Hi JB
Sounds reasonable logic to me, why take a tonne at 25% rate and fill your finite resource when you could fill it at 100% rate.
Only reason I see to go against this logic is time. Some rough figures to explain: if you had for example one million tonne capacity at your site and were happy with a box trailer / ute dominated business model, then your site may have say a 15yr life assuming around 200 vehicles a day. If you were to tender for and win access to one million tonnes of PASS, you could fill your tip in one year. Earnings for that year would be a windfall. But you have killed off your goose early by grabbing to many eggs in advance.
So there is a financial decision to be made, and a lot hinges on the availability of future sites. I admit if I was a tip operator I'd be doing the sums to see if it might be worth it or not because everyone loves a windfall year. But I'd also love to be the owner of the last lot of tips within close proximity of the suburbs if others have filled up and closed as supply and demand would allow you then to be charging significantly more per load than those current quotes.
They're my thoughts, I think it will be a competitive process and there will be a few chasing the rights. Would love NAG's to nail a contract to store PASS and hopefully they do. But I think they will have to earn it to get it as I can't see everyone passing on getting some of that windfall.
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Hi JB Sounds reasonable logic to me, why take a tonne at 25%...
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