Virginia Port Authority receives two more terminal bids

THE Virginia Port Authority has received two additional bids from companies competing to operate VPA-owned container terminals over a term of 60 years.

The two new bids were submitted by the Carlyle Group, a Washington-based private equity company, and Carrix Inc, based in Seattle. They are reported to be now competing with a bid submitted in March by CenterPoint Properties, a Chicago-area warehousing firm, reports American Shipper.

Up for grabs are VPA's marine terminals in Norfolk, Portsmouth and Newport News, as well as an inland intermodal terminal in Front Royal, Virginia. The winning bid would also acquire the right to develop a new container terminal at Craney Island.

CenterPoint is said to have made its proposal under Virginia's Public-Private Transportation Act of 1995 that allows private companies to enter into agreements to construct, improve, maintain and operate transportation facilities.

According to the report, CenterPoint has said its proposal would provide US$8.9 billion in total value to the commonwealth over the life of the concession, or $3.5-billion in today's dollars.

But the decision is not expected to be announced any time soon, as Virginia Transportation Department officials have said it could take them another year or more to make a final decision on privatisation.

CenterPoint is reported to be keen to control the flow of freight through the port to support a new $325 million logistics park it plans to build nearby in Suffolk, Virginia. It could then feed its warehouses in the Chicago area with goods delivered to the east coast by double-stack container trains running along the proposed Norfolk Southern's Heartland Corridor and CSX's Capital Gateway rail projects.

(Source: Transport Weekly)