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BUSINESS DEVELOPMENT AND ORGANIC GROWTH (Notes)
6 Months Ended
Jun. 30, 2014
Acquisitions, Business Developtment and Dispositions [Abstract]  
Business Development and Organic Growth
NOTE 3. BUSINESS DEVELOPMENT AND ORGANIC GROWTH
New York City Waste Transport and Disposal Contract
In 2013, New York City awarded us a contract to handle waste transport and disposal from two marine transfer stations located in Queens and Manhattan. We plan to utilize capacity at existing facilities for the disposal of approximately 800,000 tons per year of New York City's municipal solid waste relating to this contract. Service for the Queens marine transfer station is expected to begin in early 2015, with service for the Manhattan marine transfer station expected to follow pending notice to proceed to be issued by New York City. The contract is for 20 years, effective from the date operations commence, with options for New York City to extend the term for two additional five-year periods, and requires waste to be transported using a multi-modal approach. We have begun to purchase equipment, including barges, railcars, containers, and intermodal equipment to support this contract. We expect that our total initial investment will be approximately $140 million, including the cost to acquire equipment of approximately $110 million and $30 million of enhancements to existing facilities that will be part of the network of assets supporting this contract. These investments commenced in 2013 and will be made over several years. During the six months ended June 30, 2014 and for the twelve months ended December 31, 2013, we invested $38 million and $23 million, respectively, in property, plant and equipment relating to this contract.
Fairfax Energy-from-Waste Facility
In April 2014, we entered into a waste disposal agreement with our client at the Fairfax EfW facility, extending our relationship under a tip fee arrangement effective at the end of the current service agreement in February 2016. The initial term of the new agreement will end in 2021 with two additional five year renewal periods upon mutual agreement of the parties. Beginning in 2016, the client will provide approximately 60% of the facility's waste capacity under the new agreement.
Niagara Energy-from-waste facility
At our Niagara EfW facility, we installed a new natural gas package boiler to augment the steam generation from our EfW boilers, as well as a steam line connection to new customers. The improvements, which began in 2012, were essentially complete by the second quarter of 2014. The boiler is expected to be operational in the third quarter of 2014. Capital expenditures related to these improvements were $3 million for the six months ended June 30, 2014 and $13 million for the twelve months ended December 31, 2013.
York Energy-from-waste facility
In May 2014, we extended the service agreement for the York EfW facility from 2015 to 2020 on substantially the same terms as the existing agreement.
Organic Growth Investments
During the six months ended June 30, 2014, we invested approximately $16 million in organic growth investments, primarily for the Niagara natural gas package boiler ($3 million), Essex particulate emissions control system ($6 million) and various metals recovery systems ($4 million).