On January 23, the Chamber held its Regional Board of Directors and Trustees meeting, with nearly 60 people in attendance.
During the meeting, the group heard from Eric Sisco, President, APM Terminals Americas Region, who provided an overview presentation of his company’s proposal to operate the Virginia Port Authority’s facilities. Currently, APM is one of the three companies vying to operate the Port. A decision is expected by late March.
The value of the APM proposal is $3.8 billion. Sisco said, “We proposed to pay just under $400 million upfront to the Port Authority. That money would be used for development of the infrastructure that benefits the port and the Hampton Roads community and the Commonwealth. And then pay fixed fees for the life of the concession to the Port Authority.”
“We propose to share in the revenue,” he said. “We believe the key to our collective success will depend on how successful we are with bringing more volume through this port.”
Sisco explained that APM would like the VPA to be out in the world marketing the Port. He added that they want them to develop the infrastructure that will bring jobs to Virginia and entice businesses to come to Hampton Roads.
“One thing we will do that no governmental agency will do, is we will pay local taxes, just over $1/2 billion in Virginia.”
Sisco said, “We plan to make a lot of capital investments in the Port. And we think this is the key difference between the construction operation that we have proposed versus the continuation of the state entity as both the VPA and the operator. The money we have proposed to put into the Port would come from private investment. These investments will be necessary to expand the Port. The alternative is to continue to subsidize through state taxation and support, the investments VPA is making.”
Sisco went on to explain that at the end of the period of our concession, the Port of Virginia, including APM Terminals, will be owned by the Commonwealth of Virginia. Part of our proposal is to turn over the deed to the Port on the first day of the concession. He said that the key to the success of this Port is a unified operation to grow the Port.
Using volume projections, Sisco explained that expansion needs to take place in the next few years to keep up with volume, so capacity needs to be built.
At the conclusion of his presentation, Sisco took questions from the audience.
Joe Dorto with Virginia International Terminals, Inc. will speak at the Chamber’s Board meeting on February 27.