Two port bids released
- August 11, 2009
The proposals from two companies competing with CenterPoint Properties for the operating rights of the Port of Virginia have been released.
Virginia Transportation Secretary Pierce Homer determined the proposals met the minimum state criteria, and both were posted to the Virginia Port Authority’s Web site Monday evening.
Washington, D.C.-based private equity firm The Carlyle Group is proposing a 60-year lease of the port’s operating rights, with an upfront payment of between $500 million and $700 million. Similar to CenterPoint’s proposal, The Carlyle Group would keep Virginia International Terminals, the port’s operating in tact.
Seattle-based Carrix Inc., a privately held marine and rail terminal operator, is proposing a 30-year operating agreement with a $250 million upfront payment. Investment banking firm Goldman Sachs is a partner in the deal. Under Carrix’s proposal, Carrix and VIT would work together to run the port.
The proposals were submitted to the state after CenterPoint Properties proposed an unsolicited bid in March. The Oak Brook, Ill., industrial real estate developer and manager is proposing a 60-year concession of the operating rights, with an upfront payment of $500 million.
Now Homer will set up an independent review panel to examine the proposals and make a recommendation to the Virginia Port Authority.