The economic impact of waste management

Since October 1997, when the first landfill fee was introduced in Malta things have been gradually changing when it comes to waste management. European Union directives made sure we got our act together and after the first engineered landfills were commissioned in 2004, it became increasingly obvious that these came at a high cost. Their sustainability depended on tariffs revenue that covered the operating costs.

Hence the revised fees for the deposit of mixed waste at public waste management facilities came into practice in June this year, signaling a substantial increase from the €0.70 per metric tonne to initially €20 per tonne, going to up to €30 by 2012.

This inevitable development has jolted the local business community into a high awareness of the need for effective ways to manage its waste. Business owners can no longer ignore this emerging aspect of their operations and a tangible system is needed in each operation to produce cost effective solutions.

Rausi Co Ltd identified this need three years ago, focusing particularly on the heavy usage of cardboard and plastic waste by almost every enterprise in Malta, obviously in varying degrees, but an emerging problem for all from manufacturing to retail and other services. Most enterprises are now facing cost and operational issues in waste handling such as overfilling skips, space availability, waste odors, and container/skip rentals.

The company brought in the franchise of international industry operators MIL-TEK based in Denmark and present in over 30 countries already. Mil-tek (www.miltek-co.uk) is a leading international waste solutions company and manufacturer of environmentally-friendly, air-powered balers and presses. By efficiently compacting cardboard, plastic and polystyrene waste Mil-tek machines optimise the use of space and transportation to cut user recycling costs by up to 80 per cent.

Recent Mil-tek environmental technology innovations include the ECOdrive system, which cuts compactor energy use by up to 60 per cent, and the company’s Xpress range of balers can compact general waste down to one-tenth of its original size.

“By removing cardboard, plastic and other recyclable materials from their general waste Maltese companies increase recycling and avoid landfill tax increases – and by sorting, baling and recycling, business are also complying with the pre-treatment environmental legislation that has been in force since October 2007,” says Mil-tek regional manager Sean Doyle. “Perhaps most importantly, they are reducing their landfill tax costs.”

Similar experiences are taking place in other countries. For example, in the UK the leading builders merchant Buildbase has installed 27 in-branch Mil-tek balers to support the company’s nationwide recycling push. “We will achieve ongoing cost benefits of £70 per tonne on cardboard and £100 per tonne on plastics – and is already cutting branch skip costs, in one case by 40 per cent,” says Buildbase health safety and environmental manager Steve Follows.

However the type of businesses adopting the use of Mil-Tek baling machines varies greatly and ranges from fast food restaurants like McDonalds or Pizza Hut to DHL to supermarket chains. The Malta experience is not proving to be any different. Already numerous installations of Mil-Tek systems have taken place on the island and the interest is growing by the day. “Suddenly local business has become acutely aware of the economic impact good waste management can have on every single business, and Mil-Tek Balers deliver just that, ” said Roderick Rausi, director of Rausi Co Ltd. “There is no doubt now that it pays to recycle and efficient compacting and preparation for collection contributes significantly to the cost impact.”

The experience of Rausi Mil-Tek local clients speaks for itself: Christopher Borg Cardona, logistics manager at Simonds Farsons Cisk commented positively on their company’s experience. “We have achieved impressive results on both a cost effective level and quality working environment levels,” he said.

Malcolm Attard of fashion retail operator Zara Malta commented: “The introduction of the balers has dramatically changed our backroom operations and provided better use of manpower and space in our day to day operations.”

Mario Morana of Hilton Malta said: “Having a Mil-Tek Baler has helped us to achieve a more organised, cleaner loading/unloading area, which has also proven to be cost effective with its investment being recuperated within the first 18 months.”

Mil-Tek machines come in different forms that apply to different business needs. With 10 machine models to choose from, a small wholesaler or a medium restaurant or a large manufacturer will find what they need to manage their mixed waste.

“There is no time to waste,” stressed Mr Rausi, “the traffic sign has moved from green to orange and every business should make sure it does not wait for it to go red and invest in processes that start reaping cost saving results from day one.”

www.miltek.com.mt.