Volume 77, No. 7 July 2013 Published by the Virginia Maritime Association, Norfolk, Virginia email: [email protected]• web site: www.VAMaritime.com Record TEU’s Handled at Port of Virginia T he Virginia Port Authority closed its books on FY13 handling a record breaking 2.165 million TEU’s, surpassing FY12 figures by 10%. Rodney W. Oliver, Interim Executive Director of the Virginia Port Authority, indicated, “There are a number of factors that we can attribute this success to: ocean carriers loading their vessels heavy to take advantage of our 50-foot deep channels, an increasing number of first-in and last-out vessel calls, our expanding rail service, our push into new markets like Greensboro (NC), and an improving economy.” The calendar year volumes for 2013 are approximately 6% higher than volumes for the same period in 2012. “This is the best June we have ever had,” stated Oliver. “We’re also seeing a lot of interest to expand operations by some large port users giving that we believe the growth will continue.” Port of Virginia Total TEU's 160000 180000 200000 Port of Virginia Total TEU s January ‐ June 40000 60000 80000 100000 120000 140000 2013 2012 0 20000 Jan Feb Mar Apr May Jun Boosting Economic Interest on the Elizabeth River’s Southern Branch O n June 19, approximately 50 local business leaders and government officials boarded the Victory Rover for an educational tour of the industrial maritime businesses and opportunities along the Southern Branch of the Elizabeth River. The tour, hosted by Doug Higginbotham, President, Tidewater Global, LLC, also provided the stage for him to announce the creation of “CHESPLEX,” a private sector initiative to proactively promote, stimulate and revitalize industrial maritime economic development opportunities on and around the Southern Branch of the Elizabeth River. Containerized cargo, coal, and ship building and repair are the most widely recognized commercial components to Virginia’s ports. Very important, but less noticed, is the diverse array of bulk cargoes imported and exported via the Southern Branch. Attracting new business to the area could further diversify Virginia’s ports to become a hub to transport bulk, break-bulk and agricultural products. This is the goal of one of the Port’s Priority Projects: the Southern Branch 45-foot and 40-foot Deepening Project. The preliminary results of a reconnaissance report completed by the U.S. Army Corps of Engineers in 2012 indicate the project is feasible from economic, environmental, and engineering perspectives and would enhance economic development opportunities. According to Higginbotham, CHESPLEX will be capable of providing industrial maritime clients wanting to establish or relocate their operations with a “total solution envelope”, including consultation, site selection, infrastructure design and construction, and coordination with local and regional authorities.
Transcript
Volume 77, No. 7July 2013
Published by the Virginia Maritime Association, Norfolk, Virginiaemail: [email protected] • web site: www.VAMaritime.com
Record TEU’s Handled at Port of Virginia T he Virginia Port Authority closed its books
on FY13 handling a record breaking 2.165 million TEU’s, surpassing FY12 figures by 10%.
Rodney W. Oliver, Interim Executive Director of the Virginia Port Authority, indicated, “There are a number of factors that we can attribute this success to: ocean carriers loading their vessels heavy to take advantage of our 50-foot deep channels, an increasing number of first-in and last-out vessel calls, our expanding rail service, our push into new markets like Greensboro (NC), and an improving economy.”
The calendar year volumes for 2013 are approximately 6% higher than volumes for the same period in 2012. “This is the best June we have ever had,” stated Oliver. “We’re also seeing a lot of interest to expand operations by some large port users giving that we believe the growth will continue.”
Boosting Economic Interest on the Elizabeth River’s Southern Branch
On June 19, approximately 50 local business leaders and government officials boarded the Victory Rover for an educational tour of the industrial
maritime businesses and opportunities along the Southern Branch of the Elizabeth River. The tour, hosted by Doug Higginbotham, President, Tidewater Global, LLC, also provided the stage for him to announce the creation of “CHESPLEX,” a private sector initiative to proactively promote, stimulate and revitalize industrial maritime economic development opportunities on and around the Southern Branch of the Elizabeth River.
Containerized cargo, coal, and ship building and repair are the most widely recognized commercial components to Virginia’s ports. Very important, but less noticed, is the diverse array of bulk cargoes imported and exported via the Southern Branch. Attracting new business to the area
could further diversify Virginia’s ports to become a hub to transport bulk, break-bulk and agricultural products.
This is the goal of one of the Port’s Priority Projects: the Southern Branch 45-foot and 40-foot Deepening Project. The preliminary results of a reconnaissance report completed by the U.S. Army Corps of Engineers in 2012 indicate the project is feasible from economic, environmental, and engineering perspectives and would enhance economic development opportunities.
According to Higginbotham, CHESPLEX will be capable of providing industrial maritime clients wanting to establish or relocate their operations with a “total solution envelope”, including consultation, site selection, infrastructure design and construction, and coordination with local and regional authorities.
2
VIRGINIA MARITIMEASSOCIATION
OFFICERSChairman of the Board
thomas W. Godfrey, Jr.
Presidentshirley G. roebuck
ViCe PresidentsJoseph a. dorto
raymond a. newlonJeffrey s. heller
exeCutiVe ViCe President & seCretaryarthur W. moye, Jr.
treasurerJudy m. Barrett
assistant treasurermichael W. Coleman
STAFFViCe President
david C. White
aCCountinG manaGer/Controllersam davis
exeCutiVe assistantJanice s. Klasek
eVents CoordinatorJennifer n. Parham
shiPdesK ClerKlynne h. stonum
memBershiP/PuBliCationCoordinator & editor
susan n. Wisniewski
ANChOR MEMbERSbranscome, Inc.CSX Intermodal
Maersk Line LimitedMcAllister Towing of Virginia
TownebankVirginia International Terminals
Virginia Pilot AssociationVirginia Port Authority
maritime Bulletin is published12 times a year by
Virginia maritime association.subscriptions are available through
membership in the association.
recipient of Presidential “e” and“e star” awards for excellence in export service
recipient of asae Communicationexcellence & honorable
The Transportation Security Administration (TSA) has transitioned to a new enrollment provider, MorphoTrust USA, for the processing of Transportation Workers Identification Credentials (TWIC). The Universal Enrollment Services
(UES) initiative will help standardize enrollments services across TSA.
Visit the UES website at https://universalenroll.dhs.gov/ to find enrollment centers, hours of operations, check enrollment/card status, order an Extended Expiration Date (EED) TWIC or a replacement card. Continue to utilize the TSA website at http://www.tsa.gov/twic, for overall TWIC Program information and requirements.
The UES Call Center is open Monday through Friday, 8:00 a.m. to 10:00 p.m. TWIC inquiries and enrollment center appointments can be made by contacting the UES Call Center at 1-855-347-8371.
TWIC Transitions to Universal Enrollment Services
Canon Virginia Investing $27 Million in Newport News
Governor Bob McDonnell announced that Canon Virginia Inc., a subsidiary of Canon U.S.A., Inc. will invest $27 million to expand its headquarters in Newport News to manufacture toner for Canon’s color copiers. Gov. McDonnell approved
a $3 million performance-based grant from the Virginia Investment Partnership program to support the efforts of the new project. This incentive program is available for existing Virginia companies.
Jim Cheng, Virginia Secretary Of Commerce and Trade stated, “We are thrilled that toner production will now be at the Virginia operation, and are confident that it will provide a strategic advantage to house the process onshore and build on the success that Canon Virginia has experienced in the Commonwealth since 1985.”
Located in Newport News Virginia, Canon Virginia, Inc. serves as Canon’s manufacturing, engineering, recycling and technical support center in the Americas region.
3
MARITIME NEWS
Virginia Added to ZIM’s ZCP Service
ZIM America added Norfolk to its ZIM Container Service Pacific (ZCP) route. The company said the Shanghai-Norfolk transit time of 30 days is
one of the best in the market.
“This latest upgrade of our long-standing ZCP service is aimed at responding to our customers’ needs in this trade, while making our network more efficient,” Rafi Ben-Ari, vice president of shipping at Zim, said. Lea Bogatch-Genossar, President of Zim American Integrated Shipping Services, stated that “With Norfolk being home to our area head office for over a decade, adding a Norfolk call to one of our flagship global services, ZCP, is especially significant for us and for our US customers.”
“This decision provides us a new service offering to/from China and Korea,” said Rodney W. Oliver, the VPA’s interim executive director. “ZIM is very strong in the furniture commodity segment, which is also our number one import commodity, so we believe there are some excellent synergies there.”
ZIM Savannah, the first vessel arriving from the service, docked at APM Terminals on June 16. ZIM will be deploying 10 vessels on the trade route, each with a capacity of between 4,800 twenty-foot equivalent units (TEU) and 5,000 TEU.
Paradise Creek Nature Park Phase I Complete
One June 22, 2013, Phase I of Paradise Creek Nature Park was opened to the public. Paradise Creek and similar projects under development are the backbone
of the Virginia Port Authority’s $60 million compensatory environmental mitigation plan that was specifically designed to offset the effects of developing the eastward expansion.
The development of the Park was a joint effort of the City of Portsmouth, the Elizabeth River Project, and the VPA that began in 2004. Many other generous donors, including members of the Virginia Maritime Association, helped to make this project a success.
The 40 acre plot of land in the heart of Hampton Road’s industrial core was once a heavily polluted waterway; today, it is a $14.6 million park which boasts walking trails, a young marsh and a refuge where scientists have identified more than 188 species of birds, fish, insects and other wildlife.
Photo Courtesy of the Virginia Port Authority
PORT STATISTICS
4
Vess
els
by
Type
Arr
ive
Sail
Arr
ive
Sail
Arr
ive
Sail
Arr
ive
Sail
BU
LK
AM
ER
ICA
N0
00
00
00
0
Jun-
2013
6 m
onth
201
3Ju
n-20
126
mon
th 2
012
FOR
EIG
N10
970
6918
1592
82
Tota
l Ham
pton
Roa
ds4,
043,
107
27,6
19,7
305,
032,
996
26,8
58,0
20TO
TAL
109
7069
1815
9282
NS
1,70
2,18
011
,432
,907
1,74
6,07
510
,525
,240
Pie
r IX
850,
648
7,42
7,01
41,
566,
232
8,30
2,49
4C
OA
L
DTA
1,49
0,27
98,
759,
809
1,72
0,68
98,
030,
287
AM
ER
ICA
N1
117
160
07
7
FOR
EIG
N52
5029
730
655
5329
529
5
Exp
ort C
argo
- H
.R.
3,95
5,00
026
,764
,678
4,95
2,18
026
,222
,349
TOTA
L53
5131
432
255
5330
230
2
NS
1,66
2,15
310
,873
,379
1,74
6,07
510
,287
,619
Pie
r IX
850,
648
7,40
2,16
51,
549,
580
8,28
5,84
2C
OM
BO
DTA
1,44
2,19
98,
489,
135
1,65
6,52
57,
648,
888
AM
ER
ICA
N0
00
00
00
0
FOR
EIG
N6
632
325
528
28
Coa
stw
ise
& O
ther
- H
.R88
,107
855,
052
80,8
1663
5,67
1TO
TAL
66
3232
55
2828
NS
40,0
2755
9,52
80
237,
621
Pie
r IX
024
,849
16,6
5216
,652
CO
NTA
INER
DTA
48,0
8027
0,67
464
,164
381,
398
AM
ER
ICA
N15
1410
610
616
1611
011
3
Sou
rce:
Ham
pton
Roa
ds C
oal P
iers
FOR
EIG
N11
912
173
073
214
214
074
373
5
TOTA
L13
413
583
683
815
815
685
384
8
GEN
ERA
L
AM
ER
ICA
N3
311
111
310
10
May
-201
35
mon
th 2
013
May
-201
25
Mon
th 2
012
FOR
EIG
N8
842
437
853
50
Ham
pton
Roa
ds19
1,36
887
8,41
217
8,58
482
6,29
7TO
TAL
1111
5354
811
6360
Sou
rce:
Virg
inia
Por
t Aut
horit
yO
THER
AM
ER
ICA
N2
217
161
11 5
13
FOR
EIG
N1
17
91
110
9
TOTA
L3
324
252
225
22
May
-201
35
mon
th 2
013
May
-201
25
Mon
th 2
012
RO
RO
Ham
pton
Roa
ds50
,547
,163
224,
824,
386
45,2
54,1
0818
4,83
4,63
7A
ME
RIC
AN
00
66
00
32
Oth
er V
A3,
637,
199
15,2
87,2
681,
603,
810
7,78
0,89
1FO
RE
IGN
89
4342
55
4037
TOTA
L8
949
485
54 3
39
925,516,291919,758,64
456,111,042263,481,45
latoTS
ourc
e: U
.S. C
usto
ms
and
Bor
der P
rote
ctio
nTA
NK
ER
AM
ER
ICA
N0
00
00
01
1
FOR
EIG
N7
651
526
845
41
Jun-
2013
6 m
onth
201
3Ju
n-20
126
mon
th 2
012
TOTA
L7
651
526
846
42
41
10
slesseV fo reb
muN
AM
ERIC
AN
2120
157
155
1820
146
146
Num
ber o
f Pas
seng
ers
064
13,
221
19,4
61FO
REI
GN
211
210
1272
1285
239
235
1306
1277
Sou
rce:
Nau
ticus
TOTA
L23
223
014
2914
4025
725
514
5214
23
Jun-
13YT
D-1
3Ju
n-12
YTD
-12
Pass
enge
r Cru
ises
Cus
tom
s R
ecei
pts
- Virg
inia
Cus
tom
s D
istr
ict
D
istr
ibut
ion
of C
oal D
umpi
ngs
at H
ampt
on R
oads
(in n
et to
ns o
f 2,0
00 lb
s.)
Port
of H
ampt
on R
oads
TEU
's(T
wen
ty F
oot E
quiv
alen
t Uni
ts)
Vess
els
by
Type
Arr
ive
Sail
Arr
ive
Sail
Arr
ive
Sail
Arr
ive
Sail
BU
LK
AM
ER
ICA
N0
00
00
00
0
Jun-
2013
6 m
onth
201
3Ju
n-20
126
mon
th 2
012
FOR
EIG
N10
970
6918
1592
82
Tota
l Ham
pton
Roa
ds4,
043,
107
27,6
19,7
305,
032,
996
26,8
58,0
20TO
TAL
109
7069
1815
9282
NS
1,70
2,18
011
,432
,907
1,74
6,07
510
,525
,240
Pie
r IX
850,
648
7,42
7,01
41,
566,
232
8,30
2,49
4C
OA
L
DTA
1,49
0,27
98,
759,
809
1,72
0,68
98,
030,
287
AM
ER
ICA
N1
117
160
07
7
FOR
EIG
N52
5029
730
655
5329
529
5
Exp
ort C
argo
- H
.R.
3,95
5,00
026
,764
,678
4,95
2,18
026
,222
,349
TOTA
L53
5131
432
255
5330
230
2
NS
1,66
2,15
310
,873
,379
1,74
6,07
510
,287
,619
Pie
r IX
850,
648
7,40
2,16
51,
549,
580
8,28
5,84
2C
OM
BO
DTA
1,44
2,19
98,
489,
135
1,65
6,52
57,
648,
888
AM
ER
ICA
N0
00
00
00
0
FOR
EIG
N6
632
325
528
28
Coa
stw
ise
& O
ther
- H
.R88
,107
855,
052
80,8
1663
5,67
1TO
TAL
66
3232
55
2828
NS
40,0
2755
9,52
80
237,
621
Pie
r IX
024
,849
16,6
5216
,652
CO
NTA
INER
DTA
48,0
8027
0,67
464
,164
381,
398
AM
ER
ICA
N15
1410
610
616
1611
011
3
Sou
rce:
Ham
pton
Roa
ds C
oal P
iers
FOR
EIG
N11
912
173
073
214
214
074
373
5
TOTA
L13
413
583
683
815
815
685
384
8
GEN
ERA
L
AM
ER
ICA
N3
311
111
310
10
May
-201
35
mon
th 2
013
May
-201
25
Mon
th 2
012
FOR
EIG
N8
842
437
853
50
Ham
pton
Roa
ds19
1,36
887
8,41
217
8,58
482
6,29
7TO
TAL
1111
5354
811
6360
Sou
rce:
Virg
inia
Por
t Aut
horit
yO
THER
AM
ER
ICA
N2
217
161
115
13
FOR
EIG
N1
17
91
110
9
TOTA
L3
324
252
225
22
May
-201
35
mon
th 2
013
May
-201
25
Mon
th 2
012
RO
RO
Ham
pton
Roa
ds50
,547
,163
224,
824,
386
45,2
54,1
0818
4,83
4,63
7A
ME
RIC
AN
00
66
00
32
Oth
er V
A3,
637,
199
15,2
87,2
681,
603,
810
7,78
0,89
1FO
RE
IGN
89
4342
55
4037
TOTA
L8
949
485
543
39
925,516,291919,758,64
456,111,042263,481,45
latoTS
ourc
e: U
.S. C
usto
ms
and
Bor
der P
rote
ctio
nTA
NK
ER
AM
ER
ICA
N0
00
00
01
1
FOR
EIG
N7
651
526
845
41
Jun-
2013
6 m
onth
201
3Ju
n-20
126
mon
th 2
012
TOTA
L7
651
526
846
42
41
10
slesseV fo reb
muN
AM
ERIC
AN
2120
157
155
1820
146
146
Num
ber o
f Pas
seng
ers
064
13,
221
19,4
61FO
REI
GN
211
210
1272
1285
239
235
1306
1277
Sou
rce:
Nau
ticus
TOTA
L23
223
014
2914
4025
725
514
5214
23
Jun-
13YT
D-1
3Ju
n-12
YTD
-12
Pass
enge
r Cru
ises
Cus
tom
s R
ecei
pts
- Virg
inia
Cus
tom
s D
istr
ict
D
istr
ibut
ion
of C
oal D
umpi
ngs
at H
ampt
on R
oads
(in n
et to
ns o
f 2,0
00 lb
s.)
Port
of H
ampt
on R
oads
TEU
's(T
wen
ty F
oot E
quiv
alen
t Uni
ts)
5
VMA HIGHLIGHTS
The Association In Action
Committee Update
In June, the VMA continued to represent the interests of the membership and the Port in a variety of forums. The Association continued to actively engage
elected leaders whose decisions can significantly affect Association members and the success of the Port, meeting with several individually and attending the Virginia General Assembly’s House Republican Caucus Retreat and the Democratic Caucus Retreat. These opportunities to educate our elected leaders prove invaluable when they consider legislation that impacts the commercial maritime community. Contributions made to the Maritime Issues Council Political Action Committee (MIC PAC) allow the VMA to meet with political leaders during fundraisers and support the campaigns of the members of the General Assembly that support the maritime industry.
June 6, the James River Partnership held its annual meeting to discuss issues of importance to those parties involved in the movement of waterborne commerce on the James River. Similarly to the Hampton Roads Navigational Summit, the focus of the James River Partnership is to work with all relative stakeholders toward the goal of “Unrestricted Navigation”.
The VMA participated in the June 7 meeting of the Freight Transportation Advisory Committee (FTAC). The FTAC is an advisory committee, providing input on the transportation requirements for freight movement, to the Hampton Roads Transportation Planning Organization which defines the transportation priorities for the region. The agenda included discussion of the state’s establishment of the Virginia Freight Transportation Advisory Committee, a study on Future Congestion Experienced by Trucks in Hampton Roads, an Economic Analysis of Toll Pricing, and Project Prioritization in light of new information and funding.
On June 20, VMA was honored to be part of a harbor tour celebrating and visiting sites where the Craney Island Eastward Expansion has begun to emerge from the Elizabeth River. The project reached an important milestone when the South and Division cross dikes rose above sea-level for the first time. This exciting stage in the project, which will be home to a state-of-the-art cargo terminal, is a result of more than a decade of research, engineering, design and permitting.
TERMINAL OPERATORS COMMITTEE (June 10): The committee discussed the progress and information to be included in a web-based Commercial Marine Facilities Guide; a searchable database that will provide information on the marketable attributes of Virginia’s private and public commercial marine facilities and be promoted by the VMA.Another topic was the next steps in the Southern Branch Deepening Project, which will require significant data from the affected facilities and industry input to Congress and the Administration. Other topics included TWIC Extensions and Renewals, the reorganization of the Virginia Port Authority and Virginia International Terminals, and issues of concern for the U.S. coal export market.
JOINT COMMITTEES MEETING (June 12): A scheduled meeting of the Towing & Barge Operators Committee was opened up to also include the Harbor-Anchorage Dredging and Navigation Rules, Steamship Trade, and Terminal Operators committees. The focus of the meeting
was comments and discussion with Capt. John Little, U.S. Coast Guard Captain of the Port, on the topics of Heavy Weather Planning and Navigation Issues Related to Midtown Tunnel Construction. The remainder of the meeting addressed several topics of ongoing concern, such as; the dockside examination program for towing vessels, bridge opening and schedules, and regulatory changes related to manning on vessels.
MEMbERShIP COMMITTEE (June 19): In keeping with specific initiatives called for by VMA’s 5-year Strategic Plan to grow the membership, the committee approved for Board action a new membership value proposition statement. A discussion ensued about information to be gathered as an analysis of the Association’s dues structure. A work plan was agreed to that will provide a road map when a Communications & Membership Director is brought onboard.
