Virginia Port nears deal to lease Richmond facility

The Virginia Port Authority is very close to forging an agreement to operate the city of Richmond-owned Port of Richmond, the port's top executive said.

Following a closed session meeting of the port authority's board of commissioners, executive director Jerry Bridges said an agreement should be in place by January and the state agency would begin overseeing operations at the 121-acre inland port facility in February, reported Daily Press (MCT).

Bridges warned that negotiations are ongoing and several details have yet to be finalised.

Under preliminary terms of the deal, the port authority would pay the city of Richmond about US$75,000 a year to lease the port for a five-year period. The two sides would have the option to renew the lease for two additional five-year blocks.

Richmond would continue to own the port and its assets and the state agency would oversee its operations, including maintenance, finance and marketing the facility to shippers.

Instead of using its non-stock operating arm, Virginia International Terminals to run the facility, the port authority would instead opt for a third-party operator, Bridges said.

"We'll either have the company that's currently operating it or another company," Bridges said. "VIT would certainly not operate the facility up there."

That's because of concerns about labour unions. At Hampton Roads' three marine cargo terminals, VIT employs members of the International Longshoremen's Association; Richmond dock workers have for years been represented by the International Brotherhood of Teamsters.

"We don't want any labor unrest," Bridges said. "We don't want to introduce any element that would create conflict. Why create an issue if you don't have to?"

The Port of Richmond's operator, Delaware-based Port Contractors is among the companies that the port authority would consider to run the terminal.

Port Contractors' agreement with Richmond expires at the end of the month, but Richmond officials have said they would seek to extend the contract on a month-by-month basis until a permanent operator is chosen.

The port authority intends to use the facility primarily as a transit hub for a weekly barge service that shuttles containers between Richmond and Norfolk. If it obtains a lease, the port authority would seek to expand the service to three trips a week.

Port officials also expressed optimism on rebounding cargo numbers. Containerised cargo volume was up 10.5 percent for the period from January and October, improving over a horrible
(Source:www.cargonewsasia.com)