Wednesday, July 25, 2012
APM bid to take over Virginia ports faces opposition
The Virginia Maritime Association announced that most of its members do not approve of the privatization of Virginia ports. The majority of those surveyed is clearly in opposition of a take over by APM Terminals, which recently offered an unsolicited bid to manage port facilities at Virginia's Newport News, Portsmouth and Norfolk ports.
Of the 84 respondents polled, 71 percent opposed a change, according to Art Moye, the group's executive vice president, who said that the sample size was representative of the association's 400 member companies. Moye stated the VMA executive committee had not yet weighed in on the APM bid, but the committee plans to make a public statement soon.
APM pitched their bid by saying they would increase port business, but many shipping companies were worried that APM would unfairly favor sister company Maersk Line over other container lines. A local trucking association and an association of warehousing and distribution companies also oppose the APM deal.
Responding to the skepticism, APM modified its bid on Monday, adding stipulations to prevent favoritism. The new provisions state APM will "honor all existing contracts between VIT and its customers, provide competitive prices and services and allow for independent oversight by the Virginia Port Authority," according to the Daily Press.
The port authority will make its decision in November 2012.
For more of the Daily Press story: dailypress.com
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