Virginia considers withdrawing terminal privatisation plan

THE State of Virginia is considering backing out of its plan to privatise three container terminals with Governor Bob McDonnell saying he would not consider deals that were not extremely advantageous.

The Virginia Port Authority (VPA) had received several bids for the facilities, reported the Newport News Daily Press, including a Goldman Sachs-Carrix joint venture, CenterPoint Properties and the Carlyle Group.

Under the proposed agreements, operators would gain the right to issue annual payments to the state in exchange for whatever profits they could make from the terminals and inland intermodal hub.

Second-thoughts arise from an appreciation that bids come at a time of weak markets and may, in today's improving climate, fall short of full value.

But the VPA terminals continue to struggle to get business with AP Moller and Maersk reportedly in talks to lease their facility.

Meanwhile, the port authority has received a stamp of approval from the state's environmental agency to push ahead with the building of an additional terminal at Craney Island. Given the current overcapacity and lack of financing opportunities however, construction on the project is not expected to begin until the latter part of the decade at the earliest.

(Source: www.schednet.com)