The Virginia Port Authority rejected two different offer seach
worth billions of dollars that would have privatized the operations of the
state’s coastal terminals for several decades. The vote was unanimous among the
authority’s board of commissioners.
Port operations currently support 345,000 jobs around the
commonwealth and are a major driver for Virginia’s economy, producing an
estimated $41 billion in business activity. The proposal to privatize
operations of the Port of Virginia was confronted with widespread opposition by
many of those with port-related jobs. The main concern? They were fearful that
a company would look out for its own interests besides those of the people of
Virginia and that they could potentially discriminate against competitors. Many
of those who were accustomed to dealing with VIT argued that the agency was
doing a good job overall and, coordinated by the Virginia Maritime Association,
pushed back against the idea of any major change.
The port has been
operated by Virginia International Terminals Inc. for the last 30 years. In
another unanimous vote, the authority has voted to change the corporate
structure of VIT to put it under more direct control by the authority in hopes
to eliminate duplications, increase efficiencies and reduce costs. The details
of the proposed restructuring should be released in the board’s meeting this
coming May.Part of the plan would involve converting VIT from a company with
its own board of directors to one that would be controlled wholly by the
authority. Parts of the reorganization could affect not only nearby areas of
Virginia, such as Outer Banks and Currituck County,
but also the Mid-Atlantic and Midwest.
2012 was the second-best year in history with regards to
cargo volume. According to officials, the port handled more than 2.1 million
cargo units, which was up 9.8% since last year. Also, with the Port’s natural
advantages, such as its 50-foot channel that is deep enough to handle the
world’s largest cargo ships, further growth is expected. Once the expansion of
the Panama Canal is completed in 2015, the size of ships that will be able to
travel the canal will triple. According to board Chairman William Fralin, the
private offers were competitive but did not fully recognize the great value of
the port. This makes the second time in five years that the state has opted not
to privatize port operations, having already rejected three offers in 2009.
However, Governor Bob McDonnell has long advocated
privatizing the port’s operations and said that he and State Transportation
Secretary Sean T. Connaughton will review Tuesday’s decision.
"The governor was clear when he appointed this board
that he wanted us to make decisions based on our best business judgment,"
Fralin said. "He fully intended for us to make the port competitive, and
we intend to do that."
If the port’s plans of giving the port more authority are
successful, this could mean a number of things not just for Hampton Roads and
neighboring areas such as Currituck County, but for the Mid-Atlantic and the
Midwest. Now that the Virginia Port Authority and State of Virginia will be in charge of the port’s
assets and operations, there will be greater opportunity for progress in the
moving forward of the port. The reorganization should improve efficiencies and
lead to better handling of port traffic, tariff rates, shipping-line
negotiations and coordination of economic development activities with regional
partners, including Currituck County.
For more Contact:
Think Currituck
P153 Courthouse Road, Suite 207
Currituck, NC 27929
Phone:
http://www.thinkcurrituck.com/
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