Cleanaway opens new Melbourne depot

Cleanaway CEO Vik Bansal has officially opened the company’s new Perry Road Office and Collections Depot in Dandenong South.

The 53,000 square meter depot will house Cleanaway’s business and operational teams including the Victoria Post Collections leadership team, the commercial, industrial and municipal collections’ business, sales, administration, finance and fleet teams.

According to a Cleanaway news statement, the site features a 20-bay workshop facility designed for vehicle compliance and fleet productivity, with paved parking areas for 164 collection vehicles and the new electric vehicle fleet.

“The site is also equipped with fuelling stations with 100,000 litre capacity and automatic truck and parts washing bays,” the statement reads.

“Bringing together our administrative and operational teams from across Greater Melbourne is a key step forward to serving our customers better and making a sustainable future possible for communities across Australia.”

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Cleanaway trials electric waste collection vehicles

The first of two fully electric Cleanaway waste collections vehicles have begun kerbside collections in Victoria as part of a three-month trial.

The first vehicle began servicing household collections in Hobsons Bay. City of Greater Geelong and Moonee Valley will also host the vehicle to ensure it is tested across a variety of terrain and in different municipal settings.

Cleanaway CEO Vik Bansal said the vehicles are among the first in Australia to service kerbside collections, and will be under pressure to carry full loads and complete scheduled runs every day.

“With almost 5000 vehicles on the road each day, servicing homes and businesses all over Australia, we are looking for ways to do that more sustainably while continuing to deliver consistent service,” Mr Bansal said.

“Sustainability is about more than removing emissions at all costs. If service levels drop or waste collection costs increase significantly for ratepayers – that isn’t sustainable.”

Cleanaway Head of Fleet Paul Young said the company is optimistic about proving the reliability of the technology.

“The trial is designed to encourage fast learning so the electric vehicles can continue operating once the trial has ended, allowing Cleanaway to introduce more electric and combination fuel vehicles to the permanent fleet,” Mr Young said.

“With zero emissions, the vehicles are expected to run for 180-200 kilometres before needing to recharge. The brakes also regenerate – reducing repair and maintenance costs and the consumption of other parts like brake pads.”

According to Mr Young, the vehicles significantly reduce noise, making early morning or late-night collections possible for some waste streams.

Hobsons Bay Mayor Jonathon Marsden said the trial complements the great work already happening in the sustainable transport realm.

“These initiatives support our key priorities in the Hobsons Bay 2030 Community Vision of exploring sustainable practices and growth through innovation, technology, job creation and education,” Mr Marsden said.

“It’s also a step in the right direction of council’s draft Waste and Litter Management Strategy 2025 to trial alternative fuels in the waste, recycling and litter collection fleet.”

The vehicles were commissioned by Cleanaway in conjunction with SEA Electric and Superior Pak and are not yet in mass production.

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The NWRIC’s visionary policy

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Read moreThe NWRIC’s visionary policy

Cleanaway releases FY19 half-year results

Cleanaway has announced its financial results for the six months ending 31 December, reporting the integration of Toxfree is on track and all operating segments increased revenue and earnings.

An ASX statement shows gross revenue increased by 46.4 per cent to just over $1.7 million, with net revenue increasing by 47.4 per cent to just over $1.6 million.

Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 43 per cent to $221 million.

The company’s solid waste services reported net revenue increases by 30 per cent to $682 million, with EBITDA growing by 26 per cent to $176 million. Growth was reportedly enhanced by the ramp up of major contract wins such as the NSW Central Coast, Coles, NSW Container Deposit Scheme and commencement of a Brisbane City Council resource recovery contract.

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Cleanaway’s industrial and waste services reported increased net revenue, earnings and margins, with net revenue increasing by 129 per cent to $177 million. EBITDA increased 194 per cent to $23.2 million. The company said modest organic growth occurred taking into account the completion of the Toxfree Wheatstone project.

The acquisition of Toxfree has increased scale in this segment, allowing for segementation and management across two strategic business: resources and infrastructure.

The statement said that the pipeline of work across both infrastructure and resources markets is encouraging, although at this stage it is too early to be confident on the timing of project commencements.

The liquid and health services segment saw net revenue increase by 77 per cent to $251 million and EBITDA by 93.2 per cent to $42.7 million.

“Hydrocarbons had a good first half and remains on track for further growth with increased production efficiencies and improved oil price movement,” the ASX statement read.

“Hazardous and non-hazardous liquids performance was disappointing. We are working to improve its performance and remain confident that this will be achieved.”

An interim dividend of 1.65 cents per cent has been declared representing an increase of 50 per cent over the corresponding period.

Positive earnings momentum is expected for the remainder of the year via organic growth and full realisation of synergies.

Cleanaway Chief Executive Officer Vik Bansal said he was pleased to present results that deliver on the company’s promise and commitments.

“The safety of everyone at Cleanaway has and always will be our number one priority. The alignment of culture and behaviours needed to ensure our target of Goal Zero remains a priority as we continue the integration of Toxfree,” he said.

“We are pleased with the Toxfree integration process and remain confident of delivering the $35 million of synergies from the acquisition.”

Mr Bansal said that while margins have improved compared to the second half of FY18, the company believes that further improvements can be achieved as it continues to implement synergies and operational improvements across all segments and businesses.

“Development of our prized infrastructure as part of Footptint 2025 continued at pace. During the half we completed construction of post collection facilities in Sydney and Perth, an organics facility in Melbourne and upgraded our soil treatment facility in Sydney,” he said.

“The acquisition of Toxfree and the numerous strategic initiatives which we continue to implement across the company have further strengthened our position as the leading waste management company in Australia.”

Veolia acquires two companies from Cleanaway joint venture buyout

Veolia Australia and New Zealand has completed a buyout of its joint venture with Cleanaway Waste Management, purchasing Western Resource Recovery (WRR) and Total Waste Management (TWM) in December.

The two waste management companies established Western Resource Recovery and its treatment arm Total Waste Management in 2000 as a joint venture, Veolia assumed operation on 11 December, 2018.

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Veolia Acting Group General Manager for Western Australia Clay South said the company is pleased to become the sole operator of the two businesses and will continue reliable operation for existing customers.

“The liquid and hazardous waste treatment market is a key strategic growth area and by wholly owning both operations Veolia now offers a competitive liquid waste collection and treatment service in Western Australia,” Mr. South said.

The operational footprint of WRR and TWM is large, spanning Western Australia from Perth to Karratha, this provides waste management services to 3500 retail and industrial customers across the state.

The deal will see Veolia solely owning and managing six depots in the region, with infrastructure in Perth (Welshpool), Geraldton, Kalgoorlie, Karratha, Port Hedland and Bunbury.

Across WRR and TWM, Veolia will now manage 61 full-time employees and a fleet of 25 trucks.

Veolia have also acquired a liquid treatment plant and tank farm.

 

Cleanaway unveils new optical container sorting facility

Cleanaway has officially opened its new automated optical Container Sorting Facility at Eastern Creek, NSW.

The facility initially opened on 1 December 2017 and included a manual sorting line, which used magnetic sorting and manual picking to separate steel, aluminium, cartons and plastics with a capacity of 1.5 tonnes per hour.

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With construction of the new automated sorting line completed, the facility now has a capacity of eight tonnes per hour.

Optical sorters used in the plant identify containers based on their material type at thousands of reads per minute with air jets being used to separate them for compaction and baling.

These baled materials are then distributed domestically and internationally to be recycled back into food grade containers.

Since beginning operation last year, the facility has processed most of the 900 million containers collected by the NSW Return and Earn scheme.

The NSW Government’s scheme aims to reduce the volume of litter across the state by providing a 10-cent refund for each eligible container returned.

Cleanaway CEO and Managing Director Vik Bansal said schemes such as Return and Earn require the community to pre-sort containers for recycling, reducing the level of contamination at the source.

“With the new sorting technology installed at this facility, we are now able to improve the quality of the commodity streams even further,” Mr Bansal said.

“The Eastern Creek Container Sorting Facility is a critical part of our Footprint 2025. We’re committed to putting the infrastructure and facilities in place to deal sustainably with Australia’s waste, well into the future.”

Mr Bansal says the challenges facing the waste industry over the past 12 months have changed the way Australians view waste.

“It is more important than ever before that we work together to address these challenges. Return and Earn is a great example of that,” he said.

“It has been encouraging to see so many people getting involved and increasing the amount of recyclables being sorted at the source.

Coupled with a better network of facilities to sort the containers collected, we can produce commodity streams which are in demand, meaning more items are being recycled into new products,” Mr Bansal said.

NSW Environment Minister Gabrielle Upton said the Return and Earn had been a great success, reducing litter across NSW by a third.

“I commend the people of NSW and congratulate Cleanaway on their state of the art facility that supports Return and Earn to provide a smart solution to reduce litter in NSW and contribute to a more sustainable future,” Ms Upton said.

Cleanaway secures seven-year contract with City of Sydney

The City of Sydney has selected Cleanaway as its new waste and recycling provider with a seven-year contract beginning 1 July 2019.

Services for the council will include general waste, recycling, garden organics and bulk or hard waste and electronic waste kerbside collections.

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The contract also includes 25 new vehicles which have Cleanaway’s integrated data platform installed. The system uses on board cameras to track collections and service events like missed pick-ups, broken bins and can be used for single-call customer service response. Cameras can also provide insights that aim to reduce contamination, improve recycling and increase truck safety.

Cleanaway’s education team will also provide the City of Sydney with sustainability training which aims to reduce waste sent to landfill and improve recycling rates.

Cleanaway Regional Manager – Sydney Metro Michael Sankey said the company looks forward to bringing its expertise to Sydney.

“As part of the contract, Cleanaway will be setting up a new facility and implementing new operational teams and some educational resources,” he said.

“Over the next seven years we’ll be working closely with the council’s waste management team to add value for the community and help the City of Sydney achieve their sustainability goals.”

Cleanaway releases 2018 annual report

Cleanaway has released its 2018 annual report to shareholders, providing a comprehensive discussion of its strategies across the business.

It follows the release of its FY18 full-year results last month.

The report, titled Making a Sustainable Future Possible, provides a snapshot of Cleanaway’s business, having acquired Daniels Health and Toxfree and commenced operation in May of this year. With the two businesses in operation, Cleanaway has more than 260 sites across Australia, including more than 4000 vehicles and 115 licensed infrastructure assets.

The 2018 year at a glance shows underlying revenue of $1.7 million, up 17.9 per cent on last year. Earnings, before interest, tax, depreciation and amortisation (EBITDA) sat at $339.7 million – up 12.7 per cent.

Commenting on the full-year results last month in a statement, Cleanaway Chief Executive Officer Vik Bansal said that each of the company’s three operating divisions – solids collections, solids post collections and liquids and industrial services – again increased revenues and earnings in the period.

“Our quality of earnings experienced some downward pressure during the year driven by industry wide changes to the recycling and commodities markets as a result of China’s National Sword policy. This policy negatively impacted commodity prices and increased our costs of sorting material to required levels. However, over the past few months there has been some recovery in commodity prices, especially for higher quality recycled materials.

“Earnings quality was also impacted as we rolled out a number of major new contracts which have strengthened our market leading positions. We remain confident that margins will transition to normal levels as we complete the mobilisation phase of these contracts.”

According to the annual report, in 2018, Cleanaway recycled more than 320,000 tonnes of paper and cardboard, 16,000 tonnes of plastic packaging and 14,500 tonnes of steel, while less than 50,000 tonnes of organic liquid waste re-used as nutrient.

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In terms of community investments, more than $795,000 was invested in Australian communities and in excess of 1250 education programs held.

“A major highlight of FY2018 was the completion of our acquisition of Tox Free Solutions Limited (Toxfree). This consolidated Cleanaway’s position as Australia’s leading waste management company, strengthening our integrated total waste management offer,” the CEO’s report said.

“In FY2018 we commenced a number of significant new contracts – including Brisbane City Council, Chevron Wheatstone, Coles, New South Wales’ Central Coast and the Container Deposit Scheme in New South Wales. As sizeable contracts, each has incurred significant ramp up costs, impacting margins in the short term. We expect this margin pressure to ease in FY2019 as we complete the mobilisation phase of these contracts and move into ongoing operations.”

One section on the impact of China’s National Sword policy argues the strategic long-term answer to the policy is not to keep finding the next offshore market for commingled refuse, but to encourage investment in the domestic processing capacity.

“We also need to educate, sort, recycle and reuse locally based on a set of consistent standards. This will take a much stronger level of alignment between all levels of government as well as commitment from industry to use an increased percentage of recyclable materials in the production of new foods, and, of course, the continuing education and partnership with communities all over Australia,” the report says.

“Australians remain strongly supportive of more responsible waste management and recycling policies. An Australian Council of Recycling survey, conducted earlier this year, found that 91 per cent of respondents support a national action plan on recycling, and 88 per cent support new requirements for packaging to be recyclable and for national education to help reduce contamination in kerbside recycling,” it continues.

“We are working closely with both councils and the broader community to reduce the level of contamination in commingled recycling.”

You can read the full report by clicking here.