Forests NSW

1. Forests NSW Monaro Plantation and Forestry Profile

2. Outline • Overview • Regional Forest Profile • Existing Timber Sales • Bombala Wood Supply Contract • Forest Road Infrastructure • Projected Timber Flows • Road Safety • Summary

3. Overview Forests NSW • Dimensions • 2 million ha native forest – 4 regions • 260,000ha planted forest – 4 regions • 2.73 million m3 saw log harvest • 1.8 million m3 pulp log harvest • 4.2 million tonnes CO2 sequestered – plantation forest • 970 staff • Turnover $270 million, assets +$1.5 billion, profit $20 million • Objectives • Operate a safe business • Sustain financial performance • Deliver ecologically sustainable resource management • Provide accountability to the community • Support our people • Credentials • International Environmental Certification • AFS (AS4708) • ISO14001

4. 32,000ha Public pine plantation 16,000ha Private pine plantation +250,000ha Production native forest Principal commercial activity is timber production, wood processing, and multiple-use forestry Majority of forest road infrastructure now exists. In-forest investment is based on safety and cost benefit Local Plantation industry employs >300 people directly. Recognised multiplier effect is about 3 :1 FNSW re-establishes 700-1,600ha each year of plantation Peak sawlog off-take from existing public and private plantations is about 400,000 tonnes in 20 years time Monaro Forest Industry Profile

5. FNSW Plantation Sales FY2009 • Total 615,000 tonnes FY2009 • Customers – Auswest • Penrose Pine • Pentarc • SEFE • Visy • Willmott Timbers • 390,000 tonnes pulp • 40,000 tonnes salvage • 185,000 tonnes sawlog

6. Bombala Wood Supply Contract • 250,000cu.m Sawlog • 70,000 tonnes Biomass • Willmott Timbers / Dongwha • EOI - September 2007 • Tender – November 2007 • Contract - 28 April 2008 • 20 year agreement permits security and value recovery from local plantations • Sawmill planned to commence operations 1st half 2010 and ramp up over the next 3 years

7. Key forest Infrastructure FNSW manages 2,880km roads locally. Direct annual road costs of $2.5M FY09-11.

8. Estimated Regional Timber Flows (tonnes) NB: Volumes are not cumulative within periods due to multi-directional traffic

9. FNSW Truck Safety Project • Following an unacceptably high number of roll-overs, FNSW undertook a study on truck safety in 2007 • As a result of that study a full time Log Truck Safety Co-ordinator, Andrew Nichols has been appointed • Currently implementing the recommendations of the study across the organisation and with contractors • Areas of focus: • Incident reporting, investigation and recording • Safety management systems for haulage operators • Driver behaviour discussions at local level • Forming industry groups • Compliance – e.g. mass, fatigue

10. Truck Incidents What leads to incidents: Driver behaviour Speed Distractions Fatigue Load & truck stability Road / weather conditions Other (psychological, time pressures, mechanical, etc)

11. Summary • Wood and wood processing industry growth within Monaro Region relies on integrated timber sales within SE NSW • FNSW Sawlog supply contract with Willmott Forests is positive for the regional economy • Existing road traffic volumes are consistent with future road use • FNSW manages 2,880km of forest roads and is investing in specific forest infrastructure during FY2009-FY2012 • Truck safety and driver behaviour are a primary focus for FNSW and our key stakeholders • Safety and infrastructure solutions are clearly interdependent and the attention that SEATS applies to these regional issues is most noteworthy