THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Tuesday, January 10, 1995 TAG: 9501100304
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY CHRISTOPHER DINSMORE, STAFF WRITER
LENGTH: Medium: 82 lines
The port of Hampton Roads has one deal in hand and an even bigger one that it's bidding on that could substantially boost container traffic through the harbor.
Gov. George F. Allen is expected to announce today that Maersk Line has agreed to consolidated all mid-Atlantic ship calls for its service to South America's East Coast to Norfolk International Terminals, a port source said Monday. Those ships had also been calling in Baltimore.
The Virginia Port Authority's deal with the Denmark-based shipping line should add 10,000 containers a year to traffic through the port, said the source, who asked not to be named.
That's a substantial boost in container traffic for the port's terminals, but there may be an even bigger prize within Hampton Roads' reach.
The port authority is preparing its final bid to attract Chiquita Brands International Inc.'s containerized banana imports to its Norfolk terminals as well.
About a dozen East Coast and Gulf of Mexico ports are pursuing the Chiquita deal, which could mean hundreds of thousands of tons of imports and many new jobs for whichever port wins the bidding, according to the distribution industry magazine Traffic World, which reported the pending bids Monday.
Hampton Roads isn't a major banana port right now, but its existing double-stack train container service and available land could give the port an edge towards winning the Chiquita business.
The added container traffic from the Maersk deal isn't likely to create new jobs, but it will help keep the port's longshoremen busy.
The source couldn't say why Maersk was choosing to expand its traffic through Norfolk and not Baltimore.
A local Maersk official could not be reached for comment.
Maersk also plans to add Norfolk as a port of call for its service between the East Coast of the United States and the West Coast of South America, the source said. That service also stops in Baltimore.
For Chiquita's banana business, Hampton Roads is competing with several other ports, including Gulfport, Miss., Wilmington, Del., and New Orleans, Traffic World magainze reported Monday. The deadline for bids is Jan. 31.
Chiquita is expected to whittle down the ports to a short list on Feb. 28, and then make a final decision on or about April 30.
Chiquita plans to shift its North American distribution to intermodal rail from trucks and is looking for the best port to serve its needs.
Gulfport and Wilmington are promoting existing Chiquita truck operations and are scrambling to develop double-stack service, as the Virginia Port Authority pushes its existing double-stack availability to land the business.
``Chiquita said rail would be the most economical way to go in its long-term growth plans and I think our double-stack service gives us a big advantage,'' said Joseph Dorto, general manager for Virginia International Terminals Inc., which operates the VPA's three terminals in Hampton Roads.
``Chiquita is willing to put all its eggs in one basket if that basket is responsive to its needs,'' Dorto said. ``We'll be willing to put together whatever they need because it's a nice piece of business.''
Wilmington, the nation's busiest banana port with both Chiquita and Dole Foods operations, handles nearly 1 million tons of bananas a year.
Chiquita could not be reached for comment, but Traffic World reported that the shipper is seeking ready access to daily double-stack intermodal rail service, a total of 60 acres to be developed within a three-phase operation over four years, and two large container cranes for exclusive use.
Norfolk has double-stack rail service as far as Kansas City and St. Louis via the Norfolk Southern Corp. and has the land to put together the 60-acre site Chiquita Brands is seeking, Dorto said.
``We've got the room to grow and we've already got the double-stack rail Chiquita wants, and we'd like that business because it's going to continue to grow,'' Dorto said.
The 60-acre terminal could be readily incorporated into the 300-acre, four-berth expansion of Norfolk International Terminals, Dorto said. The first two berths could be on-line within two years. MEMO: (Traffic World contributed to this report)
ILLUSTRATION: FILE
The port's deal should add 10,000 containers a year to traffic.
KEYWORDS: PORT AUTHORITY CONTAINER by CNB