“By allowing this concession to be held by one single, private, foreign entity we believe that you will be causing irreparable harm to the future of the Port of Virginia,” said S.Y. Kim, managing director of Hanjin Shipping America, in a letter sent to Virginia Gov. Robert F. McDonnell.
Kim sent similar letters to Michael J. Quillen, the chairman of the VPA, and Art W. Moye Jr., executive vice president of the Virginia Maritime Association.
“This monopoly will clearly be an obstacle to transparency in port operations and competitive market based pricing. As a subsidiary of one of our ocean carrier competitors (Maersk Line) we believe that we will be disadvantaged if we continue to call our services at the Port of Virginia in Norfolk,” Kim warned.
“I know that some believe that changing the operating structure at the VPA will benefit their own pecuniary interest. However, such a shift actually could harm many more shippers in the long run,” he added.
The Virginia Pilot newspaper also reported over the weekend that the chief executive officer of “K” Line America also expressed concern about the proposal, but American Shipper was not able to immediately obtain a copy of that letter.
| Connaughton |
Last month APM Terminals made a proposal under Virginia’s Public-Private Transportation Act of 1995 to transfer ownership of its terminal in Portsmouth and operate the port facilities in Hampton Roads and inland under a 48 year concession. It valued the deal over its 48-year term as being worth between $3.16 billion and $3.9 billion.
Connaughton said Monday in an interview with American Shipper that the state’s Office of Transportation Public-Private Partnerships has received expressions of interest by several other companies in possibly operating VPA facilities.
The state has set a July 12 deadline for companies to make proposals for the port facilities. – Chris Dupin
