APM Terminals: unlocking economic value
The Port of Virginia, blessed with superb approaches, unimpeded harbor, and a highly skilled and motivated ILA work force, faces continuing challenges in an era of economic globalization. A decade ago APM Terminals conceived, designed, built and put into operation the hemisphere’s most advanced container facility in Portsmouth, Virginia in preparation for today’s challenges. Today APM Terminals proposes an improved partnership with the Commonwealth of Virginia to ensure the Port of Virginia is prepared for tomorrow.
The partnership will be both a win and a windfall for the Commonwealth and reinforce APM Terminals’ long commitment to Virginia and the region it serves. APM Terminals and its predecessors have a history dating back more than 30 years in Hampton Roads. The company is proud to call Portsmouth home to its Americas Regional Headquarters.
APM Terminals, with nine ports in the U.S. and 56 worldwide, is positioning the Port of Virginia to handle the next generation of vessels that the Panama Canal expansion is likely to bring. APM Terminals Virginia facility is a key part of that strategy. The $540 million terminal is the most environmentally friendly container facility in the United States, and reflects the largest private investment of any kind in Virginia’s history.
Opened in 2007, the terminal is a substantial contributor to the Region’s presence in the global economy. However, container vessels keep increasing in size and the 2014 target completion date for the expansion of the Panama Canal will usher in a new era for international commerce. Will the Port of Virginia be ready? APM Terminals is prepared to ensure it is.
An Innovative Strategic Approach
Given the shipping industry’s rapid pace of change, there is a clear need to define a long-term, overarching, strategic plan with the Commonwealth to sustain and grow the Port of Virginia as an economic engine for the Region. This is precisely why APM Terminals is proposing an innovative 48-year partnership with the Port of Virginia. APM Terminals proposes to further invest in the ports in Virginia by doubling the capacity of the APM Terminals Virginia facility and improving the efficiency of the entire terminal complex by applying global best practices that have helped to make APM Terminals a premier terminal operator. The partnership will further elevate Virginia’s stature as an important player in global trade, create much needed job growth in the Commonwealth and drive economic prosperity for the people of Hampton Roads.
APM Terminals’ proposal calls for concession payments, taxes, capital investment and revenue sharing over the life of the agreement that has a value to the Commonwealth of between $3 billion and $4 billion. As it does around the globe today, APM Terminals will be responsible to optimize the Port’s operation and market its enhanced capabilities to the global shipping community.
Additionally, APM Terminals will assume the responsibility for funding equipment purchases and maintenance, construction costs and port improvements, thus saving Virginia more than $1.1 billion in capital investment requirements over the life of the partnership. The Commonwealth will then be free to redirect valuable capital to other important transportation-related infrastructure projects around the state.
APM Terminals has a worldwide reputation for technical expertise, operational excellence, innovation, and a track record of superior port infrastructure development. These will be crucial components for attracting international commerce to the region over the coming decades.
Lloyd’s List Awards recently honored APM Terminals with its prestigious 2012 “Port Operator of the Year Award”. This award honors “the best that shipping industry has to offer…the boldest and the brightest…the innovators and the visionaries.”
Does the Commonwealth of Virginia deserve anything less?
A New Model for Economic Growth and a Promising Future
APM Terminals has a distinct vision for the future of the Port of Virginia focused on optimizing the timing of investments to maximize growth. The proposed partnership will also allow the Port to meet the new challenges of economic globalization and take another step towards building its future in international commerce.
As part of the agreement, APM Terminals will transfer ownership of its Portsmouth terminal to the Commonwealth of Virginia. With the acquisition of the APM Terminals Virginia facility, the Virginia Port Authority and the Commonwealth will achieve the unification of all Port facilities that it had envisioned thirty years ago.
In addition to the economic advantages of the proposal, the Commonwealth will be ideally positioned to focus on long-term strategy, governance, and oversight while empowering APM Terminals to do what it does best—operate ports and generate economic growth for the region. Eighty-five percent of ports in the United States are structured with the government ownership/private operator model proposed by APM Terminals.
APM Terminals’ strategic plan will provide world-class port operations and drive the Port of Virginia’s competitiveness in preparation for the Canal expansion. APM Terminals has nurtured global relationships with the world’s leading shipping lines and cargo owners, as well as agreements with key vendors and suppliers to the port. This is a unique competitive advantage on the global playing field. As cargo volume handled at the Port grows through APM Terminals’ partnership with the Commonwealth, local industries and economies tied to logistics will grow as well, unlocking value to the overall benefit of the regional and state economy.
APM Terminals’ industry leadership, strategic investments and global vision are the right fit at the right time for the Port of Virginia and the people of Hampton Roads.
For more information visit www.virginiaportproposal.com and www.apmterminals.com.