The Forest Products Commission (FPC) has signed a $50million contract with Western Australian owned and operated company Pine Hauliers Pty Ltd for harvesting of pine from South West plantations.
FPC General Manager Dr Paul Biggs said it had taken nearly two years of negotiation to reach an agreement that meets the needs of all major customers within the local plantation pine industry.
“The new contract provides has two elements, the first being for the production of approximately 450,000m3 per year of pine logs up to December 2012.”
“The second element involves loading and delivery of the same quantity until no later than 30 June 2009. During the negotiation process, our major customers have suggested it may be possible to achieve efficiencies of scale by engaging a single contractor to load and cart all pine products from all FPC operations in the South West, amounting to over 800,000m3 per year.” Dr Biggs said.
“We have listened to our customers and have committed to completing a new tender for loading and carting by 30 June 2008, which will allow a 12 month transition period between the existing arrangement and any new contract arising from the tender.”
“It is very satisfying to have signed this major contract with a locally owned and operated company,” Dr Biggs said. “We look forward to a long and productive relationship with Pine Hauliers.”