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Virginia International Terminals. Joseph A. Dorto November 27, 2012. VIT has a proven track record of constant growth. Vit has an excellent relationship with our customers, both Beneficial Cargo Owners and Ship Lines.
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Virginia International Terminals Joseph A. Dorto November 27, 2012
Vit has an excellent relationship with our customers, both Beneficial Cargo Owners and Ship Lines • Long term, 10 year contractual agreements unique to terminal operators that contain both volume commitments and financial penalties for shortfalls.
Vit has one of the best productivity records in the US Per the RK Johns report, dated January 13, 2012: “Crane productivity at APMT is operating at or close to best in class and customers are well aware of this productivity. The closure of PMT has improved port productivity significantly. NIT productivity lags APMT by about three container moves per crane hour.” …”For 2011 YTD, Norfolk is 34.26 – slightly behind Charleston (35.76), but still quite competitive within region. The only port above 33 is Baltimore at 34.05.”
Vit does not lose money • Performance of the terminals should be assessed on a cash basis and VIT has always produced positive cash flows. • The financial health of VIT/VPA is recognized in the marketplace. VPA has successfully issued and/or refinanced Terminal Revenue Bonds, which rely solely on terminal revenues for payment. • Plans for PMT, which include rent to Skanska, were mitigated for other projects, thus removing $3 million per year in anticipated revenues. • VPA agrees to forego $5 million/year of the CTTF to assist with the cost of the Route 460 project. • These above initiatives removed over $8 million per year from the VPA revenue stream. These actions could not have been possible if the current model was “financially unsustainable.”
Vit has recovered from the recession – volume this year will reach that of 2008
the port of Virginia's FUTURECAPITALEXPENDITURES are extremely manageable The anticipated future capital requirements discussed below are consistent with the VPA 20 year Master Plan. All are expressed in 2012 dollars. All funds required to make facility improvements come from Terminal Revenues which are generated by VIT’s operations. Approximately $250 million will be needed to accomplish the APMT Phase II expansion. This will be funded from Terminal Revenues. The remaining balance, approximately $665 million, is for terminal maintenance and equipment replacement. These also will be funded from Terminal Revenues.
Vit has a bright and sustainable future as the terminal operator of the Port of Virginia The widening of the Panama Canal has yet to have an effect. Virginia is the only port on the east coast of the United States that has 50’ channels , no overhead obstructions, and no tidal concerns. In addition, our authorization to take the channel to 55’ and the sea channel to 60’ are clearly advantages that will enhance the value of the port of Virginia in years to come. Within the next 10 years, Virginia will be the only port on the U.S. east coast that will be able to handle the global fleet of containerized vessels in every weather condition. “The VIT agreements reflect well within the industry. The long-term nature of the agreements, the volume commitments from ship lines and meaningful liquidated damage clauses give the contracts a strong infrastructure base. There are presently cases of volume shortfalls from ship lines and VIT is well- positioned in negotiating amendments to these agreements.” (RK Johns) “Since the addition of the three deep water berths at APMT, Virginia has ample berth capacity for growth in the near term. Along with crane capability detailed below, Virginia is well positioned to accommodate growth with limited capital outlay. “(RK Johns) Current and future railroad initiatives from both Norfolk Southern ( The Heartland Corridor) and CSX (The National Gateway) provide Virginia with key intermodal advantages.
