000). RIL systems may provide a low-cost method of maintaining the carbon sequestration functions (Putz and Pinard, 1993; Boscolo et al., 1997) and the structural diversity of tropical forests (Frumhoff and Losos, 1998). However, it has not been demonstrated that RIL operations alone are sufficient for the sustained production of merchantable timber or for the maintenance of the environmental service flows provided by tropical forests in their natural, unaltered state.

Financial self-interest is a strong motivating force. Understanding the financial aspects of RIL under different ecological, industrial and market conditions is imperative if sustainable forest management is ever to become a reality in tropical forests. If a “feasible financial set” of conditions is identified where RIL is more profitable than CL practices, then self-interest may help to protect ecological services after initial harvest entries in some logged tropical forests.

In this paper, we compare indicators of financial performance for three case studies in the Brazilian Amazon. To conduct the analysis, we disaggregate case study results into common measures of productivity, cost and profitability. Direct comparisons are complicated by the fact that standard protocols were not used across studies. To provide a tractable analysis, we utilize incremental measures, where increments measure proportional changes between CL and RIL systems.

CASE STUDIES

International donors and the private sector funded the following studies conducted during the mid-1990s:

1. Agrosete (Barreto et al., 1998; Johns et al., 1996): The RIL-CL comparison was conducted on private forestland of Fazenda Agrosete, approximately 20 km southeast of Paragominas, Pará, Brazil. RIL was conducted on a 105-ha plot and CL on an adjacent 75-ha plot. Trained operators worked with the research team on the CL and RIL plots.[15] RIL extracted 4.5 and CL 5.6 trees per hectare. Productivity, cost and logging waste measures were drawn from observed operations and plot impacts. Lowland, closed-canopy terra firme forests of Paragominas are humid, evergreen with a canopy height of 25 to 40 m and emergents extending to 50 m. The terrain is moderately undulating and soils are kaolinitic red-yellow Oxisols. Annual rainfall averages 1 750 mm with a distinct dry season from June to November. The mean annual temperature is 28° C.

2. Cauaxi (Holmes et al., 2000): Research was conducted on private forestland of the CIKEL timber company of Fazenda Cauaxi, some 120 km southwest of Paragominas, Brazil. RIL was conducted by trained operators of Fundação Floresta Tropical (FFT) on 100 ha of undisturbed forest, while CL was implemented by local contractors hired by CIKEL on an adjacent 100-ha plot. CL harvested 39 and RIL 41 timber species, at intensities of 4.25 and 3.31 trees per hectare, respectively. Logging intensity data and wastewood measures were collected in the Cauaxi plots. Average productivity and cost measures for the study were calculated from a sample of FFT RIL operations and CL operations in the Paragominas region. The study was conducted in lowland, closed- canopy terra firme forests of the Paragominas timbershed (see Agrosete above for ecosystem description).

3. Itacoatiara (Winkler, 1997): The study examined private forestland of Mil Madeireira Itacoatiara S.A., a Brazilian subsidiary of Precious Woods, Ltd., which is located 227 km east of Manaus. Efficiency and environmental impact studies were conducted in two adjacent 10-ha cutting blocks. Production costs per component were estimated as a proportion of total logging costs, while specific per unit costs were not reported. Both RIL and CL operations were implemented by the Precious Woods, Ltd. logging team. CL removed 16 and RIL 6 trees per hectare, or 78.9 percent and 26.9 percent of the available merchantable volume per plot. Sixty-five tree species were of commercial interest, of which 24 were harvested under RIL and 32 under CL. The lowland, moist terra-firme forests lie upon inclined plateaus of tertiary origin. Steep ravines dissect the plateaus at slopes of 10° to 40° (Precious Woods, 1997). Soils are Oxisols. Canopy height is 30 to 37 m with emergents extending to 55 m. Annual rainfall is around 2 200 mm with a dry season from June to October. The mean annual temperature is 26° C.

Table 1. Logging characteristics and financial cost estimates from three studies in the Brazilian Amazon

Harvest Fazenda Agrosete Fazenda Cauaxi Mil Madeireira variables Itacoatiara Conventional Reduced Conventional Reduced Conventional Reduced logging impact logging impact logging impact logging logging logging Plot size 75 ha 100 ha 100 ha 100 ha 10 ha 10 ha No. of 5.6/ha 4.5/ha 4.25/ha 3.31/ha 16/ha 6/ha trees harvested (net area) Volume 29.7m3/ha 38.6m3/ha 25.4m3/ha 25.4m3/ha 92.7m3/ha 36.5m3/ha harvested (net area) Skidding Caterpillar Caterpillar Caterpillar D6 Caterpillar Caterpillar Pre- machines D5B bulldozer 518C Logger 525 518C rubber skidding rubber bulldozer with rubber tyre skidder using tyre winch tyre with winch D4H TSK skidder skidder bulldozer with winch with winch with and and winch. grapple grapple Skidding and using Caterpillar Caterpillar D5E 518C bulldozer rubber with winch tyre skidder with winch Road Caterpillar Caterpillar Caterpillar D6 Caterpillar Caterpillar D8 Caterpillar building D5B bulldozer D5B Logger D6 SR bulldozer D8 machines bulldozer bulldozer bulldozer bulldozer Costs Based on Based on Based on Based on Based on Based on gross area gross standard standard gross area gross area volume volume area Planning - $1.87/m3 $0.14/m3 $1.34/m3 - 15% of total Felling $0.30/m3 $0.31/m3 $0.49/m3 $0.62/m3 10% of total 12% of total (2 person)

$0.25/m3

(3 person) Skidding - $1.37/m3 $1.31/m3 $1.99/m3 $1.24/m3 63% of total 39% of to landing total Opening $0.41/m3 $0.28/m3 $0.57/m3 $0.32/m3 27% of total 24% of roads and + total log decks $0.27/m3 skid trail layout Log deck $2.59/m3 $2.59/m3 $2.01/m3 $1.28/m3 - - operations Total $4.67/m3 $6.30/m3 $5.20/m3 $5.07/m3 100% 100% direct Stumpage $6.66/m3 $5.00/m3 $9.09/m3 S7.61/m3 - -

Table 1 shows the general logging characteristics and provides a summary of relevant cost data at the three study sites. Variation in harvest intensity, particularly at Itacoatiara, is observed. Because logging costs generally decrease, up to some point, as harvest intensity increases, large differences in harvest intensity may obfuscate meaningful comparisons. In addition, the reader is warned that comparisons of cost data can be misleading because identical activities may or may not be included in each cost category, and different protocols may have been used to collect data. Further, cost data from Itacoatiara are not presented in monetary units, but only as percentages of total cost. However, the authors were careful in constructing Table 1, and it presents a summarization of the best comparative data available regarding RIL and CL parameters in the Brazilian Amazon.

PRODUCTIVITY COMPARISONS

Directional felling is more time consuming and thus less productive under RIL when RIL and CL extract similar volumes and target stems (Figure 1). CL sawyers were 10 to 22 percent more productive in volume produced per hour (m3/hr) than comparable RIL-felling teams. Importantly, at Fazenda Agrosete, Barreto et al. (1998) found that gains in directional-felling productivity by a 3-person team rendered RIL more efficient than CL 2-person felling. On average, the 3-person RIL team felled 34 trees per day relative to the 22 trees felled by 2 CL sawyers. Productivity gains exceeded the increased cost of labour and equipment for the 3- person team. At Itacoatiara, Winkler (1997) found that felling time per stem was higher under RIL. However, because the RIL operation focused on “only the most mature trees of commercial interest”, greater volume per stem was recovered in RIL felling operations, resulting in its greater efficiency relative to CL.

Figure 1. Incremental productivity of CL felling (m3/hr), computed as (CL productivity - RIL productivity)/RIL productivity

Skidding operations are more productive under RIL due to efficient planning and infrastructure development (Figure 2). RIL utilizing rubber-tyre skidders on moderately undulating sites in the Brazilian Amazon increased productivity by 41 to 49 percent over CL bulldozer operations. Unplanned, conventional skidding is less efficient and thus more costly due to delays and damage caused in “roaming”, or searching for felled stems in an uncharted forest. Using a bulldozer for skidding in a planned RIL operation increased skidding productivity by 5 percent over CL- skidding productivity (Barreto et al., 1998).

Winkler (1997) found lower RIL-skidding productivity at Itacoatiara. However, the components of RIL skidding comprised pre-skidding (skid trail opening, winching to skid trail) and skidding to the log deck. The CL operation only comprised traditional skidding activities, and used a rubber-tyre skidder.

Figure 2. Incremental productivity of RIL skidding (m3/h), computed as (RIL productivity - CL productivity)/CL productivity

COST COMPARISONS

RIL operations incur costs associated with pre-harvest activities (block layout and line cutting, inventory, vine cutting, data processing and mapmaking) and harvest planning activities (tree marking, road planning, log deck planning and skid trail layout) that are not incurred by CL operations. In addition, RIL requires special training of personnel that incurs costs beyond the on-the-job training received by CL operators. The crux of the matter is whether or not gains in efficiency attributable to planning operations equal or exceed the incremental RIL costs.

RIL costs

RIL investments in inventory, planning, vine cutting and infrastructure development up to a year before logging increases the proportional cost of pre-harvest operations (Figure 3). The incremental pre-harvest costs of RIL are expected to be an important disincentive to RIL adoption by the logging industry (Barreto et al., 1998; Hammond et al., 2000; Holmes et al., 2000). Inventory, vine cutting and road, log deck and skid trail layout generate the highest incremental costs to RIL. These costs are compounded forward from the time they are incurred to the time of harvest. In general, CL operations do not incur these “advance” costs. However, infrastructure costs associated with the construction of roads and log decks are decreased as a consequence of pre-harvest and harvest planning activities (Barreto et al., 1998; Winkler, 1997; Holmes et al., 2000).

Figure 3. Planning and infrastructure costs as a proportion of direct costs for RIL and CL

RIL training costs comprise 1 to 18 percent of total harvest cost for CL and RIL operations. Training costs vary considerably among the studies, though methods of calculation are not uniform, nor are these data reported by all studies. In Barreto et al. (1998), training costs were estimated as an immediate wage increase for RIL- trained personnel. In contrast, Holmes et al. (2000) amortized training costs over five years of logging operations.

Direct costs

RIL direct costs[16] (in US$/m3) ranged from 3 percent lower to 34 percent higher than CL direct costs (Figure 4). Of the three case studies examined, RIL direct costs are lower than CL direct costs only at Fazenda Cauaxi in Paragominas (Holmes et al., 2000). At Cauaxi, pre-harvest and harvest planning activities, and the reduction in felling efficiency due to directional felling, resulted in a RIL incremental cost of $1.33/m3. However, efficiency gains in road construction, log deck construction, skidding and log deck operations resulted in a cost saving of $1.48/m3. Thus, the gain in efficiency more than offset the RIL incremental costs.

In contrast, Winkler (1997) found that direct costs of RIL were 9 percent higher than CL costs. This may be due, in part, to the fact that harvest intensity on the CL plot was more than 2.5 times greater than on the RIL plot, which would likely decrease the per unit direct cost of CL. Also, Winkler (1997), noted that planned changes to the RIL operation would result in RIL costs that are only 1.5 percent higher than CL costs.[17]

Barreto et al. (1998) found that pre-harvest and harvest planning activities increased RIL costs by $1.87/m3. Gains in operational efficiency, particularly the skidding operation, resulted in a cost reduction of $0.24/m3, or a cost recovery of 13 percent of the incremental RIL expenditures. Overall, RIL direct costs were 34 percent higher than CL at Fazenda Agrosete.

Figure 4. Incremental change in direct costs attributable to RIL (US$/m3), computed as (RIL cost - CL cost)/CL cost

Wastewood accounting

At Fazenda Cauaxi, CL operations wasted 4.08m3/ha due to: (1) high stumps, (2) poor felling techniques resulting in split logs, (3) wood wasted in improper bucking, and (4) logs not found by skidding crews. RIL operations wasted 1.32m3/ha for these reasons. In addition, logs left unutilized on the log deck amounted to 1.97m3/ha (0.60m3/ha) for CL (RIL) operations (Holmes et al., 2000). Overall, wasted wood represented 24 percent (8 percent) of the recovered volume at Fazenda Cauaxi by CL (RIL) operations (Holmes et al., 2000).

At Fazenda Agrosete, CL (RIL) operations wasted 8.83m3/ha (0.40m3/ha) in the forest[18]. These amounts represented 26 percent and 1 percent of volumes felled by CL and RIL crews, respectively (Barreto et al., 1998).

At Mil Madeireira Itacoatiara, CL (RIL) operations wasted 2.99m3/ha (1.31m3/ha). These amounts represented 9 percent (4 percent) of volumes extracted by CL and RIL crews, respectively.

When woodwaste is not accounted for, direct costs appear deceptively lower for CL. The Paragominas case studies reported accounting adjustments for costs associated with woodwaste, while Itacoatiara did not. Woodwaste incurs direct costs associated with felling, bucking, skidding and log deck activities and indirect costs[19] by increasing the effective stumpage price (Holmes et al., 2000). It may be expected that waste costs are commonly not accounted for in CL operations, given that inventory and monitoring activities necessary for such accounting are not conducted. Although this asymmetric information effectively biases estimates of returns to logging, the exceptional profitability of logging provides conventional firms the luxury to function inefficiently and to ignore such losses.

PROFITABILITY COMPARISONS

When direct and indirect waste costs are accounted for, RIL net revenues are 18 percent to 35 percent greater than CL net revenues (Figure 5). Relative gains in profitability at Agrosete were due to two factors: (1) a greater amount of wood wasted per hectare was reported, and (2) waste adjustments were computed using stumpage and revenue impacts (Barreto et al., 1998). At Cauaxi, waste adjustments were computed using impacts on direct costs and on effective stumpage price. We can only speculate on the impact that waste accounting would have at Itacoatiara. However, accurate waste accounting clearly increases the competitiveness of RIL relative to CL.

Figure 5. Incremental change in net revenues attributable to RIL (US$/m3) after accounting for waste related losses, computed as (RIL net revenue - CL net revenue)/CL net revenue

Tropical timber harvesting of primary forests is highly profitable. CL in Paragominas demonstrates profit margins of 39 percent to 52 percent and RIL demonstrates profit margins of 46 percent to 63 percent[20]. Although profit margins for RIL exceed CL for the studies reporting such measures, highly profitable CL firms face few incentives to alter their operations unless they face dramatic changes in market signals such as increases in stumpage prices or decreases in product prices. In this sense, logging firms may seek a “satisfactory”, rather than “maximal”, level of profit in initial harvest entries in primary forests.

DISCUSSION AND CONCLUSIONS

RIL appears competitive with or superior to CL in financial returns to initial harvest entries if wood wasted in the harvesting operation is accounted for fully. If stumpage is treated as a “free good”, or if it is under-priced, economic theory states that it will be over-utilized from a social perspective. This appears to be occurring in the areas of the Brazilian Amazon currently experiencing intensive commercial exploitation. Wasted wood incurs direct costs associated with wasted labour and equipment use. However, the major financial impact is related to the increase in effective stumpage price. Stumpage and timber prices are market signals that reflect economic scarcity. Current market signals (or the lack thereof) do not seem to provide incentives to adopt practices that appear immediately more costly. We recommend that a stumpage and timber price reporting series be instituted in the Brazilian Amazon. Such a series would benefit landowners and mill-owners by providing publicly shared information about resource values and trends. We expect that this would facilitate better resource planning and provide incentives for more informed and conservative use of timber resources.

Of major importance is the lack of standardized data that would permit an understanding of functional relationships between forest types, input and output prices, industrial scale and costs and returns. Development of data to facilitate the estimation of cost and profit functions, for the logging and milling industries in the Brazilian Amazon, would facilitate effective planning for industrial development by identifying conditions where the application of RIL operations in new markets would be efficient and competitive with more destructive logging practices.

Although this study reviewed only three case studies, the comparative analysis was hampered by the lack of standard protocols used by each study. We recommend that consideration be given to creation of standard cost accounting categories and methods for data collection. Only if a standard cost accounting system is developed and applied will meaningful broad-scale comparative analyses be possible.

RIL prescriptions define the pattern and intensity of harvesting and the resulting opportunity costs of RIL relative to CL. When RIL is designed to mimic CL harvesting in terms of the harvest level, species, size classes, and spatial distribution, gains in operational efficiency and waste reduction render RIL environmentally and economically superior to CL for initial harvest entries (Barreto et al., 1998; Holmes et al., 2000). However, when RIL is implemented as part of a forest management prescription, in which areas and stems are set aside to maintain productivity and ecosystem integrity, the opportunity costs relative to conventional liquidation harvest of all merchantable stems may be too great for RIL to be competitive. For instance, van der Hout (1999) found the cost and damage savings in spatially restricted harvesting of “clumped” species under CL were superior to those under a RIL prescription requiring spatially distributed, selective harvesting under RIL. Winkler (1997) notes that one-third of the RIL forest area was set aside as preservation forest, while no such measures were applied under CL. The opportunity costs of foregone merchantable timber in reservations likely leads to inferior RIL financial competitiveness relative to unconstrained, liquidation harvest of merchantable stems under CL, despite gains in operational and resource-use efficiency. These were the conclusions of RIL-CL studies in Sabah, Malaysia (Tay, 1999; Pinard et al., 2000), in which RIL was found financially inferior due largely to foregone timber excluded from RIL due to environmental harvesting restrictions. Economic incentives appear to be necessary to promote the adoption of RIL as part of a long-term forest management system.

Tenure security and forestland scarcity determine estimates of efficiency and profitability for loggers and the relative importance of incremental gains in resource- use efficiency that may be derived from RIL implementation. It is expected that important damage mitigation benefits will be derived in future harvest entries, given greater conservation of future crop trees and reduced environmental disturbance under RIL. Tenure security is critical to the inclusion of future harvest returns in management profitability analyses and to expectations of financial benefit for careful management and conservation relative to more destructive practices. Moreover, resource scarcity and harvests constrained to a fixed resource base provide greater relevance for issues of resource use and timber-recovery efficiency. Without land-availability constraints and clear market signals of scarcity, it is unlikely that loggers will be drawn to the marginal increments in resource-use efficiency that may be gained under RIL. In a broader landscape without resource constraints, the opportunity costs of more careful RIL management relative to maximizing turnover and throughput of timber may be too high for conventional firms to change their logging behaviour.

REFERENCES

Barreto, P., Amaral, P., Vidal, E. & Uhl, C. 1998. Costs and benefits of forest management for timber production in eastern Amazônia. Forest Ecology and Management,108: 9-26.

Boscolo, M., Buongiorno, J. & Panayotou, T. 1997. Simulating options for carbon sequestration through improved management of a lowland tropical rainforest. Harvard Institute for International Development, Cambridge, MA.

Boxman, O., de Graaf, N.R., Hendrison, J., Jonkers, W.B.J., Poels, R.L.H., Schmidt, P. & Sang, R.T.L. 1985. Towards sustained timber production from tropical rain forests in Suriname. Netherlands Journal of Agricultural Science, 33:125-132.

Bryant, D., Nielsen, D. & Tangley, L. 1997. The last frontier forests: ecosystems and economies on the edge. World Resources Institute, Washington, DC.

Dykstra, D.P. & Heinrich, R. 1996. FAO Model Code of Forest Harvesting Practice, Food and Agriculture Organization of the United Nations, Rome.

Frumhoff, P.C. & Losos. E.C. 1998. Setting priorities for conserving biological diversity in tropical timber production forests. Union of Concerned Scientists. Center for Tropical Forest Science, Smithsonian Institution, Washington, DC.

Hammond, D.S., van der Hout, P., Zagt, R.J., Marshall, G., Evans J. & Cassells, D.S. 2000. Benefits, bottlenecks and uncertainties in the pantropical implementation of reduced impact logging techniques. International Forestry Review, 2: 45-53.

ITTO. 1996. Annual review and assessment of the world tropical timber situation. International Tropical Timber Organization, Yokohama, Japan. (May 5, 1998).

ITTO. 1999. Annual review and assessment of the world timber situation 1999. Document GI-7/99. International Tropical Timber Organization, Yokohama, Japan. (August 25, 2000).

Jenkins, M.B. & Smith, E.T. 1999. The business of sustainable forestry: strategies for an industry in transition. Island Press, Washington, DC. Johns, J.S., Barreto, P. & Uhl, C. 1996. Logging damage during planned and unplanned logging operations in the eastern Amazon. Forest Ecology and Management, 89: 59-77.

Johnson, N. & Cabarle. B. 1993. Surviving the cut: natural forest management in the humid tropics. World Resources Institute, Washington, DC.

Nepstad, D.C., Veríssimo, A., Alencar, A., Nobre, C., Lima, E., Lefebvre, P., Schlesinger, P., Potter, C., Moutinho, P., Mendoza, E., Cochrane, M. & Brooks, V. 1999. Large-scale impoverishment of Amazonian forests by logging and fire. Nature, 398: 505-508.

Pinard, M.A., Putz, F.E. & Tay, J. 2000. Lessons learned from the implementation of reduced-impact logging in hilly terrain in Sabah, Malaysia. International Forestry Review, 2: 33-39.

Pinard, M.A. & Putz, F.E. 1996. Retaining forest biomass by reducing logging damage. Biotropica, 28: 278-295.

Precious Woods, Ltd. 1997. Management plan for sustained use of the forests of Mil Madeireira Itacoatiara Ltda. Draft version, February 18, 1997. Itacoatiara, Amazonas, Brazil.

Putz, F.E. & Pinard, M.A. 1993. Reduced-impact logging as a carbon-offset method. Conservation Biology, 7: 755-759.

Tay, J. 1999. Economic assessment of reduced impact logging in Sabah, Malaysia. Ph.D. dissertation. University of Wales, Bangor, UK.

Uhl, C., Barreto, P., Veríssimo, A., Vidal, E., Amaral, P., Barros, A.C., Souja, C. Jr., Johns, J. & Gerwing, J. 1997. Natural resource management in the Brazilian Amazon: an integrated research approach. BioScience, 47: 160-168.

Van der Hout, P. 1999. Reduced impact logging in the tropical rain forest of Guyana: ecological, economic, and silvicultural consequences. Tropenbos-Guyana series 6. Tropenbos-Guyana Programme, Georgetown, Guyana.

Varian, H. 1984. Microeconomic analysis. W.W. Norton & Company, New York.

Williams, M. 1989. Americans and their forests: a historical geography. Cambridge University Press, New York.

Winkler, N. 1997. Environmentally sound forest harvesting: testing the applicability of the FAO model code in the Amazon in Brazil. Forest Harvesting Case Study 8. Food and Agriculture Organization of the United Nations, Rome. [15] Two RIL operations were examined, one using a bulldozer for skidding and the other using a rubber-tyre skidder. Directional felling was conducted by both 2-person and 3- person teams. We include costs and productivity for 2-person felling with RIL bulldozer data and for 3-person felling with RIL skidder data. [16] Direct costs include planning, vine cutting, infrastructure development, felling, skidding and log deck operations. We exclude transport from deck to mill as not all studies reported data on this activity. [17] Planned changes include altering crew sizes and equipment used by the felling and skidding crews. [18] Barreto et al. (1998) and Winkler (1997) do not report the amount of timber left unutilized on log decks. [19] Indirect costs include stumpage fees (paid on a per hectare basis), field support, maintenance, overhead and other administrative costs. [20] Profit margins were computed as net revenue/gross revenue. Jenkins and Smith (1999) report that the logging and sawmill industry in Paragominas earned a profit margin of about 33 percent in 1992.

16. Financial and economic analyses of conventional and reduced impact harvesting systems in Sarawak - Aaron Ago Dagang*, Frank Richter**, B. Hahn-Schilling*** and Penguang Manggil****

* Forester, Counterpart to FOMISS Project, Forest Department Sarawak, Tel: ++(60 82) 31 9171, E-mail: [email protected]

** Consulting Forester, Consultant to FOMISS Project, Germany, Tel: ++ (49 5544) 940221, E-mail: [email protected]

*** Chief Technical Advisors to FOMISS Project, GTZ, Germany, Tel: ++(60 82) 44 9446, Fax: ++(60 82) 44 9326, E-mail: [email protected]

**** FOMISS Project Director, Forest Department Sarawak, Tel: ++(60 82) 31 9188, Fax: ++(60 82) 44 5640, E-mail: [email protected]

INTRODUCTION

Timber harvesting with tractors forms the standard extraction method in the mixed hill dipterocarp forests of Sarawak. Due to the frequent occurrence of red-yellow podzolic soils, heavy rainfall and environmentally difficult terrain, conventional logging (CL) with tractors can cause substantial disturbance and damage to soils and forest stands (Nussbaum, 1995; Butaud, 1998). For this reason, during the last few years guidelines on reduced impact logging (RIL) have been developed and implemented in many trial areas of tropical natural forests (Jonathan et al., 1999).

Forest managers who, in principle, support environmentally sound harvesting methods are concerned about the financial implications. They claim that the costs will not be offset by savings, additional revenue or fiscal incentives to enable them to cope with the additional financial burden arising from implementing RIL.

This paper summarizes the results of comparative financial and economic analyses of CL and RIL with tractors for the FOMISS-Samling Pilot Area (FSPA) at Ulu Baram, Sarawak. Incentives to promote RIL are also discussed.

STUDY SETTING Study area

Since January 1998, the FOMISS Project (Forest Department Sarawak and GTZ Cooperation Project) and the private sector (Samling Strategic Corporation Sdn. Bhd.) have implemented a sustainable forest management system (SFMS) in a pilot area. The FSPA is located in the Upper Baram of northeast Sarawak, covering 169 000 ha. The mean annual rainfall ranges from 4 600 mm to 5 000 mm. Sedimentary rocks and a moderately sloping to steep mountainous topography characterize the area. Fifty-six percent of the FSPA exceeds gradients of 25 degrees. The major soil groups are Regosols/Acrisols. Mixed hill dipterocarp forests are the dominant forest type, covering 80 percent of the area. Fifty percent percent of the FSPA comprises primary forests with an average commercial volume of 303 m3/ha. The average stocking of logged-over forests averages 170 m3/ha.

Logging systems

The RIL system tested in the FSPA consists of the following elements (Jonathan et al., 1999):

1. Alignment of skid trails.

2. The skid trail alignment is mapped; the harvestable trees are marked and climbers are cut.

3. A final harvesting map is produced indicating skid trail locations and areas to be excluded from logging.

4. The final harvesting map is verified and cross-checked.

5. The harvesting operation is carried out. A Caterpillar D6 DLS crawler tractor with a winch is used for skid trail and log landing preparation and for log extraction. The tree fellers use Stihl 07 chainsaws and are trained in directional felling. Tractors should not leave the skid trails when extracting logs. All trees felled and extracted are recorded. The complete harvesting operation is monitored.

6. Post-harvesting and damage assessments are carried out.

7. The RIL trial is analysed, including a RIL compliance assessment.

CL is also carried out with crawler tractors. In contrast to RIL, the winch is used only for short-distance log extraction. Breakouts from the main skid trails are the rule. Tree fellers choose the felling direction. Trees are felled in the direction of their natural lean. Under CL, no pre- or post-harvesting operations are conducted.

METHODS

General The study analysed two different time frames.

1. The financial costs and benefits of CL and RIL were calculated for a one-year period of harvesting. Costs and benefits were not discounted.

2. A period of 40 years was taken into account for the financial and economic analyses. Harvesting operations are carried out after a 40- year rotation period in a logged-over forest. To compare costs and benefits streams occurring at different times, discounting was applied.

Cost-benefit analysis was used as follows:

1. The financial analysis was conducted from an enterprise perspective and dealt with actual cash flows. Only traded goods and services were considered and valued by applying market prices.

2. The economic analysis was conducted from society’s perspective. It considered traded and non-traded costs and benefits. Shadow pricing was used to adjust financial costs and benefits to reflect their economic values.

Data sources

The project established 13 RIL trial blocks in the FSPA. Additional data were obtained from RIL trials in the Model Forest Management Area (MFMA) in Sibu. General information on CL was obtained as average data from the entire FSPA. Harvesting costs for six RIL blocks and for five CL blocks were provided by Samling (Samling, 2001). The main source for the evaluation of non-timber forest values was a study by Sander (2000a).

Post-harvest damage assessments were conducted in six RIL blocks and in six CL blocks. Only severely damaged trees were considered for the calculation of tree damage to the residual stand.

For RIL, data on skid trail length was obtained from the harvesting map. A study by Richter (2000) focusing on forest rehabilitation in the FSPA provided information on the proportion of ground area compacted by CL.

The utilization factor was defined as the percentage of the wood volume extracted as commercial timber and measured in the stand in relation to the gross volume of the standing trees. During the harvesting operation, FOMISS field staff measured felled and trimmed logs.

Logging waste occurs when logs are left behind at the log landing, and through second trimmings at the log landing or royalty assessment point. Logging waste was estimated by comparing the commercial log volume measured after the first trimming at the felling site with the official commercial volume, as recorded at the royalty assessment point.

Figures on forest growth of the residual stand were predicted with the dipterocarp forest growth simulation model (DIPSIM). The model is based on permanent growth and yield plots from various locations in Sarawak. Input data was obtained from 275 sample plots distributed within the FSPA. The simulation was carried out for a net production area of 39 103 ha.

The tree volume used for the estimation of biomass (Brown, 1997) was obtained from DIPSIM. Based on figures provided by Brown (1997), an arithmetic mean wood density of 0.57t/m3 was applied. A conversion factor of 0.5 was used to express biomass in terms of carbon (Moura Costa, 1996). Carbon storage per hectare was calculated for five-year intervals. The average of these values was considered for the economic analysis of carbon storage.

Economic indicators and sensitivity analysis

The economic indicators selected were the net present value (NPV) and the benefit-cost ratio (BCR). A sensitivity analysis was carried out to estimate how changes in key technical and economic parameters would alter the economic performance of the two harvesting systems. The following parameters were considered: (1) discount rate, (2) timber price, (3) carbon trading, (4) harvesting costs and (5) harvesting volume.

DATA FOR THE COST-BENEFIT ANALYSIS

General data

A 10 percent discount rate ® was selected, reflecting real interest rates. To simplify the calculation of shadow prices, a standard conversion factor of 1.2 on traded financial prices was applied.

Forest zoning has been used to classify the FSPA area according to ecological, social and managerial criteria. The net production area is derived by deducting from the gross area the areas for protection, community use, permanent infrastructure, rivers and buffer zones (Kleine, 2000). The cost-benefit analysis was carried out for two theoretical blocks with a net production area of 100 ha, representing the average block size within the FSPA.

Experiences with RIL in the FSPA have demonstrated that due to small-scale terrain features, like rock outcrops, some sections of the block cannot be harvested. This results in a reduction of the net production area. The remaining net area where trees can be harvested is defined as net operable area (Kleine, 2000). For the first harvest, the net operable area amounts to 90 ha for CL and to 70 ha for RIL.

The net operable area is reduced further after the first harvest by highly compacted skid trails and log landings. The net operable area for the second harvest under CL was reduced by 13 ha (Butaud, 1998; Richter, 2000), resulting in a net operable area of 77 ha. For the RIL blocks it was calculated that 3.1 percent of the area was subject to compaction. Hence, the net operable area for the 40-year period under RIL amounts to 67 ha. Based on DIPSIM simulation results, the rotation period for CL and RIL was set at 40 years. The results of the damage assessment demonstrated that the percentage of severely damaged trees was 54 percent for CL and 28 percent for RIL.

RIL reduces damage to the residual stand and leads to better quality of the future harvestable stand. In this regard, a quality factor was introduced. Under CL, a quality factor of 50 percent was defined; thus, 50 percent of the volume increment was allocated to trees that are defective or damaged. A quality factor of 65 percent was set for RIL. In the absence of sound scientific data, these values represent professional estimates.

Under RIL, a utilization factor of 80 percent was calculated. The utilization factor under CL amounted to 75 percent. Under CL, the volume of logging waste amounted to 20 percent of the total extracted volume. In RIL, logging waste was assumed to be zero.

Company records indicated that the timber volume extracted between 1994 to 1999 averaged 44.5 m3/ha in CL. A study by Richter (2000) revealed that an additional 20 m3/ha had been extracted, mainly for the construction of bridges and camps. Thus, the overall harvested volume under CL totalled 64.5 m3/ha. The average harvested volume under RIL amounted to 27.8 m3/ha.

The DIPSIM simulation indicated that in the second harvesting operation the timber volume available for extraction would be 23 m3/ha in CL and 85 m3/ha in RIL. The results considered the utilization factor, quality factor and logging waste. However, a maximum harvested volume of 40 m3/ha was defined.

Cost centres for the financial analysis

Harvesting operation costs

Only those aspects of the harvesting operations that are influenced by the introduction of RIL were analysed: (1) training; (2) harvest planning; (3) skid trail preparation, tree felling, log extraction; and (4) post-harvest operations.

The costs amount to RM28/m3 and RM43/m3 for CL and RIL, respectively (Table 1).[21] Costs related to training and damage assessments are introductory costs. These cost centres were not taken into account for the 40-year period. Thus, the overall RIL costs are reduced to RM37/m3.

The average royalty cost, weighted by species share, was RM 37/m3.

Revenues for the financial analysis

Sander (2000b) provided prices for calculating timber revenues. An export quota of 40 percent was considered. A price difference of 17.5 percent between domestic prices and international prices was applied (Sander, 2000a). A 10 percent certification premium was added to the timber prices for RIL. In applying these figures the weighted price per cubic metre comes to RM314.5 (CL) and RM346.0 (RIL).

Based on a study by Sander (2000a) it was determined that 70 percent of the total timber revenues under CL (RM221/m3) is spent on forest operations, provided that costs for harvesting operations and royalties are not considered. It was assumed that, except for harvesting operations and royalties, the operational costs of the two options are identical. Thus, RM221/m3 was subtracted from the weighted timber price, resulting in a profit of RM95 m3 and RM126/m3 for CL and RIL, respectively.

Cost centres for the economic analysis

The economic analysis considers the same components of the harvesting operation as the financial analysis. The percentage of costs of tradable goods relative to the total harvesting costs was estimated for the individual subcentres: (1) training (0 percent); (2) harvest planning (2 percent); (3) harvesting operation (70 percent); and (4) post-harvest operation (2 percent). These cost components were multiplied with the standard conversion factor of 1.2 in order to estimate the economic values of the harvesting operations.

Table 1. Comparative costs for CL and RIL

Cost [RM/m3] No. Operation/cost centre Calculation period One year 40 years CL RIL CL RIL 1 Training 0.00 6.06 0.00 0.00 2 Harvest planning 2.1 Skid trail alignment 0.00 1.87 0.00 1.87 2.2 Mapping of skid trail alignment 0.00 0.06 0.00 0.06 2.3 Marking of harvestable trees 0.50 2.15 0.50 2.15 2.4 Data analysis, digitizing 0.00 0.22 0.00 0.22 2.5 Review of forest harvesting map 0.00 0.08 0.00 0.08 Subtotal 0.50 4.39 0.50 4.39 3 Harvesting operation Skid trail preparation Log landing preparation 3.1 Tree felling 27.44 31.70 27.44 31.70 Winching and skidding Installation of cross drains and sediment traps Subtotal 27.44 31.70 27.44 31.70 4 Post-harvesting operation 4.1 Damage assessment 0.00 0.56 0.00 0.00 4.2 RIL compliance assessment 0.00 0.58 0.00 0.58 Subtotal 0.00 1.13 0.00 0.58 Total 27.94 43.28 27.94 36.67

Explanation:

No. 1 = No training costs were assumed for the second harvest No. 3.1 = No breakdown possible No. 3.6 = Included in 3.1 No. 4.1 = Only realized for the first harvest (introductory costs) Note = Costs include staff, transport, equipment/office supplies, capital costs (skidding only) Costs reflect actual costs; no discounting was applied

Revenues for the economic analysis

The following aspects were analysed: (1) timber; (2) carbon storage; (3) non- timber forest products (NTFP); (4) soil values; (5) recreational values; and (6) biodiversity values.

Timber

The economic value of timber was calculated by multiplying the extracted volume with the average export price, weighted by species share. This results in an average timber price of RM351/m3 for CL and RM387/m3 for RIL (including 10 percent certification supplement). After deducting the overall operational costs, the economic value of timber revenues amounts to RM105/m3 (CL) and RM167/m3 (RIL).

Carbon storage

The current cost of tropical forestry carbon offsets ranges from US$2-10 per ton of carbon, averaging about US$8 (Stuart and Moura Costa, 1998). This average was used for the valuation of carbon storage. The total value of carbon storage per hectare net production area amounts to RM4 522 (CL) and RM4 962 (RIL). The values of carbon stocks were translated into flows by calculating annuities discounted at 10 percent.

NTFPs

The valuation of NTFPs considered a legal decision of the High Court of Johor Baru in 1996, which determined that compensation of RM 1 236/ha had to be paid to local communities for a total loss of land resulting from the construction of a reservoir. In order to account for different economic NTFP values under different forest management options, a percentage-based valuation was applied (Sander, 2000a): (1) non-production areas produce 100 percent of the value (RM1 236/ha); (2) production forest under CL produces 50 percent; and (3) production forest under RIL generates 70 percent of the total value. The annuity was RM6 798 and RM9 764 per block for CL and RIL, respectively.

Soil values Sander (2000a) calculated an annual value of RM104/ha for total watershed protection. To estimate the different soil erosion prevention benefits of CL and RIL, a percentage-based valuation approach was applied. Glauner (2000) considered a management factor (C = conservation practice factor) for erosion modelling. A value of C = 0.001 has been proposed for undisturbed forests (Wischmeier and Smith, 1978). In contrast, a value of C = 1 indicates barren land. CL increases C by a factor of 20 relative to undisturbed forests. Within 10 years, C returns to the original value (Glauner, 2000). RIL increases C by a factor of five and cuts the time of recovery relative to CL by half (Marsh et al., 1996).

Based on these C-values it was assumed that non-production areas provide 100 percent of the maximum soil erosion prevention value (RM104). The percentage is reduced to 5 percent and 20 percent under CL and RIL, respectively. Compacted areas (skid trails and log landings) were rated with 0 percent. By multiplying the respective areas of the management options with these values and by considering the different time frames for recovery, the following total annual soil erosion prevention benefits per hectare of net production area was obtained: (1) CL: years 1-10 = RM14 and years 11-40 = RM90; and (2) RIL: years 1-5 = RM45 and years 6-40 = RM101.

Recreational values

It was assumed that the net operable areas managed under CL have no recreational value. The recreational value of non-production areas was set at RM19 ha/yr (Pearce et al., 1999). By multiplying these values with the respective areas the annual recreational benefits per hectare were RM19 for CL and RM19 for RIL.

Biodiversity values

In adopting the values given by Sander (2000a), an annual biodiversity benefit of RM11.40/ha was assumed for non-production forest areas. Furthermore, it was assumed that under CL, 50 percent of this biodiversity value is maintained in comparison to 70 percent under RIL. Accordingly, the annual economic value of biodiversity per hectare amounts to RM6 for CL and to RM9 for RIL.

RESULTS

Comparison of costs and benefits for CL and RIL - one-year period

The costs of harvesting and royalties per cubic meter are approximately 23 percent higher under RIL relative to CL (Table 2, Scenario 1). If the introductory costs for training and damage assessment are excluded, the difference is reduced to 14 percent (Scenario 2).

The profit was estimated at RM29/m3 and RM45/m3 under CL and RIL, respectively (Scenario 1). If the introductory costs are excluded the profit increases to RM52/m3. The profit is reduced to RM20/m3 (Scenario 3) if the concessionaire does not obtain a certification premium. However, considering the extracted volume, the profit is higher under CL. The profit per hectare of the net production area totals RM1176 for CL and RM883 for RIL (Scenario 1).

Table 2. Cost and revenues for CL and RIL systems in a one-year period

Harvesting system Parameter Scenario 1 Scenario 1 Scenario 2 Scenario 3 [RM/m3] Costs - harvesting and royalties 65 80 74 74 Revenues - timber 94 126 126 94 Total profit 29 45 52 20

Note:

Scenario 1 Harvesting costs under RIL include costs for training and damage assessment; revenues consider a certification premium under RIL and it was assumed that the costs for road construction and maintenance, debarking, scaling grading, transport, inventory, overheads, silvicultural treatment operations etc. were the same under CL and RIL.

Scenario 2 Harvesting costs under RIL do not include costs for training and damage assessment.

Scenario 3 Harvesting costs under RIL do not include costs for training and damage assessment; revenues do not consider a certification premium under RIL.

Financial analysis - 40-year period

The NPV and the BCR indicate that both management options are profitable (Table 3). CL was slightly more profitable and exceeds the NPV of RIL by a factor of 1.3. The BCR for RIL exceeds that of CL by a factor of 1.1. This means that RIL is more robust with regard to cost increases.

In terms of the financial cash flow (Figure 1 and 2), the first harvest was more profitable under CL than under RIL, whereas the financial benefits of the second harvest were higher under RIL. However, the effect of discounting reduces the revenues of the second harvest to a very small amount.

Table 3. Indicators for the financial analysis of CL and RIL systems; discount rate - 10 percent; calculation period - 40 years; production area = 1 ha

NPV (RM) BCR CL RIL CL RIL 1 187 914 1.45 1.57 Note: The IRR cannot be calculated, because the aggregated flow of costs and revenues is never negative over the whole calculation period.

Figure 1. Financial cash flow under the CL system

Figure 2. Financial cash flow under the RIL system

Economic analysis - 40-year period

The economic analysis showed that the RIL system (NPV = RM9 905/ha) provided a higher level of overall benefits and welfare to the society as a whole as opposed to CL (NPV = RM9 100/ha).

Sensitivity analysis

The results of the sensitivity analysis demonstrated that RIL was more profitable than CL if:

1. a discount rate of less than 3 percent is applied; or

2. the harvesting costs are reduced by >30 percent; or

3. the timber price increases by >15 percent; or

4. a minimum of RM30/ha of annual carbon trading payments are generated; or 5. the extraction volume in the first harvesting operation under RIL is increased to >36 m3/ha.

To assess the effects of modifying several factors on the NPV, two realistic scenarios were tested (Table 4).

The results demonstrate that the RIL system is more profitable if the harvesting costs are reduced by 10 percent and that the logging intensity during the first cut is increased by 20 percent. Assuming that the concessionaire receives additional revenues of RM15/ha/yr through carbon trading payments, the NPV under RIL would increase to RM1 340, i.e. a 13 percent increase over the CL system.

Table 4. NPV of the CL and RIL systems, assuming that several elements under RIL are modified - 40-year period

Harvesting system No. Parameter Unit CL RIL Scenario 1 Scenario 2 1 Discount rate [%] - 10 (10) 10 (10) 2 Harvesting costs [%] - -10 -10 3 Certification premium [%] - 10 (10) 10(10) 4 Carbon transfer payments [RM/ha/yr] - 0 (0) 15 (0) 5 Logging intensity of the first harvest [m/ha] - 33.3 (27.8) 33.3 (27.8) NPV [RM/ha] 1 187 1 194 1 340

Explanation:

In brackets = Original values used for the cost-benefit analysis. No. 2 = Minus 10 percent in relation to original harvesting costs used in the cost- benefit analysis.

INCENTIVE SYSTEMS TO PROMOTE THE APPLICATION OF RIL TECHNIQUES

Security of tenure

The development of long-term, legally binding land use planning has been stressed as the most important aspect to promote SFM (De Graaf, 2000). Increased tenure security for timber companies will facilitate contractual arrangements with outsiders and lower the private discount rates (Richards and Moura Costa, 1999). However, the conversion from short-term harvest licences to long-term agreements will not prevent land users from acting in a way that imposes social costs. Hence, the extension of the licence period is a basic prerequisite, but additional incentives are required to encourage the implementation of RIL.

Regulation of royalties The study demonstrated that about 20 percent of the extracted volume is wasted. The logging waste is a consequence of the present royalty assessment procedures. The state levy on harvested timber is only collected far from the felling site in the forest. Any timber that does not arrive at the royalty assessment point is not accounted for. Logs are trimmed excessively and often only the best log grades will reach the assessment point, whereas lower quality timber is left to rot in the forest.

To achieve higher timber utilization efficiency the royalty rate should be determined as close as possible to the felling site. The taxation could be based on the gross standing volume. This method, however, appears to be impractical since the determination of standing stock volumes frequently is biased in measuring the clear bole height. Alternatively, the volume measured immediately after tree felling could serve as a reference for determining the royalty.

Domestic fiscal market-based instruments

Market-based instruments internalize social costs and benefits into private costs and returns. Performance bonds are a type of market-based instrument. Before harvesting is initiated, the entrepreneur deposits a refundable bond into a state government account. If harvesting is executed in accordance with RIL standards, the value of the bond is returned gradually to the concessionaire. Any fines for poor compliance with RIL standards are deducted.

Market instruments based on public goods benefits

The most important market instruments based on public goods benefits are timber certification and carbon trading. The main objective of certification is the establishment of an environmentally discriminating market, which should cause concessionaires to move from timber mining to SFM so they can sell products globally and without restrictions.

Carbon trading has a high potential with regard to the promotion of RIL. It imparts public goods values to the forest. International polluters compensate for these values through transfer payments, and these are internalized by timber concessionaires. The key advantage of trading certified carbon credits lies in the generation of a continuous revenue flow from the first year onwards.

Payment systems

In contrast to the above, innovative financing and internal mechanisms, which are based on national or international schemes, are ‘internal’ incentive systems of timber concessionaires. The payment system for forest workers is a crucial aspect within this context (Sist, 2000).

The implementation of RIL demands skilled, trained and responsible harvesting teams. In addition, a modified payment system is desirable to provide an adequate incentive for the achievement of the RIL objectives. A simple piecemeal rate is not suitable (Sist, 2000). Instead, a performance-based remuneration system is required that takes into account the quality of work and rewards forest workers for high-quality work. Experiences during RIL trials indicate that a pure time-based work rate does not provide an adequate incentive to efficient work.

Considering these aspects, a payment system (Figure 2) is proposed that is composed of three elements: (1) a fixed monthly salary, (2) a piecemeal bonus and (3) a quality dependent reward. The quality of work is controlled through a RIL compliance assessment that applies a simple point ranking system. In case points (2) and (3) are satisfactorily achieved, the total monthly salary will be higher than the average monthly income under CL.

Figure 2. Payment system for harvesting crews under a CL system and a modified payment system for harvesting crews under a RIL system

Explanation: Compliance classes: (a) full compliance, (b) good compliance, (c) satisfactory compliance, (d) poor compliance, (e) non- compliance

CONCLUSIONS AND RECOMMENDATIONS

The high extraction volume of the first harvest under CL strongly influences the results of the cost-benefit analysis for the 40-year period. Disregarding the negative environmental and social costs associated with CL, this system is financially more profitable than the RIL system, especially because of the effects of discounting, which reduce the higher RIL revenues of the second cut to a very small value.

The high logging intensity and careless extraction methods under CL result in an excessive number (54 percent) of severely damaged trees in the residual stand. In addition, the productive forest area is reduced by 13 percent due to unplanned skid trail and log landing construction.

Growth simulations indicate that both factors diminish the overall value of the forest resource. Forty years after the initial harvest the gross commercial volume of conventionally logged stands amounts to 196 m3/ha. This is in a sharp contrast to a commercial gross stocking of 303 m3/ha in primary forest stands.

The introduction of RIL reduces the damage to the residual stand to 28 percent due to improved logging practices and a lower harvesting intensity, which leads to an increased quality of the future harvestable stand. The area loss due to skid trail construction was lowered to 4 percent. Improved felling and trimming and, even more important, the reduction of logging waste accelerates the recovery of the logged-over forest. DIPSIM simulations support the sustainability of RIL. Forty years after the initial harvest, the gross commercial volume of stands that were logged with an environmentally sound harvesting method amounts to 317 m3/ha.

Post-harvesting assessments of stand conditions under RIL indicate that the benefits for silviculture and biodiversity conservation are potentially significant. This is supported by the economic analysis that considers timber and NTFP values, recreational values, soil conservation values, carbon stocks and biodiversity values. The analysis demonstrates that the introduction of RIL increases the overall value of the forest resource.

However, from the perspective of a timber concessionaire, CL is presently more profitable.

Nevertheless, reduced harvesting costs due to advanced experiences with RIL will contribute to a higher profitability of improved harvesting. However, as indicated by the sensitivity analysis, a reduction of 30 percent in harvesting costs would be required to make RIL more profitable than CL. Such a substantial decrease appears to be unrealistic.

The sensitivity analysis also indicates that a slight reduction of the harvesting costs and a simultaneous 20 percent higher harvesting intensity in the first cut is sufficient to make the RIL system more profitable than the CL system. Heavy cuts, however, would compromise the benefits of RIL seriously (Sist and Bertault, 1998), and harvesting intensity should be increased only after careful assessment of the consequences.

In addition, incentive systems, such as certification premiums or carbon trading payments can also help to facilitate the introduction of RIL.

To increase the profitability of RIL, it is recommended to increase the harvesting intensity of the initial harvest. Damage assessments should be carried out to control the effects of higher extraction volumes. CL and RIL still use the same piecemeal-dependent payment system. It is recommended to modify the piece- work-dependent salary system. A payment system is required that takes into account the quality of work and rewards workers for good practices.

REFERENCES

Brown, S. 1997. Estimating biomass and biomass change of tropical forests. FAO Forestry Paper 134. Food and Agriculture Organization of the United Nations. Rome, Italy.

Butaud, J.F. 1998. Damage assessment of hill dipterocarp forests subject to reduced impact logging guidelines. Junior professional report no. 10. Malaysian- German Technical Cooperation Project. Forest Department Sarawak and Forest Management Information System Sarawak (FOMISS): Kuching, Malaysia.

De Graaf, N.R. 2000. Reduced impact logging as part of the domestication of neotropical rainforest. International Forestry Review, 2 (1): 40-44.

Glauner, R. 2000. The role of soil-and-site science in management planning in managed natural forests. An example from Sabah, Malaysia. Mitteilungen der Bundesforschungsanstalt für Forst- und Holzwirtschaft no. 197. Komissionsverlag Max Wiedebusch: Hamburg, Germany.

Jonathan, R., Rani, A. & Hahn-Schilling, B. 1999. Reduced impact logging trial in the FOMISS-Samling Pilot Area. RIL - Phase II. Implementation guideline. Misc. report no. 22. Malaysian-German Technical Cooperation Project. Forest Department Sarawak and Forest Management Information System Sarawak (FOMISS): Kuching, Malaysia.

Kleine, M. 2000. Annual allowable cut (AAC) determination. Draft technical paper. Malaysian-German Technical Cooperation Project. Forest Department Sarawak and Forest Management Information System Sarawak (FOMISS): Kuching, Malaysia.

Marsh, C.W., Pinard, M.A., Putz, F.E., Tay, J. & Sullivan 1996. Reduced impact logging: a pilot project in Sabah, Malaysia. In: Schulte, A. & Schöne, D. (eds.): Dipterocarp forest ecosystems. World Scientific: Singapore: 293-307.

Moura Costa, P. 1996. Tropical forestry practices for carbon sequestration. In: Schulte, A. & Schöne, D. (eds.): Dipterocarp forest ecosystems. World Scientific: Singapore: 308-334.

Nussbaum, R.E. 1995. The effects of selective logging of tropical rainforest on soil properties, and implications for forest recovery in Sabah, Malaysia. Thesis. Faculty of Science. University of Exeter: Exeter, UK.

Pearce, D., Putz, F. & Vanclay, J.K. 1999. A sustainable forest future. Centre for Social and Economic Research of the Global Environment (CSERGE) Working Paper GEC 99-15. Center for Social and Economic Research on the Global Environment, University of East Anglia, Norwich.

Richards, M. & Moura Costa, P. 1999. Can tropical forestry be made profitable by “internalising the externalities”? Natural resource perspectives no. 46. Overseas Development Institute: London.

Richter, F. 2000. Silvicultural Decision Support System for the treatment of harvested natural forests based on the interpretation of aerial photos. Consultancy report no. 48 Malaysian-German Technical Cooperation Project. Forest Department Sarawak and Forest Management Information System Sarawak (FOMISS): Kuching, Malaysia.

Samling. 2001. Cost comparison between conventional logging and RIL. Unpublished data.

Sander, K. 2000a. Financial and economic analysis of forest management systems at FOMISS-Samling Pilot Area (FSPA). Consultancy report no. 52. Malaysian-German Technical Cooperation Project. Forest Department of Sarawak and Forest Management Information System Sarawak (FOMISS): Kuching, Malaysia.

Sander, K. 2000b Market analysis for exports of logs and selected timber products from Sarawak, Malaysia. Annex to: Financial and economic analysis of forest management systems at FOMISS-Samling Pilot Area (FSPA). Consultancy report. Draft 1. Malaysian-German Technical Cooperation Project. Forest Department Sarawak and Forest Management Information System Sarawak (FOMISS): Kuching, Malaysia. Sist, P. 2000. Reduced impact logging in the tropics: objectives, principles and impact research. International Forestry Review, 2(1): 3-10.

Sist, P. & Bertault, J.-G. 1998. Reduced impact logging experiments: impact of harvesting intensities and logging techniques on stand damage. In: Bertault, J.-G. & Kadir, K. (eds.): Silviculture research in a lowland dipterocarp forest of East Kalimantan. The contribution of STREK project. CIRAD-forêt, FORDA & P.T. Inhutani I: Montpellier, France: pp. 139-160.

Stuart, M.D. & Moura Costa, P. 1998 Climate change mitigation by forestry: a review of international initiatives. Policy that works for forests and people series no. 8. Discussion paper. International Institute for Environment and Development: London, UK.

Wischmeier, W.H. & Smith, D.D. 1978 Predicting rainfall erosion losses - A guide to conservation planning. US Department of Agriculture. Agriculture Handbook no. 537. US Government Printing Office: Washington, DC.

[21] US$ 1.00 = 3.8 ringgit

17. Financial costs of reduced impact timber harvesting in Indonesia: case study comparisons - Grahame B. Applegate*

* Forest Scientist, Center for International Forestry Research (CIFOR), Jl. CIFOR, Situ Gede, Sindang Barang, Bogor Barat 16680, Indonesia, Tel. +62 (251) 622 622. Fax +62 (251) 622 100, E-mail: [email protected]

INTRODUCTION

Indonesia is harvesting large areas of its production forests using ground-based tractor logging techniques, primarily to provide raw material for its plywood industry. In 1999, the industry estimated that it required 1.6 million ha of forest annually for Indonesia to produce about 8 million m3 of plywood, most of which is exported and worth about US$ 2.7 billion. The Chairman of the Indonesian Plywood Producers Association, Mr Abbas Adhar, was reported to have said that the value of plywood exports for 2000 would be similar to that of 1999 (Jakarta Post, 2000).

The negative impact of large-scale, poorly-applied, and tractor-based logging practices on residual tropical forests has been well documented since the late 1950s (Fox, 1968; Gilmour, 1967; Nicholson, 1958; Nicholson, 1979; Gullison and Hardner, 1993; Jonkers, 1987). Efforts to improve logging practices and the associated benefits have been well publicized for a number of years (ITTO, 1992; Andrewartha et al., 1998; Applegate et al., 1994; Applegate and Andrewartha, 1999; Aulerich, 1994; Bertault and Sist, 1995; Putz, 1994; Pinard et al., 1995; Putz et al., 2000b). Various studies suggest that the damage to the residual stand can be reduced by as much as 50 percent through the implementation of reduced impact logging (RIL) practices, but some would argue such benefits come at considerable cost (Elias, 1998; Applegate et al., 1994; Pinard and Putz, 1996; Pinard, 1995). Most technical aspects of RIL are well known and are contained in many documents readily available worldwide (Poore et al., 1998; FAO, 1999; Caulfield, 1982; Cassells and Bonnell, 1984; Applegate et al., 1994; Applegate and Andrewartha, 1999; Commission, 1994; Vanuatu Department of Forests, 1997; Dykstra and Heinrich, 1996). Stakeholders are now turning their attention to the costs of implementing RIL to determine under what conditions costs differ among locations and if any cost saving is possible with RIL compared to conventional logging (CL). The interactions, causal influences and cost implications of the various RIL components, and the beneficiaries of RIL are also important in providing solutions to the impediments to adopting improved forest practices (Hammond et al., 2000; Putz et al., 2000b).

Several Indonesian plywood industry companies involved in logging are beginning to adopt improved harvesting practices, particularly those components where there are perceived savings in skidding-related costs (APHI, 2000; Prayudi, 2000). In Indonesia, a number of organizations and individuals have undertaken analyses of the costs and impacts of implementing selected RIL components (Bertault and Sist, 1997; Elias, 1996; Sist and Bertault, 1998). These analyses include cost estimates of the impact of RIL compared with CL. This work has been undertaken in an attempt to provide support for the adoption of the various RIL components. While there is a general consensus on the benefits of RIL to the forest environment (and possibly logging companies) compared to CL (Bertault and Sist, 1997; Sist and Bertault, 1998; Sist et al., 1998; Elias, 1996), there is considerable disparity in the estimates of the financial costs of RIL in comparison to CL in Indonesia (Elias, 2000; Hariyatno et al., 2000; Karsenty, 1998; Matikainen and Herika, 2000; Ruslim et al., 2000; Sist and Bertault, 1998).

This paper summarizes the results from four case studies of harvesting operations undertaken in the closed forests of East Kalimantan in Indonesia where selected components of RIL have been implemented.

LOCATION AND METHODOLOGY

The four case studies were conducted in similar dipterocarp-dominated lowland and hilly forests in East Kalimantan, Indonesia (Figure 1). The studies were undertaken in Berau (Site A) (Matikainen and Herika, 2000); Kutai Induk (near Kutai National Park), (Site B) (Ruslim et al., 2000a); PT Sumalindo Lestari Jaya IV concession (Site C) (Elias, 1998; Elias, 2000); and the Center for International Forest Research (CIFOR) Bulungan Research Forest, Malinau District, (Site D) (Hariyatno et al., 2000). The analysis compared the costs of the components measured in the four studies.

Similarities of case studies

International donors and the private sector funded the studies conducted from 1996 to June 2000. The studies had many similarities including:

● similar forest types, elevation and topography;

● conducting harvesting in accordance with the FAO Model Code of Forest Harvesting Practice;

● tree selection in accordance with the Indonesian Selective Logging and Replanting System (TPTI); and

● log extraction using conventional ground-based skidding machinery (200 HP tractors). Most of the studies used machinery manufacturer’s recommendations for the machine costs, thus minimizing some of the variation due to sampling error in cost estimates among studies.

The selected RIL studies had the felling compartments outlined in the harvesting plans, which were based on accurate topographic maps of between 1:2 000-5 000 scale, with contour intervals of between 5 and 10 m. The harvesting plans identified planned skid trails and landings and individual tree locations. The trees were felled using directional felling techniques, with some operations marking “potential crop trees”[22]. All RIL operations involved some training prior to commencement.

Most CL activities on the sites used for the case studies did not have adequate maps for implementing harvesting activities. There was no planning of skid trails, and directional felling techniques were not employed.

Plot size varied (1-100 ha) and only one study attempted to quantify error limits on cost estimates and reported on selected pre-harvesting RIL activities, training and supervision costs (Hariyatno et al., 2000).

Figure 1. Location of case study sites in East Kalimantan, Indonesia

Differences among case studies

There was a large variation in the measured components of RIL, with one study concentrating only on skidding costs. Many apparent inconsistencies exist among case studies in estimating costs. Hence, the comparisons of the component costs should be viewed with caution and with a full understanding of the activities and how unit costs were estimated[23].

Costing details of the case studies

Most of the case studies concentrated on the cost estimates of two aspects, namely felling and skidding (and associated activities). The following list summarizes the key aspects of each study:

● Site A - costing of skidding and skidding-related activities for RIL and CL.

● Site B - costing of selected pre-harvest planning activities, felling, skidding and related activities for RIL and CL.

● Site C - costing of selected felling, skidding and related activities for RIL and CL.

● Site D - costing of selected pre-harvest planning activities, felling, skidding (and related activities), training, and supervision for RIL. No training or supervision costs were estimated for CL. The research undertaken on this site estimated error limits on the mean-cost estimates for the activities analysed. Cost estimates of selected RIL activities

The reports from the four case studies indicate that RIL produced the desired outcome (i.e. a reduction in the damage caused to the residual stand by the logging operations, estimated to be close to 50 percent) (Pinard, 1995). However, the results from the cost analyses are inconsistent (Table 1).

Site A

The cost of skidding using RIL techniques was Rp 50 million lower than CL over a 100-ha gross area (i.e. a reduction of 33 percent) (Matikainen and Herika, 2000). The cost of skidding was much lower under RIL (Rp 34 200/m3and Rp 51 300/m3 respectively) than under CL, with the cost of skid trail construction under CL estimated to be 2.8 times higher than in RIL (Table 1). The running time for a tractor (tractor running hours[24] cost approximately Rp 400 000) is a major cost component (Matikainen and Herika, 2000). In this study, the skidding costs accounted for the time taken for skid trail construction.

The lower costs of skidding under RIL are attributable to reduced tractor running time, due to fewer unproductive delays (unnecessary, costly and poorly constructed skid trails and downtime when the tractor operator sought suitable skid trail locations); this is a result of better planning.

The methodology used in the cost estimates takes account of the actual machine cost (i.e. whenever the machine is operating, pulling logs, idling, or moving soil for skid trail construction, it incurs a cost that is reflected in the cost of delivering one cubic meter of log to a specified location).

The study also analysed the costs of RIL using different machines, including a combination of tractor and rubber-wheeled skidders. The use of the two machines in combination resulted in a saving of Rp 20 000/m3 compared to tractor logging (Matikainen and Herika, 2000).

Site B

Data in this study are based on a logging team working for a month and covering an area of approximately 30 ha with measurement plots of 1 ha. Only a selection of activities involved in the pre-harvest component were costed. These included inventory, map preparation, skid trail planning and marking in the field. The findings from this site indicated that pre-harvest operations cost Rp 943/m3 and Rp 2 282/m3 for CL and RIL, respectively.

Felling costs in the analysis included all costs, but in the cost tables of the report, the felling costs (Rp 2 212/m3) for both RIL and CL are equal (Ruslim et al., 2000). Skidding under RIL reduced productivity by 15 percent compared to CL. However, the costs of the RIL felling and skidding components were Rp 2 813/m3 more expensive than under CL (Table 1).

The costs for the various activities are based on measurements of time taken for specified activities (Ruslim et al., 2000). There appears to be no account of non-productive machine time and stoppages and the effect this has on production costs. Winching was included in the skidding operations when the skidding costs were estimated. For the components and activities costed, the study found that RIL was more expensive than CL by Rp 4 152/m3.

Site C

In this study, pre-harvest operations were undertaken, but their costs were not reported (Elias, 1996; 2000). The study reported very low felling costs compared to the other case studies (Rp 1 141/m3 and Rp 1 080/m3 respectively for CL and RIL) (Table 1). This may be a result of the methodology used to estimate costs. The costs were calculated by using the volume produced divided by the time taken to fell a tree. Hence, it is apparent that the estimates may not include the full cost (i.e. transport for fellers and assistants).

The cost of skidding was also low compared to the other case studies, in part because of the low rates used for machine running costs. The cost of skidding under RIL was slightly more expensive than for CL (Rp 10 728/m3 and Rp 10 972/m3, respectively). In determining the cost of skidding, no allowance was made for the cost of the machine time when not skidding logs. This results from the methodology used, where productivity was based only on the time taken for a round trip from stump to log landing. It is apparent that skid trail construction may be included in the estimates for RIL but not for CL operations.

Site D

This study reported some estimates of pre-harvesting activities. The study compared the pre-harvesting costs of RIL and CL and found that there was only a small increase in costs for RIL (Rp 217/m3). The report indicates a 28 percent and 25 percent increase in productivity for felling and skidding respectively under RIL compared with CL. Felling costs were reported as being the same for RIL and CL (Rp 1 500/m3).

Skid trails and landings were reduced in area by 54 percent and 18 percent, respectively, under RIL. Therefore, a large savings in machine operating time compared with CL could be expected. Skidding costs were also low compared to other studies. The operating costs of the machines used in the calculations were about 30 percent lower than for similar machines in other studies. The costs of skidding in CL and RIL were Rp 22 310/m3 and Rp 16 165/m3, respectively. For the components analysed, the costs of RIL and CL were Rp 22 800/m3 and Rp 26 035/m3, respectively (including pre- harvest planning, felling, skidding and training). The study found that there was a direct financial benefit from the reduction in logging waste under RIL with an estimated added value of Rp 23 235/m3 (Hariyatno et al., 2000).

Impacts of methodology and parameters on cost estimates

While many operators are aware of the technical components of RIL, it is apparent from the review of the studies that the methods for estimating costs are poorly understood. The methods applied and basic assumptions in estimating costs are also very diverse, and provide quite divergent results, even for something as basic as estimating the full cost of skidding one cubic meter of wood to a log ramp.

A major issue regarding the cost estimates for harvesting operations conducted to date in Indonesia is the limited components and activities analysed. In one case study (Site A), only skidding costs were analysed and reported. This is symptomatic of most studies and is a major weakness, especially if the information is intended to identify the full cost of RIL with a view to looking at financial benefits and possible adoption of these improved practices by industry. In many cases, some components were only partially recognized as being part of RIL, but the activities within the components were not fully costed, thus leading to underestimates. In most studies, the rates for machine operating costs have been underestimated and therefore are not a true reflection of actual harvesting costs.

The methods adopted by the studies do not enable investigating the interactions and relationships among different RIL components and activities and taking cost implications into account (e.g. influence of roads). Road design, location, density, construction and maintenance standards influence harvesting costs considerably (Burgess, 1971; Gullison and Hardner, 1993). In a number of cases, researchers have based the cost estimates on productivity and have only measured time to undertake a task as the basis of the costs. This artificial approach inadequately accounts for the size of the harvest area (net or gross), machine operating costs (fixed and variable), opportunity cost of capital, repairs and maintenance, depreciation, non-productive time, occupational health and safety, training, log segregation and processing, and associated travel costs.

Table 1. Financial cost estimates from four logging studies in East Kalimantan, Indonesia

Site SITE A SITE B SITE C SITE D Characteristics Conventional Reduced Conventional Reduced Conventional Reduced Conventional Reduced Harvesting Impact Harvesting Impact Harvesting Impact Harvesting Impact Harvesting Harvesting Harvesting Harvesting Min. cutting limit 50 cm dbh 50 cm dbh 50 cm dbh 50 cm dbh 50 cm dbh 50 cm dbh 50 cm dbh 50 cm dbh Ground-based Komatsu D85E -SS and Komatsu D85E -SS and Komatsu D85E -SS and Caterpillar Caterpillar skidding Caterpillar 525 Wheel Caterpillar D7G Caterpillar D7G D7G 527 machines skidder Plot size (ha) 100 2 x 100 3 x 1 2 x 1 10 x 1 10 x 1 244 138 ha No. of trees - - 12 trees/ha 11 trees/ha - - 5.9 trees/ha 6.9 harvested (net trees/ha area) Volume - - 67.2 m3/ha 62.7 m3/ha - - 52.8 m3/ha 60.9 m3/ha harvested (net area) Costs (Rp/m3) Based on Based on Based on 30 Based on 30 Based on Based on Based on Based on gross area gross area ha/month/team ha/month/team gross area gross area gross area gross area Pre harvest - - 943 2 282 - - 2 225 2 442 planning Vine cutting ------1 018 Felling - - 2 132 2 132 1 141 1 080 1 500 1 500 Skidding to 51 300 34 200 23210 26 023 10 728 10 972 22 310 16 165 landing Supervision ------438 846 Training ------1 678

Note: 50 cm diameter breast height (dbh) is based on Ministry of Forestry of Indonesia, silvicultural harvesting guidelines for production forests.

Another vital issue relates to the perspective from which the costs are determined. Many studies undertaken to date in Indonesia are ambiguous on this point. Are the costs determined from the operator’s perspective, the concessionaire’s, the forest owner’s or that of the Government of Indonesia? If these parameters are not identified clearly, cost estimates for RIL will remain misleading.

In the case studies where felling costs for RIL and CL are similar, it appears that there are no cost savings for (i) marking trees for directional felling; (ii) training on efficient felling techniques (potential saving on reduced medical costs due to higher skill levels); or (iii) skid trails marked and/or constructed, thus making it easier and quicker for the feller to locate trees. The estimates for felling on Site D appear to be determined artificially, as felling stopped when the daily quota of 100 m3 was reached. The inadequacies of such approaches make comparisons of felling costs among studies impossible. Another fundamental problem with the current methods is the lack of allowance for identifying where costs would change if different methods or procedures for harvesting timber were adopted. The cost estimates for skidding in the case studies do not enable determination of whether it is more efficient to construct skid trails before or after felling. Therefore, it is not possible to understand the interrelationships of the various activities and how they influence costs.

Logging waste and unrecovered logs are other examples of major additional costs. More efficient felling, associated techniques and skidding could be solutions (Hariyatno et al., 2000). The problem has been solved elsewhere, with minimized waste and maximized revenue when the logs are sold at the stump and not on the landing as practised in many countries (Alan Davis, pers. comm). This approach may reduce the cost of waste and supervision, and allow for an improved, more equitable basis for paying fellers and skidders, often cited as essential to facilitate the adoption of improved harvesting practices in Asia (Hahn-Schilling, pers. comm.).

Impacts of harvesting operations on costs

The major impact on these research results was the selective nature of the activities and components included in the cost calculation. The observed inconsistencies and differences do not allow for comprehensive and meaningful comparisons.

While it is recognized that there are tremendous logistical and resource issues involved in obtaining estimates of impact and analysing harvesting costs on a meaningful operational scale, the small number of components and activities and inconsistencies between similar activities in the studies highlight the problems of comparing costs. The problem is not only related to comparisons of RIL and CL, but also to other activities across the sites where the methods and systems used for basic harvesting activities are also similar.

Systems dynamics approach to determining harvesting costs

The results of the case studies indicate the following:

● difficulties in determining harvesting costs by component and activity that reflect the reality of commercial operations;

● inadequate provision of realistic cost estimates; and

● the need to understand the cost implications of the interrelationships among harvesting components.

The problems are not specific to Indonesia. They are not only related to the methods used, but also to the scale of the operation measured (plot size), assumptions used and the difficulties of obtaining accurate data on harvesting costs. The issues of scale, method and selectivity of components and the difficulties involved in capturing the interrelationships among components are common to many studies (Putz et al., 2000a; Karsenty, 2000; Tay, 1999). There are also ecological-economic linkages involved that are not possible to capture with this conventional approach to cost estimates.

The conventional approach to estimating RIL costs is data intensive. While the analyses undertaken in some countries such as Brazil (Holmes et al., 1999; Barretto et al., 1998) may have yielded very accurate and precise statistical relationships on component costs, causal relationships have not been identified during the process and neither have the impacts of these relationships on costs been determined.

A different approach that takes account of the causal relationships among the different cost variables and places less emphasis on the development of real cost data in a linear manner, may provide the answers for a more informed basis for promoting the implementation of improved harvesting practices.

A systems dynamics approach to analysing RIL costs, which is better suited to developing hypotheses than testing hypotheses may provide a solution to overcoming some deficiencies with the conventional approach to costing operations. Such an approach is useful in identifying different scenarios and addressing interrelationships among components and activities. It may provide estimates that are more operationally based. It assists in providing relevant information to forest managers and reviews incentives and disincentives for RIL. It will also provide information for decision-makers on relative benefits far beyond the range of currently available cost data.

An empirical systems model using standard computer software, STELLA[25], is a potential management software tool that can be used to model and track the causal relationships among different cost and production variables and their flows (feedback and interactions). The process of developing a systems model is intuitive and provides a useful technique for building consensus amongst stakeholders (industry, researchers, and operators) on harvesting system functions and ecological-economic relationships. Involving discussion and consensus among stakeholders during the model building process is important, as it assists with developing sound partnerships essential to providing critical reviews and to furthering our understanding of the complexity of logging operations.

At a recent international workshop, one such approach to systems dynamics modelling of RIL was undertaken. Based on their personal experiences, participants from a number of countries discussed and identified the important variables and assembled them using a systems thinking approach. The process began with scoping a model using STELLA and identifying the various components and major output (stocks) flows, converters and connectors, activities and basic relationships of RIL. A small STELLA model was developed, which assisted in bringing a formal approach to the various mental models of RIL. Figure 2 provides an example of the STELLA diagram depicting a systems approach to the post- harvesting operations involving the following activities: road and skid trail closures, camp and workshop cleanup, protection, road maintenance, monitoring and evaluation and post-harvest report. At this stage, the costs for the various parts of the model are incomplete and only the system and linkages have been developed. The work is to be continued to develop an operating model for different physical, institutional and economic conditions.

RECOMMENDATIONS

Most logging operations in tropical forests cause damage to soils, increase sedimentation rates in watercourses and damage potential future crop trees. During the past decade, information has been produced about best practices and their benefits, in an ongoing effort to improve logging. Unfortunately, adoption of these techniques has been limited. In recent years, a number of projects have been implemented to test, demonstrate and measure the benefits of improved practices, compared to conventional logging. Research results indicate that applying RIL can, in some cases, increase efficiencies and reduce costs of some operational harvesting components. It can also help to reduce logging waste and safeguard future harvests and the environment. However, RIL can also result in either direct costs or opportunity costs associated with foregone timber yields) to timber producers (see also Tay et al., in this volume). The costs represent a significant impediment to the adoption of RIL practices. However, the damage resulting from poor logging practices can have long-term negative impacts on the potential of forests to provide sustained yields of timber, non-timber forest products and environmental services.

A better understanding of the costs and benefits of specific RIL components is required. The environmental impacts of logging need to be known and it needs to be clarified from whose perspective (the logger, the concessionaire, the local community, the global community, etc.) costs are assessed to reveal the impediments to the adoption of RIL.

Figure 2. An empirical model using STELLA showing the causal relationships among variables of post- harvesting activities

To assist with increased adoption of improved harvesting practices, it is recommended to:

● gain support and partners to develop a better understanding of the costs and benefits of improved harvesting practices and/or poor practices. This information would provide a foundation for designing strategies to overcome impediments to adoption of better logging practices, and provide the necessary financial and economic data to guide the development of incentive systems for the adoption of these practices; and

● explore the use of a systems dynamics approach involving forestry-sector stakeholders to determine the costs and benefits of improved logging practices. This approach can assist in identifying the key variables and interrelationships of such practices, all of which will provide a foundation for policy and management changes to increase the adoption rate of improved logging methods in tropical forests. REFERENCES

Andrewartha, R. K., Raymond, D., Applegate, G. B. & Wood, D. 1998. Training of trainers in codes of practice for forest harvesting, silvicultural prescriptions and reduced impact logging guidelines: outputs and lessons learnt in the Pacific. In Pacific Heads of Forestry Meeting, Suva, Fiji.

APHI. 2000. Industri pengolahan kayu sarat hutang ditutup. Hutan Indonesia, 10: 7.

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Applegate, G.B., Kent, G.A. & Davis, A.G. 1994. Reduced impact logging guidelines. Sabah. Margules Groome Poyry Consulting Pty Ltd, Canberra.

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[22] Potential crop trees are those trees marked, according to certain criteria, to be protected from felling and skidding damage as they form part of the stock for the following cutting cycles. [23] Exchange rate (January 2001) US$1 = Rp 9,400. [24] The cost of tractor-running hours is a function of fixed costs and variable costs. In many calculations, only variable costs are included; hence actual logging costs are higher than those calculated. [25] STELLA modeling software is available from High Performance Systems Inc. Hanover, New Hampshire at http://www.hps- inc.com/.

18. The financial benefits of reduced impact logging: saving costs and the forest A case study from Labanan, East Kalimantan - Muhandis Natadiwirya* and Martti Matikainen**

* PT. INHUTANI 1, Manggala Wanabakti Block 7 Floor 12, Senayan, Jakarta 10270, INDONESIA, Tel: ++(62 21) 573 1765, Fax: ++(62 21) 573 4335, E- mail: [email protected]

** Martti Matikainen, Forest Management Specialist, Berau Forest Management Project, Kompleks PT. Inhutani I Adm. Berau, Sei Bedungun, Tanjung Redeb, Kalimantan Timur 77134, Indonesia, Tel/Fax: ++(62 554) 2 1769

INTRODUCTION

Conventional logging (CL) systems in tropical rain forests do not fulfil the objective of sustainable forest management. Under CL in Indonesia only a small percentage of the great variety and sizes of trees are harvested, but the damage to residual trees and the environment is disproportionate. This is recognized as wasteful and to improve overall performance the Indonesian government and industry are developing improved practices.

The Berau Forest Management Project (BFMP) is introducing a reduced impact logging (RIL) method in a forest concession owned and managed by P.T. Inhutani I. The project site is located in the Berau Regency in the province of East Kalimantan, Indonesia. The BFMP is a European Union co-funded project implementing a replicable model of sustainable forest management at an operational scale within the Labanan concession.

P.T. Inhutani I is an Indonesian state forest enterprise managing forest concessions located in several regencies in East Kalimantan and covering a total forest area of 1.1 million ha. Some 450 000 ha of these forests are located in the Berau Regency. Labanan, a concession of about 95 000 ha, is one of four management units in Berau, producing about 45 000 m3 of logs annually. The Indonesian selective cutting and planting system, called Tebang Pilih Tanam Indonesia (TPTI), includes a series of operations: forest gazetting, pre-harvest inventory, road construction, harvesting, post-harvest inventory, refining, liberation cutting, enrichment planting and thinning. Road alignment is done during the pre-harvest inventory. No work on skidding track alignment is done. As skidding is the major destructive operation during the harvest, it is important to correct this. Minimizing the length of skid trails reduces damage to the residual stand. This paper focuses on efforts to improve the accuracy of pre-harvest inventories and produce detailed tree- position and contour maps for efficient skid trail alignment. Particular emphasis is given to the financial results of a comparison of skidding under CL and RIL methods. The results of the full study, including a detailed comparison of physical inputs, outputs and performance, can be accessed through the BFMP web site (http:\\www.bfmp.org.id) or by reference to the P.T. Inhutani I or BFMP offices.

METHODOLOGY

Logging treatments

Three logging methods were studied at an operational scale, covering 237 trips extracting 1 500 m3 of timber from three compartments (A, B and C). Compartment A was logged using a bulldozer and RIL techniques. Compartment B used RIL techniques and a combination of a bulldozer and a wheeled skidder. Compartment C was logged using conventional bulldozer techniques (Table 1). The bulldozer was a Komatsu D85ESS-2 (215 HP/1950 RPM, 20 950 kg operating weight), the wheeled skidder a was CAT 525 (175 HP/2200 RPM, 13 290 kg operating weight). The basic difference between the methods was in the planning of the operations. In the RIL plots, pre- harvest inventory and slope data were collected with a high degree of accuracy and used to produce high quality tree- position and contour maps with SIPTOP software developed by BFMP (See Figures 1a and 1b). A topographic map with a scale of 1: 2 000 was used to plan and monitor harvesting operations. Fellers and machine operators used a simpler topographic map (scale of 1: 4 000) to guide and record their work. The maps were used to locate crop trees and plan skid trails to minimize impact and maximize extraction; this resulted in skid trails usually located on crests to reduce cross-slope cuts and drainage problems, and extending as close as possible to the crop trees. Felling directions were defined by fellers to minimize turning when extracting logs. CL was done without proper planning. Fellers and bulldozer drivers located the crop trees without maps and cut skid trails according to the location of the felled trees.

Table 1. Summary of logging treatments

Compartment Techniques Equipment Maps used for skid trail alignment A RIL Bulldozer Yes B RIL Bulldozer, wheeled Yes skidder C CL Bulldozer No

Data collection

During normal harvest operations, a team of enumerators recruited from Mulawarman University kept detailed records of 237 extraction events. For each trip, the following data were collected: time consumption by stopwatch; size of logs moved (length and diameter); time elapsed; terrain; slope; and distance. The data were used to calculate speeds and productivity by machine and terrain characteristics, and ultimately costs per cubic metre by using standard costs for machine use (capital and operating cost). The standard cost for bulldozer was computed at Rp 400 000 (US$ 60) per hour and for a wheeled skidder Rp 325 000 (US$ 50) per hour.

RESULTS

The results indicate that both log production costs and environmental damage are much lower under RIL than CL (Figure 2 and Table 2). The chief explanation is that bulldozer time used for skid trail construction under RIL is much lower than under CL. Bulldozer hours for skid trail construction were 2.8 times higher in a conventionally harvested compartment than in the compartment harvested under RIL. The skid trail area opened was 1.7 times that of skid trails in the RIL compartment. Cross-slope trails and cutting depths were also greater in the conventional plots, increasing soil disturbance and machine time. This is an important finding since bulldozer hours are the major cost element in the harvesting operation. It also highlights how careful planning can result in more efficient use of heavy machinery, lowering costs and reducing environmental damage.

Figure 1a. Mapping tree position and contours (produced by SIPTOP software)

Figure 1b. Planned skid trails

Figure 2. Skidding costs

Table 2. Skidding cost by bulldozer (Rp 1 000 per m3); calculated on the basis of physical machine hours

Work element CL (C) RIL (A,B) CL as % of RIL Skid trail construction 17.9 6.4 280 Repair of skid trail 1.6 1.2 133 Travel empty 7.2 6.5 111 Winching and towing 13.3 10.9 122 Non-distance phases 6.7 6.0 112 Unavoidable time delays 4.7 3.1 151 Total 51.3 34.2 150 The total cost of bulldozer skidding in a well-planned compartment applying RIL was only 67 percent of the cost of CL, mainly because of lower skid trail construction costs and avoidance of delays, both resulting from better planning. These savings were achieved during the initial adoption of RIL. By increasing the awareness and attitudes towards RIL, through training, incentives and other managerial improvements, the advantages of RIL could be further enhanced.

Comparing results for standardized compartments

The data were collected from actual operations. Obviously, compartments have different topographies, which might influence overall findings. To illustrate the savings, basic data were used to calculate the costs for a standard compartment using the three logging techniques. The standard compartment was 100 ha in area and 3 000 m3 of timber were extracted. The average skidding distance was 400 m. In the combined bulldozer-wheeled skidder operation, 30 percent of the timber was extracted by the wheeled skidder.

Under CL, the total costs were Rp154 million, and an estimated 48 days were required to log the compartment. A bulldozer using RIL techniques completed the same work in 32 days at a total cost of Rp 103 million. The combination of wheeled skidder and bulldozer completed the work in 30 days at a total of Rp 94 million.

The additional cost of improved planning required to execute RIL is estimated at Rp 4 million per 100 ha compartment. This is due mainly to improved data collection, which takes longer. Savings from more efficient pre-harvest inventory and reduced management time (32 days logging as opposed to 48 days) are not included in this comparison but would provide additional savings.

LESSONS LEARNED FROM IMPLEMENTING RIL IN LABANAN

Planning - the basis for RIL Successful implementation of RIL is based on improved planning of harvest operations. Reliable tree and topographic data for the compartments to be harvested are required. PT. Inhutani I has improved the accuracy of its pre-harvest inventory. The accuracy of identifying crop trees has improved from 30 percent to more than 90 percent on average. This makes for more realistic production targets, reduces the time wasted by fellers in identifying harvest trees, and avoids unnecessarily damaging skid trail openings. The inventory data are processed using the SIPTOP software developed by BFMP. This software produces inventory summaries, tree-position maps and topographic maps.

From planning to production

The cruisers and production supervisors plan the skid trail network, landings and areas that should not be logged (e.g. steep slopes) using the tree-position and contour maps. This exercise is based on both technical and environmental considerations. If necessary, the plan can be revised further, and corrected on the map, during the marking of trails and felling directions in the forest. After marking the skid trails, the production supervisor becomes responsible for the implementation of the harvest. In other words, the planning staff is responsible for producing accurate information; the production staff is responsible for performing low-impact and cost-effective harvesting.

Using maps in the skidding process

The fellers follow the marked skid trails and fell the trees in the directions that facilitate efficient skidding. They can mark the felled crop trees, as well as future crop trees on the map, and inform the supervisor and bulldozer operator of changes in order to avoid unnecessary openings.

Post-harvest assessment

After completing the harvest operation, the maps are used again to record damage. This post-harvest assessment could be done easily along all skid trails. The results can be used to modify the stand data from the pre-harvest inventory record, thereby eliminating the need to conduct a complete post-harvest stand inventory, as would be required under the conventional TPTI logging system.

Indicators of environmental impact

Bulldozers are very powerful and can damage the environment substantially. The results of this study suggest that the more hours bulldozers are active in a compartment the more damage they inflict. Consequently “machine hours per hectare” or “machine hours per cubic metre extracted” could provide an excellent operational level indicator of environmental impact. These indicators have the added advantage of being related directly to operational costs. Thus, managers, accountants and environmentalists will all find this indicator relevant.

CONCLUSIONS

Awareness of the running costs of skidders is important for optimizing their use. The cost of a bulldozer travelling without a load is more than Rp 100 000/km. Skid trail construction in CL took 2.8 times as long as in RIL, resulting in costs of Rp 3.9 million/km for CL compared to Rp 1.5 million/km for RIL. Log size is the most significant factor in the speed and productivity of skidding. Productivity (m3/hour) improves as log size increases. Skidding with a bulldozer in CL costs 50 percent more than bulldozer skidding under RIL. Under RIL, extraction from one compartment can be accomplished in 30 skidder days instead of 48 days under the current system. Good planning, based on an accurate pre-harvest inventory, used as a tool for supervision and implemented under RIL, can save as much as Rp 60 million (US$ 600) in skidding costs in one compartment alone. Machine hours per hectare or per cubic metre extracted could be an excellent indicator of environmental impact and has the added advantage of being related directly to operational costs.

19. Improving occupational safety and health: the International Labour Organization’s contribution - Peter Blombäck*

* Forestry and Wood Industries Unit, International Labour Organization, 4, route des Morillons, CH-1211 Geneva 22, Switzerland, Tel: +41.22.799.6111, Fax: +41.22.798.8685

INTRODUCTION

This paper discusses prevailing social and labour problems in the forestry sector and describes how these hinder the development of a skilled and motivated workforce, which is a precondition for the effective application of reduced impact logging (RIL) techniques.

The paper gives a brief overview on how social and labour aspects have been addressed in the development of national/international certification, guidelines and codes of forest practice.

To provide guidance on effective ways of preventing occupational accidents and diseases, the International Labour Organization (ILO) published a Code of practice on safety and health in forest work in September 1998. This paper presents the Code, its objectives, contents and follow-up work to promote its use. It also describes other activities the ILO has undertaken to improve safety and health in the forestry sector.

With regard to safety and health, the paper concludes by identifying knowledge gaps and constraints to implementing RIL, and suggests essential occupational safety and health (OSH) criteria for sustainable forest management that should be taken into account to advance the successful and effective application of RIL.

SOCIAL AND LABOUR PROBLEMS IN FORESTRY

Most forestry is still characterized by a difficult working environment, heavy physical efforts and high accident risk. In developing countries in particular, this often results in a vicious circle of low productivity, poor wages and an unstable workforce. To secure the future of forestry, human resources as well as forest resources must be managed in a sustainable manner.

Accidents and health problems

Forestry work continues to be one of the most hazardous occupations worldwide. So why does the problem not gain the recognition it deserves? One reason might be that forest workers operate in small groups and isolated places, frequently changing locations. Compared with mining disasters where several workers may be killed at the same time, accidents in forestry remain largely unnoticed and hardly ever make the news. Still, the statistics give reason to worry.

Statistics from the USA for 1998 and 1999 illustrate that forest workers employed in harvesting had the highest fatality rate (Figure 1). The high fatality rates in the USA are still much lower than in other countries, particularly in the tropics (Figure 2). In the absence of safety regulations and training, accident rates tend to be several times higher than in industrialized countries whether work is performed manually or with machines.

Figure 1. Fatal occupational injuries by selected occupation, USA, 1998- 1999 (U.S. Department of Labor, 1994-95, 1998-99)

Figure 2. Fatality rates in forestry work for selected countries

The hot spot for serious accidents is forest harvesting, which tends to account for 70 percent or more of total accidents, a share usually far in excess of that of total productive working hours. Figure 3 shows the distribution among harvesting activities in Malaysia (Cheu Kuok Tuh, 1990).

Chainsaw operators are by far the most accident-prone group. In most cases of serious or fatal accidents, the worker is injured by falling trees, branches and logs. Accidents usually occur during felling and high-risk operations such as bringing down hung-ups or taking care of windthrows. In tropical forests, log transport operations also account for a major share of accidents. The introduction of RIL techniques (e.g. cable logging) might also introduce a new set of hazards, which have to be considered when these methods are implemented.

Figure 3. Distribution of logging fatalities among jobs in Malaysia (Sarawak), 1989

Behind the accident statistics lies much human suffering, all the more so since the many injuries tend to be difficult to treat and heal. For example, cuts by chainsaws often tear tissue, making surgical repair difficult or impossible. The risk of an accident with dramatic consequences is aggravated when, as is often the case in forestry, it occurs in an isolated place, far from a properly equipped medical centre. Accidents also affect the victim’s family, especially in developing countries where forest workers and their families often live under poor conditions with no alternative sources of income.

Forest work is also characterized by serious health problems related to excessive physical workloads, noise, vibration, repetitive strain injuries and stress among machine operators to name only the most significant (ILO, 1991). In fact, most forest workers do not reach normal pension age.

Another characteristic of forest work is that exposure to accidents not only varies with the job and the equipment used (e.g. operating a chainsaw versus a harvester); exposure also depends on the employment status of the workers. Farmers, the self-employed, contractors and beginners are much more at risk than experienced workers, permanently employed by larger enterprises (FAO/ECE/ILO, 1997).

In most developing countries, reliable information about occupational accidents and ailments at enterprise and national levels is often unavailable or incomplete. Forest accident statistics are needed for the industry and the workers to accept the seriousness of the situation, to understand the magnitude of the hazards and to react accordingly. Effectively reported and analysed they can be invaluable information for drawing up and monitoring accident prevention measures. The ILO guidelines on ergonomic study in forestry (Apud et al., 1989) provide valuable advice on developing an accident reporting system.

Cost of accidents

Forest worker safety and ergonomics have long been a low priority in most countries, whether industrialized or developing. Detailed cost-benefit analyses of the impact of improved working conditions are still lacking even though the sector is among the most accident-prone. The importance of costs associated with accidents has not been addressed adequately. One reason might be that managers often do not know the true cost of accidents. Typical costs of accidents include:

● evacuation, treatment, rehabilitation, where provided, and/or early retirement;

● loss of working time due to injuries;

● time lost by other employees when an accident occurs;

● replacement of injured employees by less skilled workers, which may result in lower productivity or lower quality of the work;

● effect on workers’ morale; and

● damage to equipment.

Many costs, especially the indirect ones, are frequently not obvious to managers and not always easy to assess. Direct costs such as compensation, medical treatment and lost wages often constitute only a minor portion of the total cost involved. Indirect costs might be several times higher. In addition, indirect costs are often uninsured costs and therefore not reimbursable. If all costs to the employer and employee are taken into consideration, what will the bill for negligence of safety requirements amount to? The following case from Malaysia shows two examples of relationships between indirect and direct costs.

Table 1. Accident costs in tropical wood harvesting: two examples (Manikam, 1985)

Accident 1 Malayian Accident 2 Malaysian ringgit ringgit Direct costs Direct costs: Compensation 14 000 Compensation 14 400 Transport 1 020 Transport 4 150 Other 4 000 Other 3 000 Subtotal 19 420 Subtotal 21 550 Indirect costs Indirect cost: Transport and repair of 14 440 Loss of production (3 tractor and replacement days, 365 workers, 1.54 of parts m3/man/day, loss of profit $50/m3) 84 250 Downtime damaged 23 067 tractor (5 months) Downtime other tractors 29 860 in the area (2 wks) Downtime for all other 37 739 machines (2 days) Downtime (2 wks) for 4 175 tractor in logging block Wages for all workers in 2 046 logging (2 days) Relief fund (2 days) 300 Subtotal 111 627 Subtotal 84 250 Grand total 131 047 Grand total 105 800 Ratio of direct to indirect 1:5.7 Ratio of direct to indirect 1:3.9 cost costs

US$1 = M$ 2.60

In countries where accident insurance plans are in place, premiums increase as compensation volumes rise. In some industrialized countries, worker compensation fees have become one of the largest cost factors, seriously affecting the economic viability of the logging business. In the southeast of the USA and Oregon, workers’ compensation premium payments average 40 percent of payroll expenses.

In view of these figures, it is evident that safety is an investment from which workers and companies can gain. A few serious accidents can destroy profits and the firm’s competitiveness for years through insurance rating practices (Garland, 1989).

Contract work

The share of forest workers directly employed by the forest owner or industry has been declining even in those countries where direct employment used to be the rule. The increasing reliance on contractors and self-employed people often means that the forestry sector has been moving backwards in terms of skill levels, safety and health, working conditions and quality. Contractors are usually hired only for a specific and relatively short-duration job. They have to change work sites frequently, often long distances apart. The shift to contractual arrangements also means that large companies transfer to the contractor labour force problems including safety and health matters, workers’ compensation, regulatory responsibilities, unemployment insurance, fringe benefits and training. Because of rapid new development, measures to ensure that adequate standards are maintained often lag behind (ILO, 1997b).

In many developing countries, there is a considerable influx of unprofessional ‘fortune seekers’ to the trade. These businesses are often unproductive and staffed by an unskilled and underpaid workforce. However, increasingly, voluntary or mandatory registration systems for contractors are being established (for example in South Africa and the UK), making safety and skill certification a prerequisite for registration.

Living conditions

In general, forestry operations take place far from urban centres, and workers must travel long distances every day or remain for several days or weeks in camps near the workplace. In industrialized countries this situation is less common as most workers are able to commute daily between home and workplace. Where camp standards are low, labour turnover can be expected to be high.

The energy content of food is important because most harvesting, handling and forest protection activities demand great physical exertion. Studies in Chile have found a direct relationship between food intake and productivity (Apud, 1995; cited in Johansson and Strehlke, 1996). Insufficient food supplies resulted in short working days and low productivity.

In hot working environments it is equally important to ensure supply of drinking water of adequate quality. For heavy jobs, such as chainsaw work, a worker needs approximately one litre per hour (Apud, 1995). Dehydration drastically reduces working capacity and the ability to concentrate, thereby increasing the risk of accidents.

Labour turnover

In many countries, forestry continues to be seen as a sunset industry. Compared to other sectors, employment in forestry is often very unstable. If working conditions are unattractive, turnover is inevitably high, which makes it impossible to stabilize the workforce. A high labour turnover drains skills, and reduces productivity and earnings. Consequently, work in forestry becomes the last resort for people with no other alternatives.

SOCIAL AND LABOUR CONTENT IN NATIONAL LEGISLATION, STANDARDS AND CODES OF FOREST PRACTICE

So what positive action can be taken for this situation, which is detrimental not only to the forest worker but also to the industry’s profitability? A step in the right direction has been the development of standards and codes of practice that incorporate safety and health aspects in environmental and productivity requirements. While setting minimum standards for qualification and working conditions this also improves efficiency in forest operations, which in turn provides a basis for better terms of employment, thus creating a more positive image of the profession.

National legislation, labour inspection

In spite of the dangers involved in working in forestry and the high accident rates, many countries lack OSH legislation that is designed specifically for forest work. Forestry frequently comes under the legislation that applies to the processing sector where the environment is more stable and the work processes are highly standardized.

In most developing countries, at least part of the general OSH legislation is applicable to workers directly employed in forestry, for instance legislation on minimum wages. However, it is most likely that contract labour and self- employment are not covered. Additional regulations would be needed for silvicultural operations and tree felling. Only very few developing countries have issued legally binding safety and health regulations for these operations, which can be enforced by labour inspectors (ILO, 2000).

Labour inspection

In many developing countries, labour inspection in forestry has up to now been minimal or non-existent. Only in rare cases have inspections gained the recognition and support deserved because of the high accident risks, and the difficult and often precarious working conditions. Some frequent problems facing labour inspectors are:

● absence of specific legislation covering the forestry sector; ● lack of personnel and transport; ● difficult access to remote workplaces; and ● insufficient knowledge of, and experience with, forest operations.

Also, the shift to contract labour presents particularly difficult challenges for labour inspectors. In view of these constraints, the impact of labour inspections on OSH and working conditions in many developing countries remains limited until the forestry sector accepts part of this responsibility through self-regulation and self- inspection. A good example is Zimbabwe where fatality rates dropped from seven per year to none, following an industry-led safety campaign in 1996. Also the introduction of codes of forest practice and certification schemes have proved to be an efficient tool to bring about improvements gradually (ILO, 1997c; Wells, 1999).

Ideally, labour inspectors should participate in the formulation of codes of forest practice. It would also be desirable for labour inspectors to be associated with code monitoring teams and to take care of labour aspects during monitoring. This would be an excellent opportunity to introduce labour inspection into forest operations and help to overcome the logistical problems faced by labour inspectors.

International/regional/national standards and codes of forest practice

Originally, the development of criteria and indicators for sustainable forest management suffered from a bias towards environmental concerns and economic interests. Social aspects have been covered to a varying and often unsatisfactory extent. This situation is changing and the need to integrate social and labour aspects in national standards for certification schemes and guidelines is now accepted widely.

For example, the revised International Tropical Timber Organization (ITTO) guidelines of 1998 include provisions for training and OSH, both at national and forest management unit levels. The ITTO manual for the application of criteria and indicators (ITTO, 1999) recommends several actions that would improve OSH and employment conditions if they were implemented. Performance-based standards, such as the Pan-European Forest Certification (PEFC) Framework and the Principles and Criteria of the Forest Stewardship Council (FSC), explicitly mention social and labour aspects.

FSC PRINCIPLE #4: COMMUNITY RELATIONS AND WORKERS’ RIGHTS

Forest management operations shall maintain or enhance the long-term social and economic well-being of forest workers and local communities.

4.1 The communities within, or adjacent to, the forest management area should be given opportunities for employment, training, and other services.

4.2 Forest management should meet or exceed all applicable laws and/or regulations covering health and safety of employees and their families.

4.3 The rights of workers to organize and voluntarily negotiate with their employers shall be guaranteed as outlined in Conventions 87 and 98 of the International Labour Organisation (ILO).

4.4 Management planning and operations shall incorporate the results of evaluations of social impact. Consultations shall be maintained with people and groups directly affected by management operations.

4.5 Appropriate mechanisms shall be employed for resolving grievances and for providing fair compensation in the case of loss or damage affecting the legal or customary rights, property, resources, or livelihoods of local peoples. Measures shall be taken to avoid such loss or damage.

In Sweden, the national FSC guidelines have used the ILO code of practice on safety and health in forestry work as the standard for safety requirements.

The actual coverage and level of requirements may still vary considerably among countries depending on how the framework or common principles are translated into national standards. It could be expected that these will be harmonized gradually since the certification organizations need to satisfy consumers that products of different origins carrying the same label meet broadly comparable minimum standards. Social aspects (workers’ rights, indigenous and local communities) was the main theme discussed during FSC’s annual meeting in 2000 and is definitely an area where FSC will push for improvements (e.g. improved routines for certifiers to better cover social aspects during revisions).

The FAO model code of forest harvesting practice (Dykstra and Heinrich, 1996) also identified the “development of a competent and properly motivated workforce” as one of four essential ingredients in forest harvesting operations if forests are to be managed on a sustainable basis. The statement also applies to forest operations other than harvesting. The Code provides several recommendations that clearly would contribute to improved working conditions, raise the status of forest workers and curb labour turnover. It has been consulted extensively in the development of several national codes and has been an effective means in promoting the incorporation of social and labour aspects into forest management.

The ILO code of practice on safety and health in forestry work

The high accident rates and incidence of occupational ailments in forestry have long been a concern for the ILO. The governments, employers and workers of ILO’s governing body decided in 1996 to give priority to this subject, to revise the ILO code of practice on safety and health in forestry work and to promote its application in member countries.

Based on an analysis of the OSH problems in forestry and experience with prevention strategies (see, inter alia, ILO, 1991; ILO, 1997a; FAO/ECE/ILO, 1997), a draft code of practice was prepared by the ILO secretariat. It draws on international experience and the numerous lessons learned over the years concerning ways to promote work safety in forestry.

The Code was drafted to satisfy a number of, sometimes conflicting, requirements:

● The provisions should be practicable and relevant in most countries and enterprises.

● It should address the most significant safety and health hazards.

● It should take an integrated approach to prevention, but also provide technical aspects for countries and companies that lack forestry specific regulations or guidelines.

● The Code should be clear and user-friendly.

In September 1997, the draft was submitted to a meeting of 30 experts, representing employers, workers and governments of important forestry producer countries. The meeting adopted a revised version of the Code that was endorsed for publication by the ILO governing body two months later. Since its publication, the Code has been translated into 11 languages (ILO, 1998).

Content

The Code emphasizes the need for an integrated approach, by developing a pyramid of measures that are the basis for the safe performance of operations. It is structured in four parts of which the first three deal with measures at the national and enterprise levels, rather than the workplace level (Figure 4).

Figure 4. Safety and health measures at national, enterprise and worksite levels Part I lays down general principles, sets out a legal framework conducive to safety and health in forest work and spells out the general duties of the numerous actors involved in the sector from authorities, employers, managers, supervisors, contractors and workers to labour inspectors, accident insurers and machine manufacturers.

Part II outlines the elements of a safety and health policy and a management system that translates the policy into day-to-day practice. The Code thus links a management system approach with specific performance requirements.

Part III concerns those measures that cannot be addressed at the workplace, but have to be dealt with at the enterprise level. These include the recruitment and skill development of the workforce. Particular emphasis is put on the latter and skill testing and certification are advocated as effective ways to ensure that supervisors, contractors and workers have the necessary competence. Specifications are provided for tools, machines and chemicals that are suitable for the job and carry the lowest possible risk. Part III also contains a chapter on personal protective equipment that should be used where other preventive measures cannot sufficiently reduce hazards, as well as rules on emergency rescue, shelter and nutrition for forest workers.

Part IV is the most voluminous and provides more detailed technical guidance on the most relevant forest operations, in particular harvesting, and on three high-risk situations, namely windfall, forest fires and tree climbing. In all cases the guidelines are organized into a sequence of measures for:

● planning; ● work organization; and ● operation.

The Code covers all types of forest workers, including contractors, the self- employed and forest farmers. It contains a number of specific suggestions to improve the safety situation among forestry contractors, who should be subject to the same safety requirements as directly employed workers. In addition, contractors should be registered, contracts should specify safety requirements and include penalties in case of non-compliance. Contractors and their employees should hold skill certificates.

Though it is not legally binding, the Code is an international guideline based on a consensus reached by governments, employer and worker representatives concerned with improving the OSH in the forestry sector. The provisions of the Code should be considered as minimum requirements and are not intended to replace applicable laws, regulations or accepted standards specifying higher requirements.

Follow-up activities

Since the adoption of the Code a number of national initiatives have been launched:

● The Code has been translated into 11 languages. In some countries efforts are underway by tripartite committees to adopt national safety regulations on this basis.

● Several large forestry enterprises have distributed the text within their organizations and intend to use the Code for training.

● The International Federation of Building and Wood Workers (IFBWW) has initiated training activities on safety and health based on the Code in Southern Africa and Southeast Asia.

● The code of practice for forest harvesting in Asia-Pacific (FAO 1999, p. 109) refers to the ILO code when it deals with camp standards and safety requirements.

SOME ILO ACTIONS TO IMPROVE SAFETY AND HEALTH IN FORESTRY

National OSH legislation for forestry

The ILO is currently promoting the ILO Code and assisting member countries and industry to adapt the text to national conditions. An information package for managers, supervisors, trainers, workers and contractors will be prepared to support its dissemination. Codes of forest practice

Another promising line of action to promote the ILO Code is its incorporation into broader codes of forest practices that do not treat OSH in isolation, but also consider productivity and environmental requirements. The ILO has assisted Fiji and Chile to draw up comprehensive codes, which were published in 1990 and 1997 respectively. It is currently providing advisory services to Uruguay, Brazil, Zimbabwe, Mongolia and China. These efforts are supported by an inter-regional project funded by the Government of Finland and implemented by the ILO and the Forest Harvesting, Trade and Marketing Branch of FAO.

Forest worker training

Maintaining well-trained staff at all levels in a company is vital to reach acceptable OSH standards, which in turn is a precondition for productive and environmentally sound operations.

The ILO has been involved closely in international exchanges of experience in forest worker training both in industrialized and developing countries. It also had direct responsibility for a number of technical cooperation projects in this area. The following general conclusions concerning developing countries may be drawn from the insight gained over the years:

● Training must be based on thorough training needs assessments and clearly defined working methods, techniques, tools and equipment (e.g. through a forest harvesting code).

● Preferably, forest workers should be trained at the workplace but outside normal production processes; training should be as practical as possible.

● Training needs to be structured, imparted by qualified instructors and culminate in a control process through skills testing and certification.

● Forest managers, supervisors and foremen must be aware of training requirements and must organize work and provide working conditions so as to ensure that the skills of trained workers are used fully.

Training labour inspectors in forestry

Since 1994, the ILO has assisted in training programs for labour inspectors in forestry. Typically the courses last for one week of theory and practical applications. Practical training includes visits to workplaces where demonstrations and exercises are carried out on the use of checklists on working conditions, working techniques and tools and machines. After each presentation or demonstration, participants are requested to prepare checklists to be used in inspection work. This exercise often leads to intensive discussions among participants and raises the absorption of the course content. The checklists are then used during field visits and amended afterwards by pooling the best elements from the groups. At the end of the course the inspectors receive a full set of the checklists they had developed themselves. Such checklists facilitate a systematic approach by inspectors who are generalists, rather than forestry experts. These courses are also beneficial for safety and forestry officers who are engaged in self-inspection and code monitoring.

CONCLUSIONS AND RECOMMENDATIONS

Challenges and constraints

Reduced impact logging (RIL) techniques will:

● be difficult to implement unless acceptable OSH and working conditions contribute to stabilize the work force and enable skill development; and

● not provide better market access through certification (and probably not to carbon credits) nor be in compliance with codes of practice, unless they meet essential social and labour standards.

Knowledge gaps

Common sense and anecdotal evidence suggest that training pays. However, research on the cost-benefit ratio of investment in training in forestry is quite limited. Such research is needed since it can provide much needed evidence to decision-makers that training is a prerequisite not only for sustainable operations but also for the financial viability of the company. Furthermore, it would help to design cost-effective training programs for RIL that are tailored to specific needs. For the same reason, studies of accident costs are important. The best way of motivating management concern about accident prevention is to demonstrate potential savings.

In countries where RIL is developed, reliable information about occupational accidents and ailments at enterprise and national levels is often unavailable or incomplete. In the absence of a management system, accident records could at least pinpoint problem areas and assist in defining priorities for preventive measures.

Recommendations for the implementation of RIL

The ILO suggests that the following OSH criteria for sustainable forest management should be considered when implementing RIL (Poschen, 2000):

● Safety and health policy and a management system are in place, which systematically identify hazards and preventive measures and ensure their implementation during operations.

● All necessary tools, machines and substances are available at the work site and are in a safe and serviceable condition.

● Safety and health requirements are taken into account in planning, organizing and supervising operations. ● Where workers stay in camps, conditions for accommodation and nutrition comply at least with the ILO Code of Practice on Safety and Health in Forestry Work.

Since its adoption, the ILO code of practice on safety and health in forestry work has proven to be applicable under a wide variety of conditions. In the design and implementation of RIL it should be systematically used as a reference.

REFERENCES

Apud et al. 1989. Guidelines on ergonomic study in forestry. International Labour Office, Geneva.

Apud, V. 1995. Ergonomics in forestry. The Chilean case. International Labour Office, Geneva.

Cheu Kuok Tuh. 1990. Logging accidents - an emerging problem. Occupational Health Unit, Medical Department, Sarawak, Malaysia.

Dykstra, D.P. & Heinrich, R. 1996. FAO model code of forest harvesting practice. Food and Agriculture Organization of the United Nations, Rome.

FAO. 1999. Code of Practice for Forest Harvesting in Asia-Pacific. RAP Publication: 1999/12. Food and Agriculture Organization of the United Nations, Bangkok.

FAO/ECE/ILO. 1997. Safety and health in forestry are feasible. Proc. seminar held in Emmental, Switzerland 7 to 11 October 1996.

Garland, 1989. Assessing gains from woodsworker training. International Journal of Industrial Ergonomics, Vol 5 (1990).

ILO. 1991. Occupational safety and health in forestry. Report III. Forestry and Wood Industries Committee, Second Session. International Labour Office, Geneva.

ILO. 1997a. Encyclopaedia of occupational health and safety. Volume III. International Labour Office, Geneva.

ILO. 1997b. Contract labour: Looking at issues. Edited by Egger P. & Poschen P. Labour education 1997/1-2. International Labour Office, Geneva.

ILO. 1997c. Ex-post evaluation of Fiji/ILO/Finland/EU Logging Training Project and the Fiji national code of logging practice. International Labour Office, Geneva.

ILO. 1998. Safety and health in forestry work. An ILO code of practice. International Labour Office, Geneva.

ILO. 2000. Approaches to labour inspection in forestry. International Labour Office, Geneva. ITTO. 1999. Manual for the application of criteria and indicators for sustainable management of natural tropical forests. International Tropical Timber Organization, Yokohama.

Johansson, K. & Strehlke, B. 1996. Improving working conditions and increasing profits in forestry. Sectoral Activities Programme Working Paper. International Labour Office, Geneva.

Manikam, D. 1985. Accidents and safety in logging companies in Sarawak. Occasional Paper No. 3, June 1985, Universiti Putra Malaysia, Serdang, Selangor, Malaysia.

Poschen, P. 2000. Social criteria and indicators for sustainable forest management. A guide to ILO texts. Forest Certification Project Working Paper. International Labour Office, Geneva and Deutsche Gesellschaft für Technische Zusammenarbeit, Eschborn, Germany.

U.S. Department of Labor. 1994-95, 1998-99. Census of fatal occupational injuries. United States Department of Labor, Bureau of Labor Statistics, Washington.

Wells, C.H. 1999. An assessment of the implementation of codes of logging practice in Fiji, Vanuatu, Solomon Islands and Papua New Guinea. Working Paper No. 11. Pacific Islands Forests and Trees Support Programme, Suva, Fiji.

20. Safety and occupational health in forestry operations in Australia - Changes in approach through time - Robert McCormack*

* Forest Technology Program, CSIRO Forestry and Forest Products, PO Box E4008, Kingston 2604, AUSTRALIA, E-mail: [email protected]

INTRODUCTION

Forestry operations in many parts of the world experience high injury rates of workers when compared to other industries. Australian forestry operations follow this trend where work- related death rates between 1989 and 1992 were 97 per 100 000 workers, some 17 times the average rate for all industries in Australia (NOHSC, 1999). Within the timber-harvesting occupation, serious injuries and fatalities are by far the most common in timber felling. The problem is not new, indeed it has been recognized as serious for a long time (Crowe, 1983), and has received considerable attention. There is some evidence that the situation in Australia is improving, at least in terms of fatalities (NOHSC, 1999); this paper attempts to highlight some of the developments that have led to this.

Workers in the field of safety and occupational health identify many contributing factors to an industry’s overall safety performance. In the case of forestry operations, forest characteristics, climate, the requirements of the industry, workers’ skills, working methods and technologies employed all play a part. Forestry safety practice is also influenced by the achievements and standards set by other industries and by pressures from society as a whole. As a relatively small forest economy that imports much of its forest technology, Australian forestry workplaces are also influenced by overseas developments related to equipment, work methods and training approaches.

Each country has its own occupational health and safety story to tell. This paper provides a perspective on the last 50 years for the Australian industry. It concentrates on hardwood tree felling, the object of much of the concern over the period. The paper aims to highlight the driving influences and describes some predominant forces in each of the relevant decades. There is, as yet, no definitive historical description of Australian forestry work practice of the period and so the paper relies on published information and the personal experiences of the author.

BACKGROUND

The Australian forestry sector has witnessed a number of major developments during the last 50 years. It experienced a post- World War II expansion and the virtual completion of the first round of cutting of the old-growth native eucalypt forests available for timber harvesting. The annual hardwood-cutting rate has been about 10 million m3 for much of this period. The early 1970s witnessed the development of a new large industry, based on wood-chip export operations, designed in many instances to allow a rehabilitation of degraded cut-over forest. The period also saw the development of large areas of plantations (primarily softwood), about 1 million ha, which now provide more than two- thirds of the nation’s wood needs.

The other major influences have been technological, and Australia’s experiences have paralleled those of many other countries. They include the development and application of chainsaws, bulldozers and heavy trucks in forestry operations. More recently we have witnessed the pervasive use of hydraulic excavators, and in our planted forests, the application of fully mechanized harvesting systems.

THE 1950s AND 1960s - THE START OF THE CHAINSAW ERA Increased capabilities of tractors and trucks underpinned rapid increases in logging productivity and made additional forests areas economically accessible for timber harvesting. There was a large demand for timber products to support post-war economic expansion. As chainsaws became lighter and their operation more practical, they were adopted enthusiastically by tree fellers.

One of the unexpected impacts of the new technology was on the work organization of tree felling. Tree felling in native forests was an activity that had hitherto been commonly a team effort of two or more people. Chainsaws made tree felling possible with one person, although in many cases the traditional practice of employing an assistant who helped to carry the backup tools and fuel supplies lingered on for some years.

THE 1970s - THE INDUSTRIALIZATION OF FORESTRY OPERATIONS

This period saw the rapid expansion of the new wood-chip industry across many parts of Southern Australia, based on the integrated harvesting of native forests for both sawlog and pulpwood material. These operations produced about half of the industrial logs from native forests. The pulpwood material was destined primarily for export as woodchips. These new operations were often characterized by a doubling and trebling of daily production targets for logging crews. Fellers were asked to cut almost all of the trees, rather than those of sawlog quality only. The increased recovery levels also allowed the economic logging of more marginal, often steeper forests that would not have supported logging for sawlogs only. In many forests, the additional non-sawlog trees were either the small variety, or large trees containing a high proportion of rot and defects. There were new dangers for fellers in both classes of trees. Felling smaller trees is relatively unproductive, and many small trees need to be felled to equal the volume of one large mature eucalypt stem. When coupled with a piece-rate, or production-based method of payment, this encouraged some fellers to use quick, but risky work techniques such as felling without a scarf. This new felling work also involved large defective trees, previously overlooked because of their higher levels of rot or decay and this was also more dangerous. Increased risk arises because the location of sound wood, or its strength distribution cannot be determined by just looking at the standing tree.

At the same time, traditional work patterns based on felling teams were disappearing. Timber fellers in Australia were and still are generally paid on a piece-work basis. Increased productivity demands, the need to cut small trees, the increased capability and reliability of lighter chainsaws all led to solo working, and the loss of the “apprenticeship” style of learning opportunities for felling skills. Formal training opportunities varied by employer and region, but were relatively few at the beginning of this period. Wage growth and employment demands in competing industrial sectors were high, and labour turnover increased as workers left for alternative jobs, compounding the skill and training problems.

THE 1980s - SCIENTIFIC STUDIES AND THE GROWTH OF TRAINING

The declining skill levels and Occupational Health and Safety (OHS) problems of the 1970s were recognized in a number of regions and steps were taken to address them. One set of important initiatives centred on training. Regional training teams were developed in the late 1970s and early 1980s in several states. They provided both initial and follow-up training for timber fellers (Crowe, 1982) and the developed schemes accreditation. They were supported by training materials, often relying strongly on international experience and publications.

A second set of initiatives centred on research was based on investigations of injury statistics of six important native forest production regions by Crowe (1983). He demonstrated the extent to which workers employed in felling and crosscutting had by far the worst accident record among forestry workers. At that time, this group comprised one-third of the workforce, but suffered two- thirds of the accidents. A correlation study of injury frequency with output levels showed a strong increase in accident levels with increasing daily output per feller.

Henderson (1990), working in Tasmania in the mid-1980s, investigated several key aspects of work performance in hardwood felling, physical work effort, judgement and prediction of dangerous work outcomes and tree felling accuracy. A summary of key aspects of Henderson’s study is presented here because they still provide a useful insight into the nature of tree felling.

The sample group contained about 40 subjects, about 10 percent of the number of fellers then working in the logging industry in Tasmania. Workers’ ages were evenly spread, ranging from 20 to 50, and work experience averaged over 9 years, ranging from 2 to more than 25 years. Several important and surprising findings emerged. Physical work effort was high, but the majority of the workers were assessed as operating within medical recommendations of 35 percent of maximal oxygen consumption (VO2 max). However, more of the older workers were working at very high proportional levels. Related measures of heart rate identified a number of subjects working at excessive heart-rate levels. The combination of measures led Henderson to identify a number of workers within his sample that he classified as “at risk”, that is a combination of both an excessive work rate (%VO2 max) and abnormally high heart rate. These individuals might be classified as not physiologically suited to timber felling.

Henderson used psychological assessments to compare the temperament and other mental attributes of his subject group to those considered desirable or essential by instructors and older experienced bushmen. These attributes were: (1) fatalism, seen as an accepting approach to the hazards and difficulties of the job; (2) patience and imperturbability; (3) inclination toward a steady productive working tempo, except where a “catch-up” was necessary; and (4) the drive and determination to maintain and improve personal standards of workmanship, despite pressures to “cut corners”. He reported that the results of the psychological tests for the subject group did not support a number of the preconceptions held by the instructors and old hands. His results indicated that as a group, many fellers were not significantly different from reported norms for the general population concerning the four investigated attributes. However, statistical testing indicated that they did conform to the stereotype of being more hard-driving and competitive than the general population. In a test of their ability to control tree felling, Henderson measured the final resting position of felled trees compared to the fellers’ declared intended direction. He classified more than half of the studied felling events as inaccurate (divergence of more that 5°), and one- third as very inaccurate (divergence greater that 10°). Subjects were also asked to rate the risk or awkwardness of the cut prior to the event as a measure of their confidence of success. Overall, the results indicated that subjects were unrealistically overconfident in their ability to fell accurately.

Henderson’s important conclusions for his subject group were that for tree felling “... it is not the case of the voluntary acceptance of carefully calculated risk and consistently accurate outcomes, but more that of a pattern of inevitable and ‘normal’ errors in spite of the mythology and tradition surrounding the occupation.” He suggested that the survival of these people is related to the frequency of dangerous and defective trees, and other random failures in the forest environment. In short, the results suggested that fellers thought they had more control over events than was actually the case.

THE 1990s - CHANGING LEGISLATION, AND A SHARPENING OF RESPONSIBILITY

The 1990s saw an intensification of effort in the management of hazards and risks through revised regulations, development and recognition of standards together with recommended procedures and a clarification of management’s role and responsibility.

Efforts to ensure agreed standards for the manufacture and use of equipment, including protective equipment, was a feature of the 1980s. The work was conducted under the auspices of Standards Australia, the national standards body. In the 1990s these efforts matured, and the resulting standards became a key part of the new workplace safety procedures. The range of topics covered is indicated in Table 1.

Table 1. Australian standards for equipment and application relevant to timber felling Australian Standard/New Zealand Acoustics - hearing protectors Standard 1270 Australian Standard/New Zealand Occupational protective helmets Standard 1800 Selection, care and use Australian Standard/New Zealand Occupational protective helmets Standard 1801 Australian Standard/New Zealand Occupational protective gloves Standard 2161 Australian Standard/New Zealand Occupational protective footwear Standard 2210 Australian Standard 2726 Chainsaws - safety requirements Australian Standard 2726.2 Chainsaws - safety requirements Part 2: Chainsaws for tree service Australian Standard 2727 Chainsaws - guide to safe working practices Australian Standard 3574 SAA Forest Safety Code Australian Standard/New Zealand Leg protection for users of hand- Standard 4453 held chainsaws Australian Standard/New Zealand High visibility safety garments Standard 4602

During this period, many states revamped their workplace occupational health and safety legislation to reflect a concern by Australian society to see improved standards of workplace safety. There was an increasing use of the legal system and a focus by courts on liability and a pattern of increasing compensation payouts to injured workers. This provided a major economic incentive to the industry to improve their OHS performance to limit the otherwise increasing costs of (compulsory) workers’ compensation insurance. These changes were felt across all industry, not just forestry operations or timber felling, although the more dangerous industries received increased scrutiny. Legal cases and revised legislation also focused increased attention on the employer’s and supervisor’s roles and responsibilities to workers.

These signals were interpreted by officials of government departments charged with regulating workplace health and safety issues as they drafted new industry guidelines for the forestry industries. New practice guidelines such as the Forest industry occupational health and safety information booklet (Geeves et al., 1995) moved some of the previous emphasis on the training, skill level and responsibilities of the individual worker, towards a greater recognition of the importance of workplace characteristics, the working systems employed by the whole logging team and the responsibility of the employer to ensure a safe workplace.

The roles, responsibilities and degree of independence of logging contractors were also proving important for other reasons. In Australia, commonly, timber has been sold by forest owners to the forest industry as stumpage. The forest industry employs logging contractors to harvest and deliver the wood “from the stump”. Thus, while at least three parties have a vital interest in the performance of logging operations (forest owner, timber mill and logging contractor) the primary sales agreement is only between two parties (the forest owner and timber miller). Mill-owner representatives were often required, under the terms of timber sales contracts, to assume important responsibility for negotiation with the forest owner concerning significant forest engineering decisions. This led, in some cases, to a pattern of involvement with contractor employees involved in the execution of logging plans. The assumption of a high level of responsibility by some timber millers’ representatives contributed to a confused situation as to who was responsible for job-site management and supervision, including important aspects concerning workplace health and safety.

Management and supervision difficulties were also arising in relation to meeting rising standards of environmental care. Several states had developed codes of logging practice by the early 1990s. Although timber sales were usually on a stumpage basis, environmental care responsibilities commonly rested with the landowner, who therefore had a direct interest in the performance of the logging crews. In the case of state-owned forest, state regulations usually required that timber-harvesting contractors and workers held a range of operating licences. These same regulations provided the basis for state forestry supervisors to issue work instructions. Thus, loggers often received directions from the contractor, their direct employer and also from the timber mill and landowner representatives who were not their employers. The confusion in responsibility on many logging worksites led to strong pressure for clarification of commercial, occupational health and safety, and environmental responsibilities. During the 1980s and 1990s these issues drove continuing improvement in the form and content of legal contracts.

CURRENT PRESSURES - 2000 AND BEYOND

Three current trends in relation to the occupational health and safety of timber fellers working in Australian native forests are noteworthy: (1) the increasing reliance on safety-management systems; (2) the drive to mechanize felling and cross-cutting operations wherever possible; and (3) transfer of logging responsibility from the timber mills to the forest owner (i.e. a move away from stumpage sale to sale of logs at the mill door).

Safety management systems, largely modelled on quality management systems such as ISO 9000, emerged in the late 1990s as a way of assuring that safety procedures were instituted by work teams. For example, SafetyMap (WorkCover Victoria, 2000) is coming into use in southern Australian timber- harvesting operations and is required increasingly as a prerequisite to contract acceptance. SafetyMap (and similar programs) is based on regular audits to ensure the operation of an effective safety program. It requires explicit written safety procedures and stresses continual improvement. In a complementary development, regulatory authorities are developing formal codes for safety procedures (i.e. Forest safety code (Draft), 2000). These provide basic standards to underpin the development of workplace safety systems, and provide an important complement to the safety-management systems.

Another trend is toward increased mechanization of felling and cross-cutting operations. The very large size of many of the mature eucalypt trees had hitherto exceeded the capability of available forest machinery. However, the continuing development of large-tracked hydraulic excavators, and the demonstration of their capacity to work within the forest provide an effective machinery base for the development of tree felling and cross- cutting applications. Several manufacturers are now providing equipment that is being used for tree felling in Australian native forests. There are still important limitations on the size of trees that can be felled safely by these machines. However, they do offer the opportunity to fell a significant proportion of many stands and they are more suited to the smaller tree sizes encountered in regrowth forests. The addition of hydraulic chainsaws to the loading grapples of the large capacity excavators used for debarking and loading has allowed many aspects of cross-cutting to be mechanized.

A third trend is for forest owners to assume control of logging and transport, to sell at the mill rather than on the stump. Logging is still done by independent logging contractors. The change suggests revisions in who employs loggers, and the need for new contracts and business relationships to be created. These revisions have the potential to reduce confusion in regard to workplace responsibilities, with the forest owner now the primary authority for payment as well as environmental supervision.

DISCUSSION AND CONCLUSIONS

Occupational health and safety have been a concern in forestry operations for a long time with high injury and death rates when compared to other Australian industries. This paper traced developments on forestry operations occupational health and safety practice in Australia by using the example of timber felling in native eucalypt forests and tracing changes through the last 40 years.

In timber felling, perhaps the most important event was the introduction of the lighter individual chainsaw in the late 1950s and early 1960s. This not only saw significant changes in productivity but also in the organization of timber felling. A transition to solo working by timber fellers removed an important opportunity for skill acquisition through on-the-job apprenticeship. Increased production levels associated with integrated sawlog and pulpwood harvesting meant that many more trees were felled, including a significant proportion that was more defective and dangerous to cut. Put simply, technical change caused the job to change with important consequences for occupational health and safety.

Initial responses were to increase training, focusing on skill acquisition by the individual feller. Regional training teams were formed in important Australian production regions and these were credited with significant achievement. Detailed ergonomic research on the performance of individual fellers showed, however, that some other factors needed further consideration. Henderson’s conclusions relating to skill in tree felling showed that even experienced fellers were not as proficient as they believed themselves to be and that tree felling variation appeared to be influenced strongly by tree characteristics not perceived by the feller. Tree felling in eucalypt forests had a high level of inherent danger that training of the individual might not adequately eliminate.

During the last two decades a growing concern by Australian society with safety at the workplace has focused increased attention on legal measures and regulations. Increased compensation payments led to higher insurance premiums. More attention has been put on the responsibility of employers and supervisors, and the doctrine of “Duty of Care”. There was increased recognition that safety was partly a characteristic of the whole workplace and the logging team, rather than just an issue for the individual tree feller. The development of safety- management systems is one of the major current initiatives being pursued in this area. Other developments seek to reduce risk by mechanizing the task and putting the fellers into machine cabs. This follows the highly successful model of the softwood plantation industry, but faces some limitations due to the very large size of some mature eucalyptus trees.

Approaches to occupational health and safety in forestry operations have undergone major changes during the past decades. Many factors beyond the immediate circumstances of the tree and the feller’s skill have been important. Changes in technology, in social attitudes and standards, and developments in other industrial sectors have all been important. Safety in forestry operations has now been acknowledged as an overall problem of management, requiring long-term attention.

REFERENCES

Crowe, M.P. 1982. Eden logging investigation and training team - the first two years. Australian Forestry 45(2) 98-106.

Crowe, M.P. 1983. Hardwood logging accidents and counter- pressures for their reduction. Unpublished Dissertation for Graduate Diploma in Occupational Hazard Management, Ballarat College of Advanced Education, Victoria.

Geeves, R., Rigby, P. & John, P.C. 1995. Forest industry occupational health and safety information book, Workplace Standards, Tasmania.

Henderson, M.E. 1990. Felling Australian hardwoods an ergonomic study of a high-risk occupation, Unpublished PhD Dissertation, Latrobe University, Victoria.

NOHSC. 1999. Work-related traumatic fatalities involving timber activities in Australia, 1989 to 1992. Epidemiology Unit, National Occupational Health and Safety Commission, Australia.

WorkCover, Victoria. 2000. SafetyMAP: Auditing health and safety management systems, 3rd Edition. Victorian WorkCover Authority, Melbourne.

Workplace Standards, Tasmania. 2000. Forest safety code (Tasmania) Draft. http://www.wsa.tas.gov.au/oh&s/Codes/ForestCOP.pdf.

21. Reduced impact logging in Sarawak, Guyana and Cameroon - the reasons behind differences in approach - W.B.J. Jonkers*

* Wageningen University, Silviculture and Forest Ecology Group, P.O. Box 342, 6700 AH Wageningen, The Netherlands Tel: ++(31 317) 47 8035, Fax: ++(31 317) 47 8078, E-mail: [email protected]

INTRODUCTION

Pinard et al. (1995) first used the term “reduced impact logging (RIL)” in 1995. They defined RIL as efficient timber harvesting, which is executed in such a way that damage to the forest ecosystem is minimized. The first efforts to reduce logging damage in the tropical rain forest date from the 1950s, when directional felling was introduced in the Philippines to avoid damage to potential crop trees (Reyes, 1968). In the same period, the first publications on logging damage in Malaysia appeared (Nicholson, 1958; Wyatt-Smith and Foenander, 1962). This led to the introduction of pre-felling climber cutting in the late 1960s (Fox, 1968). However, serious efforts to modify the complete logging operation with the dual aim to reduce damage and to improve efficiency were not undertaken in Southeast Asia until the late 1970s, and even later in Latin America and Africa.

The first true RIL system for tropical rain forests was developed in the late 1970s in Sarawak, Malaysia (Mattson-Marn and Jonkers, 1981). In the 1980s, other RIL systems were developed in Australia (Ward and Kanowski, 1985) and in Suriname (Jonkers and Hendrison, 1987; Hendrison, 1990). In the meantime, concern over continuing deforestation placed the need for improved management of tropical forests on the international political agenda. Consequently, RIL research really gained momentum in the 1990s. Many studies were initiated, for example in Indonesia (Bertault and Sist, 1995), the Malaysian state of Sabah (Pinard et al., 1995; Cedergren et al., 1994), Brazil (Johns et al., 1996; Blate, 1997), Guyana (van der Hout and van Leersum, 1998; van der Hout, 1999; 2000; Armstrong, 2000) and Cameroon (van der Hout and van Leersum, 1998; Jonkers and van Leersum, 2000; Jonkers, 2000; Durrieu de Madron et al., 1998). Furthermore, a code of practice was formulated, which applies worldwide (Dykstra and Heinrich, 1996).

Research results showed that logging damage can be reduced substantially, and that introducing improved logging techniques could be financially attractive for logging firms. However, most timber companies are reluctant to change their operations in spite of the favourable research findings (Putz et al., 2000a). Furthermore, RIL studies relate mainly to efficiency and costs, and to damage to vegetation and soil, which do not address fully the impediments to adoption. During the 1990s, many organizations made efforts to develop criteria and indicators for sustainable forest management and many of them are also relevant to logging. It may be that current RIL methods have to be adjusted to meet the requirements of sustainable forest management.

In this paper, four cases are discussed in which the author was involved directly: the RIL methods developed in Sarawak in the 1970s, in Suriname in the 1980s and in Guyana and Cameroon in the 1990s. This paper explains how and why these approaches differ from one another and what steps should be taken to improve them further as well as other methods. The methods are described briefly. For more complete descriptions, the references at the end of each case study can be consulted.

CASE STUDIES

Case 1: Sarawak

The site The Sarawak method was tested in a dipterocarp forest on undulating terrain, in a logging concession approximately halfway between the towns of Miri and Bintulu. The dipterocarp forests in Sarawak are generally richer in commercial timber than forests in Africa and South America, although the yield in this particular experiment was rather low by Malaysian standards of the 1970s. About 14 trees/ha were harvested, yielding about 54 m3/ha. Large commercial timber trees were scattered over the whole experimental site without an obvious spatial pattern, although there may have been a slight tendency to clumping. Before logging operations started, the area was uninhabited; the opening up of the area soon attracted a small number of settlers.

The method

Designing an improved logging method was one of the activities of a project implemented by the Food and Agriculture Organization of the United Nations (FAO). The project also dealt with silviculture, forest management and timber processing. Mattson-Marn, the project’s logging expert, had come to Sarawak to design a logging system which was less costly and more efficient than the existing methods, but reducing logging damage was not explicitly part of his terms of reference. Nonetheless, his method contained most elements used in more recent RIL methods:

● For felling and skidding, the same machines were used as in conventional logging. The method was based on improved working methods rather than on technical innovations.

● Logging started with mapping of terrain conditions and of trees to be harvested.

● The maps were used to align the main skid trails, which were 100-150 m apart, at right angles to the logging road and as straight as possible. These trails were as close as possible to concentrations of trees to be felled and steep grades were avoided. The main trails were opened prior to felling. ● Trees were felled usually at angles of 30°-40° to the skidding direction (a “herring-bone pattern”) to facilitate skidding. For the same reason, often trees were felled into existing felling gaps, natural openings or tracts of open forest, which reduced the amount of logging debris and therefore resulted in fewer obstacles. Improvements in felling techniques also included safety features and measures to reduce logging residues.

● Log extraction was done with choker cables that allow hauling of two or more logs at the same time.

● Secondary trails were made as skidding progressed to reach logs that could not be skidded directly from the main trail. Winching was not prescribed explicitly, and was seldom used for distances over 6 m.

Efforts focused on activities within the logging compartments and improvements in planning, and construction of roads and truck transport were not investigated.

The results

As a result of this planned way of working, logging costs per cubic meter extracted were reduced by 23 percent, which is due partially to lower skidding costs and partially because less timber had been wasted. Although the method had not been designed to reduce logging damage, the number of trees destroyed by logging had almost been halved.

Reference: Mattson-Marn and Jonkers, 1981.

Case 2: Suriname

The site

Suriname is a small country in South America. The Celos Harvesting System developed by Hendrison (1990) was meant for the “Forestry Belt”, a 40 to 120 km wide and 400 km long zone in the northern part of the country. The terrain is flat to undulating. The forest contains fewer timber trees than the Sarawak forest, and these trees are considerably smaller. Some 5-8 trees/ha are harvested, seldom yielding more than 20 m3/ha. The spatial distribution of commercial timber trees is usually random. The Forestry Belt is virtually uninhabited by humans.

The method

The Celos method was similar to the one developed in Sarawak, with the following modifications in felling and skidding:

● Felling was directional, but as the number of trees to be felled per hectare was considerably less than in Sarawak, there was no need to adhere strictly to a herring-bone pattern. Trees could be felled in any direction, as long as the angle with the main skid trail was approximately 40°, not less than 10° and not more than 60°. As there were hardly any clumps of timber trees to be spared, the objective of directional felling was to facilitate skidding and not to preserve potential crop trees. When necessary, wedges were used to direct the tree in an appropriate direction.

● Given the low yield per hectare, fewer landings were required. In Sarawak, one landing was constructed per main skid trail or per two trails, while in Suriname, one landing per three to six main trails was sufficient. This led to a dendritic skid trail pattern.

● Winching was prescribed. In principle, the skidders were instructed not to leave the main trails and logs were to be winched to the trails whenever possible. Choker cables were not used.

● Frequently, used skid trails were considered as a part of the permanent infrastructure. Soil mechanical studies had shown that using a trail for more than two loads led to such severe compaction that regeneration was impossible for at least several decades. The method was tested in a forest that had been logged in the early 1960s, and many old trails were still without woody vegetation[26]. These trails were re-used whenever possible and were therefore mapped during the pre-harvest survey. Also, the trail network was planned in such a way that branch trails were used for not more than two loads.

The results

The results were comparable to those obtained in Sarawak: additional expenditures for surveys, planning and pre-harvesting operations added about 5 percent to the logging costs. This increase was more than compensated for by reduced skidding costs and improved efficiency. The Celos method also significantly reduced logging damage. The area under skid trails was reduced by about 50 percent to a mere 5 percent of the total area.

References: Jonkers and Hendrison, 1987; Hendrison, 1990.

Case 3: Guyana

The site

Forests in Guyana are, as in neighbouring Suriname, relatively poor in timber trees and log dimensions are rather small, usually less than 70 cm in diameter. Traditionally, logging has targeted mono-dominant groves of exploitable species in the forest, the most important being greenheart (Chlorocardium rodiei). Recently, the range of commercial species has been broadened by an increased demand for peeler species.

Several RIL studies have been conducted in Guyana, but only the activity at the Tropenbos site near Mabura Hill is discussed here. Logging in this concession, although influenced by an increased marketability of lesser-used species, still focuses on greenheart. Because this species is limited to certain parts of the forest, selective logging is disturbing the landscape in a patchy fashion. Although the average yield is not higher than in Suriname, exploitation locally can reach 20 stems/ha or 60 m3/ha. The terrain in the study area is almost flat. Like most forested regions in Guyana, the area is almost uninhabited by humans. The population of the only settlement nearby, Mabura Hill, consists almost entirely of the personnel of the timber company and their families.

The method

Logging was confined to those parts of the forest where greenheart was present. The method was adapted from the one developed by Hendrison (1990) in Suriname. The most important modifications were:

● Lianas were cut six months prior to felling.

● Some selection criteria for trees to be felled were introduced, that is, diameter limits for individual species were set at 20-30 cm below the maximum diameter the concerned species could reach without developing decay. These limits were higher than required by law.

● During directional felling, the herring-bone pattern was adhered to more strictly.

● Skid trails were marked in the field prior to logging, but opened up only shortly before skidding.

The reason for the last two adaptations of Hendrison’s method was the high local logging intensity. In Suriname, there was usually ample space for the skidder to manoeuvre in case a tree had been felled in the wrong direction or in case of other unforeseen obstacles. In Guyana, however, much more timber and logging debris remains on the forest floor after felling, thus reducing the manoeuvring space of the skidder. Felling trees in the same direction and allowing the skidder operator to adjust the course of a trail if necessary allows operators to avoid obstacles.

The results

Again, RIL reduced the area under skid trails by about 50 percent. The number of trees damaged by skidding was reduced by the same percentage. Felling damage was not reduced, however, and may even be more severe than in conventional operations if felling intensity is high. This is because in conventional logging, trees are more likely to be felled into existing felling gaps, thus creating less damage but larger canopy openings. Research had shown that such multiple tree gaps are not favourable for regeneration of commercial species; nevertheless, they were preferred to avoid large gaps.

The costs per cubic meter extracted under RIL were slightly less than under conventional logging. The difference would have been more substantial if the same felling limits had been applied in both methods.

References: van der Hout and van Leersum, 1998; van der Hout, 1999; 2000.

Case 4: Cameroon

The site

Two RIL studies have been conducted in Cameroon, but only the Tropenbos study is discussed here. The Tropenbos site is located in the southwest of the country. The physiography is undulating in parts, but more often hilly or mountainous and highly dissected. An important difference from the other three cases is that people reside in the area. They practice shifting cultivation, hunt and gather non-timber forest products. Population density is about 7 persons/km2. Easily accessible parts are used mostly for shifting cultivation, and logging has to be practised mainly in difficult terrain. The forest differs in many respects from the forests in Sarawak, Suriname and Guyana. The high number of tall emergent trees with trunk diameters of 1 to 2.5 meters or more (about 7/ha in the logging experiments) is remarkable. Only a few of these giants belong to marketable species, and the average logging intensity is well below one tree/ha. Only very large trees are cut, and the average volume extracted is about 10 m3/ha. As in Guyana, the bulk of the production comes from one species, in this case azobé (Lophira alata). Large azobé trees as well as some other timber species tend to clump, but seldom stand close together. Felling tends to be concentrated in such clumps, and substantial parts of the forest are not affected by felling. The method

The RIL method developed by the Tropenbos-Cameroon Programme is again based on the method of Hendrison (1990) described above. The following adjustments were made:

● Directional felling was prescribed, but with another objective. Whenever possible, the trees were directed away from potential crop trees visible from the stump and into an existing (felling) gap or a patch of young forest. The felling directions were determined during the inventory, and marked both on the trees and on the survey map. Wedges were not used.

● Pre-felling skid trail alignment was applied, aimed at minimizing skidding distances and the area under trails. The trail pattern was influenced strongly by terrain conditions and the spatial distribution of trees to be felled. The main trails were generally 100 m or more apart, in as straight lines as possible and passed concentrations of felled trees within winching distance. Branch trails were constructed only where isolated felled trees could not be reached from the main trail. The trail alignment was such that the predetermined felling directions made angles of approximately 40° with the trails. Thus, the skid trail alignment was attuned to the felling directions, and not the other way around, as in Suriname.

The first adjustment was made because medium-sized and small trees of commercial species are relatively scarce and often occur in groups. This makes it highly desirable and feasible to reduce the damage caused by falling stems. Furthermore, it is less critical to pay special attention to avoiding large gaps. Under the prevailing harvest intensity, multiple tree gaps are rare and some timber species regenerate poorly in small gaps. This does not apply to most timber species, however, and preferably, felling should not lead to gaps exceeding 1 300 m2.

The results

At the onset of the project, there was doubt if directional felling and winching would be feasible, given the large tree sizes and the heavy weights of the logs. However, it appeared that winching over distances up to 20 m was applied already in conventional logging to recover logs on steep slopes. Furthermore, the experienced felling instructors could direct virtually all trees to be felled in any direction within 90° of the tree’s natural lean. Although the local fellers were less successful than their trainers in this respect, felling damage to trees of commercial species could be reduced by more than 40 percent.

In conventional logging, the area under skid trails was only 4.3 percent. With RIL just a modest reduction to 3.9 percent could be realized. More important is that after RIL skidding, part of the vegetation had survived on 47 percent of the trail length, compared to 29 percent after conventional logging. These parts of the trail network had been used for the extraction of one or two felled stems only, and are likely to recover more rapidly than other sections because some vegetation remained and because the soil had been less compacted.

A difference in costs between RIL and conventional logging could not be demonstrated, although the RIL method is probably somewhat less expensive.

References: van der Hout and van Leersum, 1998; Jonkers and van Leersum, 2000; Jonkers, 2000.

Discussion and conclusions

All four methods discussed lead to reductions in damage to vegetation and soil, higher recovery of usable timber and safer working conditions. Furthermore, they do not require major investments. The RIL methods discussed are remarkably similar. Differences in approach relate mainly to differences in logging intensity and forest composition. This probably applies also for most other RIL methods.

Some issues, like incentives for logging operators to stimulate them to produce quality work, still need to be resolved. Otherwise, the methods are ready to be implemented by the logging companies. Further technical refinements are certainly possible. For instance, use of the global positioning system (GPS) can improve the accuracy of mapping and planning. These are not the most important issues for the near future, however. Two crucial questions remain:

● Why are timber companies still reluctant to change their operations? ● Do existing RIL methods meet the requirements of sustainable forest management?

Acceptance by the industry

There are many explanations for the reluctance of the timber industry to accept RIL (Putz et al., 2000a), but none apply to all companies. Some relate to constraints in introducing new methods. Change always brings unexpected problems and costs, which may outweigh financial gains in the short term. Furthermore, improvements in mapping and planning mean extra office work and more coordination, supervision and communication, and therefore a change in the logging company’s organization, which may be quite fundamental.

Many timber companies also doubt the profitability of RIL after the introduction period. When improved logging techniques are combined with other measures to achieve sustainable forest management, RIL may indeed be more expensive (see Tay et al., this volume). Examples of such measures are the application of higher felling limits or restricting logging in parts of an area for environmental and other reasons. Introducing such elements may be good forest management, but may lead to higher costs. Applying RIL without such additional prescriptions will generally be less costly than conventional logging.

Another explanation is that conventional logging has at least one important advantage for timber companies in comparison to RIL. The prime objective of timber companies is to maximize profits from timber processing and timber sales. Hence, they want to be able to respond flexibly to changes in timber prices and orders from buyers. Timber prices fluctuate considerably and unpredictably. It is therefore difficult to predict if logs of lesser quality can be sold or processed profitably. This applies also to good-quality logs of tree species that yield low-priced timber or are less in demand. In conventional logging, timber companies respond to poor market conditions by leaving trees for which there is no demand uncut, and return later, when market conditions have improved, to the same tract of forest to harvest the remaining timber. This flexibility is not foreseen in RIL. An assumption of RIL is rather that all timber is removed in one single logging operation, as re-entry always causes extra damage and costs. One may of course consider allowing re-entry under specified conditions, but it would be better if the problem could be resolved through better marketing, long-term sales contracts and other market-oriented strategies.

Aspects of sustainable management

Sustainable rain forest management has to meet many ecological, social, economic and technical criteria. As RIL is supposed to contribute to sustainable forest management, it is logical that RIL has to comply with these standards also. RIL research has focused so far on efficiency and reduction of damage to vegetation and soil. In addition, safety aspects and the impact of gap size on regeneration of timber trees have been taken into consideration. Some important aspects, which have received little attention so far, are discussed below.

Impacts on wildlife

There are many studies on ecological impacts of logging, such as consequences for floral and faunal biodiversity, but these studies were seldom in relation to RIL (Putz et al., 2000b). Although it is likely that RIL’s impact on biodiversity is lower than conventional logging, the impact on fauna requires more attention. Logging affects fauna indirectly through hunting (Bennett and Robinson, 2000), because it opens up the forest for hunters and because of hunting by logging personnel. Direct impacts include damage to vegetation (changes in microclimate and availability of food plants) and habitat disturbance caused by the mere presence of logging personnel and the noise of machinery. The last aspect, which affects especially the larger mammals, is documented poorly. At the Tropenbos site in Cameroon, Bagyeli pygmies and other hunters complain that larger game is chased away by the noise of logging operations, and that it takes many years for populations to recover (van den Berg and Biesbrouck, 2000), which is supported by other, yet unpublished evidence (van Dijk, pers. comm.; Tovar, pers. comm.). In fragmented forest areas surrounded by shifting cultivation, game may even disappear forever.

RIL does not reduce hunting pressure, but it diminishes damage to vegetation and it also reduces the duration of the entire logging operation. The impact on fauna should be reduced further by preventing logging operations from being executed concurrently over large continuous areas, that is, by ensuring that the animals have a place to where they can flee and from where they can return after logging has been completed.

Social impacts

Social impacts have been neglected in RIL research. Where logging operations are in uninhabited areas this is justified, as the only social function of logging is providing employment. However, most logging companies have to deal with local people, who also use the forest, inter alia, for hunting and gathering of non-timber forest products. Logging interferes with the lives of villagers in both positive and negative ways. Logging roads make it easier for them to trade and travel. The company may also provide some employment and compensation for inconveniences caused by logging. These benefits are offset by substantial social and direct financial costs. During the harvesting operations, it is not safe for the villagers to enter a forest where logging is in progress; thus, their access to forest resources is reduced. The aforementioned impact on fauna also has social consequences. At the Tropenbos site in Cameroon, wildlife provides virtually all of the proteins for the local population (van Dijk, 1999), which means that continuous access to the forest is vital. This illustrates that social aspects have to become an integral feature of RIL planning, and that this planning should be discussed with the people to ensure their interests are taken into account adequately. Logging should be planned in such a way that individual villages always have access to a considerable part of the forest. Furthermore, prescriptions for directional felling may have to be adjusted to preserve treesthat produce non-timber forest products.

Yield regulation

A basic assumption of sustainable management is that the amount of timber harvested per year is equivalent to the potential annual volume increment. This means that the allowable cut should be integrated in RIL planning. When the methods discussed in the case studies were developed, growth and mortality data were insufficient to assess the allowable cut with satisfactory accuracy, although yield prediction models were developed by the Sarawak and Cameroon projects (Jonkers, 1982; Eba’a, 2000). Reliable data from growth and yield experiments established in the 1970s in Sarawak and Suriname now exist, and introducing the allowable cut in the RIL methods concerned is therefore possible and recommendable. In Sarawak, steps in this direction have been undertaken already (see also Ago Dagang et al., this volume). Diameter limits set for trees to be logged should well exceed the size at which the species flowers for the first time, and be at least 20 cm below the maximum diameter at which the species starts to develop unacceptable decay, even if the yield prediction model suggests otherwise.

ACKNOWLEDGEMENTS

This paper is based on results of projects executed by FAO and the Sarawak Forest Department (Sarawak), Celos (Suriname), Wageningen University (Suriname, Cameroon), Institut de Recherche Agronomique (IRAD) (Cameroon) and Utrecht University and the Guyana Forest Department (both Guyana), in collaboration with their industrial partners. The projects received financial support from the Tropenbos Foundation (Cameroon, Guyana), the United Nations Development Programme (Sarawak), the International Tropical Timber Organization (ITTO) and the Common Fund for Commodities (Cameroon). The author would like to thank these organizations, and the numerous individuals who contributed to the success of the projects concerned.

REFERENCES Armstrong, S. 2000. RIL for real: introducing reduced impact logging into a commercial forestry operation in Guyana. International Forestry Review, 2 (1): 17-23.

Bennett, E.L. & Robinson, J.G. 2000. Hunting of wildlife in tropical forests: implications for biodiversity and forest peoples. World Bank Biodiversity Series - Impact Studies 2. World Bank Environment Department, Washington, D.C., USA.

Bertault, J.-G. & Sist, P. 1995. Impact de l’exploitation en forêt naturelle. Bois et Forêts des Tropiques, 245 (3): 15-20.

Blate, G. 1997. Sustainable forest management in Brazil. Tropical Forestry Update, 7(3): 14-15.

Cedergren, J., Falck, J., Garcia, A., Goh, F. & Hagner, M. 1994. Reducing impact without reducing yield. Tropical Forestry Update, 4 (3): 9-10.

Durrieu de Madron, L., Forni, E. & Mekok, M. 1998. Les techniques d’exploitation à faible impact en forêt dense humide camerounaise. Série Forafri Document 17, CIRAD-Forêt, Montpellier, France.

Eba’a, R.A. 2000. TROPFOMS, a decision support model for sustainable management of south Cameroon’s rain forests. Tropenbos-Cameroon Series 2. The Tropenbos-Cameroon Programme, Kribi, Cameroon.

Fox, J.E.D. 1968. Logging damage and the influence of climber cutting prior to logging in the lowland dipterocarp forest in Sabah. Malaysian Forester, 31: 326-347.

Dykstra, D. & Heinrich, R. 1996. FAO model code of forest harvesting practices. Forestry Paper 133. Food and Agriculture Organization of the United Nations. Rome.

Hendrison, J. 1990. Damage-controlled logging in managed tropical rain forest in Suriname. Ecology and Management of Tropical Rain Forest in Suriname 4. Agricultural University, Wageningen, The Netherlands. Johns, J.S., Barreto, P. & Uhl, C. 1996. Logging damage during planned and unplanned logging operations in the eastern Amazon. Forest Ecology and Management, 89(1): 59-78.

Jonkers, W.B.J. 1982. Options for silviculture and management of the mixed dipterocarp forest of Sarawak. Project FAO/MAL/76/008 working paper 11. Forest Department, Kuching, Malaysia.

Jonkers, W.B.J. (ed.) 2000. Logging, damage and efficiency: a study on the feasibility of reduced impact logging in Cameroon. Tropenbos-Cameroon Reports 00-3. The Tropenbos-Cameroon Programme, Kribi, Cameroon.

Jonkers, W.B.J. & Hendrison, J. 1987. Prospects for sustained yield management of tropical rain forest in Suriname. In: Figueroa Colon, J.C. et al. (eds.). Management of the forests of tropical America: prospects and technologies. Institute of Tropical Forestry, USDA Forest Service, San Juan, Puerto Rico, USA.

Jonkers, W.B.J. & van Leersum, G.J.R. 2000. Logging in south Cameroon: current methods and opportunities for improvement. International Forestry Review, 2(1): 11-16.

Mattson Marn, H. & Jonkers, W.B.J. 1981. Logging damage in tropical high forest. In: Srivastava, P.B.L. et al. (eds.). Tropical forests, source of energy through optimisation and diversification. Penerbit Universiti Pertanian Malaysia, Serdang, Malaysia.

Nicholson, D.I. 1958. Analysis of logging damage in tropical rain forests, North Borneo. Malayan Forester, 21 (4): 235-245.

Pinard, M.A., Putz, F.E., Tay, J. & Sullivan, T.E. 1995. Creating timber harvest guidelines for a reduced-impact logging project in Malaysia. Journal of Forestry, 93 (10): 41-45.

Putz, F.E., Dykstra, D.P. & Heinrich, R. 2000a. Why poor logging practices persists in the tropics. Conservation Biology, 14 (4): 951-956. Putz, F.E., Redford, K.H., Robinson, J.G., Fimbel, R. & Blate, G.M. 2000b. Biodiversity conservation in the context of tropical forest management. World Bank Biodiversity Series - Impact Studies 1. World Bank Environment Department, Washington, D.C., USA.

Reyes, M.R. 1968. Selective logging, a must tool for continuous production of Philippine mahogany in the Philippines. Philippine Forests, 2 (2): 14-21.

Van den Berg, J. & Biesbrouck, K. 2000. The social dimension of rainforest management in Cameroon: issues for co- management. Tropenbos-Cameroon Series 4. The Tropenbos- Cameroon Programme, Kribi, Cameroon.

Van Dijk, J.F.W. 1999. Non-timber forest products in the Bipindi- Akom II region, Cameroon. Tropenbos-Cameroon Series 1. Tropenbos-Cameroon Programme, Kribi, Cameroon.

Van der Hout, P. 1999. Reduced impact logging in the tropical rain forest of Guyana. Tropenbos-Guyana Series 6. Tropenbos- Guyana Programme, Georgetown, Guyana.

Van der Hout, P. 2000. Testing the applicability of reduced impact logging in greenheart forest in Guyana. International Forestry Review, 2 (1): 24-32.

Van der Hout, P. & van Leersum, G.J.R. 1998. Reduced impact logging: a global panacea? In: Tropenbos research in tropical rain forests: its challenges for the future. The Tropenbos Foundation, Wageningen, the Netherlands. pp. 185-203.

Ward, J.P. & Kanowski, P.J. 1985. Implementing control of harvesting operations in north Queensland rainforests. In: K. Shepherd & H.V. Richter (eds.). Managing the tropical forest. Australian National University, Canberra, Australia.

Wyatt-Smith, J. & Foenander, E.C. 1962. Damage to regeneration as a result of logging. Malayan Forester, 25: 40-44. [26] This phenomenon is not unique to Suriname. The author also observed it in Peninsular Malaysia, when visiting the logging experiment of Wyatt-Smith and Foenander (1962) in 1977.

22. Building partnerships - Tasmania’s approach to sustainable forest management - Graham R. Wilkinson*

* Forest Practices Board, Tasmania, 30 Patrick St, Hobart, Tasmania, Australia, 7005, E-mail: [email protected]

INTRODUCTION

Tasmania has 3.4 million ha of forest, which represent 50 percent of its landmass. Over 39 percent of the forests are in formal reserves, with 30 percent available as public multiple-use forest and 31 percent as privately owned forest. The average annual volume of wood harvested from public and private forests is about 4.5 million m3 (Forestry Tasmania, 1998). The Tasmanian forest industry contributes about A$ 1 billion to the State’s economy each year.[27] Tasmania’s population is relatively small (474 000 people) and the wood and paper products industry accounts for more than 20 percent of total manufacturing employment.

Tasmania’s forest practices system began in 1985 with the introduction of the Forest Practices Act. The objective of the Act is to achieve the sustainable management of public and private forests. The various components of the forest practices system are described by Wilkinson (1999; 2000). The founders of the system were far sighted, believing that it should be based on a philosophy of cooperation and trust, rather than coercion and antagonism. Tasmania’s forest practices system is, therefore, delivered through a cooperative approach between government and the private sector. Partnerships have been developed in order to optimize the use of existing resources, and avoid duplication, unnecessary bureaucracy and excessive regulatory costs. As a result, Tasmania has an effective and efficient forest practices system that is supported actively by government, landowners, the forest industry and the broader community.

CHALLENGES, CONSTRAINTS AND OPPORTUNITIES

The challenges to the forest practices system in Tasmania continue to evolve. In the 1980s, Tasmania needed to gain the support of private forest owners and the forest industry for the introduction of a code of practice. Twenty years later, the level of support for the code within these sectors is very high. The continuing challenges are twofold:

1. It is important to maintain the philosophical approach of cooperation rather than coercion at both the personal and institutional levels. Appropriate structures and processes are necessary to ensure that institutional commitment does not diminish over time as a consequence of changes in staff.

2. The code must be updated continually and improved on the basis of research, operational experience and social expectations. Continuing improvement in the application of the code must be delivered through the training and education of forest owners and workers.

There are no major internal constraints on the ability of the forest practices system to make progress, although there are obviously limits in areas such as research capacity. The external operating environment continues to impose constraints that vary in accordance with changing social expectations. Current constraints are often related to conflict over land use (e.g. debates over the use of native forests for wood production and concerns that plantation forestry is displacing traditional agriculture). In addition, demand from the community for more information and verification regarding the efficacy of, and compliance with, codes of practice is increasing. Whilst many within the forestry sector see this demand as a threat to their business, others see it as an opportunity to demonstrate that their practices meet the highest standards of sustainable forest management.

THE DEVELOPMENT OF PARTNERSHIPS

An appropriate regulatory framework is necessary to implement codes of practice and RIL. In designing a regulatory framework, it is important to remember that forest regulation is concerned primarily with the regulation of human behaviour. Forests tend to be remarkably well behaved! The attitudes and behaviour of governments, industry, landowners, communities and other stakeholders determine the effectiveness and efficiency of regulatory regimes.

The choice of a regulatory regime depends upon the interplay of a number of factors. These include: social attitudes; the proportion of operations within the public and private sectors; the type of forest operations; institutional arrangements within government; and the availability of skills and resources in both the government and private sectors (Wilkinson, 1999). In many jurisdictions, an emphasis on government regulation and litigation leads to an increasing spiral of tightening regulations (Garland, 1996). Such processes impose considerable costs on both industry and government, and often result in systems that only achieve the minimum standards necessary to avoid penalties, rather than the pursuit of excellence. In contrast, a more self-regulatory approach with appropriate safeguards can avoid unnecessary bureaucratic costs, provide greater flexibility and autonomy for industry and deliver improved environmental performance (Gunningham and Sinclair, 1999).

Tasmania’s regulatory regime can be described as one of self- regulation by the forest sector, with oversight and independent enforcement by the government through the Forest Practices Board. The statutory objectives of the Forest Practices Board are to:

● best advance the objective of the State’s forest practices system; and ● foster a cooperative approach towards policy development and management in forest practices matters. A cooperative approach has been achieved largely through the development of partnerships, which have allowed the forest practices system to:

● recognize and clarify the rights, roles and responsibilities of each party;

● optimize the use and development of skills and resources within both the governmental and private sectors; and

● motivate and empower all parties to strive for best practice, rather than minimal performance.

Independent monitoring and reporting of outcomes by the board provides a high degree of transparency and credibility. The board is also empowered to take enforcement action in instances where self-regulation has not achieved acceptable outcomes.

Partnership between government and private landowners

Activities on privately-owned forests account for about 60 percent of forest practices operations within Tasmania (Forest Practices Board, 2000a). About 25 percent of these operations are conducted on land owned by forest companies; the remaining 75 percent occur on land owned by numerous small landowners. Prior to the 1980s, there was no regulation of forest management on private land and there were increasing concerns about forest regeneration and long-term sustainability (Everett and Gentle, 1977). A government inquiry in the late 1970s recommended the introduction of a forest practices system that would apply equally to both public and private tenures. At that time, there was a strongly held principle of “private rights”, with the politically powerful private sector very strongly opposed to the introduction of regulatory controls by government. To overcome this resistance, the government engaged the private sector in a cooperative way, and negotiated a package of legislation that was agreed upon mutually. The package recognized the rights of private landowners and provided benefits, in terms of resource security and streamlined approval processes. In return, private landowners gave a commitment to comply with a legally enforceable Forest Practices Code. The main features of the partnership between government and the private landowners include the following:

● Governance - Private landowners are involved in the governance of the forest practices system, through membership of the Forest Practices Advisory Council, which is a statutory body established under the Forest Practices Act. The council provides a forum within which stakeholders exchange views and information as part of reviewing the operation of the forest practices system and providing advice to the Forest Practices Board.

● Code of Practice - The Forest Practices Act formally provides that the board must consult with the private sector prior to making any amendment to the Forest Practices Code. In practice, reviews of the code are carried out in a highly consultative manner to ensure that the code remains a practical document that has the ownership and support of all sectors, including the private forest owners.

● Resource security - The Forest Practices Act allows landowners to have their land declared as a Private Timber Reserve. This status provides a guarantee that the land can be managed in the future for wood production. In this way, the landowner’s investment in long-term forestry is not at risk from land-use zoning changes or other restrictions that may be imposed under other legislation. In return for this security, the landowner gives a commitment to manage the forest in accordance with the Forest Practices Code.

● Duty of care - The reservation of private land for conservation purposes generally involves some combination of voluntary and imposed measures, which may or may not involve compensation (Hanna, 1997). The degree of “take” by government is a highly contentious issue for the private sector. In Tasmania, the government and the private landowners have agreed upon a definition of “duty of care”, by which landowners have agreed to reserve land from logging, up to prescribed thresholds, in order to protect natural and cultural values. The reservation of land beyond the thresholds is deemed to be for the community benefit and on this basis is subject to voluntary arrangements or the payment of compensation.

Partnership between government and the forest industry

A partnership between government and the forest industry was developed as part of the Forest Practices Act to recognize that all parties have a collective responsibility to ensure that forestry operations are planned and conducted properly. As an underlying principle, good forest practices should not be dependent upon the availability and presence of a government inspector. All parties should have the motivation and resources to strive for excellence. To achieve this, there needs to be a commitment to providing incentives, training and education.

Key features of the partnership between the government and forest industry in Tasmania are as follows:

● Governance - The forest industry is represented on the Forest Practices Advisory Council, and the board includes a director with expertise in forest harvesting and processing.

● Streamlined regulatory approach - Tasmania has a “one- stop shop” that provides a streamlined approval process for a range of legislation. Wherever possible, the approval of a Forest Practices Plan under the Forest Practices Act removes a requirement for separate approvals or permits under other legislation.

● Delegated powers to forest practices officers (FPOs) - Foresters employed by industry can be appointed under the Forest Practices Act as FPOs. The Forest Practices Board provides continuing training for FPOs to ensure that they remain up to date and motivated. These officers have a statutory responsibility to plan and supervise their operations to ensure that they comply with the requirements of the act and code. In return, the Forest Practices Board may delegate the power to approve plans to FPOs. The board audits the performance of FPOs and may suspend or revoke their appointment for instances of poor performance. The delegated powers available to FPOs are valued highly by the industry. Accordingly, there is a strong incentive for the industry to employ and maintain highly regulation (A$ 7 million annually). In addition, under the principle of self-funding, the industry voluntarily contributes about A$ 1 million annually to support a research and advisory program within the Forest Practices Board. This program provides specialist expertise and develops management guidelines and tools in the areas of botany, zoology, soils, water, geomorphology, cultural heritage and visual landscape for application by FPOs. This collective expertise is available to all industry bodies, irrespective of size and resources. Under the partnership approach, there is a strong network between FPOs and the specialists. Research priorities are determined collaboratively to ensure that industry has ownership of the research and the means by which the findings will be implemented at the operational level. The specialists are involved closely in giving planning advice to FPOs. This synergy increases the skills and motivation of FPOs, whilst also ensuring that the specialists take a practical and pragmatic view towards the management of natural and cultural values within wood-production forests.

Partnerships between forest companies and forest contractors

In Tasmania, the planning and supervision of forestry operations generally is undertaken by forest companies that engage forest contractors to carry out the forest operations. Partnerships between companies and contractors are usually contractual in nature, but they are underpinned by a commitment to training and continuing improvement. Such synergies have led to the introduction of RIL techniques such as cording and matting and shovel logging (see box below). These techniques have a range of economic, operational and safety advantages, in addition to delivering significantly better environmental outcomes. The close partnership between industry and contractors consistently results in better standards of forest practices than those achieved by contractors who work independently of the large forest companies (Forest Practices Board, 1999). Matting and cording refer to the placement of small logs, logging slash and/or bark on snig (skid) tracks to create a layer that spreads the ground pressure of the logging machines and avoids direct contact between the soil surface and the machine tyres or tracks (Forest Practices Board, 2000b). Matting refers to the placement of understorey and logging slash to form a mat over the ground surface prior to any snigging (skidding). Depending upon the harvesting regime and availability of suitable slash, matting may be used to create a complete cover over the harvesting area or may be concentrated on snig tracks. Cording involves the use of larger material such as small diameter logs, which are placed on snig tracks at 90o to the track in wetter areas. Corded areas are then often matted to improve the trafficability of the tracks. The best environmental effects are achieved when cording is installed on snig tracks prior to rutting or damage to soils.

Matting and cording have been adopted extensively by harvesting contractors in the wetter, more productive forests of Tasmania. Matting and cording material is removed by logging machines and/or burned during rehabilitation works following harvesting. The environmental benefits of matting and cording are profound, with virtually no soil disturbance even on primary snig tracks. In addition, there are important benefits for the harvesting contractors due to less wear and tear on machines, less stoppages due to wet conditions, and safer operating conditions (Wilkinson, 2000).

The matting and cording of snig tracks is an excellent example of a “bottom-up” approach to RIL. Snig tracks in Tasmania previously occupied between 10 and 20 percent of the harvest area (Wilkinson and Jennings, 1994). Although the desirable objective is for minimal soil damage due to snig tracks, codes of practice generally accept that some degree of soil rutting and puddling is inevitable under wet soil conditions. Codes therefore attempt to set tolerated limits that cannot be exceeded. For example, the Tasmanian Forest Practices Code prescribes that the area of snig tracks should not exceed a maximum of 10 percent of the harvest area. Operations must cease if soils form a slurry to a depth of 200 mm or are rutted to a depth of more than 300 mm below the original ground surface over a 20 m or longer section of snig tracks (Forest Practices Board, 2000b). By the use of matting and cording on snig tracks, forest contractors have developed independently a method that virtually achieves a zero level of soil damage in suitable operations.

Shovel logging refers to harvesting systems that use excavators or tracked loading machines with log grabs (grapples) to lift and move logs while the harvesting machine is stationary. Logs are passed from stack to stack or in a continuous ribbon across the coupe to the landing. Shovel logging can reduce soil disturbance substantially because excavators have comparatively low ground bearing pressures due to their large tracks; generally their tracks are stationary while logs are being moved, and the logs are lifted primarily or slid along other logs rather than being dragged behind a machine. Shovel logging has environmental and economic advantages over conventional ground-based skidding. It can be more productive over snig distances of up to 200 m (CSIRO, 1997) and can facilitate RIL under wet conditions that would preclude conventional skidding. Shovel logging is highly suitable for clearfell operations and can be used in partial harvesting regimes provided that damage to the stems of residual trees can be minimized.

Partnerships among government agencies

Forestry is often subject to regulation by separate governmental agencies that have specific responsibilities for a single use (such as wood production, wildlife, water and recreation). A multi- agency approach can often fail to fully integrate the forest uses and values (Ellefson et al., 1997) and can lead to an adversarial approach and increased bureaucracy (Gasser, 1996; Eddins and Flick, 1997).

In Tasmania, we have tried to overcome the traditional adversarial relationship between “production” and “conservation” agencies by fostering a partnership approach. The development of agreed procedures for the management of threatened species within wood-production forests is described below as a case study. Case study - management of threatened species within wood- production forests

Tasmania’s Threatened Species Protection Act was introduced in 1995. The Director of National Parks and Wildlife administers the Act and a permit from the director is required if human activities are likely to disturb the habitat of threatened species, as listed in the schedules to the act. About 40 percent of forestry operations potentially occur within the habitat range of threatened species, particularly in relation to the more wide-ranging forest-dependent species such as the wedge-tail eagle (Forest Practices Board, 2000a). Prior to the act being introduced, the Forest Practices Board had worked closely with the Parks and Wildlife Service and other scientists to establish efficient and effective procedures for the management of threatened species in areas subject to forestry operations. Over the years, these procedures have been refined into a comprehensive and sophisticated computer program that helps FPOs to make many routine decisions at an operational level. In addition, the collaboration with external scientists has resulted in them developing a much better understanding of forest management for wood production, rather than adopting an ideological opposition to it. This collaborative approach has now been formally endorsed in a partnership agreement between the Director of National Parks and Wildlife and the Forest Practices Board. The agreed procedures form part of the Forest Practices Code, and continuing training, research and monitoring support them. This approach has mutual benefits. For the forest industry, the management of threatened species is covered by a streamlined, efficient process that allows FPOs to make scientifically validated decisions on routine matters with a minimum of bureaucracy. In return for this benefit, the industry is prepared to fund further research and development as part of a program of continuing improvement. For the Forest Practices Board, it means that the scientists can devote their time to further research and improvement. For the Parks and Wildlife Service, self-management by the forestry sector frees up its staff to work in other areas, particularly in non-forest areas where the availability of procedures and resources are highly deficient.

Partnerships between the forest industry and the rural community

Until recently, forestry operations in Tasmania have been confined largely to the heavily forested, very lightly populated parts of the State. In recent years, tensions between the forest industry and rural communities have arisen because of changing land use. A rapid acceleration in the establishment of forest plantations on cleared farmland in more settled areas has been one outcome resulting from a broader change in traditional patterns of agricultural land use. At the same time, many people from an urban background are settling in rural areas for lifestyle reasons. Opposition to forest plantations stems from a myriad of issues, which include: shading of residences and crops; effect on water quality and quantity; fire protection; use of herbicides; and loss of visual amenity.

The response of the forest industry has been to develop a Good Neighbour Charter, in partnership with the main representative body of the rural sector. The charter sets out a commitment for consultation and negotiation with neighbours on planned operations. Generally, there is an acknowledgment by all parties of a need for give and take. Often, the negotiations lead to the voluntary adoption by industry of forest practices that are well in excess of the minimum requirements of the Forest Practices Code. At the same time, direct consultation with neighbours generally leads to a more pragmatic and reasonable outcome than might otherwise result from a more bureaucratic or adversarial approach.

Some examples of outcomes negotiated between neighbours and forest companies under the Good Neighbour Charter approach:

● Companies often substantially modify the use of chemicals within domestic water catchments.

● Neighbours have agreed to share the cost of fences or other animal control measures to protect crops from browsing damage and reduce the use of poisons.

● Companies have established short-rotation Christmas tree plantations rather than longer rotation plantations in special areas to avoid issues such as shading or loss of scenic views from rural residences.

● In situations where major bridge and road construction may lead to a temporary increase in stream turbidity, companies have provided water tanks to residences that normally extract water directly from forest streams. CONCLUSIONS

The requirements to strive for sustainable forest management can place increasingly onerous demands on the resources and skills that are available within both the governmental and private sectors. The regulation of forest practices in Tasmania involves a large number of landowners and forest companies. Neither the government nor the majority of forest companies would, in isolation, have the resources to deliver best-practice forestry across all sectors in an effective and efficient manner. Collectively, partnership arrangements have facilitated the development of a very progressive forest practices system through the sharing of resources and responsibilities.

Codes of forest practice need to be complied with if they are to be effective and credible. Compliance can be achieved through either a cooperative or adversarial approach. Regulatory frameworks that adopt a highly prescriptive approach often become increasingly bureaucratic and process-driven. Partnerships by their nature require a cooperative approach, with mutually agreeable outcomes. The continuing challenge for Tasmania’s forest practices system is to maintain a spirit of cooperation and to avoid the seemingly inevitable regulatory spiral that would lead to a more bureaucratic and litigious system. This means a commitment at all levels to the maintenance and further development of partnerships among all key stakeholders.

RECOMMENDATIONS

1) RIL should be implemented where possible through an approach that fosters cooperation between government and other stakeholders.

2) Formal partnerships among government and other stakeholders should be considered and developed where appropriate to:

● clarify the rights, roles and responsibilities of all parties; ● optimize the sharing of resources and skills; ● establish mutually agreed standards, and minimize ongoing disputes; ● develop efficient processes and avoid unnecessary duplication and bureaucracy; and ● provide structures and incentives to encourage best practice through continuing improvement.

ACKNOWLEDGMENTS

Ken Felton and Thomas Enters kindly provided valuable comments on a draft of this paper. I gratefully acknowledge the support and assistance of the conference organizers and my sponsors - FAO and the Tasmanian Government and Forest Practices Board.

REFERENCES

CSIRO. 1997. Report of CSIRO forestry and forest products 1996/97, http://www.ffp.csiro.au/publicat/reports/1996- 97/index.html

Eddins, K.M. & Flick, W.A. 1997. The criminal aspects of environmental law - an evolving forest policy. Journal of Forestry, 95(7): 4-8.

Ellefson, P.V., Cheng, A.S. & Moulton, R.J. 1997. State forest practice regulatory programs: an approach to implementing ecosystem management on private lands in the United States. Environmental Management, 21(3): 421-432.

Everett, M.G. & Gentle, S.W. 1977. Report of the Board of Inquiry into private forestry development in Tasmania. Report to the Parliament of Tasmania, Parliamentary Paper 25, 1977, Government Printer, Hobart.

Forest Practices Board 1999. Annual report 1998-99, Forest Practices Board, Tasmania.

Forest Practices Board 2000a. Annual report 1999-2000, Forest Practices Board, Tasmania. Forest Practices Board 2000b. Forest practices code. Forest Practices Board, Hobart, Tasmania.

Forestry Tasmania 1998. State of the forests report 1998, Forestry Tasmania, Hobart.

Garland, J.J. 1996. The Oregon Forest Practices Act: 1972 to 1994. In: Dykstra, D.P. and Heinrich, R. (eds.) Forest Codes of Practice - Contributing to environmentally sound forest operations. Proceedings of an FAO/IUFRO Meeting of Experts on Forest Practices, Feldafing, Germany, 11-14 December 1994, FAO Forestry Paper 133, IUFRO and FAO. pp. 33-42.

Gasser, D.P. 1996. Lessons from California’s forest practices act. In: Dykstra, D.P. and Heinrich, R. (eds.) Forest codes of practice - Contributing to environmentally sound forest operations. Proceedings of an FAO/IUFRO Meeting of Experts on Forest Practices, Feldafing, Germany, 11-14 December 1994, FAO Forestry Paper 133, IUFRO and FAO. pp. 117-121.

Gunningham, N. & Sinclair, D. 1999. Environmental management systems, regulation and the pulp and paper industry: ISO 14001 in practice. Environment and Planning Law Journal, 16(1): 5-24.

Hanna, K.S. 1997. Regulation and land-use conservation: A case study of the British Columbia Agricultural Land Reserve. Journal of Soil and Water Conservation, 52(3): 166-170.

Wilkinson, G.R. 1999. Codes of forest practice as regulatory tools for sustainable forest management. In: Ellis R.C. and Smethurst P.J. (eds.), Practising forestry today, Proceedings of the 18th Biennial Conference of the Institute of Foresters of Australia, Hobart, Tasmania, 3-8 October 1999, pp. 43-60.

Wilkinson, G.R. 2000. Implementing a code of forest practice - the Tasmanian experience. In: Bulai, S., Tang, H.T., Pouru, K. & Masianini. B. (eds.), Proceedings of Regional consultation on implementation of codes of logging practice and directions for the future. Field Document No. 3 RAS/97/330. Pacific Islands Forests and Trees Support Programme, Suva, Fiji. pp. 192-200. Wilkinson, G.R. & Jennings, S.M. 1994. Regeneration of blackwood from ground-stored seed in the North Arthur forests, northwestern Tasmania. Tasforests, 6: 69-78

Wilkinson, G.T. 2000. Matting and cording of snig tracks. Forest Practices News, 2(4): 1-2.

[27] US$1 = A$1.92 (July 2001).

23. Progress towards RIL adoption in Brazil and Bolivia: driving forces and implementation successes - Geoffrey M. Blate*, Francis E. Putz** and Johan C. Zweede***

* Corresponding author, E-mail: [email protected]

** Botany Department, University of Florida, P.O. Box 118526, Gainesville, FL 32611-8526, E-mail: [email protected]

*** Fundação Floresta Tropical, Tv. 14 de Abril #1464, CEP 66063- 140, Belém, Pará, Brazil, E-mail:[email protected]

INTRODUCTION

Many tropical countries have designated large proportions of their forests for timber production because of the enormous economic potential. Although forests managed for timber will not replace protected areas as storehouses of biodiversity, they can be a key component of landscape-level conservation strategies if they are managed well (Putz et al., 2000a). These premises have led international development agencies to promote better forest management in the tropics. Reduced impact logging (RIL)[28] is considered the first step in this direction (e.g. Hendrison, 1990; Pinard and Putz, 1996; Uhl et al., 1997; Holmes et al., in press).

RIL provides standards for mitigating the forest management (FM) activity (i.e. timber harvesting) that causes the greatest ecological impact and, as such, is considered a necessary (though not sufficient) step towards achieving sustainable forest management (Holmes et al., in press). RIL reduces soil and canopy damage (Johns et al., 1996; Pinard and Putz, 1996), future crop tree mortality (Holmes et al., in press), and the likelihood of catastrophic fires (Holdsworth and Uhl, 1997). Thus, RIL is a key component of forest management FM[29].

Despite consistent results regarding the ecological benefits of RIL, results from studies comparing the financial benefits of RIL with conventional logging (CL) vary. One study from Southeast Asia found that RIL costs substantially more to implement than conventional practices (Tay, 1999). In contrast, most studies from South America have shown that RIL is financially competitive with CL (Barreto et al., 1998; Boltz, 1999; Holmes et al., in press; BOLFOR unpublished data). The results from Brazil and Bolivia highlight the cost savings that result from increased operational efficiency as well as the marketing benefits that result from planning. Bolivia and Brazil[30] have made substantial progress towards RIL implementation in recent years, but RIL practices are far from universal in either country. Various factors explain the persistence of these poor practices (Putz et al., 2000b). This paper aims to address three principal questions: (a) Which producers are adopting RIL? (b) what specific RIL elements are being adopted? and (c) what factors are motivating or impeding the adoption of RIL?

The information presented here is based on our collective field experience and open-ended interviews with individuals working in the forest sector in each country. We interviewed 12 people in Brazil (including four company owners and three foresters) and 13 in Bolivia (including four company foresters). The four Bolivian companies[31] hold concessions - located in all three principal forest types (dry, transitional and wet forest) - covering about one million hectares. The area represented by the seven Brazilian companies[32] interviewed is about 800 000 ha.

BACKGROUND

Brazil: geography, land-use trends and forest ownership

The Brazilian Amazon (~500 million ha) accounts for about 60 percent of Brazil’s total land area and nearly 90 percent of its remaining natural forests. The Amazon Basin is the most diverse terrestrial region on earth and provides numerous goods and services at local, regional and global scales. About 75 percent of the Brazilian Amazon’s land area is forested (Lele et al., 2000). About 15 percent has been cleared for cattle ranching and agriculture and an unknown but substantial proportion has been burned (Nepstad et al., 1999). The mean annual deforestation rate in 2000 was nearly 17 000 km2 with about 80 percent of this conversion occurring along the southern and eastern perimeters (INPE, 2000) and within 50 km of the Amazon’s four major road networks (Lele et al., 2000). Hunting (e.g. Robinson and Bennett, 2000) and a marked increase in fire frequency (e.g. Cochrane et al., 1999) also cause large-scale forest degradation.

It is difficult to make generalizations about appropriate land uses in the Amazon. Much of the remaining upland forest is on highly weathered, infertile soils that render the land unsuitable for extensive permanent agriculture (e.g. cattle ranching). A recent study (Schneider et al., 2000) concluded that 83 percent of the remaining upland area is better suited for forestry activities rather than agriculture or cattle ranching, land uses the government subsidized for many years. Kauffman and Uhl (1990) estimated that the area appropriate for forestry has a commercial timber stock of about 60 billion m3. With few exceptions, however, the government has not zoned areas according to optimal land uses, a task complicated by the complex and conflicting patterns of ownership.

Although indigenous and extractive reserves, protected areas and national forests cover sizable areas, private individuals, families, or large companies own much of the remaining forestland in Brazil. The government established national forests more than 20 years ago in part because of their potential for timber production, but also to protect mineral resources. Although early efforts to focus timber production in the national forests foundered (because of agricultural subsidies and the availability of cheap timber from land clearing), the Brazilian forest service (IBAMA) is keen to establish a stronger system of national production forests. The government is also relaxing policies prohibiting forest management for timber production in indigenous communities. Despite these trends, most of the activities in the Brazilian forest sector occur on private land.

Bolivia: Development challenges

Bolivia contains some of the largest and most diverse tracts of intact tropical and subtropical forests outside of Brazil. Bolivia’s 48 million ha of natural forests cover nearly 50 percent of the country and include dense evergreen forests in the north (wet Amazonian forest), deciduous and semi-deciduous forests in the eastern lowlands (dry and transitional forest) and submontane moist and wet forests in the Andean foothills (Pacheco, 1998). An extensive system of reserves protects large and representative portions of the country’s forests.

One of the greatest development challenges facing Bolivia is its geography. Commerce is limited by the fact that the Andes occupy the western third of the country and the Amazon the northern fourth. These features have slowed the development of a transportation network. Coupled with a relatively low human population concentrated in the altiplano, this has helped to keep Bolivia’s deforestation rates relatively low (~2 000 km2 or 0.3 percent/yr; cf. Fredericksen, 2000) until recently.

During the past few years especially, an expanding road network, subsidies for large-scale mechanized agriculture and increased migration from the altiplano to the lowlands have accelerated forest clearing (Fredericksen, 2000). The weak judicial system increases the risk of invasion by these migrants into forests (private, indigenous and concessions) and causes a general state of land insecurity. Fires associated with agriculture and ranching add to the insecurity felt by many forest owners. Fires have destroyed or degraded massive forest areas; 1.6 million ha burned in one month in 1999 alone (Cordero, 2000).

Like Brazil, Bolivia suffers from a host of land ownership conflicts and land-use zoning problems. Although most of the country has been surveyed for best land uses according to soil characteristics, this information is either poorly used or not used at all (Pacheco, 1998). The overlap of indigenous territory and forest concessions is commonplace (Fredericksen, 2000). Many concessions are also located within a mosaic of agricultural fields and cattle ranches, a situation that increases fire risk.

The growth of the forest sector

Brazil

Brazil is the largest timber producer in South America and the largest tropical wood consumer in the world. In the Brazilian Amazon, the forest sector employed about 5 percent of the region’s workforce (~500 000 people) and generated about US$2.2 billion in 1998 (Lele et al., 2000). About 90 percent of Brazil’s hardwood production comes from the Amazon (Schneider et al., 2000) and 90 percent (~34 million m3 annually) is consumed domestically (Table 1). Although the forestry sector only comprises a small percentage of Brazil’s total economy, it figures prominently in the Amazon’s economy. Between 1993 and 1995, most people employed in the sector were involved in extraction operations in natural forests (Lele et al., 2000).

Recently, Brazil has developed new national policies supporting the continued development of the forestry sector. The government wants to increase its share of well-managed forest and certified timber on world markets by 10 percent in the next few years. In addition, the government launched a new National Forest Program (PNF) in September 2000. The PNF aims to establish more than 20 million ha of Amazon forest for sustained timber production and to reforest 600 000 ha per year with much of the effort occurring in the Amazon. Recognition of the importance of forestry to the Amazon economy, and the provision of federal support for the sector, are relatively recent phenomena.

Until the mid-1970s, logging in the Amazon was mainly an extractive activity occurring in the varzea (flooded forest), despite a major FAO initiative 20 years earlier to promote forest management in the uplands (Pitt, 1969; Knowles, 1971). Typically, people living along rivers extracted relatively few trees (3-5 m3/ha) by hand from the varzea causing minimal environmental impact[33] (Uhl and Vieira, 1989; J.C. Zweede, pers. obs.). Spurred by government subsidies for roads, colonization programs and agricultural development, migrants with mechanized equipment moved from southern and eastern Brazil to the Amazon’s upland forests[34]. In these uplands, landowners did not view forest management for timber production as a viable activity; the forest was an impediment to development and the government provided financial incentives to clear forest. High-grading of forests reduced the amount of material to be cleared and helped fund the process of land conversion to cattle ranching.

Table 1. Forest sector characteristics of the Bolivian and Brazilian Amazon

Characteristic Bolivia Brazil Source Population (million) 8.1 165 Bolivia: World Bank 2000; Brazil: estimates predict population in the Amazon will be 27 million by 2010 (Lele et al. 2000) 1998 GNP/capita 1 000 4 800 Bolivia: World Bank 2000; (US$) Brazil: Lele et al. 2000 Land ownership >80 percent > 90 percent Bolivia: Superintendencia concessions held private Forestal 2000; Brazil: by private (including Schneider et al. 2000 companies; unclaimed remainder TCO, federal land); ASL, and private national and land state forest system being promoted Distance (km) to Wet: >1 500; West: >2 000; Bolivia: GM Blate pers market or port Transition: <500; South: >1 200: obs.; Brazil: JC Zweede dry: <1 000 East: <500 pers obs. 1999 timber production 690 66 885 Both: ITTO 1999; Brazil’s (1 000 m3) include plantation production from southern Brazil 1999 wood exports 12.6 2.8 Both: ITTO 1999. Brazil’s (percent of total figure include southern production) Brazil

In the late 1970s and 1980s, cheap resources along the new roads and colonization schemes drove the rapid expansion of timber-product industries (Veríssimo et al., 1992). Few species were exported and most of the lesser- known species were sold at low prices in local markets. In the 1990s, relatively high prices for timber products and decreasing availability of Asian plywood allowed the Brazilian plywood industry to grow extremely fast, utilizing many of these poorly known species for export. As a result, timber procurement began expanding from areas near highways and the frontier into the whole Amazon Basin.

By the early 1990s, reduction in subsidies for agriculture and new laws passed in the late 1980s that regulated forest use began to limit the hitherto free natural resource available to the burgeoning industrial sector (Holloway, 1993). During this period, IBAMA instituted a variety of new regulations. In particular, it began to demand forest management plans from producers. Lacking practical experience in FM-RIL, most producers could not implement their “sustained yield forest management plans.” Most plans existed mainly on paper, and the few that were implemented were technically flawed. As late as 1997, most management plans approved by IBAMA were mere formalities and actual practices continued to degrade forests (EMBRAPA, 1997). Despite this dire situation, certain parts of the sector have improved (see below).

Bolivia

Much of Bolivia’s natural forest is state owned and the government, which controls its use, has designated about half (~28 million ha) for timber production. This designation is based in part on land-use suitability and in part on available timber volumes. Despite the apparent rationality of such a zoning scheme, forest management was practically nonexistent prior to the mid 1990s because the forestry sector focused on three high value, but sparsely distributed, species: mahogany (Swietenia macrophylla), cedar (Cedrela odorata) and Spanish oak (Amburana cearensis). This selectivity resulted in low yields (~0.25 m3/ha) and much of the value of the timber was lost through poor felling practices and inefficient extraction and processing (Gullison et al., 1996). The extensive search for these species benefited relatively few individuals, but opened large expanses of forest for exploitation; few forest areas in Bolivia have been unaffected by these practices.

Given Bolivia’s weak economy and lack of institutional capacity, forestry regulation has historically been ineffective. Furthermore, promoting sustainable forest management was a low priority in national-level policies. The 1974 forestry law prohibited log exports in an attempt to develop value-added processing. But the law, and the regulatory agency created to enforce it were inadequate and management plans, and management were practically nonexistent (Fredericksen, 2000). Finally, in the mid-1990s, the increasing scarcity of the most valuable species, along with new institutions and legislation markedly changed the industry’s practices.

In 1996, the government passed a strict forestry law (BOLFOR/MDSMA, 1997) that mandates environmentally sound management practices in all production forests. Among the many specific prescriptions codified in the legislation itself and in the technical guidelines that followed it are harvesting restrictions based on the principle of sustainable yield. Forest management enterprises[35], must submit a multiyear forest management plan (FMP) and annual operating plans (POA). Harvesting rights depend upon the approval of both FMPs and POAs by the Superintendencia Forestal (SF), a new forest service created by the law. Inventories, covering one percent of the entire forest area under the FMP, as well as 100 percent censuses[36], covering the annual management unit, are required. In the census, companies must report densities and volumes of all species they intend to harvest. The provisions for seed trees (20 percent of individuals above the diameter limit of each species harvested), diameter limits and an area-based tax (that replaced the volume-based tax) encourage companies to harvest a variety of species, many of which have low value or are not well known in the market.

Over the next five years, the government wants to approve FMPs covering at least 11.5 million ha. In 1999, the SF approved management plans covering about six million ha. The vast majority (>80 percent) of these plans were for concessions (40-year renewable contracts) held by private companies. The SF also approved FMPs for community associations (Agrupaciones Sociales del Lugar - ASLs) and indigenous communities (Tierras Comunitarias de Origen - TCOs), though at present these cover much smaller areas. Likewise, privately owned forest, for which harvesting rights are also subject to approval by the SF, comprised only about three percent of the total production area.

Although some estimates place Bolivia’s potential annual timber production capacity at more than 24 million m3 (ITTO, 1996), it is likely that silvicultural treatments will be necessary to realize this potential. Furthermore, producers must also find markets for the numerous species comprising this volume estimate. Although the SF approved the extraction of more than 1.5 million m3 of timber during 1997-2000, the producers’ actual harvest has been only 30-50 percent of this total (Superintendencia Forestal, 2000). The unharvested volume largely consisted of species with very low market prices. With a weak economy, poor processing capacity, lack of national policies supporting the sector and limited market access, Bolivia’s forestry sector faces many challenges. Nevertheless, from 1996-2000, Bolivia has made great strides in harvest practices, institutional capacity and the implementation of laws and regulations.

PROGRESS TOWARDS RIL IMPLEMENTATION Brazil

Until the mid-1990s, there was little reason for optimism about the prospects for FM in the Amazon. At that point, however, IMAZON rekindled interest in FM by demonstrating that RIL implementation is technically and financially feasible (Johns et al., 1996; Barreto et al., 1998). The Tropical Forest Foundation’s Brazilian subsidiary, Fundaçao Floresta Tropical (FFT), continued, expanded and operationalized IMAZON’s research efforts through a major demonstration, research and training program that catalyzed interest in applying RIL among a wide variety of stakeholders (Blate, 1997; Holmes et al., in press; FFT, 2000). In the central Amazon, Mil Madeiras began applying RIL on an industrial scale. The government of Acré drafted state policies supportive of FM. The government of Mato Grosso, in partnership with FFT, similarly instituted several projects to promote better FM practices. The federal government, also in collaboration with FFT, established a RIL demonstration in the Tapajós National Forest. Recently, it also developed progressive policies to ensure that harvesting practices do not compromise the Amazon’s other values. These and other efforts indicate that progress has been made and improvement is likely to continue.

Between 1995 and 2000, the number of companies beginning to adopt (or expressing interest in adopting) key aspects of RIL dramatically increased. In 1995, almost no companies were conducting 100 percent inventories, making maps, or applying practices to minimize damage and waste or maximize harvesting efficiency. By 1999, four companies, with management areas covering some 81 000 ha, had incorporated planning and other pre-harvest RIL elements in their operations. In 2000, six companies, with more than 385 000 ha, were implementing key aspects of RIL and several others requested technical assistance to do so.

Bolivia

Despite Bolivia’s minor status as a tropical timber producer, it has become a leader among tropical countries in terms of its progress towards the implementation of forest management. The term “forest management” is emphasized here because the various institutions working in Bolivia to improve forestry over the past decade have tried to address a wide array of activities. Beyond helping companies to comply with technical aspects of management and the law (e.g. completing a census and preparing management plans), these institutions have also worked to resolve land-title disputes, to improve mapping capacities and to disseminate information about the numerous benefits that derive from proper forest management. Institutions like CADEFOR have also helped companies to improve their business management and marketing skills and have emphasized the need to improve processing efficiency.

Before 1996, FM and RIL were practically nonexistent in Bolivia. Although perhaps one or two companies were starting to implement RIL components to increase efficiency and reduce harvesting costs, most were still high-grading mahogany and cedar. But the new forestry law imposed extensive changes on the forest sector and essentially required companies to practise RIL (Nittler and Nash, 1999). In the five years after its enactment, about one-third of the 40-plus companies holding concessions have made significant progress towards complying not only with the letter, but also the spirit of the law’s technical requirements. Seven of these companies are certified and others are seeking certification (Table 2). Bolivia has more certified natural forest than any other tropical country (Nittler and Nash, 1999). Still, more than half the companies holding concessions remain unwilling or unable to go beyond minimum compliance with the law.

CHARACTERISTICS OF COMPANIES IMPLEMENTING RIL

To assess the impact and significance of the fact that RIL implementation grew from 1995 to 2000, it is important to explore how the producers that have begun to adopt FM-RIL differ from those that have not. In this regard, this section describes the characteristics shared by most companies that have begun to adopt RIL.

Table 2. Certified forest areas in Bolivia (From FSC 2000)*

Enterprise Ownership Forest Type Area (ha) Amazonic Sustainable Enterprises, Inc. Private Mixed-natural/plantation 30 000 Aserradero San Martin S.R.L. - Cinma Concession Natural 166 228 Pando Aserradero Tarumá Ltda. Concession Natural 83 467 Central Intercomunal Campesina del Communal Natural 52 000 Oriente de Lomerio (CICOL)/APCOB Compañia Industrial Maderera Ltda. Concession Natural 87 562 (CIMAL) - San Miguel Compañia Industrial Maderera Ltda. Concession Natural 67 904 (CIMAL) - Velasco Empresa Agroindustrial La Chonta Ltda - Concession Natural 120 000 Lago Rey Empresa Agroindustrial La Chonta Ltda - Concession Natural 100 000 La Chonta Empresa Aserradero San Martín S.R.L. - Concession Natural 119 200 Cinma-San Martin Industria Maderera San Luis S.R.L Private Natural 58 619 Total 884 980

* Internet Document: www.fscoax.org

Brazil - large, vertically integrated companies with access to capital

A mutual aspect that companies beginning to adopt RIL in Brazil share is that they (i) are all large and vertically integrated with access to capital and substantial forest areas; and (ii) all have invested in appropriate technology and have trained or hired qualified personnel (Table 3). Moreover, none of these companies faces any immediate risks of invasion by colonists or of catastrophic fire, both of which would certainly dampen any interest in long-term investments. CIKEL has a unique advantage over most companies in the sector because of its size and its proximity to at least four good markets: local, northeast and southern Brazil, and export. The relative security perceived by many companies that are now implementing RIL figures prominently in their decision to obtain certification, which is an indicator that they are committed to long-term management.

Table 3. Classification of companies making progress toward RIL implementation in the Brazilian Amazon

Company category by progress Company names and area owned Total forest toward RIL implementation (ha) area (ha) FSC certified companies that Mil Madeiras - 76 000 363 000 practise RIL Gethal - 41 000 CIKEL - 206 000 Jurua - 40 000

Companies that have gone Rosa Madereira - 24 000 24 000 through the process and are awaiting conclusion of certification; practise RIL Companies that have gone EMAPA - 15 000 15 000 through precertification and practise RIL Companies that have not Treviso/FLONA Tapajos - 3 300 45 300 requested certification but practise FUNTAC/Antimari State Forest - 42 RIL 000 Companies that expect to be 7 companies - names not available 186 000 certified in the future and practise many components of RIL Companies that practise some 11 companies - names not available 96 000 components of RIL and are improving TOTAL 26 companies 749 300

Bolivia - large, well-organized companies with multiple concessions and diverse products

In contrast to Brazil, few if any Bolivian companies have substantial capacity to invest in technology or training, although several are finding ways to do so. Although colonization pressure has been historically low, the recent wave of migration from the altiplano has increased pressure and nearly every company in Bolivia has been affected. Additionally, some concessions are also claimed as indigenous territories, a threat to the security of forestry companies that has increased since the 1996 agrarian reform law (Pacheco, 1998). Thus, land tenure is not as secure in Bolivia as it is for the companies in Brazil that have begun to adopt RIL. Finally, none of the companies has particularly good market access and all must contend with long transport distances. Like the advanced companies in Brazil (Table 3), however, the Bolivian companies making the most progress towards RIL implementation are also typically large. The most advanced, such as CIMAL/RODA, San Martin and La Chonta, Ltd. have multiple concessions in different regions, produce a diverse array of products from various species, and are sufficiently organized so that the area-based tax does not affect them greatly. Companies like CIMAL, which were trying to diversify species’ use before the 1996 law came into effect, have had a much easier time making the transition to RIL required by the 1996 law.

CERTIFICATION

Brazil - growing interest

At present, only four companies are FSC[37] certified in Brazil, but others have taken concrete steps in this direction (Table 3). Mil Madeira was the first to remain certified from 1997 to 2000. This company differs from many others in the Amazon because it benefits from ample foreign investments and is situated in the Free Trade Zone, which allows it to import equipment and materials that are taxed elsewhere in the Amazon. Despite initially failing to make a profit, the Swiss owners and the company’s supporters are committed to achieving sustainable forest management.

Gethal obtained certification in mid 2000 after receiving technical assistance from FFT. Although the company has been operating near Manaus for many years, it had been criticized for buying its wood from third parties and thus could not vouch for the quality (or legality) of its sources. This problem is not uncommon for many mill owners in the Amazon. Gethal decided the best way to proceed was to purchase land (~40 000 ha) and manage it according to the RIL practices. Now, one-third of the timber the company needs for its mill comes from its own certified forest, another third comes from Mil Madeiras and the remainder it buys from the open market.

Two other companies, Jurua Madeiras and CIKEL, were certified recently. Jurua Maderias, which has a mill and owns 40 000 ha is also receiving technical assistance from FFT, the Center for International Forestry Research and EMBRAPA. CIKEL owns more than 200 000 ha in eastern Pará and has hosted FFT’s RIL demonstration and training program since it began six years ago. Despite its direct involvement, the company remained skeptical about the feasibility of adopting RIL practices. In 1999, that attitude changed and the company made a commitment to adopt RIL. The principal reason for doing so, according to the owners, is that they had become convinced - based on the results of a cost-benefit study (Holmes et al., in press) - that the practices would improve their profits. Obtaining certification is a means to improve the company’s image and obtain access to certain markets (although only 15 percent of their production is for export).

Bolivia - a world leader

As mentioned above, Bolivia leads the world in terms of hectares of natural tropical forest certified. At present, nine forests with a total area of about 900 000 ha (Table 2) are certified and an area nearly that size is likely to be certified in the next few years.

One of the principal drivers of certification has been BOLFOR, a joint endeavour of USAID and the Bolivian Ministry of Environment and Sustainable Development, established in 1993 to improve forest management in Bolivia. BOLFOR played a substantial supporting role during the shaping of the new forestry law as well as during development of the technical guidelines required for its implementation. From its inception in 1993, BOLFOR has endeavoured to link improvements in management practices with processing, markets and certification (Nittler and Nash, 1999).

Most companies in Bolivia believe that certification is “...beneficial both from the perspective of the balance sheet, and in the way that certification has changed the image of forest industries in the eyes of the general public in Bolivia” (ENS, 1999). The director of field operations for La Chonta, another certified company, also mentioned that although certification does not necessarily provide a green premium, it does provide market access. The forester for a third company noted that her company would have all of its concessions certified, but resource-use conflicts with colonists essentially disqualified two areas. This fact points to the weak governmental capacity to resolve tenure disputes and when it is legally warranted to provide tenure security.

It remains to be seen whether the enthusiasm in Bolivia for certification will continue when large areas in Brazil become certified. The dominant view in the sector appears to be that certification provides an advantage in a market environment in which it otherwise could not compete with Brazil and also enables sales of lesser-known species that may not otherwise have markets.

REGIONS MAKING THE MOST PROGRESS TOWARD RIL

Brazil

RIL implementation progress in natural forests in Brazil has been the most dramatic in two distinct regions: eastern Pará and the Itacoatiara region of Amazonas. Although in 2000 most companies operating in eastern Pará were still apparently conducting business as usual (i.e. unplanned logging by untrained and weakly supervised crews), CIKEL’s and Jurua’s commitment to RIL has generated interest throughout the region. Likewise, in the Tapajós National Forest, CEMEX has made substantial progress toward implementing RIL. Gethal and Mil Madeira have provided the same leadership in the Itacoatiara region. In Mato Grosso, the state-run PROMANEJO sponsored several projects from 1996- 2000 that persuaded several companies (e.g. Baecari Madeiras and Angeli Madeiras) to adopt RIL and provided training for them to do so. In Acré, FUNTAC has begun implementing RIL in the State Forest with political support from the governor.

Bolivia

RIL implementation in Bolivia appears to be less region-specific than in the Brazilian Amazon. Part of this parity is simply because Bolivia is much smaller. An alternative explanation is that several of the most advanced companies hold concessions in different regions to diversify their resource base.

ELEMENTS OF RIL IMPLEMENTATION

This section focuses on the specific practices that companies in Bolivia and Brazil are starting to adopt. The comments apply principally to the companies described above (see Tables 2 and 3) because they have made the most progress towards RIL implementation. We note, however, where the implementation of certain RIL elements is occurring more widely. In all cases, our comments represent our best guess of how widely the components of RIL are being implemented (see Table 4 for a summary). This section also begins to examine why companies are starting to implement certain RIL elements and not others.

Planning

The companies that have begun to adopt RIL practices have made the most progress in pre-harvest and harvest planning. In Bolivia, part of the reason for this trend is that companies may not legally harvest any trees until the SF approves their annual operating plans (POA). In both countries, however, companies making the transition to RIL appreciate that planning increases their efficiency and reduces operational and equipment maintenance costs. To develop an acceptable POA, a company must conduct a 100 percent census of merchantable trees so that it can make maps for harvest planning. By 1999, the SF had approved a total of 241 POAs (all ownership categories) covering nearly 180 000 ha and a volume to be harvested of 1.4 million m3. In Brazil, IBAMA recently released guidelines for development of POAs quite similar to those in Bolivia; these also require the basic RIL planning elements. Although the first official POA was written last year, several companies in Brazil have made planning a central part of their field operations. The census, harvest planning maps, and other pre-harvest RIL elements are also prerequisites for FSC certification, which is already important in Bolivia and becoming so in Brazil.

It is important to note that the 100 percent census almost invariably is limited to crop trees. Most companies still believe it is too costly to include future crop trees in the pre-harvest inventory. However, not including future crop trees impedes any attempt to reduce felling damage, much less plan subsequent harvests. Interviewees seemed to understand the importance of future crop trees and indicated that their sawyers attempt to avoid hitting them whenever possible. Several companies in both countries have also established research programs to develop more efficient census systems and to determine whether their investments in RIL are in fact reducing damage. The upshot is that most companies recognize that they will eventually have to address the issue of future crop trees as it clearly relates to cutting cycles and future yields.

Companies adopting RIL have also made substantial progress with mapping, harvest planning and road planning and construction. Mapping and harvest planning are linked to the census, but some companies still do not take advantage of these cost-saving tools despite complying with the census requirement. In Bolivia, PROMABOSQUE, the technical arm of the Forestry Chamber, processes census data and makes maps for every member company. No such clearinghouse exists in Brazil, but several companies have invested in data analysis and mapmaking technology. Most company representatives we interviewed explained that improving and reducing their road networks are among their most important achievements to date. Several companies in Bolivia explained that a large share of the 50-70 percent reduction in field costs is attributable to road planning and the consequent construction of fewer kilometers of roads.

Vine cutting is recommended in the technical guidelines issued by IBAMA and the SF for most forests in both Brazil and Bolivia and in all but the driest commercial forests in Bolivia. Few of the companies are placing much emphasis on this RIL element, although nearly all are doing something. In Brazil, it appears that cutting vines less than six months in advance of the harvest does little to reduce felling damage (FFT unpublished data). Yet, some companies in both countries are cutting vines only 1-3 months before harvesting, if at all. One company forester claimed that cutting vines too far in advance made the forest more dangerous because, as they dry, they fall on the heads of workers. The companies that are most in compliance with the recommendations cut vines at the time of inventory (usually >9 months before the harvest). But, in few cases are workers thorough, and often many vines remain in crop trees at the time of harvest. In addition, as far as we are aware, no companies are cutting vines on future crop trees.

Table 4. Extent to which specific FM-RIL practices have been implemented by producers in the Bolivian and Brazilian Amazon from 1995-2000. Numbers are on a scale of 0-4; 0=no companies and 4 = all companies.1

Practice Bolivia certified Bolivia non- Brazil west Brazil east certified Forest Management Plan 4 4 2 3 approved2 Annual Operating Plan 4 4 1 3 approved3 Annual operating coupe 4 3 2 3 demarcated4 100 percent census > 4 3 1 2 DMC5 Mapping6 4 4 1 2 Vine cutting7 3 2 1 2 Minimum road & skid trail 3 2 1 3 network8 Bridges and culverts9 3 2 2 3 Log decks10 3 2 1 2 Crop trees marked11 4 3 2 3 Crop trees checked12 2 3 1 3 Future crop trees marked13 1 0 0 2 Directional felling14 3 2 0 2 Low stumps15 4 3 1 3 Maximum bole and branch 2 2 2 3 use16 Road/skid trail planning 3/2 2 2 3 Skidding w/minimal soil 2 2 2 2 disturbance Watercourse protection17 3 2 2 3 Maximum bole and branch 2 2 2 3 use16 Road/skid trail planning 3/2 2 2 3 Skidding w/minimal soil 2 2 2 2 disturbance Watercourse protection17 3 2 2 3 Seed trees and/or other 4 4 2 2 efforts for regeneration18 Safety equipment19 2 2 2 3 No hunting20 4 2 2 3

1 Brazilian producers are assessed in two classes: east refers to companies situated east of Manaus; west refers to companies operating, e.g. in Acre. Extent of implementation is on a 0 to 4 scale; 0 = no one; 1 = few; 2 = some; 3 = most; 4 = all.

2 In Bolivia and Brazil, Forest Management Plans must describe pertinent biological, social and economic aspects of the forest area under management. In Bolivia, the Superintendencia Forestal (SF) must approve FMPs; in Brazil, IBAMA fills this role.

3 The annual operating plan must provide adequate detail about all activities in a particular year; emphasis is given to areas to be harvested. Details on the number of individuals and volume of each species harvested must be included. These details must be based on a 100 percent census of the area to be harvested.

4 The area(s) to be harvested in a particular year must be clearly demarcated. Boundaries must be consistent with those stated in the annual operating plan.

5 The census requires all crop trees above the diameter limit (DMC), which varies by species. Locations of individuals must be recorded and diameters measured. The monitoring agencies also require volume estimates.

6 The SF and IBAMA require various maps, the most detailed of which indicate crop tree locations as well as the road network. 7 This is legally required on an “as needed” basis. Thus, most companies that cut vines are not thorough. In addition, some even cut vines just a few months in advance, which has no demonstrated benefit.

8 Difficult to legally mandate as the road and skid trail area needed depend on tree density and distribution, topography and other factors. Nonetheless, this practice refers to efforts to build and maintain a road network that is appropriate for the site and causes the least amount of ground disturbance possible. The companies that have made progress in this regard have reported significant cost savings by adopting this practice.

9 Refers to proper construction and maintenance and the fact that river crossings should be kept to a minimum.

10 Refers to construction of log decks that cause disturbance to the least ground area possible and fewest number of trees possible as well as the appropriate positioning of decks for optimal skidding efficiency.

11 At a minimum, crop trees are marked so sawyers can find them, but trees are also marked with tags (and once cut, with paint) for chain of custody purposes.

12 Although sawyers visually check trees for defects and signs of rot, this practice refers to insertion of the chainsaw blade to check for internal hollows.

13 Refers to tagging and marking with visible paint or flagging all potential future crop trees (=stems below the DMC of commercial and potentially commercial species).

14 Refers to deliberate selection of a felling direction to avoid collateral damage and waste, improve safety, and facilitate skidding. All companies performing this practice list safety as their first priority. Some companies list facilitating skidding as their second reason for directional felling. Others list avoiding damage to future crop trees.

15 Refers to reducing felling waste by cutting stumps as low to the ground as possible.

16 Refers to reducing felling and bucking waste by using as much of the bole and branches as possible.

17 Refers to retention of riparian buffers according to legal requirements.

18 Bolivian law requires 20 percent of all crop trees to be retained; Brazilian law has no such provision. 19 Law requires use of standard safety equipment including hardhat and appropriate footware for all forest workers. Sawyers and machine operators must also use ear and eye protection. Sawyers must also use safety gloves and leg protection. In most cases, workers do not use this equipment because they claim it is uncomfortably hot, which they argue increases their fatigue and creates a greater safety hazard.

20 Hunting is supposed to be controlled according to law, and certifiers strictly prohibit use of wildlife for feeding forest workers.

HARVESTING

Felling

Compared to planning, the implementation of RIL elements associated with harvesting is less impressive. For example, despite numerous training courses in directional felling, good techniques with proper attention to safety are still far from being universally applied. To be fair, sawyers are doing a better job of cutting low to the ground and are taking steps to avoid splitting the butt log. Most companies in Brazil (see Table 3) also require sawyers to test trees for hollows. Progress in these areas is particularly noteworthy in certified forests. What is generally lacking, however, is consistent protection of future crop trees and other advanced regeneration. As noted above, part of the problem is that future crop trees are neither marked nor released from vines. In other cases, supervisors place higher priority on felling so as to facilitate skidding rather than to protect future crop trees.

Skidding

Ironically, despite all the effort and money spent on planning, skidding remains one of the most poorly implemented RIL elements. Although proper layout of skid trails can reduce skidding costs by 38 percent and ground area disturbed by 50 percent (Holmes et al., in press), proper implementation of this method is complex and technicians need experience to do it well. Even FSC certified operations observed in Bolivia and Brazil did not attempt to plan or mark skid trails. Where they have tried to do so, the layout has often been illogical. Notably, however, all company representatives interviewed claimed that they were beginning to take steps to improve skidding. They all seemed to recognize that the costs from all preceding activities will only be compensated by increased production if good skidding planning is implemented.

One constraint facing many operations in Bolivia is that when logs of valuable species are left on the ground for more than a day they are rendered unmarketable by attack from blue stain fungi. These logs must be transported to the mill, sawn and loaded into drying ovens quickly to avoid being stained. To do so, many companies tightly link the felling and skidding operations. In these cases, skidder operators attempt to follow tracks cut by census crews, although without the aid of flagging, they occasionally simply search for the most direct path to the log deck or road without much regard for damage to future crop trees. Another consequence of linking the sawyer and skidder into a crew is the substantial “down time” for the operators and equipment, while one operator waits for the other to finish the task.

Wood-use efficiency

Minimizing wood waste is being implemented to varying degrees depending on markets and species. Though planning reduces (or ideally eliminates) the problem of “lost logs” (Johns et al., 1996; Holmes et al., in press), most companies do not make maximum use of stems and few make an effort to use branches. Part of the problem is that the volume gained by taking branches and hollow stems appears to be insufficient to outweigh the associated hauling costs. The standards mills have for the quality and size of logs they are willing to process is another aspect of this problem. The enforcement of minimum diameter limits for logs creates a legal constraint that also discourages use of branches or logs below the diameter limit.

Companies in Bolivia that are harvesting high-value species have made the most progress in terms of maximizing the volume harvested for each tree cut. The finding that branch wood can comprise up to 40 percent of the volume of merchantable wood for several high-value species motivated CIMAL/RODA to utilize as much of the wood from each tree as possible. Other companies are starting to move in this direction, at least with the highest-value species.

In Brazil, the story is similar, although distance to the mill seems to be a key factor. Mill owners in Paragominas, the major wood-processing centre in eastern Pará, are now accepting logs with up to 50 percent defects and more than 53 species (J.C. Zweede, pers. obs.). CIKEL, which is about 200 km from Paragominas, has also lowered its mill standards and is accepting smaller logs with more defects after realizing how much of their resource was being wasted[38]. Further away from good markets, however, companies are still taking only the best portions of the best logs.

Seed trees

The retention of seed trees is required by law and for certification; all companies considered here have adopted this practice. The technical guidelines, however, are based merely on a precautionary guess rather than on good life-history data that would allow predictions about the future stocking of the commercial tree species. Nevertheless, Bolivian companies appear to be complying with the requirement to retain 20 percent of merchantable stems of each species. Preliminary research indicates that this blanket prescription is excessive for some species and inadequate for others (see also Sist et al., in this volume). Furthermore, for several commercial species, seed tree retention must be combined with other silvicultural treatments (e.g. soil preparation and gap enlargement) to enhance natural regeneration effectively. Based on these results, some silviculturalists in Brazil are working to change the seed tree retention prescriptions, as in Bolivia.

Supervision Although nearly every company has field supervisors, many do not have a trained field supervisor overseeing felling and skidding crews. In Brazil, most companies starting to adopt RIL (Table 3) have invested in technicians and place them with harvest crews. Of the four companies interviewed in Bolivia, only one indicated that they had field supervisors overseeing felling and skidding.

FACTORS AFFECTING RIL IMPLEMENTATION

Motivating forces

Productivity and cost

The primary factor that seems to be driving the implementation of RIL in Brazil is increased productivity and reduced harvesting costs, at least for companies with their own land. In Bolivia too, every company now implementing RIL or moving in that direction, is motivated by the greater efficiency and reduced costs that derive from the ability to plan. Once companies realize that they are using their own resources inefficiently, they become more willing to adopt at least those elements of RIL that can reduce timber waste and reduce costs. This relationship seems to depend on proximity to markets and market security; the greater the market access or the more secure the market, the more a company appears willing to adopt RIL. It also depends on the internal capacity (e.g. business management, organization, etc.) of the company to actually plan harvesting operations based on the information the census provides. In Brazil, FFT’s and IMAZON’s cost-benefit studies, which show that RIL is cost-effective, have helped to explain the advantages of adopting RIL. In Bolivia, BOLFOR studies (and internal research by companies) have played a similar role.

Law/enforcement

In contrast to Brazil, a principal factor driving RIL implementation in Bolivia is the 1996 forestry law. Although by no means simple, the task of enforcing this law has been facilitated by at least three key conditions. First, and foremost, was the creation with the law of a new forest service, which has prided itself on being efficient and transparent. Although the SF lacks the capacity to visit every forest with a management plan, it has a staff of well-trained technicians distributed throughout the main production centres in the country (R. Gúzman, pers. comm.). The directorate of the SF’s technical division, which reviews FMPs and POAs, conducts site evaluations, and provides permits and certificates of origin, emphasized the youth and commitment of the SF’s technicians and foresters, features that provide a solid foundation for the SF’s tasks. It is also important to note that efforts by crafters of the 1996 forestry law to reduce the potential for influence from wealthy forestry companies and other political pressure seem to have been effective[39].

Another condition that facilitates the SF’s task is the existence of various tools built into the new law designed to aid the SF, combined with the fact that most of Bolivia’s production is from concessions over which the SF has considerable authority. Although the SF does not have the capacity to evaluate every FMP and POA on site, the possibility of a site visit apparently is a strong impetus for many companies to comply with the law. The SF should also pass on more responsibility to the foresters who sign these plans; the fact that these foresters are legally accountable means that they can be prosecuted if the plans are invalid or improperly implemented (W. Cordero, pers. comm.). To cover the entire territory, the SF[40] relies on control at timber-processing centres and transportation checkpoints where certificates of origin with species and volumes on board must be shown to inspectors. Although timber can be, and often is, confiscated when documents are not in order, this reliance on checkpoints is the weakest link in enforcement and highlights the SF’s need for additional field capacity.

Finally, the new law in Bolivia changed the old volume-based tax, which did not penalize high-grading of the most valuable species, to an area-based tax meant to encourage companies to use the resources available on their lands efficiently (Fredericksen, 2000). There is still much debate about the fairness and effectiveness of this tax and much controversy about revenue distribution (i.e. how, to whom, how much). Nevertheless, because companies must pay an annual tax for their entire concession (even when they only harvest a small portion in a particular year) they are motivated to plan and improve the efficiency of their activities.

Although Brazil’s forestry laws and technical norms have been updated, enforcement is often ineffective. The fact that nearly all of Brazil’s forest extraction activities occur on private land greatly complicates the task, as does the wide range of sizes and kinds of producers and difficult logistics resulting from great distances. Moreover, until recently the regulatory personnel responsible for enforcing compliance with RIL guidelines were not trained adequately. FFT has worked closely with IBAMA field staff to reduce this barrier and by late 2000 there were signs reflecting a growing commitment to improving enforcement.

External pressure/monitoring

A third factor that is motivating companies to adopt RIL in both Bolivia and Brazil is pressure from NGOs, the public, the government, and increasingly the market. Some NGOs (e.g. WWF and Greenpeace) have played a central role in raising awareness about the poor state of logging and about the importance of the Amazon in general. Others have provided key data about the limits and opportunities for forest management in the Brazilian Amazon (e.g. IMAZON, IPAM, etc.) and in the Bolivian Amazon (e.g. BOLFOR; Pacheco, 1998). Some NGOs, like IMAZON in Brazil and BOLFOR in Bolivia, have been successful in persuading government officials to translate their scientific findings into more progressive policies. The pressure and awareness raising have also led to the development of a forestry culture in both countries. The public process involving numerous stakeholders for development of Bolivia-specific FSC criteria and indicators for sustainable forest management, for example, was important in this regard (K. Pierront, pers. comm.). In the eastern Amazon, FFT has played a similar catalytic role by bringing together stakeholders in seminars, conferences and meetings.

Certification Along with the new forestry law, certification has been the principal motivating factor for implementing RIL in Bolivia (Nittler and Nash, 1999). Most companies either already implementing RIL or in the transition to RIL want to be certified because of the perception that it opens and consolidates markets. Since internal demand for timber is small in Bolivia, the export market is vital and access to it is increasingly dependent on providing an adequate supply of timber from well- managed sources. This is especially true for European markets that are increasingly closed to non-FSC certified wood products. Internally, as well, companies are keen to improve their image, which has been tarnished by years of predatory practices. Another attraction of certification is that the SF’s annual audits are replaced with audits every five years. Finally, because the gap between complying with the law and becoming certified is so small, becoming certified is attractive (Jack, 1999).

The importance of certification, though less than in Bolivia, is growing in Brazil. For example, in the cases of CIKEL, Gethal, Jurua and Mil Madeira, the adoption of RIL was linked to an interest in obtaining certification. One can infer that these companies and others like them perceive that the markets in which they sell their products are beginning to demand timber from well-managed sources. As Gethal and Mil Madeira sell many of their products overseas, their decision seems quite rational. CIKEL, however, must be taking a much longer perspective since it sells most of its timber domestically. Although the market in Southeast Brazil does not currently demand certified timber, several NGOs, government officials and international donor representatives want to generate demand in the region for certified timber. For CIKEL, the long-term perspective is also concerned with the realization that RIL is the best way to manage its resources.

Technical assistance

A fourth factor that has been central to the adoption of RIL is the availability of technical assistance. One of the biggest obstacles to the adoption of RIL continues to be lack of qualified people at all levels. In Brazil, a large difference can be observed (in terms of RIL implementation progress) between the regions and companies that have benefited from training or demonstration and those that have not. FFT has played a pivotal role in this regard by providing hands-on, practical training in various aspects of RIL. The training courses along with a variety of extension activities have helped to catalyze interest in FM among a wide array of stakeholders. Two important consequences of FFT’s program have been a steady increase in demand for RIL and the incorporation of RIL components into IBAMA regulations.

In Bolivia, WWF provided key technical assistance in the early 1990s and BOLFOR’s program continued and expanded those efforts throughout the decade. BOLFOR’s assistance has been extensive, providing technicians on the ground to help companies (and now communities) to develop forest management plans and annual operating plans, as well as to install growth and yield plots, conduct censuses, analyse data and prepare maps. Yet, company managers had to take some initiative to capitalize on BOLFOR’s assistance, and those who remain reticent or convinced that the new law and its requirements are unjust have not benefited. Furthermore, some organizations now need to focus on providing technical assistance with implementation.

Dwindling timber supply

Another factor that appears to be relevant to RIL adoption in Brazil is dwindling timber supplies near the main timber-processing centres. Transport distances have increased by 65 percent in the past 5-10 years as the valuable species close to mills have been exhausted. The resulting increase in stumpage value is pushing companies to treat the resource somewhat more carefully. In contrast, at the logging frontier in Brazil, dwindling supplies do not seem to be influencing the adoption of RIL. In Bolivia, the fact that the most valuable species (e.g. mahogany, cedar and Spanish oak) have already been logged from most forests creates a situation resembling that in the older timber-processing centres in Brazil. Companies must also extract a sufficient volume of lower-value species to cover the costs of the area-based tax. This seems to provide some impetus for the adoption of RIL.

Impeding factors

This section summarizes some of the most important factors that impede RIL implementation in Brazil and Bolivia. It is not an exhaustive discussion of the disincentives for RIL or forest management in general.

Misunderstanding the benefits of FM-RIL

In many parts of the Brazilian Amazon and among at least half the producers in Bolivia, the perception that RIL implementation is too costly is still prevalent. In these cases, it is usually the landowners or similar level decision-makers who lack an understanding of the feasibility or benefits of RIL and who, therefore, continue using the old unplanned practices. As noted above, part of the problem is that the technical assistance and extension efforts have not reached all potential audiences. This problem is especially true in the Brazilian Amazon because of its size and number and variety of producers. Another part of the problem, however, is that the practices being promoted based on positive cost-benefit results pertain to a range of conditions, but are not necessarily valid everywhere or for every company. Although institutions like FFT and BOLFOR have developed a range of options and alternatives appropriate to different kinds of producers, much more operational research is needed.

Forest management not a principal interest

In many cases, especially in Brazil, but also in Bolivia, landowners and company managers are still not interested in forestry, but are simply using logging revenues to subsidize their ranches or farms. This is related to the decades-old attitude that the forest is an impediment to development, but also to the traditional need to clear forest to secure land tenure. Indeed, many of the risks landowners and concessionaires now face are a function of land conflicts.

Risks and disincentives Squatters, timber thieves and colonists represent a significant deterrent to the implementation of RIL. Forest managers do not want to census an area only to find that illegal loggers have already cut their marked harvest trees. In Bolivia, this problem is exacerbated by the lack of a strong judiciary to help resolve land disputes or provide security for concessions or landowners. In addition, there is broad consensus among stakeholders in the Bolivian forest sector that the government needs to promulgate and implement national level policies to support the sector. These stakeholders assert that forestry is not a priority for the Bolivian government, despite its potential contribution to sustainable development. The Brazilian government, in contrast, has established policies reflecting its commitment to conserving, albeit through sustainable use, their Amazonian forests. Nonetheless, landowners in Brazil also must contend with the risk of illegal logging and squatting.

Other significant impediments to RIL adoption include fire, which perhaps represents the greatest risk to forests in both countries, as well as the limited infrastructure, tariffs and access to capital. Transportation networks, though expanding into many formerly inaccessible areas, limit market access in both countries. The limited network is also significant because it increases road transport costs, which may comprise as much as 60 percent of total costs for the industry. Government tariffs on imported equipment represent another barrier to the adoption of RIL especially in Brazil, where taxes on technologies that increase efficiency and reduce damage are equal to the value of the product. In both countries, access to credit at reasonable interest rates is difficult if not impossible due to strict bank lending policies (e.g. Pacheco, 1998). Without credit, many companies (especially smaller ones) are unable to invest in essential equipment and materials, or in training and supervision.

Markets

The lack of markets represents a major impediment to adoption of RIL in both Brazil and Bolivia. Although some companies in Brazil have excellent market access thanks to their geographic location, many do not. Poor market access limits the species (Figure 1) as well as the quality of the stems that companies can harvest profitably. The same holds true in Bolivia, although the companies with concessions in wet forests situated furthest from Santa Cruz (Figure 1) - the main commercial centre for the sector - are harvesting the most volume and most species (because they have both).

Figure 1. Forestry challenges in Bolivia and Brazil The fact that several Bolivian companies have invested in certification reveals a flaw in this reasoning; improving market access is a principal factor motivating companies seeking certification to adopt RIL. In fact, because of the country’s small population, weak economy and traditional use of nontimber substitutions for construction, Bolivian companies must rely on external markets. This presents a further difficulty for many Bolivian (and Brazilian) producers because external markets have strict specifications for size and quality and at present, their processing facilities cannot satisfy these specifications. All of this points to a serious challenge for Bolivian companies: becoming competitive in the global market.

Human resources

The lack of trained and qualified people at all levels in the forestry sector, from chainsaw operators to marketing departments, is perhaps the biggest impediment to RIL adoption in both countries. Although numerous training courses have been held and a substantial number of individuals have been trained at all levels, there is still a major need for further activity. For example, in Brazil FFT has provided RIL training or technical assistance to nearly 300 technicians and foresters from 1995 to 2000 (Figure 2), but has had to turn away many individuals due to limited space in courses (FFT, 2000). As more companies become convinced of the benefits and cost-effectiveness of RIL, demand for qualified human resources will only increase.

Figure 2. Growth in RIL training provided by FFT in Brazil from 1996-2000

CONCLUSIONS

Summary

Many companies in Bolivia and Brazil have made substantial progress toward the adoption of RIL practices between 1995 and 2000. Large, diversified and well- organized companies have progressed most in this regard. In general, these companies have adopted the RIL elements that increase efficiency, reduce costs, improve marketing and enable companies to comply with the law. Mostly, these elements encompass planning. Still lacking is implementation of the RIL elements that particularly benefit the forest, including directional felling and skid trail layout to protect future crop trees, minimal impact skidding and watercourse protection. Producers must also improve supervision of felling and skidding crews. Finally, although many sawyers are now leaving low stumps, producers could still greatly increase their timber utilization.

Many factors influence the degree to which companies are adopting specific RIL elements and these factors differ somewhat between Brazil and Bolivia. In Bolivia, improving market access by becoming certified is probably the most important reason why companies have adopted many RIL practices. The 1996 forestry law and its enforcement by the SF undoubtedly has accelerated the pace at which companies are moving toward certification in Bolivia. In Brazil, the most important factor driving RIL adoption has been the increased efficiency and cost savings derived from the adoption of the planning elements of RIL (Table 5).

Given the size and complexity of the Amazon Basin, generalizations about the factors impeding RIL adoption must be viewed with caution. Nevertheless, several factors appear to be important obstacles to RIL adoption in both Brazil and Bolivia (Table 6). First, the perception that RIL is prohibitively expensive is still common among forest (or company) owners and senior managers. Second, RIL adoption is especially limited where risks from fire and squatters and insecure land tenure prevail. Great transport distances, weak processing capacity, poor organization and management and limited stocks of commercial species also seem to be important impediments. Finally, lack of trained people at all levels (practitioners to managers) is an important impediment to RIL adoption throughout the region.

Table 5. The importance of factors motivating the adoption of RIL in Bolivia and Brazil (on a scale of 0-4, 0=not important, 4=most important) from 1995-2000

Factor Bolivia Brazil Law/enforcement 3 2 Efficiency/save $$ 3 4 Public (NGO) pressure 1 1 Certification/markets 4 2 Technical assistance 3 4 Image/good for forest/safety 2/1/2 2/1/2

Table 6. The importance of factors impeding the adoption of RIL in Bolivia & Brazil (on a scale of 0-4, 0=not important, 4=most important) from 1995-2000

Factor Bolivia Brazil Think RIL too costly 4 4 Lack of understanding 3 3 FM not main interest 2 4 Disincentives 3 3 Insecure land tenure 4 3 Risk of fire, squatters, etc. 4 3 Lack of trained people 4 4 Lack of proper equipment 1 2 Low volume of valuable spp. 3 1 Poor markets 4 2 Credit unavailable 3 3 Cheap timber available 1 2

Recommendations

We conclude with a list of actions that we believe will consolidate and expand the progress made to date toward RIL implementation in the Amazon. These key steps include:

● More training for personnel at all levels.

● Trained supervisors overseeing felling/skidding crews.

● More research to develop and test region-specific best-management practices tailored to the needs of different kinds of producers (e.g. small landowners, communities, etc.).

● More training and demonstration efforts that target producers that have made less progress toward RIL implementation.

● Detailed elaboration of disincentives to FM and RIL in the Amazon.

● More research on tree-life histories; more rational use of permanent plot data to make logical harvest restrictions and to determine more realistic cutting cycles.

● Continued pressure for improvement by NGOs coordinated with public education campaigns that explain the importance of forests and the role of forestry.

● Stronger national policies that make better forestry a priority; remove disincentives and add incentives if possible.

● Increase the capacity of regulatory agencies to enforce forestry and environmental laws.

● Greater emphasis, in technology transfer programs, on linking forest practices to milling efficiency (greater processing efficiency translates to fewer trees needed for each cubic meter of finished product). ● Coordinated market research, especially on the use of secondary species.

● Strengthen the linkages between RIL, certification and other market-based incentives including carbon offsets.

ACKNOWLEDGEMENTS

We are indebted to the individuals who graciously shared their knowledge and opinions with us, particularly F. Contreras, W. Cordero, T. Fredericksen, D. Nash, J. Nittler and the rest of the BOLFOR staff for their support in developing this paper, and F. Boltz, T. Fredericksen and K. Gould for their critical comments on an earlier draft. Special thanks also go to R. Guzman for providing data from the Superintendencia Forestal.

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[28] See Dykstra and Heinrich (1996) for a description of the general elements of RIL. Also, see Table 4 for a list of RIL elements emphasized in this analysis. [29] The term “forest management” is considered here to be a broad concept, the meaning of which depends on the objectives of the forest owner, and does not necessarily involve timber harvesting. Here, we assume that the principal FM objective is managing timber for sustained yields and we note that FM also includes activities unrelated to timber harvesting including wood processing, business management, and marketing. “RIL” as defined here does not include silvicultural prescriptions beyond the harvest that may be necessary to achieve sustained yields of commercial species. [30] Unless otherwise noted, Bolivia = Bolivian Amazon and Brazil = Brazilian Amazon. [31] Three of these companies, CIMAL/RODA, La Chonta, and San Martin, hold 80 percent (~650 000 ha) of the certified forests in Bolivia. The fourth, Oquiriquia, is not certified. [32] At the time of the conference, only Gethal and Mil Madeiras (located near Manaus) were certified. As of June 2001, CIKEL and Jurua Madeiras (located in the eastern Amazon) are also certified. Rosa Madeiras, Jarcel and Amacol (all eastern Amazon) are not certified. [33] It is important to note that varzea loggers continued their activities during the migration of people to the uplands (described above) and still continue today. In fact, although the varzea provides only about 25 percent of the wood used in the Amazon, the volume harvested has grown (5-10 m3/ha) due mostly to marketing of new species. Because no one has yet devised a viable forest management plan for varzea forests and because harvesting in these forests is still relatively low impact, this paper focuses exclusively on upland forests and forestry. [34] From 1960 to 1970, the human population near the Amazon’s first highways (Belém- Brasilia) mushroomed from about 100 000 to 2 million and the number of cattle increased by four orders of magnitude to >5 million (Lele et al., 2000). [35] Includes concessionaires, indigenous groups, community associations and private forest owners. [36] The forest inventory, conducted by means of permanent sample plots, includes all tree species found in the forest area above 10 cm diameter at breast height (dbh). The census may include only crop trees above the diameter cutting limit for each species. [37] FSC = Forest Stewardship Council. FSC accredits certifiers that evaluate the practices of enterprises based on the principles, criteria, and indicators that FSC has codified, and which are largely regarded as a minimum starting point for sustainable forest management. [38] It is worth noting that many companies including CIKEL make extensive use of waste wood for charcoal for the pig-iron industry because natural coal does not exist in Brazil. [39] The SF may only be removed by the Bolivian Supreme Court; it may not be removed by the President. [40] The SF consists of one national office, 23 satellite offices, seven regional offices, and 10 control points.

24. Implementing reduced impact logging in the Alas Kusuma Group - Nana Suparna*, Harimawan** and Gusti Hardiansyah***

* General Manager, Alas Kusuma Group, Jl. Balikpapan Raya No.14, Jakarta Pusat, Indonesia 10130, Tel: ++(62 21) 6386 3807, Fax: ++(62 21) 6386 3804, E-mail: [email protected]

** Operational Manager, PT. Suka Jaya Makmur

*** Research & Development Coordinator, Jl. Adisucipto Km 5,3 Sei Raya, Pontianak 78124, Kalimantan Barat, Indonesia, Tel: ++(62 561) 72 1866, Fax: ++(62 561) 72 1583, E-mail: [email protected]

INTRODUCTION

The Alas Kusuma Group[41] has for a number of years been following the debate regarding the benefits and costs of reduced impact logging (RIL) and has been developing its capacity to implement RIL, particularly in two of its concessions in Central and West Kalimantan.

WHY ADOPT RIL?

There are basically three reasons why Alas Kusuma has become interested in adopting a RIL management system:

1. The potential for financial benefits, as a result of improved planning and operational control, is of immediate interest to the company. The obvious environmental benefits that RIL bestows on the forest fit closely with the company’s philosophy of sustainable forest management.

2. Alas Kusuma, with the assistance of a forestry project, conducted limited trials in the implementing of RIL in two of its concessions in West and Central Kalimantan. The results of these trials (Tables 1 and 2) strongly supported the assumption that RIL can provide both financial and environmental benefits. 3. Recent developments in the international market place have brought about a realization of the need to pursue forest certification. RIL is one aspect of forest management that will be accorded major significance in the criteria and indicator scoring process. Therefore, the implementation of RIL is seen as a necessary step in achieving forest certification.

INITIAL RIL TRIAL RESULTS

SBK operational RIL trial

In 1995, the Alas Kusuma concession of PT Sari Bumi Kusuma (SBK), collaborated with the USAID- funded Natural Resource Management Project (NRMP) in conducting an operational trial in which some RIL components were implemented (NRMP, 1995).

The company’s existing contour maps were used as a basis for planning a systematic harvest on a 25 ha area. Skid trails were planned, located and opened prior to the start of felling activities.

One of the main objectives of this study was to evaluate differences in productivity and environmental impact by pre-planning harvesting activities and exerting a tighter control over felling and skidding. Table 1 illustrates some of the results of this trial. A detailed study report was prepared as an NRMP project document (NRMP, 1996).

Table 1. Selected results of the trial in implementing RIL in the Sari Bumi Kusuma concession in Central Kalimantan

Trial compartment (RIL) Control compartment (conventional) Block number BB 36 V 36 Study area 25.5 ha 44.9 ha Average standing stock 9.7 trees/ha 8.8 trees/ha Average volume 55 m3/ha 47.1 m3/ha Evaluation results Actual production 46.4 m3/ha 33.8 m3/ha Felling productivity 17.4 trees/person day 14 trees/person day Skidding productivity 16.8 pieces/working day 14 trees/working day Soil disturbance (as a 4.2% 6.4% % of area logged) Crown closure 61% 42.5% Remaining future crop 56 trees/ha 41.1 trees/ha trees (20-49 cm) Avoidable waste 1.8 m3/ha 13.4 m3/ha

SJM operational RIL trial

The potential for improved harvesting economics, combined with obvious beneficial environmental results, as indicated by the initial SBK trial, prompted Alas Kusuma to attempt to duplicate this operational experiment on a slightly larger scale on its PT Suka Jaya Makmur (SJM) concession in West Kalimantan. There were two significant outcomes of this second trial.

Firstly, the potential of increasing productivity and reducing environmental impact through the adoption of improved operational planning and control, confirmed the outcome of the first trial in the Sari Bumi Kusuma concession. Table 2 summarizes some of the results of the second trial.

The second outcome was the realization that if large-scale adoption of RIL was to succeed, a number of significant improvements and changes still had to be made in the way the company organized its activities and in the technical competence of its staff.

Table 2. Selected results of the trial in implementing RIL in the Suka Jaya Makmur concession in West Kalimantan

Trial compartment (RIL) Control compartment (conventional) Block number QQQ 22 PPP 22 Study area 97 ha 100 ha Average standing stock 3.2 trees/ha 3.3 trees/ha Average volume 25 m3/ha 26 m3/ha Evaluation results Actual production 21.75 m3/ha 20 m3/ha Felling productivity 34.4 trees/person day 25 trees/person day Skidding productivity 21.9 pieces/work day 16.6 pieces/work day Soil disturbance (as a 3.96% 4.13% % of area logged) Crown closure 67% 35% Seedlings damaged 50% 67% Poles damaged 38% 53%

MANAGEMENT INITIATIVES IN IMPLEMENTING RIL

Following an analysis of the results of the two RIL trials, senior management decided to attempt to implement RIL on some of its concessions in West and Central Kalimantan. To prepare for the adoption on a larger scale, a number of steps had already been taken.

Introducing the RIL concept to management

The Alas Kusuma Group allows concession managers considerable independence in how they run their operations. The adoption of a new management system, therefore, involves a considerable amount of consensus building within the management team.

During the SJM trial, a short video was made (P.T. Suka Jaya Makmur, 1998), which documented the procedures and recorded the impressions of the forest workers as they tried to follow the different approaches. This video, along with the results of the trial, was used to inform the management and staff of the benefits of RIL. The company carried out informal ‘in-house’ workshops where results were presented and discussed. The staff was also able to discuss the problems and challenges which still need to be overcome before full adoption of RIL is achieved.

Improving procedures for operational mapping

Stock mapping and topographic mapping had been conducted in the Alas Kusuma concessions for quite some time, primarily to fulfil administrative requirements for obtaining the annual cutting permits. The SJM trial in implementing RIL showed that these maps also had an important operational function. It became clear that the accuracy of the maps was quite low and inadequate to achieve good control in the planning and implementation of RIL. To overcome this problem, in-house training was organized at the SJM Concession in West Kalimantan. It involved also personnel from other concessions. The purpose of the training was to teach inventory crews how to collect elevation data and produce accurate contour maps.

Table 3 provides a comparison between the way topographic mapping was done initially and the improvements that were achieved as a result of the training. There were additional costs in carrying out the survey and mapping more accurately, but as a component of the overall production costs, these additional costs were quite small.

Table 3. Post-training changes to contour mapping

Old method New method 1. Using baseline or boundary 1. Using baseline with starting elevation referenced to mean sea level. 2. Contours are actually form lines with 2. Contours are controlled and accurate no fixed or consistent interval 3. Form lines are sketched in the office. 3. Form lines are sketched first on the This takes about one day per 100 ha field tally sheet. Accurate contours are block. calculated and drafted in the office. This takes about one week per 100 ha block. 4. Field data collection: 12 crew days or, 4. Field data collection: 15 crew days or, 108 person days per 100 ha block. 135 person days per 100 ha block. 5. Costs: Rp.3 500 000 per 100 ha block 5. Cost: Rp.6 000 000 per 100 ha block 6. Surveyor feels unsatisfied, being 6. Survey teams feel more confident of unsure of the accuracy of the resulting the final map product because it is map. based on actual data and requires greater knowledge and skill to prepare. (It is also possible to process the field data and to produce the contour map using a computer program) 7. There is very little collaboration 7. There is an increased spirit of between different survey teams. collaboration between the survey teams and better morale.

Alas Kusuma staff have also participated in computer mapping training organized by the Tropical Forest Foundation (TFF) and the Center for International Forestry Research (CIFOR). Alas Kusuma intends to develop in- house capabilities for both manual and computer mapping for the large-scale implementation of RIL. Additional in-house training in the use of this mapping software has already been carried out and further training is planned.

Training for chainsaw and tractor operators

Alas Kusuma conducts in-house training for its forest workers such as fellers and tractor operators. This type of training is considered essential for the company’s efforts to promote and implement RIL.

Participation in external training, workshops, and study tours

The following chronology indicates the external training that Alas Kusuma staff participated in:

· July, 1998: Regional Trainers Workshop on Silvicultural Prescriptions and Reduced Impact Timber Harvesting Techniques, Port Moresby, Papua New Guinea. (One person for one month). · March, 1999: Study Tour and Training of Trainers, Sabah, Malaysia (Two persons). · September, 2000: Sent five participants on a training course organized in Bogor. The purpose of this training was to develop the capability for Alas Kusuma to process field survey data by computer[42] so that our contour mapping can be implemented more effectively. · November, 2000: RIL Training for Forest Managers held in Malinau, East Kalimantan.

Development of technical guidelines

To show its commitment to improving forest practices and to support forest workers, Alas Kusuma has developed simple, illustrated technical pocket books that demonstrate the correct ways to carry out the various harvesting activities. These pocket books have been circulated to all forest divisions within the company.

● Pocket Book 1 - RIL for Directional Felling (1998) ● Pocket Book 2 - RIL for Skidding and Skid Trail Construction (1998) ● Pocket Book 3 - A Practical Guideline of TPTI System (1998)

The company has also circulated an internal policy statement (Director of Production, 1997) to all of its concessions in West Kalimantan in support of the Ministry of Forestry policy regarding the technical requirements for planning, designing and constructing skid trails.

Internal workshop on RIL

In 1998, Alas Kusuma conducted a five-day internal workshop on RIL at Tanjung Asam in the SJM Concession. The workshop was attended by over 70 participants from all the Alas Kusuma concessions in Indonesia. The company also invited outside experts to the workshop.

The purpose of this in-house workshop was to provide an opportunity for forest managers and their staff to familiarize themselves with RIL and to share experiences on the progress and outstanding problems still preventing the widespread adoption of RIL.

It is the company’s intention to repeat this type of workshop at least every three years.

IN-HOUSE PERFORMANCE EVALUATION AND ASSESSMENT OF REMAINING CONSTRAINTS

Early efforts by Alas Kusuma in implementing RIL on a trial basis highlighted a number of problem areas, both in terms of management and technical matters. The 1998 internal workshop was the first step in recognizing and dealing with these problems. In addition, Alas Kusuma has assessed periodically its progress in improving harvesting practices and has also developed and tested its own operator evaluation forms (Appendix I). It is clear that there are still problems that need to be overcome.

Tree and topography surveys Field survey procedures for collecting tree-position and elevation data are well understood by the survey crews. The manual production of tree and contour maps is progressing well.

Recently, the company has started using a computer program for contour mapping using field data collected during the 100 percent inventory. The application of the program for data processing has highlighted some problems in the accuracy and consistency of field data collection. Accuracy needs to be improved through additional training and a greater involvement of the field surveyors in the data processing.

Harvest planning (planning of skid trail location)

The procedure and effectiveness of skid trail planning on contour and tree maps is generally understood by the technical and operational staff.

Since manual mapping procedures sometimes hide data inaccuracies, problems in the accuracy and effectiveness of the skid trail planning often result. The application of computer software to the map preparation has highlighted these inaccuracies.

Implementing skid trail plans

Attempts to implement the skid trail plans are still encountering difficulties relating to the lack of experience of the engineering crew responsible for the location of the skid trail. The result is that the skid trails are sometimes located in inappropriate locations.

This problem relates to the ability of the technicians to interpret the plan and transfer it to the field, and indicates the need for further training and field practice.

Felling

Although tree fellers generally perform well, it is clear that improvements still need to be made if optimum felling and bucking are to be achieved. Technical problems in felling have been noted. The achievement of accurate directional felling to optimize alignment to the skid trails needs to be improved. Improving fellers’ performances will require additional training. Competent trainers have not yet been identified.

It is also becoming clear that the supervision of the fellers needs to be improved. Although Alas Kusuma has developed guidelines for fellers, more needs to be done to implement the use of guidebooks and to ensure that better felling is achieved. This is seen as a management problem and is related in part, to the fact that in Alas Kusuma, as in many other companies, fellers are paid by volume. Therefore, strict supervision has never been a high priority. Alas Kusuma is investigating the possibility of linking feller performance as determined by its internal rating system to a bonus payment scheme.

Skidding

The company noted that the tractor operators are generally comfortable with the predetermination of the skid trail network since it makes their work easier. However, operators are sometimes reluctant to follow skid trails and they sometimes make their own skid trails. This problem is probably related to the fact that the technical skills of the engineering crews still need to be improved so that skid trails are always constructed in the correct location.

Also, supervision of the skidding operation needs to be improved. As with felling, tractor operators are paid on a piecemeal basis. Consequently actual field supervision of the operators has never been strongly developed. As with the fellers, proposals to link skidding performance, as determined by the company’s internal rating system, to a bonus payment scheme, are being discussed.

The availability of good quality winch cables in Indonesia is a problem. As a result, frayed cables and breakages are common. Stronger and lighter cables would be beneficial and would encourage more winching. The technical constraints make winching more difficult and create a reluctance of the skidding team to winch logs to the skid trail. The use of cable chokers needs to be encouraged.

Landing size

Trees are usually skidded full length. This makes larger landings necessary. Up to now, we have not studied this problem. The planning of landings as part of the skidding planning has not been emphasized. This activity still needs to be improved in terms of planning, establishment of bucking standards and proper liaison with production supervisors.

Post-harvesting activity

Operators are instructed to make cross-drains on skid trails as they complete their work. While most operators make some attempt to do this, we still find that this activity is not carried out very effectively. Operators are reluctant to change the blade position on machines requiring manual adjustments. This is a problem in many countries where bulldozers are used for skidding and skid trail and road closure.

This is seen primarily as a supervision problem, although the need to educate operators on the importance of carrying out this activity is also recognized. Operator evaluation

Alas Kusuma has developed an operator assessment form (Appendix I) which the company hopes to use for future evaluation of the performance of fellers and tractor operators. A field test of this assessment procedure was carried out in September 1999, in the Suka Jaya Makmur concession. The company’s internal evaluation shows that all fellers and tractor operators know the RIL requirements but that improvements still need to be made in getting the forest workers to carry out the work to RIL standards consistently (Table 4).

Table 4. Results of a trial evaluation of fellers and tractor operators using the company’s evaluation system

Chainsaw Working Evaluation score (max. Qualification operator compartment possible score of 53.4) < 55% 55- > 70% 70% C1 RRR 20 61.9 Understanding C2 UUU 19 63.3 Understanding C3 777 19 63.3 Understanding C4 UUU 21 75.8 Practising C5 UUU 22 65.7 Understanding C6 UUU 23 71.9 Practising C7 WWW 21 71.9 Practising Tractor (max. possible score operator of 85.5 < 55% 55- > 70% 70% T1 RRR 20 76.6 Practising T2 WWW 21 70.2 Practising T3 TTT 19 70.8 Practising T4 VVV 21 74.3 Practising T5 VVV 231 72.4 Practising T6 UUU 22 75.5 Practising T7 VVV 21 74.3 Practising

This is seen as both a management supervision issue as well as a technical training issue. The company is also investigating the possibility of adopting a bonus payment scheme based on the quantity and quality of work as well as the difficulty of the terrain and working environment. A profile of the operators is included in Appendix II. CONCLUSIONS AND RECOMMENDATIONS

The Alas Kusuma Group is committed to achieving sustainable forest management in all of its concessions. RIL is recognized as an important step in achieving this objective. The company perceives that RIL, if implemented correctly, can provide a net financial benefit in terms of increased productivity and lower operating costs. The environmental benefits of RIL have been demonstrated in trials carried out in the company’s concessions.

Consequently, since 1988, Alas Kusuma has been working towards implementing RIL on selected concessions in Central and West Kalimantan. While significant progress has been made, it is understood that much still needs to be done. The most necessary improvements fall into three categories.

● There is a need for further training at various levels within the company operations.

● There is a need to strengthen the company’s supervisory effectiveness to control planning and production functions.

● The company needs to investigate further the possibility of implementing a bonus payment system for fellers and tractor operators as a way of making compliance with RIL standards more effective and consistent.

In conclusion, it is felt that within the overall forest concession system in Indonesia, general implementation of RIL will only succeed on a large scale if the Ministry of Forestry ensures that all harvesting activities are carried out within an effective and transparent regulatory framework where all stakeholders are equally informed and comply equally with the regulations and laws governing the forest resource.

REFERENCES

Director Production of PT. Suka Jaya Makmur. 1997. Surat Keputusan No. 36/PH/PTK/In/VII/1997 Mengenai Ketentuan Teknis Pelaksanaan Perencanaan, Desain & Pembuatan Jalan Sarad (Internal policy statement regarding technical guidelines for planning, design, and construction of skid trails), Pontianak.

Natural Resource Management Project. 1995. A proposal for an operational trial in improved logging utilization and impact reduction in the natural production forest. Report No. 58, Jakarta.

Natural Resource Management Project. 1996. Report on an operational logging trial and the evaluation of the harvested stand. Report No. 70, Jakarta.

PT. Suka Jaya Makmur. 1998. Video Perencanaan Jalan Sarad Untuk RIL, (video on skid trail planning, design and construction for reduced impact logging). Camp Pawan Selatan, 30 min.

RECOMMENDED READING

Hardiansyah, G. 1998. Buku Saku Teknik Praktis RIL Untuk Arah RebahPenebangan Pohon di Hutan Tropis, (pocket book: Practical technique of RIL for directional felling in tropical forest), Alas Kusuma Research & Development Division.

Hardiansyah, G. 1998. Buku Saku Teknik Praktis RIL Untuk Pembuatan Jalan Sarad dan Penyaradan, (pocket book: Practical technique of RIL for skidding and skid trail construction), Alas Kusuma Research & Development Division.

Harimawan, 1998. Reduced Impact Logging: P.T. Suka Jaya Makmur, Alas Kusuma Camp Pawan Selatan.

P.T. Sari Bumi Kusuma. 1998. Buku Saku Untuk Petugas Lapangan & Mandor: Pedoman Praktis Kegiatan Pembinaan Hutan Sistem TPTI Pegunungan, (pocket book for foreman: Practical guideline of TPTI system in the tropical forest), Dept. of Forest Rehabilitation and Environment.

P.T. Suka Jaya Makmur, P.T Sari Bumi Kusuma, 2000, Prosiding Workshop: Evaluasi Pemanenan Kayu Yang Ramah Lingkungan, (Workshop Proceedings: RIL Evaluation in Concessions to Increase Efficiency, Productivity and Environmental Friendliness), Alas Kusuma, Pontianak.

Suparna, N. 1998. Pengalaman Penerapan RIL di Alas Kusuma Group (Mitra Proyek NRM-USAID), (Experiencing RIL application in Alas Kusuma Group - Cooperation with NRMP-USAID), Workshop on Silviculture and Reduced Impact Logging, Anyer, 14-17 April, 1998. DFID & DepHut.

APPENDIX I. RIL MONITORING AND EVALUATION SYSTEM FOR FOREST WORKERS

Appendix 1a.

RIL MONITORING AND EVALUATION FOR TRACTOR OPERATOR PT.: DATE: GROUP: BLOCK: LEVEL: HARVESTING AREA: NO ACTIVITIES RATE VALUE SCORE REMARKS (Max) 1 Skid trail location construction - Yes 1 6 6 Notes: - No 0 6 Total score is appointment based on score = rate X value 2 Slope topography skid trail width - maximum 4,5 M. 0.8 5 4 - > 4,5 M. 0.2 5 3 Is the skid trail tractor Level: moving? - Yes 1 4 4 A: ³ 70 (Excellent) - No 0.3 4 B: 60 £ B < 70 (Good) 4 Skid trail deviant C: 50 £ C < 60 (Average) - Yes, with supervisor 0.8 5 4 D: 40 £ D < 50 (Poor) permission - Yes, without 0 5 E: < 40 (Unacceptable) supervisor permission - No 1 5 5 Ground blading - No 1 5 5 - Yes, on > 15% slope 0.5 5 - Yes, on < 15% slope 0 5 6 Skid trail location - Yes 1 5 5 - No 0 5 7 Optimum winching technique - Yes 0.8 6 4.8 - No 0.2 6 8 Log skidded to the near log landing location - Yes 1 5 5 - No 0 5 9 Commercial log damaged by skidding - < 2% 0.6 5 3 - 2,5% 0.3 5 - > 5% 0.1 5 10 Future crop trees damaged - < 5% 0.4 5 2 - 5 - 25% 0.3 5 - > 25% 0.1 5 11 Trees labelled on the log and stump - Yes 1 5 5 - No 0 5 12 Cross-river skidding - Yes, with treatment 0.8 6 4.8 - Yes, without 0 6 treatment - No 1 6 13 Soil in water channel - Yes 0 6 - No 1 6 6 14 Winching - Yes 1 5 5 - No 0.5 5 15 Limited log landing max. 900 M2. - Yes 1 4 4 - No 0.5 4 16 Postharvesting skid trail treatment - Yes 1 8 8 - No 0 8 17 Postharvesting former log landing treatment - Yes 1 8 8 - No 0 8 TOTAL 85.6

Appendix 1b.

RIL MONITORING AND EVALUATION FOR CHAINSAW OPERATOR PT.: DATE: GROUP: BLOCK: LEVEL: HARVESTING AREA: NO ACTIVITIES RATE VALUE AMOUNT REMARKS (Max) 1 Preharvesting tree checking - Yes 1 5 5 Notes: - No 0 5 Total score is appointment based on score = rate X value 2 Pine cutting and weeding - Yes 1 6 6 - No 0 6 3 Safety lines Level: - Yes 0.6 5 3 A: ³ 70 (Excellent) - No 0.4 5 B: 60 £ B < 70 (Good) 4 Directional felling C: 50 £ C < 60 (Average) - Conformable 0.6 7 4.2 D: 40 £ D < 50 (Poor) - To steep bank 0.3 7 E: < 40 (Unacceptable) - To 0.1 6 stump/stones/streams/ravine/future crop trees 5 Cut down and back-cut - Yes 1 6 6 - No 0 6 6 Wedge used - Yes 0.5 4 2 - No 0.4 4 7 Stump barber chair - Yes 0 6 - No 1 6 6 8 High stump non-buttress trees - < 30 Cm 0.4 7 2.8 - 20 - 50 Cm 0.3 7 - > 50 Cm 0.1 7 9 High stump buttress trees - < 50 Cm 0.4 7 2.8 - 50 - 80 Cm 0.3 7 - > 80 Cm 0.1 7 10 Felling trees damaged - < 2% 0.4 7 2.8 - 2 - 5% 0.3 7 - > 5% 0.1 7 11 Future crop trees damaged - < 5% 0.4 7 2.8 - 5 - 25% 0.3 7 - > 25% 0.1 7 12 Company standard bucking - Yes 1 5 5 - No 0 5 13 Take one label, once in stump - Yes 1 5 5 - No 0 5 TOTAL 53.4

APPENDIX II

Profile of chainsaw operators Profile of tractor operators Age between 25 - 37 years. Age between 25 - 34 years. Education mostly elementary Education mostly Junior High School (2 with elementary education only) Years of experience varied from 2-14 Years of experience varied from 5-15 years years Monthly production varied from 1 000 to Monthly production varied from 1 000 to 2 000 m 2 000 m All chainsaw operators have received in- All tractor operators have received in- house training and have passed an house training and have passed an appraisal test at the Company's facility at appraisal test at the Company's facility at Tanjung Asam. Tanjung Asam.

[41] The Alas Kusuma Group is Indonesia’s third largest forest company and holds timber concessions in West, Central and East Kalimantan as well as in Sumatera. The combined concession holdings of the Group total approximately 1.1 million ha. [42] The computer program used is ROADENG developed by Softree Technical Systems.

25. Outcome-based regulations to encourage reduced impact logging - Chris P.A. Bennett*

* 3920 W. 17th Ave, Vancouver V6S 1A5, Canada, Tel. ++(1 604) 222 2049, Fax: ++(1 604) 222 2849, E- mail: [email protected]

INTRODUCTION

Widespread adoption of reduced impact logging (RIL), particularly in tropical forests, will probably remain an elusive goal wherever the forestry policy environment is overly prescriptive, dictating how to achieve sustainable forest management (SFM). Instead, the focus should be on forest management outcomes that allow site-specific adaptations as well as sufficient regulatory oversight. Forestry policy development in Indonesia from 1967 to 1999 illustrates the policy problem as well as opportunities to advance RIL.

Over 900 forestry-related laws and presidential and ministerial decrees were issued between 1976 and 1999. Fifty-eight percent of these instruments were ministerial decrees, most of which remained ‘in force’ in 1999 (see Tables 1 and 2). From the mid- 1980s to the late-1990s, the number of forestry policies doubled. During the same period, over 14 percent of Indonesia’s natural forest cover, some 17 million ha, was lost (see Table 3).

Table 1. Forestry policy development, 1967 to 1999

Forestry-related laws and Total In force Revised Revoked decrees Law (UU) 26 21 3 2 Government regulation (PP) 55 32 2 21 Presidential decree (Keppres) 53 39 9 5 Ministerial decree (SK Menteri) 490 270 94 126 Director General’s decree (SK 292 166 38 88 DirJen) Total 916 528 146 242 % 100 58 16 26

Table 2. Forestry policies issued, 1967 to 1999

Forestry-related laws 1960 - 1970-1979 1980-1989 1990-1999 and decrees 1969 Law (UU) 12 0 3 11 Government regulation 9 11 7 28 (PP) Presidential decree 0 11 10 32 (Keppres) Ministerial decree (SK 10 38 108 333 Menteri) Director General’s 1 51 55 186 decree (SK DirJen) Total 32 111 183 590 % 4 12 20 64

Table 3. Deforestation and forestry policy trends

1985 1997 1997 - 1998 Percentage forest covera 74.5 m ha 57.1 m ha 17.4 m ha (14%) Total forestry-related policiesb 229 538 + 309 (134%) issued in 1985 and 1997

Source:

a Holmes (2000): Sumatra, Kalimantan and Sulawesi

b Present analysis

The underlying problem Of this vast array of policies, most were highly prescriptive. Few were devoted to the monitoring, evaluation and regulation of actual forest health. This policy pattern was also typical for concession forest management. Inputs (e.g. financial, personnel, equipment structure), complex licensing and planning processes as well as control of over 60 percent of Indonesia’s land occupied the centre stage of forestry policy development. Forest concessionaires were more concerned with fulfilling the paper exercise of administrative requirements, which prescriptive regulations tend to generate, than with worrying about their impacts on the forest ecosystem (see Table 4). Each administrative requirement has characteristically had both formal and informal cost implications.

This paper argues that the basic problem has not been lack of enforcement and implementation but the nature of the policy framework itself. Prevalent, and often counter-productive, prescriptive regulations should be reoriented towards outcome- based policies to promote RIL as well as other aspects of SFM. Decentralization in Indonesia, whilst a much publicized threat to SFM, is also an opportunity for a paradigm policy shift (that the centre would otherwise have been reluctant to initiate) to encourage groups with access to the forest resource (whether corporate concessions or local communities) to value forests as forests. Unless this happens, widespread investment in RIL strategies will be unlikely.

RIL adoption is fostered by the following outcome-based policies: (1) establishment of secure rights of access to forest resources; (2) adequate recognition of village-based forest management; (3) reform of overly bureaucratic and prescriptive regulations that invite corruption and ineffective inspection; and (4) removal of trade and industry policies that undervalue forest resources.

The paper concludes with a section on challenges and opportunities. Acceptance of outcome-based policies faces formidable barriers from both entrenched rent-seekers and policy- makers who believe the problems of the past have simply resulted from lack of effective enforcement. Table 4. Regulation of a natural forest management concession, Central Kalimantan, 1995

Typea concession management Number of decrees, actionsb circulars, laws governing ARTICLE OF THE CONSTITUTION (UU) 1 PRESIDENTIAL DECREE (Keppres) 2 GOVERNMENT REGULATION (PP) 3 MINISTER’S DECREE (SK) 10 DIRECTOR GENERAL’S DECREE (SK) 37 or CIRCULAR (SE) LITBANG (SE)/Agency for Forest 1 Research and Development KANWIL/Ministry of Forestry’s Provincial 12 Representative (SE) DINAS KEHUTANAN (SE)/Provincial 3 Forestry Inspection and Extension Service Total 69

Source: Bennett, 1999

Notes:

a The various regulatory levels deal with land-use mapping, planning, road building, logging, log transport, replanting, community development.

b Ninety-five percent of the above results in yearly, quarterly or monthly reporting after field implementation. There are about 14 monthly reports, and four quarterly reports. Obtaining report/proposal approval related to an instruction may involve a few to several intermediate stages. The total of 69 instructions/regulations is probably an underestimate. The compiler of the regulations noted only 3 of the 20 instructions dealing with the Village Development or Bina Desa Hutan/PMDH program.

VALUING FORESTS AS FORESTS The challenge of advancing RIL in particular, and SFM in general, is to change the behaviour of major groups that extract forest resources in a way which ensures sustainability over large areas; as opposed to selecting discrete projects supported by external sources of assistance. To date, the vast array of forestry management rules and regulations in Indonesia has failed to do so. Subsidized RIL and rehabilitation have fallen far short of goals. The key challenge is how to encourage forest resource managers, be they small-scale community initiatives or corporate concessionaires, to value forests as forests (production forests as natural forest) rather than as a lucrative salvage means to a timber plantation end (Bennett, 2000).

Four major policy enabling conditions are required to persuade these groups to do this and, above all, to invest in RIL. RIL adoption will be fostered by the following outcome-based policies. Each is necessary but none is sufficient by itself to achieve a sustainable outcome:

(1) Establishment of secure rights of access to forest resources

First and foremost is the persistent problem of uncertainties surrounding rights of access to forest resources. Forest managers who face uncertainty about the future are not likely to invest in it. Rights of access to forest resources are notoriously insecure, limiting and vague. Licensing generally focuses on specific utilization rather than overall resource management. Past experience of concessions has demonstrated that without secure rights of access, forest managers will have little interest in investing in a second cut and only concentrate on safeguarding their access to primary forest. Instead of seeking ways to gain the agreement of forest villagers to participate in protecting logged-over areas, concessionaires, in collusion with forest inspectors, have been prepared to turn a blind eye to encroachment of logged-over areas to reduce the risk of encroachment into primary production forests. As long as forest tenure remains insecure and enforcement institutions weak, Indonesia’s forests will remain as open access resources. Security in public lands means leases with predictable, objective and transparent outcome-based criteria for lease extension to provide the certainty of future returns to investment such as RIL.

(2) Recognition of village roles in forest management

For too long a time, local communities have been excluded formally from forest resource management. Past policies for community participation in forest management have been unduly restrictive or half- hearted. Many village communities have long- established (adat) forest and non-forest lands that predate the granting of concessions; communities with forests within their village boundaries hold the key to protecting Indonesia’s forest resources. Typically perceived as liabilities (illegal loggers and shifting cultivators), they are potentially key assets in the quest for SFM. Being indigenous and more numerous than outsiders, they offer the only realistic means of policing the forests. They stand to lose most from forest degradation and (in collaboration with the government) should see the value of accepting responsibility for conserving some forest areas. Provided they have legal legitimacy, they can bar illegal loggers (even those with organized support) from their forest areas (Bennett, 1999).

Current policies do not recognize and defend rights and reasonable responsibilities for community-based forest management adequately (see below). Local communities generally perceive the forest as being one of several interrelated components within traditional village boundaries; they can be knowledgeable and responsible partners in dialogue about land use and allocation provided they are given genuine opportunities (as opposed to token representation) and trust in the process. Contrary to popular perceptions, there are also important opportunities for joint management between communities and corporate concessions. Unfortunately, the existing policy framework does not allow for these kinds of initiatives.

Ignoring a role for local people in decision-making over the fate of forest resources within their village areas is tantamount to inviting illegal logging and agricultural encroachment. Diligent RIL implementation by a forest concessionaire is meaningless if the forest areas are converted by people whose only hope of access rights is to farmland. They will not deter illegal loggers from making their life easier by hastening the conversion to agricultural activities.

(3) Reform of overly-bureaucratic regulations

The present system of forest regulation with its vast corpus of decrees, instructions, circulars and mandatory ‘guidelines’, has been largely ineffective while incurring high costs and inviting corruption (note the byzantine process of obtaining a concession license). In the case of natural production forests, the present regulatory framework for natural resource management is based upon highly prescriptive interventions and the regulation of inputs (equipment inventories, personnel, financial structure), none of which conveys adequate information about the actual impact of logging. Simpler and more useful regulations could be developed that focus attention less on pre- logging inputs, and more on post-logging outcomes, such as indications of actual recovery of the forest stand after logging (Bennett, 1998).

Resource managers should be left to find their own management solutions provided they stay within designated ecosystem impact thresholds, judged according to objectively verifiable measures (residual stand damage, skid trail disturbance, gap size, diameter at breast height etc.). Simpler and easier for many stakeholders (especially community forest managers) to understand, outcome-based assessments of forest management performance would also be understood more readily by other stakeholders in both central and regional agencies (journalists, NGOs, parliamentary commissions, etc.). This, in turn, might exert more pressure on forestry agencies to perform better than they have done in the past.

(4) Removal of policies that undervalue forest resources

A wide range of trade and investment policies results in the under-valuation of forest resources, by providing barriers to a competitive domestic log market and reducing demand (e.g. restrictive industry licensing and log-export restrictions). Although reducing demand is urged by many observers to reduce illegal logging, it has the perverse effects of favouring non- forest uses of forested areas, together with persuading local government that economic growth and development are in agriculture (e.g. agricultural plantation or smallholder tree crop development), not forestry (Bennett, 1999). The less valuable the forest resources, the less interest owners will have in maintaining the forest ecosystem that supplies them.

In summary, sustainable gains from higher value forest resources will occur where rights of access are equitable and secure, and extraction is bounded by reasonable and enforceable regulations. These in turn will promote investment in RIL.

Costs of prescriptive policies

The basis of forestry policy development in Indonesia has been to prescribe forest operations and organization (Bennett, 1998). In practical terms, this has meant the regulation of inputs such as:

● quantity and quality of personnel; ● equipment used; ● financial viability; ● operational budget allocation; ● research programs; and ● silvicultural inputs and arbitrary limitations, for instance:

❍ A decree that mandated the preparation of 20 seedlings for each tree cut. Evidence of 20 seedlings in a nursery is a poor proxy for sufficient regeneration in the forest, where low-impact logging usually obviates the need for any enrichment planting.

❍ Prescriptions for cut-control mechanisms can reduce the value of the forest resource while exacerbating the problem of logging waste. The volume limit in the annual allowable cut (AAC), typical of quota mechanisms, encourages high-grading. The volume of harvestable wood according to the Indonesian Selective Logging and Planting System (TPTI) standards is determined by a pre-logging inventory. The allowable volume is then calculated by reducing the inventory volume by two factors, a safety factor (0.8 percent) and a performance-based exploitation factor (e.g. 0.7 percent). In this case, for a given area, only about 56 percent of the sustainable volume can be extracted. The resulting quota or allowable wood volume is much less than the actual volume that could be harvested sustainably. In effect, the resource is over-abundant. Extraction tends to be wasteful and high-grading occurs. Slightly defective logs can be ignored; more trees than necessary are felled; economically useable wood is left behind in the forest (Klassen, 1994).

❍ Evaluation of actual harvesting impact forms a small part of the TPTI. It is rarely checked in the field. Inspectors are more likely to verify that nurseries have been established than to go into the forest.

The costs of negotiating forest bureaucracies can be high, representing foregone income for investment. Table 4 gives an indication of the problem. How much does this translate into? Industry estimates range around the US$ 10/m3 mark. Based upon administrative requirements rather than verifiable biophysical indicators of forest health, the regulatory procedures have invited endless opportunities for corruption. Without more objective performance criteria, forest managers have been powerless to object and risk licensing, permit and planning delays. Community forest managers that may yet be permitted to log natural forests would find the administrative burden prohibitive (Bennett, 1998).

Less professional forest managers welcome a way to avoid the consequences of their high-impact logging. Thus, the paperwork that prescriptive, input-based regulation generates invites mismanagement (notably bribes to evade compliance) and diverts regulatory oversight from the forest ecosystem to forest offices. It is a sad fact that, in the past, some government inspectors have been more willing to provide official services (signing of licenses, permits and approvals) to bad forest concessionaires who must ‘invest’ more in obtaining such official approvals than the better concessionaires. In short, the Indonesian experience has been that ‘licensees lie’.

THE NATURE OF OUTCOME-BASED POLICIES

Outcome-based policies favour local innovation to raise forest revenue (i.e. provided it is within acceptable impact thresholds), whereas prescriptive regulations tend to offer far less room for new approaches (activities that are not explicitly prescribed). Outcome-based policies focus on readily verifiable biophysical indicators of post-harvest recovery of the forest ecosystem, lending themselves to transparent and objective inspection systems for monitoring and evaluation. These should, as far as possible, be developed according to the characteristics of forest ecotypes. Periodically, in the light of research and practical experience, these indicators should be modified if not replaced.

In the case of natural production dipterocarp forests in Kalimantan, indicators could be damage to the residual stand, site disturbance, canopy opening, tree-diameter limits and inventory of recovering stands. The first three indicators can be assessed in the logging year itself when access to the site is easiest. The fourth would be assessed at intervals some years after logging.

Box 1. Potential indicators of post-harvest recovery for development of outcome-based forest management regulations to encourage RIL

(1) Residual stand

The incidence and severity of damage to the residual stand or pohon inti provides a direct indication of the quality of the second cut (35 to 50 years after the first cut in a lowland dipterocarp forest). According to the TPTI, no fewer than 25 trees with dbh between 30 and 50 cm should remain after logging. An alternative approach would be to replace the rule mandating a minimum of 25 residual trees and minimum dbh of 50 cm (60 cm in so-called limited production forests) for harvestable trees with minimum dbh thresholds for major species groups to be logged and no stipulation for residual trees (M. Leighton, pers. comm 1996; Nolan, 1997). This is the case for tropical forests in some other countries. The dbh for harvestable trees would be based upon knowledge of their habitat, growth and fruiting characteristics.

(2) Site disturbance

Site disturbance (ranging from superficial soil disturbance to complete removal of the upper soil layers), typically along the skid trails, is caused by the felling and extraction of trees (e.g. through the action of bulldozers, particularly where skid trails are not pre-designed and constructed). This damage affects some trees of the second cut, but primarily those recruited for the third cutting cycle. According to results from the STREK project, Bertault and Sist (1995 and 1997) suggest a conservative threshold for both parameters of around 30 percent.

(3) Gap size

The degree of canopy opening or gap size has important implications for recruitment of commercial species. Gaps that are too large will provide disproportional advantages to pioneer species and adverse microclimatic and ecological conditions for remaining trees and recruitment of desirable species. This parameter is less well understood. Suggestions for allowable gap size over say 100 ha, typically range from 10 to 30 percent.

(4) Post-harvest tree growth A fourth kind of indicator of forest regeneration could be assessed two to four years after logging by measuring the population of seedlings, saplings, poles and larger trees. Recovery of tree populations within acceptable limits of deviation from original species composition is arguably the most direct indicator of recovery of overall forest biodiversity. As such, this indicator is also a proxy for biodiversity and general ecological recovery within the forest, which could be replaced by more direct measures of biodiversity as they become practical assessment tools for regulators. Assessment of tree demography represents the most direct measure of regeneration within the exploitation cycle, but also the most difficult one because of the difficult access to sites due to vegetation regrowth. The first three indicators, however, can give an adequate indication of regeneration outcome shortly after logging.

Source: Bennett, 1998

Regulating the outcome-based ‘what’ rather then the prescriptive ‘how to’ as the goal of forest management is more likely to take into account site-specific ecological and social constraints to sustainable forest management. Forest managers should be allowed maximum freedom to decide their own resource management system within agreed and readily understood thresholds of harvesting impact that will allow recovery of ecosystem integrity. Planning remains important, but need not be a sophisticated and complex management plan (which for concessionaires can take years to be approved formally, following rigid rules of content that are not sufficiently adaptive). Management guidelines should provide forest managers with the information they need to adapt their practices to local conditions while ensuring sustainable outcomes. They should not be mandatory instructions. As a general rule, forest management regulations should not prescribe specific action but rather proscribe unacceptable impacts.

Objections. Among the objections to the concept of outcome- based policies for forest management are: (1) difficulty for field managers to understand; (2) insufficient knowledge for application to complex ecosystems; (3) risk of waiting for outcomes; and (4) some SFM requirements have to be prescriptive. The answers to these legitimate concerns are: (1) Difficulty for field managers to understand. Persons responsible for the enterprise must understand the purpose of the policies and how they will be monitored and evaluated. Thereafter, they will develop their own operational guidelines that may indeed be prescriptions for keeping within acceptable impact thresholds.

(2) Insufficient knowledge for application to complex ecosystems. If we do not know enough to establish impact thresholds, how can we know enough for prescriptive regulations? In the case of outcome- based regulations, conservative thresholds and indicators are set initially.

(3) Risk of waiting for outcomes. It is neither necessary nor desirable to wait for the final outcome of a forest management period, (e.g. lease). For example, post-harvest impacts give immediate indications of the likelihood of natural recovery; growth and yield data (as in sample plots) can give a more dynamic indication over time. Sanctions for poor performance can therefore be applied long before the end of a lease.

(4) Some SFM requirements have to be prescriptive. This is valid. Management plans need to conform to prescribed standards. Indeed, management plans form a basis for evaluating whether planned outcomes are being achieved. Other outcomes such as equitable relationships with local communities and avoidance of externality problems such as watershed degradation present particular problems. The point is that every effort should be made to hold forest managers accountable for the outcome of their actions, constraining them as little possible to find their own site-specific solutions.

CHALLENGES AND OPPORTUNITIES

Enhancing forest income for re-investment in RIL. RIL does not stand for reduced income logging. Immediate efficiency gains in labour and equipment productivity can be made from the design and pre-construction of skid trails (Klassen, 1996). There are compelling arguments about the long-term economic benefits of RIL adoption (Pinard et al., 1995). Unless, long-term profitability is enhanced through equitable and secure tenure, and policy constraints on the market value of forest resources and lower-cost regulatory procedures (formal and informal) are reduced, adoption of RIL is likely to remain confined to the relatively few enterprises that can be supported by external funding such as Clean Development Mechanisms (CDM) and carbon offsets.

Forest inspection. Implementation of outcome-based regulation obviously requires inspection services to reorient the way they operate. The inspection of forest operations must extend to the forest. This has long-term implications for training and institutional incentives. The simplicity and verifiability of outcome-based regulation lead to greater transparency, allowing stakeholders (local government, other government departments, NGOs, journalists, researchers and analysts) to observe the quality of forest management. This, in turn, could act as a proxy audit of government forest inspection services, making it more difficult for these service providers to pursue rent-seeking by threatening arbitrary and spurious accusations that forest managers are in breach of procedures. Random audits by independent inspectors of forest managers and inspectors alike would be helped by a simpler regulatory framework. Thus, outcome-based forest management regulations would allow far-reaching deregulation and debureaucratization reforms, creating a more efficient and widely-understood regulatory framework.

Regional forest stewardship performance. Such policies could also be adapted for evaluation of the performance of districts or provinces as stewards of public forest resources, and budgetary disbursements, especially resource rent taxes, being contingent on good performance. Improved and lower cost remote sensing could offer monitoring and evaluation from the local to the national level.

RIL and governance. International thinking about environmental resource management is beginning to recognize the importance of outcome-based approaches (World Bank, 2000). But powerful vested interests at national and local levels will probably oppose the kinds of policy changes proposed in this paper. (Some support for this opposition may come from the good intentions of those who feel that the only problem in the past was lack of enforcement of existing regulations.) Rent-seeking officials and short-sighted forest managers shy away from the light of more transparent and objectively verifiable indicators of SFM. During Indonesia’s preparations for decentralization, much has been made of the lack of capacity at the local government level. A more critical factor is lack of accountability of local government for the consequences of their forest resource management decisions. Heads of Regencies (Bupatis) and Regional Parliamentary Representatives (DPRD) do not readily appreciate planning beyond five years. Small-scale concessions of one year in duration have been handed out in East Kalimantan, some allegedly within existing concessions - hardly an inducement to adopting RIL. In the short term, transparency campaigns to reveal the location and ownership of all production forest leases, preferably coupled with up-to-date information of forest cover, may head off some of the more egregious misallocation and mismanagement of forest resources, empowering adopters of RIL to claim tenure security.

KNOWLEDGE GAPS AND RECOMMENDATIONS

Knowledge gaps

First, methodologies are needed for cost-effective integration of remote sensing or aerial photography with ground-based inspection of outcome-based criteria of SFM, in particular RIL. This should allow identification of the more serious impacts, especially large canopy gaps, destructive road building and encroachment and heavy impact illegal logging, which would in turn trigger closer inspections.

Second, comprehensive outcome-based regulations for RIL are required, adapted for specific forest ecosystems and the consultative process by which this can be achieved and periodically reviewed. Recommendations to encourage adoption of RIL methods

The principle of outcome-based regulations needs to be explicitly incorporated in forestry policy development. Adoption of RIL should be rewarded by allowing deregulation and debureaucratization of irrelevant regulations. This would require independent inspections.

Development agencies need to recognize that removing policy constraints to equitable and secure tenure and to increased resource value constitute powerful incentives for investment in RIL that are easier to sustain than external funding mechanisms.

REFERENCES

Bennett, C.P.A. 2000. Opposition to decentralisation of forest resource management in Indonesia. Working Paper, Development Planning Assistance, Sub-Project: SP-81 Natural Resource Management Policy under Decentralization, Bappenas - Hickling (CIDA), Draft 25 June 2000.

Bennett, C.P.A. 1999. Logging for conservation: Forest concessions as contributors to conservation in Kerinci Seblat National Park and its buffer zone. World Bank Supervision Draft Report, 22 December 2000.

Bennett, C.P.A. 1998. Outcome-based policies for sustainable logging in community forests. In: Incomes from the forest: Methods for the development and conservation of forest products for local communities, Ed. Wollenberg, E. & Ingles, A. Chapter 10, p. 203-220. Bogor, Centre for International Forestry Research.

Bertault, J.-G. & Sist, P. 1995. Impact de l’exploitation en forêt naturelle. Bois et Forêts des Tropiques, 245: 5-20.

Bertault, J.-G. & Sist, P. 1997. An experimental comparison of different harvesting intensities with reduced-impact and conventional logging in East Kalimantan, Indonesia. Forest Ecology and Management, 94: 209-218. Holmes, D. 2000. Deforestation in Indonesia - A review of the situation in Sumatra, Kalimantan and Sulawesi. World Bank, draft consultant’s report, 25 February 2000.

Klassen, A.W. 1996. Report on an operational trial and the evaluation of the harvested stand. Natural Resources Management Project, Report No. 70. MoF-Bappenas-USAID, Jakarta.

Klassen, A.W. 1994. Avoidable logging waste. Natural Resources Management Project, Report No. 37. MoF-Bappenas-USAID, Jakarta.

Nolan, T. 1997. TPTI Silvicultural system and associated harvesting activities in relation to sustainable forest management. Position Paper. Indonesian Tropical Forest Management Project, Jakarta.

Pinard, M.A., F.E. Putz, J. Tay & T.E. Sullivan. 1995. Creating timber harvest guidelines for a reduced-impact logging project in Malaysia. Journal of Forestry, 93(10): 41-45.

World Bank. 2000. Environment News, December 2000.

26. Trading forest carbon to promote the adoption of reduced impact logging

[43] - Joyotee Smith and Grahame Applegate*

* Center for International Forestry Research (CIFOR), Jl. CIFOR, Situ Gede, Sindang Barang, Bogor Barat 16680, Indonesia, Tel. +62 (251) 622 622. Fax +62 (251) 622 100, E- mail: [email protected] and [email protected]

INTRODUCTION

The Clean Development Mechanism (CDM) of the Kyoto Protocol (UNFCCC, 1997) created the possibility of trading forest carbon by allowing industrialized countries with emission reduction commitments to meet a part of their commitments by financing specified forestry activities in developing countries. Under the agreement reached in July 2001 at Bonn (COP6.bis), although improved forest management in developing countries will not be eligible for carbon credits at least for the first commitment period of 2008-2010, it will however be considered for future commitment periods (Pronk, 2001). Financing for improved forest management may also be made available from a Special Climate Change Fund, which will include activities that help countries adapt to climate change, including forestry activities (Pronk, 2001). At COP6.bis, industrialized countries pledged to provide over US$ 450 million to an adaptation fund by 2005 (IISD, 2001). The fund will also be financed from a share of the proceeds from CDM project activities (Pronk, 2001).

The United States, which rejected the Kyoto Protocol, is preparing alternatives to it. Whether any forestry activities in developing countries will be included is still unknown. However, it seems likely that some form of trade in forest carbon will be included, given that the high cost of meeting emission reduction commitments at home was one of the key reasons for the United States’ rejection of the Protocol (IISD, 2001). Therefore, although at this stage there is a great deal of uncertainty, the prospects for increased international financial flows to support improved management of tropical forests in the future are a real possibility.

The benefits from trading forest carbon have been supported strongly by those who believe that improved tropical forest management will be difficult unless forest owners and managers are compensated for the environmental services of their forests (Pearce et al., in press). On the other hand, some have argued that instead of striving for improved management, the best option for tropical forests would be outright protection or one low-intensity harvest followed by protection (Rice et al., 1997; Cannon et al., 1998). Still others have pointed out that the potential for supporting improved management with carbon payments is likely to be applicable only to niches, unless policies and institutions that impede better practices are also reformed (Smith et al., 2000). An analysis of the potential role of carbon trading in supporting improved management could therefore make an opportune contribution to the clarity of the debate.

This paper focuses on the potential for using carbon trading to stimulate adoption of reduced impact logging (RIL)-based sustainable forest management. While the incremental carbon benefits of improving harvesting alone may be rather limited, significant carbon benefits could result if carbon payments could support sustainable forest management in a favourable policy and institutional environment.

We define RIL-based sustainable forest management (SFM) as including:

● improved harvesting according to the RIL guidelines; and ● sustainable post-harvest practices, such as recommended silvicultural practices, management for sustainable timber volumes, environmentally and socially sound codes of practice and protection of the forest from “unplanned harvesting” during the rotation period.

Most codes of practice for improved harvesting include guidelines and minimum standards for reducing impact on the physical and social environment. These include downstream effects on soil and water, assisting the development of a viable residual forest stand, improving the efficiency of harvesting operations, optimizing available harvest volumes and improving the welfare of forest workers. The practices that are designed to achieve these goals include planning of skid trails, directional felling, designation of areas where logging is to be excluded and restrictions on wet-weather harvesting. Some also include guidelines for health and safety and for minimizing negative social impacts. Although SFM will not be achieved by adopting RIL alone, adoption of RIL encourages SFM by increasing logging efficiency and promoting restoration of the forest following timber harvesting. RIL is therefore regarded as an essential precondition for SFM (Hammond et al., 2000; Applegate and Andrewartha, 2000).

We draw on existing literature to analyse the contribution RIL carbon projects could make towards sustainable management of forests in developing countries. We discuss the feasibility of RIL carbon projects, briefly analyse the environmental and social co-benefits that this could have and discuss measures that could increase the likelihood of multiple benefits from RIL carbon projects.

THE FEASIBILITY OF RIL CARBON PROJECTS

Carbon trading modalities will have to specify rules for ensuring that genuine emission reductions are achieved by projects. For the purposes of this paper, we assume that the modalities will include the issues agreed at COP6.bis (Pronk, 2001). A number of these are discussed below.

Baselines Carbon credits will be given only for the difference between project emissions and baseline emissions (i.e. hypothetical “business-as-usual” emissions in the absence of the project).

We assume that the objective of the carbon project will be to achieve RIL-based SFM as described above. In the absence of the project, we assume that the business-as-usual scenario would have been conventional logging including re- entry logging (CLR). By conventional logging we mean unplanned logging, without due consideration of the physical and social environment. Under re-entry logging, we assume that repeated logging takes place at short intervals.

In contrast to our assumption of a baseline scenario of CLR, most studies comparing RIL-based SFM to conventional logging (CL) assume cutting cycles of 30 to 60 years for conventional logging as well as for RIL-based SFM (Pinard and Putz, 1996; Barreto et al., 1998; Holmes et al., 1999; Healey et al., in press; Boscolo et al., 1998). CL’s longer cutting cycle is based on estimates that cutting cycles of this length yield commercial volumes of timber in perpetuity (Whitmore, 1990; Woods, 1989; Asabere, 1987; Shepherd and Richter, 1985; Schmidt, 1991; Hawthorne, 1997). The underlying assumption is that of a permanent forest estate that is afforded some protection after timber harvesting.

In many tropical forests, the nominal 30- to 60-year cutting cycle may, however, be the exception, rather than the rule. In forests where conventional harvesting practices are implemented there is little on-the-ground supervision or management, or effective monitoring and control of the operations. Consequently, the operations are carried out with little regard for environmental standards or sustainable timber yields, and without safeguards for the protection of advanced regeneration or protection of areas required for regeneration. It is not uncommon for many areas to be logged repeatedly at short time intervals (i.e. 10 to 15 years) and because these forests often lack effective management, the areas are subject to rapid degradation and eventual loss of forest cover. In many parts of the world, these forests could expect no more than three to four logging operations before the forest becomes nonviable for commercial logging. With each successive harvest of timber, there is a reduction in the living biomass, which is a carbon sink, and an increase in the amount of dead organic material, which contributes to an increase in carbon dioxide emissions through decay and sometimes fire (Applegate, 1982). As the forest systems degrade through repeated logging at short cutting cycles, fire, and cyclones/hurricanes, they move closer and closer to shrubland or a grassland community. In these plant communities the capacity for sequestering carbon and maintaining sinks is limited due to smaller biomass for accumulation both above and below ground. The potential for grasslands, particularly those dominated by Imperata cylindrica, to burn with high levels of frequency exacerbates the situation further, resulting in additional carbon emissions.

Practices similar to the above CLR scenario have been noted in countries such as Brazil, Indonesia, the Philippines, Thailand and West and Central Africa (Uhl et al., 1997; Kartawinata et al., in press; Lasco et al., in press; Sist, 2000), with the process often taking as little as 30 years. Lasco et al. (in press) show that data on land cover changes in the Philippines appear to be consistent with extensive repeated logging at short intervals. While the increase in the area under logged- over forest in the Philippines corresponded closely to the decline in primary forest for the first few years after timber harvesting commenced, after a couple of decades, the increase in logged-over forest was markedly lower than the decline in primary forest, while the area under shrublands and grasslands increased markedly.

A number of hypotheses exist for the prevalence of premature re-entry logging. Boscolo and Vincent (1998) show that re-entry logging is likely after 10 years if logging costs in logged-over forests are lower than in virgin forests due to existing infrastructure. This makes the extraction of previously uneconomic species and tree sizes viable. Uhl et al. (1997) point out that in Pará, Brazil, local log scarcity led to increases in the price of logs and logging rights and in the number of species commercialized, thus making re-entry logging viable. The difficulty of preventing encroachment and illegal logging by outsiders is another hypothesis put forward by Kartawinata et al. (in press) for Indonesia, while Sist (2000) claims that the failure to carry out forest inventories leads to commercial species being discovered at a later stage.

The above studies and observations in many tropical countries indicate that CLR may be a more representative baseline scenario for many tropical forests than CL (i.e. conventional logging with cutting cycles of 30 to 60 years). This has significant implications for carbon sequestration benefits, for the opportunity cost of adopting RIL and for policy measures to support SFM.

There is a dearth of information on monitoring changes in the standing biomass of tropical forests and therefore carbon accumulation over long periods under different management regimes (i.e. RIL versus CLR). However, there is information based on limited measurements of forest stands of periods up to 60 years along with anecdotal evidence that provides us with a relatively good understanding of the likely scenario, given the prevailing conditions in many tropical forest environments (Pinard, 1995; Lee et al., 1996). In swamp forests in Sumatra, Indonesia, 28 tC/ha were saved by introducing manual methods of timber harvesting compared to mechanical methods (Ken MacDicken, pers. comm).

The below-ground biomass accumulation is also affected by the harvesting technique. The biomass of tropical rainforests in Southeast Asia is between 400 and 500 t/ha (oven-dry weight) with the roots and other below-ground biomass comprising about 100 t/ha or 20 percent (Rodin and Bazilevich, 1967; Applegate, 1982; Pinard and Putz, 1997). In other tropical forests in West Africa or in tropical America (Ghana and Jamaica) the total biomass is 300 t/ha (oven-dry weight) (Greenland and Kowal, 1960; Tanner, 1980). Any destruction of the above-ground biomass will lead to an increase in the amount of dead material below ground and a likely increase in carbon emissions. Details on the exact process involved in the cycling of carbon below ground and the quantity of carbon dioxide released in tropical forests are not well understood and estimates are unknown.

In Figure 1, we present in broad terms the pattern of change in forest biomass under RIL-based SFM on a 40-year cutting cycle compared to CLR where the area is managed poorly and characterized by premature re-entry logging at approximately 10-year intervals.

Figure 1. Biomass accumulation of a forest managed under RIL vs CLR

If the model is developed over a 100-year period, the first harvesting operation in a tropical forest, where the total biomass is in the order of 500 t/ha (Brady, 1997; Rodin and Bazilevich, 1967; Applegate, 1982; Pinard and Putz, 1996) is undertaken at time zero, shown as the year 2000 in Figure 1. The resultant difference in total living biomass between the RIL and CLR operations is likely to be in the order of 20 to 25 percent of the total biomass, with the RIL operations resulting in a biomass reduction of 30 percent (Sist and Bertault, 1998; Pinard, 1995; Don Nicholson, pers comm) and CLR 50 percent. These estimates are based on changes in tree numbers, severity of damage to trees (small and large) and estimates of changes in basal area (Elias 1998; Yosep et al., 2000; Jonkers, 1987; Verissimo et al., 1992; van der Hout, 1999; Pinard et al., 1995). Under RIL, less volume is removed per gross unit area of forest than under CLR if exclusion areas (stream buffers, steep areas, cultural and religious sites) where timber harvesting is not permitted occupy a significant proportion of the forest management unit.

Following the initial harvesting, the forest is likely to show little change in the carbon stored below ground, in litter and vegetation, compared with the amount removed as logs and decay as a result of trees smashed during the operation. In the RIL area, the forest is likely to begin to accumulate biomass (sequester carbon) more quickly than on the CLR site. This is due to the smaller amount of dead organic matter produced and a larger number of healthy trees and shrubs in the residual stand, and smaller gaps in the forest (reduces shock on shade- tolerant trees and less exposed soil). The CLR area is likely to experience a small delay in biomass accumulation and then, as the light-demanding and fast-growing species take advantage of the ‘open’ forest conditions, the rate of biomass accumulation will rise sharply, followed by a reduction as the fast-growing pioneer species’ growth rates slow and they reach maturity. The rate of biomass accumulation at age 20 years may then approximate that of RIL. However, some studies indicate that if the damage or loss is around 50-60 percent, it is unlikely that the likely rate of accumulation will approximate that of RIL forests (Pinard et al., 1995). The biomass storage or carbon accumulation depends on a number of factors including timber volume removed, distribution of the tree sizes (growth class) removed or destroyed, damage to the residual stand and response to the canopy openings (Pinard et al., 1995).

At age 10 to 15 years, the CLR forest is likely to be logged for a second time (Figure 1). This results in less commercial biomass removed, smaller trees removed compared to the initial harvest, additional damage to the residual stems, loss or removal of many individuals in the lower canopy and further opening of the upper canopy with additional soil exposure. Following logging, there are less advanced individual stems and fewer understorey species on which to accumulate biomass. During the first 6-9 months after the second harvest, a large number of light-demanding, fast-growing, short-lived small-sized species, such as Macaranga spp., Mallotus spp., Trema spp. and Alphitonia spp. invade the open sites and dominate these areas for at least 20-30 years (Applegate, 1992; Lasco et al., in press).

By age 40 years, the RIL area is likely to be harvested along with the CLR area. External factors influencing the cutting cycle for both types of logging include ease and cost of access to the forest, species and tree size demanded by markets and timber-processing technology.

The second logging in the RIL area is likely to result in a reduced commercial volume and a reduction in the average size of the trees harvested compared to the first harvest. Most large, mature trees of commercial value would have been harvested in the first cutting cycle, leaving those that are more uniform in size for the second and subsequent cutting cycles. The large over-mature trees with limited commercial log value at the time of first harvest are still non-commercial and if still standing, would be allowed to remain. At this time, the CLR forest would have been harvested three or four times with a likely reduction in log volume, greater damage to remaining stems and a reduced rate of recovery or biomass accumulation in the residual forest. Uhl et al. (1997) report that after 30 years, CLR results in a badly impoverished forest prone to fire and vine invasion and more closely resembling brushland. Hence in many locations, in the tropics, the forest will have been reduced to shrubland in 40 years. During each 10-15 year cutting cycle associated with the CLR operation, the forests can be characterized as having a reduction in forest biomass, more damage to the residual stand, a reduced seedling pool and stems in the advanced growth stage, a greater incidence of fire and the chance that the ecosystem will be reduced to shrubland and eventual grasslands with a biomass of 80 t/ha and 5-7 t/ha, respectively (Burrows, 1976). In places such as Southeast Asia, these grassland areas become dominated by Imperata cylindrica. The incidence of fire, which facilitates this process in places such as Indonesia, increases in times of severe drought associated with the El Niño event that occurs approximately every 4-5 years (Applegate et al., in press). During the 1997/98 fires in Indonesia, where large areas of heavily logged forest were harvested and burned, conventional logging techniques were used. Many of the burned logged-over areas had an understorey cover of fast-growing, short-lived tree and shrub species dominating the site. The situation in many areas has worsened with further degradation of the sites towards grassland with fewer large live trees remaining for regeneration. In some situations, the whole process may be interrupted by conversion to another land use. This becomes more and more likely as the value of the residual forest decreases with each perturbation. Increased incidence of fire in logged-over forests has also been demonstrated in the Amazon by Uhl and Kauffman (1990); this has facilitated the degradation process.

Overall these results indicate that the incremental carbon benefits of RIL-based SFM may be significantly larger than previously assumed, particularly in the long run. It could be argued however that allowing these extra carbon benefits to qualify for credits may impede efforts to improve logging practices, given that more carbon could be sold under poor logging practices. One way to overcome the problem of perverse incentives would be to replace project-specific baselines with standardized baselines incorporating minimum standards. Furthermore, minimum standards could be improved over time, thus gradually reducing the prospect of selling extra carbon by following poor logging practices.

Additionality

Additionality means that projects have to demonstrate that improved management would not have occurred without the project. This could be done by showing that the project activity (i.e. RIL-based SFM) is financially less profitable than the business-as-usual scenario (i.e. CLR). Even if CLR is more profitable, additionality could be established if other barriers to the adoption of RIL-based SFM existed.

Available data on the financial profitability of RIL relative to CLR are inconclusive because:

● assumptions about CLR practices in most studies may not be representative of actual conditions in tropical forests;

● available studies differ as to the components included as RIL; and

● the relative profitability of RIL and CLR is sensitive to site-specific biophysical and socio-economic factors.

Given these caveats, we evaluate results from a few recent and fairly comprehensive studies. Two studies from Pará State in the Eastern Amazon in Brazil, indicate that RIL need not increase timber-harvesting costs and can even result in cost savings (see also Holmes et al. in this volume). Barreto et al. (1998) estimate that net receipts using RIL are 35 percent higher than CL. The increase in net receipts falls to 13 percent, however, when increased salaries of workers trained in RIL practices are taken into account. The net present value (NPV) of SFM (i.e. RIL plus silvicultural treatments) is 38 to 45 percent higher for SFM than for CL, for discount rates ranging from 6 to 20 percent. The NPV estimates do not, however, take higher salaries of trained RIL workers into account. Most significantly, when a CLR scenario is assumed with re-entry logging after 10 years, as is common in the Amazon (Uhl et al., 1997), the NPV of RIL-based SFM is no different from that under CLR (Barreto et al., 1998). Although re-entry logging would reduce timber volumes for the second cut, the discounted effect of the second cut on NPV tends to be much lower than that of the first cut (Boscolo et al., 1998).

Another estimate (Holmes et al., 1999), from the same area, shows that net receipts from RIL are 19 percent higher than for CL. This study may have underestimated the volume of timber commercialized under CL, because although it shows that trees felled under CL are larger than those felled under RIL, the profitability estimates assume a standard potential volume for CL and RIL, adjusted for wastage. Higher salaries for trained RIL workers and premature re- entry logging under CL are also not taken into account.

In contrast to the above studies that are relatively optimistic about RIL, a recent study from a dipterocarp forest in Sabah, Malaysia is consistent with the more widely held perception that the financial profitability of RIL-based SFM is lower than that of CL. Healey et al. (in press, see also Tay et al. in this volume) estimate that the NPVs of RIL-based SFM for a time horizon of 120 years, are lower than those for CL by about US$ 1 000 per logged hectare and by about US$ 2 000 per representative hectare (i.e. taking into account both logged areas as well as areas excluded from harvesting under RIL because of environmental considerations). In areas characterized by steep topography (as in Sabah, Malaysia), the net loggable area under RIL is drastically lower (44 percent lower than under CL in the study area). Logging intensity is also lower under RIL, giving a 22 percent reduction in yield per logged hectare. Resulting timber revenues are 132 percent higher under CL than under RIL (Healey et al., in press), with the difference being due more to the areas excluded from logging under RIL, than from lower logging intensity. The lower commercial volume in the first harvest, together with the higher costs of implementing RIL, overwhelms the higher timber volume harvested under RIL in the second harvest, even when the second harvest volume is 31 percent higher than under CL. Healey et al. (in press) do not assume a CLR scenario (i.e. timber from re-entry logging is not taken into account). Arguably, for dipterocarp forests where premature re-entry logging is widespread, the financial benefits of CLR relative to RIL would be even higher, at realistic discount rates, although, as shown in Figure 1, timber-harvesting activities under CLR are likely to cease by the third or fourth harvest due to the total depletion of the commercial forest resource.

Overall, the above studies indicate that the profitability of conventional logging may be significantly higher than most previous estimates indicate when re-entry logging is taken into consideration.

Another notable conclusion that emerges from the above studies is the significance of the volume of timber commercialized, particularly in the first decade, as a determinant of financial profitability. Table 1 shows that in Pará, Brazil, where the NPV favoured RIL, timber volumes for the first harvest under RIL were 130 percent higher than under CL (Barreto et al., 1998). In the dipterocarp forests of Indonesia and Malaysia, where the NPV favours CL, timber volumes were 43 to 65 percent lower (Pinard and Putz, 1996; Sist and Bertault, 1998). Waste reduction under RIL is clearly significant. Barreto et al. (1998) show, for example, that 7 percent of felled timber is wasted under CL due to bole splitting, bucking errors and lost logs. In their study area as much as 20 percent of volume felled under CL was not found. However, when exclusion zones (areas steeper than the legal limit specified in the regulations) under RIL are as high as in Sabah, Malaysia, the effect of foregone timber from exclusion zones overwhelms the effect of waste reduction.

Table 1. Timber volumes available for commercialization under RIL and CL

CL RIL RIL as % of CL Eastern Amazon Brazil (m3/ha)1/ 30 39 130 Asian dipterocarp forests Sabah, Malaysia (m3/ha)2/ 154 100 65 Sabah, Malaysia3/ (timber revenues: $/ha) 6 761 2 913 43 East Kalimantan, Indonesia (m3/ha)4/ 56 28 59

1/ Barreto et al., 1998; 2/ Pinard and Putz, 1996; 3/ Healey et al., in press; 4/ Sist and Bertault, 1998

The volume of timber is significant also because maximizing timber volumes is a key consideration for the timber industry. In many parts of Asia and Latin America, timber-processing capacity has expanded aggressively, while timber supplies have become increasingly scarce. In Indonesia for example, Scotland et al. (in press) estimate that a roundwood supply-demand imbalance of around 33 million m3 exists, which is marginally higher than official roundwood production. Sizer and Plouvier (2000) attribute the increasing presence of Asian timber companies in Africa to the increasing log shortages faced by the timber industry in Asia. In Pará, Brazil, Holmes et al. (1999) report that log scarcity has increased delivered log prices to the timber shed by 10-30 percent and doubled the cost of harvesting rights between 1990 and 1995. The rapid expansion in the processing industry is attributed to bans on log exports and subsidies for forest conversion to agriculture and estate crops, which indirectly subsidized the timber-processing industry by providing cheap logs from conversion areas (Barr, 2000; Uhl et al., 1997). Where enforcement is poor, illegal logs also provide artificially cheap supplies to processing industries (Scotland et al., in press).

One more feature worth pointing out is that in vertically integrated companies (as is common in both Asia and Brazil), 78 percent of net receipts come from processing, while logging accounts for only 22 percent (Verissimo et al., 1992). This implies that increases in the efficiency of logging under RIL or even small increases in the profitability of logging are likely to be overwhelmed by the need to ensure adequate log supplies to the processing industry to avoid foregoing processing profits. This is likely to exacerbate the opportunity cost of adopting RIL significantly, particularly in areas where RIL volumes are considerably lower.

Even in regions where volumes during the first harvest are higher under RIL, a number of barriers to adoption of RIL are likely to exist. Among them are delays due to planning or suspension of operations under wet weather, the need to invest in equipment required by RIL, lack of training and technical knowledge about RIL and tenure insecurity (Putz et al., 2000; Barreto et al., 1998).

Thus, in spite of data inadequacies, the above studies indicate that it should be possible to establish the additionality of RIL-based SFM carbon projects.

Leakage

Leakage implies that if improved management within the project area results in an increase in emissions outside project boundaries, these new increased emissions are deducted from the credits earned by the project. Leakage is likely when project activities reduce log output, with no alternative activity taking its place. People are then likely to shift the activity to a location outside project boundaries. Negative leakage can also take place, if the RIL carbon project leads to the spontaneous adoption of RIL outside project boundaries. Emission reductions resulting from this should then be credited to the carbon project.

Leakage resulting from SFM projects supported by carbon revenues is likely to be highest in areas where timber volumes in the first couple of decades are lower than under CLR and processing capacity exceeds sustainable log supplies. In these areas, depletion of timber supplies often creates pressures for illegal logging and increasing exploitation of timber resources abroad. SFM projects that reduce timber harvests could add to these pressures and thus result in leakage. Enterprises, for instance, are unlikely to allow earnings to fall by reducing the volumes processed. Instead they are likely to attempt to maintain earnings by using up processing and logging capacity by carrying out compensatory logging in areas outside project boundaries or even in other countries, as has occurred in the case of Asian firms operating in Central Africa (Sizer and Plouvier, 2000). Where enforcement capacity is weak, SFM projects could exacerbate illegal logging. Informal logging teams could be financed, for example, to log in national parks, which is a common practice in Indonesia today (Scotland et al., in press). Faced with reduced log supplies, the timber industry could also lobby for increases in the area allocated for conversion to agriculture, which usually includes automatically the right to log the area before conversion. Barr (2000), for example, argues that this has occurred in Indonesia.

Exclusion zones under RIL would also reduce employment opportunities. Verissimo et al. (1992) estimate, for example, that every 5 ha of forest logged in Pará, Brazil, provide employment for one person. Leakage could result if labourers are compensated for reductions in employment earnings by activities that degraded forests, such as forest conversion to agriculture.

If the reduction in timber volumes under RIL-based SFM is sufficiently large to drive up prices (which arguably could occur if a large number of carbon RIL projects were implemented) it could stimulate logging in areas that were previously not economically viable. The potential magnitude of leakage from this effect would depend on the extent to which timber prices are responsive to declines in timber volumes as well as the extent to which expansion in logging is driven by timber price increases, as opposed to other factors, such as road construction. Leakage would be reduced in the longer run, if higher timber prices resulted in replacement of timber by substitutes for certain uses.

The above examples highlight situations where policy makers, CDM rule-makers, project developers and certifiers need to be alert to the potential for leakage and take measures to control it. Policy changes, such as removing subsidies for the processing sector, could reduce the potential for leakage. RIL projects in areas where commercialized volume is likely to be significantly lower under RIL, could include a component for plantations supported by carbon revenues, to make up for shortfalls in log supplies (Smith, in press). Technologies for further improving waste reduction and increasing log utilization under RIL could help to reduce leakage. Alternative income opportunities could also be developed for communities, to compensate them for employment losses resulting from exclusion areas.

While leakage could be significant where RIL reduces harvested timber volumes, negative leakage is a possibility where RIL results in increased timber volumes. Given the importance of timber volumes in determining the profitability of vertically integrated industries, companies outside the project area may voluntarily adopt RIL even without carbon revenues from a CDM project. This would increase the carbon credits earned by the project. Adoption of RIL alone need not, however, preclude other unsustainable practices like premature re-entry logging. Thus, the scope for negative leakage is likely to be limited unless projects are focused in regions with policies and institutions supportive of SFM.

Project duration and the risk of project failure

Project duration is relevant for carbon accounting in forestry projects because carbon is sequestered or stored only while the forest or its harvested products exist. In contrast, substituting clean energy for fossil fuels prevents emissions from entering the atmosphere in perpetuity. Since forestry projects will be used as a substitute for emission reduction, carbon accounting methods are required to make credits from forestry projects equivalent to credits from clean energy projects. There is as yet no agreement on methodologies to take account of project duration, but it is highly likely that short duration projects will earn carbon credits at a significantly lower rate relative to longer duration projects. Estimates indicate that taking account of project duration could increase the cost of many medium duration projects of around 20-30 years by 50 percent or even several fold (IPCC, 2000).

While RIL-based SFM is by its very nature a long-term concept, investors may not be willing to commit to long duration projects, particularly where the risk of project failure is high. Even though carbon projects would compensate forest managers for the opportunity cost of adopting RIL-based SFM, in many cases the reasons SFM does not occur are not always financial. Project failure is likely in cases where CDM projects are unable to address the underlying causes of unsustainable logging (Smith et al., 2000). Examples are situations where forest ownership and use rights are subject to frequent disputes as occurs in Brazil (Barreto et al., 1998) and Indonesia (Scotland et al., in press), or where the opportunity cost of forested land is increasing due to agricultural subsidies or the construction of development or logging roads into forested areas. The risk of project failure from human-induced fires is likely to be particularly high where incentives for conversion of forests to estate crops are high and fire is seen as an economical means of land clearing. This phenomenon was partly responsible for the fires in Indonesia in 1997 (Applegate et al., in press). Thus, longer duration, and therefore more cost-effective projects, are more likely to be possible in areas where policies and institutions are conducive to SFM.

Cost-effectiveness

The price of carbon in a fully-fledged market is still highly uncertain, because CDM rules have yet to be fully determined. Grubb et al. (2001) review a range of models that estimate the price of carbon without participation of the United States. These models probably also represent the closest available approximation to recent developments on issues such as the role of carbon sinks in industrialized countries and EU emission levels. Their review concludes that indicative prices could range from US$ 25/tC to US$ 75/tC. Prices are probably likely to be closer to the lower end of this range for several reasons. First, the higher end of this range assumes that emission reductions resulting from economic decline (as has occurred in the former Soviet Union) would have to be reinvested in emission reduction projects, thus increasing demand for carbon projects. This has not yet been agreed. Secondly, they assume that non-carbon gases are as costly to reduce as carbon dioxide, although they are in general much cheaper to control (Grubb et al., 2001). Thirdly, these estimates ignore land-use change projects in developing countries, although it is now known that reforestation and afforestation projects will be included in the CDM (IISD, 2001), thus making the supply larger than assumed in the models.

In an unrestricted market with numerous buyers and sellers, all projects that can supply carbon at a cost lower than the market price should be cost-effective. However, the surplus accruing to project partners will be low for projects whose costs are close to the market price.

Healey et al. (in press) provide the most comprehensive estimates of cost- effectiveness, although they too ignore premature re-entry logging in the baseline. While this implies that carbon sequestration benefits may have been underestimated, it also implies that the opportunity cost of adopting RIL-based SFM may have been underestimated, particularly under realistic discount rates.

Given these caveats, Healey et al. (in press) estimate that at discount rates of 4 to 10 percent, the opportunity cost to the timber industry of adopting RIL in Sabah, Malaysia, would range from US$ 33/tC to US$ 42/tC. If, as we argue, the lower end of the range reported by Grubb et al. (2001) is more realistic, the cost- effectiveness of these projects remains doubtful. The estimates by Healey et al. (in press) also exclude a number of cost categories which carbon projects will have to incur. These include the transaction costs of doing business in carbon markets, such as project development, marketing and certification costs, the costs of negotiating with project partners and host-country governments and the cost of monitoring and verifying carbon emissions. These costs could be substantial. The Noel Kempff forest protection carbon project in Bolivia, for instance, is estimated to have spent around US$ 750 000 on project development and institutional support to the Bolivian government and has allocated US$ 1.7 million for monitoring and verification of carbon emissions over 30 years (Nigel Asquith, unpublished data). Monitoring costs are likely to be higher for forest management projects than for forest protection projects, given that the incremental carbon benefits are likely to be lower and therefore a higher level of precision would be required.

In cases similar to Sabah, Malaysia, where commercial volumes are substantially lower under RIL, carbon credits are also likely to be lost due to leakage, thus further eroding cost-effectiveness. Healey et al. (in press) also assume a project time horizon of 120 years. As pointed out earlier it may not be realistic to expect investors to commit for such long periods, particularly in areas where political and economic risks increase the possibility of project failure. In such cases, carbon credits would be earned at a lower rate, thus also reducing cost-effectiveness.

Healy et al.’s results from Sabah, Malaysia, are in contrast to those of Boscolo et al. (1998), who estimate a cost of under US$ 5/tC for the same study site. It should be pointed out, however, that the results of Boscolo et al. (1998) are based on a range of ad hoc cost estimates of RIL practices. More significantly, their results do not take into account lower timber volumes under RIL due to exclusion areas and lower logging intensities. Their results are useful, however, because they imply that RIL projects may be cost-effective, where timber volumes in the first cut (or arguably in the first decade) are comparable under RIL and CLR. This could occur, as the results of Barreto et al. (1998) show, in forests where few areas need to be excluded from logging under RIL and where levels of wood waste under CLR are high. As indicated earlier, leakage is also likely to be lower under these circumstances. The likelihood of real long-term improvements in management could be increased in these areas by embedding projects in an integrated program to create a supportive environment for SFM, including measures such as tenure security, control of illegal logging and increased information and training (Smith, in press).

ENVIRONMENTAL AND SOCIAL CO-BENEFITS

According to the Kyoto Protocol (UNFCCC, 1997) CDM projects should help host countries “achieve sustainable development”. Although sustainable development is not defined, it is usually loosely interpreted to imply that CDM projects should have beneficial environmental, social and economic impacts and be consistent with priorities of countries hosting CDM projects and with commitments under other international environmental agreements (IPCC, 2000). Whether or not CDM projects adequately contribute to sustainable development will be determined by host countries (Pronk, 2001). Criteria may therefore vary considerably from country to country.

Biodiversity

Putz et al. (2000) argue that biodiversity conservation in the tropics can be enhanced by using well-managed timber production forests as a supplement to forest reserves, given that national parks are insufficient on their own to conserve the diversity of the world’s tropical forests.

One way to reduce the environmental impact of timber harvesting is to focus on stand- and structure-based indicators, including structural complexity, species composition, connectivity and heterogeneity (Lindenmayer et al., 2000). This is possible if the emphasis is placed on four areas: 1) establishment of biodiversity priority areas, 2) application of improved conservation measures within production forests, 3) multiple-use goals and scales to spread risk in production forests, 4) adaptive management to test the validity of structure-based indices of biological conservation by using management practices as experiments.

The last three are encapsulated in the principles involved in improved harvesting practices developed in many tropical countries as codes of practice and RIL guidelines and principles as outlined by Dykstra (1996), APFC (1999) and Applegate and Andrewartha (2000). Thus, RIL-based SFM projects have the potential to provide environmental co-benefits.

Social co-benefits

Some RIL guidelines also reduce the negative impact of CLR on local communities. Shanley et al. (2000) show, for example, in Pará, Brazil, that 15 of the species which provide the non-timber forests products (NTFP) most highly valued by local communities, are also species targeted by loggers. RIL should help to safeguard these species at least in exclusion areas. The importance of exclusion areas in safeguarding NTFPs is consistent with the findings of Healey et al. (in press). While the value of the rattan harvest was very similar for RIL and CL in logged areas in Sabah (Malaysia) it was US$ 257/ha higher for RIL when both logged and unlogged areas were taken into consideration.

Shanley et al.’s findings (2000) indicate that premature re-entry logging also affects the availability of NTFPs. After about a decade of repeated logging episodes and fire, they found a drastic drop in average volumes of NTFPs, such as game, fruit, and fibre, which were important for the nutrition and health of the rural and urban poor. NTFP harvests declined not only because of the removal of trees providing NTFPs, but also due to collateral damage to other trees, as well as seedling destruction and soil compaction. CL also impeded access to NTFPs and agricultural fields because felled trees, flooding and thick secondary growth obstructed passage through the forest. Thus, a number of RIL guidelines that reduce the area disturbed, reduce damage to non-target species and reduce post- logging environmental damage also provide social benefits. While the greatest social benefits will probably result from exclusion areas, a number of other RIL guidelines could also help to safeguard local livelihoods. CONCLUSIONS

The Clean Development Mechanism (CDM) of the Kyoto Protocol raised the hopes of many, that payment for carbon sequestration services would provide a significant incentive for sustainable management practices in industrial forestry in tropical countries. Data to assess how realistic these hopes are, remain scant. Also a high degree of uncertainty about CDM rules makes any assessment hazardous. Subject to these caveats, our analysis shows that:

● Expectations about the contribution carbon projects could make towards inducing sustainable timber harvesting should be scaled down. This is partly because even if tropical forest management qualifies for credits after 2010, CDM implementation rules are likely to place limitations on the use of forest management projects for meeting emission reduction commitments. It is also because the cost of RIL-based SFM projects may be higher than previous estimates indicate. This is because while most studies assumed a permanent forest estate is maintained under conventional logging we argue that a more realistic conventional logging scenario is repeated timber harvesting at short intervals, leading to degradation of logged areas into shrubland and grassland. While this scenario increases the potential carbon and other environmental benefits from RIL projects in the long run, it also increases the opportunity cost of adopting RIL-based SFM, particularly in the short term. Previous estimates also ignored the transaction costs of operating in carbon markets and the risk of project failure.

● The cost-effectiveness of RIL-based SFM projects is likely to be highly site- specific. RIL projects are unlikely to be cost-effective where steep topography and high biodiversity values result in logging being excluded in a high proportion of the forest management unit. This reduces the commercial volume of timber harvested in RIL relative to conventional logging and raises the compensation required by the timber industry to adopt RIL, because ensuring adequate log supplies for timber processing mills is a key determinant of the profitability of vertically integrated timber companies.

● RIL projects should be targeted to areas where timber volumes under RIL are similar to volumes under conventional logging with repeated harvesting at short intervals. This is particularly important during the first two decades after logging. In these areas, if projects are part of an integrated package of measures to support sustainable management, there could be a possibility of real long-term improvements in logging practices. Measures could include for example, ensuring tenure security, resolving land conflicts, reducing illegal logging, supporting certification and addressing market failures, such as the lack of information about the benefits of RIL and training in RIL practices.

● Pro-active measures could also be taken to expand the niche for RIL projects and reduce the risk of leakage and project failure. Demarcation of timber-harvesting exclusion zones, as indicated in many codes of practice for improved timber harvesting in the tropics, draws on the guidelines of the Biodiversity Convention’s ecosystem approach. This could provide leverage for supporting funds from multilateral agencies, such as the Global Environment Facility, or from conservation agencies, to compensate for the reduction in timber volumes resulting from exclusion zones. CDM RIL projects could include a CDM-supported component for plantations to compensate for log supply shortfalls. Technologies for further reducing waste and increasing log utilization under RIL could increase timber volumes under RIL. Reduction of subsidies to the processing sector would help to reduce processing demand. Subsidies include not only direct subsidies, such as soft loans, but also hidden subsidies, such as cheap log supplies resulting from log-export bans, illegal logging and deforestation.

● CDM RIL projects should not be perceived as a “silver bullet” for inducing sustainable management and preventing forest degradation. If targeted carefully and embedded in an integrated program of policy reforms they could, however, considerably enhance the effectiveness of more conventional approaches, while also contributing to climate change mitigation and biodiversity conservation. Pro-active measures could also be used to expand the niche for CDM RIL projects.

ACKNOWLEDGEMENTS

The authors are grateful to Laura Snook, Andy White and Ken MacDicken for helpful comments.

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[43] This analysis is based on the following paper, currently under review by Forest Policy and Economics “Could trade in forest carbon contribute to improved tropical forest management?”

27. Addressing the gap between the theory and practice of reduced impact logging - Simon Armstrong and Chris Inglis*

* Edinburgh Centre for Tropical Forests, c/o LTS International Ltd, Pentland Science Park, Bush Loan, Penicuik, Edinburgh, EH26 0PH UK, Tel: ++(44 131) 440 5500, Fax: ++(44 131) 440 5501, E-mail: simon- [email protected] and [email protected]

INTRODUCTION

The Edinburgh Centre for Tropical Forests (ECTF) has been working together with Barama Company Limited (BCL), a commercial timber harvesting and processing company, on the North West Guyana Sustainable Timber Production Programme since 1992. The aims of the two partners are:

● BCL: To ensure the sustainability of the forest in perpetuity whilst selectively harvesting a major natural resource for the benefit of the company, people and Government of Guyana.

● ECTF: To provide independent advice to BCL, to enable it to fulfil its wider management objectives, through a process of environmental and social monitoring and a program of silvicultural and operational research.

Earlier work undertaken by the project, notably the establishment of permanent sample plots, is described by Inglis et al. (1996). These plots are being used to assess post-harvest forest growth and the impact of damage on growth (ECTF, 2000). Additional background to Guyana and forestry in Guyana can be found in Inglis et al. (1996) and van der Hout (1999).

BACKGROUND

Guyana

Guyana is situated on the northern coast of South America, bounded by Brazil, Venezuela, Suriname and the Caribbean Sea. The country covers an area of 215 000 km2 with a population of around 900 000. Over 90 percent of the population live within five miles of the coast where sugarcane and rice cultivation predominate. Commercial timber extraction of one species, greenheart (Chlorocardium rodiei), has been practised in Guyana for centuries. However, given the localized and limited stocking of commercial species, and poor accessibility of most of the interior, the country’s forest cover is still around 85 percent. Guyana experienced a period of intense economic decline during the 1970s and 1980s, which left it with a greatly reduced human resource base and a weakened infrastructure and administrative system. In the early 1990s, a number of Southeast Asian companies invested in forest harvesting in Guyana and a new level and range of production was attained.

The BCL concession

BCL operates a 1.67 million ha concession in Northwest Guyana. Stocking of commercial species is poor, with harvesting volumes averaging 8.2 m3/ha. At an average volume of 3.4 m3 per tree, this equates to a harvesting intensity of 2.4 trees/ha. Baromalli (Catostemma spp.) comprises nearly 90 percent of the harvested volume. The productive forest is also interspersed with unproductive swamp and steep terrain. BCL’s harvesting is undertaken in 100-ha blocks using a bulldozer to build skid trails. Extraction is done by wheeled skidders. Conventionally, bulldozer operators use the blade to position logs at the stump to ease the attachment of skidder winching cables.

The work on which this paper is based was carried out within the BCL concession and developed from studies of merchantable wood left in the forest and the resulting impact on operational and financial efficiency. The logging waste studies revealed additional areas for improvement, specifically in skid trail layout, and in turn focused research on operational systems and machine use. The focus and methodology of the work has therefore evolved as new areas for research emerged. As the study progressed, additional techniques intended to improve harvesting practice were adopted, moving towards what is now termed reduced impact logging (RIL). The first blocks to be harvested (top of Table 1) may be considered to be conventionally logged, and each subsequent block more closely matching full RIL. The research began in 1996 with block 1 and ended in 1999 with block 8. The composition of the harvesting team changed during the research as operators moved out of the area to return to their families or to take up other work.

Table 1. Treatments applied to each block in the trial

Block Skid Pre- Increased Vine Directional number trails harvest supervision cutting felling marked map training out given to based on team map 1 2 3 * 4 * * 5 * * * 6 * * * 7 * * * * 8 * * * * *

A 100-percent inventory of all potentially merchantable trees was completed in each block. The inventory team walked the block along pre-cut 50-m wide strips divided into forty 25-m long stations in each strip. Each tree was identified with an aluminium tag. During the inventory of the last six blocks, the location of enumerated trees within each strip and station was recorded to produce a pre-harvest tree location map at a scale of 1: 2 500. The location of features restricting harvesting (e.g. creeks or steep slopes) was marked also. The map was used to plan the layout of the main skid trails and to locate trees for harvesting.

In the last five blocks the operation of the harvesting machinery was timed and recorded by activity. After harvesting, the length of skid trails was surveyed. In most blocks, the number of merchantable trees that were not felled, merchantable logs felled but not skidded, and the volume wasted from logs being cut short, were recorded.

The technical results of the work are described in detail elsewhere (Armstrong and Inglis, 2000; ECTF, 2000). A smaller- scale, more intensive study of the ecological and silvicultural impacts of RIL elsewhere in Guyana is described by van der Hout (1999).

Comparison between forestry in Guyana with Indonesia and Malaysia

BCL brought its extensive experience of harvesting in Southeast Asia to Guyana. The harvesting system adopted in Guyana was based on that practised in Sarawak. Unlike Sarawak, however, stocking of commercial species in Guyana is generally low and highly variable. The logistics of road building and hauling are particularly difficult given the heavy rainfall throughout much of the year, the deep clays and the absence of suitable surfacing material. It is difficult to find and retain people to work in large commercial harvesting operations, as there is not the same tradition of large-scale forestry work as in either Indonesia or Malaysia.

The Government of Guyana, in recognizing the need for sustainable forest management, issues 25-year leases to concessionaires. The Guyana Forestry Commission, with support from international aid agencies, has developed its management and regulatory capacity. Detailed environmental impact assessments (EIAs) and management plans are now required to operate a concession. International environmental NGOs are active in Guyana, especially those associated with indigenous land rights and the environment. The main commercial threat to forest operations in Guyana is the low profitability of forestry operations, because of the low number of commercial species. Land clearance for hydraulic mining causes significant local impacts. Much mining is undertaken illegally and most mining activities are unregulated. There is no real threat from land clearance for permanent agriculture or shifting cultivation.

SUMMARY OF RELEVANT TECHNICAL RESULTS

A paper that focuses on areas for improvement will tend to highlight shortfalls. It must be pointed out, however, that the operators and managers at BCL generally were experienced in harvesting operations and that BCL’s harvesting operations are among the best in Guyana.

● Skid trail layout tended to be inefficient and damaging. Significant unnecessary expenses were incurred because of poorly planned skid trails. Total skid trail length varied from 17.3 to 8.3 km in six 100-ha blocks in which an increasingly sophisticated approach to harvesting was adopted. Most harvesting damage was caused during skid trail construction and by bulldozer positioning of logs at the stump for the skidder.

● In a 100-ha block, the savings in machinery costs resulting from efficient skid trail planning and reduced machine usage is about the same, or possibly more than the cost of planning and marking skid trails. At US$ 40 per bulldozer (Cat D-5) standard machine unit (SMU), and 2 SMU per km skid trail constructed, the savings from reducing skid trail length by 5.7 km per 100-ha block were equivalent to the 45 person-days required for 100-percent enumeration. Inefficient machine use causes damage (e.g. pushing over of trees, or building unnecessary lengths of road). Improved efficiency often implies reduced damage.

● Between 5 percent and 10 percent of the potential harvest is lost in the forest before extraction to the roadside, mainly because merchantable trees are missed by fellers (3 to 8 percent), felled trees are missed by skidders (1 to 2 percent) and because of damage to logs caused by poor felling techniques (1 to 5 percent). A small fraction is lost due to poor cross-cutting.

● When the value of avoidable logging residues is added to the saving in machinery time (from better planning, pre- harvest planning, basic training and better supervision) the result is a lower unit cost of production than from poorly planned conventional harvesting.

● The increased productivity per hectare that results from less logging waste reduces costs at the operational scale also. Since each hectare of forest yields higher roadside volumes, less area of production forest and less roading distance are required per unit volume produced. The fixed costs of road construction, and log hauling costs per unit volume, are therefore decreased.

● In some harvesting areas, 89 percent of merchantable trees of the most commonly harvested species (Baromalli) were harvested, compared with a harvested proportion of 69 percent for other species. This suggests that poor tree identification skills result in lost production. Differences in assessment of merchantability (among inventory crews, fellers, haulers and the mill) are also a significant cause of waste after extraction.

● The production of accurate tree location maps requires skilled workers and is unlikely to be sustainable (around 50 person-days to map and enumerate all trees of commercial species above the minimum cutting diameter of 50 cm diameter at breast height [dbh] in a 100 ha block).

RECOMMENDATIONS MADE BY THE PROJECT

1. Supervision: A “block inspector” to check the felling block after harvesting to identify environmental impact and levels of wastage. The block inspector should report to production management, be independent of the harvesting team, and not paid on a piecemeal basis. Additional middle management supervisors should be employed to supervise harvesting.

2. Senior management: During routine visits to the forest, senior management should visit harvesting areas and simply assess the quantity and value of wood left behind in the forest and the skid trail network.

3. Planning: Strategic-level inventory, road alignment and identification of harvestable trees within each block should be improved through a systematic inventory procedure, based on stratification using low- cost aerial surveys - in advance of road construction.

4. Survey of harvesting blocks: Surveys should be conducted prior to harvesting to identify likely extraction routes and the location of merchantable trees.

5. Training: Emphasis should be given to training in tree identification, felling and machine operation.

6. Standardization of log-grading specifications: Mill graders should visit forest operations to ensure consistency of grading rules among fellers, hauliers and the mill.

7. Monitoring of volumes felled, skidded and hauled: Volumes or number of logs at each stage of the process should be compared to track losses using a system already in place. Pilot tagging and tracking of logs from stump to mill should be performed.

8. Limiting movement of bulldozers: Moving the bulldozer to the stump of the tree and raising the end of the log off the ground should be discontinued. Where possible the skidder should enter without the bulldozer first clearing a path. Where possible, the bulldozer should move with a raised blade, and bulldozer movement should be restricted to minimize the area used for skid trails.[44] 9. Piloting of changes and rejection of impractical techniques: Pilot 100-percent tree enumeration in fifty 100-ha blocks. Skid trails in areas of high vine density should be avoided as a more practical alternative to cutting vines several months ahead of harvesting.

FOLLOW-UP TO THE RECOMMENDATIONS MADE

1. Supervision: An additional supervisor and several block inspectors were employed to improve the standard of harvesting and reduce logging waste. The benefits were apparent to management and appointment of additional staff represented a low-cost step to improve efficiency. The block inspector had to live with harvesting teams and therefore was dependent on the people that he was monitoring for food and accommodation. This physical dependence undermined the objectivity necessary for impartial monitoring. The block inspector required a range of skills, including analytical skills, understanding of commercial harvesting and environmental guidelines and their interpretation, and importantly negotiation skills. Retaining skilled people is difficult and requires attractive incentives, especially where such people may be able to obtain work in less arduous conditions closer to their families.

2. Senior management: Field visits by senior management allowed visualization of the current impacts, stimulating institutional changes and fostering a sense of trust. The involvement of senior management proved crucial.

3. Planning: Strategic-level inventory required significant changes in survey approaches - notably use of inexpensive digital aerial surveys. The system called for the development of a new data gathering and handling system, requiring additional highly qualified staff and specialist equipment. This worked well when the staff and equipment were available, but failed if either was not working. There was also a requirement to employ staff with skills in remote sensing and understanding of commercial logging practice.

4. Survey of harvesting blocks: Block inspectors undertook pre-harvest block surveys and post-harvest evaluation. The process provided qualitative information of great value in planning harvesting at the block level.

5. Training in tree identification and felling was undertaken as skills were limited. Fellers accepted the training in felling techniques as they recognized the value of improved safety and reduced costs in chainsaw use from proper maintenance. Training in tree identification was less successful as the tree spotters were not skilled in training techniques. Regular training in machinery operation was not possible, as no trainers were available. Informal sessions, during which operators reflected on their harvesting techniques, resulted in operators adopting alternative practices (e.g. stepping down from the bulldozer and walking when appropriate, or working with the blade raised off the ground).

6. Standardization: Mill and forest operations were managed separately. Mill staff did not have a clear understanding of the practical problems faced in forest harvesting, and people in the forest knew little about mill operations. Mill staff did not visit the forest operations, and as such only limited standardization in log-quality specifications between forest operations and the mill was possible. Mill staff were not involved in the planning and implementation of operational changes and did not see any personal benefit by modifying the current system.

7. Monitoring: A log-tracking system was already in place in the operation, but was underutilized. Basic training in comparison of data from different sources provided a rough guide to losses in the forest, which was useful in monitoring logging waste. A more sophisticated system of tagging stumps and logs was piloted, but required fellers with analytical skills that proved difficult to acquire.

8. Limiting bulldozer movement: Some operators changed the way they used their machinery, as they became more aware of the damage caused. The most important changes were of a behavioural nature. By drawing on people’s experiences and understanding of the technical capacity of machinery and the capabilities of people, planning and implementing realistic changes were possible.

9. Piloting of changes and rejection of impractical techniques: Change and the adoption of recommendations depended on trust between management and operators. This trust was called into question where impractical recommendations were made. Vine cutting months in advance of harvesting (necessary if the vines are to be dead at the time of harvesting), was impractical because of high labour inputs, and the logistics of accessing areas in advance of harvesting. Ultimately, vine cutting was rejected. Instead, approaches were adopted for skid trail layout to avoid areas with high vine densities. Where the implications of change were uncertain, pilot studies were conducted, and new techniques were tested in either small areas or by single harvesting crews. The 5 000-ha pilot study identified that 100-percent tree enumeration was an ineffective use of time and resources, requiring a high degree of training and supervisory input. Indeed, it was calculated that 100 percent tree enumeration for commercial trees alone would require 45 additional staff to keep pace with harvesting - an unacceptable additional administrative and logistical burden. Even accurate maps were of limited use in planning skid trails as ground conditions changed with rainfall and the actual route was often determined at the time of extraction. In the highly variable, swampy and hilly terrain of the harvesting area, an alternative approach of “prospecting” in advance of harvesting was appropriate. The approximate location of trees and physical constraints to harvesting were noted, enabling a strategic-level planning of skid trail layout. Actual skid trail layout was determined in the field. This approach suited the local conditions and available resources.

CONCLUSIONS ON INTRODUCING RIL

Some very important changes that are required relate to behavioural rather than technical issues. Trust is critical in introducing change. Involving people in planning change increases the likelihood of success as fears are overcome. Impractical recommendations and poor communication threaten the change process. People have to want to change before they will do so. Often this means that people must be able to identify direct and personal benefits.

Effective management is the key to improving harvesting operations. Retaining people with the range of skills needed to implement, manage and supervise improved harvesting practices requires incentives. People with the ability to apply theory in practice are particularly important.

New concepts should be suited to local conditions, developed and tested in collaboration with operators and management. Changes that have been tested and which build on current resources, and skills are more likely to be adopted than new systems. Complicated and inflexible systems are more likely to go wrong and be deemed unacceptable.

Training needs to be planned carefully and conducted by skilled trainers if it is to be effective. One-on-one coaching, and reflecting on past experience and behaviour can be more effective than formal training courses.

Improved efficiency usually results in reduced damage. Whilst regulations may be difficult to enforce, improved harvesting practices are more likely to be implemented and should be more sustainable if cost-effectiveness can be proven.

THE GAP BETWEEN RESEARCH AND PRACTICE

Based on the work undertaken at BCL, and other experiences in Guyana (Zagt and Armstrong, 1999), a number of key points have been identified for more effective collaboration between researchers and forest operators and in support of the adoption of improved harvesting practice.

Objectives and approach

The objectives of researchers and commercial harvesting companies are usually very different, even though notionally both may be concerned with the wiser management of forest resources. The number of scientific papers published is an important indicator for researchers whilst commercial operators are more interested in financial performance indicators. Areas where the objectives of both groups are shared have to be identified and built upon. Research outputs should address the needs of commercial operators and take account of the available resources and practical limitations to applying theoretical best practices.

Communication

The incorporation of research results into practice invariably follows a path through awareness raising, increased interest, testing, evaluation and adoption. If messages are to be delivered successfully to a target audience it is necessary to understand where on that path the audience is positioned. Research results should be marketed precisely if they are to stand any chance of being adopted by practitioners. The timing, place, content and style of presentation are all critical to the successful marketing of new ideas or approaches, and need to be chosen with care to suit the target audience.

The work at BCL was undertaken in close collaboration with management and staff. Outputs were directed at practitioners rather than the scientific community and addressed real needs and considered resource availability and constraints. As such, the work was able to support and inform those who were developing and implementing harvesting plans.

Change

Companies must have good reasons to adopt proposed changes. Driving forces for change may come from within the organization, but commonly are external, such as changes in national policy or the demands of international markets. The desire for change must also be shared by those affected the most, assuming that their continued commitment and involvement are expected. Often it can be difficult to have a shared goal for change where different groups (e.g. management, machine operators, supervisors) within commercial operations have different - and perhaps even contradictory - objectives.

The need for change must be reflected in the company’s strategy and business plan. When change is sought, the management structure or resources (often human resources) may not permit rapid adjustment of the system. Decentralization of decision making, for example, is often important for successful RIL, but may not fit with current institutional structures. Transforming such structures can be complex.

Change must be planned and managed properly. Where companies lack relevant skills in-house they may be dissuaded from acquiring external assistance because of concerns over high costs, transparency or unwanted attention. The corporate culture may discourage the use of external inputs.

High workforce turnover is common in many operations and dissuades companies from investing in training, an activity that is central to the introduction of new practices. Addressing this constraint is crucial if harvesting companies are to increase effectiveness and efficiency.

CLOSING THE GAP BETWEEN RESEARCH AND HARVESTING PRACTICES

Objectives and approach Research can contribute towards the formulation of practical guidelines and can inform decision-makers of the potential impacts of adopting new practices. Guidelines should be flexible to take account of the specific conditions and resources available to each harvesting company. Financial implications, and implications at the operational scale (rather than simply at the harvesting site) have to be made explicit. This requires involving commercial operators in the development of guidelines.

Contrasting the costs of RIL with the costs of conventional logging (CL) can be misleading, particularly because research results often cannot be compared. CL - a more appropriate term would be “current working practice” - can represent the entire spectrum from bad to excellent logging practice. Thus, research carried out in a concession that is poorly managed is likely to conclude that significant cost savings are achievable, while similar research in a concession that is well-managed may arrive at a rather different conclusion. Inappropriate or misleading comparisons simply confuse harvesting companies and are barriers to the adoption of improved working practices.

Communication

There is a need for open two-way communication between commercial operators and researchers to maximize benefits. The means of communication, particularly the media and language used heavily influence the effectiveness of communication between researchers and commercial operators.

It is probable that the apparent improvements in efficiency and associated reduction in damage are points of interest to both commercial operators and researchers. Such areas of mutual interest could be explored usefully and developed jointly. Introducing different approaches at the pilot level in commercial operations will enable improvements to be tailored to a company’s needs and resources. The improvement of harvesting efficiency and the raising of standards by voluntary means will be more sustainable than rules that requires regulation by authorities.

Acceptance of RIL depends on individuals identifying with the benefits of new practices. Thus, the benefits of RIL must be demonstrated clearly. At this stage, it is particularly important for researchers to show that they understand the wider implications of applying RIL theory in practice. As operators and managers become more aware and informed of RIL, they require different information for which alternative means of communication may become necessary. Whilst fairly general media, for example articles in trade journals, will suffice at the start of the process (awareness raising), specific face-to-face contact is likely to be necessary if a company is to adopt RIL.

Change

Improving harvesting practices depends on a process of change rather than adoption of a set of externally imposed standards. Change is complex, will have to be nurtured and carefully planned and managed, and often requires some form of direct or indirect incentives. These should come from internal sources, but are likely to be influenced by external pressures, such as regulations, or opportunities such as access to environmentally sensitive markets for timber and timber products.

REFERENCES

Armstrong, S. & Inglis, C.J. 2000. RIL for real: introducing reduced impact logging techniques into a commercial forestry operation in Guyana. International Forestry Review, 2 (1): 17-23.

ECTF. 2000. Report by Edinburgh Centre for Tropical Forests on an overview of the North West Guyana Sustainable Timber Production Programme 1993-1999 for the Barama Company Limited. Unpublished.

Inglis, C.J., Sutton, G. & Lawson, G.J. 1996. Research and monitoring for sustainable forest management in NW Guyana. In: Dykstra, D.P. & Heinrich, R. (eds.). Research on environmentally sound forest practice to sustain tropical forests. FAO/IUFRO Satellite meeting, IUFRO XX World Congress, pp. 27-36.

Van der Hout, P. 1999. Reduced impact logging in the tropical rain forest of Guyana: ecological, economic and silvicultural consequences. Tropenbos-Guyana Series 6. The Tropenbos- Guyana Programme. Georgetown, Guyana.

Zagt, R. & Armstrong, S. 1999. The role of research in improving forest management - collaboration between a research institute and a forest concessionaire. Presented at the workshop Management and Monitoring of Forest Concessions, organized by FAO, Paramaribo (Suriname), 12-14 October 1999.

[44] The machinery used in the operations did not permit the winching of logs over long distances.

28. Incremental cost of complying with criteria and indicators for achieving sustainable forest management - Mohd Shahwahid H.O., Awang Noor A.G.*, Ahmad Fauzi P., Abdul Rahim N., Salleh M., Muhammad Farid, A.R., Mohammad Azmi M.I.** and Amir S.*

* Universiti Putra Malaysia, Serdang, Selangor, Malaysia, Tel: ++(60 3) 8948 6101

** Forest Research Institute Malaysia, Kepong, Kuala Lumpur, Malaysia, Tel: ++(60 3) 6275 2564, Fax: ++(60 3) 6276 5687, E-mail: [email protected]

*** Kumpulan Pengurusan Kayu Kayan, Terengganu, Malaysia

INTRODUCTION

Prompted by proponents of sustainable forest management (SFM), governments in the developing world and countries involved in the timber products trade, as producers and consumers, have subscribed to SFM to provide the greatest good for the greatest number of people in the long run. In order to implement SFM, the Forestry Department Peninsular Malaysia has produced the Malaysian Criteria and Indicators (MC&I) system that clarifies major activities that require compliance. The National Committee on Sustainable Forest Management has formulated 88 activities to operationalize the criteria and indicators. The MC&I complement ITTO criteria for achieving SFM.

Skepticism surrounds the capability of tropical countries in meeting the criteria and indicators. Perhaps the most critical question is whether the additional cost of compliance can be met. However, reliable information on costs is not available. Such information is necessary to guide long-term planning and to provide motivation to implement SFM. In addition, this information will assist various parties in identifying financial mechanisms and appropriate technologies for bilateral or multilateral cooperation and assistance.

The Malaysian Government is committed to attaining ITTO’s Target 2000 Objective, which aims to ensure that all timber produced comes from sustainably managed forest. Hence, knowledge of incremental costs of compliance provides important indicators of the magnitude of financial resources required. BACKGROUND

The idea of complying with criteria and indicators for achieving SFM is very broad. At the ground level, compliance is often translated into harvesting systems such as improved logging (IL) and reduced impact logging (RIL). The inherent principle is to adopt selective timber harvesting with minimal damage to residual stands and reduced environmental impacts. This can raise timber yields for subsequent harvesting cycles. In terms of biophysical impacts this is sensible. Whether it is financially viable remains unclear. Experiences in various parts of the world seem to provide conflicting evidence in support of RIL in comparison with the “cut and get out” conventional logging (CL) practices.

Two studies appear to favour RIL on both environmental and financial grounds. A study in Indonesia showed that following clear guidelines provided by the FAO Model Code of Forest Harvesting Practice could translate into substantially lower environmental impacts for forest harvesting (Elias, 1998). In comparison with CL, forest stand damage was reduced by about 50 percent. Heavy damage to the residual stand was reduced from 29 to 12 percent. The area opened up by felling and skidding decreased from 11.1 to 7.7 percent and 8.7 to 5.2 percent, respectively. Average skidding distance declined from 350.6 to 335.2 m/ha. The net results in system productivity were affected only slightly. The productivity of felling trees with buttresses even increased from 17.6 m3/h to 18.3 m3/h. Skidding roundtrips declined by about five minutes from 38 to 33 minutes. Based on time studies, a comparison of production costs for felling, skidding, bucking, loading and unloading by CL and RIL showed that the total costs of RIL increased by only 1.3 percent compared with conventional methods (Rp 28 573/m3 or 4.0 percent to Rp 522 884/ha).[45] However, these costs excluded expenses for preparing topographic maps and timber harvesting planning costs, not to mention the opportunity costs of reduced timber production from protected buffer zones.

A study in Brazil’s eastern Amazon provides further insights into the ecological and economic effects of RIL (Holmes et al., 1999). The ground area disturbed by heavy machinery during RIL was nearly 40 percent less compared to CL. Favourable comparisons also emerged with regard to soil disturbance on skid trails and tree damage. In terms of costs, RIL planning costs nearly doubled CL ‘up-front’ costs, but the efficiency gains were considerable. Skidding and log deck productivity increased dramatically and led to reduced costs of nearly 40 percent. Better recovery of the merchantable timber volume at the typical RIL site reduced the average variable costs associated with wood waste by almost 80 percent and stumpage costs by 16 percent. Overall, the average total cost of a typical RIL system was 12 percent less than the average cost of a typical CL system, and net revenue was 19 percent higher. This indicates that from a financial perspective RIL in the eastern Amazon is superior to CL, primarily due to higher skidding productivity and lower timber waste.

Both studies indicated that the cost of RIL is either lower or, at most, slightly higher than CL. With such favourable experimental results, one would expect to see greater implementation of RIL in new concession areas. However, several constraints decrease the likelihood of widespread adoption. Many of the financial benefits of RIL are due to reduced waste. Unfortunately, these costs are often not recognized, as many CL operators do not apply rigorous cost accounting. Wood waste simply does not appear in the books. Up-front costs on the other hand do, which explains why the perception of higher costs associated with RIL persists. Other constraints to adoption include the lack of trained staff, the lack of enforcement of environmental legislation and financial disincentives to change behaviour. In the short run, CL continues to provide greater financial returns because forestry codes and regulations designed to assure forest sustainability are circumvented.

The results of the above studies favouring RIL over the status quo, in terms of costs, may be misleading in that they were experimental. Under the watchful eye of researchers, contractors comply, especially in small-scale experiments. This problem is particularly apparent in time studies. Therefore, costing ought to be done at the compartment level. Furthermore, to determine the full cost of RIL requires that all relevant costs from planning to staff training be considered. Costing should not be restricted to direct costs only, which are known to comprise only a small proportion of the total cost of harvesting and forest management.

The proponents of RIL have been challenged on profitability and environmental grounds (Pearce et al., 1999). The “sustainable forest management effect” will inevitably increase the cost of timber harvesting and management (Leslie, 1999). While sustainable systems appear capable of earning reasonable returns, they do not compete financially with unsustainable systems. The evidence on discount rates reinforces the critics’ arguments. Discount rates in poor countries are very high, indeed, so high that few investments in forestry would seem to be justified financially. High discount rates simply reinforce the preference for CL based on rapid liquidation of the timber and other resources without regard for future harvests or other impacts. Factors that might mitigate this inequality include improving concessionaires’ property rights, better enforcement of regulations, higher timber prices, and valuing of non-commercial species. None appears to give sustainable timber management any edge over conventional systems. All have some role to play, but none is in itself sufficient.

Frequently, non-market values have been used to defend SFM, particularly when these values are higher under RIL than CL. Earlier studies emphasized the importance of holistic forest management for both timber and non-timber products and services (Panayotou and Aston, 1992; Roslan et al., 1994). Research on “biodiversity impact profiles” is not sophisticated enough to reach firm conclusions. For carbon storage, the picture seems to favour SFM fairly clearly. But SFM also loses some environmental benefits relative to the pre-intervention period. For the argument to have any substance, these non-timber values have to be sufficiently important to make up for reduced profits. While there is only a limited number of studies in Malaysia to guide in this respect, those that exist seem fairly uniform in finding that the non-market benefits of sustainable systems are significant. All tend to acknowledge that non-timber values more than offset lower timber volumes. The role of carbon is highlighted because a survey of non- market values suggests that carbon values dominate the non-market values overall (Kumari, 1995; Woon and Mohd Parid, 1999).

Pearce et al. (1999) concur that the prospects for SFM are low in the early stages of development, and increase over time as societies attach higher values to the forest and its services. Extended to include carbon and biodiversity values, it can be argued that the potential for SFM is far greater, even in the early stages of development, than might otherwise be thought.

JUSTIFICATION OF THE STUDY

One major stumbling block for introducing environmentally sound land management practices is the widespread perception that they are more expensive when compared with conventional methods. This explains why, in many locations, forestry sector stakeholders remain cautious about complying with criteria and indicators and adopting RIL. The search for relevant economic data has started and efforts have intensified to satisfy the growing demand for better information.

The need for this study on the costs of complying with the MC&I is evident given the substantial discrepancies in the available information. For example, ITTO (1995) suggested that SFM would cost producer members annually between US$ 3 500 and US$ 4 100 million while producer countries’ cost estimates exceeded US$ 7 000 million. This discrepancy is possibly due to the highly aggregated average figures used, which do not reflect the inherent variations in the various producer countries.

ANALYTICAL STUDY FRAMEWORK

The analysis is based on cost comparisons with and without compliance to MC&I activities. The cost incurred when not complying with these activities comes basically from using the conventional practice (CP). The list of pre-felling and felling activities conducted with and without compliance with MC&I activities is provided in Table 1. The conceptual framework for obtaining the incremental or additional cost of conducting each pre-felling and felling activity when implementing the SFM is given in Figure 1. Each harvesting activity occurs at different time periods. The costs of the pre-felling activities were compounded to the year harvesting was conducted (1999) as the reference base period to obtain the present value cost.

Table 1. Flow of harvesting activities in the implementation of sustainable forest management

Table 1. Continued

Figure 1. Analytical framework of cost analysis for harvesting operations METHODOLOGY

In Malaysia, crawler tractors are used normally for extracting logs in the hill forest. Excavators have been introduced recently not only to extract timber but also for road construction. Excavators reduce the damage to the residual stand and minimize road width. Chainsaw operators cut trees standing along the road, and lop off the crown ahead of the excavator, which is then used to arrange the cut trees along the road. This operation reduces the usual damages caused by the crawler tractor that indiscriminately pushes over trees causing excessive soil exposure. The crawler tractor levels and shapes the road, digs ditches beside the road and skids the cut trees to the log landing. However, introducing the excavator and tree felling along the road before the crawler tractor does its job, requires additional machinery rental, compensation for fellers and extra time in comparison with the conventional road construction system by crawler tractor only.

In this study, both CP and MC&I compliant (MC) options practised selective felling of trees tagged according to the prescribed cutting limits. Hence, they should have produced approximately similar harvested volumes. Felling involves the use of chainsaws to cut trees in the predetermined direction and cross-cutting. Later the trunk is bucked into appropriate lengths at the log yard. Felling and bucking involves several teams per compartment. A team may consist of two chainsaw operators; each one taking turns at operating the chainsaw and the other clearing and guiding felling directions.

Directional felling is standard but enforcement tends to be difficult. Theoretically, felling should be directed towards the skid trail with the tree crown ending up on the opposite side of the skid trail and the upper part ready to be hooked on to the crawler tractor. Borhan and Guglhor (1998) reported that 30 percent of the trees were felled completely away from the intended directions within a range of 25 to 90°, sometimes 180°. The reasons included feller’s deliberate disregard for the proper direction, preference to fell according to the natural lean, lack of skill and concern for safety. Instruction was given for adherence to directional felling in the MC option but to no avail. Skidding involves the moving of logs from the stump along skid trails to the feeder roads and log landing normally by crawler tractors fitted with a winch. The tractor operator is assisted by a helper who wraps and hooks the cable around the end of the log. The crawler tractor, which is equipped with steel tracks and a bulldozer blade, can be used on very steep slopes. A problem is that operators tend to scrape the soil and to push down trees with the blade. This leads to severe soil disturbance and excessive damage to residual trees and regeneration.

Using front-end loaders or grapplers, logs from the log landing are loaded onto the deck of a modified 10-wheeled truck or san tai wong for hauling to the main log landing. The san tai wong is agile and strong with a total weight capacity, at full load, of up to 40 tonnes. The cost of short hauling depends on the weight of logs and distance.

Timber harvesting was conducted using two systems; the MC&I compliance (MC) practice in a 43-ha research plot, while CP was conducted in the rest of the compartment (364 ha). Table 2 summarizes the characteristics of the study sites. Total timber production from the MC and CP plots was 991 m3 and 12 086 m3 respectively. Theoretically both plots are bounded by the Selective Management System (SMS). Hence, buffer areas around rivers and steep slopes were marked and protected from harvesting. The timber volumes not harvested in both plots were 203 m3 and 393 m3 respectively.

Table 2. Summary of study sites

Option MC&I compliance (MC) Conventional practice (CP) Area (ha) 43 364 Buffer and protected area (ha) 12 6 Net production area (ha) 31 358 Volume of harvest (m3) 990.67 12 086.14 Volume of harvest per ha (m3/ha) 32.36 33.76 Volume of commercial timber not 202.56 392.89 harvested from buffer area (m3) Road density (m/ha) 37.5 n.a.

n.a. - not available

RESULTS

Elements and incremental proportion of harvesting cost

Table 3 provides the present value per hectare of harvesting costs for the MC and CP options. The overall present value per hectare costs for harvesting were RM 6 426/ha[46] under MC and RM 3 949/ha under CP. Information of interest in this table is the distribution of the costs among the pre-felling, felling, additional training activities and foregone timber revenues. Table 3. Average present value cost of harvesting activities (Malaysian ringgit)

Activity MC&I compliance Conventional practice RM/ha % RM/ha % Management plan 37.92 0.59 8.10 0.21 Pre-felling activities 572.00 8.90 157.69 3.99 Road construction 1 086.54 16.91 130.24 3.30 Felling and related operations 2545.30 39.61 1 857.42 47.04 Taxation 2 174.26 33.84 1 795.42 45.47 Additional training 9.51 0.15 0 0 Total 6 425.52 100.00 3 948.88 100.00

Additional training was required to comply with the MC&I activities. This took up a small proportion of the total cost. The pre-felling activities comprised an environmental impact assessment (EIA), pre-felling inventory of commercial timber trees, compartment boundary demarcation, proposed road alignment and tree marking and mapping. The cost of pre-felling activities was higher under the MC option. With the exception of the EIA and tree marking and mapping, the differences between the two options were minor. EIA and tree mapping are new requirements in the MC&I. There is a recommendation now that the EIA be conducted for the entire annual coupe rather than for each compartment, which would reduce costs. Tree mapping is necessary to facilitate felling and prescribing skid trail alignment on the map to prevent excessive and unplanned skid trail construction.

A team of contract workers supervised by Forestry Department field staff usually conducts tree tagging. The contractor normally charges a rate of RM 1.80/tree tagged. Under the MC&I, tree mapping is required.

Harvesting activities include road construction, felling and bucking, skidding, log loading, short distance haulage, supervision and monitoring, administration and taxation. On aggregate, these activities dominated the total harvesting cost under both options taking up 90.51 percent under MC and 95.81 percent under CP. Payments for premiums and royalty charges, skidding and administration that included profits for the contractor were the major cost elements. The cost of road construction was low under CP (3.30 percent) but high under MC (16.91 percent). This requires additional costs for renting hydraulic excavators and longer work time to abide with the more rigid road specification according to the MC&I. The use of excavators rather than bulldozers in the road formation cut is to reduce unnecessary road corridors and to prevent excessive blading. In the MC plot, the lengths of the feeder road and skid trails were within the 40m/ha and 300m/ha limits set by the MC&I.

The above components are direct financial costs. The licensee, contractors and harvesting crews incurred opportunity costs due to higher timber volumes not harvested in buffer areas. The average production cost rose by 32.1 percent to RM 8 491/ha when the foregone timber revenues from buffer areas were included in the MC option. The mean production costs only increased by 5.47 percent to RM 4 168/ha with the inclusion of these foregone revenues in the CP option. The opportunity cost is computed as potential gross revenue net of the direct cost of extraction. Fixed indirect costs such as forest premium for the logging rights and road construction cost, were not included as they are considered sunk costs. These foregone revenues consist of foregone timber revenue incurred by the concessionaire and loss of royalty charges not collected by the Government. The protected buffers took up about 28 percent of the licensed area. Ironically, payments of forest premium for the logging rights cover the whole licensed area including the buffers. Hence, the concessionaire has an interest to recover a portion of the sunk cost incurred, by extracting timber from the buffer areas. Each harvesting crew will be paid on a piecemeal basis by the contractor depending on the quantity and quality of timber extracted. Likewise, the contractor will also be paid on a piecemeal basis by the concessionaire.

Table 4 shows the harvesting cost on a per cubic meter basis. Observed trends were similar to those on a per hectare basis. This information is useful as the timber harvesting industry is more familiar with measuring financial viability in volume units. The costs of harvesting were RM 199/m3 and RM 117/m3 under MC and CP options, respectively.

Table 4. Average total cost of harvesting activities per m3 timber production

Activity MC&I compliance Conventional practice RM/m3 % RM/m3 % Management plan 1.17 0.59 0.24 0.20 Pre-felling activities 17.67 8.90 4.67 3.98 Road construction 33.57 16.91 3.86 3.29 Felling and related operations 78.65 39.61 55.48 47.24 Taxation 67.18 33.84 53.18 45.29 Additional training on MC&I compliance 0.29 0.15 0 0 Total 198.54 100.00 117.05 100.00

Note: Average production rose by 32.1 percent to RM 262/m3 when the foregone revenue from buffer areas was included in the MC option. While the average production cost only increased by 5.5 percent to RM 123/m3 when the foregone revenue from buffer areas was included in the CP option.

The costs per hectare of harvesting were consistently higher under MC than under the CP option mainly due to higher labour inputs and expenditures on improved activities. However, for activities such as pre-felling inventory, the differences in the average costs were due mainly to the effect of averaging by a smaller net production area. The incremental proportions of the cost among the various activities were more variable. In aggregate, compliance with the MC&I led to an overall increase of RM 2 477/ha or 62.7 percent and RM 81/m3 or 69.1 percent (Table 5). The higher percentage increase in cubic meters is due to the lower timber yield under MC that raised the average cost relative to the CP. Among the various activities, the increase was 263 percent or RM 414.31/ha in pre-felling activities; 734 percent or RM 956/ha in road construction; 37 percent or RM 688/ha in felling activities; RM 9.5/ha in additional training; and 855 percent or RM 1 849/ha in the opportunity cost of foregone timber revenue. The activities with the most significant incremental costs were road construction, tree marking and mapping, skidding, and the opportunity cost of buffer areas.

Table 5. Average incremental cost of compliance with MC&I activities

Activity RM/ha % RM/m3 % Management plan 29.81 367.96 0.93 388.16 Pre-felling activities 414.31 262.74 13.00 278.40 Road construction 956.29 734.24 29.72 770.25 Felling and related operations 687.88 37.03 23.55 41.77 Taxation 378.84 21.1 14.00 26.33 Additional training on MC&I compliance 9.51 N.C. 0.29 N.C. Total 2 476.64 62.72 81.12 69.08

Note: The incremental average total cost rose by 74.76 percent to RM 4 323.15/ha when the incremental foregone revenue from buffer areas of RM 1 849.34/ha was taken into account. While the incremental average per m3 total cost increased by 70.46 percent to RM 138.91/m3 when the incremental foregone revenue of RM 57.42/m3 from buffer areas was included.

In some activities, the incremental cost is only due to a greater need for supervision and monitoring under the MC&I. This occurred particularly in proposed road alignment and road construction.

Cost sharing of incremental costs of MC&I compliance

Table 6 shows the incidence of the cost borne by the concessionaire, the contractors appointed by the concessionaire and the Forestry Department. The incidence of incremental costs is related to the logging business practice (many activities have been contracted out to the Forestry Department and licensee conducting supervising and monitoring activities).

For some activities, only the concessionaire was incurring the incremental cost. This occurred in management plan preparation and in taxation. In others, only the concessionaire and the Forestry Department were incurring extra costs such as in additional training. In pre-felling and felling activities, all three stakeholders had to incur an incremental cost.

Overall under both options, the Forestry Department was not burdened with a substantial share of the total incremental harvesting costs (11.87 percent). As expected the concessionaire and the contractors were affected by higher costs (23.46 percent and 64.67 percent). With the exception of tree mapping, the operational costs of the pre-felling activities were borne by the contractors for salaries and wages, and material inputs. The Forestry Department’s supervisory and monitoring costs seemed to be higher for tree marking and mapping operations and road design. The concessionaire’s cost was mainly for salary and wages for supervision and monitoring. The contractors and concessionaire incurred substantial expenditures for felling activities. The concessionaire’s contributions were mainly payments of premium and royalty charges.

POLICY IMPLICATIONS

The results indicate that complying with the MC&I for SFM implies additional costs for licensees, harvesting contractors and the Government. This paper has computed the incidence of this burden among these stakeholders. Consideration of compensation may have to be addressed explicitly to encourage compliance if SFM is to be achieved. Instruments for financing compensations have to be determined.

In Malaysia, harvesting compartments are allocated to a licensee who then appoints contractors to extract the timber. MC&I compliance requires the contractors to undertake additional activities, which if not compensated, reduce revenues and thus the incentive to comply. It is in the interest of the licensee to compensate the contractors, otherwise no timber will be extracted. The licensee has little choice but to absorb the additional cost, as compliance is a prerequisite for renewal of annual harvesting rights. The Forestry Department too has to conduct additional activities and reinforce its monitoring capabilities. Hence, the burden of the incremental cost is mainly borne by the licensee and the Forestry Department.

Table 6. Incidence of per hectare incremental harvesting costs for each activity among stakeholders when complying with MC&I

Activity Contractor Concessionaire Forestry Department RM/ha % RM/ha % RM/ha % Management plan 0.00 0.00 29.81 100.00 0.00 0.00 Pre-felling activities 11.14 2.69 163.85 39.55 239.32 57.76 Road construction 934.47 97.72 0 0 21.83 2.28 Felling and related operations 656.07 95.38 2.58 0.38 29.23 4.24 Taxation 0 0 378.84 100.00 0 0 Additional training on MC&I 0 0 6.11 62.35 3.69 37.65 compliance Subtotal 1 601.68 64.67 581.19 23.46 294.07 11.87 Foregone revenues from 0.00 0.00 1 724.68 93.42 121.53 6.58 buffer areas Total 1 601.68 37.05 2 305.87 53.34 415.60 9.61

An incentive package is required to encourage implementation of the MC&I. A transfer of funds to cover the incremental cost could fully compensate for lost benefits. In forestry, a user fee is an instrument used to correct resource underpricing that has in the past led to excessive exploitation and loss of government revenue. In the case of capturing a higher economic rent from timber extraction, setting stumpage fees by auction has been popular in many countries including Honduras and Malaysia.

Domestically, funding could be worked out through an adjustment of the Government revenue system from forestry. Government revenue comes in the form of lump sum premium payments, part of which are determined through auctioning stumpage fees, for timber extraction rights and volume-based royalty charges as tax revenues. Now that extraction costs have risen, a reduction in this stumpage fee could address the burden faced by the licensee. This can release some funds from the licensee for transfer to the contractors.

Another source is through a reallocation of state government’s annual budgets among agencies. The Forestry Department would require a larger budget to implement and enforce the MC&I. The country would stand to benefit from the reduction of off-site environmental impacts. This could relieve certain agencies of damage relief activities. A reduction of sedimentation and improvement of the water quality of rivers could alleviate the need for flood control activities such as dredging. An investigation of the off-site costs of clearing forested watersheds in the highlands indicated a substantial annual budget allocated for dredging to avoid a decline in hydroelectric power generation. Furthermore, a shift in timber harvesting from CL to RIL is expected to lead to a reduction in water treatment costs.

At the international level, markets have to be created for timber produced from sustainably managed forests. Unless there is a green price premium, compliance would reduce the profit margin of licensees and government revenues. Premium prices can only be obtained when there is good demand for this timber. To this end, ITTO has a role to play to promote such markets among its member nations.

The Global Environmental Facility could also provide funds for securing global environmental benefits such as carbon sequestration and biodiversity conservation. For example, implementing a set of RIL guidelines to reduce damage to soil and vegetation in Sabah, Malaysia has led to potential carbon savings of 90-94 tonnes/ha or 328-343 tonnes of carbon dioxide per hectare over 40 years (Pinard et al., 1995). Global benefits are shared by all nations, both developed and developing. Embedded is the perception that developing nations would be willing to intervene or take different actions such as complying with the MC&I if the international community would be willing to bear the incremental cost. In the context of SFM, the global benefits would be maintaining or enhancing capabilities to sequester carbon and to conserve biodiversity.

RECOMMENDATIONS

The above analysis is one step in evaluating compliance with the MC&I. The next step is to assess the benefits of compliance. Although results suggest additional expenditures being incurred by the stakeholders, there are cost savings to society due to a reduction in off-site environmental impacts. There are expected to be on- site productivity gains as well as from both timber and non-timber forests products that can be reaped during subsequent cutting cycles. Global society too is expected to gain from the higher potential for carbon sequestration and biodiversity conservation.

Compliance with the MC&I would require fulfilment of various encompassing factors. Dykstra and Heinrich (1996) suggested four components of a good harvesting operation:

● Comprehensive plan. ● Effective implementation and control. ● Methodical post-harvest assessment and feedback to the planning and harvesting team. ● Development of a competent and motivated workforce.

If these factors are not incorporated, full compliance with the MC&I will be suspect.

Incentives would have to be provided to encourage compliance by the affected parties. The full payment of premiums over the whole compartment may act as a disincentive to compliance. Nevertheless, there is an interesting twist to this circumstance. There is already an in-built mechanism to implement an economic instrument to encourage compliance with the MC&I. The premium being paid over areas not loggable in the compartment, can be treated as a form of performance bond that is returnable upon full compliance with the harvesting specifications. The closing report, together with an additional checklist of prescribed activities following the MC&I, could play an important role in deciding whether the bond is refundable.

ACKNOWLEDGEMENTS

We are grateful to the many organizations and personnel involved who made the field experiment and data collection possible. They include the Terengganu State and Dungun District Forestry Department, KPKKT, support from Forest Research Institute Malaysia’s staff and last but not least, funding from ITTO.

REFERENCES

Borhan, M. & Guglhor, W. 1998. Development of reduced impact logging methods/techniques in the project area. Paper presented at the Workshop on the Malaysian-German Sustainable Forest Management and Conservation Project in Peninsular Malaysia. Paper no 11. Forest Research Institute Malaysia (FRIM), Kepong, Kuala Lumpur.

Dykstra, D.P. & Heinrich, R. 1996. FAO model code of forest harvesting practice. Food and Agriculture Organization of the United Nations, Rome.

Elias. 1998. Reduced impact timber harvesting in the tropical natural forest in Indonesia. Forest Harvesting Case Study 11. Food and Agriculture Organization of the United Nations, Rome.

Holmes, T.P., Blate, G.M., Zweede, J.C., Pereira, R. Jr., Barreto, P., Boltz, F. and Bauch, R. 1999. Financial costs and benefits of reduced-impact logging relative to conventional logging in the eastern Amazon. Alexandria, VA, Tropical Forest Foundation.

ITTO. 1995. Approach and methodology for estimating resources and costs incurred to achieve ITTO’s Year 2000 Objective. Report of the expert panel, ITTC(XIX)/5.

Kumari, K. 1995. An environmental and economic assessment of forest management options: a case study in Malaysia. The World Bank: Environmental Department Papers No. 026.

Leslie, A. 1999. For whom the bell tolls. What is the future of the tropical timber trade in the face of a probable glut of plantation timber? Tropical Forestry Update, 9 (4): 13-15.

Panayotou, T. & Ashton, P.S. 1992. Not by timber alone: economics and ecology for sustaining tropical forests. Washington: Island Press.

Pearce, D. Putz, J. and Vanclay, J. 1999. A sustainable forest future? CSERGE Working Paper GEC 99-15, School of Environmental Sciences, University of East Anglia, Norwich.

Pinard, M.A, Putz, F.E, Tay, J. & Sullivan, T.E. 1995. Creating timber harvesting guidelines for a reduced-impact logging project in Malaysia. Journal of Forestry, 93(3): 41-45.

Roslan Ismail, Abd. Rahim Nik, Lim Hin Fui, Zulkifli Yusop and Woon Weng Chuen, 1994. Economic case for natural forest management. ITTO Report, PCV (VI)/13, Volume I, main report.

Woon, W.C. and Mohd Parid M. 1999. Economic valuation of protective and productive functions of the North Selangor peat swamp forest. In: Mohd Shahwahid (ed.) Manual on economic valuation of environmental goods and services of peat swamp forest. Malaysian-DANCED Project on Sustainable Management of Peat Swamp Forests, Peninsular Malaysia.

[45] US$1.00 = Rp 2 600 (1996). [46] US$1 = RM 3.8

29. Policies, strategies and technologies for forest resource protection - William B. Magrath* and Richard Grandalski**

* Senior Natural Resource Economist, East Asia Environment and Social Affairs Unit, World Bank Office, Beijing Tel: ++(86 10) 6554 3361 ext. 2630, Fax ++(86 10) 6554 1686

** Chief Technical Advisor, Law Enforcement Expert, FAO, Cambodia, Tel: ++(855 16) 84 8218, Fax ++(855 23) 21 8739

INTRODUCTION[47]

Forest resource protection in many countries addresses issues from the definition of the forest, to the establishment of the government agencies responsible for aspects of forest policy and management, to the creation of mechanisms for conflict resolution, and other concerns.

This paper is not intended as a guide for the law enforcement practitioner. Instead, it addresses those concerned with overall forest policies and with the place of forest resource protection within them. By presenting forest resource protection as tangible and tractable parts of a broader natural resource management (NRM) and policy system, the paper aims to help further raise the content of policy dialogue and analysis beyond exhortation and accusation.

FOREST RESOURCE PROTECTION - A GLOBAL PERSPECTIVE

While it is tempting to call all threats to the world’s forests ‘illegal’, it would be an unhelpful oversimplification to assert that violations of forest resource protection are the only, or even the most important hazards. Even where regulations are violated in the course of forest destruction or degradation, more intricate and elaborate chains of causation, involving poverty, environmental change, competing demands and other forces are also at work. Nonetheless, a law enforcement perspective does have a great deal to offer in understanding forest loss and in offering specific recommendations and interventions. Indeed, there is an enormous and increasing body of evidence that suggests that activities carried out in violation of forest resource protection regulations are important contributors to the global decline of forest resources.

Most activities that can be perceived as violations of forest resource protection are not inherently wrong or bad. Unauthorized logging, land clearance, setting fires, hunting and other potentially unwanted activities may, at some time and in some places, be legal, desirable and even promoted. Where they are unwanted, they acquire their illegality only in reference to violations of specific prohibitions and, in some legal frameworks, after specific judicial determination that they contravene those prohibitions. From a practical point of view, however, the importance of forest resource protection violations can be classified in a number of ways.

Categories of forest resource violations

Logging in breach of a permit, plan or contract, regulation, or law Wildland arson Wildlife poaching Non-timber forest products in breach of regulation, plan, or law

Consequences of forest resource violations

Forest destruction and degradation Loss of revenue and economic development Social consequences At the heart of forest resource protection are such questions as, how does society intend natural resources to be used? who will they benefit? and how is management to be carried out? Before expecting resource managers to enforce resource infractions or violations as a narrow technical function, it is essential that policy- makers consider the whole social, economic and physical setting for resource policy. In particular, sensible resource policy anticipates the incentives facing resource users and the resources available to managers and seeks to optimize the structure of the resource management framework.[48]

As Brunner et al. (1999) suggest, many governments contribute to forest resource protection problems by adopting policies and legislation that are in serious conflict with the fundamental social and physical setting. Resource users act as they do - they log, they set fires, they clear land, they hunt - largely, if not entirely, because it is in their economic interest. The mere imposition of formal legislation, however well intentioned, does not change the basic underlying incentives faced by resource users. Rather, it may simply criminalize people and activities artificially with little lasting consequence on the resource base.[49]

Taken together, all of these considerations yield one of the key lessons to emerge from experience with forest resource violations: use resource policy to avoid, as much as possible, the need for enforcement and especially for public sector assistance. This general principle also leads to a number of subsidiary and related recommendations.

STRATEGIES - PREVENTION, DETECTION AND MONITORING

In an important and very real sense, forest protection is needed as a response to an unanticipated policy breakdown and to weaknesses or vulnerabilities in NRM planning. Realistically, even the best policy frameworks will be tested and abused. In anticipation of these abuses, governments need to institute strategies to protect the resource efficiently and effectively from unwanted activities. Enforcement specialists generally identify two major and strategic elements in forest resource protection programs: prevention, and detection or monitoring. Collectively, these seek to discourage unwanted activities.

Prevention: A sound policy framework is a major contributor to the prevention of forest resource protection violations. But going beyond general policy considerations, forest resource protection and violation prevention can be addressed specifically in resource management operations, programs and projects. Particularly critical is prevention at the level of the forest management unit (FMU) and through public education.

Building forest protection into NRM presumes the presence of formal, science-based management programs. The sophistication of forest management plans and programs will vary with the circumstances of particular forests and forest managers and users. Nonetheless, modern standards for forest management typically call for written plans based on serious consideration and determination of management objectives, assessment and inventory of the resource base, projection of management activities, estimation of a budget and resource requirements and provisions for evaluation and plan revision. It is well known, unfortunately, that most forests, especially in the developing world are not covered by plans of acceptable quality. Moreover, few if any standards for forest management planning specifically call for attention to forest resource protection, although infractions might actually be as important a consideration as more standard planning subjects such as infrastructure, harvesting, regeneration or environmental assessment.

Whether it is in the context of revising existing plans or preparing plans from the beginning, forest resource protection at the FMU level begins with an assessment of vulnerabilities. The planner needs to assess practically and realistically what violations threaten the FMU and how these might influence the achievement of the management objectives set for the area.

From recognition of the risks that an area faces, the planner can begin to integrate preventative measures into the overall FMU plan.

Public education and awareness is another aspect of prevention in which government can also cooperate with the private sector and civil society groups such as NGOs. Information campaigns can address the provisions of forest law (ensuring that users are at least informed of restrictions and prohibitions); the justification for restrictions (informing the public, for example, of the damages that restrictions are intended to prevent); and actions, which the public can take to support forest resource protection.

The primary purpose of prevention management is to ensure compliance with laws and regulations designed to promote sustainable forest management and use. Commercial timber and non-commercial forest product management involve ensuring that exploitation occurs only in forests authorized for such use and that within these forests the level, nature, geographic distribution and frequency of exploitation are consistent with the principles of sustainable development.

A second purpose of timber and forest product management is to ensure that the government receives its fair share of revenue generated through exploitation of public resources.

STRATEGIES

1) Maintain order in forests and protected areas.

2) Increase revenue returns from authorized activities.

3) Prevent damage to forest resources resulting from unwanted resource violations.

4) Meet sustainable yield targets.

5) Involve the public through information and education programs to prevent violations and damage to forests and protected areas.

6) Increase skill levels of forest technicians and forest managers in prevention, detection and monitoring programs.

7) Reduce susceptibility or vulnerabilities that can create opportunities for unwanted activities to occur. GENERAL PRINCIPLES OF PREVENTION

Forest policy and planning should recognize timber and other management measures for forest product protection as a major development goal.

● Prevention is everybody’s business and must become a fully integral activity toward achieving excellence in protecting valuable resources. A preventable unwanted activity involving timber and other forest products adversely affects and reflects the government’s image and its effectiveness in caring for the land.

Due to the complexities associated with managing government land, it is critical that efforts be made to reduce situations that generate unwanted activities. Contract requirements, stipulating that the contractor is required to prepare plans to prevent violations in the contract area before any harvesting, are essential. The government should also prepare similar plans for timber sale and all other forest areas where products are exploited.

A forest resource protection plan prepared by the contractor will provide a government with assurances that the contractor is going to take necessary steps to prevent unwanted logging from occurring on the contract area. Contractors would be required to address each of the following components.

Sale area controls

● Pre-harvest meeting with employees to review contract.

● Review maps, boundaries, tree-marking requirements with tree cutters.

● Reporting requirements when problems arise such as designated trees not clearly marked.

● Procedures to follow when authorized trees hang up in unauthorized trees. ● Parcel inspection schedule for contract compliance.

● Action if contractor employees violate the contract or engage in inappropriate behaviour.

● Sale area security plan.

● Schedule of pre- and post-harvest meetings with the contractor, tree cutters, sub-contractors, forest monitors.

● Schedule of harvest compliance inspections.

● Documentation requirements of all actions and inspections.

Proposed transit controls

● Prepare maps showing authorized haul routes. ● Establish haul routes, schedules and limitations.

Government forest resource protection and prevention plan

● The government’s plan should be in parallel with the prevention plan for concession timber theft along with the following additional items:

Sale area

● Guidelines on a log tracking system (use of tree labelling tags, bar code tags or paint with tracer or code elements such as micro-taggants.

● Schedule of harvest compliance inspections.

● Post-harvest approval guidelines.

● Reporting procedures and documentation requirements for violations or contract non-compliance.

● Guidelines and policies on use of scaling control equipment or material.

Detection includes planned actions using aircraft and ground monitoring and surveillance personnel to document and report observations to determine where unwanted activity is occurring.

This kind of information is crucial for priority setting and for use in evaluation and feedback into other elements of the forest resource protection program. Detection systems include use of satellites, aircraft, ground monitoring and surveillance personnel to document the location, type, extent and scope of forest resource protection problems occurring in an FMU. As important as the sophistication of the data collection process, are the procedures for data analysis to draw inferences for the rest of the forest resource protection program.

Remarkably, few governments have systematic monitoring programs for forest resource protection. As a result, even the most basic data on illegal activity, which by definition are difficult to assemble, are seldom available to guide priority setting and the allocation of resources. The kinds of information that are needed include the geographic incidence of different infractions, the type of infractions that are occurring and the apparent level of problems. Even highly indirect methods can be used to begin to assess if there might be problems. For example, comparisons of data on a country’s production, consumption and trade in forest products with its trading partners often shows significant disparities between recorded exports and recorded imports. ITFMP (1999) provides an example of the use of discrepancies between production and consumption as estimated by installed processing capacity in Indonesia. These differences can provide one indication of the potential magnitude of the problem. Similar consistency checks are useful in terms of forest revenues and reported harvest. Detection should also involve a process to determine if there are any institutional weaknesses that can create opportunities for infractions to occur. These opportunities can result from inadequate boundary marking, product marking, product measuring, product tracking or an inadequate process of checking for revenue payments.

Monitoring data is also important for feedback and evaluation of the impact and efficiency of forest resource protection programs. Without defensible and realistic baseline data claims to impact cannot be verified and leave the credibility and commitment of forest resource protection programs subject to question. For these reasons, and the relative simplicity and ease with which monitoring systems can be established, systematic detection programs for forest resource protection should be one of the first priorities in a serious forest resource protection program.

Three elements must be present for unlawful removal of timber or other forest products to occur. There must be a means, motive and an opportunity. The means is simply a way to remove the government property without authorization. The motive can be many reasons, but is usually money. It is difficult for governments to have control over either the means or the motive but it can control opportunity. Unwanted activity can occur if inadequate boundary marking, product marking, product measuring and product tracking exist or policies, procedures or laws are not followed. Good timber accountability begins with the planning process and ends when assurances are made that only authorized material is removed from the forest.

TECHNOLOGIES - HARD AND SOFT

It is clear that there are no easy solutions for forest resource protection problems that an FMU may be encountering. Experiences in numerous countries however, point to a number of technologies, in the sense of institutions as well as equipment and hardware that can be employed to facilitate specific forest resource protection functions.

Community involvement: In many ways much of what has been developed as social or community forestry over the last 20 years has been a response to what were at one time perceived as law enforcement problems. Efforts to develop agroforestry, farmer production of fuelwood and other domestic wood needs, and joint forest management in many places have their origins in efforts to develop socially sound ways of achieving forest management objectives that could not be reached through traditional police- style forestry regulation enforcement.

Legal and judicial reform: Laws and regulations sometimes need to be adjusted and revised to make forest resource protection more supportive of desired forest management objectives. Tree and log marking and tracking: A technology that has attracted considerable attention for log monitoring and tracking is the use of optical bar coding to identify and track logs. These high technology systems are recent refinements to widely known and used log and tree marking and labelling systems. While the new technology offers greater protection against contract violations and can, at some significant costs, provide real-time monitoring of log movements, the basic intent remains the same. Prior to felling, trees to be felled are marked or tagged.

The new computer-based tagging systems aim to strengthen these chain of custody record-keeping systems by reducing the scope for mistakes, and by realistically permitting real-time tracking of log movements.

Remote sensing and global positioning systems (GPS): The rapid development and ease of access to high-quality satellite imagery and to inexpensive and accurate GPS navigation devices greatly increases the possibilities for detecting and monitoring forest landscapes over broad and remote areas. Recent applications in the Amazon and Southeast Asia illustrate the potentials and limitations.

Forest resource protection monitoring programs: When governments encounter forest resource protection problems, there is a tendency for the shear magnitude of information to become overwhelming. A government that is committed to reducing unwanted activities will take steps to utilize the available data to better understand the problems it may be facing.

A serious monitoring program for forest resource protection can be established at minimal cost to enable the routine synthesis of data on unwanted activity by nature of the infraction or violation, geographic concentration, volume or value of the incidents and by other classifications. A standard approach is the development of a computerized tracking system. In such a tracking system all reported incidents are entered routinely into a database following a standard procedure and protocol and all subsequent information and action, including further action needed, recoveries, and fines are recorded and available for recall. This permits analysis of patterns of unwanted activity, the effectiveness and consistency of follow-up and provides an indication of the rigour with which appropriate action is being pursued.

Clearly, a computerized tracking system can only reflect the data provided by the monitoring effort. This also allows a check of the rigour of the forest resource protection system. It is important to note that incomplete reporting can result from several sources, e.g. capacity, skills and commitment. In addition to a willful failure to implement, inadequate training, communications and systems failure are among the possible sources of inconsistency. While understandable, these should decrease as experience with implementation builds. A program of independent monitoring in association with a new computerized tracking system is now in its early stages of implementation in Cambodia using Global Witness as an official independent monitor.

Forest certification: Although not primarily conceived as a means of forest law enforcement, forest certification schemes could contribute to improved forest resource protection in several ways. More directly related to timber harvesting, monitoring and prevention, many schemes call for maintenance of chain of custody controls on logs as a way of excluding the mingling of illegal material with controlled harvests.

CONCLUSIONS

While violations of forest resource protection can be widespread around the world, the analysis and experiences summarized in this paper suggest that concerted efforts by governments, communities and international organizations could begin to employ on a wider basis a large number of promising approaches. While there is great variation among the problems, tools and approaches, a number of themes dominate and deserve emphasis. Most important is the extent to which enforcement of forest laws depends upon and must be integral to ongoing science-based programs for natural resource management.

Forest protection needs to be considered as a specific dimension of resource management, one that may need to rise to be on a par with more traditional aspects such as silviculture, harvest planning and wildlife management. While less well documented, there is a body of professional experience and practice that can form the model for development and application. A related conclusion is that the need is not so much for more forest resource protection, as it is for better forest law and policy and for better and more effectively targeted forest resource protection. Moreover, the forest protection effort is not simply measured by infractions, or actions taken against unwanted activities, but by the state of forest resources for which protection is desired.

REFERENCES

Brunner, J., Seymour, F., Badenoch N. & Ratner, B. 1999. Forest problems and law enforcement in Southeast Asia: the role of local communities. Paper presented at the Mekong Basin Symposium on Forest Law Enforcement, June 14-16, 1999.

ITFMP. 1999. Illegal logging in Indonesia. By Indonesia-UK Tropical Forest Management Programme. Paper presented at the Mekong Basin Symposium on Forest Law Enforcement, June 14- 16, 1999.

[47] This paper is condensed from a more detailed version and provides a summary of key findings on forest resource protection in developing countries based, in part, on the experiences and papers shared at the Mekong Basin Countries Symposium on Forest Law Enforcement held in Phnom Penh, Cambodia, June 1999, and at the WB/WWF Alliance Seminar on Controlling of Illegal Logging in East Asia in September, 2000. [48] It is interesting to note that much of the natural resource economics and policy literature refers to what are functional equivalents to forest violations as examples of common property or open access problems. In the formal, mathematical dimensions of the literature, enforcement is highly stylized and essentially substitutable, albeit at differing costs, to a variety of other instruments such as taxes. Here the focus is on characterizing enforcement in much more tangible and operational terms. [49] Many of the case studies of nationalization of natural resources in the policy-failure literature are directly relevant. Some critics use these observations to call for radical re-examination of forest policy frameworks - especially as they relate to questions of forest land tenure, consideration of subsistence needs of the poor, recognition of indigenous or ancestral land rights - and to question the fundamental legitimacy of many national forest policies.

30. Cautious optimism but still a long way to go - Thomas Enters and Patrick B. Durst*

* FAO Regional Office for Asia and the Pacific, 39 Phra Atit Road, Bangkok 10200, Thailand, Tel: ++(66 2) 697 4000, Fax: ++(66 2) 697 4445, E-mail: [email protected] and [email protected]

Close your eyes and visualize a world in which the sustainable management of natural forests has become commonplace. Concession planners, working together with competent and motivated government foresters, carefully identify and map areas for harvest. Critical ecological and cultural areas are recognized in cooperation with local residents and ecologists and set apart for protection. Stands to be harvested are thoroughly inventoried and trees to be felled as well as future crop trees are meticulously mapped and marked. A low-density road network is designed, the size of landings limited and extraction routes are carefully sketched out and linked with anticipated felling directions. Highly-skilled and well-trained tree fellers and equipment operators ensure that damage to the remaining residual stand and soils is minimized, and logging residue is reduced to a minimum. After logging, skid trails are, whenever necessary, rehabilitated, roads are closed and log culverts and temporary bridges are removed. Access to the area is restricted to allow the forest to regenerate for the next cut. Post-harvesting assessments have become standard procedure to provide feedback to concession holders and logging crew, to evaluate their performance and to provide them with the agreed upon reward for sound and effective timber harvesting. Wouldn't that be nice! If you find it difficult to have such nice thoughts you can open your eyes again and look at reality. Within the Asia-Pacific region, a number of countries have imposed logging bans or similar forest harvesting restrictions for their natural forests (Durst et al., 2001). In those countries, there is, at least for the time being, no need to discuss reduced impact logging (RIL) and other improvements in forest management, as the legal harvesting of timber has ceased. Although the final words on the merits of logging bans have not been spoken, the majority of people concerned about the future of the natural forests in Asia- Pacific do not view such bans as a practical and effective step towards forest conservation. Most people agree that forests should not be locked up and harvesting needs to continue. But how can we ensure that natural forests are managed sustainably, and how can we bring about the necessary changes that makes the application of RIL an integral part of forest management?

These two questions were debated during the conference and dealt with in detail in the preceding sections of this book. There is general consensus that environmentally-sound timber harvesting is a fundamental aspect of sustainable forest management and that RIL is one means to improve forest management. It is also obvious that adoption of RIL is largely contingent on satisfying concerns about its direct and indirect costs, and political commitment by governments in the region. While there is broad agreement on numerous issues, there is also disagreement, which continues to constrain the widespread adoption of RIL.

In this final paper we distill the lessons learned and synthesize the experiences gained in the recent past. While we draw heavily on the papers of this book, we also use additional information in discussing, on which aspects we find broad agreements and where a consensus has not emerged yet. The discussion concludes with recommendations as they were presented and deliberated at the end of the Conference.

THE NEED FOR CHANGE IN ATTITUDES

In discussing the persistence of poor logging practices in the tropics, Putz et al. (2000a) point out the widespread perception among representatives of the logging industries that there is "nothing wrong with current logging practices." This is perhaps surprising as Poore et al. (1989) concluded more than ten years ago that most of the world's tropical rainforests were managed in an unsustainable way. This assessment has been echoed by others including the venerable forester Alf Leslie who, in describing present-day practices, refers to the "... mess left by logging practices which are almost standard in tropical forests and still fairly common in temperate forests (2001, p. 32).[50] The attitude that there is nothing wrong appears to be very common at all hierarchical levels of forest management, from senior management all the way down to operators. The Sarawak Timber Association (STA), for example, faces resistance to its tree felling training program by tree fellers who express their misgiving about the training in the following way: "We have done this for so many years, why should we go through this training?"

Obviously there is something wrong (Johnson and Cabarle, 1993; EIA, 1996; Dawkins and Philip, 1998). Concern over the world's forests and their capacity to maintain their environmental values and production potential has been manifested by increased exposure in the media and heightened consumer concerns. Many consumers - predominantly in industrial countries - ask for "green" forest products (Telfer, 1996), although they may not have the willingness to pay higher prices for timber sourced from sustainably managed forests. The logging industries either feel the pressure exerted by environmentalists and consumers or have started to agree with them because otherwise STA or the Association of Indonesian Forest Concession Holders (APHI), as well as a growing number of timber companies, would not invest in training operators and supervisory personnel. However, investments in human resource development are fruitless, if attitudes towards quality of work do not change along with skill upgrading. Gone are the days when natural forests appeared to be an inexhaustible sea of trees stretching from one end of the horizon to the other. Decision makers and forest managers alike have to acknowledge that tropical forests are not an inexhaustible resource. Although it is a renewable resource, if managed properly, it is finite if overexploited. Recognizing this requires an attitudinal change towards the resource, and a professionalism in timber harvesting, which unfortunately is still lacking in many concession areas and forest agencies.

What constitutes logging waste or residues also has to be reconsidered. In a recent study, Enters (2001) estimated that every year approximately 24.6 million m3 of "waste" is generated within Asia-Pacific, which can be economically used. Whether such a reduction can automatically translate into a reduction in the annual area of tropical forests harvested, as Dykstra concludes, is open to question. However, the more efficient use of this raw material can certainly offset some of the additional costs of RIL, as Holmes et al. describe in their study in Brazil. Innovative royalty and fee schemes for making the extraction of logging residues more attractive is only one step in the right direction. More important is that professional foresters realize the value of what is currently left in the forest to rot.

This professionalism also needs to acknowledge that natural forests differ from tree farms in that they provide more than just raw material for the wood-based industries. The recognition that forests provide an array of goods and services with local and global benefits has not only emerged since UNCED. Long before Rio, foresters acknowledged the need for multiple-use forest management. Unfortunately, this recognition has rarely been translated into operational changes and forest exploiters still dwarf professional forest managers in numbers. In addition, as Dykstra explains, "there is a tendency to treat the logging operation in the way farmers treat the slaughterhouse - hide it away in the hope that it won't disturb the customers." As long as we treat forests as slaughterhouses, there is little hope for their survival. It is this attitude or perception that needs to change before we can expect the widespread application of RIL.

RIL, A NECESSARY BUT NOT A SUFFICIENT CONDITION FOR SUSTAINABLE FOREST MANAGEMENT

Those who thought that it takes only the application of RIL to turn what Leslie called a "mess" into sustainable forest management, will be disappointed to learn that RIL is widely considered a necessary condition only. It is not sufficient to focus efforts on improving timber harvesting without acknowledging that the complexity of the tropical forest ecosystem requires other measures to provide many goods and services over long periods of time. Even if we define sustainable forest management narrowly as sustainable timber management, environmentally- sound harvesting will not guarantee that subsequent cuts will produce similar volumes of comparable timber quality as the first cut.

The natural forests in the tropics are complex ecosystems, rich in genetic and species diversity. While many temperate forests may be made up of only a limited number of tree species, a tropical forest contains literally hundreds of different species, with different reproductive characteristics and regeneration dynamics. This makes these forests far more difficult to manage.

Forests differ in their biodiversity value and their capacity to support different intensities of harvesting (Putz et al., 2000b). Accordingly, one would think that logging regulations would be rather intricate. However, they are not, which probably does not matter too much in those forests where only one tree in 10 ha is removed. In Southeast Asia, as Sist et al. explain, any tree with a diameter at breast height (DBH) above a specified limit of 60 cm may be felled. In the dipterocarp forests, the so-called minimum diameter cutting limit (MDCL) leads to harvesting intensities of 10 to 20 trees/ha or 100 to 150 m3/ha. Under such high extraction rates, even RIL is unable to reduce damage sufficiently to guarantee sustainability.

Although science is currently not able to assess the precise impacts of logging on ecosystems, plant communities, species and genetic diversity, it is clear that it leads to substantial changes in the structure and composition of forest stands. Although the effects under conventional logging regimes are most likely more pronounced, assuming that they are insignificant under RIL is erroneous. Sist et al. suggest four rules in addition to the MDCL to maintain timber species' populations. Other strategies include setting aside a portion of each logging area for complete protection (Putz et al., 2000b), which is of major concern to the logging industries because of forgone benefits. Furthermore, as Jonkers stresses, concurrent logging over large continuous areas should be avoided to reduce the negative impacts on wildlife.

These points illustrate that RIL is likely to be only the beginning of moving towards sustainable forest management, and that the road to sustainability is more challenging than many thought. Tropical forests and the biodiversity they contain need to be recognized as complex systems that require distinct regulations and flexible silvicultural treatments. In addition, as Jonkers points out, RIL planning needs to consider the needs of local people.

ALTERNATIVE HARVESTING SYSTEMS

Talk about RIL and invariably you think about improving the standard ground-based tractor logging systems, although there are still some pockets of indigenous logging practices such as the kuda-kuda system in the swamp forests of Sarawak, Malaysia, or logging with elephants (e.g. in Myanmar and Thailand) or carabaos (e.g. in the Philippines). The days of timber harvesting in the lowland forests are mostly gone and activities have moved into the hills where ground-based systems are increasingly difficult to apply, are more expensive, cause greater damage to the forest and result in higher negative externalities, especially from increased soil erosion and stream sedimentation rates.

In his paper, Chua describes helicopter logging as a viable alternative to ground-based systems, although there are various constraints to using helicopters on a wider scale. While costs can be competitive, helicopter logging requires skills that are often not available locally. Supervision also differs substantially from ground-based systems, as the area where the logging takes place is far less accessible. These are constraints that can be overcome with time. The major concern that remains is the impact of helicopter logging on biodiversity, as the area considered difficult terrain under the conventional harvesting decreases considerably for helicopters. This emphasizes once again the importance of setting aside completely protected areas within production forests, which will make helicopter logging financially less attractive.

Yet, another alternative is skyline logging, the standard system in the mountains of Bhutan. Under the Bhutanese conditions it is the only viable option according to Thinley. In the tropical forests of Asia, it is rare and still in an experimental stage. However, as Aulerich and Sirait explain, in steep terrain it seems to be the most promising alternative for improving production, decreasing costs and reducing environmental impacts.

The examples in the three papers indicate that we should not concentrate our efforts solely on improving ground-based systems. Alternatives exist, although embracing them too enthusiastically could be misguided. As with RIL, the systems are only tools of better forest management but do not constitute sustainable forest management in themselves.

ENVIRONMENTAL BENEFITS

Perhaps the greatest impediment to the wider adoption of RIL is that it was originally promoted, if not even marketed, as an environmentally friendly way of harvesting in the tropical forests. The initial impetus for bringing tropical forests under sustainable management came from the environmental movement as well as some concerned foresters who dared to swim against the current. Before others could contribute to the discussion, to many forest managers RIL became something one does for the environment, something with a green touch. Until today the perception - or rather misperception - persists that doing something for the environment is costly and reduces profit margins. We will turn to the impact on profit margins later as this is an area of great controversy. In contrast, regarding environmental benefits there is unanimous agreement; RIL is good for the environment in general and for the residual forest stand in particular. At least it is superior to conventional logging.

When properly applied, RIL can have dramatic results. The review of 266 studies and articles on RIL and conventional logging in tropical forests by Killman et al. revealed the following environmental benefits from RIL

● On average, RIL results in 41 percent less damage to residual stands when compared with conventional logging systems. ● The area covered by skid trails in RIL operations is almost 50 percent less than in conventional logging, even for similar volumes extracted.

● The area damaged by road construction is about 40 percent less with RIL than with conventional logging.

● Overall site damage (compaction, exposure of soil, etc.) in RIL operations is generally less than half that in conventional logging.

● Canopy opening is generally about one-third less in RIL compared with conventional harvesting practices (16 percent versus 25 percent).

● The volume of lost timber (i.e. merchantable logs that have been prepared for extraction but not found by skidder operators) is reduced by more than a third in RIL operations.

The question that has not been answered in the comparative studies on damage under RIL and conventional logging is, whether a reduction of 50 and more percent is sufficient to guarantee the long-term integrity and value of the region's production forests. Leslie asked the question of "how much is enough?" The answer to this seemingly simple question is difficult and requires more long-term research efforts in the future.

NEED FOR TRAINING

Besides a strong political commitment, the single most critical requirement for the adoption of RIL on a wide scale in tropical forests is the availability of skilled personnel at all levels. This message in consistently woven throughout most papers in this book.

Providing training to increase the skill levels of forest harvesting operators is not a new idea. Most employees are informally instructed and learn on the job. This is slowly changing and many organizations and projects have started to provide organized training, in particular for field-level workers directly involved in logging operations such as tree fellers and tractor operators.

In the absence of thorough needs assessments, the impact of training has been disappointing. Recently, the consensus has emerged that much can be gained by bringing order to the proliferation of training efforts, which are dissipating scarce resources. It has been realized that what has been lacking in the past is a cohesive strategy for improving forest harvesting practices through a structured and systematic approach to training and education of industry and forest agency personnel at all levels. The APFC has responded by preparing a "Regional Training Strategy," which lays the foundation for a comprehensive effort to build a skilled and trained workforce with the competency to perform tasks and responsibilities effectively and efficiently (Vergara).

A number of key messages emerge from the papers on training. First, training efforts are constrained by the scarcity of suitable trainers and many people in target training groups may not have received any formal training or education before. To be effective and relevant for field workers, training must be conducted on the ground under local conditions. This means training sites are dispersed and difficult to access. Language will also remain a challenge until the number of local trainers has increased significantly (Chan and Kho).

One encouraging sign is that the concept of training for improved timber harvesting has progressed considerably from a very narrow focus on operations such as directional felling and improved skidding to now include training for staff at supervisory and management levels. Training is not only necessary at different levels within an organization but also for regulatory groups outside the organization (Aulerich and Sirait). Ultimately RIL needs to become an integral part of formal education in technical schools, colleges and universities (FAO/APFC, 2001).

Blombäck and McCormack emphasize that training in RIL entails much more than just developing capacity to carry out tasks more efficiently and with less damage. In many countries, the forestry sector continues to be seen declining in importance and highly dangerous. Compared to other sectors forestry is characterized by a high labor turnover that drains skills, and reduces productivity and earnings. If working conditions are unattractive, turnover is inevitably high, which makes it impossible to instill and maintain the skills needed for RIL. It is therefore crucial to integrate safety and health concerns in training, planning, organizing and supervising operations.

INCENTIVES, MORE EFFECTIVE REGULATIONS, AND PARTNERSHIPS

Although the distribution of financial costs and benefits of RIL remains unclear and contentious (see below), RIL provides tangible benefits, especially environmental benefits. This raises the question of whether those who contribute to the successful application of RIL should be compensated for providing such benefits. At present, progressive concessionaires and forest operators receive no incentives to conduct environmentally sound harvesting (Hinrichs et al.). In general, a near consensus has emerged that incentives are necessary to stimulate positive changes in timber harvesting, although what form they should take remains vague, and who should receive them is still uncertain.

It is probably being recognized that providing equitable and secure tenure and enhancing resource values constitute powerful incentives for the adoption of SFM, in general, and RIL, in particular. Such incentives are undoubtedly easier to sustain than external funding (Bennett), although they are far more difficult to introduce. Among the proposals are calls for the establishment of long-term, legally binding land-use planning and increased resource security for timber companies. However, the conversion from short-term harvest licences to long-term agreements is no panacea and will not in itself prevent land users from acting in ways that impose social costs (Dagang et al.). Long-term agreements need to be complemented with market-based incentives and more innovative royalty schemes that reward quality and penalize waste and destructive practices.

It is obvious that current volume-based payment schemes and piecemeal rates for operators will not lead to improved forest harvesting. For tree fellers, current payment schemes mean that it only counts how many cubic meters are cut, irrespective of damage to the forest. More careful harvesting (i.e. less damage) will usually lead to lower productivity and therefore lower income. As long as operators are not compensated for improved felling and yarding operations, nothing will change. Quality needs to be rewarded and this is an area where incentives have a key role to play. Training must be made more attractive and higher skill levels need to be rewarded with more money in the pocket. An alternative payment scheme may consist of a fixed monthly salary, a piecemeal bonus and a quality-dependent reward (Dagang et al.).

Although incentives are important policy instruments and can clearly contribute to improved forest harvesting, they do not constitute a silver bullet. Equal weight needs to be given to more appropriate regulatory frameworks and rules (i.e. "carrots" need to go hand in hand with "sticks"). Enforcing regulations is a crucial missing element, as many forest managers have become accustomed to operating in an environment where performance requirements can be manipulated easily (Klassen).

Where the forest policy environment is overly prescriptive, bureaucratic and input-based, and meaningful monitoring and evaluation are ignored, the widespread adoption of RIL will remain constrained. Bennett advocates an alternative approach that focuses on forest management outcomes to allow site- specific adaptations while providing the framework for sufficient regulatory oversight. This approach is comprised of simpler and more useful regulations that focus less on pre-logging inputs and more on post-logging outcomes such as minimal logging residues and rapid recovery of the residual forest stand. Local and central government accountability are likely to be pivotal in the adoption or rejection of output-based policies.

Ultimately, neither the "carrot" nor the "stick" will result in compliance with codes of forest practice and tangible improvements of forest harvesting as long as relationships between regulators and forest managers remain antagonistic. Apractical solution to this has been pursued in Tasmania where adversarial and punitive approaches to regulating forest practices have been replaced by partnership arrangements among various stakeholders to facilitate progressive forest practices and achieve mutually agreeable outcomes (Wilkinson).

The importance of "mutual agreements" is significant. Forest concessionaires tend to resist changes that are imposed from the outside even if they are sweetened with incentives or other support. The complexity of the tropical forest ecosystem, the forest industries and forest management arrangements necessitate that all involved stakeholders talk to each other and agree on what needs to be achieved in both near term and long term. Although a consensus on this issue is emerging, it is hampered by continuing disagreements over the financial implications of RIL.

RIL COSTS AND BENEFITS - THE CONTINUING DEBATE

The answer to the question of whether RIL costs more or less than conventional logging is a straightforward: "It depends!" You may ask how we derive this conclusion, when even The Economist reports in its May 12 issue of 2001 that according to a study by the Tropical Forest Foundation, RIL is 12 percent more cost-effective than conventional logging methods in tropical forests. Isn't that a clear-cut indication of RIL superiority over conventional logging? Holmes et al. report even more encouraging results. If direct and indirect waste costs are accounted for, net revenues from RIL are claimed to be 18 to 35 percent higher than conventional logging revenues in Brazil.

In contrast, studies from a dipterocarp forest in Sabah, Malaysia, are consistent with the more widely-held perception that the financial profitability of RIL is lower than that of conventional logging. Tay et al. estimate that profits generated under RIL are reduced by 62 percent compared with conventional logging. The biggest factor in this reduction can be attributed to lower volumes of timber harvested under RIL. Nearly half of the forest areas currently accessible under conventional logging in Sabah would be placed off limits under RIL restrictions that prohibit harvesting on steep slopes. Interestingly, the studies found that if only extraction costs are ponsidered. RIL actually appears to be slightly cheaper than conventional logging. The decreased profitability is primarily due to reduced volumes of timber extracted.

It appears that we are right with our assessment that "it all depends". This is also confirmed by Hammond et al. (2000) who found that the actual costs of RIL, and the profitability of logging operations, vary significantly from location to location due to differences in biophysical conditions, costs of labor and equipment, and other operating inputs, as well as socio- economic and institutional factors.

Unfortunately, there is a lot more to it than the issue of location and conditions. Assessing the economics of RIL and/or conventional logging is inherently complex. The science - perhaps more appropriately described as art - is still in its infancy. Most studies have only been conducted over the last five years and there remains a great deal of uncertainty and confusion over the actual costs of applying RIL, and the implications for company profits. The majority of studies that have been conducted lack a standard methodology and consistent definitions of RIL components and costs.

In reviewing four studies of RIL at various sites in Indonesia, Applegate identifies several areas of ambiguity. There are two main areas contributing to the confusion. First, although researchers claim to assess the financial implications of RIL in comparison to conventional logging, most conduct only partial financial analyses. It is not uncommon for researchers to overlook various cost elements of RIL or to assume that a trained workforce is already in place. Results of such analyses should be treated with considerable caution.

An even more problematic aspect is lack of comparability among most studies. For example, RIL is usually described in detail, conventional logging is not. In some situations or locations the shift from conventional logging to RIL may require only minor modifications. In these cases, financial benefits may well outweigh additional costs. In other cases, the whole approach to logging needs to be transformed with major financial implications. Complicating the analysis is the fact that conventional logging is defined in several different ways. Smith and Applegate touch on this issue in their paper when they convincingly argue that the term "conventional logging" is misleading since most analysts do not consider re-entry logging - a practice not foreseen by RIL, but common under conventional logging. Why is it we ask, that in studies of RIL adherence to rules is generally very strict whereas in conventional logging existing regulations are often not enforced, a phenomenon that invariably leads to increased profit margins? Surely such analyses are misleading and tend to paint RIL in an unfavorable light.

Finally, most studies have not elaborated on the effects of timber price distortions due to illegal logging. Durst and Enters (2001) recently argued that illegal logging is so pervasive in some countries that it would be more meaningful to compare the costs of RIL with the costs of illegal logging rather than conventional logging. In effect, under current circumstances in some countries, illegal logging is the convention.

The discussion above indicates that we should not be surprised by the disagreements concerning the costs of RIL. Considerably more studies of the economics of RIL are required to advance the discussion on incentives for timber harvesting operators. But perhaps we accept that we will never obtain a definite answer to the question of whether RIL is more or less cost-effective than conventional logging. It's like asking whether growing rice is profitable. It all depends!

CONCLUSIONS AND RECOMMENDATIONS

The papers in this publication emphasize that reduced impact logging is an essential component of sustainable forest management. They indicate - and this was also emphasized during the conference discussions - that we can be cautiously optimistic, although there is still a long way to go until the expressed intentions to improve forest harvesting are translated into better practices with tangible positive impacts on the ground. Those expecting changes overnight will be disappointed. In fact, corruption and an increase in illegal logging and illegal timber trade remain major impediments even for the most innovative operators and governments. However, there are many encouraging signs. National and international efforts, particularly directed to training, have considerably increased and researchers continue to address the contentious issue of cost and benefit distribution.

Recognizing that sustainable forest management requires considerable support, the conference participants called on governments, industry, research institutions, and international organizations to cooperate in furthering the adoption and application of reduced impact logging. The following recommendations were made by the conference.[51]

For governments:

● Provide an enabling environment for RIL and sustainable forest management, including provision of secure resource tenure and investment climate, appropriate resource pricing, fiscal incentives, and the elimination of policies that discourage improved forest management.

● Strengthen monitoring of forest harvesting practices and enforcement of regulations pertaining to RIL and sustainable forest management.

● Develop and implement industry operating standards and competency criteria, and support through appropriate training programs, operator accreditation schemes and promotion of occupational health and safety.

For forest industry:

● Show commitment to good forest management by adopting RIL and working towards sustainable forest management.

● Enhance skills and capabilities of employees through training and raising awareness of the environmental, social, and economic implications of forest harvesting.

● Develop payment and incentive systems for forest workers that promote and reward quality performance and efficiency in forest harvesting.

For international organizations:

● Support human resource development to enhance capacities at all levels, from forest workers to policy makers, for effective implementation of RIL.

● Support the transfer of appropriate technology and facilitate the sharing of information and experiences related to RIL and other aspects of sustainable forest management.

● Foster development and raise awareness of innovative mechanisms for encouraging the adoption and application of RIL (e.g., certification, forest-based carbon offsets, and other payments for the environmental benefits of sustainable forest management).

For research:

● Develop and apply standardized methods for assessing the costs and benefits of specific components of RIL so as to allow comparison of operational studies and to promote acceptance of results by all stakeholders.

● Assess RIL in the context of sustainable forest management, with due consideration to damage reduction, timber productivity, conservation of biological diversity, and social welfare.

● Give priority to practical applied research that supports the adoption of RIL practices by timber harvesting organizations.

REFERENCES

Dawkins, H.C. & Philip, M.S. 1998. Tropical moist forest silviculture and management: a history of success and failure. CAB International, Wallingford, Oxon.

Durst, P.D. & Enters, T. 2001. Illegal logging and the adoption of reduced impact logging. Paper presented at the Forest Law Enforcement and Governance: East Asia Regional Ministerial Conference, 11-13 September 2001, Denpasar, Indonesia.

Durst, P., Waggener, T.R., Enters, T. & Tan, L.C. (eds.). 2001. Forest out of bounds: impacts and effectiveness of logging bans in natural forests in Asia-Pacific. RAP Publication: 2001/08. Food and Agriculture Organization of the United Nations, Bangkok.

EIA. 1996. Corporate power, corruption and the destruction of the world's forests. Environmental Investigation Agency, London and Washington DC.

Enters, T., 2001. Trash or treasure? Logging and mill residues in Asia and the Pacific. RAP Publication 2001/16. Food and Agriculture Organization of the United Nations and and Asia- Pacific Forestry Commission, Bangkok.

FAO/APFC. 2001. Regional training strategy: supporting the implementation of the code of practice for forest harvesting in Asia-Pacific. Food and Agriculture Organization of the United Nations and Asia-Pacific Forestry Commission. Bangkok.

Hammond, D.S., Van der Hout, P., Zagt, R.J., Marshall, G., Evans, J. & Cassells, D.S. 2000. Benefits, bottlenecks and uncertainties in the pantropical implementation of reduced impact logging techniques. International Forestry Review, 2: 45-53.

Johnson, N. & Cabarle, C. 1993. Surviving the cut: natural forest management in the humid tropics. World Resources Institute, Washington DC.

Leslie, A. 2001. The trouble with RIL. Tropical Forest Update, 11(2): 32.

Poore, D., Burgess, P., Palmer, J., Rietbergen, S. & Synnott, T. 1989. No timber without trees - Sustainability in the tropical forest. Earthscan Publications Ltd., London.

Putz, F. E., Dykstra, D. P. & Heinrich, R. 2000a. Why poor logging practices persist in the tropics. Conservation Biology, 14(4): 951-956.

Telfer, I. 1996. Environmental certification of forest products. In: Commodity markets & resource management. Proceedings of the Natural Agricultural and Resources Outlook Conference. Australian Bureau of Agricultural and Resource Economics, Canberra. pp. 177-184.

[50] Alf Leslie addressed the conference participants on the first day. A short version of his address is available as "point of view" in ITTO Tropical Forest Update 11/2. [51] While individual recommendations were directed toward specific groups, the conference recognized that close collaboration among all groups will be required for effective implementation.

Back cover

There is broad consensus that timber harvesting must be improved to achieve sustainable forest management. Reduced impact logging (RIL) is a key component of better forest management. Its implementation is largely contingent on satisfying economic and institutional concerns.

In tropical forests, RIL has been tested and applied on a small scale for more than a decade. Various timber-producing countries in Asia and the Pacific have recognized its potential for advancing sustainable forest management. Yet many questions remain and the lack of sound and appropriate information continues to impede the widespread application of RIL.

This publication helps fill that critical information gap. It includes a wealth of information that was presented during the International conference on the application of reduced impact logging to advance sustainable forest management, held from 26 February to 1 March 2001, in Kuching, Malaysia. The conference assessed past and ongoing efforts to implement RIL and considered options for future application. This publication reflects an important milestone in the efforts to improve forest management in the region. While acknowledging that considerable challenges lie ahead, it provides reason for cautious optimism concerning the wider application of RIL in the future.