13 INTEGRATED ANNUAL REPORT 2022 the co-op cost-per-tonne numbers efficient, cannot be understated. If we had sold 200 000 tonnes, or even 100 000 tonnes fewer, we would have faced the only option which would have been to reduce timber prices to members by between R30 to R50. As an aside, the handling, scheduling, receiving of rail and road trucks carrying two million tonnes poses its own operational challenges. The inevitable congestion at our mills as shipping deadlines loom will continue to receive attention into the new year. We continuously need to look at the viability of solutions that incorporate how we schedule deliveries in terms of time-windows, as well as the need for holding facilities. Ultimately, perhaps, a combination of multiple innovations is required, and we will use the new year to iron out solutions to improve the rateable arrival of trucks at mills, drive up efficiencies, and reduce vehicle congestion, at NCT facilities. By far the largest challenge that has thrust its way into our daily operational lives is, without a doubt, the impact of a poorly performing state-owned rail and port authority detrimentally affecting access to, and operations within, the ports of Durban and Richards Bay. State-owned enterprise issues are well-known and receive regular coverage in our local media. I want to assure members that, as an organisation, we are doing everything to make a favourable impact on these challenges. Other than the daily, weekly interactions with senior rail and port executives and operational staff, we continue to strive to have more control over our own destiny through involvement/lobbying for private participation on key rail lines, as well as on the berths used to load wood chips in our ports. NCT is doing this as part of an industry collaboration through Forestry South Africa (FSA) and has also partnered with other stakeholders in submitting a high-level proposal to the port authority to take over maintenance and cleaning of the berth used by NCT in Richards Bay. NCT staff continue to participate in forums where our industry can have a voice and generate change. In 2022 we will see whether our efforts will deliver any favourable considerations for the industry proposals. Regardless, dealing with both rail and port authorities remains the largest challenge we face for the next few years. Other than the obvious supply chain challenges experienced in 2021/22, there are some very positive aspects to reflect on as we move into 2022/23: • We have again sold almost all the timber our members have for the new year. Our existing customers have requested in excess of the GST and we will do what we can, but within the constraints we know we face from the supply chain. We do however predict another year of two million tonnes sold. • We continue to look at alternative market destinations – in 2021 we sent shipments to Portugal and this year other European countries remain on the radar. • We received very positive, albeit moderate US Dollar increases in both Chinese and Japanese markets; at a time where other countries pricing remained flat. We see this as an indication of the high regard in which we are held, I take this opportunity to congratulate staff for their tenacity and resilience throughout another tumultuous year and know that we can count on their ongoing commitment to our members and our organisation into another year filled with unknown trials and challenges. DANNY KNOESEN | GENERAL MANAGER
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