The Timber Camp is a Resource building in Tropico 2: Pirate Cove where lumberjacks store wood after chopping trees down. These should be placed close to dense forest. As the workers clear an area around the Timber Camp you should place another timber camp closer to the treeline. The previous timber camp should be left, but fire and close the worker slots. This is because any timber that has been collected but not transported to a Sawmill will be destroyed. After a period of time, all the timber will have been transported to the Sawmill, so the Timber Camp can then be deleted.
If you do not have a timber camp for some time, Smitty will remind you to build a timber camp saying, "Cannot shiver me timbers, without timber!"