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View Full Version : Galveston port poised to outsource its operations



megimoo
03-05-2011, 07:34 AM
GALVESTON The Port of Galveston is in final negotiations to lease its facilities to a major investment group, which could make it the first U.S. port to turn over its entire operation to the private sector.

Several U.S. ports lease terminal operations to private operators, but "in this case it is the entire port structure, which is really a unique opportunity," said economist John Martin, who heads Martin Associates, based in Lancaster, Pa......Martin Associates had done work for every U.S. port and did the economic study for the proposed lease, a 50/50 joint venture of global investment firm Carlyle Group and Hong Kong-based Hutchison Port Holdings, the world's largest stevedore-terminal operator with operations in more than 50 ports in 25 countries.

Both companies declined comment.

If consummated, the 75-year lease would give Hutchison its first U.S. toehold...."This would be the first foray of the largest terminal operating company in the world to the United States," said port consultant Erik Stromberg, former chief executive officer of the American Association of Port Authorities.

Port Director Steven Cernak predicted the lease would put Galveston at the forefront of a developing trend. Many ports act as landlords for private companies that run various sections of the facility, but Galveston would be the first to turn total port operations over to a single tenant, said J. Ron Brinson, a port analyst based in Charleston, N.C.

"It will be, as far as I know, the first one, but it won't be the last," Brinson said. "You are going to see ports that look like Galveston looking more and more to the private sector."....Cernak said the port authority would retain only the functions that cannot legally be carried out by a private company, such as tariff collection and security.....Medium-size ports like Galveston are finding it difficult to raise capital and federal funding is drying up for needed improvements, Cernak said.



http://www.chron.com/disp/story.mpl/metropolitan/7457880.html

fettpett
03-05-2011, 09:45 AM
ooh...so because it's a Chinese company and a Dem President there is no issue, but when it's a Arab Company and a GOP President it's the end of the fucking world...

PoliCon
03-05-2011, 12:33 PM
ooh...so because it's a Chinese company and a Dem President there is no issue, but when it's a Arab Company and a GOP President it's the end of the fucking world...

It's always different when they do it!:mad: