Virginia adds another long-term contract with CSAV pact
Virginia International Terminals, the private operating company of the Virginia Port Authority (VPA), has signed a five-year contract with Chilean shipping line Compania Sudamericana de Vapores (CSAV).
The contract also includes an option for five more years, the port said.
'CSAV has a long history in Virginia — about 45 years — and this contract will continue what has been a very good relationship,' said Joseph A. Dorto, VIT's general manager and chief executive officer, in a statement. 'CSAV's business is growing and it wants to insure that it has room to expand in Virginia.'
The contract guarantees that CSAV will move a minimum of 75,000 TEUs through Virginia, though the number could top 125,000 TEUs. The contract's value, Dorto said, could exceed $50 million, depending on CSAV's container volume.
CSAV's vessels make weekly calls at Newport News Marine Terminal, one of the three deepwater marine terminals owned by the VPA.
The contract went into effect Nov. 15, and expires Nov. 30, 2011. At that time, CSAV will have the option to sign for five more years and in doing so may request that its vessel calls be moved to Portsmouth or Norfolk.
The CSAV contract is the second long-term deal announced by the VPA in the last month. In December, the authority reported a 10-year agreement with the shipping consortium New World Alliance. Since early 2005, the Grand Alliance, CKY, China Shipping, Turkon, MSC, ACL, CMA-CGM and Emirates have all signed 10-year agreements with VIT.