Virginia Port Authority wants to lease ailing Richmond

The Virginia Port Authority has proposed leasing the struggling Port of Richmond for US$1 a year for five years, with three possible five-year renewal periods.

The amount, length and other terms of the proposed contract were spelled out in a two-page "non-binding letter of intent and preliminary terms" from the Virginia Port Authority that was released by the city of Richmond, reported The Virginian-Pilot (MCT).

In late July, the Virginia Port Authority denied the same request, citing an exemption related to the possible impact on the authority's bargaining position.

The Port of Richmond, on the James River south of downtown, is owned by the city of Richmond, managed by the Port of Richmond Commission and operated by PCI of Virginia, a private company. PCI's contract expires on November 30.

The city of Richmond requested bids from potential port operators on July 2, with a deadline of August 4.

A bid-review process is still under way and Richmond officials said they could not release any information about other offers submitted.

The Richmond port has been hurt by the global economic downturn and two specific events. It lost weekly transatlantic shipping service last year when Independent Container Line shifted its calls to Wilmington, North Carolina. It also lost its long-term port operator within the last two years.

As business withered, it didn't have the working capital to maintain its infrastructure.
(Source:www.cargonewsasia.com)