Tuesday, April 22, 2014

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Virginia Governor says APM wants out of port lease

After naming five new Virginia Port Authority board members on Thursday, Gov. Terry McAuliffe told The Pilot that APM wants to sell its terminal to the authority and that negotiations on a possible deal are about to commence.

Gov. McAuliffe had told the local chamber of commerce last month that the VPA's 20-year lease of APM Terminals' Portsmouth container facility was one of the worst lease deals he had ever seen.

"We don't comment on matters such as this involving our facilities," said Eric Sisco, president of APM Terminals North America.

"Listen, they want out of it," said McAuliffe. "They actually came to us recently and wanted us to buy it back from them. I don't want to get into the number, but the number was ridiculous, not even in the ballpark."

When he was asked if APM asked for more than $600 million, McAuliffe said yes.
"It was so unreasonable and unacceptable, we rejected it immediately," he said.
"Listen, it's got to make sense for us. I'd like it to make sense for them. I mean, we've got to get to a place - but we're nowhere even close today."

The lease agreement, almost 4-years-old, is projected to cost the authority more than $70 million a year by the time the deal ends in 2030, and more than $1 billion in total.

hamptonroads.com


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