City of Melbourne and Citywide sell waste business to Cleanaway

The City of Melbourne and Citywide have announced their decision to sell the cleaning operator’s waste business to Cleanaway Waste Management Limited (Cleanaway).

Lord Mayor Sally Capp appeared alongside Citywide CEO Chris Campbell and Cleanaway’s CEO and managing director Mark Schubert on June 24 at the Dynon Rd Waste Transfer Station in West Melbourne.

The council, which owns Citywide, said it had worked with the company’s board to identify a buyer for the business, with Melbourne-based Cleanaway chosen as the best operator to deliver world-class waste collection services.  

The deal includes Cleanaway’s $110 million purchase of Citywide’s waste and recycling business and assets, and a $35 million investment to redevelop the aging waste transfer station at Dynon Rd in West Melbourne. The redevelopment will be boosted by a further $10 million from the City of Melbourne. 

The sale is subject to customary conditions precedents, including Australian Competition and Consumer Commission (ACCC) regulatory approval.  

The council said the surplus proceeds from the sale to Cleanaway would provide “a once-in-a-generation opportunity” to establish a City of Melbourne Future Fund, which will deliver strategic projects that benefit the community for decades to come.  

The Lord Mayor said the creation of a future fund was “a milestone for our city – a fund that will help deliver intergenerational city projects.”

“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,” Cr Capp said.

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.”

As a condition of the sale, Cleanaway will enter into a 35-year lease of the Dynon Rd waste transfer station and partner with the council to deliver a brand-new, state-of-the-art facility with environmentally sustainable design.  

The Dynon Rd waste transfer station is one of the largest of its kind in Victoria – and the City of Melbourne said it is working to ensure it remains at the forefront of waste management and recycling in Australia.  

Cleanaway specialises in managing municipal, commercial, and industrial waste services in Melbourne, and the council said that services for residents would be improved through investments in new technology to “better accept and consolidate waste”, including general household rubbish, organics, glass, and electronics. 

“We are looking forward to welcoming the Citywide waste team to Cleanaway and building strong partnerships with their customers and councils,” Mr Schubert said.

“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.” 

“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. This will serve residents and businesses while enhancing sustainability and waste circularity in the Melbourne area.” 

Citywide Service Solutions Pty Ltd is a wholly owned subsidiary of the City of Melbourne, which was established in 1995.

Its CEO Chris Campbell said its waste and recycling business had been an integral part of the company and its culture since it was formed, with a number of the current team transferring from the City of Melbourne then as inaugural employees.

“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,” Mr Campbell said. •