Canada-wide recruitment drive hits the highway
Transcription
Canada-wide recruitment drive hits the highway
Cat and Finning build a better blade edge Watch your back! How to avoid back injuries SPRING 2006 www.finning.ca 75,000 Hours Owner, machine and mechanic a perfect match B.C. Mining Back on Track The Riverman Contractor thrives on Cat precision THE WANTED TOUR Canada-wide recruitment drive hits the highway Non-deliverable mail should be directed to: #201, 10350-124 Street, Edmonton, AB T5N 3V9 Canadian Publications Mail Product Sales Agreement #40020055 30 Departments 4 The Finning Focus 6 Groundbreaker Wanted Tour hits the road A hairy situation; New Cats on the block; Natural gas savings; Up and gone 10 The Tech Report Cat and partner create innovative power plants 11 Yellow Iron New products and services from Finning 20 Safety First Watch your back and keep the pain at bay 27 Yesterday/Today Caterpillar’s first true off-highway truck 28 Meeting the Challenge The (ice) road to diamonds at the Ekati mine 34 Field Test Building a better blade edge 36 Industry Highlight Cautious optimism in the oilsands 38 CONTENTS SPRING 2006 Features Industry Report 12 River Keeper 21 B.C. Mining Nahanni Construction’s Dean Price keeps on an eye on the environment as well as the bottom line 16 In It For The Long Haul Thanks to preventive maintenance, and his mechanic, Richard Bedier’s 30-year-old wheel loader runs like new 30 All In The Family A team approach to farming and flying is paying off for the Snethuns 38 RUE Grit Finning’s recently amalgamated Rental and Used Equipment division gives customers many options 22 Digging Deep With exploration expenditures soaring and new mines opening throughout the province, British Columbia’s mining industry is climbing out of the slump 24 Coal Front Western Canadian Coal’s Wolverine mine is helping revitalize the town of Tumbler Ridge, with a little help from their friends at Finning 4 21 41 Bill’s Business Bill gets some peace of mind with a Customer Support Agreement 42 Count on Us Hands-On Leadership www.finning.ca ON THE COVER GREG MCNEILL Human Resources Director, Finning (Canada) EDMONTON, ALBERTA PHOTOGRAPH BY CURTIS TRENT Spring 2006 • TRACKS & TREADS 3 The Finning Focus The Wanted Tour: recruitment drive hits the highway BY GREG MCNEILL Last month, Finning kicked off its “Wanted Tour.” The Tour, which trumpets the battle cry “Finning wants you to join our team,” is a recruitment program that will see us travel throughout Western Canada and beyond in search of skilled employees to meet our medium and long-term needs. Aboard a customized Finning Hummer, the Wanted Tour team won’t just visit the major centres; it will also focus on several smaller communities in search of folks who want rewarding careers with a company whose 70-plus year heritage puts people and relationships at the heart of the business. Of course, it’s the opportunities our customers create that fuel the need for additional employees at Finning; undoubtedly, you’ve got a recruitment campaign of some sort underway yourselves. For our part, we’re looking for nearly 400 more employees to join our team this year alone – most of them heavy equipment technicians – just to keep pace with business growth in the oilsands, the rebirth of mining in northern B.C., and economic development in other sectors throughout our territories. The Wanted Tour also responds to longterm projections, or what some are calling the “demographic time bomb” – the alarming gap between the number of young people entering the workforce and those retiring. Back in 1981, when you and I were scrambling for our first jobs, there were 3.7 entrants to the Canadian workforce aged 20 to 34 for every person hitting 55. In 2001, that number dropped to just 2.7, and it continues to decline as birthrates stagnate and boomers head for the golf course. According to the Conference Board of Canada, our 4 TR ACKS & TREADS • Spring 2006 greying workforce will create a shortage of up to one million qualified workers in the next decade, which translates into a shortfall of 100,000 workers in Alberta, which, according to statistics, is the greyest province of them all. The same goes for the accelerating B.C. economy – the value of planned and proposed construction projects now stands at $83 billion, up 20% from just six months ago. Reports indicate that some projects are already facing delays due to the labour shortage, while over in the mining industry, the Globe and Mail notes the “staggering” need to recruit more than 80,000 new employees for operations across the country in the next decade. That’s because 40% of the people who work in the mining sector are expected to retire in the next 10 years. While it’s definitely pedal-to-the-metal in terms of the recruitment area, it’s true that other creative employee development approaches are required to bridge the gap. At Finning, we launched a unique partnership with Caterpillar and the Northern Alberta Institute of Technology three years ago to develop our own homegrown crop of Caterpillar-certified heavy equipment technicians. Some 23 students have now graduated through the ThinkBig program and are currently working at Finning branches throughout Western Canada. Another 43 students are enrolled at various stages of the two-year program. I’ll have information on ThinkBig to offer while I’m on the road with the Wanted Tour. So please encourage the young people you know to come check us out. Through print and radio advertising, we’ll announce where GREG MCNEILL, HUMAN RESOURCES DIRECTOR, FINNING (CANADA) we’ll be in your community. As we make our stops, we’ll provide an array of information about the company, and interview qualified heavy equipment technicians, automotive mechanics, potential apprentices, parts and support personnel on the spot. Now here’s the sales pitch: why would someone you k now want to work for Finning? I’ll let 17-year veteran partsperson Royal Martin from Campbell River, B.C. give you his view. “I do believe the grass is still much greener here at Finning,” he says. “First, our company’s attitude towards safety is second to none and the resources available to help me perform my job are always improving, as is our company’s reputation in the industry and the community. But I think the main reason I enjoy working at Finning is the people. Employees that I have had the pleasure of working with over the years usually have a great attitude both professionally and personally.” Don’t want to wait for the Wanted Tour to get your application in? Give me a call at 1-888-FINNING or e-mail me gmcneill@finning.ca today. www.finning.ca SPRING 2006 Volume 46, No. 1 PUBLISHER Ruth Kelly [email protected] ASSOCIATE PUBLISHER Joyce Byrne [email protected] EXECUTIVE EDITOR Jeff Howard jhoward@finning.ca EDITOR Dan Rubinstein [email protected] Letters & Feedback YOU WANTED TO KNOW about the Count On Us picture on page 42 of the Winter 2005 issue. It is the opening of Endako Mines. The people were brought in by bus and they are the ones on top of the hill looking into the pit. Also, you will notice the box on this truck is made of aluminum. Endako Mines at that time purchased l3 769As and I spent one year as a resident there. Regards, Bill J. Davis Kamloops, B.C. ART DIRECTOR Jennifer Windsor [email protected] ASSOCIATE ART DIRECTOR Vanlee Tran [email protected] DESIGN & PRODUCTION Gunnar Blodgett CIRCULATION COORDINATOR Esme Friesen [email protected] ADVERTISING REPRESENTATIVE Anita McGillis [email protected] CONTRIBUTING WRITERS Robin Brunet, David DiCenzo, Stewart Duncan, Will Gibson, Keith Haddock, Ross Henderson, Gene Kosowan, Jim Stirling, Shannon Sutherland, Bill Tice, Kerry Tremblay CONTRIBUTING PHOTOGRAPHERS AND ILLUSTRATORS Sylvie Bourbonnière, Stewart Duncan, Glen Durrell, John Gaucher, Keith Haddock, Jayson L. Hencheroff, Darrell Lecorre, Deon Nurkowski, Curtis Trent 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. #201, 10350-124 Street Edmonton, Alberta T5N 3V9 Phone: 780-990-0839 Fax: 780-425-4921 Contents © 2006 by Finning (Canada) No part of this publication should be reproduced without written permission. www.finning.ca KEEP UP THE GOOD WORK. Y’all have a top-notch publication here. I’ve been driving the iron for 30-plus years, and there is no doubt in my mind – Cat is the best! In the area of customer service, nobody else even comes close. Your magazine helps me keep on top of what’s out there, and when asked what we need to get the job done, I’m a lot better informed, and this usually ends up with a call to our local Finning branch. Dennis Kelly 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, its stories, its columns, its look. Tell us how we can improve the magazine and make it a more interesting read. Send your comments to executive editor Jeff Howard by e-mail 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 Spring 2006 • TR ACKS & TREADS 5 GROUNDBREAKER GROUNDBREAKER NEWS & REVIEWS BY DAVID DICENZO A Hairy Situation n Every year, Dan Bustin does something strange to his head to honour his late friend Don Jinda. Bustin and Jinda worked alongside each other for a dozen years at Garnet Contracting in Campbell River, British Columbia, a road-building company owned by Dan’s father, Al. When Jinda passed away after a battle with colon cancer in 2001, Bustin, affected by the big void in his life, felt compelled to do something to remember his buddy. So he started messing with his hair. “Don was like a big brother to me,” Bustin says about Jinda. “He helped me out a lot at work. When he passed away, that got me involved with Cops For Cancer.” Like many Canadians across the nation who participate in the creative charity fundraiser, Bustin shaves his head annually to raise money for cancer research. The 46 year old, who still works at Garnet but also owns a logging business, Medara Contracting Ltd., gets right into it, too, normally colouring his hair in the weeks leading up to the shave just to have some extra fun. This year he went a step further – he shaved a Cat logo into the back of his noggin, complete with the trademark company colour dye job. “In previous years, I’d always coloured my hair different,” Bustin says. “Dick Dueck, my Finning rep, asked, ‘What colour are you going with?’ I said I wasn’t sure.” That’s when Dueck suggested the Cat look and offered to contribute a nice donation for the fantastic cause. With help from Finning and employees at the local Campbell River branch, Bustin raised $1,500 this year, almost double his previous best, making the strange looks he received in the six weeks that he sported the unique ’do easy to take. Even without the eye-catching locks, Bustin is a pretty recognizable face around Campbell River. He started Medara Contracting Ltd. three years ago and, since 1988, has worked for his dad at Garnet. That’s where his fascination with the Cat brand began. Al got his first Cats 25 years ago, and both generations of the family have stayed loyal to the yellow ever since. “When I was working for my father, everything was always Cat – even the hoses, fittings and oils,” says Bustin, who owns his own Cat 330 excavator to fall and process trees. You have to be committed to put a company logo on your head. And with the memory of his old friend Don motivating him, you have to figure Bustin will come up with something even wilder next year. Natural Gas: Convert and Prosper In a world that’s becoming increasingly aware of the long-term effects of greenhouse gas emissions, it makes sense to burn cleaner fuels. And if you run a fleet of light-duty trucks, that wise environmental decision can also help you save a few bucks. Last summer, Natural Resources Canada announced an extension of the Natural Gas for Vehicles Market Transformation Pilot Project, providing $1.855 million in funding to help promote the use of natural gas in commercial fleets. Owners can receive up to $3,000 for con- 6 TR ACKS & TREADS • Spring 2006 verting an existing gasoline vehicle into a natural-gas vehicle (NGV), which can run on either conventional gasoline or natural gas. NGVs produce 21% fewer greenhouse gas emissions and significantly fewer airborne pollutants than vehicles that use gasoline. Currently, no original equipment manufacturer in Canada builds a light-duty truck with a natural gas system already installed. “The program offers a great opportunity for fleet owners,” says Alicia Milner, executive director of the Canadian Natural Gas Vehicle www.finning.ca GROUNDBREAKER New Cats on the Block Need more power but concerned that will mean a sacrifice in comfort? Need more versatility but worried that it could cost you some juice? Caterpillar’s new 319C LN excavator and 904B compact wheel loader ensure that neither of these conundrums will come to pass. Dirt, not problems, is all you’ll dig up. The 904B replaces the 902 model and proves the adage that bigger isn’t always better. At just customers, the 319C LN is the latest Cat in the 20-tonne class of excavators. The new machine combines the upper structure of a 318C (the model it replaces) with the lengthier undercarriage of a 320C LN, translating into improved stability and lifting capacity. In fact, the overthe-front lifting capacity for the 319C LN is more than 20% greater than the 318C. The hydraulic system is also at the top of the class, so expect 2.4 metres tall with a bucket that’s 1.8 metres wide, the efficient 904B provides the versatility of a skid steer loader, while maintaining the power, comfort and fuel economy of a wheel loader. Using a mechanic or hydraulic quick coupler, the new Cat can handle a wide range of skid steer loader and wheel loader work tools, all with a design that makes life easy for the operator. While the Z-bar linkage offers superior digging capabilities, the short back end, compact dash and large floor-length windows allows for a full view of the work area with clear site lines of the actual tool. And when it comes to working in tough terrain, the 904B delivers Cat reliability, durability and efficient operation. Designed specifically for utility and rental high performance, controllability and versatility. A range of boom/stick options and a full line of jobmatched buckets and Cat work tools (including quick couplers, hydraulic hammers, demolition/ sorting grapples and multi-processors) means the world is your oyster in terms of applications. But what makes operators drool is the Tool Control Pro option. This feature allows you to select the flow/pressure settings for up to five hydro-mechanical work tools without having to leave the spacious C-Series cab. Sliding switches on the joysticks provide smooth control for the tools, reducing operator fatigue, while oil change and greasing intervals have been extended. Power, comfort and versatility – the newest pair of Cats offer all three in one dynamic package. Alliance. “It introduces a new fuel source. By having a dual-fuel vehicle, you can take advantage of whichever fuel source is best.” It’s a win-win situation for all involved. Even though the price of natural gas has increased of late, Milner calls it “short-term pain,” expecting it to drop to the point where it will make economic as well as environmental sense to convert. Natural gas has traditionally enjoyed a significant cost advantage versus gasoline, she says, which means vehicle owners can recover their initial investment in a relatively short time. “There are two sides to it for many companies – economics and environment,” she says. “Some have to balance both.” The money available for the project comes from the $9.9-million Natural Gas for Vehicles measure that was a component of the 2003 federal budget. The project is open to Canadian corporations and organizations that operate vehicles in a high-fuel-use fleet, such as municipal/provincial fleets, utilities fleets and private urban fleets, as well as contractors and small business operators. Go to www.ngvcanada.org for details. www.finning.ca Spring 2006 • TR ACKS & TREADS 7 GROUNDBREAKER Gerry Baron is a man who knows what he likes. And for the past 20 years, that’s meant climbing aboard his trusty T70B Cat forklift to haul stacks of plywood. Baron and the Cat have something in common – durability. While the soon-to-be 65 year old has been a fixture at Kelowna Lumber and Kelowna Plywood for nearly 35 years, the T70B has put in a few hours, too. About 70,000 of them. Which begs the question, who can you rely on more, Gerry or the Cat? “The forklift,” the affable Baron says with a smile. The crew at the mill might beg to differ. Baron recently retired after three and a half decades of service, the last 20 of which were spent working specifically on the Cat. It’s been a gem, and like the guy who runs it, pretty much trouble-free. “I figure it’s been serviced over 100 times,” says Baron. “We had a little problem when it was brand new and the cooler leaked one time. But we’ve never had to work on the transmission. “If I were to take a picture of it,” he adds, “it would look great.” Baron admits that he’s a bit of an adventurous soul. Growing up north of Edmonton in the Barrhead area, like many Albertans he could have ended 8 TR ACKS & TREADS • Spring 2006 up in the oil and gas business. But instead he travelled west and landed the job in Kelowna. Baron started out on the sawmill side of the Tolko Industries-owned operation but says he eventually moved over to the plywood mill, where he found both his niche and a work buddy. “I like the little guys,” he says about the T70B. Baron is openly nostalgic when it comes to the machine he’s been operating since the days when Chilliwack’s original lineup still played gigs together. Though he’s now moved on from the job, he recognizes that different generations of workers have varying opinions on which forklifts work best. “The younger fellas prefer the new ones,” Baron says, referring to the T70D model. “The older hands prefer the T70B – they like that hydrostatic transmission.” To remember his time at Kelowna Plywood, Baron was recently given a very appropriate parting gift: a black wood plaque sporting, what else, a Cat forklift. It’s a source of pride for the reliable Baron and a constant reminder of the good work both he and his Cat did. “I’m ready for retirement but I’m gonna kinda miss the little problems we had,” he says. “The troubleshooting, that made things interesting. And I’m gonna miss the fellas – the jokes, the kidding and the ribbing. It’s been a really good place to work.” www.finning.ca PHOTOGRAPHY BY GLEN DURRELL Up, Up and Away GROUNDBREAKER By the Numbers Percentage of lodgepole pine trees expected to fall victim to the mountain pine beetle infestation by 2008 and Number years it takes 2013 respectively: ofmountain pine beetles 50 and 80 Age of the school nurse who will coordinate “fake tanning lunch-hour lessons” for Scottish school children as a healthy alternative to tanning beds: 33 to chew an area the size of New Brunswick: 1 Ratio of cost to clean up chewing gum compared to the cost to buy it: 3 to 1 Rank of “negative media reports” among the biggest issues facing tanning salons: 2 Percentage increase in the risk of developing melanoma associated with regular tanning bed use, especially in women between the ages of 20 and 29: 55 Number of years chewing gum manufacturers have been working on developing a biodegradable chewing gum: Biodegradable chewing gum products now on the market: 18 www.finning.ca 0 Percentage of oilsands workers expected to retire by 2010: 20 Percentage of Canadian mining industry workers expected to retire in the next 10 years: 40 Spring 2006 • TR ACKS & TREADS 9 The Tech Report Fuelling the Future Imagine living near a power plant that chops down your fuel bill, makes no noise, and doesn’t billow any pollutants or greenhouse-gas emissions into the air. Sound like a pipe dream? It’s actually closer to reality than you might think, thanks to a 2002 agreement between Caterpillar and FuelCell Inc., a manufacturer of high-temperature fuel cells for electric power generation. In the last couple of years, the companies have worked together to create an energy-efficient plant in Westerville, Ohio, another at the Caterpillar Technical Center north of Peoria, Illinois, and they’re currently working on a third plant for a sewage treatment facility in Los Angeles County. Once fully operational, the Westerville plant will produce 250 kilowatts of power, which is enough to power roughly 180 homes. The Peoria plant, meanwhile, allows Caterpillar to demonstrate some of the commercial applications of clean, efficient power to its customers, dealers and development engineers. “This project represents an important step in the use of stationary fuel cells to provide power to local electrical systems,” Rick Rathe, marketing manager for Caterpillar’s Power Systems Marketing Division, says about the Westerville endeavour. “As the world leader in distributed power generation, we see a growing need for all of Caterpillar’s broad range of power generation products.” According to Steve Eschbach, FuelCell Inc.’s Director of Investor Relations and Communications, Caterpillar’s involvement is a win-win situation. “Cat distrib10 TR ACKS & TREADS • Spring 2006 utes power generation and they do engine technology, so they have experience in those areas,” he says. “They also have a lot of customers who use the grid for power. Our products bring to the table a form of ultra-clean generation. Because the fuel cell can generate electricity without combustion, it’s very clean. And since we have 45% to 50% electrical efficiency, versus anywhere between 25% to 40% for combustion-based technologies, we can provide lower operating and maintenance costs.” Unlike most plants, which use internal combustion to generate electricity, fuel cells act like giant, continuously operating batteries. They run on natural gas, which flows into the module where a chemical reaction transforms the gas into hydrogen. The hydrogen atoms are filtered through a membrane that releases ionic particles, creating electricity. The heat involved in the process, registering at 1,200 degrees Fahrenheit, also produces steam – another positive energy byproduct. “You don’t need pure hydrogen for these fuel cell plants to operate, so they’re safe,” says Eschbach. “The internal reform- ing of hydrogen from natural gas and the electrochemical electricity generation takes place simultaneously within the same module. One is heat-producing and the other is heat-taking, and they offset one another.” The plants also don’t need to disrupt the aesthetics of their surroundings, either. A FuelCell plant can be as small as nine feet by 28 feet. Moreover, unlike solar or wind power sources, fuel cell plants can be built in areas where wind turbines and solar panels can’t be installed. They also don’t need large power grids, avoiding the potential for massive power outages, like the blackouts that plagued parts of the continent in 2003. A fuel cell can easily provide energy for a small community. Fuel cells may seem like a novelty, but they’re hardly new technology. In the 1830s, when internal combustion engines were being adopted for factories, Sir William Robert Grove created a hydrogen cell prototype, which attracted little more than curiosity. Today, with higher energy costs and environmental concerns grabbing headlines, Eschbach believes fuel cells have a bright future. “As higher fuel prices reflected in grid-delivered power 2 and as your electric bill continues to rise,” he says, “there’s going to be a point where our form of baseload ultra-clean power is going to make a lot more sense to a lot more customers sooner than later.“ Eschbach even sees a potential for fuel cell plants to operate in Western Canada. “I assume on-site power generation is not from oil, but from natural gas, which I imagine is high in that neck of the woods,” he says. “So if power plants operating on natural gas run with more efficient onside baseload power-generating technology, then that should provide more opportunities for lower operating costs.” www.finning.ca ILLUSTRATION BY SYLVIE BOURBONNIÈRE WHAT’S THE CONNECTION BETWEEN CATERPILLAR AND ALTERNATIVE ENERGY? GENE KOSOWAN LOOKS AT CAT’S LINK WITH FUELCELL INC. AND THE INNOVATIVE POWER PLANTS – AND POTENTIAL – THE PARTNERSHIP HAS PRODUCED YELLOWIRON New Products and Ser vices from Finning www.finning.ca Improve safety and productivity with AccuGrade There’s no need to dig too deep, now that you can take advantage of all the benefits of AccuGrade GPS on your Caterpillar 345, 365 or 385 hydraulic excavator. With AccuGrade, you’ll know where your bucket tip is in comparison to the jobsite plan; there’ll be no need for survey stakes or a grade checker in the trench. Talk to your Finning sales rep about the AccuGrade advantage for your tractor, motor grader... and now, your hydraulic excavator. Meeting regulations, exceeding expectations Caterpillar’s ACERT Technology is the pioneer when it comes to meeting emission regulations. This year, engines in the 175 to 750 horsepower range fall under Tier 3 emissions regulations. With ACERT, Cat earthmoving machinery will meet these requirements. ACERT integrates new technologies with existing Cat systems, offering you clean efficient combustion that won’t prematurely degrade parts. Your one-stop shop for hydraulic cylinders We stock them, repair them and can even make them. With over $17,000,000 in hydraulic parts inventory, Finning has the resources to either repair or replace your damaged cylinder even if it isn’t the Caterpillar brand. A number of our 11 cylinder repair shops can custom build hydraulic cylinders to your specifications, even in cases where an original cylinder is damaged beyond repair and a replacement is not readily available. 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. Spring 2006 • TR ACKS & TREADS 11 COMPANY PROFILE: Nahanni Construction Ltd. PHOTOGRAPHY BY JAYSON L. HENCHEROFF Dean Price 12 TR ACKS & TREADS • Spring 2006 www.finning.ca Nahanni Construction’s Dean Price keeps an eye on the environment as well as the bottom line River Keeper BY JIM STIRLING T he Heritage River Trail snakes along the Nechako and Fraser rivers, encircling parts of busy downtown Prince George in the heart of British Columbia. Residents and visitors are passionate about the trail. In all four seasons, it’s a peaceful sanctuary enjoyed by legions of hikers, cyclists and dog walkers as well as lunchtime brown baggers. This past December, however, parts of the trail system were also construction sites. Immediately below the trail, snuggled close to the bank of the Nechako River, a Cat 315L excavator was busy at work. The machine was delicately positioning rock on a carpet of protective synthetic fabric. Right next to it was the river, its surface sequined with swirling mini-icebergs. The 315L and other smaller Cat excavators, including a Cat 308C, were charged with armouring the riverbank to protect vulnerable areas of the trail from further erosion from the fastflowing river. The equipment, and the responsibility for running it, belonged to Dean Price, who owns Prince George-based Nahanni Construction Ltd. Repairing and upgrading the city-owned trail system is the kind of construction project Price relishes. It requires a thoughtful, planned approach with environmental protection front and centre. “We’ve worked a lot around streams and rivers – it’s something we enjoy,” says Price. “There are so many different ways to do things efficiently with construction equipment. And it’s always important to keep down the environmental impact as much as possible.” It certainly was on this job. www.finning.ca The trail rehabilitation work involved two at-risk sections of the Nechako riverbank, one 90 metres long, the other 245 metres. The work was undertaken in winter when water levels are lower. River flows on the Nechako fluctuate considerably. They’re controlled by Alcan Inc., the aluminum and power producing company, which operates a dam and reservoir upstream. Outflow from the dam is regulated, depending largely on water levels in the reservoir. The Cat 308C, with its zero tail swing, works right on the trail itself, within inches of the fence and riverbank, resloping the bank and helping to install the erosion control blankets. It was tailor-made for the tight, narrow operating conditions of the riverbank, says Price. He mobilized his larger Cat EL300B excavator to rip the frost on the riverbank, using a single-shank ripper fabricated in the Finning shop. Price also used the EL300B to reach over young willow trees to feed rock for the 308C to relocate. Willow shoots were also placed horizontally in the new bank configuration. The idea is they will sprout in the spring and help stabilize the bank. The willows will also provide shade for fish habitat, adds Price. Price has been at the helm of Nahanni Construction since 1989, resurrecting the company name from a business founded by his father, Bill. The senior Price was active in B.C. road-building and heavy construction jobs from the 1960s to 1990s. “My dad always said to buy the best equipment you can to get the job done right, and for him that was Caterpillar machines,” recalls Dean. Bill is now retired but still exercises a father’s prerogative: “He still comes around and gives me hell now and then,” Dean Spring 2006 • TR ACKS & TREADS 13 COMPANY PROFILE: Nahanni Construction Ltd. The versatility and precision of Dean Price’s Cat fleet proved ideal for the tight working conditions of the Heritage River Trail project Repairing and upgrading the city-owned trail system is the kind of construction project Dean Price relishes. It requires a thoughtful, planned approach with environmental protection front and centre. 14 TR ACKS & TREADS • Spring 2006 says with a quick smile. A predilection for construction type and equipment choice was also passed on to Dean’s brother, Jack. His company, J.W. Price Construction Ltd., operates out of Merritt, B.C. and specializes in heavy earthmoving projects. His fleet includes Cat 621B scrapers, D9H and D9G dozers, and a 14G grader. Dean worked with his brother for about 10 years. But in 2000, he decided to move on to more general contracting work. “The heavy earthmoving work was not really for me,” he explains. That’s because the small excavators and other equipment he deploys now in a wide range of jobs and industrial applications are more to his liking. But what hasn’t changed is Price’s reliance on Cat machines. He runs a Cat D3B along with the three excavators he used on the Heritage River Trail job, all of which use biodegradable hydraulic oil and grease. The D3B was used to clean up the trail itself after the excavators were finished. For Price, there’s an additional factor supporting his confidence in Cat. “From my experience, it’s Finning,” he says. “They’re good for parts and service and other dealers can’t match them. If you get into a situation with a machine, the par ts and ser vice aspect reduces downtime and that’s huge. Finning stands behind you 100%.” Work has been picking up for Nahanni Construction over the last three or four years, says Price, to the point where he keeps his machines busy most of the time. “Forestry is one of the big things, installing and removing bridges and culverts around fish bearing streams, and we do a lot of maintenance work for the forest service,” he explains. “There are lots of roads out there.” But the company is anything but onedimensional; it even has its own gravel pit – a handy asset – located near the Nechako River just west of Prince George. “We do lots of private work, sewer and water projects, and we have service contracts for www.finning.ca “My dad always said buy the best equipment you can to get the job done right, and for him that was Caterpillar machines. He still comes around and gives me hell now and then.” dumps and transfer stations,” says Price. The company’s versatility helps keep the equipment moving and Nahanni’s four regular employees working. Price has a propensity for bush work – jobs which take him and his Cat equipment out to tackle projects in sensitive areas where maintaining strict environmental standards is important. “I couldn’t work all day behind a desk,” he declares. Those preferences are reflected in another way, too. When he’s not helping train heavy equipment operators (see sidebar below), he’s volunteering his time and expertise to assist people in distress in the bush. Price is a member of Prince George Search and Rescue, a group called in to help outdoorsmen – and wannabes – who find themselves in trouble. Even experienced hikers and hunters can become disoriented in the backcountry. Skiers and snowmobilers are seduced into venturing beyond their experience levels into overly steep and challenging terrain. Kayakers and rafters can underestimate the capricious nature of streams and rivers in central and northern B.C., not to mention the weather that influences them. Prince George Search and Rescue and other agencies respond to the distress calls when these types of things happen. And consider- When the environmental integrity of a worksite is at stake, Cat iron moves rocks one at a time ing our growing fascination with the more extreme elements of outdoor recreation, that’s no longer an isolated occurrence. Price’s attitude toward taking care of and showing respect for the outdoor environment was apparent in his approach to the Heritage River Trail project. Some contractors, for instance, may have whacked more of those pesky willows out of the way because they were a hindrance to getting the job done. Nahanni Construction, however, did that only as a last resort, says Price, who preferred instead to use his range of Cat excavators and take his time to reach and work around the trees. It’s common sense as well as good practice to protect the riverbank, he adds. The Heritage River Trail aficionados will be delighted he did. Those Who Can... Teach The main dilemma Dean Price had when he was approached about teaching a heavy equipment training course was whether he could find the time to do it. But Frank Rossi, the man doing the approaching, had an answer at the ready: he’d work the training sessions around Price’s busy work schedule. Rossi is a trades co-ordinator in the Continuing Education department at the College of New Caledonia in Prince George. He heard about Price, the owner of Nahanni Construction Ltd., through a friend of a friend. “It’s worked out very well,” says Rossi. “We’ve had excellent feedback from the students and Dean is a good communicator.” The 100-hour courses are practical in nature, says Rossi. “Our philosophy is for students to train on one piece of machinery until they reach a level of proficiency. The skills are transferable to other equipment.” Rossi has no shortage of men and women hoping to learn from experienced machine operators like Price. www.finning.ca “Heavy equipment operators are one of the most in-demand occupations in the growing economies of B.C. and Alberta. There’s a huge demand for them.” Price also likes to take his students to the Finning (Canada) shop in Prince George. There they meet Max Kostovich, a product support salesman with Finning who’s been assisting Price and his fleet of used Caterpillar equipment for about nine years. Kostovich introduces students to the world of good machine maintenance practices. “Operating the machine is one thing, but you have to learn to look after it as well and all the maintenance stuff that goes along with that,” explains Kostovich. “I think that’s a benefit to the students.” Teaching has been a positive and rewarding experience for Price. “Whether the people have previous machine operating experience or not, I try and train them the way I was taught,” he says. It’s interesting to see how people new to something react to it, he adds. And that’s where the roles are sometimes reversed. “I can learn from them,” says Price, “and we can never stop learning.” Spring 2006 • TR ACKS & TREADS 15 EQUIPMENT PROFILE 966C owner Richard Bedier (left) and Finning mechanic Lyle Babuick 16 TR ACKS & TREADS • Spring 2006 www.finning.ca Thanks to preventive maintenance and his mechanic, Richard Bedier’s 30-year-old wheel loader runs like new In It For The Long Haul BY ROBIN BRUNE T PHOTOGRAPHY BY JOHN GAUCHER www.finning.ca Fort St. John-based Finning mechanic Lyle Babuick loves to tell clients about a local Caterpillar owner who, with little more than due diligence and a grease gun, has operated his 966C wheel loader trouble-free for 30 years. “Nobody believes me,” says Babuick, “but I keep telling the story because it happens to be true.” The Cat owner in question is named Richard Bedier, and if the 966s are renowned as the workhorses of the north, then Bedier, who recently turned 53, is a mechanic’s dream. He is someone who understood the necessity of preventive maintenance long before Finning began promoting it as a concept for heavy machinery care. Much like Roy Rogers and his trusty stallion Trigger, Bedier and his 966 are inseparable. Since 1975 the duo have loaded logs and gravel year-round, sometimes averaging up to 4,200 tonnes daily. In the bone-chilling Fort St. John, B.C. winters, Bedier has no trouble turning over his engine in the mornings – much to the chagrin of newer competitor equipment operators who are left jabbing their starter buttons. To date, Bedier’s 966 has accumulated 75,000 hours (not bad, considering that 30 years is only 262,800 hours total) and Babuick estimates that its overall condition could allow it to operate for another 10 to 15 years. “Put it this way: my 966 operates no differently than the day I picked it up,” says Bedier, a typical owner/operator who prefers work over talk. “It’s the best loader ever built.” He adds that the most worn-out component of the entire machine is the driver’s seat, which he has replaced five times (the engine, incidentally, has been rebuilt four times – but the block remains intact). The expanding skyline of Fort St. John bears little resemblance to the isolated community where Bedier honed his operating skills. He stumbled onto loading by accident as a teenager looking for steady employment. He learned to load logs in a sawmill, and in 1972 he operated a Cat 950 for logger Sam Craig. In 1975, Craig decided to upgrade his inventory with the purchase of a new 966C (cost: $108,000), and he dispatched Bedier to Finning’s Dawson Creek outlet to pick it up. “I drove it brand spanking new out of the shop and onto Sam’s lowbed,” Bedier recalls. Although he had no idea this was the beginning of a 30-year partnership, he was instantly smitten with the 966. “The 330-6 engine helped its reputation of being a workhorse,” he says, “and like other Caterpillar Spring 2006 • TR ACKS & TREADS 17 EQUIPMENT PROFILE Retirement is not in the cards for Richard Bedier or his wheel loader The most worn-out component of the entire machine is the driver’s seat, which he has replaced five times. 18 TR ACKS & TREADS • Spring 2006 equipment of that era you could perform a lot of your own maintenance and repair.” Soon thereafter, Craig decided to pursue other interests, and Bedier worked out a deal whereby he rented the 966 for a year and then bought the machine for $90,000 in 1976. “I wanted to get into the loading business for myself,” he says, and then hesitates. “But in hindsight, I don’t know why I rented the 966 instead of just buying it outright.” From the get-go, Bedier lubricated the 966 with two and a half tubes of grease every evening after work. “It’s a habit I picked up working in the sawmill, and it’s what I do no matter what machine I’m driving,” he says. “I do it at the end of a shift because you can see if there are any missing bolts or loose pins. The process only takes 10 minutes.” It may sound unlikely that this is the key to the 966’s longevity, especially considering that Bedier has also pursued a comprehensive maintenance program, but Babuick stresses that a little grease goes a long way. “Lubricating the boom, linkages and articulated hitches is critical to a loader’s longevity,” he says. “When Richard finishes using his grease gun, his 966 is packed with two inches of the stuff and looks like a horrible mess, but that’s what it takes to get 15,000 to 20,000 hours of performance without doing any other maintenance.” Babuick’s tone becomes noticeably frustrated as he makes mention of other machines he presides over that are greased once every three weeks – if that. Babuick met Bedier in the mid 1970s, shortly after Bedier’s Dawson Creek mechanics claimed that the 966’s boom was drifting too much. “When I went to the logging site Richard was working in, Sam Craig’s Mack truck was supporting the boom, and when I extracted the hydraulic tank I realized the cause of the problem was that the jam nut for the spool wasn’t tight,” says Babuick, who, www.finning.ca “When Richard Bedier finishes using his grease gun, his 966 is packed with two inches of the stuff and looks like a horrible mess, but that’s what it takes to get 15,000 to 20,000 hours of performance without doing any other maintenance.” after tightening the nut, observed Bedier in action. “He was an incredible operator. He thought nothing of making 42 loads a day when other people would average 22 or 23.” Babuick describes Bedier as the sort of operator “who, once he trusts his mechanic, hovers over his shoulder and asks questions – because he intends to perform as much preventive maintenance as possible in the field.” But what inspired Bedier’s dedicated meticulousness? Bedier shrugs and mutters something about common sense, but Babuick theorizes: “It cost Richard a lot to buy that machine and his dream was to be a one-man show, so he couldn’t afford any downtime.” Babuick chuckles at the memory of a peeved Bedier visiting the Finning shop a while back. “He had snagged a stick which snapped a hydraulic line, and it was one of the rare times he had forgotten to pack spare lines in his www.finning.ca cab,” Babuick says. “Richard was angry because the mistake forced him to cool his heels for a mere 90 minutes, the only downtime he had in three years.” Although Bedier, who is married but has no children, leads a modest life, he will go to extravagant lengths to preserve the integrity of his loader. Case in point: when the time came for him to replace its tires three years ago, he discovered that the cross-tread he preferred was no longer manufactured in North America. With access only to two new tires and a new spare, he ordered a fourth tire to be made by a company in Japan, then waited five months for its delivery. So numerous are t he anecdotes regarding Bedier and his 966 that he and Babuick sometimes question distant memories. For example, Babuick insists that 15 years ago, Bedier ordered him to change the loader’s o-rings, a major task that can cost $40,000. “And then he went off for a three-week vacation in Hawaii without a care in the world,” says Babuick. “That’s the way he is – as long as I’m the guy working on his machine, he’s happy as a clam.” B e d ie r bu r st s out laug h i ng i n response. “I don’t remember that incident at all. Yes, I’ve gone to Hawaii on vacation, but for a job that massive I prefer to be by Lyle’s side.” One thing is certain: at a time when 1970s-era 966Cs are selling on the internet with disclaimers that the machines “need major repair,” Bedier soldiers onward as if time has stood still. Is retirement in the cards anytime soon? No, he says emphatically. “There’s no such thing,” asserts Bedier, “because the bills don’t stop coming in. As for my 966, I may use other machines in the future, but I can’t imagine ever selling my loader. It’s like the old saying: I’ve taken care of that machine, and it’s taken care of me for 30 years. In spades.” Spring 2006 • TR ACKS & TREADS 19 BACK INJURIES ARE ONE OF THE MOST COMMON REASONS FOR MISSING WORK. KERRY TREMBLAY EXPLAINS WHY, AND TELLS YOU HOW TO KEEP THE PAIN AT BAY Watch Your Back Back pain is by no means a new issue. Nearly 80% of adults experience it at some point in their lives. That’s four out of every five adults. And 90% of them suffer from lower back pain, which affects the area around the bottom curve in the spine. Back pain is ranked as the number-three reason for missing work – right behind colds and headaches. As one leading orthopaedic surgeon puts it, back pain is simply part of the human condition. Statistics from the Alberta Workers’ Compensation Board reveal 9,000 backrelated claims in 2004 alone, at a cost of $14 million. WorkSafeBC calculates that between 1997 and 2001, just over 90,000 back-related claims racked up over 3.7 million days lost from work. The average number of days lost per claim was 45. In the U.S., there are 100 million workdays per year lost to back injuries, for a whopping $10 billion to $14 billion US in workers’ compensation costs. That’s a lot of pain and suffering, a lot of time off work, and a lot of lost productivity. Trouble is, there’s often no specific obvious cause, such as a disease or infection. Back pain can be triggered by a something as minor as bending over to pick up a screwdriver, or something as long-term as sitting on a vibrating piece of heavy equipment every workday for years. Unless the problems are made obvious by a severe injury such as broken bones, they often can’t be seen through diagnostic aids like X-rays or MRIs. Studies show that if someone has hurt their lower back before, they will probably do so again, according to an article 20 TR ACKS & TREADS • Spring 2006 in a recent issue of the Canadian Medical Association Journal. There are lesser associations between the injury and the worker’s age, weight and sex. “Among the biomechanical risk factors,” the article explains, “the most consistent associations are with exposure to lifting or carrying heavy loads, whole body vibration, a nd f requent bending and twisting.” It also says that there is growing evidence linking stresses such as a perceived high workload, time pressures and job dissatisfaction with lower back pain. Some of those risk factors are definitely in the realm of personal choice – from how a worker decides to handle stress to the physical way he or she handles a task. A worker can choose how to sit or stand. The worker decides whether to deliberately and carefully pick up a box, or to not pay attention to their motions. And only the worker can decide when to stretch, get up, change position or move around. Lifest yle c hoices may help someone with a back injury, too. New studies explore, for example, whether a worker heals less quickly if he or she smokes, and examine how coffee and caffeine-based pop affect recovery time. According to Kathy Hilborn, an Alberta physiotherapist and president of Backs Unlimited Inc., when a worker stands up after sitting for hours, their back is in an unstable position for two or three minutes. If he or she jumps down from heavy equipment during that time, they could be hurt badly. It’s best to exit the equipment using three-point contact and slowly climbing down. And instead of sitting for hours, workers need to get up briefly at least every hour. In fact, Hilborn says, it’s a good idea to get off the equipment and stand or walk for part of the lunch break, especially if you’ve been sitting all morning. That lets your back fall into its natural curvature; the discs and joints in your back fall into normal configuration after being compressed. Once upon a time, back injuries were virtually a guaranteed sentence to complete bed rest for an indeterminate period of time. Today, the thinking has changed. Studies have tracked workers who remained off work with back pain for years. They slowly get weaker and weaker. Those who returned to work quickly, however, even with modified work, have generally been more mobile and have less pain sooner. “The goal is to get up off the bed and get going as quickly as possible,” says orthopaedic surgeon Dr. Gordon Waddell, a leading authority on back pain. “Lying down doesn’t make the pain better. It actually makes it 10 times worse.” These ideas on back injuries are very general and are only meant for discussion purposes. If you’re worried about your back, consult a doctor or physiotherapist. www.finning.ca ILLUSTRATION BY SYLVIE BOURBONNIÈRE Safety First Industry Report B.C. Mining 22 Resurgence From coal to gold, from Vancouver Island to Sparwood, a survey of key mining developments. www.finning.ca 24 The Wolverine Mine A new coal mine is helping to revitalize Tumbler Ridge, with Finning and Caterpillar playing key roles. The history of mining in British Columbia is long and lucrative. Precious metals and industrial minerals were extracted as far back as the mid-1800s. But as recently as last decade, prospects looked less than rosy in the province. Mines were closing, jobs were being cut, and important investments were winding up elsewhere. Fast forward to the 21st century, however, and we’ve clearly turned a corner. As B.C. Premier Gordon Campbell says, the “golden decade” is here. With new mines opening, commodity prices climbing and exploration expenditures soaring, the mining sector is booming. Moreover, it’s happening throughout the province, not just in one or two spots. “All regions of B.C. are seeing increased activity,” says Michael McPhie, the president and CEO of the Mining Association of B.C., “which bodes well for the future.” Spring 2006 • TR ACKS & TREADS 21 IN D U S T RY R E P O RT B.C. MINING IN D U S T RY R E P O RT B.C. MINING IN D U S T RY R E P O RT LANDSCAPING Digging Deep B eginning with coal mines on Vancouver Island and placer gold camps in the province’s interior, British Columbia has grown since the mid 1800s into one of the world’s major mining regions. A bountiful producer and exporter of everything from copper, gold and silver to lead, zinc, molybdenum, coal and industrial minerals, B.C. appears destined for a prosperous 21st century thanks in large part to mining. In exploration alone, expenditures in the province increased from $55 million in 2003 to $130 million in 2004 and somewhere between $175 million and $200 million in 2005. Three new mines opened in late 2004, the first such openings since 1998, and activities in all aspects and geographic reaches of the mining sector increased in 2005. With 23 potential new mines in various stages of regulatory review or permitting, and 650 active exploration projects in the province, the industry was worth approximately $5 billion in 2005, according to the Mining Association of British Columbia – up from $4.5 billion in 2004. In short, things are looking good. Small wonder then that B.C. Premier Gordon Camp- 22 TR ACKS & TREADS • Spring 2006 B.C. mining industry climbs out of the slump BY STE WART DUNCAN bell calls this a “golden decade” for the province – and no industry can help make it golden like mining. Yet all the deeply buried wealth is not easily taken. Only big dreamers with big plans can find it, extract it and get it to market. Mining Association of British Columbia president and CEO Michael McPhie summed up the soul of the industry in a recent speech. “At times, in mining, it seems that all we have are dreams – the pot of gold at the end of the rainbow – and searching for and dreaming of that next big discovery,” he said rather poetically. “We are optimists by nature. But we’re no strangers to tough times.” Indeed, in the 1990s, mines closed, jobs were lost and investments moved to other parts of the world. “It was a time in B.C.’s history when the government of the day failed to appreciate how important a stable publicpolicy environment is for creating the right conditions for investment,” McPhie said. For many resource industries in the province, the 20th century ended not with a bang but a whimper, as low commodity prices sucked the life out of industrial progress. But that changed rather suddenly as the 21st century got off with a postwww.finning.ca B.C. MINING INDUSTRY REPORT B.C. MINING poned bang that built in intensity for the first three years. Then, by the end of 2003, the international coal trade f lipped as China stopped exporting coal and instead sought to import vast quantities of metallurgical coal. Supply dried up, prices perked up and new investment started to pour into B.C.’s coal industry. One of the hot properties experiencing this longterm boom is the Tumbler Ridge area in northeastern B.C., where several companies are going down – in a good way. Western Canadian Coal is operating or developing high-quality metallurgical coal and pulverized coal injection (PCI) coal mines at their Wolverine and Dillon properties. Not far away is Northern Energy and Mining’s Trend project, which is just getting underway, and Pine Valley Mining Corp.’s Willow Creek mine, 45 kilometres west of the town of Chetwynd, which started production in 2004. All of this spells fortune for the town of 3,500 that’s geared up for growth to 5,000 within a year or so. There’s more activity in the vicinity, but not all the action is in the northeast. In the southeast corner of the province, not far from the Alberta border, Elk Valley Coal produces metallurgical and thermal products for international steelmakers and other industries. Coal Mountain ownership was transferred in 2003 to the Elk Valley Coal Partnership, which is 60% Fording Canadian Coal Trust and 40% Teck Cominco. Along with the partnership’s four other mining operations near the towns of Elkford and Sparwood, Elk Valley Coal is the world’s second-largest supplier of metallurgical coal, with a near-capacity output in 2004 of 24.9 million tonnes. When it comes to quantity, coal certainly rules, but the dirty, black, carbonized plant matter is anything but sexy. For that, we’ve just got to go to gold. Vancouver-based New Gold Inc. is exploring a goldcopper deposit beneath the former Afton Mine just west of Kamloops. Company president Chris Bradbrook said they started exploration drilling early in the new year to complete a $14 million US tunnelling operation. A feasibility study and exploration program in 2006 is expected to cost about $12 million US. “To put it in production, we’ll have www.finning.ca R E P O RT to raise money,” Bradbrook said. “Hopefully, thatINDUSTRY will be in 2006.” Good news arrived earlier than that for the LANDSCAPING mine, which reported just after Christmas that it had raised another $4 million toward creating the underground gold-copper mine. On Vancouver Island, about 440 employees at the Myra Falls mines in Strathcona Provincial Park are busy digging out gold, silver, zinc and copper at the site southwest of the town of Campbell River. Temporaryowner Boliden, of Sweden, closed the mines in 2001 and reopened them in 2002 with a 20% cost reduction. The mines are back in Canadian hands now – Breakwater Resources bought them in 2004 for $12.5 million. In the northwest, Teuton Resources Corp. finished its combined diamond drilling and airborne geophysical program in 2005 near the town of Stewart in the Eskay Creek mining district. Studies confirmed that the vein they’re following widens as it descends with a core of bonanza-grade gold and silver. Back in B.C.’s interior throbs Teck Cominco’s massive Highland Valley Copper open-pit mine near Logan Lake. Last September, Teck Cominco approved a fiveyear extension for the mine’s operations, shifting the mine closure date from late 2008 to the third quarter of 2013. The mine has about 296 million tonnes of reserves. “The extension of the Highland Valley mine life significantly adds to our copper production over the medium term,” said Teck Cominco president and CEO Don Lindsay. “This is good news for the workforce at Highland Valley, for local communities and the province of B.C., and for our shareholders.” The capital cost associated with the mine-life extension is about $40 million and means ramped up production from the Lornex pit and expansion of the Valley pit. Copper-concentrate production over the remaining mine life is expected to average 400,000 tonnes per annum. At the same time, molybdenum production (molybdenum is a metallic element which is most frequently used as an alloying addition in alloy and stainless steels) is expected to range from three million to eight million pounds per annum, averaging 4.4 million pounds over the remaining life of the mine. Looking at the big picture, Canada produced 66 million tonnes of coal in 2004, 6% more than in 2003; the four million-tonne increase was all from B.C. and all of the increase was for export. All in all, this is a small snapshot of a few mines in B.C., but it shows how digging deep is helping the province climb out of the 1990s slump. Spring 2006 • TR ACKS & TREADS 23 IN D U S T RY R E P O RT B.C. MINING IN D U S T RY R E P O RT B.C. MINING IN D U S T RY R E P O RT LANDSCAPING Coal Front Western Canadian Coal’s Wolverine mine is helping revitalize the town of Tumbler Ridge, with a little help from its friends at Finning t’s a massive investment in northeastern British Columbia that will ultimately help boost the standard of living in developing nations on the other side of the world. Along the way, it is creating widespread employment in the province, bringing in money from overseas markets, and playing a major role in the revitalization of a mining town that for a couple of years faced a very uncertain future. In many ways, Western Canadian Coal Corp.’s Wolverine mine near Tumbler Ridge typifies the mining industry: massive investment with massive benefits. Certainly the little town of Tumbler Ridge, population 3,500, located 725 kilometres northeast of Vancouver and a bump and nudge south of Dawson Creek, is feeling those benefits. TR, as locals call their community, sprang into being as a single-resource boom town when the Quintette and Bullmoose coal mines opened in 1983. The bust came in 2000 with falling commodity prices, forcing between 1,500 and 2,000 people – half the town – to seek employment elsewhere. But the following year, new residents started moving in: retirees, risk takers, northern workers who do two weeks in and then have 24 TR ACKS & TREADS • Spring 2006 two weeks off, and others whose jobs require extensive travel. They were drawn by the still-new infrastructure in a master-planned community, a vibrant, outdoor-oriented lifestyle and the appeal of near-new three- and four-bedroom houses on large lots for as little $25,000. Economic Development Officer Ray Proulx grew up in Tumbler Ridge, went to Prince George to earn a B.Sc. at the University of Northern B.C., then returned home to work as a tourism consultant. The Wolverine mine is a big deal to Proulx, and rightly so. It’s an open-pit metallurgical coal mine that’s scheduled to be in production this July with an initial annual output of 2.4 million tonnes of high-quality hard coking coal, later increasing to three million tonnes per year, a significant amount by any standard. Western Canadian Coal calls Wolverine “the next generation of coal mines.” The company started its feasibility studies in 2003 and, by early 2005, had Environmental Assessment Office certification. Construction and site clearing began in April 2005. “It’s generated quite a bit of interest and that has fueled the first significant development here in years,” www.finning.ca PHOTOGRAPH COURTESY OF DISTRICT OF TUMBLER RIDGE I BY STE WART DUNCAN B.C. MINING INDUSTRY REPORT B.C. MINING B.C. Minister of State for Mining Bill Bennett (top) addresses employees and guests at Finning’s Kamloops plant in front of a Cat D10T tractor that was being prepped for Highland Valley Copper and is just like the four sold to Western Canadian Coal for development of the Wolverine mine. BOTTOM (LEFT TO RIGHT): Finning general manager for minINDUSTRY R E P O RT ing Brent Davis, Kamloops MLA Claude Richmond, Finning’s LANDSCAPING Sparwood mining manager Darold Thorp, Finning B.C. mining sales manager Jim Harrison and Minister Bill Bennett PHOTOGRAPHY BY STEWART DUNCAN Proulx said about Wolverine’s impact on TR. “In the last three months, we sold the last remaining commercial lots in the downtown core. We’re looking at creating more retail space next year and finishing up two more light-industrial subdivisions. There has been a flurry of activity. A lot of faith pays off.” This time around, TR is better balanced demographically, Proulx explained. In the 1980s and 1990s, the majority of the population “considered 40 old.” Now, however, the presence of families, retirees and all age groups make the town “normal” in demographic terms, said Proulx. “We’re projected to grow to just under 6,000 in three to five years.” That expected population surge is the result of a surge in demand for B.C. coal. And so in late 2005, a group of industry players made a major announcement at the Finning plant in Kamloops in the shadow of a state-of-the-art Cat D10T tractor. Western Canadian Coal had just inked a $32.6-million deal with Finning for 18 new pieces of Cat equipment – and the ink was hardly dry when they signed for another $8 million worth of Cat iron from Finning. www.finning.ca The announcement in Kamloops was good news not only for Western Canadian Coal, Caterpillar and Finning, but also for the mining industry throughout the province. Little wonder then that B.C. Minister of State for Mining Bill Bennett and Kamloops MLA Claude Richmond were in jovial spirits, peppering their conversations with Finning employees with a series of quips and good humour. Thanks to higher coal and metal prices, Finning employees should be able to “have a few toys in their driveways,” Bennett said, “and go on trips now and then.” Prosperity in the mining industry means greater prosperity for all of B.C., according to Bennett. Mining is a $5-billion industry in the province, producing 25,000 jobs. As such, it’s expected to remain a bedrock of B.C.’s economy, and industry experts aren’t predicting a bust following the current overall boom in commodity prices. In other words, mines won’t be shutting down in three or four years. Case in point: Teck Cominco’s Highland Valley mine 60 kilometres southwest of Kamloops. One of the largest open-pit copper mines in the world and another major Finning customer, it has just invested $40 million in resource development in a bid to remain active until at least 2013. And in addition to that $40 million, Highland Valley recently spent $26 million at the Finning store for 10 Cat 793C off-highway haul trucks. “We’ve removed sales tax on mining equipment to encourage mining companies to buy here and expand their operations,” Bennett said, illustrating connections between the B.C. government, Finning and mines throughout the province. “All industry is important. But mining is very important.” Bennett commended Finning for its consistent service to B.C.’s mining sector. “The equipment procurement, the expansion of their service-sector facilities and the opportunity for increased employment for British Columbians is another great example of how mining supports communities throughout British Columbia.” Finning’s Brent Davis, general manager for mining, praised company employees for securing such large, lucrative contracts and making the company so solid. “Company founder Earl B. Finning said, ‘We service what we sell,’” quoted Davis, “and we continue that tradition today.” Spring 2006 • TR ACKS & TREADS 25 IN D U S T RY R E P O RT B.C. MINING IN D U S T RY R E P O RT B.C. MINING IN D U S T RY R E P O RT Site prep at Western Canadian Coal’s Wolverine mine is continuing with $40 million of new Cat iron Finning’s B.C. mining sales manager Jim Harrison, who announced the additional $8 million sale to Western Canadian Coal, stressed that there’s a lot more activity in the industry beyond the Wolverine mine. “Copper hit $2 a pound the other day,” he said. “It’s unheard of. We have good reason to believe the price will remain strong over the next three years. Beyond that, it’s anyone’s guess, but all indictors are positive.” Harrison also emphasized how Finning is growing alongside the mining sector. “We’ve just added a new mining-account manager, Darcy Hill, specifically for Tumbler Ridge. He’s from Prince George, from outside the company. It’s a new position and he’ll be one of two permanently stationed in Tumbler Ridge.” Finning had earlier added 13 more staff to its Kamloops operations and expanded staff in Prince George. The company now has more than 1,100 employees at 23 operations centres in B.C. alone. These numbers can only grow as Finning continues to service what it sells. Western Canadian Coal’s new Cat packages consists of five Cat 789C haul trucks with a 190-ton capacity, fi ve Cat 785C haul trucks with a 150-ton capacity, a Cat 385 excavator, a Cat 16H motor grader, a Cat 992 wheel loader, a Cat 834H wheel dozer and four Cat D10T tractors. The equipment was delivered during the latter part of 2005 and the first quarter of 2006 and is being used for pre-production stripping, as well as mining operations. The D10T features the latest computer technology as well as the traditional power and longevity that Cat is known for. Features like Automated Blade Assist and optional Computer-Aided Earthmoving Systems enable the D10T operator to do more work in less time by maximizing the 26 TR ACKS & TREADS • Spring 2006 machine’s capabilities and power. Finning shop chargehand Bob Brash, who is also the customer-service rep in Kamloops, mentioned that one of the industry-leading features on the D10T is its 646horsepower C27 engine with ACERT technology. “The C27 is not just more powerful and more fuel efficient than previous version,” Brash said. “The big thing with the C27 is that it reduces exhaust emissions to a point where it exceeds the most stringent government regulations to date. Cat is a leader in this technology.” To people unfamiliar with the mining industry, a $40 million equipment purchase probably seems like a lot of money for pre-production. Yet it’s just one part of the Wolverine mine’s $300 million in total start-up capital costs. And the fact that the operation will reap the benefits of $1.5 billion invested in infrastructure for northeastern B.C. coal development in the early 1980s further puts these figures into perspective. The Wolverine mine will tap into existing rail lines, an ocean port, the town of Tumbler Ridge, highways and other facilities. So it won’t be long before the coal is hauled on the roaring railway from the soaring Rockies to the distant Pacific, then carried on conveyer belts into the cargo holds of steel-hulled freighters that diesel their way to hungry foundries in the Far East. There, the high-heat-producing metallurgical coal will feed the fires of the world’s two most populous nations, which, for the past 100 years, have hung between developed and undeveloped status. Today, in the first decade of 21st century, China and India, as well as other countries in Southeast Asia, are reshaping the world market with modern manufacturing plants. Both countries have rapidly growing automanufacturing industries which require steel. And to make that steel, they need the heat of B.C. coal. www.finning.ca PHOTOGRAPH COURTESY OF WESTERN CANADIAN COAL CORP. LANDSCAPING Yesterday/Today THE 769 HAULER WAS MORE THAN CATERPILLAR’S FIRST TRUE OFF-HIGHWAY TRUCK. KEITH HADDOCK ARGUES THAT IT WAS ALSO THE BEST-LOOKING HAULER EVER PUT INTO THE FIELD PHOTOGRAPHY COURTESY OF KEITH HADDOCK Ahead Of The Curves In 1963, Caterpillar entered a brand new product arena by launching its 769 model, a rigid-frame haul truck with a 32-tonne capacity. It was the forerunner of Caterpillar’s extensive current truck lineup. Caterpillar’s truck program actually began back in 1956, when market surveys indicated room for an improved, highspeed quarry and construction truck. The first concept hauler began tests in 1959 and, after two more prototypes and extensive field testing, the 769 hit the market four years later. It was a completely new design from the ground up, not based on any existing model. Caterpillar was indeed brave to enter the specialized off-highway truck market considering that its competition already had decades of experience and well-established markets. The first 769 was powered by a 280 kW flywheel power D343 diesel engine and could attain a top speed of 65 kilometres per hour. Important features included independent pneumatic-oil suspension and oil-cooled disc brakes on the rear drive wheels as well as an air-suspension driver’s seat. I remember seeing my first Caterpillar 769 working as part of the United Kingdom’s motorway construction program in the mid-1960s. Huge amounts of earth and rock were moved over long hauls to construct the network of freeways so vital to the U.K.’s current economy. I was impressed at how this 32-tonne hauler, a giant for its day, seemed to glide over rough bumps in the haul road. At times it actually ran well over 50 kilometres per hour – quite something for a vehicle this big. Its smooth curved lines could have www.finning.ca been designed by a race-car designer. In fact, I still believe the 769 is the best-looking off-highway hauler ever put in the field. Its cab, hood, fenders and body all display pleasing curves, a sharp contrast to the square corners and sharp edges on competitor trucks of the era. Upgrades were made to the 769 based on f ield e xperience. Fly wheel power increased to 298 kW in 1964, and then in 1966 the 769B appeared with 310 kW flywheel power, still sporting the same D343 engine. The B-series lasted until 1978, when the 769C sported the new Caterpillar 3408 diesel rated at 336 flywheel power, with truck capacity holding at 32 tonnes. But the 769C had moved with the times, losing its appealing rounded appearance in favour of the typical “squared off” cab, radiator and fenders. By 1990, the Caterpillar 769C was rated up to 36 tonnes, and then in 1995 the current model 769D replaced it, rated at 36-tonne payload and 363 kW flywheel power from the improved 3408E engine. 1. NICE CURVES: The actual 769 haul truck that Keith Haddock first saw in England in 1966 2. GOING STRAIGHT: Straight lines and increased production are hallmarks of today’s Caterpillar 769D rear dump hauler Read all about the fascinating story of Caterpillar’s crawler tractor evolution in the book Classic Caterpillar Crawlers by Keith Haddock and Eric C. Orlemann. To order a copy, send $39.95 postage paid to Park Communications, 505 Hegler Crescent, Edmonton, Alberta, T6R 1T3, or phone 780-434-2840 for more details. Spring 2006 • TR ACKS & TREADS 27 MEETING THE CHALLENGE Diamonds in the Rough A Cat 994 loads a Cat 793 with waste granite A Caterpillar D8 tractor arrives at the Ekati site on last year’s ice road 28 TR ACKS & TREADS • Spring 2006 www.finning.ca The Ekati team has launched a business improvement project around tire supply with a focus on haul road conditions Ice road crew in action Finning Northwest Territories manager Ron Drewry A Cat integrated toolcarrier carts freight to the “sprung,” where it will be delivered to various operations www.finning.ca Traffic on this year’s winter ice road between Yellowknife and mining operations further north should be at an alltime high. Problem is, the road will be ready later than usual due to uncharacteristically warm temperatures. As of press time, it was looking like mid-February before the road would be open for light loads. Finning Northwest Territories manager Ron Drewry says a boost in mining activity accounts for the increase in traffic, which means maintenance of the ice road will be critical in light of potential dangers such as blow-outs, overflows, wash-outs, pressure ridges, cracks or worn portages. The relatively warm temperatures in the Northwest Territories over the last several years hasn’t helped. Back in the mid-1990s, a busy haul season on the ice road was about 800 truckloads. Last year, that total mushroomed to more than 7,500 loads. In place for just 10 weeks or so each year, typically between late January and early April, the winter road covers some 475 kilometres over frozen lakes and tundra. It’s the only way companies such as the Ekati diamond mine (about 200 kilometres south of the Arctic Circle) can bring in supplies like Caterpillar equipment, fuel and tires. Annual diesel fuel requirements alone at Ekati are about 85 million litres. Other supplies like food and perishables are flown in by cargo plane on a regular basis. Even though supplies will flow in abundance on a safe and well-maintained ice road, the supply of tires for the Caterpillar fleet remains a concern. With mining operations picking up speed around the world, demand for tires has created a worldwide shortage; some companies are even forecasting a drop in production as a result. For its part, the Ekati mine looks to keep haul roads as smooth as silk to keep the rubber on the road. “We’re assisting them,” says Drewry, “with a business improvement project on the issue.” Spring 2006 • TR ACKS & TREADS 29 COMPANY PROFILE: Snethun family PHOTOGRAPHY BY DARRELL LECORRE Iva-Jean, Vern, Chad and Tyler Snethun 30 TR ACKS & TREADS • Spring 2006 www.finning.ca A team approach to farming and flying is paying off for the Snethuns All in the Family BY SHANNON SUTHERL AND A s Vern Snethun stands at the sink filling the kettle for tea on a clear December afternoon, it’s hard to believe anything could interrupt the peace in that kitchen, on that farm. The kitchen and dining room overlook the stand of trees Vern and Iva-Jean Snethun planted when they were newlyweds nearly two decades ago. Just beyond the tree line, their two teenage sons, Chad and Tyler, skate during that all-too-brief window of time just after the school bus drops them off and just before it gets too dark to see the puck. A few months ago, though, the Snethun family farm was anything but serene. A pest outbreak in central Alberta and about 5,000 acres of wheat, canola, barley and peas kept the Snethuns bustling as they balanced their two businesses – their farming operation, and Prairie-Air Investments Inc., an aerial spraying company. “There’s no doubt we keep busy around here – some years are busier than others, of course,” says 45-year-old Vern, whose spraying business was in demand last season to fly search-anddestroy missions for army worms. “You never know what you’re going to get, though. It’s all emergency work, so when there’s a disease outbreak, there needs to be five of me.” Which leaves you wondering what five Vern Snethuns could accomplish when you consider what just one has done. It all started in 1986, about 150 kilometres southeast of Edmonton, a few miles southwest of the town of Lougheed, Alberta, when Vern and Iva-Jean got married and built their first home. It was an overwhelming year for the young couple. Sadly, www.finning.ca Vern also lost his 52-year-old father in 1986, and that put him in an unanticipated leadership position on the family farm. Fortunately, Vern rose to the occasion, expanding operations and then launching his aerial spraying operation a few years later. (He flies a Cessna Ag Truck “work plane” for spraying jobs and has a Cessna 185 as well, for pleasure trips.) “Vern has just done a tremendous job maintaining that farm since his father passed away,” says Don Leslie, a Finning customer account representative who Iva-Jean refers to as the family’s “other right arm.” “He has more than doubled the holdings,” adds Leslie, “and has done a fantastic job making it run efficiently and smoothly.” Snethun now farms 34 quarters – more than 5,400 acres. When his dad passed away, the family was farming 16 quarter-sections. Leslie has known the family for more than five years now and says he’s always amazed at how they all work together, taking pride in and responsibility for the day-to-day operations of the farm. It was in 2000 that Leslie sat at the kitchen table negotiating the sale of some Caterpillar equipment to the Snethuns when Tyler, then eight years old, whispered to his mom, “Can I show him now?” Iva-Jean hushed her son until the business at hand was concluded and more casual conversation had resumed. “Can I show him now?” the boy whispered again. Iva-Jean smiled at her son and nodded. “Go get it,” she said. “The boys, who were eight and 10 then, had always expressed more than an average interest in the farm and the equipment up to that point, and I had taken note of it, but I hadn’t really thought much more about it,” recalls Leslie, who sold the family Spring 2006 • TR ACKS & TREADS 31 COMPANY PROFILE: Snethun family “With the combines, there are very few moving parts and that really cuts down on your maintenance and breakdowns. I like the simplicity of them. I like the fact that ease of maintenance and user-friendly controls are a priority.” 32 TR ACKS & TREADS • Spring 2006 both their Challenger 670 combines and their Challenger 95E tractor. “So that day when his mom said he could bring me what he had been waiting to show me, I was surprised to see that he done four really good drawings of Cat equipment. The combine was especially good. It really showed me how involved and interested the entire family is in the farm. “Of course, Iva-Jean didn’t want that to interfere with negotiations,” Leslie continues with a laugh, “so she wouldn’t let him show me the artwork until after the deal was done.” The pictures Tyler drew hung in Finning’s regional sales office for several years, and the Cat equipment the youngest Snethun sketched still sits out back. Vern says Cat machines weren’t all that popular in the area several years ago, but he saw the success his uncle and cousin had with Cat products, so he decided to give them a try. Fuel savings and decreased compaction were two of the attractions. “Less soil compaction and a smoother ride were just a couple of the advantages of moving from rubber tires to track,” says Vern. “The fuel economy is better and so is traction. You can really see what tire compaction can do by looking at shovel wear on the air drill cultivator shovels behind the tractor tires. Those shovels wear twice as fast as the rest. If the other shovels are good for 2,000 acres, those behind the wheels are good for 1,000 acres. Behind tracks, shovel wear is even across the implement. That’s a pretty good indicator right there of how much less compaction damage you are doing with tracks.” Rubber track tractors tend to cause less compaction because they spread the weight of the equipment over six axles rather than two. A lighter machine also contributes to decreased compaction, of course. And it makes for smoother operations in wet weather. With the tractor, for instance, the www.finning.ca INSET COURTESY OF SNETHUN FAMILY Because he often spends long days in the air, having Challenger combines that are easy to maintain makes sense for Vern Snethun “Last year when I was out there during harvest, Iva-Jean was up on top of the combine on a ledge about 20 feet off the ground, walking around up there like a cat. I know lots of men who wouldn’t have the courage to get up there, but there she was doing what needed to be done.” around up there like a cat. I know lots of men who wouldn’t have the courage to get up there, but there she was doing what needed to be done.” total weight of the equipment is about 3,000 pounds less when compared with a four-wheel-drive tractor with duals. When about 34,000 pounds is spread over six axles instead of distributing 37,000 pounds over two axles, the load per axle is reduced by about 70%. This can make a significant difference not only in terms of operations, but in terms of production as well, because it promotes the even growth of crops, since the plants are not stunted where the rubber tracks have crossed the field. “From the air, you can always see where tire tracks cross the fields,” says Vern. You can see quite a lot from up there, in fact, and there’s no doubt that the view of the land he’s farming is a pleasing sight to Vern, and he’s fortunate to be able to incorporate his passion for flying into a business. When asked what attracted Vern to aviation, his wife replies for him with a sideways glance at her husband, a grin and a raised eyebrow. “Let’s just say, he has always been adventurous,” says Iva-Jean. It seems his eldest son Chad might have inherited a few of his father’s instincts as well; the 15 year old is showing an interest in aviation, too. Leslie says Iva-Jean is no shrinking violet either. “The entire family is active on the farm, and Iva-Jean has always impressed me with her hands-on approach to the farm,” he says. “Last year when I was out there during harvest, Iva-Jean was up on top of the combine on a ledge about 20 feet off the ground, walking www.finning.ca Doing what needs to be done is second nature for the Snethuns. They have been doing it for more than 20 years. The family seems to tackle their to-do lists with analytical efficiency and a sense of humour as well. There’s no doubt, though, that they take decision-making very seriously, since they know all too well how daunting downtime and miscalculations can be. That’s why Vern says Cat equipment just seems to make sense for his situation. Time and yields are paramount, and he needs to be able to troubleshoot easily when time is short and days in the air have been long. “With the combines, there are very few moving parts and that really cuts down on your maintenance and breakdowns,” he says. “I like the simplicity of them. I like the fact that ease of maintenance and user-friendly controls are a priority.” Simple solutions are a focus for Cat, and that’s reflected in the engineering. “It’s low to the ground, so all the components are at ground-level,” says Leslie. “They also made use of sight-glass, so the fluids are readily visible in all the sites. You can virtually do all the repairs and maintenance with the toolbox in the back of your pick-up. The combines have half the chains and belts that you would find in our competition’s combines and that makes them simple to maintain, repair or even rebuild.” That kind of accessibility is essential when the army worms come marching in and harvest is just weeks away. “It can get crazy around here, but we enjoy it,” Vern says as the winter sun sets and he pulls out of his yard, heading down a gravel road to the home-made hangar where his two airplanes are housed. “It’s just the way it is.” And there’s no doubt the Snethuns like it that way. Spring 2006 • TR ACKS & TREADS 33 FIELD TEST The haul road at Line Creek is easier on tires thanks to the new made-as-ordered edge (right) Building A Better Blade Edge Customer need spurs another effective innovation from Cat and Finning 34 TR ACKS & TREADS • Spring 2006 it helps them keep that vehicle on the road longer.” Nurkowski says Finning’s Sparwood branch, which is located in the southeastern corner of B.C., started working with the Line Creek mine when the Caterpillar edges used during a test on the operation’s Cat 16G and 16H graders were not meeting the needs of the customer due to the size of the crush being used on the road. The mine was also testing a competitive non-Cat edge to determine which one better met its needs for a number of factors, including edge longevity and crush recycling. “Recycling crush on haul roads translates into savings for customers and the competitive edge did provide the basic performance needed,” says Nurkowski. “However, there was room for improvement.” During the tests, which were fi rst conducted in February 2004, staff from Finning and the mine compared a standard edge from Caterpillar’s Ground Engaging Tools (GET) group with the competitive non-Cat edge. “The Caterpillar edge www.finning.ca PHOTOGRAPHY BY DEON NURKOWSKI K eeping haul roads at mining operations in prime condition can provide major paybacks for mining companies. So when Finning (Canada) started looking at ways to develop an improved edge for grader blades, Elk Valley Coal’s Line Creek property was a keen participant in the ensuing test programs and studies. “There’s a number of cost and safety benefits to maintaining haul roads properly,” explains Deon Nurkowski, a product support representative with Finning’s Sparwood, B.C. branch. “By developing a specific edge for grader blades working on these haul roads, the mining companies can leave more crush on the road. Which means less spinout for the vehicles using the road and that reduced tire damage to those vehicles. Currently, reducing tire damage is extremely important for the mining industry as world demand has created a supply shortage of tires, and if a mine can get 200 to 300 more hours out of a tire, BY BILL TICE had a gap between serrations of 1.3 inches and the crush they use on the road ranges from 1.5 to 1.75 inches across,” notes Nurkowski. “The space between the serrations on the Cat edge was plugging up with the crush, which essentially created a flat edge that would push the crush off the road. The competitive edge had gaps between the serrations of 2.0 inches, which alleviated the problem of the crush plugging up the gaps, but the mine liked some of the other features of the Cat edge, such as the depth of the tine, which is 5.5 inches on the Cat edge and 5.2 inches on the competitor’s edge.” When Nurkowski describes the serrated edge, he compares it to a comb, where the tine is the depth of the tooth with the gap being the space between the teeth. The shallower tine on the competitive edge results in the edge acting as a straight blade while there is still a significant amount of edge life remaining. The tests also indicated curving at the blade ends on both edges due to a significant amount of force put on the blade when crowning the haul roads, or during other operations that require higher forces at the ends of the grader blade such as finishing work. Armed wit h t he likes and dislikes of each product, Nurkowski worked with Finning and Caterpillar GET product designers to produce a “made-as-ordered” (MAO) edge, which is essentially a custom product that he hoped would provide Line Creek with a blade edge that could offer the best features of each of the tested products. “Our MAO edge was designed with a longer lead-in edge of 3.75 inches to address the issue of curving during crowning operations, and the spacing between the serrations was increased to 2.0 inches to allow for better haul road crush flow,” he says. “The depth of the serrations was kept at 5.5 inches, which prolongs the amount of time the edge remains serrated.” When the MAO edges were received at the mine site in January 2005, they were tested again. The edges are eight feet in length, so one of the Caterpillar MAO edges and one of the www.finning.ca competitor’s edges were mounted side by side on the same 16-foot blade. This test was conducted on two separate graders. One set of the combined edges achieved 219 hours of operation, while the second set lasted for 111 hours, a scenario that Nurkowski says could be related to operating conditions and machine operation. “The other key factor here was that material properties, such as the hardness of the metals, could not be accurately accounted for given that one of each edge was used,” he says. “However, given the time frame these edges can end up lasting, it was decided to keep the haul road conditions and operator inputs as factors equal to both edges.” The tests put the Caterpillar MAO edge ahead in several areas. “The wider 3.75 inch leading edge on the Cat edge kept its form, allowing for a straighter edge over a longer period of time,” explains Nurkowski. “Along with this, the deeper tine height resulted in the Caterpillar edge acting as a serrated edge for an extended period, resulting in longer edge life and leaving more crush on the road.” Steve Warr, an engineer-in-training at the Line Creek operation, inherited the project in October 2005. “The material properties for both edges are similar,” he says, “but the Cat edge has more wear availability because of the deeper tine, meaning we can use it for longer before hitting a flat edge.” Warr says he is also completing cost analysis studies comparing the two edges. “The Finning edge might be more expensive up front, but if it lasts longer, we have to make less edge changes, which may actually save us money, depending on whether we do our edge changes during a time when the grader is working, or during scheduled maintenance times.” At press time, Elk Valley Coal’s Coal Mountain mine near Sparwood was trying out 40 of the Caterpillar MAO edges from Finning and Nurkowski says there have been enquiries from a number of other mines. “We are currently working on increasing sales of this edge,” he says, “which will move the MAO cost down and will give us a better position when comparing cost per hour.” Spring 2006 • TR ACKS & TREADS 35 INDUSTRY HIGHLIGHT : OILSANDS UPDATE Boom 2.0 Cautious optimism, not excess, is the flavour of the day in the oilsands D uring the oilpatch’s stunning 1980s freefall, one bumper sticker was particularly popular on vehicles owned by people who remained in Alberta’s depressed economy instead of migrating to British Columbia or Ontario in search of work. “Please Lord,” it read, “just give me one more oil boom, and I promise not to piss it away this time.” Heaven sent or not, the good times have returned, especially to northeastern Alberta, where more and more companies are turning oilsands into sweet crude. The signs of the rising price of West Texas crude can be spotted in Fort McMurray, from fast food restaurants advertising $14 hourly wages for 36 TR ACKS & TREADS • Spring 2006 burger flippers to blinged-out, 24-inch rims on Escalades. But even with these excesses, the sequel to the 1970s economic explosion seems more subdued. And even with the price of oil cresting above $60, most of the oilsands industry’s major players speak in remarkably measured terms – as if they expect the dark storm clouds to roll over the horizon at any moment. Mike Glennon, the executive director for the Athabasca Regional Issues Working Group (RIWG), sees the industry’s prudence as well-founded, both as a matter of practice and given the historical precedents. While Glennon is a recent émigré to Fort McMurray, he has heard horror stories about the 1980s from locals whose credit ratings still bear the scars of www.finning.ca PHOTOGRAPHY COURTESY OF SUNCOR ENERGY INC. BY WILL GIBSON the collapse. “There is still a hangover from the ’80s and many people have seen the bad times with the good,” says Glennon, whose group acts as the industry’s voice on a series of regional issues. “And while the price of oil makes the oilsands pretty enticing at the moment, the large companies that are making this investment to get involved are sophisticated planners. They are looking at a 30-year window with their plans.” In addition to historical precedents and long-term thinking, there are a couple of blotches on the industry’s otherwise spotless prospects that limit the bullish talk by executives. The first is the drum-tight labour market, which has been blamed for significant cost overruns on major construction projects. And the industry’s labour pains look to even intensify after the contractors finish their final welds on several new industrial installations. The Calgary-based Petroleum Human Resources Council of Canada estimated that the number of non-temporary workers employed by oilsands companies will double, to 17,000 by 2012. By that time, Canadian Natural Resources Limited’s $10-billion Horizon project, Imperial Oil’s $6.5-billion Kearl Lake mine, Husky’s $10-billion Sunrise project, Total SA’s $9billion Joslyn Project and the $5-billion Fort Hills partnership between UTS Energy Corp. and Petro-Canada will either be operating or under construction. Considering that the industry already has difficulties recruiting and retaining employees, human resources headaches seem inevitable. Given Fort McMurray’s isolation, the oilsands industry has pushed the Alberta government hard to improve local infrastructure. This is an essential step towards easing the growth pains of a population that has doubled in less than a decade. The provincial government has responded by announcing more money and opening up more Crown land for development in an attempt to ease skyrocketing real estate prices that have experienced South American-style hyperinflation. Still, Royal LePage real estate agent Susan Lore says, “We have not seen enough land released by the provincial government, to keep up with demand.” With the price of a double-wide trailer topping $300,000, most newcomers who don’t come from the Toronto or Vancouver areas experience sticker shock. This has led to a growing “shadow population” that commutes from other communities, particularly Edmonton. The industry’s search for labour has even reached beyond Canadian borders. While industry broadens its search for workers beyond Canada, it is also attracting interest outside North America among investors and potential buyers of the synthetic crude produced from bitumen. Paris-based Total SA, one of Europe’s largest oil companies, bought a 78% stake of Deer Creek in September for $1.7 billion. It was the second foray into northeastern Alberta for the French company, which is an equal partner with Houston-based ConocoPhillips in the Surmont project. Total, which also has oilsands production in Venezuela, expects to produce 200,000 barrels a day at Deer Creek’s www.finning.ca Heavy equipment, as well as human hands, are needed to turn the oilsands into crude Joslyn Project, which eventually will include a surface mining operation, according to the plans. More media attention, however, has surrounded Chinese investments in the region. Last April, China National Offshore Oil Corp. purchased 16.7% of MEG Energy Corp., and China’s state-owned Sinopec acquired a 40% stake in start-up Synenco Energy Inc.’s Northern Lights project this past June. Enbridge Inc. also signed an agreement with PetroChina Co. Ltd. to build a $2.5-billion pipeline connecting the oil lands to the west coast of Canada. The deals created some high-profile American media hand wringing, but RIWG’s Mike Glennon sees the worldwide interest as a positive sign. “There wasn’t this kind of international interest in the past, but the technology used by the industry has been proven,” he says. “It also reflects the lower cost to produce bitumen.” While Horizon, Kearl Lake and Fort Hills will be open pit mines, where oil sand is removed by giant shovels and trucked to a processing plant where it is processed into synthetic crude, part of the Joslyn Project as well as Sunrise will rely on the steam assisted gravity drainage (SAGD) technique, where steam is pumped into the ground to soften the tar-like bitumen, which then flows to the surface. “It is a lot less labourintensive,” Glennon says about SAGD, “and doesn’t involve as much heavy equipment.” Makers of heavy equipment, however, should not despair about their sales prospects in northeastern Alberta. Between companies buying new diesel equipment that conforms to tougher new emission standards as well as future expansions at open-pit mines, Glennon believes plenty of heavy iron will be required in the region in the future. “Nobody is going to go broke up here,” he says, “whether they are selling heavy equipment or hamburgers.” Spring 2006 • TR ACKS & TREADS 37 Jennifer Silva (Flint), Len Mark (Finning chargehand) and Paul Bechard (Finning rental fleet manager) 38 TR ACKS & TREADS • Spring 2006 www.finning.ca PHOTOGRAPHY BY BLUEFISH STUDIOS DIVISION PROFILE: Rental and Used Equipment Recently amalgamated Rental and Used Equipment division gives customers many options RUE Grit BY ROSS HENDERSON L ast year, Flint Energy Services Ltd. had about 150 pieces of heavy equipment on a pipeline construction site when a key machine went down. The ill-timed glitch brought progress on a huge Shell project to a screeching halt. Flint’s equipment co-ordinator, Jennifer Silva, called Finning in Edmonton immediately. Less than four hours later, Finning’s rental fleet team in Calgary had a replacement machine at the Limestone site, about 100 kilometres northwest of the city, recalls Silva. Finning Calgary personnel then repaired the company’s downed iron and returned it to the worksite within two weeks. Responsive and thorough service like this is why Calgaryheadquartered Flint, one of the larger oilfield construction firms in North America with 7,000 staff and more than 3,000 pieces of equipment, has regularly turned to Finning for rental equipment over the years. Silva says the sizable and diverse Finning fleet delivers a big payoff where it counts – in the thickness of her company’s wallet. “It saved hundreds of thousands of dollars in downtime,” she says about Finning’s rapid response to the Limestone pipeline breakdown. “It kept us going.” To take customer service to the next level, Finning recently merged its used equipment and rental operations to form the 50-employee Rental and Used Equipment division, which is known as the RUE group for short. Edmonton rental fleet manager Paul Bechard says the combined team provides customers with more rental and purchase options, and a wider range of used inventory, in addition to higher quality rental machines and improved availability. Typically, the RUE group has about 350 rental and 500 used units available, ranging from mid-sized tractors to large mining equipment, wheel loaders and forestry equipment (such as skid- www.finning.ca ders and log loaders) as well as scrapers and articulated dump trucks. Another 350 units will be added to the rental fleet in 2006. Last year, the RUE team co-ordinated nearly 2,000 rentals, while Finning’s sales force sold approximately 1,600 pieces of used equipment, making Finning the largest used equipment dealer in North America. RUE’s organizational makeover streamlines customer service and keeps rental and used machines a step up in quality. “A lot of customers will rent a machine for a period of time and then want to buy it,” says RUE operations manager Gord McDougall. “We wanted to make that an easier transaction for them. One of our strategies is to make older rental equipment available for sale; this keeps the rental fleet updated and more reliable, and provides customers with a broader selection of high-quality used equipment.” Typically, rental machines are no more than three years or 5,000 hours old. In fact, they often appear brand new. That’s why Flint Energy Services rents most of its heavy equipment from Finning, usually on a six-month term. “For us, in construction, a new D8 costs about $800,000 to purchase,” says Silva. “And you’ve got to depreciate that unit. Therefore, it’s more cost-effective to do short-term renting. Because it has the largest fleet, Finning is usually my first call. My number one priority is service; they can provide service that a smaller company can’t.” Another option that RUE provides is consignment, a service that’s grown in popularity over the years. Finning sold more than 400 consignment machines on behalf of customers last year. “It’s an excellent alternative,” explains McDougall, who notes that consignment products are promoted by almost 200 Finning salespeople, are advertised in industry publications, and offered worldwide via www.finning.ca and www.catused.com. McDougall describes the consignment process this way: “It’s like an auction where the seller has control over the selling price Spring 2006 • TR ACKS & TREADS 39 DIVISION PROFILE: Rental and Used Equipment From Dubai, With Umbrella Cat-certified technician Marc Buckley changes a filter, one of many tasks handled by the RUE team and the buyer has a lot more time to research, view, inspect and decide on the purchase than the 30 seconds to a minute you get at an auction.” Longtime Finning customer John Wilson, the president of H. Wilson Industries, agrees. His Fort McMurray general contracting company runs about 40 pieces of Cat iron, performing work for Syncrude and Suncor and developing municipal subdivisions. “There’s rarely a surprise at Finning,” says Wilson. “But when you buy at an auction, you really don’t know what to expect – the motor could fall out of a machine the week after you buy it and everyone would just shrug their shoulders. When Finning sells for you on a consignment basis, you have a lot more choice in terms of what you’re getting value-wise.” Wilson counts on the value he gets at Finning. “A couple weeks ago we bought a 140H grader and it had about 3,000 hours on it,” he reports. “I think we paid $228,000 for it. If you were going to buy a brand-new, latest, greatest 2005 140H, you’d probably be looking at about $350,000.” Finning tracked down Wilson’s used grader from another Cat dealer where it had been used for municipal work, an application that’s generally easier on the equipment. “I know equipment fairly well, and it was clean,” says Wilson. “If you didn’t know the difference and didn’t look at the hour meter, you’d think it was brand new. We look carefully at the equipment we buy and Finning inspects and repairs it very thoroughly before they pass it on to you.” The RUE team encompasses five Finning branches throughout Alberta and British Columbia – in Calgary, Edmonton, 40 TR ACKS & TREADS • Spring 2006 The weather is relatively mild for a mid-December morning in Edmonton. Rental and Used Equipment division equipment sup er viso r Ed Nedeljak inspects a machine that’s just arrived at Finning’s RUE reconditioning shop on the western outskirts of the city. The Caterpillar 14H motor grader is one of six purchased recently in Dubai, United Arab Emirates, by RUE’s international sales team. After the long journey from the southeastern tip of the Arabian Peninsula, the machines are being prepared for a new test – a tougher test, one would think – here in the colder climate of Western Canada. The Dubai grader stands out from other units in the shop: an umbrella covers the operator’s seat. That’s one of the tasks the experienced Edmonton crew will tackle. They will be equiping the Arabian unit with a new cab – and a heater, naturally – and performing other significant reconditioning work to make it ready for a Finning customer. Last year, the team of Cat-certified technicians throughout Western Canada dedicated to the RUE group performed initial inspections and service work, ranging from routine maintenance all the way up to complete overhauls, on more than 3,000 rental and used machines. Of course, the same treatment was applied to the machine from Dubai. Indeed, the customer can now relax under an umbrella of peace of mind, if you will, assured that the unit is battle ready for our harsher weather. Grande Prairie, Surrey and Prince George – as well an international sales group which deals with customers the world over. An entourage of customers from Kazakhstan recently landed in Calgary, for instance, to look at a Caterpillar D10R that was completely rebuilt by Finning. Working alongside the RUE group at each location is a dedicated team of Cat-certified technicians who recondition and repair machines in the RUE fleet, ensuring they’re brought up to a quality standard using genuine Cat parts. Machines are also appropriately modified or guarded for specific applications. RUE customers can also rely on any of the numerous Finning (Canada) branches throughout Western Canada for parts and service support, a step ahead of competitors who rent or sell from a single region or location. To provide even a broader range of options, the Finning (Canada) team of used equipment buyers searches the world for good used machines, focusing primarily on used equipment from other Cat dealers. “Like us, other Cat dealers have high standards for maintenance and repair,” says RUE equipment purchaser Jim Chomyshen. “The equipment from those dealers is generally high quality.” To check out what’s available from Finning’s RUE group, visit www.finning.ca or call 1-888-FINNING. www.finning.ca Bill’s Business WHEN WORK RESPONSIBILITIES AND DUTIES START TO PILE UP, IT’S TIME TO DELEGATE. DAVID DICENZO EXPLAINS HOW BILL GETS SOME PEACE OF MIND BY SIGNING A SUPPORT AGREEMENT WITH FINNING ILLUSTRATION BY SYLVIE BOURBONNIÈRE At Your Service The sun was setting. With each passing minute, a scrambling Bill Bako knew he was running out of time. His D7 dozer needed servicing, so Bill headed to the Finning parts department for some oil and filters, knowing full well that he only had a bit of daylight left. It seemed to be the theme of his life lately – there simply weren’t enough hours in the day. As Bill loaded the materials into his truck, his Finning rep Paul pulled up. “Hey Bill, what’s up?” Paul asked. “Oh, hi Paul,” Bill responded. “Listen, I can’t really chat right now. I have to service the D7 ASAP. But we’ll talk soon, OK?” “Not a problem,” Paul said. “I completely understand. I’ll call you tomorrow. I want to run something by you.” “If you can track me down,” Bill said with a half smile. Getting hold of Bill hasn’t been easy. Work was plentiful, a blessing to be sure. But with the additional jobs came growth. Between supervising his ever-expanding crew, looking after clients and taking care of all the preventive maintenance (PM) on his fleet, the pressure on Bill has been building. No time for shinny, or relaxing with Brenda. Bill’s life revolves around his iron, even though it seems like just yesterday that he purchased his Cat 320CL excavator to start the business. “Bill, you seemed pretty stressed when I saw you,” Paul said the next day. “Yup,” Bill responded. “I’m sorry I had to rush off like that, but it’s been getting crazy around here and keeping up is tough. I had to get the D7 ready for a job. With all those machines, preventive maintenance is becoming a big issue.” “I might be able to help out,” said Paul. “Have you thought about the possibility of www.finning.ca hiring Finning to look after all the preventive maintenance for your fleet? It would mean one less thing for you to worr y about.” “I’m not sure,” Bill said. “Wouldn’t that be expensive? I’d be concerned that my costs will get too high and the profits shrink up?” “Well, that’s the thing: we can develop a Customer Support Agreement (CSA) that’s based specifically on your needs. You can look after as much or as little of the preventive maintenance as you see fit.” “I guess I could take a look,” said Bill. A s Bill drove home af ter anot her grueling day, he wondered if it was in his best interest to spend more money. It occupied his thoughts as he sat down for a quick bite and caught some hockey highlights before going to bed. “I spoke with Paul today and he suggested that I should look into a CSA to service the fleet,” Bill told Brenda. “Listen to what he has to say,” Brenda said. “Paul’s never steered you wrong.” Paul got to work on a proposal, meet- ing with Finning’s Equipment Management Solutions department to hammer out a plan for Bill’s D7, 320CL and CP563. After going through the proposal, Bill was impressed but had a question. “Tell me about this Global Maintenance System?” he asked. “This is a great product,” Paul said. “Global Maintenance System (GMS) uses GPS to track the location and a low orbiting satellite network to report your hours of use. Finning’s Equipment Management Solutions department, along with the local branch, schedules all of the servicing. GMS can also be configured to advise you if the machine is started outside of normal working hours and will give a warning if any major event has occurred.” “That’s incredible,” Bill said. “But I’ll be perfectly honest, Paul, I’m still worried about the money. What happens if my work slows down and I have this massive bill to pay at the end of the month? It just might not make any sense for me.” “Fair enough,” Paul said. “But Finning only invoices for the hours you use the machine each month. If work slows down, it’s not a concern. No key in the ignition means no maintenance fees. “Besides, the cost of all scheduled preventive maintenance is for the duration of the contract and is accounted for in the hourly fee, so you’ll be able to better forecast your maintenance costs.” “Well, Paul, let’s do it,” said Bill. A few weeks later, Paul visited Bill at a jobsite. Bill looked a little more composed than the day they ran into each other at the parts department. Still busy, but better. “So how’s the CSA been working for you?” Paul asked. “Great,” Bill said. “In fact, there’s a technician on site right now. The PM service has been top notch and I really like the fact that you get a detailed checklist afterwards. I don’t even have to worry about oil sampling now.” “So you’re happy with it?” “I had time to play hockey this week,” Bill said. “You tell me.” Spring 2006 • TR ACKS & TREADS 41 Count On Us Hands-On Leadership That was company founder Earl B. Finning front and centre with the pipe, apparently out in the field inspecting a piece of used equipment, perhaps in the 1950s. Again, that’s as much as we know on this end. Perhaps one of our more experienced readers has additional details to offer. If so, send them to jhoward@finning.ca. 42 TR ACKS & TREADS • Spring 2006 www.finning.ca ������������������������ �������������������������������������������������������������������������������������������� ������������������������������������������������������������������������������������������� �������������������������������������������������������������������������������������������� ������������������������������������������������������� �������������������� ����������������������������
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