Virginia Port Authority signs deal with lines
The Virginia Port Authority said its operating company, Virginia International Terminals Inc., has signed its largest customer to a 10-year contract valued at more than $500 million.
The deal is with a consortium comprising five carriers: COSCO, “K” Line, Yang Ming, Hanjin Shipping Inc. and United Arab Shipping Co.
COSCO, “K” Line and Yang Ming had an existing agreement with VIT and that was incorporated into the new 10-year agreement.
Joe Dorto, VIT’s president and chief executive officer, said the negotiations with Hanjin and United Arab Shipping were ongoing for nearly two years.
The expansion of the north berth at Norfolk International Terminals and reconfiguration of the terminal’s Central Rail Yard were important factors during the negotiation, the port said.
“Operational efficiencies are being created at NIT with the addition of three new Suez-class cranes. A central rail yard that will be served by highly efficient shuttle carriers and double-stack rail service to the Midwest’s most important markets were both factors in the negotiations,” Dorto said.