The Port of Virginia signs new lease for Virginia International Gateway
Governor Terry R. McAuliffe on Wednesday announced that The Port of Virginia® has signed a new, long-term lease for Virginia International Gateway (VIG) that clears the way for the port to begin work on doubling capacity at the deep-water container terminal, the company said in its press release.
The new lease, which was negotiated during a two-year period, will give the port oversight of and operating rights at the terminal until 2065. Further, the lease allows the port to begin work on a $320 million project to build the terminal’s second phase; construction will begin this year. The lease is between the Virginia Port Authority (VPA) and Virginia International Gateway Inc., which is owned by Alinda Capital Partners and Universities Superannuation Scheme (USS). The lease is scheduled to go into effect Nov. 1.
Presently, VIG is processing 600,000 container lifts annually. The terminal is served by eight ship-to-shore cranes and has on-dock rail with service provided by both CSX and Norfolk Southern. The expansion will take an estimated three years to complete and result in a longer berth, an expanded rail operation, an expanded container yard and four new ship-to-shore cranes.
Today’s news comes in addition to several recent announcements made by the port in its effort to reinvest and expand capacity. In August, Gov. McAuliffe announced $350 million in state funding to expand capacity at Norfolk International Terminals (NIT), which is the port’s other primary container terminal. Additionally, the port is nearing the mid-way point on construction of the North Gate complex at NIT – a 26-lane gate that will provide greater motor carrier access to the terminal and will tie into the I-564 connector, also under construction.
The Virginia Port Authority (VPA) is a political subdivision of the Commonwealth of Virginia. The VPA owns and through its private operating subsidiary, Virginia International Terminals, LLC (VIT), operates four general cargo facilities Norfolk International Terminals, Portsmouth Marine Terminal, Newport News Marine Terminal and the Virginia Inland Port in Warren County. The VPA leases Virginia International Gateway and the Port of Richmond. In fiscal 2013, The Port of Virginia provided more than 374,000 jobs and generated $60.3 billion in total economic impact throughout the Commonwealth.
