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Mayors'' reactions to port privatisation proposal mixed
2009/3/18
The mayors of Norfolk and Portsmouth are opposed to a Chicago-area development company''s proposal to take over the port operations of the Virginia Port Authority, saying the deal does not provide enough revenue to their cities, the McClatchy-Tribune Regional News reported.
Norfolk Mayor Paul Fraim, whose city is home to the largest of the state''s port facilities, called the proposal "completely unacceptable."
Fraim stressed that the proposal probably will change as state officials negotiate with CenterPoint and that he eventually may support it.
"But we need a seat at the table," Fraim said. "Our concerns need to be heard."
CenterPoint has proposed that it acquire Virginia International Terminals, a nonprofit corporation set up by the Virginia Port Authority in 1981 to operate the state-owned marine terminals. VIT would continue to operate the port.
Officials at CenterPoint have said the deal would be worth US$8.9 billion to the state over 60 years.
Fraim said CenterPoint officials briefed him nearly two weeks ago and told him if the deal goes through, they would provide about $3 million per year to Norfolk. About $2 million would be split between Portsmouth and Newport News, which host smaller port facilities, he said.
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2009/3/19