The General Assembly this week approved forming a subcommittee to look at privatizing the state's three marine terminals in Hampton Roads.
Though the state-controlled Virginia Port Authority uses a subsidiary to operate its Norfolk, Portsmouth and Newport News terminals, private entities are investing in marine terminals elsewhere to capitalize on growing international trade.
Bringing that approach to Virginia could reduce the need for state dollars to pay for expensive port expansion projects.
The study also will examine whether the state's road and rail network is adequate to support the current and future needs of the port, one of Virginia's biggest economic engines.
Legislators authorized up to $27,200 to pay for the study, to be completed by the end of 2009. The panel will be made up of eight legislators and nine representatives of Virginia's maritime business community.
At least two other port-related bills also have been approved and await Gov. Timothy M. Kaine's signature:
n The Virginia Marine Resources Commission was authorized to grant easements and right of way for 463 acres of state-owned oyster beds off the east side of Portsmouth's Craney Island, allowing the Port Authority to build a $2.2 billion marine terminal.
n The authority was allowed to expand the jurisdiction of its police department beyond a terminal's boundary to enhance security, if agreed to by the city or county where the terminal is located.
Gregory Richards, (757) 446-2599, gregory.richards@pilotonline.com
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Port Privatization
Port privatization has served as an effective tool for attracting private investment to port facilities worldwide instead of using public funds. The vast majority of investments in new terminals in the last ten years has been done via private investments. The US is one of the very few countries (besides a few in Africa) that generally has not opened the doors to private investment in terminals (though with a few exceptions in New York, Los Angeles, and elsewhere). In the vast majority of cases worldwide, private terminal operators pay a concession fee for the right to provide the service. So while reducing public expenditure, the public may still leverage funds for other purposes (e.g. road accesses) from privatization transactions. Concession payments may be in the form of both fixed (e.g. annual lease) and variable (e.g. wharfage on cargo). The introduction of privatization will increase local competition in Hampton Roads, with VIT facing local rivals that are established terminal operators. This competition typically leverages lower prices and better performance. The general assembly should in their due diligence on this issue consider the value of the privatization tran
TREASON!!
If you privitize the port, make sure the company who picks it up IS NOT from the mid east!! I am going to privitize your pay check since you make more than me. I will let you pay for the house, but not own or live in it. Selling a main economic engine of this country! Thats treason in my book! I will bet the Pilot staff a dinner that if this goes thru, a mid east comapny or Chinese company gets the green light!
Two wasy to look at it
There are really two ways to look at this:
1) If the port stays public, the state will see the revenue streams from the operation of the ports for many years to come. The downside is that taxpayers have to foot some of the bill, but the revenues could/would offset some of that - I have no idea what the balance is because I know NOTHING about the port business. Costs of expansion, like any other business, are the costs of doing business. The kicker here is that the revenue from the port operation MUST, like any other revenue stream, be spent wisely. Unfortunately, spending wisely is a concept that seems to escape the VA Gen Assy.
2) If the port is going to be privatized, then there is NO REASON whatsoever that the state should pick up the tab for modernization, expansion, new tunnels, new roads, etc. Further, the operation is attractive because it's a money-maker and international trade is only increasing. If selling, don't give it away! Don't offer to build the tunnel (3rd crossing) as part of the package. Finally, don't make a hasty decision about ANY of this! There is too much at stake.
Again The Viginia Pilot Fails to Follow UP
Sell or more then likely give away, we tax payer paid for, our state owned port facilities, which are profitable. A committee has been created that will do some kind of study about privatization. This is a huge story with far reaching implications. How did this committee come about and why .Who is on the committee and what are their stories. When will the study be completed. How will it be conducted and will there be oversight. Are foreign interests involved.....does the Virginia Pilot still have a staff of reporters?......Profitable, money, already built and operating, lucrative to speculation....thats strong attraction to interests....like honey to flies....easy money to be made....for all involved...and you know that's true citizens, now don't you. This needs watching just like the HRTA, which a lot of us did not see coming.
Why expand
Why are we the tax payers paying for an expansion if they are going private???
Why expand
Why are we the tax payers paying for an expansion if they are going private???
Virginia Port Authority
Virginia Port Authority Employee Benefits
-overtime after 8 hours per day, not 40 per week
-mafia based protection and negotiation of union contracts
-double time after dinner
-more paid holidays than anyone in America, including Federal Govt.
-paid to sit when waiting on ships
-protection from job loss like the Mets used to protect cocaine junkie Darryl Strawberry
-health/ dental benefits among others including disability and retirement
-Christmas bonuses and parties
-getting paid $24/hour to do what is an $8-10/hour job anywhere else
-you don't have work outside of your position, so if you have downtime don't you don't stay busy helping elsewhere, you just sit and get paid
-Am I jealous? No, I am happy for the Longshoreman, and I hope they continue to be blessed. Should VA taxes build Port Authority specific projects? No. There is enough money wasted at the waterfront to pay for their own transportation projects 3x over.
What a Plan
Let see, first (2008 session) your going to approve additional taxes, tolls and fees on residents of Hampton Roads to pay for a 5 billion dollar road improvement (third crossing) to benefit the Norfolk International Terminal. Then your going to fund a study ((due 12/2009) to see whether the roads are adequate. PRICELESS