By Bob Sechler
Three rival bidders have emerged to operate the Port of Virginia
in a closely-watched contest to run one of the country's largest
logistics hubs.
The port authority said Wednesday that it had received proposals
from Carlyle Group LP (CG) and a unit of Deutsche Bank AG (DB,
DBK.XE) to run the facility for up to five decades, which follow
the unsolicited offer made in May by APM Terminals Inc., a unit of
Denmark's A.P. Moller-Maersk Group (MAERSK-B.KO).
The Port of Virginia is the sixth-largest in the U.S. by volume,
and is expanding to take advantage of the expected surge in east
coast traffic following improvements to the Panama Canal.
The port authority considered similar lease proposals in 2009
after receiving an unsolicited bid, but dropped the plan the
following year because it viewed them as undervaluing the
facility.
The three existing proposals vary widely in value.
APM puts the net present value of its proposal to run the port
for 48 years at $3.2 billion to $3.9 billion, counting fixed
payments, capital investments and various other benefits.
Carlyle pegged its own 48-year plan at $1.8 billion to $2.1
billion, although it noted that the sums "compare favorably" to the
APM proposal when elements aside from fixed concession payments and
revenue sharing are stripped out.
RREEF, Deutsche Bank's real estate investment arm, submitted a
proposal to operate the port's facilities for 50 years, valuing the
deal at about $4.6 billion in present dollars.
Write to Bob Sechler at bob.sechler@dowjones.com
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