Toronto will have to find a new service provider to haul its municipal garbage to Michigan when the current contract ends on March 31 for transportation company Wilson Logistics of Etobicoke, Ontario.
A new contract will cost more. Wilson Logistics has complained for years that it couldn’t make money on the contract after the situation with Canada-U.S. border changed, along with new rules that govern how long a driver can operate his rig. The 20-year contract, which started in 2000, will end March 31. Citing confidentiality rules, financial details about the severing of the contract are unavailable.
In anticipation of higher costs, the city has set aside an extra $4.2 million for haulage in 2006. The city expects to pay about $60 a tonne, up from the current $55. Wilson, which ships about 120 truckloads of Toronto trash daily, is being paid $33 a tonne (as of January 1, 2003) with annual increases for inflation. The rest of the costs are landfill tip fees.
In addition to tight border security after September 11, 2001, soaring fuel costs have made the current contract unprofitable. Toronto ships about a million tonnes of waste annually to a Michigan landfill operated by Republic Services Inc.
Shipping garbage cost Toronto only $12 a tonne when it had its own landfill at Keele Valley in nearby Vaughan. With incineration, the costs would be much more than even the anticipated 2006 level (up to $120 a tonne). The city fears a possible future border closure, that would force it to find a local landfill, quickly.
The city is spending $500,000 to buy a “tipper” used to empty trucks at a landfill. This will allow the city to quickly set up at a new site if the Michigan border closes.