VIT agrees long-term deal with CSAV

The contract went into effect on November 15, 2006 and expires on November 30, 2011, but contains an option for a further five years. It guarantees that CSAV will move a minimum of 75,000 teu annually through Virginia, although the total could exceed 125,000 teu. The value of the contract could exceed US$50m, depending on CSAV’s container volumes, according to VIT.

CSAV’s vessels are making weekly calls at Newport News Marine Terminal (NNMT), one of the three deepwater terminals owned by the VPA. The extension option allows for the line to switch to Portsmouth Marine Terminal (PMT) or Norfolk International Terminals (NIT) in the future if it wishes.

“CSAV has a long history in Virginia – about 45 years – and this contract will continue what has been a very good relationship. CSAV’s business is growing and it wants to ensure that it has room to expand in Virginia,” said Joseph A Dorto, VIT’s general manager and CEO.