A 1 m³ vacutug in Khulna: 208 jobs in a year, Tk 7.28 lakh revenue, Tk 1.46 lakh profit
A community development committee in Khulna's ward 17 made a Tk 145,780 profit in a year emptying septic tanks and pits with a small vacutug. Over the same period the city corporation's larger vacutug ran at a loss for lack of demand.
In Khulna city, mechanised emptying of septic tanks and pits is provided by Khulna City Corporation (KCC) and three community development committees (CDCs). The CDCs' 1 m³ vacutugs were donated by a UN agency in 2012. Small vacutugs are used most because they can enter lanes under 2 m wide. A study published in 2021 analysed the accounts of the ward 17 CDC from February 2018 to January 2019. It received 208 applications. The fee was Tk 1,000 per trip (per m³) and emptying one tank took 3.5 trips on average, giving revenue of Tk 728,000 for the year. Staff, fuel, maintenance and other costs (communication, advertising, safety gear) came to Tk 582,220, leaving a profit of Tk 145,780, although the vehicle's capital cost and depreciation were not counted. By contrast, KCC's 2 m³ vacutug (imported for about Tk 3.5 million) received 156 applications at a Tk 1,500 fee; revenue of Tk 235,560 against costs of Tk 467,145 meant a loss, mainly because of low emptying demand in the city. There, staff made up 69% of costs and fuel 22%. The researchers calculated that a 2 m³ vacutug needs at least six trips a day to be viable. The survey found about 70% of households prefer mechanised to manual emptying because of the smell and neighbours' objections, but many households are unaware of the CDC service.
Lessons
- 1.Profit depends on trips per day and the fee; secure a steady flow of jobs to cover fixed staff costs.
- 2.A small vehicle that fits narrow lanes wins more work in dense neighbourhoods.
- 3.Many households do not know the service exists, so advertise it; and do not calculate profit without the vehicle's cost and depreciation.
Published with the person's permission, without revealing who they are.
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