MARITIME BULLETIN News and Information from the Port of Hampton Roads

MARITIME BULLETIN News and Information from the Port of Hampton Roads Volume 70, No 2, February, 2006 This months Maritime Bulletin is Sponsored by: Maritime Issues Council State of the Port Address Joseph A. Dorto, General Manager, VIT Joseph A. Dorto, General Manager of Virginia International Terminals (VIT), delivered his annual State of the Port address at the Hampton Roads Foreign Commerce Club luncheon on January 25, 2006. Dorto s address this year centered on how having a natural deep water harbor proves to be advantageous for a port, but it doesn t guarantee the success of a port. Port success derives from industry leaders working together to enhance port operations through innovation and creative problem solving skills. Prior to the Port s unification, competition among the three terminals (Norfolk International Terminals, Newport News Marine Terminal, and Portsmouth Marine Terminal) negatively impacted the Port. Forward thinking leaders saw how the competition was a problem for the Port, and in 1982 unified the Port, placing terminal operations under one umbrella, Virginia International Terminals. The Port is always preparing for the future. Our industry leaders have come together over the course of time to solve various Port problems. Recent programs generated through combined efforts of the port community were the Port Wide Chassis Pool and the Empty Container Depots. The Port Wide Chassis Pool improves efficiency for truck drivers as well as shippers. Drivers can now utilize any chassis that is available and they know all the safety requirements for that chassis are met. The Empty Container Depots are another example of improving port operations. The terminal now has more space to unload full containers, increasing the amount of containers the Port can handle. In 2005, the Port handled 1.9 million TEU s, a record high for the Port. Over the past few years, containers passing through the Port have increased approximately 10% each year. Our Port is poised to be the number one container port on the East Coast. The Port of Virginia has all the elements required to be number one, according to a presentation given by J.J. Keever, Deputy Executive Director for the Virginia Port Authority, at an HRMA Maritime Briefing. VIT signed ten-year contracts with large shipping companies. No other port has achieved that feat. These long term contracts indicate the world beyond our waters knows our Port is preparing for the future and they want to be a part of it. A harbor s natural deep water, the intermodal infrastructure, terminal expansion capabilities and a cargo base are the tangible elements for a port s success. Advancing port operations through leadership, innovation and teamwork will put the Port of Virginia above the rest. Deeper Water Intermodal Infrastructure Terminal Expansion Cargo Base New York N. Carolina Elements which make a port successful graph provided by VPA Published by the Hampton Roads Maritime Association, Norfolk, Virginia email: hrma@portofhamptonroads.com -- web site: www.portofhamptonroads.com Charleston Savannah VIRGINIA

2 HAMPTON ROADS MARITIME ASSOCIATION Officers Chairman of the Board Charles E. Brinley President Meade G. Stone, Jr. Vice Presidents Robert P. Armbruster Joseph A. Dorto Kip Hinkle Executive Vice President & Secretary Arthur W. Moye, Jr. Treasurer Judy M. Barrett Assistant Treasurer Stephen M. Carmel Staff Administrator David C. White Administrative Assistant to Executive Vice President Jodie M. Love Accounting Kristie A. Acors Tina M. Martin Shipdesk Clerk Lynne H. Stonum Membership Desk/Editor Susan N. Wisniewski MARITIME BULLETIN is published 12 times a year by Hampton Roads Maritime Association. Subscriptions are available through membership in the Association. Membership rate is $200 annually. Recipient of Presidential E and E Star Awards for Excellence in Export Service Recipient of ASAE Communication Excellence & Honorable Mention Awards SPONSOR SPOTLIGHT Maritime Issues Council The Maritime Issues Council (MIC) is HRMA s Political Action Committee that was formed in the year 2000 to advance issues of concern for the growth and development of the maritime industry in Virginia. The MIC enables HRMA to work in Richmond with the Virginia General Assembly on behalf of the maritime industry to advance the interests of the Port of Hampton Roads. Every year the MIC hosts a dinner in Richmond for the General Assembly members from Hampton Roads. The dinner provides an opportunity for HRMA s leadership, joined by representatives from the Hampton Roads Shipping Association and MIC contributors, to meet and speak with our elected officials about the issues important to the Port. This year s dinner was attended by most of Hampton Roads legislators, as well as Lt. Governor Bill Bolling, Attorney General Bob McDonnell, Secretary of Transportation Pierce Homer, and Deputy Secretary of Transportation Scott Kasperowicz. Although unable to attend in person, Governor Tim Kaine had a letter delivered and read at the dinner which recognized the importance of the Port to Virginia, the role the HRMA plays to advance the Port, and expressed his support for development of Craney Island Marine Terminal, the Route 164 rail relocation, the Heartland Corridor project, and funding the transportation infrastructure needs. (Please find a copy of the Governor s letter contained in this issue of the Maritime Bulletin.) Every year the MIC addresses legislative issues that directly affect businesses tied to the Port. We have been successful when it comes to reducing the burden to the industry in regard to taxes and fees, obtaining funding for Port improvement projects, and monitoring state governance issues. The MIC is an advocate for the maritime industry s interests regarding transportation infrastructure, port security, and the competitive position of the Port. Doubtless, new issues will continue to present themselves and the MIC will play an increasingly important role in the future of the Port. The MIC relies on contributions from HRMA s member companies. If you have any questions about the MIC, please call Art Moye or David White at 757-622-2639. 1. Cover Page 2. Sponsor Spotlight 3. Maritime News 4. Port Statistics IN THIS ISSUE 5. News Briefs & Announcement 6. HRMA Highlights 7. Membership News 8. Club Contacts/Upcoming Events

Maritime News 2006 Pinnacle of Engineering Excellence Awarded to Moffatt & Nichol The Virginia chapter of the American Council of Engineering Companies (ACEC) has awarded Moffatt & Nichol (M&N) the 2006 Pinnacle of Engineering Excellence Award for the Norfolk International Terminals South Wharf Renovation. ACEC s Engineering Excellence Awards program recognizes engineering achievements which demonstrate the highest degree of merit and ingenuity. The award was presented February 2, 2006 and accepted by Mike Knott and Gary Smith of M&N. Also present were Mike Crist and Ira Brotman from M&N s Norfolk Office and Eric Vugteveen, David Wolfe, and Nick Smilek of M&N s Richmond office. Jeff Florin and Kevin Abt of the Virginia Port Authority were also in attendance. Norfolk International Terminals (NIT) is the largest of the Virginia Port Authority (VPA) facilities and accounts for nearly half of the Port s total container throughput. In 2002, the VPA undertook a large-scale renovation of the South Terminal at NIT. This renovation was required to upgrade infrastructure and replace container handling equipment at NIT which was both aged and becoming functionally obsolete. The first step in these renovations included the replacement of 4,230 linear feet of wharf with (l-r: Nick Smilek, Gary Smith, Mike Crist, Eric Vugteveen, Mike Knott, Kevin Abt, Ira Brotman, Jeff Florin and David Wolfe a new state-of-the-art wharf designed specifically to handle containerized cargo. Moffatt & Nichol provided civil, structural, hydraulic, electrical and mechanical engineering design services for this complex $84 million project. The following list includes the major highlights of the successful renovation of the NIT South Wharf: Demolition and reconstruction of 4,230 linear feet of wharf in 2-1/2 years, No impacts to ship operations during reconstruction, Implementation of an innovative under-wharf detention basin to treat stormwater, Ability to deepen the berths to 60 feet without additional wharf modification, and An innovative approach to environmental mitigation. This remarkable project was completed on time, within budget and met or exceeded all of the VPA s criteria for the project. The NIT South Wharf Renovation Project has transformed the aging South Wharf at NIT into an economically-viable, state-of-the-art containerized cargo handling wharf capable of accommodating growing container ships and increasing cargo volumes well into the future. Moffatt & Nichol (M&N) is a multi-discipline engineering and planning firm specializing in engineering and design for ports, marinas, shipyards, waterfront structures, coastal protection and water resources development. Operating out of 22 offices throughout the United States, Canada and the United Kingdom, M&N provides innovative solutions to the challenges found in today s waterfront and transportation arenas. M&N s Norfolk, Virginia office currently provides engineering program management and master planning services for the Virginia Port Authority. Norfolk International Terminals South Wharf 3

Vessels by Jan-06 YTD-06 Jan-05 YTD-05 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 0 0 0 0 0 0 0 0 Jan-2006 1 month 2006 Jan-2005 1 month 2005 FOREIGN 17 15 17 15 16 19 16 19 Total Hampton Roads 1,821,589 1,821,589 2,019,028 2,019,028 TOTAL 17 15 17 15 16 19 16 19 NS 950,375 950,375 1,082,821 1,082,821 Pier IX 564,868 564,868 469,374 469,374 COAL DTA 306,346 306,346 466,833 466,833 AMERICAN 0 1 0 1 1 1 1 1 FOREIGN 19 19 19 19 21 22 21 22 Export Cargo - H. Rds. 1,459,192 1,459,192 1,464,398 1,464,398 TOTAL 19 20 19 20 22 23 22 23 NS 909,805 909,805 977,132 977,132 Pier IX 362,501 362,501 206,052 206,052 COMBO DTA 186,886 186,886 281,214 281,214 AMERICAN 0 0 0 0 0 0 0 0 FOREIGN 5 4 5 4 4 4 4 4 Coastwise & Other - H.R 362,397 362,397 554,630 554,630 TOTAL 5 4 5 4 4 4 4 4 NS 40,570 40,570 105,689 105,689 Pier IX 202,367 202,367 263,322 263,322 CONTAINER DTA 119,460 119,460 185,619 185,619 AMERICAN 16 14 16 14 15 15 15 15 Source: Hampton Roads Coal Piers FOREIGN 157 153 157 153 120 120 120 120 TOTAL 173 167 173 167 135 135 135 135 Port of Hampton Roads TEU's (Twenty Foot Equivalent Units) GENERAL AMERICAN 0 0 0 0 1 1 1 1 Dec-2005 12 month 2005 Dec-2004 12 month 2004 FOREIGN 5 6 5 6 15 11 15 11 Hampton Roads 160,870 1,981,955 160,470 1,808,933 TOTAL 5 6 5 6 16 12 16 12 Source: Virginia Port Authority OTHER AMERICAN 0 0 0 0 3 2 3 2 FOREIGN 5 6 5 6 3 3 3 3 Customs Receipts - Virginia Customs District TOTAL 5 6 5 6 6 5 6 5 Dec-2005 12 month 2005 Dec-2004 12 month 2004 Hampton Roads $49,114,433 $49,114,433 $45,496,466 $460,056,046 RORO Other VA $4,780,684 $49,678,569 $5,386,376 $50,284,262 AMERICAN 1 0 1 0 0 0 0 0 FOREIGN 6 4 6 4 11 9 11 9 Total $53,895,117 $98,793,002 $50,882,842 $510,340,308 TOTAL 7 4 7 4 11 9 11 9 Source: U.S. Customs and Border Protection TANKER AMERICAN 0 0 0 0 0 0 0 0 Passenger Cruises FOREIGN 16 14 16 14 14 13 14 13 Jan-2006 1 month 2006 Jan-2005 1 month 2005 TOTAL 16 14 16 14 14 13 14 13 Number of Vessels 3 3 4 4 AMERICAN 17 15 17 15 20 19 20 19 Number of Passengers 7,099 7,099 7,342 7,342 FOREIGN 230 221 230 221 204 201 204 201 Source: Nauticus TOTAL 247 236 247 236 224 220 224 220

News Briefs & Announcements Event Registration Now Available Online Visit HRMA s Website www.portofhamptonroads.com New and exciting things are happening on the Hampton Roads Maritime Association s website. We are rolling out online registration for our upcoming events. Registering for all HRMA events, including the International Trade Symposium, Annual Banquet and Golf Outing, can now be completed right from your computer. Visit our updated website at www.portofhamptonroads.com. HRMA members can log-on to the website using their Customer ID number located on the mailing label of this bulletin. Other interested parties may register for events as non-members. Wardrup Receives Rotary Award Delegate Leo Wardrup, House of Delegates, 83 rd District, and Chairman of the House Transportation Committee, recently received Rotary International s Service Award for Professional Excellence at a meeting of the Hampton Roads Rotary Club. Delegate Wardrup was recognized for his professional achievement, demonstrated high ethical standards, community and vocational service, and dedication to the concept of Service Above Self. The award, one of the few awarded in Virginia, was competitive within Rotary International and was presented in celebration of Rotary s centennial year. Delegate Wardrup s contribution and exceptional professional accomplishments are consistent with the ideals of Rotary and were recognized at the Centennial Rotary International Convention in Chicago. Port Attracts Employment and Capital Investment The Port continues to attract employment and capital investment to the area. The Virginia Economic Development Partnership compiled data on capital investment and employment creation in Hampton Roads, based on announcements made during 2005. According to this data, 25% of new jobs created and 42% percent of economic expansions in Hampton Roads were port related. The maritime industry accounts for 165,000 jobs, 762.5 million in business revenue and $60.7 million in state and local taxes for the Commonwealth. Jobs Created in 2005 Port Related 25% Hampton Roads Area 75% Economic Expansion of 2005 Port Related 42% Hampton Roads Area 58% 5

6 HRMA Highlights HRMA Committee Activity JANUARY Towing and Barge Operators Committee On January 11 th, the committee received updates on several on-going issues. Industry organizations are working with the Coast Guard to develop new inspection regulations and the Coast Guard is placing significant emphasis on increased life saving training and equipment requirements. The Personnel Recruitment Subcommittee is continuing down the path of gathering statistical data and will be conducting a survey of companies operating in the area. The subcommittee is also looking at tools to promote the towing industry and jobs. Additionally the committee discussed a final rule published in December that will take effect June, 2006. There will be a requirement to have equipment on board to test for alcohol after a serious marine incident within two hours of the incident. Inland Transportation Committee The Inland Transportation Committee met January 12 th. The Driver Workforce Development Subcommittee is pursuing a grant that may be used to fund driver recruiting, training, and provide financial assistance programs to owner/operators. The committee received a presentation on a link that has been added to HRMA s web site that provides information to prospective drivers about the companies participating in the workforce development program. The web site will be expanded as other elements of the workforce development program unfold. Port Protection / Emergency Control Committee At the January 17 th meeting, the committee discussed why the Port did not receive any port security grants from the Department of Homeland Security (DHS) in Round 5 and what steps to take to ensure the Port is not again overlooked in Round 6. The Port was damaged in the process because DHS viewed it as two port areas, the Peninsula and the Southside. The committee agreed on multiple strategies for obtaining state and federal help to emphasize with DHS that their process must be fixed to consider all of the Port of Hampton Roads as one port. Maritime Briefings Committee The Maritime Briefings Committee met January 26 th. There was a brief review of the January 11th breakfast briefing entitled What is the Competitive Position of the Port of Hampton Roads? which showed why the Port is positioned to become the number one port on the East Coast. A discussion ensued regarding topics for future Maritime Briefings. The committee developed a list the three topics to be explored simultaneously for the next and subsequent events. Annual Banquet Committee On November 27 th, the committee met to continue its planning of the 86 th Annual Maritime Banquet. The committee received an update on HRMA staff s progress in confirming the keynote speaker. The committee confirmed pricing and discussed coordination with the International Trade Symposium to be held the same day as the banquet, May 4, 2006. Decisions were made regarding audio-visual arrangements and other details of the program.

Membership News New Members The Dixie Group, Inc. Export Packing and Logistics 9 South 12th Street, Suite 100 Richmond, VA 23219 804-475-6911 FAX; 804-644-4550 Mr. Michael C. Smith, CEO msmith@dixiecrating.com Recommended by: Susan Horton and Hugh Patterson Kaufman & Canoles Consulting Consultants 150 West Main Street Norfolk, VA 23510 757-624-3116 FAX; 757-624-3169 Mr. Chairles J. Bauman, III, Director, Maritime & Logistics Economic Development cjbauman@kaufcanconsulting.com Recommended by: Membership Increase McAllister Towing of Virginia Towing and Transportation (Barges) 2600 Washington Avenue, Suite 1004 Newport News, VA 23607 757-247-7800 FAX; 757-245-5836 Mr. James Elliott Westall ewestall@mcallistertowing.com Recommended by: Membership Increase Michelin North America Commercial Tire Sales 919 Graydon Avenue Norfolk, Virginia 23507 757-748-8407 FAX; 757-623-1315 Mr. Robert S. Reddy, Fleet Account Manager bob.reddy@us.michelin.com Recommended by: Ted Lepski and Linwood Beckner Partners Excavating Excavating 205-A S. Liberty Street Harrisonburg, VA 22801 540-433-2796 FAX; 540-434-9670 Mr. Chris Driver Recommended by: Layman, Diener & Borntrager Parsons Brinckerhoff Engineers/Naval Architects/Surveyors and Appraisers 6161 Kempsville Circle, Suite 110 Norfolk, VA 23502 757-466-9675 FAX; 757-466-1493 Mr. Stephen A. Curtis, Senior Marine Engineer curtiss@pbworld.com Recommended by: Capt. Watkins Scott J. Rainey Consultant 8318 Lilac Lane Alexandria, VA 22308 703-366-8888 Recommended by: Bill Cofer and Carter Gunn Sysco Food Services of Hampton Roads Food Service Distribution 7000 Harbour View Blvd. Suffolk, VA 23435 757-673-4266 FAX; 757-673-4374 Ms. Joyce Ann Sanders sanders.joyce@shr.sysco.com Recommended by: Tom Host Thomas-Carrera Consulting, Inc. Consultants 209 Drummonds Way Hampton, VA 23665 757-810-8607 Ms. Michelle Carrera mcarrera@thomascarrera.com Recommended by: Chick Rosemond TowneBank Banks/Investment & Mortgage Loans 109 E. Main Street Norfolk, VA 23510 757-628-6355 FAX; 757-623-5792 Ms. Judy Barrett, Senior Vice President Private Banking judy.barrett@townebank.net Recommended by: Membership Increase Troutman Sanders LLP Law Firm 222 Central Park Avenue, Suite 2000 Virginia Beach, VA 23462 757-687-7740 FAX; 757-687-1527 Mr. Thomas H. Lucas, Partner tom.lucas@troutmansanders.com Recommended by: Roger Giesinger Volvo Group North America, Inc. Exporters and Importers c/o Volvo Penta Americas, Inc. 1300 Volvo Penta Drive Chesapeake, VA 23320 757-436-5194 FAX; 753-436-5150 Mr. James Buckingham, Import Ops/Customs Compliance Manager james.buckingham@volvo.com Recommended by: Mark Mantiply and David White 7

PRESORTED STANDARD U.S. POSTAGE PAID NORFOLK, VA PERMIT NO.1930 236 East Plume Street Norfolk, Virginia 23510 P.O. Box 3487 Norfolk, Virginia 23514 (757) 622-2639; FAX 622-6302 web site: www.portofhamptonroads.com email: hrma@portofhamptonroads.com Club Contacts Hampton Roads Coal Association Contact: Michael Carmon, 873-0165 Hampton Roads Foreign Commerce Club website: www.hrfcc.org Contact: Susan Long, 857-3351 Hampton Roads Traffic Club Contact: Peter Simmons, 466-8899 Propeller Club - Port of Norfolk Contact: Rolf Williams, 457-8310 Society of Maritime Industries Contact: Robert Armbruster, 457-9108 Tidewater Motor Truck Association Contact: Shirley Roebuck, 398-0679 The Women s Transportation Club of Hampton Roads Contact: Anita Bonet, 440-7215 Celebrating President s Day Honoring Theodore Roosevelt Twenty-Sixth President, 1901-1909 Feb 15 Feb 15 Feb 22 Feb 22 Mar 8 Mar 9 Upcoming Club Events Hampton Roads Foreign Commerce Club Terrorism and Critical Infrastructure Neil T. Guay, FBI 11:30 Norfolk Waterside Marriot Hampton Roads Traffic Club Port Night 5:30 Holiday Inn - Greenbrier Tidewater Motor Truck Association 6:00 Holiday Inn Express, Norfolk Propeller Club Government Day VADM Brewer 11:30 Harbor Club, Bank of America Bldg. Hampton Roads Coal Association Honorary Members Dinner 6:15 The Harbor Club, Norfolk Propeller Club Container Shipping Day Frank Baragona, President, CMA-CGM (America) Inc. 11:30 Harbor Club, Bank of America Bldg. Mar 15 Hampton Roads Foreign Commerce Club Stihl s Role in International Trade in Virginia Ken Waldron, National Mktg. Director, Stihl Inc. 11:30 Norfolk Waterside Marriot Mar 15 Hampton Roads Traffic Club Warehouse/Railroad/Industry Night 5:30 Holiday Inn - Greenbrier Roosevelt was born on October 27, 1858 in New York. His presidency began with the assassination of President McKinley. He was the youngest man of his time to become President. During the Spanish- American War, he was lieutenant colonel of the Rough Rider Regiment and was one of the most conspicuous heroes of the war. Roosevelt was known as a trust buster by forcing the dissolution of a great railroad combination in the Northwest. Other antitrust suits followed under the Sherman Act. Roosevelt won the Noble Peace Prize for mediating the Russo-Japanese War, reaching a Gentleman s Agreement on immigration with Japan, and sent the Great White Fleet on a good will tour of the world.