Thursday, May 24, 2012
APM Terminals submits proposal to operate Hampton Roads and inland points
The terminal operations arm of Denmark’s A.P. Moller-Maersk announced it has submitted an unsolicited proposal to Virginia’s Department of Transportation to operate the Virginia Port Authority’s cargo-handling facilities in Hampton Roads and related inland locations in a deal that the company said could be worth between $3 billion and $4 billion to the state over the term of the partnership.
APM Terminals currently owns its marine terminal in Portsmouth, Virginia, and the company now says it would transfer that ownership back to the Commonwealth of Virginia in exchange for the Hampton Roads deal.
“APM Terminals is committed to Hampton Roads through its significant investments and is a trusted partner to ports worldwide,” the company said in a statement.
“APM Terminals successfully designed, built, and implemented the leading U.S terminal, one of the largest public port investments in U.S. history, right here in Portsmouth,” the company said.
The financial return of between $3 and $4 billion in current dollar value to the state of Virginia would be through initial payments, fixed concession payments, revenue sharing, capital investments, and tax benefits, according to APM Terminals.
“We are excited about this potential next step in our relationship with the Commonwealth of Virginia and the Virginia Port Authority,” said Eric Sisco, president of APM Terminals’ Americas region.
“Our proposal provides for the lowest cost, long term solution for future growth at this time of a stabilizing economy and the eventual expansion of global commerce,” Sisco said.
APM Terminals said the Hampton Roads proposal was submitted under the guidelines of the Virginia Public-Private Transportation Act that means it will undergo a detailed review in the coming months.
The website for Virginia’s Office of Transportation Public-Private Partnerships said the deadline for alternative proposals would be July 12.
Here is the link to the official proposal documents: www.vappta.org
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