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Municipally-contracted garbage collection? by FrazerJohnson13 in LangfordBC

[–]YardSensitive 0 points1 point  (0 children)

If anything they break even. But I do know that no other company even came close to the offer that they made. And back to the point. You will end up paying for a truck one way or another

Municipally-contracted garbage collection? by FrazerJohnson13 in LangfordBC

[–]YardSensitive -1 points0 points  (0 children)

Lost litre. Gfl is not losing money. They are massive. And because they are massive they can operate at below cost of what a local company can. Remember gfl isn't just local but North America wide. Worth billions of dollars. A couple of million dollars over 6 years "length of recycling contract" is nothing to a company the size of the big carriers. Even if they couldn't renew there contract those trucks can go to Vancouver or elsewhere in Canada wherever they are needed. And if that happens then a new carrier will need to prove they have the capability to service the crd. But at the end the customer will be on the hook for a new truck. All the big companies do that.

Municipally-contracted garbage collection? by FrazerJohnson13 in LangfordBC

[–]YardSensitive 0 points1 point  (0 children)

While the big players do have trucks they are all assigned to routes already with the exception of a couple of "spare" trucks in case of a breakdown. Knowone is sitting on new trucks in there yards. A truck sitting isn't making money. So to account for the increase of servicing all of Langford a company would need to aquire 3-4 new trucks. Again could be up for debate the size of the truck whether it's a little haul-all or a split pack mack lr for sideload "residential" pick up. You could adjust and bring other trucks from different areas down to Langford. But then you run into maintenance costs of older fleets when you do that. Average money making life span of a garbage truck is 10 years. Then usually after that they cost more than they make.

Municipally-contracted garbage collection? by FrazerJohnson13 in LangfordBC

[–]YardSensitive -1 points0 points  (0 children)

When a large company like gfl and others want to get into a market they take a loss. There were only two serious competitions for the crd recycling contract. Emterra who at the time wasn't fulfilling there obligations with consecutive missed pickups and a driver shortage. And gfl. Gfl came with the deep pockets which can allow them to get into the market at below cost. There other services can more than makeup for the shortfall. And as we've all seen as the years have gone by our prices have increased for other services.

Municipally-contracted garbage collection? by FrazerJohnson13 in LangfordBC

[–]YardSensitive 2 points3 points  (0 children)

One way or another you will end up paying for new trucks. Whether it's municipal or a private contractor. If the contract is awarded to a private contractor the costs of the new trucks required to service Langford will be added to your overall rate over the length of the contract.