B.C.’s major forestry companies are tackling their shipping challenges head-on. Canfor (TSX:CFP) president and CEO Don Kayne said his company has worked with competitors West Fraser Timber (TSX:WFT) and Tolko Industries to charter a ship for a year to ensure B.C. lumber products get to Chinese markets on time.
On top of that, the company has developed a front-end distribution centre in Prince George where it more efficiently loads rail cars with wood products destined for the Port of Prince Rupert and Port Metro Vancouver.
Kayne, who took control of the company in May after 32 years at Canfor, said improving the logistical side of the company’s business has been crucial now that a significant chunk of its products are shipped to China.
“It grew so quick in China, we definitely had some growing pains, but we spent an awful lot of time on the whole supply chain side of our logistics,” said Kayne.
Jobs Minister Pat Bell acknowledged that the increase in wood product shipments to China has put extra strain on the province’s ports. He said he’s spending a lot of time developing ways to ensure that B.C. exports continue to flow smoothly.
“I do think we need to increase infrastructure and capacity,” said Bell. “But part of it can be done just through better scheduling mechanisms.”
Check out this week’s edition of Business in Vancouver for more about the forest sector’s shipping challenges and a profile about Don Kayne.
Joel McKay
Twitter:jmckaybiv