New York Container Terminal on Staten Island has entered a 20-year contract with Covanta Energy to move municipal solid waste in containers in a barge-to-rail transfer beginning March 2015.
Under the agreement, the terminal will receive the containers via barge and load them directly onto railcars for shipment to Covanta’s energy-from-waste facilities. Sealed empty containers delivered via railcar will be loaded onto the barges for return transport to a New York City (NYC) marine transfer station.
Last month, Covanta announced a new 20-year agreement with New York City Department of Sanitation to transport and sustainably dispose of municipal solid waste delivered to a pair of marine transfer stations located in Queens and Manhattan. Queens service is expected to begin in early 2015, with service to the Manhattan marine transfer station to follow in 2016 once the city completes construction work.
Covanta anticipates purchasing barges, railcars, containers and intermodal equipment to fulfill the agreement, with a total investment of approximately $110 million over several years beginning in 2013.
The containerized waste transfer will be a dedicated operation, handled separately from NYCT’s regular container operations. NYCT is investing in berth upgrades for the barges, new barge-to-shore cranes, and other related handling equipment.
Terminal and city officials said the barge-to-rail transfer will reduce truck traffic in the city. NYCT President/CEO Jim Devine said NYCT, Covanta and the city’s sanitation department have been working on the agreement for years.
“This long-term agreement will allow us to create jobs while improving the environment by moving to more efficient barge and train transportation,” he said.