APM Terminals (APMT) has submitted a proposal for a long-term concession for the operation of the US port of Virginia.

The Maersk subsidiary stressed that a major benefit would be that APMT “offers an expansion opportunity that cannot be matched in terms of investment amount per teu of capacity created”.

The proposal to the Commonwealth of Virginia requests a strategic partnership with the port of Virginia and entails the state government granting APMT a concession for the operation of Norfolk International Terminals, Newport News Marine Terminal, Portsmouth Marine Terminal, APM Terminals Virginia (APMT VA) and Virginia Inland Port.

In return, APMT will contribute its terminal asset and make annual financial contributions and investments to Port of Virginia.

John Crowley, APMT senior VP, law and regulatory affairs, said: “We are looking now at the next step past the lease [its terminal is operated under a 20-year lease]. This is the right partnership and a strategic opportunity to direct the port facilities.

“Our objective is to operate the terminals well and to work strategically for the right developments.”

The total financial value to the state over the term of the partnership is estimated at US$3-4 billion through initial payments, fixed concession payments, revenue sharing, capital investments, and tax benefits, transferring market risk from the Commonwealth to the private sector.

The operator said: “In addition, APMT will take full responsibility for the investment and development of the next phase of APMT VA, which will increase capacity by an estimated 1.2 million teu. This expansion equates to more than 60% of the current port of Virginia total throughput.”

Source : http://www.lloydsloadinglist.com