Financial State of the Forest Industry and Delivered Wood Cost Drivers

[Table of Contents]

Appendix D
Logging Cost Definitions


Tree to truck

All costs associated with falling, bucking, yarding and loading timber from the point immediately after the pre-work conference to immediately before the logs are hauled. This category does not include the costs of salaried logging supervisors which should be included within Forest management and engineering below.

Hauling

All costs associated with hauling logs from the logging site to the mill log yard or an intermediate dump site such as a rail reload point or a water dump site for intermediate water transport by boom or barge.

Dump, sort, boom and rehaul

All costs of intermediate rail or water transport, including log dewatering costs for intermediate water transport but excluding log yard dumping or sorting costs.

Forest regeneration

All costs associated with bringing a logged site back to free growing status, including site preparation, planting, brushing and weeding, fill planting and surveys (together, "basic silviculture"). This category does not include "intensive" or Incremental silviculture techniques applied to free growing stands.

Road expenses

All costs related to road and bridge construction, maintenance and deactivation for both expensed and capital roads, but excluding road design and layout costs and supervision which should be included within Forest management and engineering below.

Forest management and engineering

All costs associated with cruising, forest planning (involvement in higher level and strategic planning and preparation of operational plans), forest protection, supervision of road construction and logging, road and cutblock layout, divisional due diligence and the divisional/operation share of head office forest management expense.

Other overhead

All remaining camp overhead, including administrative support wages/salaries and benefits, scaling expense, residue and waste expense, vehicle expense for logging administrative staff, licences, fees, insurance, taxes, leases annual rent and depreciation of administrative buildings.


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