VPA authorized to sign APM terminal lease

VPA authorized to sign APM terminal lease    The Virginia Port Authority board on Thursday unanimously approved an agreement to lease the privately held APM Terminal facility in Portsmouth for 20 years.
   VPA and APM officials are to finalize the lease on June 30, and Virginia International Terminals, the port's non-profit operating arm, will officially take over operations on July 6, the two parties said.
   State officials announced on May 13 a tentative deal with the terminal operating subsidiary of Danish shipping conglomerate A.P. Moller – Maersk to lease the new marine terminal for $40 million per year over 20 years, and share revenue with APM Terminals for volume in excess of 500,000 TEUs per year.
   VPA approval of the deal was pushed back a month in order for closing documents to be completed.
   APM Terminals said its Americas region headquarters would remain at the Portsmouth site.

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   'APMT has made a significant investment in Hampton Roads and we believe in the long-term success of the port,' said Eric Sisco, president of APM Terminals Americas, in a statement. 'It made good business sense for us to work with the port authority to address the market situation and rationalize the port's capacity. Ultimately, the greatest benefits for all stakeholders are gained by integrating our operations under the VPA umbrella. We are looking forward to completing the final steps in this process.'
   The lease contains a framework that would allow the VPA and APM to jointly expand the facility from 1 million to 2 million TEUs of capacity. Such a step would allow the port to automatically extend the lease for an undisclosed period of time.
   The three-year-old terminal handled 427,000 TEUs last year. The lease consolidates VPA's control of all four container terminals in Hampton Roads.

Bridges

   “This may be the most important day for The Port of Virginia since unification of the marine terminals back in 1982,” Executive Director Jerry Bridges said. “All the major cargo operations in the harbor are going to be operated by the VPA and this creates and unparalleled set of opportunities for us.
   'We can now market ourselves as one port with diversified cargo handling capabilities. Whether the customer is moving containers, bulk or breakbulk commodities or rolling stock, The Port of Virginia is well-positioned to accommodate these needs. This is a tangible and significant opportunity for the Commonwealth.” ' Eric Kulisch