Cost of establishing a recycling collection scheme

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To establish the means of providing a bag type collection scheme servicing one collection round of 5000 dwellings, an initial capital expenditure between $79000 and $123000 would allow for the purchase of land for siting the collection and separation depot, a one to three tonne collection truck, a forklift to move larger containers around the depot and to off-load the collection truck, sufficient collection bags to operate an exchange system on the day of collection for each dwelling within the collection round, and a Marine Dealer's Licence.

Table 1a provides a general breakdown of the expense involved in establishing this type of recycling o scheme. Land prices quoted are for 1000m of light industrial land within the Perth metropolitan area (June, 1990). The prices include an on-site shed which will provide office space and some under cover storage.

Should the operator have ready access to this type of land, and a suitable truck to operate the collection, then the initial outlay can be reduced to between $9000 and $24000 for a bag collection scheme.

It Is necessary for the operator of the recycling scheme to obtain a Marine Dealer's Licence under the Marine Stores Act. 1902. This allows for the collection and selling of all materials suitable for recycling, as discussed within this paper.

Lease or rent


Minimum cost expected

Maximum cost expected

Land (with shed)

$45 to $50 per m2

$78 to $85 per m2

$45000 (1000m2)

$85000 (1000m2)

Collection vehicle

(1 to 3 tonne)

new used

$25000 $29000


(1 to 3 tonne)

new used

$250 per month

$17000 $18000



Collection containers

bags cartons crates

$0.60 each $1.50 each $8.00 each

$6000 $9000 $40000



Table 1a: Capital expenditure in providing a recycling collection scheme


Total cost

Land and vehicle supplied



$79000 to $123000

$9000 to $24000



$82000 to $126000

$12000 to $27000



$113000 to $157000

$43000 to $58000

Table 1b; Estimated capital cost

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