What are Transfer Stations and Why They Matter To Waste Companies

What are Transfer Stations and Why They Matter To Waste Companies

Transfer Stations are locations where Waste Companies dump waste that they've picked up from several locations either during their daily pickup routine or from dumpster rentals, construction or other similar activities. Traansfer stations then usually have much larger vehicles available that are used to transfer waste to either landfills, recycling facilities or recovery/sorting facilities. At these facilities, waste is then sorted into recyclable or trash that must be disposed.

The proximity principle advocates that waste should be disposed of (or otherwise managed) close to the point at which it is generated, thus aiming to achieve responsible regional level. Where this is not possible, priority should be given to transportation by rail or water. This principle is widely accepted as a best practice and means that Transfer Stations are here to stay in the Waste business.

Sounds like a pretty boring operation, right? Well, if you are a Waste Management company, that may not be the case. Transfer Stations represent several key advantages to Waste companies that could mean the difference between a successful operation in a certain county or district.

1. Wide Access to Clients: This is the biggest advantage in our opinion. When you own a Transfer Station, a lot of local organizations like city councils, schools, construction and building contractors, and local businesses are your recurring clients automatically. They have nowhere else to go but you, which presents a tremendous sticky residual business opportunity as well as the ability to offer premium or value added services to these clients. For instance, you could now offer dumpster rentals to your schools which are either your direct or indirect client already.

2. Control over Dumping Destinations: Owning a transfer station usually means full access to all landfills and sorting/disposal locations in the area. This means that the Waste Company that owns the Transfer Station now gets to choose what the best place to dump a certain waste is. Other companies that don't have the Transfer Station, on the other hand, must use your location to off load their Waste.

3. Logistical Advantages: Controlling the Transfer station provides additional locations to store trucks and equipment to enable faster response to clients and smaller holding periods between when waste is picked up to when it's delivered. This also enables to selection of the best routes and times of the day for waste disposal, offering further reduction in costs.

4. Federal Grants and Marketing Advantages: Transfer Stations can often avail of federal grants related to environmental causes. They can also market themselves as the owner of the local Transfer station, something that businesses see as a favorable factor in their decision to select a Waste service provider.

Tranfer Stations become available occasionally for sale and usually get sold for high premiums owing to these reasons.

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