The “aggressive” timetable which the Virginia Department of
Transportation and Virginia Port Authority have set to privatize the port
authority’s operations[1]
has raised the eyebrows of some within the business-friendly Virginia General
Assembly., including Del. James Massie (R-Henrico County)[2].
According to Massie, the timetable for the business decision
doesn’t leave the appropriate amount of time for deliberation.[3]
“You’re talking about a significant business decision,” Massie noted, “This
schedule is just too aggressive.”[4]
Even though the chairman of the Virginia Port Authority
stated that the announced schedule was not set in stone, the secretary of the Treasury,
Sean T. Connaughton, appeared to signal the need for a speedy decision.
According to Gov. Bob McDonnell, the Port of Virginia has a
$41 billion yearly impact on Virginia’s economy.[5]
However, the McDonnell administration has signaled concern over the projected
yearly operating loss of $10 million for the last fiscal year.
Thus, there appears to be some disagreement between members
of Virginia’s General Assembly and the McDonnell administration about how soon,
or even if, the Port of Virginia should be privatized.
If the McDonnell administration was hoping for a quick sale,
James V. Koch’s remarks before state officials on Friday probably buried that
hope. “My analysis suggests that there is room for the commonwealth to
negotiate a more attractive arrangement if it decides to accept one of the
management proposals in front of it now,” Koch said.[6]
In his eagerness to appear like Virginia’s business
white-knight, McDonnell has made sweetheart business deals in the recent past
which haven’t been as favorable to the commonwealth as might otherwise have
been the case[7].
So let’s hope that McDonnell learns from his own mistakes
and slow-walks this process to ensure that Virginia does get the most bang for
its buck. What better way to show off your business acumen?
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