East Coast Gateway Terminal Agreement

As shipping companies continue to move towards consolidation, we will likely see an increased level of cooperation between port authorities and between terminal operators serving these lines. The consolidation of the Seattle and Tacoma ports marine terminal assets into the Northwest Seaport Alliance joint venture in 2015 is a precedent. Mercator International has been the lead strategic advisor for the Port of Seattle and the Port of Tacoma to help these ports plan and navigate the complex consolidation process. Together, Norfolk and Savannah processed 5.3 million teUs loaded in 2017, more than the 4.8 million loaded TEUs that were processed from New York Harbor and New Jersey, the largest port on the coast, according to PIERS, a sister product of JOC.com. Norfolk and Virginia had a combined market share of 32.8 percent of total container trade on the East Coast in 2017, compared with 29.2 percent in New York and New Jersey. The Port of Virginia has signed a new long-term lease for Virginia International Gateway (VIG) to give the port the operating rights to the terminal until 2065. “If you look at the market base, not two ports in the same market are trying to control the markets,” Lynch said. “When I look at the overlaps, our main market for Savannah is the southeast. I think John`s most important market is obviously the Central Atlantic and Midwest rail link to Chicago. It`s not something we`re really stuck with right now. The port authorities submitted their proposed agreement to the CMF on Friday.

The agreement is expected to enter into force on 10 April, should the Commission not take measures that interrupt the 45-day regulatory time. “Look at the Port of Virginia and the Georgian Ports Authority. We are the two operating terminals, we have the two common practices in our facilities, we both do considerable volumes, and we have the same channels and networks,” said Reinhart. It didn`t make sense to go to several ports. In Miami, the alliance between the South Florida Container Terminal and the Port of Miami Terminal Operating Company includes a language that would allow terminal operators to discuss rates, rates, rules and regulations through joint or individual agreements of marine terminal operators with common shipping carriers and to agree on fares , royalties, rules and regulations. MSC and CMA CGM withdrew their objections to a deal proposed by APM Terminals for the operation of various port terminals in The Ports of Virginia for a period of 48 years. Lynch said the two sides had spent the past year “getting to know each other.” Virginia, which had installed a Navis terminal operating system, was able to give Georgia insights while preparing. Although there are now only two parties to the Georgia-Virginia agreement, Lynch and Reinhart have said they are ready to expand port coverage of the agreement at a later date. This could one day include New York and New Jersey, as well as the South Carolina Ports Authority, which is another port geographically located between Virginia and Georgia. “We know there is a change,” said John Reinhart, CEO and Executive Director of Virginia. “We want to find a way to be the most efficient terminals we can.