Norfolk -- The Virginia Port Authority and U.S. Army Corps of Engineers Norfolk District signed the Project Partnership Agreement (PPA) for the Craney Island Eastward Expansion project on June 5 and in doing so solidified the unique federal/state partnership and cost sharing agreement between the two agencies.
This dual-purpose project will extend the life of Craney Island as a dredged material management area and also provide land for the construction of a new marine terminal. Maritime industries in Hampton Roads, including shippers, shipbuilders and the U.S. Navy rely on Craney Island Dredged Material Management Area to dispose of material dredged from local waterways in order to provide ships with an economically efficient, reliable, and safe navigation system.
While allowing Craney Island to accept dredged material well beyond 2025, the project will also double The Port of Virginia’s need for expanded cargo capacity in the future by accommodating the construction of a state-of-the-art marine terminal atop the newly-built land. At 522 acres, Craney Island Marine Terminal would have an 8,400 foot-long berth, 15 container cranes, non-terminal rail access to Norfolk Southern and CSX lines, and a capacity of 5 million TEUs. The eastward expansion is currently under construction.
The eastward expansion and marine terminal project will have significant impacts on the local, regional, and national economy, with $5 billion in cumulative economic impacts to Virginia annually. Moreover, the project will also generate $16 billion in National Economic Development (NED) benefits.
Over time, the eastward expansion and marine terminal projects are estimated to generate 54,000 direct, indirect, and induced jobs; $1.7 billion in wages; and $155 million in state and local tax revenue. These jobs will be created through three main sources: marine terminal design and construction, terminal and transportation operations, and distribution center operations.
Construction will generate 1,176 jobs and $37 million in annual wages; and terminal and transportation operations will create 28,000 new port‑related jobs and more than $870 million in annual wages; and Increased distribution center activity will produce $2.7 billion annually, with 26,000 new jobs and $788 million in wages.
A video of the PPA signing ceremony is available on the Corps’ YouTube Channel. For more information on the Craney Island Eastward Expansion and to sign up for the project newsletter, go to www.craneyisland.info. Photos of this signing can be seen on The Port of Virginia's Facebook page.
Above: Virginia Port Authority Executive Director Jerry A. Bridges (left) and Col. Paul Olsen, US Army Corps of Engineers District Commander, seal the deal with a handshake.