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Final Report Project a Review of the Use of Portable Sawmills in Papua New Guinea and Solomon Islands

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Final Report Project a Review of the Use of Portable Sawmills in Papua New Guinea and Solomon Islands Final report project A review of the use of portable sawmills in Papua New Guinea and Solomon Islands project number FST/2003/049 date published March 2012 prepared by Hartmut Holzknecht, Ryde James and Peter Kanowski co-authors/ Sairusi Bulai, Ken Groves, Hartmut Holzknecht, Ryde James, Andrew contributors/ McGregor and Digby Race collaborators approved by Mr Tony Bartlett, Research Program Manager for Forestry, ACIAR final report number FR2012-07 ISBN 978 1 921962 51 6 published by ACIAR GPO Box 1571 Canberra ACT 2601 Australia This publication is published by ACIAR ABN 34 864 955 427. Care is taken to ensure the accuracy of the information contained in this publication. However ACIAR cannot accept responsibility for the accuracy or completeness of the information or opinions contained in the publication. You should make your own enquiries before making decisions concerning your interests. © Australian Centre for International Agricultural Research (ACIAR) 2012 - This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from ACIAR, GPO Box 1571, Canberra ACT 2601, Australia, [email protected]. Final report: A review of the use of portable sawmills in Papua New Guinea and Solomon Islands Contents 1 Acknowledgments .................................................................................... 3 2 Executive summary .................................................................................. 4 3 Background ............................................................................................... 6 4 Objectives ................................................................................................. 9 5 Methodology ........................................................................................... 11 6 Achievements against activities and outputs/milestones .................. 17 7 Key results and discussion ................................................................... 19 7.1 Study key results ................................................................................................................19 7.2 The productivity and use of portable sawmills in the Pacific .............................................19 7.3 The productivity and use of portable sawmills in Australia ................................................22 7.4 The success of social objectives ........................................................................................22 7.5 Portable sawmills and their effects on forest sustainability ...............................................26 7.6 Economic aspects of portable sawmills .............................................................................26 8 Impacts .................................................................................................... 31 8.1 Scientific impacts now and in 5 years ................................................................................31 8.2 Capacity Impacts now and in 5 years ................................................................................31 8.3 Community Impacts – now and in 5 years .........................................................................32 8.4 Communication and dissemination activities .....................................................................35 9 Conclusions and recommendations ..................................................... 38 9.1 Conclusions ........................................................................................................................38 9.2 Recommendations .............................................................................................................43 10 References .............................................................................................. 46 11 Appendixes ............................................................................................. 49 11.1 Appendix 1: Financial viability models (Tables 1, 2, 3) ......................................................49 11.2 Appendix 2: Overview of portable sawmill use in the Pacific .............................................52 11.3 Appendix 3: Notes on Papua New Guinea project trip 2006 .............................................64 Page 2 Final report: A review of the use of portable sawmills in Papua New Guinea and Solomon Islands 1 Acknowledgments The material in this report comes from several sources, including from a number of previous reports on the subject. One of the most valuable sources of the information presented here is interviews with mill owners and operators, government officials from the forestry sector in Papua New Guinea and the Solomon Islands, NGO staff, officials from aid projects and community leaders in the field in both countries. In addition, officials from the PNG Forest Authority and the Solomon Islands Forestry Department gave us generous assistance in collecting relevant information and helping when the teams were travelling in their countries. So many people helped while we gathered information and opinions that we are unable to mention them all; however, we would like in particular to acknowledge the following and the positions they held during the course of the team’s visits (in alphabetical order): Mr. Anda Akivi PNG Forest Authority (PNGFA) / EU/PNG Eco-Forestry Project Mr. Leo Angra EU/PNG Eco-Forestry Project, Lae Mr. Don Bakat PNGFA, Hohola headquarters Mr. Peter Garo PNGFA, Goroka office Mr. Martin Golman PNGFA, Hohola headquarters Mr. Dike Kare PNGFA, Director of the Policy Secretariat Mr. Robin Kimpton EU/PNG Eco-forestry Project. Lae Mr. Gordon Konairamo Commissioner, SI Dept. of Forests Mr. Tommy Kosi Village Development Trust, Lae Mr. Ishmeil Libertino PNGFA, Hohola headquarters Mr. Rex Lucas General Manager, Lucas Mills, Victoria Mr. Kamung Matrus Lutheran Church Special Projects Officer, PNG Mr. Kenn Mondiai The Ecoforestry Forum (TEFF), Port Moresby Mrs. Agatha Pokatou PNGFA, MOMASE regional office, Lae Mr. Daniel Ranga Habitat for Humanity, Lae Mr. Lukis Romaso Consultant, Lae Mr. Andrew Tagamasau Head, Timber Industry Training Centre, PNG UoT Mr. Terence Titiulu Forest Officer, SI Forestry Department Dr. Ryde James was the Team Leader for this project until his retirement in 2007, and participated in the initial drafting of a number of the sections of the Final Report. Dr. Hartmut Holzknecht took over as Acting Team Leader when Dr. James retired and as time allowed also amalgamated, revised and edited the Final Report. An editor, Dr. Susanne Holzknecht, provided final editorial advice. Professor Peter Kanowski provided significant editorial inputs in the compilation of the final report. The values assigned to the PNG Kina (PNGK), the Solomons Dollar (SBD) and other currencies used in this report are those applicable at the time of the country studies. Page 3 Final report: A review of the use of portable sawmills in Papua New Guinea and Solomon Islands 2 Executive summary The aim of this project was to evaluate the effectiveness of portable sawmilling operations in Papua New Guinea, the Solomon Islands, and Australia. Specific objectives were to evaluate the social, economic and environmental outcomes associated with the purchase and operation of portable sawmills, and identify strategies that would result in increased social and economic benefits to all stakeholders, particularly the customary forest resource owners in Papua New Guinea and the Solomon Islands. The Secretariat of the Pacific Islands Forum prepared a background document describing the history of portable sawmills in the South Pacific and explaining why this method of forest utilisation is more important in some islands than others. This report revealed that sawmills were not always operated on a commercial basis, but also were used to fulfil the social needs of a community through provision of sawn wood for community facilities such as health centres or other buildings for community use. Many of the portable sawmills purchased or delivered in the Pacific Islands are no longer operating, generally as a consequence of their use no longer being a priority for their owners, or their mechanical unserviceability. Technical aspects of mill operation were often reported to be inadequate, the products sometimes of poor quality, and the marketing badly organised. Project teams travelled to Papua New Guinea and the Solomon Islands, where they observed the operations of portable sawmills and held discussions with a wide range of stakeholders at all levels. Although there are many commonalities between the two countries, the difference in their size and the relative scale of industrial activity meant that the importance of portable sawmills as a source of timber production was quite different in the two countries. Thus portable sawmills are proportionally more important in the Solomon Islands than in Papua New Guinea. In Papua New Guinea, forest production since the 1970s been focussed on large-scale export- oriented operations run by foreign logging companies. In this context, portable sawmills are regarded as a tool to be used by customary owners to supply timber for their own uses. Operators of portable sawmills are therefore allowed to operate within their own community-owned forests without any requirement to obtain a permit or submit a forest management plan; there is notionally a cutting limit of no more than 500 cubic metres per mill annually. There are virtually no controls on the use and of portable sawmills and no regular
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