Waste management companies say an increase in refuse collection fees is unavoidable, due to rising operating costs. However, they say that productivity and technology gains have helped to moderate fee hikes.
They are also promising better service standards.
The National Environment Agency had announced on Tuesday that waste collection fees for households in Pasir Ris, Tampines and Bedok will go up from July, and other estates may follow suit.
The agency said that it is working with the industry to manage fee increases by improving productivity and helping companies reap economies of scale.
Public waste collector Veolia - which is the public waste collector for households in Pasir Ris, Tampines and Bedok - started using trash compactors, known as Minimatics, in HDB estates last year.
A single truck can collect waste from up to seven Minimatics, a three-fold increase in load over traditional compactors.
Previously, mobile compactors with a five-tonne capacity were used in refuse bin centres. And each centre required one garbage truck. With the Minimatics, a single refuse collection truck with a 14-tonne capacity can visit five to seven locations in one trip, before heading to the incinerator.
Veolia said the Minimatics are a better fit for some bin centres which serve fewer households, and may not have been an efficient use of the bigger compactors in the past. The fewer trucks have also helped the company to reduce its carbon footprint.
The improved workflow has also led to productivity gains.
Jerome Baco, country manager (Singapore) for Veolia Environmental Services, said: “We have reduced our fleet by one-third in terms of number of trucks and associated drivers. So such kind of innovation that brings higher productivity has helped us mitigate the cost.”
Veolia has invested some S$10 million in the past year to replace its entire fleet of trucks with more eco-friendly models, which also feature more automation to reduce reliance on manpower. The trucks also emit less smell, reducing the inconvenience to residents and workers.
Even with these measures, prices will go up.
Mr Baco said: “We have faced a significant increase in operating costs, such as fuel for example, just to name one. Fuel has increased by 143 per cent in the last seven years. CPI (cost-price index) has increased, salary as well. Therefore, with such operating cost increases, it is not possible to imagine that the fee would not increase at the same pace.”
SembWaste, a subsidiary of Sembcorp, said a key challenge for the industry is “escalating costs”, which it has been able to manage through improved productivity.
Aside from leveraging technology, SembWaste has also invested in training for its 600 workers. This not only helps to boost productivity, but also reduces the company’s reliance on manpower.
SembWaste added that with more training, employees have more opportunities in the company and can look forward to better pay - good news for an industry often shunned by locals for its hard work and low pay.
