Enviromental Engineering:

Plying the Integrated Waste
Management Value Chain

SembCorp Environmental Management (SembEnviro), Asia’s premier environmental services company, presently operates in 17 cities spanning 5 countries. Offering total integrated environmental management solutions including collection and post collection of waste, recycling and recovery, waste-to-energy, industrial and commercial cleaning and cleansing, environmental consultancy and technology, conversion technologies and industrial biological treatment, the company serves 1.6 million households, 40,000 commercial and industrial clients and some 5,450 healthcare establishments.

In line with its strategy, SembEnviro continually targets more attractive secondary markets. From Australia, to India to China, SembEnviro is steadily making in-roads and engaging itself in the integrated waste management value chain, teaming up with local players to provide total integrated waste management solutions customized for the various markets.

Stable income from municipal sector, complemented by the industrial and commercial sectors
In Singapore, Environmental Engineering is currently the largest player in municipal waste management, commanding 55% of the market,
servicing 5 out of 9 geographical sectors, and serving close to 550,000 households locally. This provides a stable base for SembEnviro while the industrial and commercial business segment continue to grow to form a second stable income stream.

SembEnviro’s Competitive Edge
In Singapore’s competitive and liberalised municipal waste market, SembEnviro has proven that it has what it takes to take on established European players. Retaining the largest share of the market, it has remained the only home-grown player amongst local municipal operators1. SembEnviro President and CEO Ms Loh Wai Kiew quips, unfazed, “Competition is good for us all, and motivates us to drive ourselves further in terms of efficiency and our technological edge.”

SembEnviro’s efficiency gives reason for this confidence. It has re-engineered all operations under its Integrated Waste Information System (i-Wis), incorporating Global Positioning Satellite tracking of its fleet of over 300 vehicles. Real time updates can be obtained at any time, even remotely, via company PDAs. This enables SembEnviro to respond quickly to developments on the ground, swiftly redeploying its staff and vehicles if necessary. Cost-wise, these IT-based management and logistics systems have enabled the optimisation of SembEnviro’s resources, and allowed it to cut reserve capacity from 40% to 4%.

In addition, SembEnviro continually develops in-house technology to keep it at the forefront of smart solutions for its customers. Examples include the Enviro-EZ – a chute bin collection system developed for HDB buildings2 leveraging on mechanisation - and the Singmatic Roll-on Suction Equipment. The latter is a revolutionary pneumatic refuse collection system designed for large developments with high volumes of refuse, requiring the highest standards of hygiene and acute handling efficiency. The latest is the Recyclables Intermediate Chute Storage System, an innovation enabling round-the-clock recycling in high-rise buildings.

A third factor, which is also SembEnviro’s greatest asset, is its human capital. A committed and productive workforce built through superior job re-design and continuous skills upgrading and training, SembEnviro’s staff thrive on innovation and industry. Further adding to SembEnviro’s competitive advantage is its customer-centric approach and its commitment to provide added value to its clients. SembEnviro operates a call centre serving as a channel for feedback from consumers, customers and authorities. In addition, its supervisors on the ground are equipped with PDA mobile phones, to give instant feedback on quality management, grading of service providers and attendance monitoring.

SembEnviro taking its trucks abroad
Not content to just be a leading local player, SembEnviro’s trucks are also hitting roads abroad.

In February 2005, SembEnviro announced its intention to invest RMB 40 million (S$8 million) to take a 40 per cent stake in a new Shanghai-based joint venture, Shanghai Environment SembEnviro Waste Connections Co., with its partner, Shanghai Environment Investment. The new joint venture will take over 17 corporatised waste collection companies operating in various districts in Shanghai.

The hub of China’s booming economy, Shanghai city generates over 16,000 tonnes of municipal solid waste per day. The liberalisation of its waste market, the first exercise of this scale in China, began in June 2004. SembEnviro intends to leverage on its successful corporatisation of SEMAC back home to launch its play as first-mover into this emerging market.

Summing up what her business is all about, Ms Loh says, “In a nutshell, we are a stable and resilient business even during adverse economic years. With various markets abroad opening up for privatisation, our overseas footprint is also growing as we take advantage of these new opportunities.”

1 As at December 31, 2004
2 Housing and Development Board (HDB) buildings serve as housing for 84% of Singapore’s population, in the form of government-developed flats.