April 20, 2004

Ellen Qualls

Tom Boyd, Spokesman
APM Terminals North America Inc.
(973) 514-5617
Jill Vaughan
(804) 371-0049
-New APM Terminals is the single largest investment in Hampton Roads’ history-

PORTSMOUTH - Governor Mark R. Warner today announced APM Terminals’ decision to build the country’s first major, privately developed container terminal on the Elizabeth River in the City of Portsmouth. Through an investment of $450 million, the project will create 210 new jobs. This announcement is the single largest private dollar investment in Hampton Roads and one of the largest on record in Virginia. The new terminal will help maintain Hampton Roads' position as the leading East Coast port for the newest and largest cargo ships.

The terminal’s economic impact is estimated to include $269 million in local tax revenues and $260 million in state tax revenues during the first 15 years of operation. Virginia successfully competed with Georgia and South Carolina for the project.

Governor Warner joined APM Terminals North America President Tony Scioscia and Maersk Inc. CEO Thomas Thune Andersen to announce the project at an event this morning.

“During my May 2003 trade mission, I met with company officials in Denmark to emphasize the Commonwealth’s support of this historic investment and new jobs,” said Governor Warner. “APM Terminals will significantly boost Virginia’s competitive position in international trade and provide a major economic stimulus to the Hampton Roads region and the Commonwealth as a whole.”

APM Terminals, which has its corporate headquarters in The Hague, Netherlands, is a leading global container terminal operator with activities in more than 30 ports worldwide, generating an annual throughput of more than 22 million TEU (twenty-foot equivalent units) from about 60 leading shipping lines. The company currently operates a 71-acre container terminal in Portsmouth adjacent to the Portsmouth Marine Terminal operated by the Virginia Port Authority.

“Our present terminal in Portsmouth, Va. has been operating at near full capacity for several years. We have no room for expansion so it was necessary to look elsewhere for a site capable of meeting our future goals. This is a positive step towards preparing our company for continued growth and success in the mid-Atlantic region,” said Nick Taro, Senior Vice President for U.S. East Coast and Gulf Ports for APM Terminals. “This container facility adds to Maersk's significant presence in Virginia which includes the headquarters for Maersk Line, Ltd. and Hudd Distribution. The Commonwealth is indeed a great place to do business.”

“This facility will create opportunities in global commerce for our customers while maintaining the highest standards in safety and security. Our vision is to create a port that will act as a catalyst for international business in the local and regional economies by creating a new, broader long term platform for business growth,” said Thomas Thune Andersen, President & CEO, Maersk Inc., Madison, New Jersey. “We appreciate all of the efforts of Governor Warner, Senator Warner and Mayor Holley to get us to this point. Without their support, we would not have been successful.”

The Virginia Economic Development Partnership prepared the state’s proposal and negotiated an incentive package to secure the project for Virginia. U.S. Senator John W. Warner, the City of Portsmouth, the Virginia Port Authority, the Virginia Department of Environmental Quality and the Virginia Marine Resources Commission assisted APM Terminals with its decision.

Governor Warner approved a $500,000 grant from the Governor’s Opportunity Fund to support the City of Portsmouth with the project. APM Terminals is eligible for tax credits through the enterprise zone tax credit program provided by the Virginia Department of Housing and Community Development. The company also qualifies for rail access funding from the Virginia Department of Rail and Public Transportation and road access funding from the Virginia Department of Transportation. The Virginia Department of Business Assistance will support the project with its Workforce Services Program.

“The City of Portsmouth is delighted and proud to welcome APM Terminals,” said Mayor James Holley. “This half-billion dollar commitment represents the largest privately built terminal in the United States and for Portsmouth, it represents the largest economic development announcement the city has experienced in its rich maritime history. Maersk’s project will assure Portsmouth’s prominent role in international commerce through the 21st century and beyond.”


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