Business South March 2021

64 | TIMBER INDUSTRY Port Blakely Richard Loader US firm right at home in New Zealand A t the heart of Port Blakely’s 26-year forestry operation in New Zealand is a successful business built upon family values and recognition of the absolute impor- tance of business relationships. Port Blakely is a US-owned intergeneration- al family business that stems back 150 years. Taking its name from a small community in Bainbridge Island just off Seattle, the compa- ny’s family origins and its reason for being in New Zealand offers insight into the value it places on relationships, along with its focus on three interconnected element—economic, social and environmental. The family’s first foray into forestry was around the turn of the 20th century when it invested in timberlands in the Pacific North- west. In the late 1970s/early ‘80s a strong environ- mental move in the US resulted in the Endan- gered Species Act and one of the first species it sought to protect was the Spotted Owl. Overnight the US Federal Government nationalised significant areas of private timberland - a common habitat for owls - and a precursor to more environmental controls in the US. With US Federal forests locked up harvesting was stopped, with a significant reduction from private estates. With supply tumbling, the export price went through the roof and a lot of private timberland owners found themselves flush with cash. Concerned about further controls and want- ing to diversify Port Blakely undertook a global scan for forestry opportunities. Drawing up a matrix of ten possible countries in the top margin, each country was measured against a list of criteria that included English speaking, ease of business, lack of corruption, well-established forestry, advanced forest research and good growing sites. After visiting all 10 countries, New Zealand bubbled to the top and in the mid ‘90s a sig- nificant piece of production radiata forest was purchased in Matakana Island, in the Tauran- ga Harbour. The family’s original plan was to replicate what they had in the US, which was Douglas Fir but New Zealand was and remains very radiata-centric. Over the next decade new forests were established in both the North and South Islands planting predominantly radiata in the North with Douglas Fir planted extensively in the South. In the early 2000s, two South Canterbury ex-state forests were purchased from Ngai Tahu in Geraldine and Herbert, followed by Waimate five years later—a conscious strategy to purchase production forestry that was gen- erating revenue, given Douglas Fir’s 40-50-year investment cycle. Since the mid 2000s Port Blakely’s has continued to acquire land with its most recent purchase of 3000ha in South Otago. Total land holdings across both North and South Islands now encompass 38,424ha, of which the net productive area is 28,807ha including 1840ha Forestry Right land. The majority of landholdings are in the South Island—predominantly Douglas Fir plantations. Port Blakely’s operation encompasses three key areas, growing, harvesting, marketing and selling logs from its own land; harvesting and marketing services to other smaller forest owners—particularly farmers; and carbon forestry. With its focus on Douglas Fir, Port Blakely is the second largest freehold carbon forester in New Zealand. Phil Taylor, Port Blakely’s Managing Director NZ Forestry, says the family’s focus on the im- portance of environmental issues has meant it is well positioned to respond New Zealand increasing environmental focus. “Blakely’s whole purpose is to create a healthy planet with the business premised on three key areas - economic, social and envi- ronmental - all of which are interdependent upon each other. “You cannot make contributions to society or look at environmental enhancement unless you have the funds to do it—that’s the impor- tance of the economic leg. “You cannot manage a forest unless you have the community and society on your side—that’s the social license to operate. “A forest is a system. It’s not just a bunch of trees and so its important you recognise the environmental issues that sustain the forest— soil stability, water quality, the animals that live in the forest—they’re all an integral part of the forest system. “If you want to be truly successful, sustaina- ble and resilient you must pay attention to all three of those factors.” Phil says Port Blakely is a long-term invest- ment business placing emphasis on invest- ment in communities and relationships. “Forestry doesn’t have an automatic right to occupy the rural landscape, it has to earn that right and it has certain responsibilities to the communities. “Port Blakely recognises that it’s a privilege to own land in New Zealand, it’s not a right and its a privilege to be part of and work with rural communities.” Phil Taylor: “You cannot make contributions to society or look at environmental enhancement unless you have the funds to do it.” Quality Roundwood Suppliers Proud partner of Port Blakely Phone: 03 327 8843 Email: sales@sutherlandtimber.co.nz TPT ARE PROUD TOWORK ALONGSIDE AND SUPPORT PORT BLAKELY AT TPT, WE PRIDE OURSELVES ON TAKING CARE OF THE SMALLEST DETAILS, WHILE OBSESSIVELY PURSUING THE END GAME. That is, moving quality logs and lumber to more destinations, more efficiently, achieving more value for our clients. For more information visit www.tptforests.com CONTACT MARK E: mark@tptforests.com DDI: +64 7 928 4265 M: +64 21 466 349