PORTSMOUTH
APM Terminals, one of the world's largest marine terminal operators, is negotiating with city officials about moving its North American headquarters here, two Portsmouth City Council members said Tuesday.
APM, the Netherlands-based division of the Danish shipping conglomerate A.P. Moller-Maersk Group, now has its North American headquarters in Charlotte, N.C. Last summer, it opened a $450 million terminal off the Western Freeway in Portsmouth that is one of the world's most technologically advanced.
Landing APM's North American base would be a coup for the city because it would supply high-level jobs, tax revenue and international prestige, said Councilman Steve Heretick.
"This is a brass ring that we've been grasping at for a while," Heretick said. "It's a huge step forward for Portsmouth, the region and Virginia's position in international trade."
The deal APM is seeking from Portsmouth consists of a $500,000 city grant to match $500,000 from the state; a tax abatement of up to 50 percent on new investments of between $50 million and $250 million to construct the terminal's second phase; and training money for employees. Those terms could change in negotiations, Heretick said.
APM spokeswoman Allison Enedy said Tuesday that the company is relocating about 20 senior-level employees to the Portsmouth terminal, which includes a multi-story office building. The staff will mostly be coming from Charlotte, she said.
The move "more closely aligns some of our corporate management staff with our terminals, customers and the market," she wrote in an e-mail. Details are still being worked out, she said. It comes as APM joined sister company Maersk Line - the world's largest cargo container line - as a stand-alone business unit under A.P. Moller-Maersk at the start of the year.
Enedy did not respond to questions regarding whether the headquarters was moving, whether financial incentives were being sought and which executives were being transferred.
It was unclear Tuesday if APM would still move the 20 executives to Portsmouth if financial assistance was rejected.
Councilwoman Elizabeth Psimas said she supports the deal in general terms. There are some minor changes she wants made, however, such as to require APM to keep its headquarters in Portsmouth if the City Council approves the incentives.
"It would be wonderful toward the vision of being a world-class maritime center to have the North American headquarters of APM Terminals in Portsmouth," Psimas said.
APM would like the council to vote on the deal by the end of July, Psimas said.
Heretick said a majority of the council views the deal favorably.
"I think councilwide there is certainly a lot of positive regard for APM and their willingness to continue to make Portsmouth a major economic center for worldwide distribution," he said.
APM directly employs about 40 people at its Portsmouth terminal. To move cargo, it also hires between 80 and 160 longshoremen daily.
The council was briefed on the deal Monday in closed session by Steven L. Lynch, Portsmouth's economic development director, Heretick said. Lynch did not return a call for comment Tuesday.
APM posted $2.52 billion in revenue last year from its 50 terminals in 31 countries on five continents, according to the company's annual report. It has 13 terminals in the United States that now report to the Charlotte office.
The company's 291-acre Portsmouth terminal is a major competitor to the state-controlled Virginia Port Authority's three Hampton Roads terminals.
Evergreen Line, one of the two shipping lines whose contracts with the Port Authority's operating company expire within the year, has been reported to be in talks to move its business to APM in Portsmouth.
Staff writer Jen McCaffery contributed to this report.
Gregory Richards, (757) 446-2599, gregory.richards@pilotonline.com
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Why does everyone have to
Why does everyone have to bash the city for trying to bring jobs and economic growth to the region? I mean who are yall to speak about paying high taxes, your all sitting around during the day posting comments online. Go out and do work!
another trip to the well
One important detail this article left out was when APM negoiated the deal to build this terminal, Phase II was always part of the original deal. Now the company wants to re-negoiate the original terms with a 50 per cent tax reduction. Seem to happen a lot lately in Portsmouth. It's also happening between the developer and the city over NewPort. Citizens of Portsmouth, hang on to your wallet, it's going to cost you. The good news is you'll probably never know how much.
rj
I live here because I refuse to let the welfare crowd run me out. Obviously you haven't lived in Portsmouth for 54 years like I have so you don't know your history of this city and how it has been in a slow death sprial since the 70's. Judging by your coments if you are satisfied with what Portsmouth has become you have never loved anywhere else so I guess I'll have to overlook the fact that you just don't know better.
what remarkable self loathing evident here
OK, first reality check -- who cares if these newcomers don't educate their kids in Portsmouth public schools? If they won't send their kids to a Churchland school, they won't send them to a Suffolk or Norfolk public school, either. Every kid I know in Riverfront goes to NSA. Second reality check, as a P'Town taxpayer, I would be happy if they didn't add a single kid to the school rolls -- any house will never pay enough in taxes to cover the costs of educating the kid or two that comes with it. I am perfectly happy to have these jobs, and all of the economic activity (and resultant taxes) that comes with them, and dump the kids that come with them off on Suffolk or Norfolk. If these guys want to live close to the office, and send their kids to NSA or Norfolk Academy (which they would do if they anyway), then even better.
Gangland=beating yourself up
this is an example of some residents of Portsmouth being their own worst enemies. Why do you live in Portsmouth if you dislike it?
REPLY TO R.J.
My basis on the Gangland comment is 35 gangs operating in the city per the PPD. The recent murder of the Pizza delivery man and several articles in the paper (that I do read). I'm not going to compare Portsmouth with the other cities you mentioned because I don't live in those cities, I live in Portsmouth.
'gangland"
Maybe the recent shooting death of the pizza delivery man by suspected gang members with the recent article in Pilot of increased gang activity in PTown?
Congratulations SUFFOLK! They will be the ones to benefit.
Portsmouth = gangland?!?
PLEASE! Come on ring, don't you read the paper? Reports show much more gang activity in Norfolk, Va Beach & Ches. What basis for "gangland"?
YOU CAN BET
These upper level managers won't be living in Gangland (Portsmouth) or sending their kids to public schools either. There is no place for them to spend their big money in the city so exactly how far does "international prestige" go Mr. Heretick? The people of Hunters Point can't get a sound barrier to protect them from the noise this terminal generates yet APM wants millions from the city. The only place I see benefiting from this move is the surrounding cities where these people move because you can bet they won't be living in Portsmouth.
One more step.
Here we go again. Council taking more money from the citizens because they can't work out a deal which will not cost the city any money. I wonder what programs will be cut from an already approved budget to pay for moving these high rollers into the city. This is one more step toward making Portsmouth a container city. Too bad. I remember when Portsmouth could claim to be a clean city and resident friendly. How times do change.
Why doesn't APM pay for it themselfs?
Why is it these so called great deals are always on the backs of the taxpayers. If APM is wise, they would want their HQ here and if they want their HQ here, then they have enough revenue coming in to pay for it themselfs instead of leaching off our tax dollars. The terminals and the railroads take in major profits every year. Yet, we (the taxpayers) build their ports and their rails. Why is that? They can afford to give their CEOs and other officers huge (as in over $10M) bonuses and still we (the average working stiff) have our taxdollars ripped from our calloused hands to pay for their expensive projects. Example: Our transportation tax dollars are paying for the huge and very expensive rails going down the center of Rt 164 (Western Freeway) and I664 to support the APM Terminal and the railroads. No wonder there's no money for road improvements, tunnels and bridges.