Virginia Port Authority (VPA) has kicked off its plan for corporate restructuring this week – the shake-up aims to make the management for the ports more efficient and cost effective.
In essence, the plan for restructure would include a consolidation of certain functions at the port authority and its non-profit operational arm, Virginia International Terminals (VIT). The port authority wants to shift power back to itself and use VIT as an advisory body to retain board member’s institutional knowledge.
Joe Harris, spokesperson for VPA, told Port Strategy: “The board sees it as a means of eliminating duplication, improving efficiency, improving communications and having a more unified or cohesive operation” – a point emphasised by the latest report from the Joint Legislative Audit and Review Commission.
Mr Harris told PS that the board is still considering an unsolicited offer received last year to lease the operating rights at the state-owned terminals from APM North America and Virginia Port Partners LLC, which is composed of JPMorgan IIF Acquisitions LLC and Maher Terminals LLC.
VPA has denied that the idea for restructure came from these unsolicited offers and has said that the authority has been mulling the idea over for much longer.
It remains to be seen what would happen if management for the port was handed over to one of the private operators – because then the reform would not be needed because the new operator would replace VIT.
A vote on the restructure will take place at the VPA board’s next meeting on 26 March.
