LOGPRO LIMITED. Mechanisation and Automation of NZ Steep Country Logging Now and the Future December 2018 Spencer Hill

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1 LOGPRO LIMITED Mechanisation and Automation of NZ Steep Country Logging Now and the Future December 2018 Spencer Hill

2 NZ Steep Logging Changes in Logging Systems NZ Challenges The Future Focus

3 NZ Steep Country Logging

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9 Changes over the last 5 years

10 %+ contractor operations Manual operations Grapple (felling 80%: process 50%) Worker productivity 31 m 3 /hr Rate on truck NZ$28 to $38 (US$20 to $28 on landing) Contractor annual turnover NZ$1,870,000 US$1.42mil Contractor turnover per day NZ$7800 US$5900 Each contractor 7 to 12 employees Insecure contract 2018 tenure (30 days notice period) Generally contractors not from business background Employees Grapple problematic (lack of training, drugs, literacy) Many contractors do not innovate with new ideas and equipment But some are very innovative

11 Yarder Model Number 2012 Number Tower (TMY and 171 and Bellis) Towers (071) Grapple Swing Yarders (Madill and Logchamp) Tower (Berger and BE85 and Madill Excavator based yarders Swing Yarder non-grapple Other Total Yarder Type Number 2012 Number 2018 Tower 67% 58% Swing 30% 36% Excavator 3% 6%

12 Video s of NZ Logging Systems Mechanised Hauler Processing Mechanised Steep Country Felling

13 Total harvest is 24,000,000 m3 50% of NZ harvest by cable logging Average slope 48% (26 0 ) 20% rated easy 55% rated medium 25% rated difficult very steep, bluffs, rocks, windthrow very broken terrain with major watercourses lack of deflection and intermediate ridges across block High variability in tree crop, terrain and weather assist

14 Mechanical Hawkeye Alpine Flacon Claw Helihawk + Homemade

15 Video s of NZ Logging Systems Cable Productivity Increasing

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18 NZ Challenges

19 Rising costs Labour Energy Machine utilisation and productive machine time Safety of workers Environmental sustainability Dirt in waterways Huge amount of dirt moved to build skids More frequent heavy rain storms More frequent Debris flows

20 Labour Cost NZ$400 - NZ$450 per day per person Labour Cost US$280 - US$315 per day per person

21 Diesel Cost NZ$1.20/litre - NZ$1.30/litre Diesel Cost US$0.84/litre US $0.91/litre Petrol Cost NZ$2.20/litre - NZ$2.4/litre Petrol Cost US $1.54/litre US $1.68/litre Fuel approx. 16% of cost

22 Loader capable of lifting 7 8 tonne (a trailer) Loader lifting 1 2 tonne takes 30 to 40mins to load truck Utilisation 25% at best

23 Winch assisted Felling - Tethered Machine 55% Utilisation Typical Hauler Productive Time = 55%

24 Truck spends 50% of day waiting Slow move toward 62tonne maximum gross weight In forest travel causes high maintenance

25 Safety Will Always be a Challenge

26 Many Log Grades High in-forest stocks 20 Mil m3 of dirt shifted annually for skid sites Skid sites on average used for 7 weeks

27 10% of each tree is waste TSY 6355 Madill Swing Yarders

28 The Future

29 More mechanised felling Focus on reducing breakage More grapple operations Grappling over intermediate supports Hauler carriage to fell trees Greater use of vision systems More remote controlled tailhold Grappling Camera machines

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31 Vision Sort and Quality Control logs with robots (away from forest) Benefits Smaller landings Efficient machine use (multi functional) Greater use of high capacity trucks Faster truck loading Automated cable extraction (computerised grapples) Debarked logs Residue management

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33 Log Weighed Log Scanned and tagged

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35 30m Bellis BE85 Harvestline

36 One Excavator performs many functions Processing Loading Sorting Digging Debarking Chipping Lower producing haulers now economic

37 Alpine Shovel Yarder Grapple will control yarder Aim is for no operator Smart camera s with artificial Intelligence stem recognition DC Equipment also working on Automation of Yarder (auto carriage return)

38 Koller 602 in NZ No yarder operator Carriage semi autonomous

39 10% more volume

40 No workers in forest (all teleoperated) Robots and greater use of artificial intelligents Smaller clearcut areas Road replacements

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42 LOGPRO LIMITED Future

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44 The End