There was good news and bad news this week for the Port of Richmond.
The bad news is that Eimskip, the port’s only container ship, sailed out of Richmond for good.
The Icelandic shipping firm confirmed in a news release what the local maritime community had suspected for some time.
“Eimskip will change its port of call from Richmond to Norfolk towards the end of February,” the company said in a release last week.
“Eimskip has been calling the Port of Richmond since November 2006, but will now be conducting all terminal operations at Norfolk International Terminals (NIT).”
Port of Richmond Executive Director David McNeel said Eimskip’s final Richmond call left the local port last week.
BizSense reported in early January that the company was considering pulling out of Richmond in favor of Norfolk. (You can read that report here.)
Eimskip was one of the Richmond port’s two remaining customers, along with the James River Barge Line. It has been about two years since port’s largest customer, Independent Container Line, left Richmond for Wilmington, N.C.
Eimskip, which has been calling at the Richmond port for about three years, was handling about 250 containers a month at the Richmond port and had one ship here per month.
Gylfi Sigfusson, Eimskip‘s president and CEO, said in a prepared statement that the move from Richmond to Norfolk is a big step forward for the company.
“This allows Eimskip to work closer with other shipping lines in the Norfolk area creating opportunities in shipping services between US and Canada and shortening the roundtrip of our vessel by two days,” Sigfusson said. Read the company’s statement here.
Now for the good news.
According to McNeel, the port has a new customer lined up and ready to lease 80,000 square feet of warehouse space.
McNeel went before Richmond City Council on Monday, seeking approval for lease between the city-owned port and Hopewell-based Appomattox Bio Energy, an affiliate of Glen Allen-based Osage Bio Energy.
The company produces a barley protein that is sold to the cattle industry and would be stored at the port for shipment around the world.
“It’d be a great piece of business for the port,” McNeel said.
He said that the port and Osage/Appomattox have come to an agreement and that product could start moving in and out in April. All that’s left is approval from the city.
Another potential deal is also in the works, McNeel said. He said a California firm that does fabrication work for the military is interested in warehouse space in Richmond.
While these new deals are in the works, the future of the port remains up in the air. Richmond is in negotiations with the Hampton Roads-based Virginia Port Authority to potentially take over the local port.
“The negotiations between the port and VPA are still in the works,” McNeel said. “I’m still marching forward until people tell me differently.”
He said the potential VPA takeover, which he supports, has not affected his or the port’s ability to negotiate deals.
“This [Osage] business would be great for the VPA also. It’s business that’s in line with what the VPA wants to do.”
Michael Schwartz is a BizSense reporter. Please send news tips to [email protected].
There was good news and bad news this week for the Port of Richmond.
The bad news is that Eimskip, the port’s only container ship, sailed out of Richmond for good.
The Icelandic shipping firm confirmed in a news release what the local maritime community had suspected for some time.
“Eimskip will change its port of call from Richmond to Norfolk towards the end of February,” the company said in a release last week.
“Eimskip has been calling the Port of Richmond since November 2006, but will now be conducting all terminal operations at Norfolk International Terminals (NIT).”
Port of Richmond Executive Director David McNeel said Eimskip’s final Richmond call left the local port last week.
BizSense reported in early January that the company was considering pulling out of Richmond in favor of Norfolk. (You can read that report here.)
Eimskip was one of the Richmond port’s two remaining customers, along with the James River Barge Line. It has been about two years since port’s largest customer, Independent Container Line, left Richmond for Wilmington, N.C.
Eimskip, which has been calling at the Richmond port for about three years, was handling about 250 containers a month at the Richmond port and had one ship here per month.
Gylfi Sigfusson, Eimskip‘s president and CEO, said in a prepared statement that the move from Richmond to Norfolk is a big step forward for the company.
“This allows Eimskip to work closer with other shipping lines in the Norfolk area creating opportunities in shipping services between US and Canada and shortening the roundtrip of our vessel by two days,” Sigfusson said. Read the company’s statement here.
Now for the good news.
According to McNeel, the port has a new customer lined up and ready to lease 80,000 square feet of warehouse space.
McNeel went before Richmond City Council on Monday, seeking approval for lease between the city-owned port and Hopewell-based Appomattox Bio Energy, an affiliate of Glen Allen-based Osage Bio Energy.
The company produces a barley protein that is sold to the cattle industry and would be stored at the port for shipment around the world.
“It’d be a great piece of business for the port,” McNeel said.
He said that the port and Osage/Appomattox have come to an agreement and that product could start moving in and out in April. All that’s left is approval from the city.
Another potential deal is also in the works, McNeel said. He said a California firm that does fabrication work for the military is interested in warehouse space in Richmond.
While these new deals are in the works, the future of the port remains up in the air. Richmond is in negotiations with the Hampton Roads-based Virginia Port Authority to potentially take over the local port.
“The negotiations between the port and VPA are still in the works,” McNeel said. “I’m still marching forward until people tell me differently.”
He said the potential VPA takeover, which he supports, has not affected his or the port’s ability to negotiate deals.
“This [Osage] business would be great for the VPA also. It’s business that’s in line with what the VPA wants to do.”
Michael Schwartz is a BizSense reporter. Please send news tips to [email protected].