THE government has terminated Bumi Segar Indah Sdn Bhd’s (BSI) contract to operate the Kuala Lumpur Transfer Station (KLTS) in Kepong.
This comes nearly 19 months before its revised term was due to expire on April 19, 2028, following repeated operational problems.
The contract was terminated in the first week of October.
Alam Flora Environmental Solutions (AFES), a subsidiary of Alam Flora Sdn Bhd, has taken over operations on an interim basis as of Oct 6 while a permanent replacement operator is sought.
A National Solid Waste Management Department (JPSPN) spokesperson said a fresh tender exercise would be carried out to appoint a replacement within six months.
“For now, an interim operator is running the station,” the spokesperson added.
A Solid Waste and Public Cleansing Management Corporation (SWCorp) spokesperson confirmed the termination but said he did not have access to contract details.
He added that BSI was required to repair all damaged equipment before handing the station back to the government.
When contacted, a Bumi Segar manager confirmed the contract had been terminated and Alam Flora was operating the station in the interim.
A senior Alam Flora officer, who spoke to StarMetro on condition of anonymity, confirmed the company took over operations in early October.
“More than 18,000 tonnes of rubbish had accumulated at the station, most of which has since been cleared,” the officer said.
“The good news is waste collection lorries no longer have to travel 60km to Bukit Tagar to unload their waste, saving time and helping crews manage collection rounds across Kuala Lumpur.”
Located along Middle Ring Road 2 (MRR2), KLTS compacts municipal solid waste collected across Kuala Lumpur before transporting it to the Bukit Tagar Sanitary Landfill in Selangor.
The station normally handles up to 2,700 tonnes a day.
The termination follows recurring disruptions.
In August, Housing and Local Government Ministry said the operator’s contract was under review following service problems, including machinery breakdowns that left refuse lorries queueing for up to eight hours.
In a response published in StarMetro on Sept 8, the ministry attributed the backlog and odour problems to damaged equipment and machinery, as well as poor coordination of waste delivery schedules.
Some waste was diverted to the Bukit Tagar landfill to ease the backlog, while BSI was directed to repair its equipment, clear accumulated rubbish and improve cleanliness.
This comes after a major disruption in December 2025 which continued into January, when the station operated at about half capacity and accumulated waste topped 20,000 tonnes.
KLTS has long been plagued by operational problems.
In 2013, previous operator Syarikat Umpan Jaya Sdn Bhd had its contract terminated following operational failures that left rubbish piling up along the MRR2.
AFES then operated the facility until June 2023, when BSI took over.
