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WhatWood Blog Forestry & Logging Investlesprom prepared for axle load limit, intends to decrease log purchase prices in NW Russia

Investlesprom prepared for axle load limit, intends to decrease log purchase prices in NW Russia

25 April 2014 ` 13:54  

The largest enterprises of the Russian timber industry holding Investlesprom have stocked wood resources sufficient for smooth operations during the spring impassability of roads, the press service of the holding reported.

In the spring, regional authorities traditionally impose limits on axle load of vehicles due to the spring thaw. In order to operate smoothly, companies have to create stocks of raw materials.

In Karelia, the roads are closed from 14 April to 31 May, and navigation will open approximately on 20 May. Segezha PPM and Segezha LDK located in the region created the wood reserves of 70 thousand m3 and 26 thousand m3 respectively by April 1. Raw materials were shipped equally by trucks (from Karelia) and by railway transport (from Vologda, Arkhangelsk, Novgorod, Tver, Leningrad regions and Karelia). After the roads were closed, timber supplies continued mainly by rail. Until the end of May, Segezha PPM will receive 200 thousand m3 of raw wood, including 100 thousand m3 from own logging units.

In the Vologda region, the holding has created for the first time winter warehouses at the place of delivery of round timber. River terminals now dispose of about 70 thousand m3 of timber intended for Sokolsky DOK. This volume will be shipped from May to June and will also allow for the reduction of sawlog prices in the regional market.

In the Arkhangelsk region, the heavy vehicle traffic is closed from April 17 to May 24, and the raw materials for sawing production at Onega LDK will be supplied mainly by rail. In addition, own logging units of Investlesprom in the region will continue to supply timber by trucks using technological roads. The timber stock at Onega LDK now exceeds 50 thousand m3.

In the Kirov region, restrictions on the roads are effective from April 15 to May 14, plylogs for Vyatka plywood mill are also delivered by railway. Timber stock of the factory has by now reached 60 thousand m3.

“The timber stocks we created will not only allow us to pass confidently the period of spring mud, but also to maintain reserves by the beginning of navigation period. Due to this, already in May we will have a good argument to contain the growth of purchase prices for timber. Since June we are planning to lower prices significantly for pulpwood delivered by trucks and railway. Additionally, strict quotas for delivery by rail will be introduced,” said the Director, Wood Supply of Investlesprom Boris Tarasyuk.

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