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Covanta, New York City Agree to Waste Contract

Covanta Holding Corp. has reached an agreement with New York City to handle and dispose of about 800,000 tons annually of municipal solid waste.

The Morristown, N.J.-based Covanta will handle the transport and disposal of waste for the Department of Sanitation from two marine transfer stations in Queens and Manhattan, according to a filing with the Washington-based Securities and Exchange Commission.

The company expects to begin service for the Queens transfer station in early 2015 and service in Manhattan to come in 2016 with the completion of construction work by New York City.

Covanta plans to purchase equipment, including barges, railcars, containers, and intermodal equipment at a cost of about $110 million.


The agreement is for 20 years with New York City having options to extend the term for two additional five-year periods. It calls for waste to be transported through a multi-modal approach.


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