Port of Virginia Blog

Food for Troops in the Middle East to Move Across the Port of Virginia

Reston -- Thousands of containers of food to support the US and coalition troops in Iraq, Kuwait and Jordan will move across The Port of Virginia as a result of a decision of made by Unitrans International Inc., of Reston.

The Northern Virginia-based firm selected the port following an evaluation of all ports on the U.S. East Coast. Unitrans officials said they found Virginia to "be ideally suited for this important project." Standard containers and refrigerated containers will be shipped to their Middle East destinations via Virginia.

According to a Defense Logistics Agency (DLA) spokesman, this contract could be worth between $2 billion and $6 billion over the next six years. Much of the food will be consolidated at a warehouse and a refrigerated facility in Norfolk.

Unitrans is the transportation and logistics arm of the Anham Group. The Anham Group is a subsidiary of Anham FZCO, LLC, a Dubai-based firm that is a DLA "prime vendor." Firms carrying the prime vendor designation enter into long-term sustainment contracts with various suppliers to provide materials needed to support the maintenance, repair and operation of DLA facilities.

VPA Hosts Massive Oil Skimmer En Route to Gulf

 

 
TMT Group Chariman Nobu Su (right) explains the skimming process to Virginia Secretary of Transportation Sean T. Connaughton.

Norfolk – The world's largest oil skimming vessel, dubbed "A" Whale, made a stop at The Port of Virginia on Friday, June 25, to showcase its capabilities to industry officials, the media, U.S. Coast Guard officials and the Virginia Secretary of Transportation, Sean T. Connaughton, before steaming to its final destination, the U.S. Gulf Coast.

The vessel, which was built in 2010, is owned and operated by TMT Group, a multinational shipping/offshore company group based in Asia. The vessel is classed by Lloyd's Register as the largest oil skimmer vessel ever devised. 

Originally designed to be one of the largest cargo vessels afloat, the double-hulled, 319,000 DWT vessel had just been completed at a South Korean shipyard for the purpose of transporting crude oil and iron ore across the high seas. When the Gulf disaster unfolded, TMT saw an opportunity to create of the world's first large-scale skimmer.

After oily water is skimmed from the surface it is pumped through a series of large internal tanks that successively decant the mixture, separating the oil from water through gravity until separated. In the final stage, the filtered water can be returned to the ocean while the heavy oil residue is transferred to tankers for storage and final disposition.

The vessel can process up to 500,000 barrels of oily water per 8-10 hour cycle. The vessel departed for The Gulf late Friday evening.

The Virginia Port Authority provided the vessel's berth space and event hosting for TMT.

 

 

 

VPA Executive Director Authorized to Sign Lease Agreement

 

Virginia Port Authority Executive Director Jerry A. Bridges, left, is greeted by APM Terminals Americas President Eric A. Sisco at a tour of the APMT Virginia facility as John Milliken, chairman of the VPA Board of Commissioners, looks on.

Norfolk – The Virginia Port Authority Board of Commissioners on Thursday authorized the agency's executive director to sign a historic lease agreement that unifies all container cargo operations in the Hampton Roads harbor under the VPA flag for the next two decades.

The VPA Board of Commissioners at a special session on June 24, voted unanimously to give VPA Executive Director Jerry A. Bridges the authority to sign a lease agreement with APM Terminals. In summary, the lease agreement states the VPA will lease and manage all aspects of the operation of the APMT Virginia marine terminal for the next 20 years. APMT's ownership of the assets and land is unchanged.

"This may be the most important day for The Port of Virginia since unification of the marine terminals back in 1982," Bridges said. "All the major cargo operations in the harbor are going to be operated by the VPA and this creates and unparalleled set of opportunities for us.

"We can now market ourselves as one port with diversified cargo handling capabilities. Whether the customer is moving containers, bulk or breakbulk commodities or rolling stock, The Port of Virginia is well-positioned to accommodate these needs. This is a tangible and significant opportunity for the Commonwealth."  

The VPA owns and operates Norfolk International Terminals, Portsmouth Marine Terminal, Newport News Marine Terminal and the Virginia Inland Port, an intermodal operation in Front Royal. The VPA's private non-stock operating company, Virginia International Terminals Inc., is responsible for the day-to-day management and oversight of all these facilities and it will have that same responsibility for APMT Portsmouth.

The lease agreement and its accompanying documents will be signed on June 30 by Bridges and APM Terminals Americas President Eric A. Sisco. The official "handover" of the terminal is scheduled for July 6.

On May 13, following nearly 18 months of negotiations, Gov. Bob McDonnell announced an agreement in principle between VPA and APM Terminals Virginia.

"Combining this incredible facility with our natural assets will substantially increase the marketability of this port and position Virginia to become the leading port on the US East Coast faster than we anticipated," McDonnell said.

This agreement coincides with the opening of several strategic cargo-driven transportation projects that will increase container volumes at The Port of Virginia during the next 10 years:

• Norfolk Southern's (NS) Heartland Corridor double-stack rail link to Columbus and Chicago that opens in September;
• The expansion of the Panama Canal, which is scheduled for completion in 2014;
• The arrival of post-Panamax-class container vessels (exceeding 5,000 TEUs) in Virginia, the first of which, the MSC Tomoko -- the largest container vessel ever to call the port -- arrived in February.

"Virginia, for many reasons, is unique among East Coast Ports now," Bridges said. "Fifty-foot-deep shipping channels, a full menu of cargo handling capabilities, room to expand at Craney Island and immediate access to the East's two Class I railroads (NS and CSX) gives Virginia an incredible set of long-term competitive advantages."

The lease creates a series of efficiencies that will greatly benefit our port and among them are:

• Brings the newest, most technologically-advanced marine terminal in the Americas into the VPA fold.
• Expands the cargo capacity of the VPA's terminals by nearly 1 million TEUs.
• Provides immediate on-dock access and the related advantages to the East's two Class I railroads: Norfolk Southern and CSX.
• Provides very distinct cost and capacity advantages when compared with other US East Coast ports.
• Increases the overall value of the VPA's assets.

   

 

 

 

TEU Totals Up 12.5%; Breakbulk Sees Increase as Well

Norfolk -- May was the fifth consecutive month of positive TEU numbers for The Port of Virginia when compared with last year. In May, the Port handled 161,535 TEUs, an increase of 20,097 TEUs when compared with the same month in 2009.

For the five-month period ending in May, the Port's total TEUS were 779,969 compared with 693,600 for the same period in 2009; an increase of 86,369 TEUs or 12.5 percent. The May trade balance was 55 percent exports and 45 percent imports.

Calendar year TEU totals, 2010 vs. 2009:

• May 2010 = 161,535
• May 2009 = 141,438
• April 2010 = 147,119
• April 2009 = 144,073
• March 2010 = 167,262
• March 2009 = 136,737
• February 2010 = 155,050
• February 2009 = 133,358
• January 2010 = 149,003
• January 2009 = 137,994

The Port in May also handled 26,337 tons of breakbulk cargo, up 16,023 tons when compared with May 2009. The 2010 breakbulk tonnage total through the end of May was 95,540, compared with 113,652 tons handled during the same period last year.

For more Port statistics go to: http://www.portofvirginia.com/development/port-stats.aspx.

 

Maritime Community Saddened by Loss of Robert “Kip” Hinkle

Smithfield – Robert "Kip" Hinkle, a long-time fixture in the Hampton Roads maritime industry died Thursday, June 10; he was 60.

Mr. Hinkle spent his career in the maritime industry. At the time of his passing he was assistant general manager of Virginia Intermodal Management, past president and current chairman of the board of the Virginia Maritime Association and a director on the board of the Hampton Roads Shipping Association.

His passions in life involved anything on the water, especially fishing and captaining his boat, The Palmetto, with his family: wife, Laura Lee and daughters, Lillie and Ellie. In addition, he enjoyed working with his hands and learning to play his guitars. Mr. Hinkle was a true Southern gentleman known for his patience and gentle nature.

Mr. Hinkle was born May 23, 1950, in Orangeburg, SC.

The family suggests contributions in memory of Kip Hinkle be made to the Isle of Wight Relay For Life , c/o Pam Jordan, 18214 Farmview Lane, Windsor, VA, 23487.

NIT Receives ISO Environmental Certification; All VPA Terminals Carry Designation

Norfolk – The Virginia Port Authority in May received ISO 14001 Environmental Management System certification for Norfolk International Terminals (NIT) and in doing so made The Port of Virginia the only major East Coast port to have all its marine terminals ISO 14001 certified.

"This certification expands beyond the waterways," said Heather Wood, the VPA's director of environmental affairs. "Our commitment is to pollution prevention, compliance on various levels and continuous improvement of our environmental management system. Our effort is has been certified and is now recognized on a global level."

The ISO 14001:2010 is a certification of an environmental management system, which requires an organization to manage, measure, improve and communicate its environmental program in a systematic way. One of the primary requirements for certification is to have a comprehensive list of environmental aspects associated with terminal operations and identify those that can have the most significant effects on the environment. The key commitments of the terminal's environmental policy include stopping pollution, obeying environmental rules, improving performance and reducing waste.

The process of obtaining the certification included identifying all of the environmental issues associated with the port operations; evaluating potential impacts; determining needs; and developing a continuous management plan that includes a training and awareness element.

In May, Bureau Veritas, an independent auditor for ISO [International Organization for Standards], began a detailed review of the environmental management plan for NIT. The audit included random site inspections and interviews with terminal personnel on the environmental processes and issues relating to their jobs.

In order to monitor continued compliance with the ISO 14001:2004 certification, the VPA will have "surveillance audits" conducted annually by an external auditor until the recertification audit. In addition, internal audits will be conducted in between the surveillance audits.

New Mercury Paper HQ Opens

Strasburg -- Mercury Paper, a high-volume port user, officially opened its new North American headquarters here on Monday, June 14. The company is a rapidly-growing paper and towel tissue product company that provides its products for the North American market.

In March, Gov. Bob McDonnell announced that Mercury would move its headquarters to Virginia and expand the existing facility in Strasburg, which is less than 20 miles from the Virginia Inland Port, in Front Royal. The company is investing $21.2 million in the project, and the expansion and move will create 150 new jobs. Mercury Paper's parent company, Asia-based Sinar Mas Group, is one of the world's leading pulp and paper companies. The Governor approved $250,000 in Governor's Opportunity Funds to assist Shenandoah County in landing the headquarters.

"Virginia recognizes the important role that international investment plays in the success of our economy, and we are pleased that this international company has chosen Virginia as its home.  Due to its location along I-81, close proximity to Reagan National and Dulles International Airports, and access to Virginia's ports, Strasburg offers Mercury Paper a perfect location from which to connect and work successfully within the global marketplace," the governor said.

During his visit today, the Governor presented the company with a Virginia flag that was flown over the state Capitol and joined Mercury Paper's CEO, Phillip Rundle, in planting a tree on the grounds of the facility.

The Strasburg facility is on a 15-acre site situated near the intersection of Interstates 66 and 81 in North East Virginia in the middle of the Shenandoah Valley. The facility incorporates state-of-the-art technology from highly-computerized tissue converting lines and packaging equipment to fully-automated robot case stacking.

Mercury Paper supports economic development, corporate responsibility and environmental awareness. The company's raw material comes from sustainable pulpwood plantations in the Pacific Rim and follows strict policies in order to ensure that its fiber suppliers, from forests to paper mills, are legally sustainable. This means legal origin-verification and chain-of-custody procedures are practiced throughout the process.

 

VPA-Led Effort Collects 2 Tons of Debris on Clean the Bay Day

 

 
 
 Norfolk – The Port of Virginia was the region's lead sponsor of this year's Clean the Bay Day, an event that brought together volunteers from across Hampton Roads to collect trash from the Bay's shores and tributaries on the morning of Saturday, June 5.

Collectively, 75 volunteers from the VPA, the local maritime community, their families and members of the West Ghent Civic League collected two tons of garbage that morning. Their focus was the shoreline of Plum Point Park and portions of the Elizabeth River Bike Trail.

On the state level, 6,100 volunteers from across coastal Virginia collected 177,577 pounds of debris from 318.5 miles of the Chesapeake Bay watershed at 242 sites -- almost all synchronized at the exact same time across Virginia. Boats, kayaks, canoes and trucks were also used in the effort, but the majority of the work was done by volunteers walking the shoreline with bags in hand.

Some odd things found include a case of un-opened beer, an unopened gas mask canister, a marijuana pipe, bait boxes, a car muffler, shotgun shells and aluminum furniture.

 

Port Experts To Discuss Financing Issues at Norfolk Seminar, June 8-10

Norfolk -- To better enable seaports to manage today’s complex economic issues, the American Association of Port Authorities (AAPA), in cooperation with the Virginia Port Authority (VPA), will hold its biennial Port Finance Seminar June 8-10 at the Marriott Norfolk Waterside in Norfolk. Among the topics to be discussed include trends and new approaches to financing port infrastructure development; methods for improving asset and risk management; environmental issues related to port facility financing; trends in tax exempt financing for ports; and innovations in sourcing public port authority funding, such as through public-private partnerships.

 

“Efficient seaports enable our nation’s businesses and farmers to cost-effectively export their products to their overseas markets and allow consumers to enjoy less expensive options for purchasing food, clothing, medicine, fuel, technology, finished goods and building materials,” said Kurt Nagle, AAPA’s president and CEO.  “By reducing impediments such as the alternative minimum tax on those who invest in public port authority bonds and through innovative finance partnering with the private sector, it will help our public ports make the investments needed to remain internationally competitive and deliver prosperity to their community and nation.”

 

According to Jerry Bridges, executive director of the VPA, the Authority’s pending lease agreement with APM Terminals is a good example of a non-traditional business plan that will help stimulate growth at the Port of Virginia. “It’s quite possible that this anticipated agreement between the VPA and APM Terminals will inspire other ports across the nation to seek alternative methods to spur development of their port infrastructure,” he said.

More information about AAPA’s 2010 Port Finance Seminar is available at www.aapa-ports.org (click on the “Programs & Events” tab and look under “Current Seminar and Workshop Schedule”) or by clicking:

http://www.aapa-ports.org/Programs/seminarschedule.cfm?itemnumber=17157