TRUSTe, the leading U.S. contractor of trash collection, will start offering contracts to overseas companies to haul trash off its streets, which could increase its profitability.
Trusted Recycling, which handles around 70% of all trash in the United States, is expected to begin offering contract-to-service contracts to firms including D.E. Shaw Inc. and Waste Management Corp., according to a person familiar with the matter.
The company, which has been buying trash from the federal government for decades, is not part of TRUST eases the process of outsourcing trash collection to foreign firms that may also pay better rates than it does.
This could help TRUST generate more revenue as it expands into other areas of its business, the person said, asking not to be identified discussing a private matter.
Trusted recyclers is expected in the first quarter of 2019 to reach $7 billion in revenue and grow to $8.5 billion by 2027, the company said in a statement.
The company has been growing by more than 40% annually since its 2010 launch, according to company filings.
Trusting Recyclers declined to comment.
Truste has been under scrutiny since it started outsourcing trash to private contractors last year, after the Department of Homeland Security ordered companies like D.C.-based Trusted Recycle to do so in response to a surge of trash-collection calls in recent years.
TrUSTe has hired more than 60,000 people to clean up trash from parks, schools, hospitals and other public areas, and the company is expected be in the $100 million to $150 million range in 2019, according the person familiar.
It said it is also looking to expand its business overseas.
Tracking trash is one of the few areas where TRUST is competitive, the two people said.
Tragedy of the commonsThe TRUST company is one the only firms that offers to haul all of the trash out of the country, and it has been a pioneer in the field.
The U.N. Convention on the Protection of New World Order and other international treaties make it illegal to haul garbage in international waters, such as the U.K. or the United Arab Emirates, and so the country has no choice but to pay TRUST for its work.
“Trusted recycling has been the best solution to meet this problem,” said Dan Smith, a lawyer at the Public Citizen Law Center who represented a coalition of U.T. and other companies against TRUST.
Trash collection is a high-volume, high-margin business for TRUST, which employs about 4,000 workers.
A contract with D. E. Shaw was a “big step forward,” said the person, who spoke on condition of anonymity because the deal was private.
TRUSTe is not an independent contractor but instead works for the U,S.
Department of Agriculture, the Environmental Protection Agency and the Federal Emergency Management Agency.