APM chooses Portsmouth as company headquarters

APM Terminals is moving its Americas headquarters to Portsmouth and has already relocated 16 senior executives and support staff, spokeswoman Allison Enedy said Wednesday.

Though no official announcement has been made by APM or the city, the company's Web site now lists a Portsmouth address as the headquarters for its new Americas region, which includes North America, South America and the Caribbean.

"The decision to relocate our senior staff and key decision makers is part of our overall strategy for long-term growth," Enedy said in an e-mail. "It made good sense to have corporate management on-site at a terminal that showcases the very best in innovation and stewardship."

The City Council learned of the move a few months ago, said Vice Mayor Bill Moody Jr. It will bring new jobs, generate tax revenue and boost the region's port activity, he said.

"It's got some tremendous residual benefits to our city," Moody said.

APM opened its $450 million Portsmouth terminal in July 2007 on 291 acres off the Western Freeway.

Based in the Netherlands, APM Terminals is an independent subsidiary of Danish-based A.P. Moller-Maersk Group, which also owns Maersk Line, the world's largest containerized cargo shipping line. It posted $2.5 billion in revenue from its 50 terminals in 31 countries, including about 12 U.S. locations.

The Portsmouth terminal competes for business with the Virginia Port Authority's three marine terminals in Norfolk, Newport News and Portsmouth.

"Overall I think it's good for the region and good for the state," said Joe Harris, the port authority's spokesman. "Even if there's been a downturn in shipping and everyone's singing the blues about the numbers and the profits... it will not last forever and that is the world's largest ship line, and that's something we have to keep in perspective."

News that APM might move to Portsmouth first surfaced in June as APM sought state and local incentives, including tax abatement and funds to train employees.

Portsmouth is still negotiating what APM's incentive package will look like, Moody said, adding that he hopes to reach an agreement by yearend.

That package may include $500,000 and a one-time tax abatement of up to 50 percent for a major development project costing between $50 million and $250 million, Councilman Steve Heretick said.

At the same time, APM has committed to hiring a certain number of employees and to making capital investments at the facility, Moody said. It will also generate significant tax revenue.

"I'm confident that this one, at the end of the day, will be a win-win situation for our citizens as well as for Maersk to keep them, you know, investing and growing their operation here," he said. "The great thing citizens need to keep in mind is this is a taxable entity unlike our state port operations."

APM has no plans to relocate any additional employees to Portsmouth and is maintaining 100 people in Charlotte, N.C., the former North American headquarters, Enedy said.

"The Portsmouth facility is largely considered to be the most technologically advanced and environmentally sensitive terminal in North America," she said. "APM Terminals enjoys a good working relationship with the city of Portsmouth, they have welcomed us to their city, and we will continue discussions on how to best manage future investment in the area as business grows."

Kathy Adams, (757) 446-2583, kathy.adams@pilotonline.com