City of Melbourne sells off waste service to Cleanaway for $110m

One city has sold off its waste management service for $110m. This is what it means for staff and households throwing out rubbish.

Melbourne residents will soon be waking up to a new garbage service picking up their kerbside rubbish after Cleanaway Waste Management Ltd bought out the business for $110m.

The Melbourne-based company will take over the reins of making sure the city remains clean after it was selected by the City of Melbourne as the best operator to take over from its Citywide waste and recycling business.

The Cleanaway trucks already operate in the City of Sydney. Picture: NewsWire / Gaye Gerard

Cleanaway’s purchase of Citywide Service Solutions Pty Ltd and its assets also includes a $35m investment to redevelop the ageing waste transfer station at Dynon Rd in West Melbourne.

As a condition of the sale, Cleanaway will lease the Dynon Rd waste transfer station for 35 years and partner with the City of Melbourne to deliver a new, state-of-the-art facility with environmentally sustainable design.

Cleanaway chief executive and managing director Mark Schubert said the new partnership and the redevelopment of the waste transfer centre would enhance sustainability throughout the Melbourne area.

“As Australia’s largest resource recovery and waste management business, we will support these efforts through our extensive experience, commitment to safety, advanced facilities and technology,” Mr Schubert said.

Citywide will no longer be the waste collection service for the City of Melbourne after starting up in 1995. Picture: NewsWire / Ian Currie

“Redeveloping the Dynon Rd site into a modern, community-friendly waste transfer station in partnership with the City of Melbourne will create a best-in-class facility.”

Lord Mayor Sally Capp said the surplus proceeds from the Cleanaway sale would provide go towards the City of Melbourne Future Fund in helping deliver strategic projects that benefit the community.

“The creation of a Future Fund is a milestone for our city – a fund that will help deliver intergenerational city projects,” she said.

“High-quality waste and recycling management is essential for our city – and we’re confident Cleanaway can ensure that Melbourne remains a clean and welcoming place for our community.

“Through this sale, we will partner with Cleanaway to build the best state-of-the-art waste transfer hub in the country to meet the needs of the fastest growing city in Australia.

“We don’t take this decision lightly and have undertaken extensive analysis to ensure that benefits will flow back to the community.”

Cleanaway will take over the waste service from Citywide. Picture: NewsWire / Gaye Gerard

The sale is subject to ACCC regulatory approval.

Citywide chief executive Chris Campbell said employees would be able to keep their jobs despite the change in ownership.

“The waste and recycling business has been an integral part of Citywide and its culture since formation almost 30 years ago, with a number of the current team transferring from the City of Melbourne then as inaugural employees,” Mr Campbell said.

“We are pleased that employees will be able to continue their career and bring their experience, know-how and commitment to servicing Melbourne’s inner-city amenity with a leader in the sector.”