This comes at a low point for the port, which has lost US$120m over the last five years, and is expected to lose up to US$23.4m for the current fiscal year that ends 30 June 2014.
Addressing executives at the Hampton Roads Chamber of Commerce, Mr McAuliffe, said: “Don’t tell me how much our cargo is growing if we are losing money. Growth for the sake of growth without profit is not something I am interested in. I would prefer to have less cargo and more profit.”
Making a significant dent in the port’s profits is the authority’s 20-year lease of the APM facility, which gives the agency control over all operations at APM Terminals Virginia, and is expected to cost the authority more than US$70m a year by the time the deal ends in 2030.
Highly automated, the US$450 million terminal in Portsmouth located on a 291-acre site is the largest privately-owned terminal in North America.
Apparently, the Governor has pushed for a re-negotiation of the lease and suggested that one offer has already been proposed.
APMT was unavailable for comment.
The Governor also mentioned plans to change the authority board, which is made up of 13 members, 11 appointed by the governor.
While there’s a lot of work still to be done, Mr McAuliffe said he is hopeful the management of CEO and executive director, John F Reinhart, will mean a bight economic future for the port.
