MARITIME BULLETIN News and Information from the Port of Hampton Roads

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1 MARITIME BULLETIN News and Information from the Port of Hampton Roads Volume 74, No. 2, February 2010 The Maritime Community Mourns an Icon The maritime community lost an icon on February 5 th, when Edward L. Brown, Sr. passed away at his home in Virginia Beach after a brave struggle with colon cancer. Ed began his career on the waterfront over 50 years ago as a Longshoreman. His dedication to his ILA family raised him through the ranks to become the International Vice President for the International Longshoremen s Association and General Vice President, Atlantic Coast District, International Longshoremen s Association. Ed was instrumental in negotiating fair contracts for his fellow brothers and sisters in the Union. He was a major player in establishing MILA, the health plan for the ILA workers. ILA President Richard Hughes, commented that without Ed Brown the ILA s ability to create this great health care plan for thousands of ILA members and their families would have never happened. Roger Giesinger, President of the Hampton Roads Shipping Association (HRSA), stated that Ed led this Union to greatness with his forward-thinking and his ability to make decisions based on what was right, not on what was popular. Ed s interest went far beyond helping his fellow Union members. He was instrumental in expanding community outreach programs in Hampton Roads with fundraising efforts to combat diabetes and support education. In 2002, in honor of Ed Brown, Sr., the ILA s Hampton Roads District Council and HRSA established an endowed professorship in management at Norfolk State University in his name. Ed lived in his belief that each person has a responsibility to give back to the community. He devoted his time to civic matters. Over the years Ed received numerous honors, including Man of the Year in 1984, by the Hunton YMCA; the Martin Luther King, Jr. Appreciation Award for Labor activities in 1995; the Distinquished Service Award in 2005 by the Virginia Maritime Association; and in 2006, his 50 years of service on the Virgnia waterfront was recognized in Virginia House of Delegates Joint Resolution No Many of Ed s longtime friends and collegues paid their respects to Ed and his family members during the funeral services held on February 11, A moment of silence was observed at 11:00 a.m. at APM Terminals, Lambert s Point Docks, Newport News Marine Terminals, Norfolk International Terminal, and Portsmouth Marine Terminal in respect and honor of Ed. Ed s life reflected his motto: Anything can be achieved with hard work and dedication, provided that when you give out, you don t give up. He was a man of integrity and will be greatly missed. Published by the Virginia Maritime Association, Norfolk, Virginia vma@portofhamptonroads.com -- web site:

2 VIRGINIA MARITIME ASSOCIATION Officers Chairman of the Board Kip Hinkle President Capt. J. William Cofer Vice Presidents Joseph A. Dorto Thomas W. Godfrey, Jr. Shirley G. Roebuck Executive Vice President & Secretary Arthur W. Moye, Jr. Treasurer Judy M. Barrett Assistant Treasurer Stephen M. Carmel Staff Vice President David C. White Port of Virginia Meets the Future President s Day marks an important milestone in the Port of Virginia. It was the day Mediterranean Shipping Company s (MSC) MSC Tomoko, the largest container vessel to ever visit the port, sailed over the Chesapeake Bay Bridge bound for Norfolk International Terminals. This is the day the Port has been preparing for. The future is here, and the port is ready. The MSC Tomoko has the capacity of transporting 8,400 TEU s. Her dimensions classify her as a post-panamax vessel, which means she is too large to transport through the Panama Canal and must sail through the Suez Canal. This vessel is part of MSC s Golden Gate service connecting China and Southeast Asia with the U.S. East Coast ports via the Suez Canal. Jerry A. Bridges, Executive Director, Virginia Port Authority, states, The arrival of the MSC Tomoko marks an exciting milepost for the VPA. Not all vessels coming to Virginia will be this size, but it s a start. The Port of Virginia has been preparing for this vessel, and those like her, for many years. Improvements were made to cargo handling infrastructures, new cranes added, new berths built, and container yards reconfigured to accommodate the Suez Class size vessels. Executive Assistant to Executive Vice President Janice S. Klasek Accounting Kristie A. Acors Jennifer N. Parham Shipdesk Clerk Lynne H. Stonum Membership/Publication Coordinator/Editor Susan N. Wisniewski Anchor Members Branscome, Inc. Maersk Line Limited McAllister Towing of Virginia TowneBank Virginia International Terminals Virginia Pilot Association Virginia Port Authority MARITIME BULLETIN is published 12 times a year by Virginia Maritime Association. Subscriptions are available through membership in the Association 2 Recipient of Presidential E and E Star Awards for Excellence in Export Service Recipient of ASAE Communication Excellence & Honorable Mention Award Craney Island Project Continues to Move Forward President Obama s proposed federal budget includes $1 million toward the development of Craney Island. When complete, Craney Island Marine Terminal will be the newest, most modern marine terminal in the United States. The $2.2 billion, 600 acre complex will be built in three phases over the next years. In a study conducted by the Army Corps of Engineers in 2005 it was estimated that the terminal would generate 54,000 jobs with wages of $1.7 billion and local tax revenues of $155 million. Our thanks goes to the White House and to Virginia s delegation on Capitol Hill that pushed for inclusion in the budget. Reaching this point required tremendous effort and we truly appreciate it, stated Jerry Bridges, Executive Director for the Virginia Port Authority. This clearly demonstrates the Obama Administration s commitment to this strategic project, Bridges continued. IN THIS ISSUE 1. Cover Page 5. New Briefs and Announcements 2. More News 6. VMA Highlights 3. Maritime News 7. Membership News 4. Port Statistics 8. Club Contact/Upcoming Events

3 Maritime News State of the Port Address Joseph A. Dorto, President and CEO, Virginia International Terminals (VIT), delivered his annual State of the Port address to 160 members of the port community at the Hampton Roads Foreign Commerce Club s January 20 th meeting at Norfolk Yacht and Country Club. Mr. Dorto commented on the impacts of the recession on the broader economy and the port; cautioning that the road to recovery would be long. Citing an article from the Journal of Commerce, he stated that the recession was responsible for $20 billion in combined losses by the top 20 shipping companies worldwide in In 2008 the port s container volume was million TEU (twentyfoot equivalent units) and only million TEU in 2009; a 16% decline. To remain competitive VIT had to lay off 25% of its staff and put a freeze on raises and bonuses; decisions made out of necessity. (l-r; Ed Merkle, Foreign Commerce Club President, Joe Dorto VIT President & CEO) Moving forward, according to analysts container traffic is not likely to return to pre-recession levels until 2012 or later, and a 2.4% over-all increase in container volume is projected for The Port is positioned to thrive as economic and trade conditions improve. In 2009 Joe Ruddy was selected to succeed Rick Knapp as the COO of VIT and the VPA s marketing staff was integrated with VIT s sales staff, allowing the team to be more involved with the customers. Recognizing the Port s current and future value, three companies placed bids to operate the state-owned terminals under Public-Private Partnership arrangements. Mr. Dorto stated that the single biggest event that transpired in 2009 for VIT was discussions with APM Terminals which could result in VIT becoming the terminal operator at APM Terminals Virginia. Dorto said it presents a fantastic opportunity for the port to once again have all the container terminals under one umbrella. It would allow VIT to successfully manage and market Newport News Terminal and Portsmouth Marine Terminal as breakbulk, Ro-RO, project cargo, or bulk terminals and better compete with ports in New York, Charleston and Savannah. If the deal between VIT and APM goes through, it will allow VIT to go after other cargoes and draw business away from competing ports and bring it to Virginia. In 2010, safety is the biggest single priority for VIT, and should be for the Port and everyone who does business with the Port. In the last few years, there have been five deaths on our port s container terminals. This is unacceptable. Although these accidents weren t all directly related to port operations, they non-theless, happened on our terminals. Dorto assured VIT s number one priority is the safety of their employees and they are taking steps to improve their safety procedures. Second on the list of VIT s priorities is to concentrate on utilizing the new sales & marketing team to be more involved with the direct dealings with the customers, negotiating contracts and increase business. The Port is serviced by two of the largest rail companies in the United States, CSX and Norfolk Southern, and VIT will emphasize the rail opportunities we have in the port. Norfolk Southern is about to open its new Heartland Corridor, which will cut transit time between Virginia and the Mid-West by 1 1/2 days, giving us the best transit time on the East Coast. The rail service in this port could be stacked up against any service provided in the United States, even the West Coast. Finally, while things are a little slower at the terminals, VIT plans to make the terminals as efficient as possible. They will concentrate on increasing turn times at the gates and improving the quality of the chassis and containers that move on and out of the terminals. When the chassis pool began in early 2000 it put Virginia on the map and now is the time to concentrate on those kinds of innovative improvements that got us where we are today. In 2010 VIT will work to ensure it has the best productivity and to move truckers in and out of the terminal quickly and safely. 3

4 Vessels by Jan-10 YTD-10 Jan-09 YTD-09 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 Jan month 2010 Jan month 2009 FOREIGN Total Hampton Roads 3,390,061 3,390,061 2,674,366 2,674,366 TOTAL NS 1,641,865 1,641,865 1,328,975 1,328,975 Pier IX 720, , , ,761 COAL DTA 1,027,255 1,027, , ,630 AMERICAN FOREIGN Export Cargo - H. Rds. 2,914,088 2,914,088 2,204,080 2,204,080 TOTAL NS 1,610,635 1,610,635 1,183,619 1,183,619 Pier IX 623, , , ,938 COMBO DTA 680, , , ,522 AMERICAN FOREIGN Coastwise & Other - H.R 475, , , ,286 TOTAL NS 31,230 31, , ,356 Pier IX 97,566 97,566 5,822 5,822 CONTAINER DTA 347, , , ,108 AMERICAN Source: Hampton Roads Coal Piers FOREIGN TOTAL Port of Hampton Roads TEU's (Twenty Foot Equivalent Units) GENERAL AMERICAN Dec month 2009 Dec month 2008 FOREIGN Hampton Roads 148,198 1,745, ,935 2,083,278 TOTAL Source: Virginia Port Authority OTHER AMERICAN FOREIGN Customs Receipts - Virginia Customs District TOTAL Dec month 2009 Dec month 2008 Hampton Roads $50,447,418 $601,795,535 $49,174,433 $660,987,669 RORO Other VA $2,090,033 $25,948,414 $4,780,684 $56,011,071 AMERICAN FOREIGN Total $52,537,451 $627,743,948 $53,955,117 $716,998,740 TOTAL Source: U.S. Customs and Border Protection TANKER AMERICAN Passenger Cruises FOREIGN Jan month 2010 Jan month 2009 TOTAL Number of Vessels AMERICAN Number of Passengers FOREIGN Source: Nauticus TOTAL

5 News Briefs & Announcements River Star Companies Honored Kinder Morgan Elizabeth River Terminal (KMERT) was recognized as a Model Level River Star by the Elizabeth River Project (ERP) during their January luncheon. KMERT partnered with the ERP to restore 6.8 acres of tidal wetlands at Money Point in Chesapeake, the largest voluntary restoration project on the river. Because of their efforts in transforming a field of invasive reeds into healthy tidal wetlands, crabs, fish, and wading birds began returning to the shoreline. Phil Steafast, Operations Manager for the terminals, stated KMERT wants to try working on more projects like this with the Wildlife Habitat Council and add to what KMERT has already done. ERP s River Stars Program is one of the most successful local pollution prevention and habitat programs in Virginia. Model Level is the highest achievement of a River Star, reaching this plateau indicates the company was exceptional in reducing pollution and restoring wildlife habitat while mentoring others as community leaders in environmental stewardship. Other members of the maritime community were also acknowledged during the luncheon. Companies that advanced to Achievement Level in the River Star Program were Maersk Line, Limited for adopting ERP s 40-acre Paradise Creek Nature Park in Portsmouth, marking trails, KMERT wetland restoration at Money Point, Chesapeake photo courtesy of the Elizabeth River Project clearing litter and removing invasive vines; Marine Hydraulics International now features a 300 buffer planting of native trees, shrubs and flowers to absorb runoff and provide habitat along the shore on the main stem of the Elizabeth River and; Perdue s Chesapeake plant switched loading processes to reduce fugitive dust and improve stormwater runoff, implemented full-time street sweeping, installed filters at all inlets, and filtering bales at high priority inlets. Earning spots at the Sustained Distinquished Performance level were Accurate Marine Environmental for established a stormwater management system for the company s three barges and; BAE Systems, Norfolk Ship Repair which expanded its oyster restoration efforts by growing 6,000 oysters in floats near the Titan drydock. With the assistance of River Star companies the Elizabeth River s heritage as a living ecosystem can be reclaimed. Maritime Leaders Head to Richmond for Port Day Excerpt from the Virginia Port Authority blog: On Thursday, Feb. 18 th, the Virginia Maritime Association (VMA) led a large delegation of state maritime professionals to Richmond for the third annual Port Day at the Virginia General Assembly. More than 40 Port stakeholders, representing a diverse cross-section of the industry, reminded Virginia s elected leadership of the vital contributions the Port of Virginia makes to the Commonwealth. The delegation requested the continued support of the General Assembly. More than one dozen senators and delegates, predominantly from Hampton Roads, joined Secretary of Transportation Sean Connaughton and Secretary of Commerce & Trade James Cheng in addressing the visitors. VMA President Capt. Bill Cofer of the Virginia Pilots Association and Delegate Bob Purkey (R-Virginia Beach), led the discussions. Speaker of the House William J. Howell (R-Fredericksburg) also shared brief remarks as did Virginia Port Authority Executive Director Jerry Bridges. 5

6 VMA Highlights Association in Action Much of the Association s efforts each January revolve around representing the interests of the VMA membership and the maritime industry during the legislative session of Virginia s General Assembly. The 2010 session began January 13 th and trips were made to Richmond to participate in various committee meetings and events and to meet with members of the new administration and our legislators about legislation impacting Virginia s maritime industry. During January the VMA was pleased to meeting with senior officials from the City of Portsmouth to discuss maritime related economic development opportunities. Recognizing that Port related jobs already constitute a large percentage of Portsmouth s employment base the City of Portsmouth has set development of the Maritime and Logistics industries as top economic development priorities. The City s commitment to Port related economic development was evidenced by the participation in the meeting of Council member Elizabeth Psimas (the Council s maritime liaison), City Manager Kenneth Chandler, City Attorney Tim Oksman, and Development Manager Mallory Kahler. On January 28 th, the VMA added its support to plans to bring high-speed passenger rail service to Hampton Roads during a public hearing held by the Department of Rail & Public Transportation (DRPT). Among other benefits, dependable and reliable high-speed rail service will improve regional transportation and foster economic development that could bring more business to the Port. The VMA encouraged members to attend the public meeting and officially endorsed the position adopted by our regional transportation officials for the extension of high-speed rail service from Washington, D.C. to Richmond/Petersburg and the Hampton Roads region. Strong attendance and consistent messages delivered a strong argument to DRPT about the need for this project. Committee Update Berkley Bridge Ad-hoc Committee In January the Berkley Bridge Ad-hoc Committee continued to address concerns with new restrictions on the drawbridge operations at the Berkley Bridge. The new restrictions limit daytime bridge lifts for transiting vessels to 9:00a.m., 11:00a.m., 1:00p.m., and 2:30p.m. and impede maritime related commerce on the Eastern Branch of the Elizabeth River. The committee has recommended and worked to develop support for the inclusion of certain bridge lift operating procedures needed to meet the reasonable needs of navigation. International Trade Symposium Committee Discussions held in the January meetings of the International Trade Symposium Committee remained focused on topic development and the selection of speakers. The theme of the symposium will be Charting New Horizons and select panel topics will be Export Expectations, Reaching New Horizons, and Seeing Green. The committee advanced plans for marketing the event and sponsorship opportunities. VMA s International Trade Symposium and 90th Annual Maritime Banquet are scheduled for May 13, Towing and Barge Operators Committee The January 13 th meeting of the Towing and Barge Operators Committee addressed several current topics of importance to that aspect of the maritime industry. The agenda included updates and discussions related to the Berkley Bridge Drawbridge Operations, Subchapter M Regulations, Dockside Vessel Inspections, Vessel General Discharge Permits, and Engine Kits. 6

7 Membership News VMA s International Trade Symposium May 13-14, 2010 PROGRAM* MORNING KEYNOTE SPEAKER Hugh Keogh, President, Virginia Chamber of Commerce EXPORT EXPECTATIONS Exporters and their service providers will discuss challenges faced by shippers and strategies being employed to successfully grow exports. Chris Gillis, Editor, American Shipper, (Panel Moderator) Kevin Bulman, Sr. Sourcing Manager, Ocean Transportation, MeadWestvaco Mark Sagrans, Corporate Counsel Export Controls, Dupont REACHING NEW HORIZONS Much is changing that sets Virginia apart now and in the future. The discussion will highlight Virginia s strategic advantages. Tom Capozzi, Sr. Managing Director, Global Sales, Virginia International Terminals, (Panel Moderator) Jeffrey Heller, AVP International Marketing, Norfolk Southern John Koch, AVP Strategic Planning, CSX Intermodal Philip Rundle, CEO, Mercury Paper Rodolpho Sabonge, VP Market Research and Analysis, Panama Canal Authority SEEING GREEN The ability to decrease environmental impacts in the supply chain is driving more of the decision making for many businesses. Jerry Bridges, Executive Director, Virginia Port Authority, (Panel Moderator) Joel Haka, COO, CMA CGM America Victor LaRosa, President, Total Transportation Services, Inc. Sabina Strautman - Trade Lane Manager/Sustainable Transport Developer, IKEA Distribution Service Register Now at symposium *Confirmed speakers as of Feb. 18, Visit our website for the most up-to-date program information. 7

8 PRESORTED STANDARD U.S. POSTAGE PAID NORFOLK, VA PERMIT NO E. Plume Street Norfolk, Virginia P.O. Box 3487 Norfolk Virginia (757) ; FAX web site: Customs Brokers & Int l Freight Fowarders Assn. Contact: Katie Carney, Hampton Roads Coal Association Contact: Michael Carmon, Hampton Roads Foreign Commerce Club Contact: Stephanie Rozzell, website: Club Contacts Hampton Roads Traffi c Club Contact: Peter Simmons, website: cclub.org ODU Maritime Institute Speaker Series Contact: Sara Russell, Organizaiton for Women in Int l Trade (OWIT) Contact: Sara Russell, April Club Events Calendar Propeller Club - Port of Norfolk Contact: Mark Wilder, website: Tidewater Motor Truck Association Contact: Shirley Roebuck, Bill Jackson, Virginia Ship Repair Association Contact: Mal Branch, Mon Tues Wed Thur Fri Sat/Sun 1 OWIT 12:00 Williams Mullen s Offi ce Domion Tower, 17th Fl. 2 ILA Holiday Good Friday 3/ / Traffic Club Motor Freight Night 5:30 Holiday Inn Greenwich Coal Association 6:15 Honorary Members Dinner Town Point Club 15 Propeller Club 4:00 p.m Oyster Roast. Crumbly Recreational Park NIT 16 17/ /25 Ship Repair Assn. 11:30 Renaissance Hotel Foreign Commerce 11:30 Town Point Club Freight Forwarders 12:00 Norfolk Waterside Marriott Motor Truck Assn. 6:00 Elizabeth Manor Country Club