News and Information from the Port of Hampton Roads. Craney Island Expansion Receives Final Congressional Authorization

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1 MARITIME BULLETIN News and Information from the Port of Hampton Roads Volume 71, No 11, November, Years and Growing Craney Island Expansion Receives Final Congressional Authorization When both the U.S. House of Representatives and the U.S. Senate voted to overturn President Bush s veto of the Water Resources Development Act (WRDA), it gave the final authorization for the Craney Island Expansion project. Legislation in the WRDA also authorizes $356.1 million for Craney Island, a fourth marine terminal for the Virginia Port Authority. It is estimated that when completed the new container terminal could bring another 4 million TEU s into the Port of Virginia along with an additional 100 distribution centers. The economic impact of Craney Island could generate approximately 54,255 jobs totalling $1.6 billion in wages and $155 million in state and local taxes annually. The potential increase of containers being processed through the port could propel Virginia to be the number one container port on the East Coast. Published by the Virginia Maritime Association, Norfolk, Virginia vma@portofhamptonroads.com -- web site: Proposed Craney Island Cargo Terminal Tunnels Rising for the Heartland Corridor Norfolk Southern began its ambitious engineering project to raise 28 railway tunnels along the Heartland Corridor, currently used for coal trains and single container trains. The first railroad tunnel to be modified is at Cowan in western Virginia. Work will begin on three other Virginia tunnels early next year. The Heartland Corridor allows double-stacked container trains to travel faster to the Mid-West by reducing the number of transit miles. Currently, double-stacked intermodal traffic has to be routed through Tennessee or Pennsylvania. The more direct route will reduce transit time between the Port of Virginia and the Chicago marketplace by 1.5 days. The Heartland Corridor project, which is projected to cost approximately $266 million, is a joint venture between Norfolk Southern, Virginia, West Virginia, Ohio, and the Federal Government. Transporting containers on double-stack trains is a cleaner and more efficient way for shippers to reach customers in the Mid-West. Moving cargo through the Heartland Corridor will be beneficial as the anticipated number of cargo containers coming to the port rises.

2 Agency Highlights 2 VIRGINIA MARITIME ASSOCIATION Officers Chairman of the Board Meade G. Stone, Jr. President Kip Hinkle Vice Presidents Capt. J. William Cofer Joseph A. Dorto Shirley G. Roebuck Executive Vice President & Secretary Arthur W. Moye, Jr. Treasurer Judy M. Barrett Assistant Treasurer Stephen M. Carmel Staff Administrator David C. White Executive Assistant to Executive Vice President Janice S. Klasek Accounting Kristie A. Acors Jennifer N. Parham Shipdesk Clerk Lynne H. Stonum Membership Desk/Editor Susan N. Wisniewski MARITIME BULLETIN is published 12 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 Communication Excellence & Honorable Mention Awards The establishment of the U.S. Customs Services began over 200 years ago when the First Congress passed, and President George Washington signed, the Tariff Act of July 4, 1789, allowing collection of duties on imported goods. Four weeks later, the fifth act of Congress established Customs and its ports of entry. Tariffs collected by Customs paid for the nation s early growth and infrastructure and by 1835 cleared the young country of all its debt. Today Customs Border Patrol (CBP) is a major revenue source for the Federal Government and has a budget of approximately $8 billion. The role of the CBP is to secure America s borders at all times, which includes 325 seaports and airports nationally. To ensure these ports are safe, the CBP works in conjunction with numerous agencies and the private sector within each port of entry. These partners are all involved in the daily operations, security, and decision-making aspects of the ports, as well as long-term planning. To further insure that all trade coming into the United States is free from terrorist tampering, the CBP has initiated programs to secure cargo within the supply chain. Customs-Trade Partnership Against Terrorism (C-TPAT) allows importers who meet certain security standards expedited processing benefits, enabling the CBP to focus its resources on high-risk shipments. Through the Container Security Initiative program, CBP officials work with host customs administrations to establish security criteria for identifying high-risk containers using non-intrusive technology to screen selected containers before they are shipped to the U.S. Through Automated Commercial Environment (ACE), CBP modernized commercial trade processing system with features designed to consolidate and automate border processing. It provides a solid technology foundation for all border security initiatives within CBP. CBP is the largest uniformed law enforcement agency in the country. They station 18,000 officers at access points around the nation - land, air and seaports. They deploy more than 11,000 Border Patrol agents between ports of entry to prevent illegal entry. They supplement these forces with Air and Marine officers, agriculture specialists and other professionals. These men and women are on the frontline to secure our borders and commercial trade. IN THIS ISSUE 1. Cover Page 2. Agency Highlights 3. Maritime News 4. Port Statistics 5. News Briefs & Announcements 6. VMA Highlights 7. Membership News 8. Club Contacts/Upcoming Events

3 Maritime News Local Leader Receives Darden Award G. Robert Aston, Jr., President and CEO of TowneBank, was presented the Darden Award for Regional Leadership from the Civic Leadership Institute at a reception held at the Chrysler Museum of Art on November 15, Mr. Aston was chosen for this award for his lifelong commitment to improving life for those who live in Hampton Roads. The Darden Award was established in honor of Joshua P. Darden, Founder Emeritus of the CIVIC Leadership Institute. The CIVIC Leadership Institute is comprised of more than 400 senior-level leaders throughout the region. They build on their relationships with each other to improve life in Hampton Roads through service on boards and commissions. VMA Carter T. Gunn Scholarship Awarded On November 6, 2007, Old Dominion University hosted their annual Scholarship Luncheon. Ms. Morgan Elder, a Junior at Old Dominion University, was awarded the Virginia Maritime Association/Carter T. Gunn Scholarship. Ms. Morgan is majoring in Maritime and Supply Chain Management at ODU s College of Business and Public Administration. Ms. Morgan is looking forward to pursuing a career in Maritime Supply Chain Management upon her graduation in May The Virginia Maritime Association changed the name of the scholarship in 2006 to honor Carter T. Gunn. Rich Conti Heads for Richmond Richard Conti, Executive Director of Nauticus, is leaving the post after 10 years of spearheading programs at Nauticus. Under Rich s leadership, Nauticus became a successful venture for the City of Norfolk. In 2000, the USS Wisconsin became part of the museum, attracting 400,000 visitors annually. The Half Moone and Celebration Center, the passenger cruise terminal, opened in April 2007 and drew in more than 91,000 passengers during its first cruise season. Rich was a tremendous asset to Nauticus and instrumental in bringing the cruise terminal to Norfolk. The Virginia Maritime Association is sorry to see Rich leave and wishes him the best as the new Director of the Virginia Science Museum in Richmond. Requests for Christmas Donations to fill Santa s Sack Although Christmas is still a few months away the International Seamen s House is requesting donations for the care packages they prepare for the seamen of the ships arriving in the Port of Hampton Roads. Items needed include: caps; scarves; socks; gloves; disposable razors; shaving cream; bath size soap; shampoo; wash cloths; combs; playing cards; pencils; individually wrapped candies; and videos. Mail or bring any of these items to: 1222 W. Olney Road, Norfolk, VA By November 30, 2007 Any assistance you can offer is greatly appreciated. 3

4 Vessels by Oct-07 YTD 07 Oct-06 YTD 06 Distribution of Coal Dumpings at Hampton Roads (in net tons of 2,000 lbs.) Type Arrive Sail Arrive Sail Arrive Sail Arrive Sail BULK AMERICAN Oct month 2007 Oct month 2006 FOREIGN Total Hampton Roads 2,477,074 22,651,018 2,204,099 18,029,010 TOTAL NS 841,517 11,042,867 1,310,695 9,002,530 Pier IX 789,373 5,951, ,203 5,109,356 COAL DTA 846,185 5,656, ,201 3,917,124 AMERICAN FOREIGN Export Cargo - H. Rds. 1,897,612 17,695,914 1,759,493 12,869,831 TOTAL NS 800,184 10,360,241 1,230,181 8,208,611 Pier IX 390,427 2,959, ,027 2,354,402 COMBO DTA 707,001 4,376, ,285 2,306,818 AMERICAN FOREIGN Coastwise & Other - H.R 579,463 4,955, ,606 5,159,179 TOTAL NS 41, ,626 80, ,919 Pier IX 398,946 2,992, ,176 2,754,954 CONTAINER DTA 139,184 1,279, ,916 1,610,306 AMERICAN Source: Hampton Roads Coal Piers FOREIGN TOTAL Port of Hampton Roads TEU's (Twenty Foot Equivalent Units) GENERAL AMERICAN Sep month 2007 Sep month 2006 FOREIGN Hampton Roads 165,637 1,551, ,637 1,511,270 TOTAL Source: Virginia Port Authority OTHER AMERICAN FOREIGN Customs Receipts - Virginia Customs District TOTAL Sep month 2007 Sep month 2006 Hampton Roads * $52,454,348 $483,570,374 53,998,928 $474,225,980 RORO Other VA * $5,435,756 $64,417,332 1,805,942 $33,077,472 AMERICAN FOREIGN Total $57,890,104 $547,987,706 $55,804,870 $507,303,452 TOTAL Source: U.S. Customs and Border Protection: Figures for September '06 are incomplete TANKER AMERICAN Passenger Cruises FOREIGN Oct month 2007 Oct month 2006 TOTAL Number of Vessels AMERICAN Number of Passengers 16,432 85,950 10,938 44,560 FOREIGN Source: Nauticus TOTAL

5 News Briefs & Announcements Committee Update Membership Committee The Anchor Membership Subcommittee met October 9 th to discuss the status and next steps for the Anchor Membership campaign. Anchor Members are Association members willing to provide additional financial support in recognition of the value of the Virginia Maritime Association to their respective operations. Towing and Barge Operators Committee At the October 10th meeting the committee made final preparations for the Towing Vessel Safety Seminar to be held October 18 th. Committee members were encouraged to provide the U.S. Coast Guard with input as the agency prepares a Navigation and Vessel Information Circular regarding medical qualifications of mariners. The committee was updated on regulations being drafted by the Environmental Protection Agency to reduce vessel emissions. Inland Transportation Committee The Driver Workforce Development Subcommittee met October 17 th to discuss the merits of a new insurance product for truck drivers and next steps for local driver recruitment efforts. Maritime Briefings Committee On October 26 th the Maritime Briefings Committee identified three topics and potential speakers to work toward scheduling for future events. Strategic Planning Committee During their October 30 th meeting the Strategic Planning Committee began the process of reviewing, updating, and discussing other objectives of the VMA s Long Range Plan (LRP). Elements of the LRP discussed in this meeting included Membership Expansion and Retention, Public Relations and Advocacy, Environmental Awareness, and Use of Technology. Outings Committee The Outings Committee met October 31 st to conduct a review of the Chesapeake Bay Feast held October 9 th. The committee considered comments received from those in attendance about changes to the menu and location of the event, impacts on attendance, and the financial performance of the event as it discussed plans for the 2008 Chesapeake Bay Feast. Norfolk Warehouse and Distribution Center Acquired by ContainerPort Group ContainerPort Group is expected to acquire the two largest divisions of the Taylor Companies: Norfolk Warehouse and Distribution Center and Taylor Logistics. Robert Taylor, Chief Executive Officer of the Taylor Companies indicated the deal between Cleveland based ContainerPort Group and Taylor will be sealed on December 1. Richard C. Coleman, President of ContainerPort stated that purchasing these two segments of the Taylor Companies allows ContainerPort to expand their business in the Hampton Roads area. He is excited about the growth opportunities the port has to offer. Coleman also indicated that both divisions will retain the Taylor name and employees. 5

6 VMA Highlights Your Association in Action October opened with a unique opportunity for the VMA and port leaders to promote the channel dredging priorities of the Port of Hampton Roads directly with Assistant Secretary of the Army for Civil Works, John Paul Woodley, during a tour of our waterways. Assistant Secretary Woodley is responsible for the Civil Works mission of the U.S. Army Corps of Engineers and saw for himself the needs the Port will have for Wider, Deeper, Safer navigation channels to support future growth. From time to time the Virginia Port Authority (VPA) brings to the Port their entire international and domestic marketing staff to share information, provide them with operations updates, and discuss marketing strategies that will help them promote the Port. During October, the VMA had the opportunity to provide the VPA s entire marketing team with information about current events in the broader maritime community and the opportunities and issues affecting the Port they are marketing to the world. VMA represented the interests of our membership at the semi-annual meeting the National Association of Maritime Organizations (NAMO) held at the U.S. Merchant Marine Academy at Kings Point, NY. Education in the Maritime Industry was the theme of the meeting and other topics covered included Ocean Observing Systems, Security and TWIC issues, Environmental issues, and Customs and Border Proctection (CBP) issues. NAMO is comprised of maritimerelated organizations throughout the United States and represents its members at a national level in all matters affecting foreign or domestic waterborne commerce using U.S. ports. Throughout October the Association continued to work with industry, community, and city leaders to improve the traffic issues on Hampton Boulevard in Norfolk. In September, concerned Norfolk would take overreaching and harmful action, the Association had proposed measures to reduce truck traffic on Hampton Boulevard. The proposal also called for establishing a working group of representatives of the various entities contributing to Hampton Boulevard traffic to discuss a more comprehensive solution. At the October 23 rd meeting of the City Council the VMA provided public comment supporting that same proposal and the City Council passed by a vote of 7-1. The VMA provided a briefing to a class of approximately twenty senior officers from various branches of the military attending the War College of the Marine Corps University. The class was provided information on all the various industries that make the Port work, how the Port fits in the international supply chain now and in the future, the role the Association plays and the systems approach that has worked for VMA. The Association seizes upon such opportunities to improve awareness about Virginia s maritime industry. C.V International Launches a New All-Water Service T. Parker Host Announces Promotions C V International (CVI) has launched a weekly less-than-container load (LCL) service from Hong Kong to the Port of Virginia. CVI started the service in cooperation with their Hong Kong based partner, Orient Star Group. This is the first direct, all-water service of its kind in Norfolk. The goal of the service was to provide mid- Atlantic imports a more reliable alternative to the congestion in other major east and west coast ports. 6 David F. Host, President & CEO of T. Parker Host, Inc., announced that four of their employees have been promoted. Robert (Bobby) W. Scott, III was promoted to Vice President Operations, Billie K. Russell was promoted to Vice President Traffic, Kathryn M. Portlock was promoted to Vice President Controller, and Keri D. Jenkins was promoted to Vice President Administration. Congratulations.

7 Membership News New Members McPhillips, Robert & Deans, PLC Accountants-Certified Public 150 Boush Street, Suite 150 Norfolk, VA (757) FAX: (757) Mr. Jeffrey F. Estes, CPA Recommended by: Membership Increase Roster Updates Please make note of the changes in your Roster: pg.24 CP&O LLC mailing addres: P. O. Box 6225 Norfolk, VA pg. 53 Target Replace Stacy Houston with: Mr. Jeff Frye pg. 56 UTi United States, Inc. new address: 2001 Old Greenbrier Rd. Chesapeake, VA pg. 59 Wartsila Lips, Inc. change contact to: Aaron Bresnahan new numbers: ; FAX In Memorium for Jonathan A. Richardson Virginia Maritime Association is saddened to report a tragedy that occurred at Norfolk International Terminal on November 14, when Jonathan A. Drew Richardson, 29 years of age, was seriously injured on the terminal and died on the way to the hospital. Drew had been employed by Virginia International Terminals since March 2006 and worked as a Foreman. This accident is a sad reminder, that while many benefit from the Port, the work can be hazardous. ODU Students Visit Ports Overseas The International Maritime, Ports and Logistics Management Institute of Old Dominion University offered a program over the summer that focused on Ports, Transportation Systems and Trade Flows with the European Union. Dr. Larry Filer, Associate Professor of Economics, members of the ODU Faculty and students, embarked on a two week journey to Western Europe to study the history of the shipping industry and visited several of its largest ports. The experience allowed the students to gain an in-depth understanding of how shipping, along with its supporting activities, influences our economy. Southside Virginia Community College Opens a New Truck Driver Training Site On September 26, 2007, the Southside Virginia Community College (SVCC) opened a new Truck Driver Training site known as Greensville/Emporia. This new location is designed to serve its students in the Eastern portion of the College s service area. SVCC s Truck Driver Program has served over 1200 students since its inception in SVCC can offer this service to the communitity in a convenient and cost effective manner through funding received by the Virginia Maritime Association from the Virginia Tobacco Indemnification and Community revitalization Commission Special Project Grant Program. 7

8 PRESORTED STANDARD U.S. POSTAGE PAID NORFOLK, VA PERMIT NO East Plume Street Norfolk, Virginia P.O. Box 3487 Norfolk, Virginia (757) ; FAX web site: Club Contacts Upcoming Club Events Customs Brokers & Int l Freight Forwarders Assn. Contact: Katie Carney, Hampton Roads Coal Association Contact: Michael Carmon, Hampton Roads Foreign Commerce Club website: Contact: Susan Long, Hampton Roads Traffic Club Contact: Peter Simmons, Propeller Club - Port of Norfolk Contact: Ray Wittersheim, x 333 Society of Maritime Industries Contact: Dave Wooley, Tidewater Motor Truck Association Contact: Shirley Roebuck, Bill Jackson, Virginia Ship Repair Association Contact: Mal Branch, The Women s Transportation Club of Hampton Roads Contact: Anita Bonet, Dec 12 Dec 12 Dec 13 Dec 18 Dec 19 Dec 20 Jan 9 Jan 9 Jan 10 Jan 15 Jan 16 Jan 17 Jan 30 Feb 13 Feb 13 Feb 14 Feb 18 Hampton Roads Traffic Club Joy Fund Night 5:30 Holiday Inn, Greenwich Road, Va. Beach Hampton Roads Coal Association 6:15 Town Point Club, Norfolk Propeller Club 11:30 Membership Luncheon, Town Point Club, Norfolk Virginia Ship Repair Association 12:00 Portsmouth Renaissance Hotel Hampton Roads Foreign Commerce Club 11:30 Silent Auction, Town Point Club, Norfolk Customs Brokers & Int l Freight Forwarders Assn. 12:00 Radisson Hotel, Norfolk Hampton Roads Traffic Club No Meeting Scheduled Hampton Roads Coal Association 6:15 Town Point Club, Norfolk Propeller Club 11:30 Membership Luncheon, Town Point Club Virginia Ship Repair Association 12:00 Portsmouth Renaissance Hotel Hampton Roads Foreign Commerce Club 11:30 Town Point Club, Norfolk Customs Brokers & Int l Freight Forwarders Assn. 11:30, Town Point Club, Norfolk Tidewater Motor Truck Association 6:00 Holiday Inn Express Hampton Roads Coal Association 6:15 Town Point Club, Norfolk Hampton Roads Traffic Club 5:30 Port Night, Holiday Greenwich Rd. Propeller Club 11:30 Membership Luncheon, Town Point Club Virginia Ship Repair Association 12:00 Portsmouth Renaissance Hotel