ANALYSIS OF TWO ALTERNATIVE HARVESTING SYSTEMS IN PENINSULAR MALAYSIA: SENSITIVITY ANALYSIS OF COSTS, LOGGING DAMAGE AND BUFFERS

Abstract

An economic study of two alternative timber harvesting systems was carried out in Peninsular Malaysia to evaluate and compare existing and improved harvesting systems in terms of their costs, efficiency and productivity. The results showed that distance and diameter² were significantly related to delay-free cycle time in felling in Jengai and Tembat, the two areas studied with contrasting harvesting systems. In skidding, distance and number of logs were significant in Jengai, while distance and diameter were significant in Tembat. Logging cost excluding cost of conservation, premium and royalty under the new system was RM 50.89 m⁻³ or 4% lower than logging cost under the old system of RM 52.9 m⁻³. Under average conditions, it takes 0.31 h to fell a tree under the new system compared to 0.39 h (simulated) under the old system. This suggests that the improvement made in the Jengai Forest Reserve has increased productivity of felling. In skidding, it takes about 0.55 h to travel one round trip under the new system compared to 0.77 h (simulated) under the old system. This suggests that the improvement in road construction in Jengai has increased productivity of skidding. Under average conditions, the costs of felling and skidding were lower under the new system as compared with the old system (simulated). Simulating the new system, the cost of felling and skidding were slightly higher as compared with the old system. The present value of cost of damage discounted at 4% discount rate was RM 3.62 m⁻³ compared to RM 5.02 m⁻³ under the old system. The Present Net Worth (PNW) of the new system with buffer cost was RM 577.07 m⁻³ compared to PNW of the old system of RM 566.53 m⁻³ without buffer cost. This shows that the reduction in damage to the residual stand has increased the net future harvests as shown by the higher PNW of the new system. The study also shows that it is more economical to install the buffer zone in the new system based on the higher PNW of the new system.