Norfolk – The Virginia Port Authority (VPA), announced today that a five-year contract extension with Chilean shipper CSAV (Compania Sudamericana de Vapores) has been agreed upon.
"CSAV has a long history in Virginia – nearing 50 years -- and this contract will continue what has been a very good relationship," said Rodney Oliver, interim executive director of the VPA. "CSAV's business is growing and the company's leadership made it clear that they will take advantage of the expanding rail network that links this port with critical Midwest manufacturing and population centers."
The contract guarantees that CSAV will move a minimum of 45,000 TEUs (9,000 annually) through the port, though the number most likely would be higher, said Joseph A. Dorto, general manager and CEO of Virginia International Terminals Inc., the VPA's terminal operating company. Further, the contract guarantees that Virginia would get business – containers – from any new CSAV service that would call the US East Coast, from South Carolina to New York.
CSAV's vessels make weekly calls at Norfolk International Terminals and the ocean carrier moves some cargo into Virginia using other carriers.
The contract went into effect Oct. 1 and it expires Sept, 30, 2017. Included in this most recent contract is an option to extend the contract for five additional years.
"This extension is a vote of confidence in how we are conducting business at The Port of Virginia," Oliver said.