High Shipping Costs Are Here to Stay Says Bloomberg
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
COPENHAGEN — The port-operating arm of Danish industrial conglomerate A.P. Moller-Maersk A/S (MAERSK-B.KO), APM Terminals, said Thursday it has made an offer to the state of Virginia to operate the cargo traffic facilities at the U.S. Port of Virginia.
In return for the long-term concession, APM Terminals offers to transfer ownership of its facility in the Portsmouth Marine Terminal at the port to the Virginia administration, in a strategic partnership deal that the company estimates to have a total value to the state of between $3 billion and $4 billion.
The proposal includes operation of freight facilities at the Port of Virginia, which is comprised by four marine terminals and adjacent inland services, all centered around the ice-free, natural harbor of Hampton Roads.
“Our proposal provides for the lowest cost, long-term solution for future growth at this time of a stabilizing economy and the eventual expansion of global commerce,” said APM Terminals Americas Region President Eric Sisco.
Included in the value estimate are initial payments, fixed concession payments, revenue sharing, capital investments and tax benefits, transferring market risk from the Commonwealth to the private sector, APM Terminals said.
The offer has been submitted to Virginia’s Office of Transportation Public-Private Partnerships and will undergo a detailed review in the coming months, APM Terminals said.
-By Flemming Emil Hansen, Copenhagen Bureau
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