Forestry Dept clears air on heli-logging by SF
KOTA KINABALU: The State Forestry Department yesterday cleared the air on the confusion over the helicopter logging undertaken by Sabah Foundation (SF) in the Tawau region.
“It is pertinent that the confusion and distortions that have arisen, be clarified in the public's interest,” said Chief Conservator of Forest, Datuk Sam Mannan, in a statement yesterday.
SF Licence Agreement and Benta Wawasan, which is also part of SF, are the 2 sole licences in Sabah, that have legal provisions that allow harvesting of timber beyond 250 slopes, provided that, only airborne (i.e. helicopter) systems are used.
The airborne system was first employed in Kalabakan in 2004 on the basis of this legal provision subject to strict technical requirements.
The harvesting was implemented successfully but stopped some years later, due to poor markets and the government's exercise to systematically turn good forests, especially those with High Conservation Values (HCF), into totally protected areas (TPA).
In the final analysis, it was found that the residual forests that could still be logged today in this manner, have been reduced to 15,000 ha.
At the same time, from the original concession area of 1.1 million ha. or so, some 750,000 ha or nearly 75% of the SF area had already been turned to TPAs. Almost all the virgin forests have been locked up to posterity.
The planted mosaic forests and the agro-forestry zones of SF would still need about 3-5 years before they reach maturity and provide full production. The policy to impose additional environmental measures (reduced impact logging, EIA provisions, widening riparian reserves etc.) also impacted the main timber company, Rakyat Berjaya Sdn. Bhd (RBJ), on its cash flow.
To dampen their much reduced income, RBJ appealed to the government to be allowed to recommence helicopter harvesting, on the 15,000 ha. remaining suitable forests, on a one-off basis. After that, it will be reverted to the TPA network.
Based on the merits of the case, both technically and environmentally, this was agreed to.
This helicopter harvesting has since re-commenced since July 2017, after some years of stoppage in: Gunong Rara Forest Reserve, Kuamut Forest Reserve and Kalabakan Forest Reserve.
Touching on the issues raised, Mannan pointed out that harvesting is in a Class 2 (Commercial Forest Reserve) forest. Maliau Basin is safe.
Any usage of old roads and landings in the buffer zones with Maliau is subject to strict conditions of the Maliau Basin Management Committee, if there is such a common boundary with Maliau Basin.
CHPS (Comprehensive Harvest Plans) and RIL (Reduce Impact Logging) are imposed to reduce damage. With RIL, generally, damage is reduced by 50% compared to conventional logging.
An airborne system reduces ground surface damage to 5% (there being no roads) as compared to 70% for conventional tractor logging or 35% for RIL with tractors.
The soil surface determines the forest regeneration. With little disturbances, re-occupation for regeneration is seen as rapid.
With RIL, mother trees seed openings quickly. Erosion is addressed quickly. Such scenes are seen in previously logged coupes in Kalabakan.
Workers employed are trained and certified by the Forestry Department. This reduces damage.
The government insists on the best helicopter operator in the world - to avoid accidents due to the highly dangerous operations and for efficiency in production, while being environmentally responsible. The helicopter company employed is the only operator in the tropical belt today. They have been in Sabah for over 13 years, and have proven their worth. Their professionalism is second to none, not just in Sabah but the whole world. There is no other helicopter operation in the tropics today, except in Sabah.
To summarise, the helicopter logging operation in the SF area today is the best and only one, in the tropical world. To ensure transparency, an independent international auditor, GFS, has also been engaged by the State government at high cost (RM3m/ year) since 2009 to audit all logging operations to ensure transparency. Any infringements will be detected early for rectification or punitive actions.
The cost of helicopter logging is extremely high. The hourly cost is USD8,800/hour or more. However, its efficiency means, about 18,000 m3 are hauled every month or 600 m3 per day.
Once the Gunong Rara harvesting starts in earnest, which it has not, the cost of production may reach USD160-USD180/m3 (F.O.B - Free On Board). The prices of logs for export vary from USD160-USD260/ m3 on average but leaving some margin.
If it is questioned that RM65/m3 for SF needs revision, apart from the automatic price escalation of 10% every year, compounded, there are provisions to allow changes in prices, subject to mutual consent. At the time of negotiations some time back, prices were not as good as they are today, and there was no helicopter operator, as they left Sabah temporarily. There were no real world prices/costs to fall back on, since no operation was happening.
It is believed that SF will allow harvesting first, during which time, current real world sales figures will be collected and only then, will prices be reviewed. The SF cannot re-negotiate whatever terms, since production is only about to start in Gunung Rara Forest Reserve. In the absence of real world data, everything is speculative.
Perhaps, it is also apt to mention that the contractors are paying the government of Sabah, apart from royalties, premium and other fees, a conservation fee of RM10/m3, or RM500/ha, given an average yield of 50 m3/ha, for forest restoration. This will be used for forest management throughout Sabah.
The public can be rest assured that environmental concerns are always factored in, in line with our SFM policy. This is not negotiable.
The contractors were chosen on the following basis, namely, previous RIL experience and certification; capacity for capital outlays due to the high costs; trained RIL workers; ability to acquire the services of the world’s only tropical forest helicopter harvesting specialist, and flexibility in upward price movements in time and after start up.
The massive and widespread reacquisition of forests, exceeding 75% of the Sabah Foundation areas, by the government for protection/ conservation, necessitates that some flexibility be allowed in harvesting or what remains, before that too is taken away by the government for protection.
The price of RM65/m3, an increase of RM10/m3, is about half of the normal selling price of ordinary logs, given the high production cost and the government having given a similar preferential royalty of 50% of the prevailing rates due to the nature of the harvesting.
It is also rather curious that despite the fact that there are 2 appointed contractors, only one is mentioned for whatever reason. Is there something else we are not purview to?
On the elephants, they died 4 years or so before July 2017. Saying it is a coincidence is mind boggling.
The contract is for 3 years to hasten the process of closure for conservation. Maliau Basin is safe. It is being watched everyday.