Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Bill Fisher - Raymond James.
Bill Fisher – Raymond James
You talked about the zerosort and the new facilities on recycling FCR. I think you’re doing around 1 million tons of shipments annually. As you get all these on I realize they are over the next twelve months or so, but I mean what kind of capacity are you effectively adding in terms of maybe tons or however you want to look at it?
John Casella
Well in most cases when we take a facility from the dual streams to zerosort, we are looking at the potential of hauling the tonnage, but its again the situation Bill where you’re going to ramp that over a period of time, but in almost every case we will be doubling the capacity, so if we are handling 100,000 tons we would be able to handle 200,000 tons. So depending upon the original size of the facility, we would really look to double the capacity of the facility as we add the zerosort or single stream capacity to the facility and the technology to be able to do that.
I mean one of the powers of that whole process is we are really adding value to invested capital as already in place by better utilizing that asset on a 24 hour day basis as opposed to where recycling facilities have been historically a one shift operations, it just makes no sense.
So I think it really depends on the total capacity that the facility was originally designed for and then it will be ramped over a year period of time, but interestingly enough our upper mass facility, we are able to ramp that facility from above 3,000 tons a month to almost 9,000 tons a month in about a six months period of time. So that’s in the middle of a very large market obviously but that’s an example of how that facility ramped.
Bill Fisher – Raymond James
Okay, I guess the follow up related is I think you cited like six facilities or so. If you look at it over the next year and a half I mean would it be on the order of another 100,000; 200,000 tons to that million or what kind of delta?
John Casella
Well I think Bill Detroit is an example, it’s about a 50,000, 60,000 ton facility and we believe that’s not single streamed right now. We believe that that’s very single stream enabled or capable of being enabled and so that market could easily support and grow to 100,000 tons. We’ll see similar growths at Camden and in Philadelphia in terms of being able to reach into the New Jersey market. We are contemplating some additional single stream conversions in New Jersey as well.
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