New World Alliance commits to VPA for another 10 years

New World Alliance commits to VPA for another 10 years Virginia International Terminals (VIT), the operating company of the Virginia Port Authority, this week concluded six months of negotiations by signing a 10-year, $175 million contract with its third largest customer, the New World Alliance.
   The New World Alliance comprises Asian carriers APL, Hyundai Merchant Marine and Mitsui O.S.K. Lines and has been serving the Port of Norfolk since 1998.
   “I believe this contract should be worth more than $175 million because that value does not include any (cargo) increases New World may have — that amount is the minimum,” said Joe Dorto, VIT’s chief executive officer and general manager.
   “Feasibly, over 10 years, this contract may be worth closer to $200 million. Like so many of our other customers, the leaders at New World wanted to guarantee a place for their ships and guarantee capacity at our port. We now have 81 percent of our business wrapped up in 10-year contracts,” he added.
   Since early 2005, the Grand Alliance, COSCO, “K” Line and Yang Ming of the CKYH Alliance, China Shipping, Turkon, MSC, ACL, CMA-CGM and Emirates have all signed 10-year agreements with VIT.