NYC Trash Hauler Makes Big Bet to Keep on Trucking
Last month, Louis “Gino” Fava made a large investment in his garbage collection business – he spent $ 450,000 on a third garbage truck. After all, there is a big change in New York’s private garbage handling scene, and he has to be ready.
The 75-year-old owns Liverpool Carting Co., a garbage collection company that serves around 500 businesses primarily in Manhattan’s Upper East Side, including many boutiques on Madison Avenue. “I have all the high-end stores there – Cartier, Tiffany, Prada, all of them,” says Mr. Fava. “It’s like Vogue magazine!”
The Bronx-based company, which makes about $ 2 million annually and employs 10 people, including three office workers, each with the company for more than 25 years, is typically profitable. Liverpool is now in debt thanks to the third truck. But Mr Fava says he didn’t have much choice.
Under the Commercial Waste Zones Act passed in November, New York City will soon be dividing the five boroughs into 20 zones and placing contracts with three private waste transport companies in each zone. Under the new law, companies in each zone must sign a service contract with one of the three karting companies selected by the city for that zone.
The city says the plan will cut private garbage truck traffic by half. But it leaves the fate of companies like Liverpool in the air. In some cases, they compete for contracts with companies that are up to 30 times their size.