In theThick of it
Transcription
In theThick of it
Fish Story: Islanders make a channel for spawning salmon Ready for Change: Embracing the new normal In the Thickof it WINTER 2008 www.finning.ca Cougar Inlet Logging stands tall in the B.C. forest Tumbler Ridge’s Time Coal sparks a mountain town Young and Restless Fleet of Foot Kamloops contractor creates opportunity The new Cat frac pump makes Tier 2 a breeze Plus! Auditing your safety program A FINNING (CANADA) PUBLICATION Non-deliverable mail should be directed to: 10259 105 Street, Edmonton, AB T5J 1E3 Canadian Publications Mail Product Sales Agreement #40020055 Best Value. . Period Cat Skid Steer loader, Fully equipped $ From as little as 18/day Caterpillar 226B2 Skid Steer loader Cat Mini-hydraulic excavator, Fully equipped $ From as little as E v E r y yA r D N E E D s A C At ® The new Cat C-Series Skid Steer offers comfort like the big Cat machines. Noise and dust are reduced thanks to a pressurized and sealed cab – an industry first. The optional air ride seat delivers even more comfort. Plus the wide cab opening makes for easy entry and exit. Count on Finning for the best in dealer support. Be part oF the legaCy. 1-888-finning | finning.ca 29/day Caterpillar 303C Cr hydraulic excavator *O.A.C. Taxes and finance fees extra. Buyout based on fair market value. Pricing based on 48 payment operating lease. 18 30 38 Departments 4 6 The Finning Focus Lower your costs with Finning used equipment Groundbreaker Firefighting Cat; To Russia With Love; Wild Rose Motocross; Thinking Even Bigger; Still Cleaning Stanley; The Romanian Fleet 12 Yesterday/Today Caterpillar introduced heavyduty wheel dozers to keep pace with high-speed, rubber-tired earthmovers 13 Yellow Iron New products and services from Finning 22 Safety First The best safety program in the world isn’t that useful if it’s not audited regularly 34 Field Test Never mind the knight, it’s the easy-to-use yellow armour you want to extend the life of your machine CONTENTS Features S P E C I A LR E P O R T 14 Light on Its Fleet Enerflow Industries turns heads with its new 2500-horsepower frac pump 18 Tomorrow’s Logger Like its owner, Cougar Inlet Logging is no run-of-the-mill company WHERE COAL IS KING 23 Tumbler Ridge’s Time 24 Tomorrow’s Town Tumbler Ridge’s fortunes are tied to coal. The town’s looking bullish these days as the population swells and real estate values reignite 30 Hearts Afire A Kamloops contractor is making his mark, using yellow iron and Finning to gain the home team advantage 26 Coal Power 38 Ready for Change A venerable logging company keeps ahead by embracing industry challenges 42 Count On Us www.finning.ca Western Canadian Coal couldn’t be busier. Perry Creek Mine has heralded happy times for the company 6 36 Meeting the Challenge It’s the spawn of a new day for some salmon on Vancouver Island 41 Bill’s Business Bill’s Finning rep gives him more than the usual amount of customer support WINTER 2008 On the Cover Cougar Inlet Logging Photograph: Thea Stratton Winter 2008 • tr acks & treads The Finning Focus Lower Your Costs With Finning Pre-owned With times a-changin’ again, pre-owned yellow iron is a flexible option that will keep contractors light on their feet and ready to shift with the sands By Gordon McDougall Manager, Corporate Equipment Remarketing B arcelona, Dubai, Stettler or Port Hardy – there’s no telling where we might find the right used equipment for Finning customers. Recently, our international buyer, Jim Chomyshen, picked up nine badly needed Cat 777 haul trucks from a Cat dealer across the pond. These 100-ton rigid frame trucks are in short supply, so the used option’s looking good. Readers may not be aware that Finning (Canada) is the largest used equipment dealer in North America. Customers can select from nearly 600 pieces, ranging from skid steers and former county graders all the way up to scrapers and large mining pieces – they’re all detailed on the website – www.Finning.ca. If they prefer, potential buyers can test drive the inventory at any of Finning’s used equipment centres in Edmonton, Calgary, Grande Prairie, Fort McMurray, Surrey or Prince George. With the R-word making headlines lately, borrowing costs on the upswing and exchange rates headed who knows where, the used option is smart business. It can help lower overall operating and carrying costs and improve cash flow. Finning’s used equipment team can provide near-new machine productivity, lower acquisition costs, machine histories, tr acks & treads • Winter 2008 warranty transfers and access to financing. Before Finning advertises used items for sale, they’re often reconditioned. Skilled teams of certified heavy duty technicians tune up engines and hydraulic systems, upgrade tires or tracks, fix leaks and, most importantly, complete all necessary safety product improvements. Sometimes, all it takes is a quick vacuum of the cab to prep a newer machine for sale, but we go a lot further when required. At the new Centre of Excellence in Red Deer, Finning has increased rebuild and overhaul capacity significantly. Here, technical teams can take a dusty core, virtually abandoned at a mining operation, and bring it back to life with certified power train rebuilds. That’s the beauty of Caterpillar equipment; it’s built to be rebuilt. Our used equipment management team, which boasts several hundred years of combined experience, has developed a range of reliable contacts worldwide. Our team (which includes Lucas Fennel, Dave Kandler, Russ Acheson, John deMilliano, Kelly Hinch, Norm Trottier, Travis Fredland, Jim Chomyshen, Chee Chik and me, Gordon McDougall) has specialized experience in most equipment disciplines, ranging from coastal forestry to underground mining and everything in between. And Finning isn’t just a source for large construction, mining and forestry equipment. It also has a healthy supply of used skid steers, miniexcavators and multi-terrain loaders, priced as low as $10,000. Our expertise and worldwide network serves you two ways. First, we’ll work with your local Finning rep to ensure you get the right machine at the right price, prepped the way you want it, when you want it. Second, we can help you dispose of your surplus equipment through our consignment option, which many customers prefer to sending equipment to the auction. Consignment gives sellers more control in terms of timing, price realization and access to potential buyers worldwide. So far this year we’ve facilitated about $30 million in consignment business. Two years ago, there was a shortage of D5 through D7-sized tractors for our oilfield customers. Now the economy is in transition – mining equipment has been in short supply. In either case, the Finning used team works overtime to make sure you get what you need to successfully bid and complete your work. The bottom line: regardless of the economic cycle, Finning has the resources and used equipment team you can rely on to get you the best value. www.finning.ca Letters & Feedback winter 2008 Volume 48, No. 4 Publisher Ruth Kelly rkelly@venturepublishing.ca associate Publisher Daska Davis ddavis@venturepublishing.ca Executive Editor Jeff Howard jhoward@finning.ca Editor Mifi Purvis mpurvis@venturepublishing.ca Editorial Advisors Danna Beatty, Crystal Chokshi, Brad Ledig, Michelle Loewen, Patrick King art director Charles Burke cburke@venturepublishing.ca designer Rodrigo López Orozco Production COORDINATOR Betty-Lou Smith Production technician Geoff Cwiklewich circulation coordinator Amanda Dammann circulation@venturepublishing.ca Advertising representative Anita McGillis amcgillis@venturepublishing.ca Contributing Writers Robin Brunet, Caitlin Crawshaw, David DiCenzo, Katherine Fawcett, Keith Haddock, Noel Lacadie, Rick Overwater, Tony Kryzanowski, Jim Stirling, Contributing PHOTOGRAPHERS and illustrators Ricardo Alberto Leiva, Heff O’Reilley, Thea Stratton, Rick Tolhurst, Chip Zdarsky Tracks & Treads is published to provide its readers with relevant business, technology, product and service information in a lively and engaging manner. Tracks & Treads is published for Finning (Canada) by Venture Publishing Inc. 10259-105 Street Edmonton, Alberta T5J 1E3 Phone: 780-990-0839 Fax: 780-425-4921 FROM TERMINAL TO VD: I’ve just received my first Tracks & Treads because I’m now a registered member of the retirees from Finning Tractor. It’s been a long time since I have read one, and it brought back a lot of good memories. I worked for Finning in Vancouver, started my apprenticeship in 1962 with guys like Chuck Baird, George Hilchie, and Joe Cindrich. We moved from the old shop on Terminal Avenue to our new shop on Great Northern Way. Maury Young was the “boss” then, and I remember him as a person who could call you by your first name even if he hadn’t talked with you in a long time. I transferred to Victoria and completed my apprenticeship there, working with Dave Marriot, John Allen, Hugh Ramsey and Eddy Vowels. Ed was my mentor, a great guy to work with. In 1972, I left Finning, set off on my own and operated my business, called Victoria Diesel Service. I thought it was a great name, until I realized that my customers had shortened the name to “VD Service.” But I operated that business for five years before accepting a job as a Heavy Duty Diesel Instructor at Camosun College Trades Training branch in Victoria, where I spent 24 years doing the job I really loved, helping people learn a trade that they could take anywhere in the world. I kept track of all my graduates who completed their apprenticeships and it is a very interesting to look back. I still have ex-students looking me up to say hello and tell me what they are up to. Just looking at the picture (on page 69 of the Fall 2008 issue) reminded me of all those good times working with a first-class company. Ray Howard, Victoria, B.C. IN PURSUIT OF PIONEERS: I just want to let you know how much I enjoyed the spring edition of Tracks & Treads magazine. I have known Harold Hewlett and Martin Marsolais for many years, and your article really captured the character of both of these guys. The picture on page 24 of the Marsolais article is of a 7-axle Freightliner logger being loaded by a Cat 330B log loader. This truck is not owned by Martin Marsolais but by Burke Purdon Enterprises Ltd. who is a contract log hauler in the Prince George area. Our dealership has sold Burke Purdon all his Cat-powered Freightliner log trucks over the years. It was great to see articles on some of the pioneers of the industry and the equipment they have bought and still own today. Tom Coffey, Prince George, B.C. Tell us what you think Tracks & Treads would love to hear from you. Tell us what you think of the magazine’s stories, columns and look, so that we can improve it and make it a more interesting read. Contents © 2008 by Finning (Canada) No part of this publication should be reproduced without written permission. www.finning.ca Send your comments to executive editor Jeff Howard by email at jhoward@finning.ca or the old-fashioned way to: Jeff Howard, Tracks & Treads, Finning (Canada), 16830 – 107 Avenue, Edmonton, Alberta T5P 4C3 www.finning.ca Winter 2008 • tr acks & treads News & Reviews by david dicenzo Wild Rose Motocross Serious dirt bike riders throughout Canada are well aware of Blackfoot Park in Calgary. The 80-acre, six-track park is a unique site in Cowtown, a place where riders converge for smaller seasonal club events like Thursday Night Motos or much bigger competitions like the Canadian MX race held every summer. While the finely tuned bikes have been zipping around the park for years now, a new, somewhat slower machine is making a big difference at Blackfoot – a Cat D5K dozer. “Basically, we use the Cat to prepare the tracks for riding,” says Corey Holte, treasurer of the Wild Rose Motocross Association. “It rips the ground where the bikes will ride, then we use an industrial roto tiller to make a finer soil base. Then we water it with a water truck.” And presto, a pristine track is born. As treasurer of the 24-year-old association, Holte was the one who spearheaded the move to lease the new dozer from Finning. Wild Rose Motocross had owned an old Cat, and the need for more and more specialized track building and grooming meant that it was time to update the equipment. So Holte got on the phone and gave Finning a call. “Cat has a high quality name in the construction industry,” says Holte. “Finning has a good program, a good maintenance schedule, which was great for us.” In addition to digging up the track, Holte says the Cat is used to build jumps and obstacles on the track for the races. One of the association’s mandates has been to make Blackfoot Park as aesthetically pleasing as possible, much like a golf course, so the dozer is also being used for landscaping projects around the park grounds. “We’re definitely happy with its performance,” Holte says of the new Caterpillar dozer. “The applications we use it for, it definitely serves a good purpose.” MAKING THE LEAP World record holder Robbie Maddison of Australia jumped his dirt bike an amazing 322 feet in a televised event from Las Vegas last New Year’s Eve. Known as the ‘The Wizard of Oz’, Maddison is one of the world’s most recognized long distance dirt bike jumpers in history. The Romanian Fleet Romania, one of Europe’s oldest settled regions, was struggling with a seriously outdated motorway. By 2013, the huge, $3-billion project will culminate in a sleek new road connecting the middle of the country with neighbouring country, Hungary. The now 10-hour roadway slog will take just three hours. The 400-kilometre stretch of the hilly Transylvania Motorway will feature 300 bridges and 70 overpasses. tr acks & treads • Winter 2008 At the forefront of the project is Cat equipment, in the hands of construction giants Bechtel and Enka. The pair of companies brought in nearly 70 Cat machines for the job and purchased almost the same number again from local dealers, including excavators, wheel loaders, articulated dump trucks, motor graders, soil compactors, track-type tractors, pavers and generators. Source: Cat.com www.finning.ca groundbreaker The 18 units going to clients in Russia are G3616s, the largest model in the Cat series. The sheer size of the engines can cause logistical problems in terms of delivery, especially in an icy place like Siberia. “Moving huge equipment into very remote locations has its challenges,” says Kavanagh. “The Russians are not unlike Canadians – they have to be very creative and obviously, to do that, they need the equipment on site, on time. “Timing was critical here.” Kavanagh went to Russia to meet with Enerflex executives to get a full understanding of their needs and timelines. The G3616s are scheduled to be delivered in 2009. Kavanagh says that a team effort was required to pull off the deal, from the sales staff to the support staff. “We wouldn’t have been able to put this together without the input from these guys,” he says. “They are very dedicated, they’re engaged and they understand the significance of this and the importance of this to Finning. It took a lot of people to make this happen. “We were always in constant communication. That was the key to the success of this particular deal.” To Russia With Love Caterpillar has been producing its line of G3600 series gas compression engines since the mid 1990s. Unit sales of these beasts – they sell for about $1.25 million each – have grown from about two or three per year, back in the 1990s, to approximately 35 in 2008. There’s 250 of these G3600 units currently operating in Finning (Canada) territory, suggesting that Western Canada is one of the largest users of this product anywhere on the planet. But a recent mega-deal between Finning and gas compression company Enerflex will see 18 of these engines make their way to three different customers in Siberia. Despite a lineup of customers waiting to get their hands on these in-demand engines, the deal, worth close to $23 million, was finalized. www.finning.ca Working with Caterpillar, Finning was able to convince Enerflex that the sale would be of benefit to its operations, says Andy Kavanagh, Finning’s products service sales manager for gas compression OEM. “They have other opportunities around the world, other customers screaming for this product. We were able to help them understand why this would be beneficial as a larger, global opportunity by using their resources to apply these engines to these particular projects.” The primary purpose of the G3600 engines is to act as drivers to produce the horsepower that will in turn drive a gas compressor, Kavanagh says. The gas compressor takes the gas out of the ground at a low pressure and brings it up to 1000 or 1200 psi. ON THE GROUND The Kremlin is a fortified complex in the heart of Moscow that overlooks the Moskva River to the south. The walls and towers of the Kremlin were built over 500 years ago, with the irregular triangle of the Kremlin wall enclosing an area of about 275,000 square metres. The highest tower is the Spasskaya, which is 71 metres tall. Winter 2008 • tr acks & treads Firefighting Cat In late September, Terrace, B.C., contractor Gerry Lozinski awoke to a call at 4:30 in the morning. He knew right away something was up and he was right. The Skenna Hotel, a Terrace landmark and local watering hole since the 1920s, was on fire. And the local firefighters needed Lozinski’s help. More specifically, they needed to borrow his Cat CL320 excavator. “This was the first time I ever did something that silly with the excavator,” says Lozinski. He gulped a coffee, spilling most of it, as he lined up a low bed trailer to haul the excavator about 15 kilometres to the site. Then he raced down there himself. Lozinski, the owner of J.L.’s Excavating Limited, already had some experience bat- tling flames as a firefighter in the B.C. bush. But this was a completely different job that required a lot of co-ordination and patience. The firefighters in Terrace wanted Lozinski to use his Cat to push the burning walls of the hotel away from a newer wine and beer store adjacent to the site. The task was a dangerous one, with flames all around the Cat. Lozinski says that the firefighters had to hose the machine down to keep it wet and cool. “The biggest concern was the air filters catching on fire, but as long as the machine stayed wet, we were OK,” says the 49-yearold native of Dawson, Manitoba. “I wouldn’t advise too many contractors to do that. “I never really thought about the danger. I just concentrated on getting the fire under control with the firemen. It was a really tough one to put out.” While some people have suggested Lozinski get fitted for a straightjacket based on his decision to help out at the Skenna Hotel, he never hesitated to do what he thought was right. Despite the potential danger, Lozinski and the durable Cat came out none the worse for wear. “My local insurance company saw the pictures and said, ‘You know all of your insurance was voided when you did that because you put the machine in harm’s way?’” he says. “I didn’t really think of that.” Literally throwing the Cat into the fire was certainly a first for Lozinski, who started his excavating company 20 years ago. Aside from the praise and recognition he has received for his help extinguishing the fire, the Terrace businessman did earn himself a new nickname from the firefighters. “They called me the ‘crash test dummy,’” he says with a laugh. FIERY FACTS The task was a dangerous one, with flames all around the Cat. Firefighters had to hose the machine down to keep it wet and cool. tr acks & treads • Winter 2008 The Alberta government’s Forestry Division is charged with suppressing forest fires before they exceed two hectares. Provincial Forest Fire Centre firefighters use airtankers, patrol aircraft, helicopters, dozers, crawlers, low-boys – anything to get there fast and stay there until the danger has passed. Air and ground wildfire-and-forest fighting crews have been working closely together in Alberta since the 1960s, when firefighters worked in crews of 25. Today, the crew is an eightperson team under one leader. The equipment has changed from the old Caterpillar D6C dozers of the 1960s to today’s D6XL and D6M series high-track dozers with enclosed, air conditioned cabs to protect operators from heat, dust and noise. www.finning.ca groundbreaker Finning’s Night Out PHOTOGRAPH courtesy nait Thinking Even Bigger In t he past, you read about ThinkBIG, a NA I T apprenticeship program sponsored by Finning and Caterpillar. Well, now the relationship between the school, Alberta’s important trades and technical institute, Cat and Finning goes even deeper. In September, Finning and t he Caterpillar Foundation, announced a $3 million donation to NAIT’s Heavy Equipment programs. Finning is ponying up $1 million towards NAIT’s Heavy Equipment Technician and Industrial Heavy Equipment www.finning.ca Technology program, along with $1 million in machines. Caterpillar is writing a cheque for $1 million. “Finning and the Caterpillar Foundation’s investment in NAIT allow us to help these great companies with training new employees and current employees on the latest technology,” NAIT’s president and CEO, Sam Shaw, said in a press release. “Partnerships like this help to offset Alberta’s skills shortage.” For Finning, an investment in NAIT demonstrates its commitment to customers to help develop a workforce. For 100 years now, the Alberta Association of Municipal Districts and Counties has helped rural Alberta evolve into the heart of the province’s economy. And, for the last 40 of them, Finning has supported the AAMDC every step of the way. The annual Finning Evening was recently held at the Shaw Conference Centre and this year’s theme proved exciting for speed freaks – racing. From the 16-inch remote-controlled car races to the competition to see who could produce the fastest pit stop, delegates from all over Alberta enjoyed their night in the spotlight. FAST TIMES: Finning customer account manager Patrick Kirychuk (above right) does some well-timed lobbying with the AAMDC pit crew. After the races, people kicked up their heels on the dance floor Winter 2008 • tr acks & treads Still Cleaning Stanley Stanley Park, near Vancouver’s downtown core, is renowned for its stunning beauty and broad diversity of wildlife. But in December 2006 a windstorm turned the oasis into a disaster zone. “When we got hit by the storm, we had significant damage to about 15 per cent of our forest, which is approximately 640 acres,” says Jim Lowden, Director of Special Projects for the Vancouver parks board. “It was a first of a kind,” he says. “It was significantly bigger than two previous storms, one in 1934 and one in 1962.” Lowden was one of the individuals tasked with restoring Stanley Park, a job that seemed incomprehensible immediately after the storm. But now, two years and three recognition awards later, the park’s restoration project is about 90 per cent complete. “Everybody stayed with the project from start to finish,” says Lowden. “Everybody knew what the specific environmental expectations were. We ended up with some real pros who came to understand that this wasn’t so much a logging operation as a park salvage operation. 10 tr acks & treads • Winter 2008 “Some good things have come out of what started as an awful mess.” “They handled the job beautifully.” And Stanley Park is indeed beautiful once again, though it took an incredible amount of work to get there. Lowden says the park was actually closed for just four days in the aftermath of the storm. The decision to open it up to the public after that period was an expensive and time-consuming one. “We had to try and work around the park population, keep them away from the dangerous spots and still try to run a major forestry operation,” says Lowden. The crew had to contend with major failures along a 100-foot high escarpment at the park’s Prospect Point. Both geography and weather were working against them. Prospect Point was only accessible through narrow pinch points at either end of the seawall. Conventional trucks were useless and only articulated trucks could get in and out, one truck at a time with no turnaround points. With thousands of people using Stanley Park on a daily basis, Lowden refers to the work as a “very interesting balancing act.” The forestry operation is now complete and an estimated 25 per cent of fallen material remains on the ground, which represents the same volume of coarse weed debris you would find in an untouched temperate coastal forest. Lowden says about 10,000 logs were salvaged and sold to help fund the massive clean-up bill. He adds that part of the operating policy was to have a light footprint and to do as little damage to the forest floor as possible. With that in mind, they gladly accepted two hoe chuckers donated by Finning to help with the work. “They were great,” says Lowden. “It made all the difference in the world. We went in there and carefully picked everything out, minimizing damage. “We had brush mats everywhere we moved. It did no damage to the forest floor in the process,” he says. “It came off brilliantly.” The Vancouver parks board’s thoughtful approach to the restoration project has earned them three separate awards: the Community Stewardship Award given by the Union of British Columbia Municipalities; the PERC Award for Innovation and Ingenuity from the British Columbia Recreation and Parks Association; and the Canadian Parks and Recreation Award. The successful blueprint has also fostered strong relationships with the players involved, from government to local universities such as UBC and Simon Fraser. The effort is now recognized as an appropriate response model for handling disasters in other environmentally sensitive areas. “There has been a vastly heightened public awareness of the complexities of the forest,” adds Lowden, who will be starting his wellearned retirement soon. “Some good things have come out of what started as an awful mess.” www.finning.ca By the Numbers Number of lodging and spa packages available that offer facials and the chance to operate heavy equipment: 1 Daily rate for the “Excavate and Exfoliate” spa getaway at the Steamboat Grand Resort Hotel in Steamboat Springs, Colorado: $340 Percentage of people, aged 18 to 27, who text message while driving: Daily rate to rent a Cat skid steer loader from your local Cat Rental Store, no facial included: 37 $187.50 Percentage increase in the likelihood of a crash for a driver using a cell phone: 400 Number of dog “couples” who participated in the largest ever dog wedding ceremony: 178 Price of a dog wedding dress at PetHaven.com: $122.95 www.finning.ca Cost of a tuxedo: $29.95 Year when green energy will overtake natural gas to become the second-largest source of electricity: 2015 Percentage increase in Ontario’s wind power capacity since 2003: 6,200 Winter 2008 • tr acks & treads 11 Yesterday/ Today Story by keith haddock Mid-century dozers mostly still ran on slow crawler tracks. they had to catch up with faster earthmovers High Speed Bulldozing 12 tr acks & treads • Winter 2008 SPRING TO THE STEP: This 834 wheel dozer is push loading scrapers and carries a rear springloaded push block for even faster loading in dry conditions IDEAL MACHINES: Wheel dozers such as this Caterpillar 824 were ideal for cleaning under shovels in large surface mines gines, power shift three-speed transmissions and articulated frames that combined long wheelbase stability with short frame manoeuvrability. The transmission also included a torque divider system engineered by Cat for these dozers. It allowed the torque converter to automatically adjust rimpull to the load by correctly proportioning direct drive and torque converter drive. The hydraulic system included two double-acting five-inch hydraulic cylinders that accomplished steering through an angle of 44 degrees in each direction, a single cylinder to raise the blade and another pair of cylinders to tilt the blade up to 23 degrees. The 824 carried a standard dozer blade measuring 13 feet, three inches wide, and 23 feet, two inches long. It weighed 32 tons. The 834 manoeuvred a 14-foot, eight-inch blade that was 25 feet, five inches long, and tipped the scales at 45 tons. Both boasted a top speed of more than 20 miles per hour. In 1966, Caterpillar increased the horsepower of its wheel dozers to 300 and 400 respectively. The 834 was discontinued in 1974 but returned as the larger 834B in 1982 with 450 flywheel horsepower. Compactor versions, with steel tamping-foot wheels replacing the rubber tires, became available in the late 1960s. A smaller 170-horsepower model, the 814, appeared in 1970. Cat has continually upgraded all of these models over the years to the present H-series and expanded the line upwards in 1997 when it took over the designs and manufacturing rights of two large wheel dozers made by Tiger Engineering Pty. Ltd. of Australia. These are the forerunners of Caterpillar’s two current largest wheel dozers, the 844H and 854H, with 627 and 800 flywheel horsepower respectively. www.finning.ca photographs courtesy keith haddock When high-speed, rubber-tired earthmovers became the industry norm in the 1960s, it was clear that heavy-duty wheel dozers would have to keep pace. Caterpillar set to work. High-speed earthmoving became possible in the 1950s because of improved technology and the introduction of rubber-tired off-road vehicles. Crawler-type wagons and pull-type scrapers hauled by crawler tractors were losing favour to motor scrapers and specialized off-highway trucks. Improved technology, in the form of wide-base tubeless tires, enabled earthmoving machines to move faster. In the early 1960s, Caterpillar introduced its first offhighway trucks and expanded its new 600- series motor scraper line to include the largest scrapers ever built by the company. But tractors and dozers in the earthmoving field mostly still ran on slow-moving crawler tracks, so something was needed to keep pace with high-speed earthmoving made possible with modern wheeled vehicles. Enter the wheeled dozer. In 1963, Caterpillar launched two heavyduty wheel dozer models, the 824 and 834, initially rated at 250 and 360 flywheel horsepower respectively. From the outset, Caterpillar realized that wheel dozers must be designed as heavy-duty earthmoving machines from the ground up, and not adaptations to agricultural tractors or wheel loaders. They had to be built with appropriate transmissions and gear ratios for lugging dozer work, and strong frames with dozer arm mountings positioned low, for efficient load transfer and machine stability. These essential features provided maximum reliability in adverse conditions. The 824 and 834 were advanced machines for their day, with turbocharged en- yellowiron New Products and Ser vices from Finning Easy armour cuts downtime Protect your buckets, blades and boxes with Cat’s mechanically attached wear plate system – MAWPS. Easy to install, MAWPS takes just minutes rather than days to change out. Wear plates, like disposable razor blades, simply slide in. When it comes time for fresh sacrificial iron, say goodbye to hammering or welding because a screwdriver is all that’s required. Ask your local Finning representative how you can reduce operating costs with MAWPS today. Point. Click. Parts Thanks to your feedback, ordering parts online just got easier. To check out your new, improved Cat PartStore, visit www.finning.ca. There, you’ll find a quick demonstration of time-saving enhancements such as “quick access” box at the top of every page that gets you where you want to go fast, a “help FAQ” to guide you in the right direction and a “contact us” link so you can email your questions. Get the most out of your machine Without periodic performance testing, your machine could be operating at as low as 85 per cent of its capability. What’s worse? Your operator may not even notice a difference. Make sure your iron’s at the top of its game with Finning’s Performance Analysis program. Our skilled technicians will pinpoint exactly what’s required to bring your equipment back to spec. Book your Performance Analysis today. For a limited time only, this $1,400 value is tagged at just $550. Caterpillar machines are built to be rebuilt The extensive Caterpillar Certified Rebuild program incorporates the very latest Cat technology and critical engineering updates into your machine at a fraction of the cost of buying new. After a thorough evaluation, including more than 350 tests and inspections and the automatic replacement of approximately 7,000 parts, you get a likenew machine and warranty. www.finning.ca Winter 2008 • tr acks & treads 13 14 tr acks & treads • Winter 2008 www.finning.ca Enerflow Industries turns heads with the new 2500horsepower frac pump Story by Tony Kryzanowski The Cat 3512C engine W PUSSYCAT, PUSSYCAT: Light and easy to move, Enerflow’s new gas frac pump sets the bar higher www.finning.ca e’re always trying to be on the leading edge of technology,” says Mark Williamson, who owns Enerflow Industries along with fellow industry veteran Larry Lindholm. Between them, they have the experience to recognize the need for a powerful machine, and when they need to finesse that power. That’s why the Calgary-based company has designed North America’s first 2500horsepower fracturing pump, nicknamed “the Pussycat” for its light weight, quiet operation and relative ease of transportation. Until now, frac pumps have been limited to 2250-horsepower because a larger horsepower engine at Tier 2 emission levels wasn’t available. Tier 2 emissions standards, introduced by the U.S. Environmental Protection Agency in 2004, and govern pollutants, such as sulphur, in a vehicle’s exhaust. Caterpillar recently entered the market with a lighter weight, 2500-horsepower, Tier 2 engine, helping Enerflow respond to the need for a frac pump that puts greater horsepower on the ground with a smaller environmental footprint. This development is especially important as fracturing uses a lot of energy. Fracturing an oil- or gas-bearing formation helps petroleum companies increase recovery in sites where production is tailing off. Typically, a well-servicing company brings a series of frac pumps to a well site, depending on the nature of the oil- or gas-bearing formation. The frac units pump a fracturing fluid into the formation under very high pressure, which expands the formation. After introducing the fracturing fluid, the Winter 2008 • tr acks & treads 15 COMPANY PROFILE: Enerflow Industries frac pump then injects a proppant, such as silica, into the formation to keep the fracture open. Because the formation is under greater pressure and the sand is permeable, the remaining oil and gas in the formation flows through the sand into the well bore and to the surface, increasing recovery from a less productive site. The Pussycat frac pump, featuring Cat’s Tier 2-compliant 3512C engine and a TH55 transmission, produces 2400 hydraulic horsepower. The need for fewer frac pumps on site translates into cost savings and a rosier bottom line for Enerflow Industries’ list of blue-ribbon well-servicing customers. These include Calfrac, Century Well Ser vice, Schlumberger, Halliburton, Trican, Gasfrac, Pride San Antonio and Pioneer. Once Caterpillar entered the market with the 3512C engine, Enerflow Industries’ reputation, knowledge and experience made it a natural choice to develop the first 2500-horsepower pump. As a Cat Original Equipment Manufacturer (OEM), Enerflow is authorized to offer its products with Caterpillar engines and components anywhere in the world. In Western Canada, Finning supports sales and service. Enerflow Industries has a line of more than 30 custom-designed products, spanning a range of oilfield service rigs and equipment for services such as fracturing, cementing, hydration, acidizing, nitrogen, drilling and coil tubing. Many of the company’s products feature Caterpillar engines ranging from 225-horsepower to 2500-horsepower. Company founders L indholm and Williamson struck out on their own in 2003, when the oil and gas industry was still in a recession, and then experienced a couple of growth years before business really took off in 2005. The partners have several decades of industr y experience in the well-servicing sector. When they launched Enerflow, it was with considerable support. Both have outstanding reputations for their ability to provide products and respond to industry needs. The Pussycat frac pump is a prime example. “There was a lot of demand in 2006 in particular,” says Lindholm, “and people couldn’t get their equipment fast enough. It was whatever you could do to produce equipment. We ramped up to respond to market demand.” At one time, Enerflow Industries operated from five facilities in Calgary, peaking at 300 specialized vehicles in 2006. Since then, the company has consolidated to two locations totalling about 200,000 square feet. Demand isn’t quite so high, but the company still expects to produce more than 100 frac pumps in 2008. Until now, frac pumps have been limited to 2250horsepower because a larger horsepower engine at Tier 2 emission level wasn’t available. 16 tr acks & treads • Winter 2008 At present, it has about 250 employees and the ability to custom design a well-servicing product from concept to fabrication. Because of its size, Enerflow Industries is also able to maintain a fairly large inventory of its most popular products, which sets it apart from competitors. The company continues to demonstrate that it is an industry leader, able to provide well-servicing with the latest proven technology. Along with its operations in Calgary, Enerflow will soon open a production facility in Texas. Its customers in that region also want a greater local service support presence. Expansion to Texas gives the company easier access to port facilities, as its products are shipped around the world to such far reaches as Russia, South America, Poland, the Middle East and the Far East. “We supply equipment to areas of the world wherever there is an oil and gas industry and where there is a need for well-servicing equipment,” says Lindholm. The contributions that Lindholm and Williamson have made to the advancement of Western Canada’s petroleum industry cannot be overstated. Enerflow often develops solutions that become the industry standard. A good example is a project that the com- pany recently completed with its customer, Gasfrac. This project is designed to respond to pressure placed on the industry to use less water in its processes. Working with Gasfrac, Enerflow developed technology, which includes the Caterpillar 3512C engine and TH55 transmission, that uses no water at all. This achievement has captured the industry’s attention. The fact that the Caterpillar 3512C is a Tier 2 engine also gives Enerflow a significant sales advantage. Having less impact on the environment offers critical benefits. “Our customers are under a lot of pressure to be more environmentally conscious,” says Williamson, and many have approached Enerflow to help them find solutions to their environmental challenges. Williamson says Caterpillar’s 3512C engine is what really makes their new Pussycat frac pump purr, because the surrounding engine components were already designed to handle a 2500-horsepower engine. The challenge was to maintain the horsepower and develop a mobile package light enough to be legally transported from one location to another. Caterpillar was the first engine supplier to step up to the plate with both a properly engineered engine and transmission. Lindholm says Enerflow Industries worked closely with Caterpillar and Finning on both the engine and transmission design. This is the first time that a Caterpillar TH55 transmission has been applied in a fracturing application. Although the company had its choice www.finning.ca of transmissions, Enerflow chose the TH55 for its ability to work in a larger horsepower range. It was designed for Caterpillar 700 series off-highway haul trucks, and was reconfigured for use in a fracturing application. “It has some excellent gear ratios,” says Lindholm. “There are not many open holes between the gear shifts, so you’ve got a wider range of rpm available to you. We helped a lot in the development of that transmission, and developed a cold weather package that we’ve incorporated into the engine.” To ensure the engine could perform in this application, Enerflow, Finning and Gasfrac participated in a “field follow” process directed by Caterpillar to make appropriate adjustments and install updates to eight pre-production models working in actual commercial applications. That process is now complete, and the TH55 transmission for fracturing packages is in full production at Caterpillar. The positive relationship that has evolved between Enerflow and Finning has contributed to the overall success of the 2500-horsepower frac pump package. Success in the oil and gas industry is largely achieved by establishing relationships with equipment suppliers who understand that everyone is under pressure to deliver technologically advanced equipment to meet customer demand quickly. For its part, Finning has oil and gas industry pros with knowledge of how processes work and how advances in equipment can help keep customers on top of their game. It’s that relationship with Finning and Cat that en- www.finning.ca couraged Enerflow Industries to give serious consideration to the possibilities and advantages of a frac pump package equipped with Caterpillar’s new 2500-horsepower engine and the accompanying TH55 transmission. The Pussycat package includes Enerflow Industries’ patented and trademarked ECAMS control system. Williamson says the development and commercialization of ECAMS was an important milestone in the company’s five-year history. It sets the company apart from its competitors, and has contributed to the advancement of the whole well-servicing industry. Among the first products the company launched, ECAMS is a user-friendly, PLC-based control system that allows the operator to control and monitor a number of processes during formation fracturing. An added bonus is that well-servicing components can communicate with each other, leading to smoother operation. Because of the networking ability of ECAMS and Enerflow Industries’ large manufacturing capabilities, Lindholm says the company is able to maintain fleet consistency for customers. With consistency, they can also update equipment as improvements become available. Enerf low Industries, Caterpillar and Finning anticipated that a higher horsepower package would garner significant industry interest, and it has. The first commercial Pussycat fracturing pump was sold to Century Well Service in November 2007. It has met all expectations, and Enerflow Industries has a long list of orders to build more 2500-horsepower frac pumps for other customers. It has given the company an edge and has provided Caterpillar and Finning with an opportunity to establish a market niche by supplying engines and transmissions for a higher horsepower frac pump. Coupled with the ECA MS monitoring system, which can be adapted to any language, Enerflow will market the package worldwide within its well-established network. Alberta companies, along with their counterparts in Texas, have been global leaders in technology transfer to the oil and gas industry for the past 40 years, according to Williamson. The Pussycat package represents just one more example of this leadership. Both Lindholm and Williamson are pleased with their company’s progress and the advances they’ve been able to provide to industry. “When we got Enerflow Industries going, we certainly had visions of a company that was going to grow to a pretty good size and was going to support the industry,” says Lindholm. “We do what we do best, and we’ve been doing this our whole lives.” Given their experience, Lindholm and Williamson know that the oil and gas sector is cyclical. Therefore, they believe that it is crucial that Enerflow Industries is constantly on the cutting edge to ensure that their customers will always keep them in mind for the latest and greatest in wellservicing technology no matter what the market is like. Snapshot of the Pussycat Calgary-based Enerflow Industries is pleased to announce the Pussycat fracturing system, featuring: • Tier 2 technology • A 2500-horsepower Cat 3512C engine • 2400 hydraulic horsepower • An environmental footprint lower than 2250-horsepower unit • The first frac system to use a TH 55 Caterpillar transmission • Reduced harmful emissions such as nitrogen oxides, non-methane organic gases, sulphur and others Winter 2008 • tr acks & treads 17 EQUIPMENT PROFILE 18 tr acks & treads • Winter 2008 www.finning.ca Cougar Inlet Logging Story by Katherine Fawcett photography by Thea Stratton Like its owner, this logging company is no run-of-the-mill organization C ougar Inlet Logging is no runof-the-mill logging company, and its owner, Bob Lee, is no ordinary lumberjack. Most logging companies operate independently of the mills they sell to, but Cougar Inlet is owned, in part, by its main customer. While many logging companies are downscaling, Cougar Inlet is maintaining a committed workforce, weathering the economic downturn. And, while some companies are cutting corners and making do with the equipment they have, Cougar just purchased three new pieces of Cat equipment. Considering the difficult financial times the entire industry is facing, Cougar Inlet must be doing something right. At the helm is Bob Lee, a cheerful father of three in his mid-50s. He isn’t your typical fishin’ huntin’ beer-chuggin’ kind of guy. Based in Campbell River on the east coast of Vancouver Island, Lee is an avid crosscountry skier. His tan-coloured pickup truck is filled with Nordic gear for much of the www.finning.ca winter, as he hits the trails with his wife, or cheers for his ski-racing daughter. It’s Lee’s unconventionality, innovation and approachability that led to Cougar Inlet’s unique relationship with Mill and Timber, the Surrey-based sawmill that holds the licence for the land on which Cougar Inlet works. “Bob is the kind of guy who always looks on the bright side,” says Lee Pond, Bob Lee’s counterpart and resource manager at Mill and Timber. “He always has a smile. He’s got a great sense of humour and likes to kick around new ideas.” Lee has worked in logging for 35 years. Meticulous and neat, he can’t step over a dirty rag or walk past a misplaced grease tube without stopping to pick it up and put it in its proper place. According to Pond, the relationship between the two companies has been the best he’s ever experienced. Over the length of their 12-year partnership Cougar Inlet and Mill and Timber have been consistently working towards a common goal: earning a profit from responsible Winter 2008 • tr acks & treads 19 EQUIPMENT PROFILE A turn-of-the-century lumberjack would recognize little but the trees themselves in the modern logging industry. The days of hand-logging supported by bulls, horses and steam machinery have given way to a power-driven industry that relies on grapple yarders, self-loaders and helicopters. Despite the changes, loggers of all generations have always enjoyed gathering to show off their skills and celebrate their work in friendly competitions. North Island Logger Sports in Campbell River, B.C. is Canada’s largest competitive logging event. With a prize package of more than $40,000, it has included national and international championships and been featured on TSN and OLN. Run in conjunction with the Campbell River Salmon Festival, it attracts up to 80 participants each summer for a fun weekend of axe throwing, tree climbing, hand bucking, birling (log rolling), power-saw cutting and more. It’s a thrilling event for families and loggers in this resource-based community. The 2009 North Island Logger Sports will take place in Nunns Creek Park, Campbell River, August 7 to 9, 2009. For details, please visit www.crsalmonfestival.com. logging. It’s a relationship based on trust and transparency that benefits both parties. “Right from the start, we wanted a different model where contractor and licensee work and live together,” explains Lee. “We have a lot of common interests. It’s like being married. If you have issues, you have to deal with them or there’ll no longer be a marriage.” It also helps that Cougar Inlet operates a dryland log sorting operation right alongside the mill. Mill and Timber staff work closely with the scalers and dryland sort crew to ensure the correct logs end up in their own mills to maximize profits. Although it is a rare business model in today’s industry, mill/logger partnership used to be common back when licensees had their own logging Fun with an axe 20 tr acks & treads • Winter 2008 crews, says Lee. “Not anymore,” he says. So what makes this relationship work so well? “The people,” answers Pond without hesitation. “We both want to make it work. Bob Lee is honest and hardworking. He motivates his crew to work with us. He understands forestry, planning issues, he knows the lumber markets and he knows that when you talk about it you’re not just blowing smoke up his ass.” Cougar Inlet does well, but also pumps substantial income into the community. Last year, the company harvested approximately 200,000 cubic metres of primarily oldgrowth red cedar, and built approximately 40 kilometres of logging road. It paid in excess of $6 million in stumpage and royalties to the provincial government, approximately $6 million in direct payroll, indirectly supporting dozens of suppliers and small businesses on Vancouver Island. With a crew of as many as 70 people from across the Island and B.C.’s Lower Mainland, Cougar Inlet could be considered a mediumwww.finning.ca sized logging company. Working in rotations of 14 days on, seven days off, the crew lives in logging camps or on barges on the ocean, which can hold as many as 30 employees. Lee splits his time between his desk at the office in Campbell River and the field. “I enjoy getting out and making the rounds in camp and staying in touch with the crew,” he says. “It’s too easy to become immersed in the office end of the business and lose touch with what is really important.” The crew is currently working in Seymour Inlet, a remote area on the B.C. coast that is accessible only by boat or aircraft. Three quarters of its output is old growth red cedar, which Mill and Timber manufactures and exports, mostly to the U.S. for fencing, decking and siding. The remainder is hemlock and yellow cedar. It’s sold on the open market to a variety of customers. It’s not easy work. Loggers must be as effi- cient as possible and adapt to an everchanging environment. Companies need highly skilled operators in top-of-the www.finning.ca line, well-maintained machines that have minimal downtime. Last February, Cougar Inlet Logging purchased a new Cat 966H with a log grapple for use in its dryland sort area, known as the Woods Lagoon. In May, Lee added two new 330Ds for road building work. These machines work in tandem with the company’s 1998 320 excavator, 1979 14G grader and three articulated rock trucks. There are approximately 25 machines in its f leet, including other road builders, hoe drills, off-highway log trucks, yarders and log loaders. With two separate road- building crews working at all times, none of the equipment sits idle. There are several reasons the company chose yellow iron for its three new machines. Service was top of the list. “We like Finning’s parts and service,” says Lee. “In the end it’s been working out really well.” Although some of Lee’s operators have had to get used to the cabs, they all love the fact that the machines are quieter and very comfortable. Lee says the company strategy for 2009 is to stay the same size and maintain good equipment and people “so we can meet our partner’s demands.” Cougar Inlet will soon be expanding its ability to work in remote locations by building two new barges to accommodate the crew. “We want to make sure we’re in a strong position,” he says. “Our focus and strength is road-building, operating in remote areas and being able to move quickly from site to site.” In the face of opposition to logging, Lee says his detractors “don’t understand the industry” and what a wonderful renewable resource the forest is for all British Columbians to benefit from. As licence holder, Mill and Timber is responsible for reforesting all logged areas and ensuring a “free to grow” forest for generations to come. Whether he’s skiing between them or harvesting them for the good of the com- munit y, Lee is intimately acquainted with the trees of Vancouver Island and it’s clear timber is his passion.“Whether it’s providing direct employment, supporting small business and government or simply providing a natural playground for all to enjoy,” he says. Wood chips Think you know it all? Here are 10 facts about the B.C. forest industry: • 40 million hectares of British Columbia’s total land base of 60 million hectares is covered in forest. • 95% of B.C.’s land base is publicly owned. The provincial government allocates the right to log Crown land through the sale of stumpage feed and a regulated annual allowable cut. • British Columbia harvests less than 1% of its forests each year. • Canada has more than 15% of the world’s entire softwood forest stock. About half of the softwood produced in Canada comes from B.C. • Forest products accounted for 39% of the total value of exports in B.C. in 2005, down from around 60% 20 years ago. • The forestry industry currently employs about 1% of B.C.’s workers, half what it employed at the beginning of the 1990s. • Logging and forestry contributes approximately 3% of the province’s GDP. • The average hourly wage in the logging industry is $23.60, more than 20% higher than the average for all industries in B.C. • Each year, about 200 million seedlings are planted to reforest areas after logging, wildfire and insect infestations. Source: B.C. Forestry Innovation Investment, and B.C. Provincial Government’s: “A Guide to the B.C. Economy and Labour Market.” Winter 2008 • tr acks & treads 21 Story by rick overwater illustration by heff o’reilley Safety First Your company’s safety program isn’t effective unless you audit and tweak it as necessary The Good Kind of Audit It was in the middle of a routine audit of one company’s safety process that Jon Pel identified a fundamental flaw that could easily have resulted in injury or death. “They had an evacuation drill that took nine minutes, which seemed a lit- tle long,” says Pel, a B.C.-based regional environmental health and safety manager for Finning (Canada). He asked a few questions and discovered that once the building was evacuated, “sweepers” were being sent back in to make sure nobody was left behind. “Nobody ever goes back into the building,” says Pel. “Never, ever. That’s how people die.” It was a simple mistake in an otherwise well-run procedure. Fortunately, it was also easily corrected by communicating new policies. It was also evidence that internal safety audits – actually studying and documenting a company’s safety practices – are a crucial final step. “If you’re not measuring things you have no idea if you’re managing them properly,” says Pel. He adds that safety audits are standard in most industries. That’s the case for Cougar Inlet Logging, a “stump to dump” logging company based in Campbell River, B.C., which operates under the B.C. Forest Safety Council’s guidelines. A complete job for this company involves flying into a job site, generally a bay or inlet on the B.C. coast, and doing everything from felling trees to dragging them down to the water. In the course of a year, Cougar Inlet Logging handles more than 200,000 cubic metres of timber and builds more than 40 kilometres of roads, using equipment such as excavators, chainsaws, log loaders, grapplers and more. Safety is a big concern. 22 tr acks & treads • Winter 2008 Glenda Inrig is the operations administrator and internal safety program auditor for Cougar Inlet. “We are definitely a highrisk industry,” she says. In 2005, there were 43 fatalities in the logging industry. “B.C. Forest Safety Council and the major companies got together and said ‘we need to change this.’ We jumped on board,” says Inrig. Establishing an effective auditing process is daunting, but pays dividends. Fortunately Cougar Inlet already had an effective safety system in operation. The common initial resistance from employees to filling out daily maintenance inspection reports, conducting initial onsite safety meetings, documenting monthly equipment checks and other similar reporting tasks was behind them. “All of our people have bought into this program and it works,” says Inrig. Audits can catch occasional missed maintenance recommendations and newly identified safety hazards. For Cougar Inlet, the first step was to hire an external auditor to give the company a BASE audit (Basic Audit and Safety Evaluation), someone to go over their program top to bottom. It was an exhaustive week-long process that had the auditor inspecting the shop and field work, studying reams of documentation, and interviewing employees. “Even your newest employee has to have answers for the auditor,” says Inrig. “You can say your company does something safety-wise, but does the worker know that?” Cougar Inlet fared well on its first audit and the next step was to develop an internal auditor position, a responsibility that fell to Inrig. She took an auditor training course, which she describes as “a lot of homework and a lot of information in a short amount of time.” One year later, Inrig conducted her first internal audit, earning kudos from the B.C. Forest Safety Council. Next year they’ll do it again, she says. “Then, the third year, an external auditor comes back in to verify everything.” The process has brought about good results for both Inrig and Pel. Inrig cites the discovery of design flaws in an escape hatch in new machinery that made the door handles difficult to use. Thanks to the auditing process, the company obtained and retrofitted new handles. Pel discovered that reports of repairs needed on one outlet’s forklift mast chains (which are responsible for carrying massive amounts of weight) hadn’t been followed. Catching seemingly small oversights tightens a safety program to accomplish every company’s ultimate goal: zero injuries in a given year. “This also guides future action and helps you apply your safety budgets and resources properly,” says Pel. “And it needs to be ongoing. If you stop, you go back.” www.finning.ca s p e c i a l r e p o rt WHERE COAL IS KING Tumbler Ridge, with its black seams of coal, is golden for two companies – Western Canadian Coal and Peace River Coal. Backed by an insatiable demand from China and India for the mineral, Western and Peace are together producing more than six million tonnes annually. Now Tumbler Ridge is watching its formerly depressed real estate prices climb upwards. Perry Creek, or “Wolverine” as the locals call it, is one of three northeastern B.C. mines proving to be a windfall for Western Canadian. Initial feasibility studies assessed its reserves at 17 million tonnes. A more recent study reveals as much as 27.7 tonnes of coal. The townsfolk figure this windfall will give them the time needed to diversify the economy. Tomorrow’s Town 24 Tumbler Ridge has seen its fortunes wax and wane with the price of coal. The town’s looking bullish these days as the population swells and real estate values soar. www.finning.ca Coal Power 26 Western Canadian Coal couldn’t be happier – or busier. Prior to the Perry Creek Mine opening, Western signed a $32.6 million deal with Finning for 18 new pieces of Cat equipment. That was just the beginning . Winter 2008 • tr acks & treads 23 s p e c i a l r e p o rt WHERE COAL IS KING Tomorrow’s Town Story by Robin Brunet Tumbler Ridge grew and shrank with coal prices. Things are good again, and this time the town aims to stay in the black T umbler Ridge’s postal code is VOC 2W0 or, as locals put it, “Valley Of Coal To Work Over.” That moniker was created 27 years ago, shortly after Tumbler Ridge was built as a home base for workers at the Quintette and Bullmoose coal mines, and it almost became the town’s epitaph in 2000, when Teck Corporation closed both mines due to high production costs and declining world coal prices. With no other industry to rely upon for their livelihood, many locals packed their bags and Tumbler Ridge’s 5,000strong population plummeted to 1,900. What a difference a revitalized world market makes. Tumbler Ridge is the Valley of Coal again now that two companies – Western Canadian Coal and Peace River Coal – are working over with a vengeance. Backed by a seemingly insatiable demand for the mineral from China and India, Western and Peace combined are producing more than six million tonnes of metallurgical coal annually from various mines in the vicinity. Tumbler Ridge’s population has swelled beyond 3,000, and real estate values are soaring. That makes people like Marie Therriault, manager of Tumbler Ridge’s Chamber of Commerce, smile. “We almost became a ghost town eight years ago,” she says. “Beautiful split-level homes that had been abandoned in the exodus sold for as little as $23,000. We were too remote to attract other industries, and the people who remained here toughed it out. But now there’s a real sense of hope about our future. The general sentiment is we’ve got five to 10 years of breathing room, during which time we may be able to become a self-sustaining community.” Renewed coal production has even proven stable enough for Finning to establish a small shop in town, which Bob Bays, general manager for Western’s Wolverine Mine, describes as “a satellite facility for other Finning outlets and certainly convenient for us, especially 24 tr acks & treads • Winter 2008 considering our operation runs 24/7, 365 days a year.” Located 125 km southwest of Mile Zero of the Alaska Highway, the town was incorporated in 1981 as part of the British Columbia Resources Investment Corporation’s Northeast Coal project. A consortium of Japanese steel mills had agreed to buy 100 million tonnes of coal for US$7.5 billion from Teck and Denison Mines Inc. over a 15-year period, and analysts believed Tumbler Ridge would grow to a 10,000 person-strong community. They also anticipated prosperity well beyond serving the Japanese market, since no less than 15 major coal deposits had been discovered in the vicinity during the 1950s. The provincial government built two highway connectors into the region and supplied the community with power and rail lines, water, sewage and other infrastructure. Buildings were erected in 1982 as the mines reached full production and for a brief while the community assumed the aura of a quaint and cozy boom town tucked into the foothills of the Rockies. But, in 1984, shortly after amenities were expanded to include a secondary school and recreation centre, the good times ended: World coal prices began dropping and the Japanese requested that Teck and Denison lower its prices accordingly – a request that was supported by the Supreme Court of Canada, six years later. Denison responded by slashing production and applying for court protection from creditors, a move that allowed Teck to acquire its Quintette mine. Coal prices continued to drop throughout the 1990s, and even though new contracts with the Japanese were signed in 1997, the Northeast Coal project ultimately incurred a net loss of $2.8 billion. The exodus from Tumbler Ridge – as well as the subsequent grab of over 1,000 ultra-cheap homes by outside investors – made headlines all over Canada. It’s hardly news that the resurgence in coal prices is driving many regional economies, besides that of Tumbler Ridge. B.C. Mining www.finning.ca s p e c i a l r e p o rt WHERE COAL IS KING Association president and CEO Pierre Gratton describes 2008 as a year in which “companies continued to invest for the long term.” Even in 2007, when coal hovered at a mere US$80 per tonne compared to US$138 per tonne during the first quarter of this year, the B.C. industry still reported a net income of $1.2 billion along with 24 mining projects under environmental review or in the approval stages. But the prevailing question from anyone who suffered through the lean years of the 1990s is this: What will prevent the current boom from becoming a bust? The answer is two-fold: China and India. High quality metallurgical coal, which B.C. has in abundance, is required to make steel; worldwide demand for steel is stronger than ever, and China is by far driving steel production growth the most, with 500 million tonnes emerging from its mills annually. India comes in second with 50 million tonnes annually, an amount analysts believe could easily triple within a decade. These and other markets compelled Western Canadian Coal to open the Dillon mine in 2003 (using the infrastructure from the Bullmoose mine) and then commence production at the Wolverine and Hermann mines between the former Bullmoose and Quintette plants. Natural gas development also played a role in this community’s remarkable recovery and, by 2005, the town’s population had jumped to 3,000, and houses were selling for $80,000 and higher. Today, denizens of Tumbler Ridge are cautiously optimistic about the town’s future. “Construction on a new retail centre is underway in our downtown area, the first time in years such a development has occurred, plus we’re in the process of welcoming our first chain business to the community,” says Therriault. “It’s a Subway sandwich shop.” Although it’s estimated that the mines will operate for at least 15 years, locals prefer to allow themselves up to a decade of space in which they hope to develop revenue streams other than resource extraction. Some employment has already been generated in tourism, thanks to attractions from dinosaur fossil discoveries, outdoor recreation and nearby provincial parks. “We hope to bolster tourism further,” says Therriault, saying that investors have expressed an interest in opening an eco-lodge in the vicinity. Meanwhile, Tumbler Ridge is in the enviable position of examining how to expand its residential and amenities infrastructure in anticipation of more mining activity in the near future. “Teck Corporation was a wonderful support to our community via its fundraising and charity work, and Western and Peace, despite their busy schedules, are stepping up to the plate to fulfil local needs, including fundraising for a new daycare centre – which Finning has also lent support to,” says Therriault. The town needs other facilities, such as a seniors’ drop-in centre, and there’s more infrastructure work to be done. “But at least we’re on the road to recovery,” Therriault says. “The bottom line is that Tumbler Ridge is a fantastic place to live and visit. We want to make it a permanent B.C. destination.” Old is new again In addition to its many attributes, such as great hiking, boating, fishing, scenery and more, Tumbler Ridge has a relatively new attraction – or is it an old one? Anyway, tourists and residents can now add dinosaurs to their list of things to do. Eight years ago, two boys from Tumbler Ridge, Mark Turner and Daniel Helm, were tubing on a nearby creek. The pair dumped in the water and wound up walking back to their starting point. Turns out they weren’t the first to hoof it along that particular stretch. Pretty much any boy under 12 could recognize a set of dinosaur footprints embedded in rock, and Mark and Dan were no different. It took them a while to convince the right people to check the site out. Eventually University of Alberta specialist Rich McCrea confirmed that find and others. The area has also become a trove of Cretaceous Age fossils. www.finning.ca Winter 2008 • tr acks & treads 25 s p e c i a l r e p o rt WHERE COAL IS KING B ob Bays’ soothing southern drawl may seem out of place in the northeast B.C. town of Tumbler Ridge, but the U.S. mining veteran is right at home in temperatures that can drop to -40˚C, at a work site where production is around the clock, 365 days a year. Having worked in mines across North America for almost three decades, Bays is used to extreme weather. But that only partly explains his ease in this relatively remote locale. As general manager of the nearby Perry Creek mine (more commonly referred to by locals as the Wolverine mine because it’s located in the Wolverine Valley), he places his faith in a large fleet of Caterpillar equipment and its operators to keep things running smoothly. “We try to avoid downtime at all costs, and we succeed because Caterpillar is a proven leader in durable mining equipment,” he says. “That’s always been the case in the mines I’ve worked for. Plus, Finning’s backup service is by far and away the standard that competitors have a tough time living up to.” The affable Bays tends to downplay the complexity of Perry Creek, which is one of three northeastern B.C. mines owned by Western Canadian Coal. “This is a surface operation in which we blast rock and move the debris away to stable areas in order to expose the coal seams,” he says. 26 tr acks & treads • Winter 2008 Coal Power Never mind other fossil fuels. Coal in B.C. is burning brighter, and more efficiently, than ever Story by Robin Brunet www.finning.ca s p e c i a l r e p o rt WHERE COAL IS KING “So, lots of blasting and lots of hauling. Our ratio of blasting rock to extracting coal is about 10 to one, which is perfectly acceptable for high-quality metallurgical coal given the current world prices of the mineral. But, nonetheless, because of the expense associated with operating equipment and transporting goods these days, we try to be as efficient as possible. The people at Finning are well aware of this and, since we opened for business two years ago, they have gone the extra mile in helping us achieve our goals.” Perry Creek is proving to be a windfall for Western: It contributes to the company’s overall annual output of 3.5 million tonnes of metallurgical coal. Initial feasibility studies in 2003 assessed Perry Creek’s total reserves at 17 million tonnes, which was more than enough for Western to kick-start site clearing and construction at Tumbler Ridge – and for the small town’s depressed real estate prices to begin their dramatic climb. But a more recent study reveals that the mine actually has 27.7 tonnes of clean coal product, meaning Western will be a driving force in Tumbler Ridge’s economy for a long time to come. “We’ve been told that Western will have a presence in our community for about 10 years,” says Marie Therriault, manager of the Tumbler Ridge Chamber of Commerce. Shortly after production at Perry Creek commenced in October 2006, the first shipments of Wolverine coal to India and Europe were transported from Prince Rupert’s Ridley Terminals. While Western’s highly trained and carefully co-ordinated work crews can take much credit for the smooth function of Perry Creek, Caterpillar and Finning (Canada) have also played an integral role in its success. Prior to the mine’s opening, Western signed a $32.6 million deal with Finning for 18 new pieces of Cat equipment, and its confidence in Perry Creek as well as its relationship with Finning was such that it signed for another $8 million worth of Cat machines soon after. For its part, Finning added a new mining account manager specifically for the town, one of two managers that would be permanently stationed in the community. It also established a physical presence downtown. “They run a small shop that can make or replace hoses for our machines,” says Bays. “It’s also a handy satellite facility for us. We use it to send component parts that need replacing to the appropriate Finning vendors.” Because Perry Creek is a non-stop operation, on-site mechanics are a priority: the mine employs between four and six of them per shift. “They’re contracted by Finning and ready to solve any unforeseen problems,” says Bays. “We’ve also equipped ourselves with maintenance kits for our fuel and air systems, so we’re pretty self-contained.” Few problems have occurred in the two short years Perry Creek has been producing coal. The mine has an inventory of 27 trucks, seven primary loading machines, two large hydraulic front shovels and two backhoes. Western’s multimillion-dollar purchase from Finning consisted of five Cat 789C haul trucks (190-ton capacity), five Cat 785C haul trucks (150-ton capacity), four Cat D10T tractors, a Cat 16H motor grader, a Cat 992 wheel loader, a Cat 834H wheel dozer and a Cat 385 excavator, with some of this equipment used for preproduction stripping as well as mining. “The 992 is a replacement piece for our excavators, and we maintain a minimum of 23 trucks and six excavators on site, all of them www.finning.ca Winter 2008 • tr acks & treads 27 s p e c i a l r e p o rt WHERE COAL IS KING running around the clock,” says Bays. “Except for fuelling and safety inspections, these machines are loading and transporting rock without ever being shut off. And so far we haven’t suffered any mishaps.” Not even when the temperature drops to -40˚C, which compromises the structural integrity of any equipment, says Bays. “The Cats are so reliable in severe weather that we can focus instead on the well-being of our crews.” Because Western’s inventory also includes non-Cat machines, Bays prefers not to dwell on the individual merits of one brand over the other. But he does mention Cat’s outstanding use of advanced technology such as that applied to the D10T, whose Automated Blade Assist and optional Computer-Aided Earthmoving Systems allow the operator to do more work in less time by maximizing the machine’s capabilities and power. Additionally, ACERT technology reduces exhaust emissions on the D10T’s 646-horsepower C27 engine to the point where it exceeds the most stringent government regulations. With its resources now fully deployed, the Perry Creek mine produced 683,000 tonnes of run-of-mine coal in the third quarter of 2008 and processed roughly the same amount via the Wolverine plant – almost half a million tonnes more coal than the company produced during the second quarter. Western is also rapidly paying back debt on an overall mine and plant development expenditure of 28 tr acks & treads • Winter 2008 www.finning.ca s p e c i a l r e p o rt WHERE COAL IS KING About coal $245 million. Plus, a recently implemented productivity improvement plan has resulted in improved operations and lower costs. Western president and CEO John Hogg points out that as a northeast B.C. coal producer with underutilized rail and port capacity, his firm is well-positioned to take advantage of anticipated coal prices next year, which may be as much as 100 per cent higher than current coal year contracts. (Recent coking sales have exceeded $275 per tonne.) Production is expected to ramp up to three million tonnes annually, making Western one of the largest producers of metallurgical coal in Western Canada. Bays is looking forward to the future and a continued positive relationship with Finning. “They have a good team of people who provide great service,” he says. “Occasionally they get an earful from us, but they always take it well and always take measures to improve themselves. We’re very satisfied with the way things are working out.” • Coal is the planet’s most abundant fossil fuel. • Some of coal’s most common uses include electricity generation, steel and cement manufacture, and industrial process heating. • Coal provides more than 23% of global primary energy needs. It generates nearly 40% of the world’s electricity. • Almost 70% of total global steel production is dependent on coal. • There are four main types of coal and all are found in Canada: anthracite, bituminous, sub-bituminous and lignite. • Every year, Canada exports about 28 million tonnes of coal globally to a value of about $2 billion. • The international trade in coal has expanded faster over the past decade than trade in any other commodity. • Electricity generation from coal is becoming increasingly efficient. It’s eight times more so than at the turn of the last century. • Coal is the largest commodity carried by Canadian railways. • Canada ranks 10th in the world in total coal reserves. Source: The Coal Association of Canada, www.coal.ca www.finning.ca Winter 2008 • tr acks & treads 29 COMPANY PROFILE: Stobbe Excavating READY TO WORK: Jason Stobbe may be young, but he already has years of excavation experience, and the awards to go with it 30 tr acks & treads • Winter 2008 www.finning.ca A young Kamloops contractor is making his mark, using yellow iron and Finning to the home team advantage A s a young boy growing up in sunny Kamloops, B.C., Jason Stobbe practically lived outside. In the backyard of his family’s home, he’d spend hours in the sandbox, fashioning roads and lakes for his Tonka dump trucks. Lots of young boys play with toy vehicles, but Stobbe came by his fascination honestly. His dad, Dave Stobbe, owned a construction company and would often take his young son to the jobsite. “I always admired my dad as a kid. He had a single-axle dump truck and a skid steer,” Stobbe says. “Every now and then, he’d take me for rides in the dump truck and I loved it.” As Jason Stobbe grew, he spent more time with his dad at work, observing how his dad used the equipment and handled the jobs. “He’d always give me opportunities to learn,” he says. Often, this meant actually running equipment himself, the kind of hands-on learning that Stobbe, like most talented operators, has www.finning.ca Story by Caitlin Crawshaw photography by rick tolhurst always loved. “I’m not the sort of person who can read a textbook and figure it out. I have to do it.” After graduating from high school in 1992, Stobbe did what many young people do – he grabbed a backpack and toured the world. His parents met up with Stobbe and his high school pal in New Zealand. One day, quite out of the blue, his father asked him if he’d like to use some of his construction equipment – namely the skid steer and dump truck – and try his hand at finding and organizing his own jobs. There was no question in his mind that this would be a wonderful opportunity. “I wasn’t expecting it,” Stobbe says, “but I wanted it.” As soon as he returned from his travels, he hit the ground running. He took out an ad in the newspaper and in no time he’d lined up a few projects. For the first year and a half, he did a few jobs a week, which kept him busy enough to keep going. “Anything that someone wanted me to do, I’d do it. I was always very confident I could get the job done, because I had a vision in my head,” Stobbe explains. Before the first day of the job, Stobbe would mull over the details as he lay in bed at night or even visit the site ahead of time to plan things out. Not surprisingly, it didn’t take long for Stobbe to develop a reputation for being thorough and dependable, and things started to get busy. In 2004, he officially formed his company – Stobbe Excavating – which specializes in residential excavation, such as basement digging and backfilling. But the company has also been moving towards utility work, such as preparing the ground for infrastructure in new housing developments. With the business growing, Stobbe realized he needed to increase his fleet. He decided to purchase some equipment from his dad, who was heading into semi-retirement. Though he had picked up a 1989 Cat Winter 2008 • tr acks & treads 31 COMPANY PROFILE: Stobbe Excavating EL200 excavator in a private sale, he had no special interest in Caterpillar equipment until meeting a Finning sales associate named James Morton, who was about the same age as Stobbe. “There was something about James I really liked. He introduced me to Caterpillar equipment and spent a lot of time with me,” he says. But it took some time for Morton to make the sale. While Stobbe’s business was young, as was Stobbe himself, he didn’t want to invest in equipment that was solely suitable for small jobs. He knew that if he set his sights on bigger jobs, and bought the equipment he’d need for bigger opportunities, Stobbe Excavating would rise to the top. “James said I was one of his toughest sales because he wanted to sell me a mini, thinking that I’d be a small contractor.” In the end, Stobbe purchased a used Cat 320 CLU. “It was a landmark machine,” Stobbe says. The versatile excavator has great visibility and the capacity to handle significant loads. It also goes where comparable excavators fear to tread. “It’s a big machine, but it can get into some tight places.” Another of Stobbe’s favourites is the Cat 314, which has a great levelling blade and a hoe pac to compact the ground down. “It’s a good money-generator, but they all are,” says Stobbe. He admits it’s just about impossible to name a favourite. “If you have the right machine for the right job, it makes it great to run them all.” In fact, since purchasing his first piece of Caterpillar machinery, Stobbe has replaced all of his equipment with yellow iron. “I wanted to get the biggest machines into the tightest places,” says Stobbe. “There’s a lot of residential construction where you can’t fit a lot of big equipment in there. But now, with Cat having tight tail-swing machines, you can have bigger machines in smaller areas.” In all, Stobbe has five excavators, one skid steer and two dump trucks. Stobbe’s business keeps the equipment busy all the time. In the long term, Caterpillar products make better business sense than their competitors, says Stobbe. “I wanted re-sale value, 32 tr acks & treads • Winter 2008 BUCKETS OF WORK: Stobbe employee Ed Shaw directs some fine bucket work by operator Jeff Hoeppner on a residential basement excavation in Kamloops I wanted dealership support and I wanted to be set apart.” Stobbe points out that Cat vehicles are a common sight on the jobsites of large construction companies. While Stobbe Excavating is known for its Caterpillar equipment, his machines also stand out among Cats. There’s no mistaking a Stobbe machine. “Little kids will say, ‘Yours are the Hot Wheels excavators with the flames on them!’” Stobbe says with a laugh. “I’ve tried to set myself apart that way.” From the skid steers to the largest excavators, all of Stobbe’s equipment is adorned with flame decals. The unusual branding started when he decided to sell his pride and joy, a 2002 limited edition Camaro, to buy a dump truck. “I still wanted a racecar image, I wanted the truck to at least look fast.” It must have been a wise decision: Stobbe took his wife on their first date in that dump truck. “To the dump, of all places,” Stobbe laughs. Of course Stobbe is sold on Cat’s reliability, but Finning’s service group has ensured that when a piece of equipment has required maintenance, the process is quick and painless. Finning reps Keith Barron and Ken Serink look after Stobbe. “And product support treats me like I’m one of the team. They www.finning.ca come out to my site sometimes and see how the equipment works to make sure there’s no problems,” says Stobbe. “It’s really good to be part of the team and not be blown off just because I’m a younger entrepreneur.” Stobbe uses many of Finning’s special services to minimize downtime and keep his operations running smoothly. Finning’s custom track services helps Stobbe get the most life out of his undercarriage, the most expensive part of excavator maintenance. A product support rep uses special diagnostic equipment to measure the undercarriage for wear, determining which parts to replace and when. “This helps achieve maximum performance, long life and the lowest cost per hour,” explains Finning rep Keith Barron. Stobbe also subscribes to the Preventive Maintenance program. Periodically, a Finning crew visits to do oil and filter changes and diagnostic checks. “They’ll come at 4 or 5 o’clock in the evening and get the whole thing done, so I don’t lose time during the day,” he says. In addition to these special services, Stobbe makes use of Finning insurance, Caterpillar financing and Finning’s Exchange program, whereby he can exchange a worn compo- go wrong, “you get really good service with Finning,” he says. There’s no question that having reliable equipment is important given the tight timelines and careful planning required by Stobbe’s business. These days, he manages seven operators and always has to be looking ahead to the next best thing, while still ensuring the job of the moment is done right. Stobbe is always scanning the community for new opportunities. Even when he’s on vacation with his wife, stepson and 10-month-old baby, Stobbe can’t resist checking out the construction sites he passes. “My wife tells me to turn off – but I can’t. It’s a part of me now.” While his enthusiasm for his work may not be an asset on vacation, it recently earned Stobbe Excavating the Best Subtrade Award from the Canadian Homebuilders Association. But Stobbe takes this with a grain of salt. “I’m a proud person, but I don’t think shelf ornaments make a person,” he says. “I’m still self-motivated. If you come to my office, you don’t have to see my collection. You can see [I’m competent] by talking to me.” But he admits that it is nice being recognized by peers, though he attributes the award primarily to his staff. “They’re the backbone of my business,” he says – as well as his team at Finning. “They give me outstanding support, and if you have an award-wining company like that, and a great team of guys who work for you, you can’t go wrong. And having great equipment that’s specifically designed to meet your needs – Finning’s really helped me out.” Running his business will always keep Stobbe busy – fortunately, it’s more like play than work, he says. It’s a passion he’s eager to pass on to his sons. Now and then, he brings baby Jacob to the jobsite. “Every once and a while, he sits on my knee and pretends to drive [the excavator],” says Stobbe. Always eager, 10-year-old Ethan has helped in landscaping the family’s front yard. “It’s every father’s dream to have his kids follow in his footsteps,” says THE GANG’S ALL HERE: Meet the family: (L-R) Stobbe. “But it all depends on them. Jacob Stobbe, Jason Stobbe, Chris Stobbe, Jeff Hoeppner, It’s not about me.” Marc Harrie, Ed Shaw, Rudy Loewen, Larry Stickney, Adam Lund www.finning.ca nent towards a remanufactured one. (It’s an Edmonton-based service offering parts that are rebuilt according to Cat specifications). Equipment rarely goes down, but when it does, Stobbe has Finning deal with the mechanical issue. After one bad experience with a slow mechanic who kept another type of excavator in his shop for three weeks, Stobbe has chosen to spend a bit more upfront in order to save money in the long run. Like every contractor, Stobbe knows that good maintenance is part of a sound business plan. “I try to keep problems from happening. If we notice something, then [Finning] comes out,” he says. One time, Finning rep Ken Serink came to the jobsite for an hour just to watch the equipment run on a side-hill. “We’d had track issues, and Ken could explain it better than we could to the mechanic.” One of Stobbe’s longtime staffers, Jeff Hoeppner, has operated all kinds of construction equipment. “You name it,” he says. “I’ve run it.” Cat products and Finning support keeps Hoeppner doing his job. “[Cat] just works really well. They don’t have a lot of little stupid things going wrong.” If things do Stobbe Excavating recently won an award from the Canadian Homebuilders Association Winter 2008 • tr acks & treads 33 FIELD TEST Mawps Up Story by Noel Lacadie An advanced wear plate system is cleaning up downtime for Finning customers, keeping machines in the field D ave Zesko knows the ins and outs of ground engaging tools (GET) probably better than anyone on the planet. As Finning’s GET ambassador, he has the privilege of introducing customers to the value of sacrificial bits of steel that protect buckets, blades and truck boxes. “I like the opportunity to understand our customers’ GET challenges and resolve issues,” Zesko says, noting that a strong focus on the often overlooked subject of GET can dramatically improve productivity and reduce costs. And just in time for these more challenging economic times, Finning’s GET champion has a new-cost and time-saving tool to offer – Caterpillar’s new Mechanically Attached Wear Plate System, or MAWPS. Like other GET products, MAWPS protects work tools from severe impact or being 34 tr acks & treads • Winter 2008 GET MAWPS: The new MAWPS GET system is worth substantial savings to us,” says Lafarge’s Gary Saumer. “It was three times the price to do it the other way.” damaged when working in abrasive environments. Think of them as knee pads for machines – offering protection for bucket bottoms and sides, dozer push arms, hydraulic excavator ski runners and sides, and crusher hoppers. But MAWPS is dramatically lighter than other protection systems or techniques, such as weld-on wear plates, and is far less labour intensive to install. “The process of installing traditional weld-on wear plates typically takes one of our customers two days,” says Zesko. “And because other systems need to be replaced three or four times a year, that adds up to a lot of unnecessary downtime.” Not so MAWPS. Instead of hammering and welding protective plates on, the MAWPS system uses a compression retainer that enables replaceable plates to be changed out with the time-honoured use of a flat bed screwdriver, reducing both downtime and cursing-a-blue-streak time. MAWPS’ plates are also about onehalf to two-thirds the weight of traditional arrangements so they won’t significantly increase a vehicle’s weight, a fact that can help reduce fuel consumption, tire wear and prevent engine damage. They are also versatile; when one side of the plates is worn, they can be turned for second use. Wear indicators tell operators when the plates should be replaced. You can’t beat MAWPS with a stick, says Gary Saumer, crusher superintendent for Lafarge, which operates an open aggregates pit near Edmonton. Saumer has been installing wear protection plates on Cats for 28 years. “I look after all the crushing, the loaders, Cats, hoes and back hoes,” he explains. “All winter, summer, spring and fall.” Saumer www.finning.ca invested in his first MAWPS system in the spring of 2008. He quickly discovered it makes it a lot easier to protect the machines, and, he adds, “The plates don’t wear out near as fast.” Saumer was skeptical of the product at first. But he wanted to protect his fleet of 988H loaders, which load hoppers and conveyor systems, and keep his 20 employees Plates that are worn out can be replaced during scheduled preventive maintenance, further decreasing downtime. The plates are made out of Cat-formulated through-hardened DH-2 steel and fitted to a permanent skeletal base plate that is made from slightly softer steel so it can be welded into place. The wear plate entirely covers the base plate and the underside of each is equipped with little recessed pockets that have been cast into the four corners of the plate to serve as indicators of when they need to be changed. It only takes about two minutes to remove and replace a worn wear plate with a screwdriver. Through-hardening is a process in which manufacturers use heat to change the molecular structure of metal. It becomes extremely resistant to abrasion and extends wear life. “You bet it can take a beating,” says Zesko. “MAWPS has a rating of 500 Brinell.” Feedback has been positive. Lafarge conducted a field study to chart the increase in life span of MAWPS and found the plates were achieving an average of more than 500 extra hours of machine use, about double that of ordinary plates. MAWPS reduces downtime, which is critical to customers and the bottom line. “We’ve done one so far this year; that was the trial,” says Saumer. “But as the others wear out, we’re going to change them, get them on our back hoes and loaders as the old protection on them wears off. It’s worth the substantial savings to us. It was three times the price to do it the other way.” MAWPS wear plates are installed with the time-honoured use of a simple flat bed screwdriver. focused and working to get the job done. Finning crews came to the worksite and installed the system for him on a 988H Cat loader in about six hours. His skepticism entirely disappeared, he says, when he found the MAWPS plates were good for about 1,400 working hours before they even had to think of replacing them. “Normally we would have to change them every 700 to 800 hours. It means substantial savings in a year’s time.” Saumer also appreciates Finning’s ongoing support. “As far as the Finning team goes, Dave and his guys have been really good. There were no difficulties, but they came out and checked with me at least once a month to see how it was going.” M AW PS skeleta l desig n a lso provides long-term wear protection for just about any truck box, including duck tails. The wear plate traps material in and between the plates, which is an extra bonus because the materials rub against each other, not the machines. www.finning.ca Winter 2008 • tr acks & treads 35 meeting the challenge photography by thea stratton A New Day is Spawning MAKING WAY: Mike Gage, right, chairman of the Campbell River Salmon Foundation, helped build a channel for Coho salmon on Vancouver Island 36 tr acks & treads • Winter 2008 www.finning.ca Logger Mike Gage’s family profited from fishing the salmon that thrived in Campbell River on Vancouver Island for over four decades. So, when the B.C. Department of Fisheries and Oceans and the Sayward Fish and Game Association identified blocked flood channels as a threat to Coho stocks in the Salmon River and Big Tree Creek area, the 68-year-old felt he had to do something. “The fish have been good to my family,” says Gage, who is also the chairman of the Campbell River Salmon Foundation. “Three of my five boys put themselves through university as fishing guides, back when fishing was really good. Our entire family has done well on the backs of fish stocks. This was a chance to put things back.” The channels in the river had been disrupted by nature and human activity, some blocked off permanently with logging debris. In the fall when water levels dropped off, fish were trapped and died. In collaboration with the B.C. Conservation Foundation, B.C. Hydro, the Habitat Conservation Trust Fund and Western Forest Products, Gage and others raised $350,000 to construct a 1.2kilometre channel that would supply a steady flow of water and create a way to open water for the fish from the Salmon River. “It was an expensive project but worthwhile,” says Gage. Northwest Hydraulics did the surveying and built test wells in 2007, got all the permissions and licences required. A crew of eight people, including one engineer and an on-site supervisor, built the channel over six weeks in summer 2008, connecting it to an existing natural flood channel. The team felled timber, loaded it out, excavated the channel close to the main river, and placed woody debris in the bottom, with a fleet composed entirely of Cat equipment: three 330s, three excavators, a D7 bulldozer, and two Cat articulated low ground pressure trucks. “The machines worked well for us,” he says. “If you’re not sure what to buy, buy Cat.” The job was done by mid-September. By late October the channel was already full of juvenile Coho, says Gage. “They’ll spend all winter in there, living on the critters that come out of the gravel and next spring they will head to sea,” he says. “Now they have a good home until they’re ready to go.” www.finning.ca Winter 2008 • tr acks & treads 37 COMPANY PROFILE: Marlo Logging Ready for Change A venerable Quesnel logging company is staying ahead by embracing industry challenges Story by Jim Stirling photography by ricardo alberto leiva EYES TO THE FUTURE: Undaunted by tough times, James Godsoe is optimistic about a changing industry 38 tr acks & treads • Winter 2008 www.finning.ca J ames Godsoe has his sleeves rolled up and is ready for whatever the future throws at him. The 37-yearold entrepreneur is the new hand on the tiller of Marlo Logging, a log harvesting company that has been an industry institution in the Quesnel region of central British Columbia for 47 years. And, while Godsoe recognizes the myriad problems facing the regional forest industry, he’s embracing the challenge of his position. He has plans to expand Marlo Logging with new equipment to ensure the company can accommodate whatever new roles and opportunities present themselves. Caterpillar equipment and Finning (Canada) service and leasing deals are already playing a pivotal role in that process. Running the company is a new experience for Godsoe. But he’s worked for the logging company since 1990, and is familiar with Marlo’s culture of performance. Brothers Bob and Don Sales began Marlo Logging in 1962. Rather than become a logging industry survivor, it’s a thriver. It has successfully navigated the comprehensive changes to log harvesting systems and forest management. Marlo has adjusted to periods of intense corporate concentration in the forest industry that today have left only the largest and most cost-efficient companies standing. Godsoe’s first assignment for Marlo was running a Cat 518 line skidder. He set up his own company in 1996 to assume the log processing and sorting functions for Marlo. He used Cat 320 and 330 carriers to help him do it. The arrangement worked well until 2006 when the Sales brothers finally decided to enjoy their well-earned retirement. And that opened the door for Godsoe. “I really wanted to own the company,” he confides. “I’m a little more broke than I was before, but you have to take a chance to get the rewards.” Godsoe’s good news – acquiring Marlo Logging – is tempered by the industry’s list of woes. Heading those is the mountain pine beetle epidemic which has killed much of www.finning.ca the lodgepole pine forest that is the heart of the Quesnel region’s timber supply. The U.S. housing market collapse has also caused lumber demand to free-fall. The reach of the American lending crisis has also extended to B.C.’s loggers, with much uncertainty afoot. And, just for good measure, the loonie’s relatively high value until recently had eroded Canada’s competitive edge in world lumber markets. Sensibly, Godsoe concentrates on what he can control. “The market will come back, and until it does you have to try and make the best of it.” And, so far, Godsoe and Marlo have been operating steadily. “Running a company is better than [counting on] wages or being closed down. It all depends on how you look at it,” he says. One thing that Godsoe is confident of is that – despite the times – he has the business capacity to grow the company. “I want to harvest more volume and update the machines,” he says. He has plans to harvest in excess of 300,000 cubic metres of wood annually, up from around 225,000. He had to decide where to begin the machine update process and start rotating some of the older pieces of equipment in Marlo’s logging fleet. First up was replacing a Cat D7 dozer with more than 24,000 hours on it. “I ended up with a new Cat D6R and that led to a three-machine deal,” recalls Godsoe. (See sidebar, page 40.) The other machines he bought were a Cat CS 570E small drum compacter for road building. The third acquisition was a new Cat 545C skidder. The call for the skidder illustrates the ever-changing complexion of harvesting systems to meet the log requirements of the large forest companies. Marlo Logging had been operating a cut-to-length lag harvesting system since 1996. It was one of the regional pioneers of the process, which involves using forwarders to pick up logs, which have been cut and limbed to specified lengths at the stump, and transporting them roadside to logging trucks. Winter 2008 • tr acks & treads 39 COMPANY PROFILE: Marlo Logging recognizes leasing equipment is no panacea. He says that a cost-effective leasing arrangement depends on the machine, the nature of the tasks it’s performing and how much use the piece is getting. “If I can make a dollar this way, I’ll be happy,” he says. Finning has been right on the ball. “They’re good to work with. They’re in town, the support’s good and the product’s good,” he says. The staff at Finning understand the products have to be backed up and the necessary parts have to be available because each hour of downtime is costly, he adds. One of his easiest decisions since taking over the company was retaining the recognizable Marlo Logging name. “I wanted to keep and honour the name,” he says. “The Sales brothers worked a long time to build up that name. They taught me a lot, and I’ve a lot of respect for them.” Godsoe is also keen on sustaining and developing the Marlo relationship with licensee West Fraser. “You have to work with the mill and try and keep them happy,” he explains. “You have to figure out how the system works. It’s been fun. I like the challenge of it.” Godsoe “It’s better to be the first to try something than the last.” West Fraser Timber Co., Marlo’s licensee, now wants about 70 per cent of its volume cut to specified length and 30 per cent cut to tree length. That, in turn, means the skidder is required to drag the long length stems from the bush to the roadside for processing and transport to the mill. The new Cat 545 has been performing admirably in that function during its first 700 hours, reports Godsoe. He acquired the Caterpillar trio of dozer, compacter and skidder on a lease basis arranged by Finning. “I told them this is what I wanted done and Finning put it all together,” explains Godsoe. “With the leasing arrangement you can be more flexible as to what you can afford,” he adds. There’s the added advantage of predictability and tax benefits. Godsoe 40 tr acks & treads • Winter 2008 reckons working with West Fraser in Quesnel is a bonus, despite the problems facing the B.C. logging industry. “West Fraser has a new sawmill in Quesnel, which is also its headquarters,” he says. “This is the best place to be.” There’s considerable speculation about what new type of forest industry might emerge from all the ills currently besieging the sector. There will continue to be a demand for commodity lumber products, say the experts. But there’s also pressure to make better use of the total forest resource with other wood products. Emerging industries or products don’t daunt Godsoe. “We’re dealing with new stuff every day,” he says. Working with hog fuels or chips and fibre for use in the developing bioenergy field are variations on a theme, which Godsoe believes he can accommodate with an open mind and commitment to work with the mill. “It’s better to be the first to do something and be willing to set the precedent than be the last,” he says. Nothing like a confident young hand at the controls. Third machine lucky Spare a thought for the logging equipment salespeople as they go about their daily toil during the industry’s unprecedented downturn. “It’s big-time competitive out there,” Russ Peterson says. He’s a Finning customer account manager based in Prince George, B.C. Naturally, he’s particularly pleased that Marlo Logging – one of the oldest log harvesting companies in Quesnel – opted for a package of three new Cat machines. They were delivered on a rental basis with the possibility of further deals in the offing. Peterson has been accommodating customers in the Quesnel region for a couple of years. He says that for a variety of reasons, during the last few years sales have slowed. That’s why the deal with Marlo’s new young owner, James Godsoe, was so significant and gratifying. But, given the times, it was no gimme. The pivotal deal was for a mid-sized dozer, primarily for road building. The decision came down to a competitor’s machine and a Cat D6R duking it out side by side on one of Marlo’s logging jobs. “The D6 did more of what I expected,” says Godsoe. He gave the nod to Finning. Deals for a new Cat 545C skidder and a CS 570E small drum compacter followed. Peterson notes the 570E is gaining increasing attention from loggers for the construction of temporary roads. The Cat compacters have demonstrated an ability to prepare the temporary logging road surface so it can extend hauling hours before being deactivated when specified by the B.C. Ministry of Forests and Range. All of Marlo’s new Cats are working on a leasing deal organized and supported by Finning. Peterson predicts other logging contractors will pay more attention to the leasing option. It offers fixed cost benefits and might prove the best option, he thinks, depending on each machine’s operational circumstances. It’s a buyers’ market out there right now and likely to remain that way for a while. “What we’re saying is that we at Finning want your business,” declares Peterson. “Look to us before you make a decision.” www.finning.ca www.finning.ca Winter 2008 • tr acks & treads 41 Count On Us Service to the North Bound for the North in 1980, Caterpillar equipment is loaded on a barge in Vancouver for an 1,800-kilometre trip via sea and rail to the Yukon. Finning chartered the barge to carry 22 tractors, loaders, scrapers and excavators weighing 807 metric tonnes and valued at more than $6 million to resource companies in the Whitehorse and Dawson City areas. The week-long trip covered 1,644 kilometres on water to Skagway, Alaska, where the shipment was transferred to a special 19-car White Pass & Yukon Route train for the 178- kilometre trip to Whitehorse. 42 tr acks & treads • Winter 2008 www.finning.ca REMANUFACTURED OR REPAIRED? It’s Your Choice. Cat® Reman or Repair options for your machine control and guidance systems. Keep your control and guidance system—and your entire operation—on course with one of two affordable repair options from Caterpillar. Either way you’ll get Cat® quality, Cat performance, and Cat reliability with minimal downtime. Look to the world’s largest, most responsive support network to help you navigate the toughest work. For more information about repair options for your AccuGrade™, AQUILA™, Computer Aided Earthmoving System (CAES), or MineStar™ control and guidance system, call your Cat Dealer or visit www.cat.com today. 1-888-finning | finning.ca When the going gets tough... We are faced with unprecedented times in the Forest Products industry. Your equipment decisions are more important than ever. So when trouble strikes, do you patch it, fix it right or replace the whole thing? t1BUDIJOHJUFYQPTFTZPVUPDBUBTUSPQIJDGBJMVSF but is the lowest cost. tFixing it right may take time that you don’t have. tReplacing it is easy, but can you make the payments? High risk vs. down time vs. cash flow… What is the answer? Finning (Canada) can help you find the best solution for your business. Certified Rebuilt $PNQPOFOUT.BJOUFOBODF"HSFFNFOUT1MBOOFE Component Replacements or Certified Rebuilds are POMZBGFXPGUIFQSPHSBNTXFIBWFBWBJMBCMFUP help you make the right choice. Call your Finning representative today. There are no simple solutions. Only intelligent choices. 1-888-finning | finning.ca
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