Celebrating 25 Years of the IFPTA
Published: May 31, 2010
The roots of the IFPTA date back to 1974 in Rotterdam. Per (Pele) Strömbeck and Bob Herbert (IFPTA Secretary/Treasurer 1992-1999, Secretary 1982-1987) met for a drink following a new symposium organized by Pulp & Paper International (PPI). They were joined by John Kalish, then the Managing Editor of PPI. And the rest, as they say, is all history.
A need to share
Bob Herbert had been invited to Rotterdam to present a paper on the ship transport of forest products. As a naval architect, this was a subject that had interested him since he saw how World War II tank-landing ships, LSTs, loaded and unloaded heavy vehicles simply by driving them through the bow doors.
Pele Strömbeck and Bob were old friends; having worked together in the 1960s under Björn Wahlström on the development of a new distribution system for Svenska Cellulosa AB (SCA), of Sweden. Pele was Program Chairman for this symposium which had been organized by John Kalish and PPI. The event was a huge success - attracting more than double the expected number of delegates.
It seems that the world was sprinkled over with people moving forest products, working hard but without much opportunity to obtain information outside their immediate circles. They needed this expanded communication because they had to understand and manage their own product flow, which involved material handling, transport by truck and rail, warehousing, ship and barge transport, and the communication systems necessary to control all this. This symposium offered a perfect opportunity to learn how it was being done by the other fellows.
The challenge
The symposium went off very well, under the able management of John Kalish, Leonard Haas, Suzy Levy and her PPI team. The presenters displayed a refreshing generosity and willingness to share their technical knowledge. This confirmed a long-standing impression that such a tradition could be built upon within the forest products transport industry. While financial results are, of course proprietary, there is a whole area of technical and operating experience which can be shared to everyone's betterment.
A good example of the tradition in action is the way that Crown Zellerbach and SCA carried on "technical interchange" during the 1960s. These two companies operated in different areas so there was no competitive edge to be maintained, and they freely exchanged their ideas and experience throughout the development of SCA's distribution system.
The PPI Symposium, as the PPI Transport Symposium was then called, was repeated every other year with increasing attendance. But we needed more and better method of communication for the industry. The keynote speaker for the 1976 symposium, Ted Przedpelski of the International Paper Company, had this to say: "Why is it that this group, which has so much in common and so much to offer one another, has such infrequent opportunities for discussion?" The answer, it seemed, was lack of a formal organization through which communication could take place and under whose auspices group actions could be developed.
Ted Przedpelski declared: "This, then, is the keynote message: organize a formal body, be it an association or a club, learn from one another and cooperate for mutual benefit, and uplift thereby the image of distribution executives within the pulp and paper industry."
Let's make it happen
That was clear enough, but nothing came of it right away. In the meantime, during the late 1970s and early 1980s, PPI continued to organize symposiums, with programs organized by Pele Strömbeck or Bob Herbert. (We missed 1982 because of hard times in the industry.) This arrangement worked fine, although there was a possibility that PPI might have to discontinue the symposium because of other business pressures.
During these years, John Kalish visited San Francisco frequently to consult with colleagues at Miller Freeman, the publishers of PPI. Bob's ship-design office was nearby, and John got into the habit of dropping by. One day, the two agreed that it was time to take up Ted Przedpelski's challenge and form an association to give it permanence.
But what to call it? The resulting International Forest Products Transport Association is a real jawbreaker. But it does say what we represent...and at least the acronym, IFPTA, is reasonably easy to pronounce!
The two men also agreed that the new organization should be a non-profit corporation, established in California. Bob was to be named its first Secretary.
A lawyer in San Francisco was found to draw up the articles of incorporation and bylaws which were officially stamped "Endorsed-Filed" by the California Secretary of State on October 4, 1982. The next step took a while, but the association was finally awarded tax-exempt status by the State of California on November 6, 1986, and by the US federal government on February 27, 1987, retroactive to our date of incorporation.
What we can, and cannot do
The IFPTA is classified as a Business League under Section 501(c)(6) of the federal tax code. A Business League is defined as "an association of persons having some common business interest, the purpose of which is to promote such common interests and not to engage in a regular business of a kind ordinarily carried on for profit". Trade and professional associations are considered to be business leagues.
IFPTA is not required to pay taxes, but we must submit annual financial statements to the federal and state tax authorities. We can engage in any amount of legislative activity germane to the common business interests of our members, but we may not support or oppose any candidate for public office or attempt to influence the general public with respect to legislative matters (otherwise known as grassroots lobbying), elections or referendums.
Subject to the above, US taxpayers can deduct IFPTA dues and ordinary and necessary expenses incurred by attendance at the biennial symposiums and members meetings. Membership fees are not currently tax-deductible in the US as charitable contributions.
IFPTA's interests may be considered to lie along horizontally connected disciplines as opposed to vertical interests practiced by groups of specialists in narrowly defined single subjects. Indeed, our members do not have to be specialists (though many of them are). Most, however, possess at least a working knowledge of a number of disciplines such as materials handling, warehouse management, rail, truck and ship transportation, ports and terminals, innovations in control and communications, finance and insurance, government initiatives. These areas must all work smoothly together in order for the whole system to succeed, and in this the IFPTA is unique.
Voluntary service
John Kalish and Bob Herbert knew the association would only get off the ground if we had a good board of directors, so we each set off to sign up the very best people we knew.
Our founding directors were: Albert Bernaert (Westerlund Corp., Antwerp), Jaakko Ebeling (Jaakko Pöyry, Helsinki), Bengt Eldered (SCA Shipping, Sundsvall), Klaus Gebert (Cellpap Terminal, Hamburg), Marius Hoogewerff (Boise Cascade, Portland), Clyde Jacobs (Seaboard Shipping, Vancouver), James Powell (Crown Forest Products,Vancouver), Tor Schumann Olsen (Star Shipping, Bergen), Per Strömbeck (Consultant, Gothenburg).
These were the men that placed us on the right track. John Kalish was persuaded to be President. Marius Hoogewerff also served as the first Vice President, while Klaus Gebert, being too valuable to lose, was also kept in the IFPTA as Vice President after his term as director expired. Bob's wife, Helen, signed on as Treasurer (1982-87), and he agreed to serve as Secretary. All of these positions were voluntary without compensation, and still are.
In all of this, the PPI magazine and its owners, RISI (formerly Paperloop), have remained steadfast in support of the IFPTA.
Our respective roles are still the same: RISI organizes the PPI Transport Symposium every two years, and the IFPTA provides the program of panel chairmen and speakers.
We are not a mass organization, but our members are leaders in our industry. Through it all, we remain dedicated to our original purpose, to originate and exchange professional information and experience on the transport, handling and distribution of forest products. That is indeed a worthy goal.
