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The History of the IFPTA
Memories of the future ... How the IFPTA was started
It was Rotterdam, 1974, in the Hilton bar... Per
(Pele) Strömbeck and I were having a drink, watching the world go
and relaxing from the rigors of a new type of symposium organized by Pulp
& Paper International (PPI). Then John Kalish, the Managing Editor of
PPI, joined us... The rest is history - which I'll sketch in here.
By Bob Herbert (IFPTA Secretary/Treasurer 1992-99, Secretary 1982-87)
A need to share
I 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 me since I 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 I were old friends; we had
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. In fact, the whole event was John's idea, and
he was amazed that it had attracted 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 my 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 Transport Symposium was
then called, was repeated every other year with increasing attendance.
But we needed more and better communication. 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 to me, 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 me. (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. My ship-design office was nearby, and John got into the habit
of dropping by. One day, we 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!
We also agreed that the new organization should be
a non-profit corporation, established in California as it seemed that
I was also to be the Secretary. I found a San Francisco lawyer 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 we were 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 I 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 our 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. My wife Helen signed on as Treasurer (1982-87),
and I agreed to serve as Secretary. All of these positions were voluntary
without compensation, and still are.
Our industry has become ever more global, and our
members operate all over the world and need better support locally. So
the IFPTA has recently appointed Regional Directors to hold meetings,
conduct membership drives, organize regional seminars, develop articles
for publication in the Journal, and generally represent us in their areas.
In all of this, the PPI magazine and its owners,
Paperloop, have remained steadfast in support. Our respective roles
are still the same: the magazine organizes the Transport Symposium every
two years, and 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.
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