Port of Virginia Blog

Unilever Announces $96M Investment in Suffolk Lipton Plant

Richmond - Governor Bob McDonnell announced this week that Unilever, one of the world's largest consumer goods companies, will invest $96.2 million to expand and upgrade its Lipton Tea manufacturing plant in the City of Suffolk. This investment enables facility upgrades and the purchase of new production machinery for the largest tea processing facility in the United States. Virginia successfully competed against Kentucky, North Carolina and South Carolina for the project.

"An investment of this caliber secures the future viability of Unilever's Lipton plant in Suffolk, which has been in operation since 1955 and produces nearly all of the Lipton tea bags sold throughout North America," McDonnell said. "As the largest tea production facility in the U.S., this operation is crucial to the prosperity of the company and employs nearly 300 in Hampton Roads. This expansion and machinery upgrade ensures the continued success of the Lipton plant for years to come, and is a major win for Virginia and Suffolk."

The Suffolk plant's proximity to the Port of Virginia influenced the location decision for this investment, as the company imports loose tea through the port from various countries, said Jim Cheng, Virginia Secretary of Commerce and Trade.

The Virginia Economic Development Partnership worked with the City of Suffolk and the Hampton Roads Economic Development Alliance to secure the project for Virginia. McDonnell approved a $1 million performance-based grant from the Virginia Investment Partnership program, an incentive available to existing Virginia companies.

The Suffolk plant was one of Unilever's first factories to achieve zero-to-landfill in the USA and was a pilot site to implement LED lighting, which significantly reduces electricity consumption. It has an active team that continues to drive the company's initiatives under the Unilever Sustainable Living Plan.

Craney Island Dikes Begin Peeking out of Elizabeth River

Norfolk – The two southern-most dikes needed for the development of Craney Island Marine Terminal are now above water-level as the massive structures began poking through the Elizabeth River's low-tide line in early February.

In 2010 dredge contractors began pumping tens-of-thousands of cubic yards of sand taken from the Atlantic Channel maintenance dredging project and "repurposing" the material in construction of the dikes. The repurposed material is being spread in two orderly rows – perpendicular to the Craney Island shoreline -- by a "spill barge," a vessel specially designed for controlling the placement of the sand.

"This is an important milestone as we can now truly see the progress; it was hard to get an image of what we were talking about when everything was still underwater," said Rodney W. Oliver, interim executive director of the Virginia Port Authority (VPA). "As this project has now become something tangible, so too has the reality of The Port of Virginia becoming the East Coast's cargo gateway. When Craney Island is finished, this port will have more capacity than any of its peers on this coast."

When completed in mid-to-late March, the dikes will be 2000 feet long, 500 feet wide and 10 feet tall. When the dikes are complete, the next phase of work will be to connect those dikes at their ends with a long dike that runs parallel to the shoreline. From above, the project will look like a large rectangle ("cell") with the shoreline as one of its long sides. A second cell will be developed and filled at a later date.

Once the dike construction is complete, the focus of work will shift to filling the rectangle with more repurposed dredge material that will be taken from regional dredging projects; it is anticipated that filling the cells will take between six and eight years. When the dike-and-fill phase is done, the work will result in the creation of a 600-acre foundation for Craney Island Marine Terminal.

"The first phase of this project is to build the land on which the marine terminal will sit," Oliver said. "It is, by far, the most complicated and costly part of the project. Once that 600-acre plot is in place, it will be there for us to develop as we need, as demand dictates. Comparatively, building a marine terminal will not be nearly as complicated."

The first marine terminal at Craney Island could open within 12-to-15 years, depending on need.

Above: The base of one of the Craney Island dikes begins to emerge; the south berth at Norfolk International Terminals is in the background.

July is Another Record-Setter for Virginia; Summer Roll Continues

Norfolk – The Port of Virginia handled 180,384 TEUs in July, an increase of 8 percent when compared with totals from July 2011. Year-to-date, the port has handled 1,175,111 TEUs vs. 1,110,983 TEUs handled during the same period last year, an increase of 5.8 percent.

"This past July was the best July ever on record for us, just as this past June and May were the best of those months, historically speaking," said Virginia Port Authority Executive Director Jerry A. Bridges. "We saw increase in rail moves, barge moves, ship calls and containers handled at the Virginia Inland Port."

Total rail containers handled in July were 32,941, a 22.5 percent increase when compared with last July. The year-to-date rail containers total is 212,689 vs. 186,900 for the same period last year; an increase of 13.8 percent.

The number of containers moved between the Port of Richmond and the Hampton Roads Harbor on the 64 Express barge service in July was 401, an increase of 30.6 percent when compared with last July. The year-to-date total for the barge is up 95.8 percent: 5,198 containers vs. 2,655 containers handled during the same period in 2011.

In July there were 173 ship calls vs. 156 for the same month last year, an increase of 10.9 percent. The year-to-date ship calls total is 1,138 vs. 1,051 for the same period last year, an increase of 8.3 percent.

Virginia Inland Port (VIP) in July saw a 17.6 percent increase in the number of containers it handled when compared with the same month last year: 2,328 vs. 1,979. Year-to-date, VIP is running about 1 percent ahead of last year.

Also in July the breakbulk total was 24,377 tons, a decrease of 23.7 percent increase when compared with totals from last July. Still, the year-to-date breakbulk comparison in tons (2012 vs. 2011) has increased 5.6 percent: 212,698 vs. 186,900, respectively.

Calendar year TEU totals, 2012 vs. 2011:

• July 2012 = 180,834
• July 2011 – 167,076
• June 2012 = 168,430
• June 2011 = 151,449
• May 2012 = 178,584
• May 2011 =158,539
• April 2012 = 169,644
• April 2011 = 161,254
• March 2012 = 166,719
• March 2011 = 159,754
• February 2012 = 157,050
• February 2011 = 153,646
• January 2012 = 154,300
• January 2011 = 159,265

VPA, Corps Affirm Commitment to Craney Island Project

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.

Virginia Gets Last-Out on Upgraded Asia-East Coast Service

Norfolk – The Port of Virginia has gained a "last-out" port call as a result of the CKYH shipping alliance's decision to upgrade its all-water services that operate between Asia and the US East Coast.

Virginia, for years, has been a regular stop for vessels from the CKYH alliance, which is composed Cosco, "K" Line, Yang Ming and Hanjin Shipping. Under the new rotation Virginia will be the "last-out" call on the AWE-2 service.

"The change provides an excellent opportunity to capture time-sensitive export cargo, giving Mid-Atlantic and Midwest-based exporters competitive transit times to North Asia," said Jerry A. Bridges, executive director of the Virginia Port Authority. "This decision by CKYH and a move earlier this year by another ocean carrier to make Virginia a last-out call shows that these carriers have confidence in Virginia. Our deep water, terminals, rail connections and customer service all drive these kinds of decisions."

At the end of April, the port rotation on the AWE-2 service will be as follows: .

• AWE-2: Consists of nine 4,500-TEU ships that will call Qingdao, Shanghai, Ningbo, Yokohama, New York, Boston, Norfolk and back to Qingdao.

 

NS’ Heartland Connector Improves Port’s Access to Cincinnati, Detriot

Norfolk –Norfolk Southern has cleared the way for more double-stack intermodal trains to use its Heartland Corridor with the opening this week of a newly improved double-stack rail line between Columbus and Cincinnati, Ohio.

The Heartland Connector will reduce transit times by one to two days and increase service reliability for double-stack freight traveling to and from the Port of Virginia and Cincinnati and Detroit.

The improvements also will provide Norfolk Southern with the potential to connect Ohio Valley markets to other major East Coast container ports.

The Heartland Connector project is a public-private partnership among Norfolk Southern, Ohio Department of Transportation, Ohio Rail Development Commission, and Ohio-Kentucky-Indiana Council of Governments to upgrade the NS rail line to accommodate double-stack trains. Previously, containers only could be single-stacked on trains moving over the connector.

The project included raising clearances at five locations along the 124-mile route between Cincinnati and Columbus and adding tracks at Norfolk Southern's Rickenbacker Intermodal Terminal near Columbus. Prior to the upgrades, double-stack intermodal trains leaving the Port of Virginia for Cincinnati and Detroit followed longer routes through Tennessee or Pennsylvania. Now, double-stack trains bound for Detroit use a route that is 212 miles shorter, and trains traveling to Cincinnati travel 69 fewer miles and save up to two days transit time.

"Routing trains over the Heartland Connector improves transit times and allows Norfolk Southern to provide more reliable service and handle additional intermodal freight," said Jeff Heller, NS group vice president international intermodal marketing. "The Heartland Connector is significant for the Port of Virginia because it increases the efficiency of the Heartland Corridor to move goods to and from Ohio and other Midwest consumer markets and adds to the competitiveness of the Hampton Roads region."

Norfolk Southern's Heartland Corridor is the shortest, fastest double-stack route from the Port of Virginia to the Midwest. A single NS intermodal train takes up to 300 trucks off America's highways, reducing traffic congestion and repair costs. In addition, rail transportation is nearly four times more fuel efficient than trucking, resulting in fewer greenhouse gas emissions.

Above: The first double-stack train to run between Cincinnati and Columbus, Ohio, crosses under a bridge near Middletown, Ohio, where the track was lowered to allow containers to be stacked two-high.

Port Ends ’11 with Growth in All Core Business Areas

Norfolk – The Virginia Port Authority wrapped up calendar year 2011 with a 1.2 percent increase in cargo volume, surpassing the mark set in 2010 by 23,011 TEUs; the VPA completed the year having handled 1,918,029 TEUs.

"We posted growth in all core areas including container volume, in our rail, breakbulk and auto operations and at VIP (Virginia Inland Port)," said Jerry A. Bridges, the VPA executive director. "What should be taken into account is that we grew in spite of a weak economy and some larger trade issues that we had absolutely no control over that an adverse impact on our volumes.

“Posting positive numbers under those conditions tells me that 2012 is going to be different: The economy continues to inch forward, there is considerable interest in the Richmond barge service, CSX has started its on-dock rail operation, both NS and CSX have expanded their rail reach from our port and we have multiple port users that are coming on-line in the later part of this year. An important development is the fact that we have had very productive discussions with some ocean carriers that are considering a change in their East Coast port rotations in order to take advantage of our deep water.”

The year-end trade balance average for 2011 was 59 percent exports and 41 percent imports. The breakdown totals for the core areas of business is as follows:

• Export TEUs: 2011 = 1,032,136 / 2010 = 1,005,370
• Import TEUs: 2011 = 885,893 / 2010 = 889,648
• Rail Containers: 2011 = 330,330 / 2010 = 261,399
• VIP Containers: 2011 = 34,105 / 2010 = 30,414
• Breakbulk Tonnage: 2011 = 347,558 / 2010 = 253,854
• Ship Calls: 2011 = 1,828 / 2010 = 1,841
• Vehicle Units (cars): 2011 = 31,147 / 2010 = 22,948

Calendar year TEU totals by month, 2011 vs. 2010:

• December 2011 = 154,300
• December 2010 = 138,452
• November 2011 = 163,945
• November 2010 = 163,211
• October 2011 =172,776
• October 2010 = 175,518
• September 2011 = 164,050
• September 2010 = 153,006
• August 2011 = 151,980
• August 2010 = 175,122
• July 2011 = 167,076
• July 2010 = 153,944
• June 2011 = 151,448
• June 2010 = 160,701
• May 2011 = 158,538
• May 2010 = 161,535
• April 2011 = 167,157
• April 2010 = 147,119
• March 2011 = 159,753
• March 2010 = 167,262
• February 2011 = 153,646
• February 2010 = 155,049
• January 2011 = 159,265
• January 2010 = 144,097

“A Region United” Details Freight Movement, Economic Significance

Norfolk – The Freight Transportation Advisory Committee (FTAC) has created a short video explaining the importance of developing efficient transportation systems to move freight in and out of Hampton Roads in order benefit the economies of the region, state and the nation.

The FTAC is a subcommittee of the Hampton Roads Transportation Planning Organization. The Committee's mission is to advocate on behalf of the movement of freight in the region. Its members include representatives from Newport News Shipbuilding, Norfolk Southern, Givens Logistics, K-Line America, The CrossGlobe Group and the Virginia Maritime Association.

The YouTube video, entitled "A Region United," can be seen by going to The Port of Virginia's YouTube channel: http://www.youtube.com/user/portofvirginia?feature=guide. Or users can search YouTube under "A Region United."

CSX to Begin its On-Dock Service at APMT on Jan. 3, 2012

Norfolk -- CSX Transportation will begin the start of on-dock rail services at the Virginia Port Authority's APM Terminal in Portsmouth on Jan. 3, 2012.

With the conversion to on-dock rail service at APMT, customers will have the service that has been offered via drayage, but CSX will now use a rail connection with the Commonwealth Railway in Suffolk to access APMT. The new on-dock rail service builds upon the railroad's National Gateway initiative to improve connectivity and efficiency between US East Coast ports and the Midwest.

As transition to this improved service connection, note the following:

• Customers with rail traffic originating at or destined to APMT should continue to rail bill their shipments as 'Portsmouth APMT'.
• Existing CSX rates for Portsmouth APMT will still apply after the service is converted to rail.
• All traffic en route at the time of the service conversion will be monitored closely and transferred by dray to APMT if it arrives at the CSX Portsmouth local ramp.

CSX will continue to provide rail service at the CSX Portsmouth ramp as well as drayage service between Norfolk International Terminal (NIT) and Portsmouth ramp in coordination with Virginia International Terminals.

Federal Government Continues its Commitment to Craney Island Project

Washington, DC – The federal government's commitment to the eastward expansion of Craney Island continues as $26.8 million has been included for the project in a new federal spending package, which is awaiting the President's signature.

"This is the third consecutive year that the project has been supported by the federal government and I think that is a sign of the commitment to the project," said Jeff Keever, senior deputy executive director of the Virginia Port Authority. "We would not be in this position if it weren't for the work of our senators and the Congressional delegation."

U.S. Sens. Mark Warner and Jim Webb requested the appropriation in the spending legislation Congress approved for the 2012 fiscal year.

In a joint statement Webb and Warner said the expansion is expected to generate more than 1,100 immediate jobs now and 54,000 after construction. Officials anticipate the expansion to be complete in 2020.

Craney Island is the site of the fourth state-owned marine cargo terminal. But before any surface construction begins, the VPA must first expand the island by 600 acres to provide a site suitable for construction of a marine terminal. The terminal will be built in phases and the first phase is the 600-acre expansion.

In December 2010 work began on the first stage of developing the cross dikes. The work consists of dredging 1.2 million cubic yards of sand from the Atlantic Ocean Channel and building the initial sand lifts required to construct two cross dikes.

The total cost of the eastward expansion is $700 million and that will be done through a 50-50 cost-share agreement with the federal government. The projected cost for completion of multi-phase terminal project is $2.2 billion.

"We think that by this time next year we should begin seeing the outline of the project – the eastward expansion – breaking the waterline," Keever said. "This is when the project will become real for a lot of people because they'll actually be able to see it; right now all the work is being done below the surface."

Above: An rendering of the completed Craney Island Marine Terminal.

New Intermodal Ramp Will Give Port Greater Access to Tri-State Market

Washington, DC -- The U.S Department of Transportation yesterday announced the West Virginia Ports Authority will receive a $12 million Transportation Investment Generating Economic Recovery III (TIGER III) grant from the to help fund construction of a long-planned intermodal terminal along Norfolk Southern Railway's Heartland Corridor near Prichard, WVA.

In 2010, the port authority delayed development of the facility because of the soft economy and a lack of private developer interest in the terminal. Now, construction is slated to start next year. The facility will provide industries in the tri-state area of West Virginia, Kentucky and Ohio more modern and efficient freight container service and enhanced access to international rail lines.

The terminal is part of NS' Heartland Corridor, a double-stack intermodal route between The Port of Virginia and Chicago that opened the corridor in September 2010. The development of this intermodal site will give The Port of Virginia greater access to customers in the tri-state area, officials from the Virginia Port Authority said.

Rubbermaid Expanding Operations, Building DC Near Inland Port

Richmond – Governor Bob McDonnell has announced that Rubbermaid Commercial Products will invest $67.25 million to expand operations in the City of Winchester and establish a distribution operation in Frederick County.

The company, best known for its commercial cleaning, materials management, washroom and foodservice products, will add a total of 71 new jobs. In Winchester, Rubbermaid is investing in high-technology, energy-efficient injection molding machines to upgrade the facility's production capability. In Frederick County, the company will retrofit an existing 454,000-square-foot facility into a state-of-the-art logistics center.

"Rubbermaid Commercial Products has been in operation in Winchester since 1968, and I am pleased that the company will now establish a distribution center in nearby Frederick County," McDonnell said. "This significant investment is a logistics strategy that will streamline the manufacture and distribution of the products."

"Proximity to the Virginia Inland Port and the Port of Virginia gives the company direct access to its international and domestic customers, and is an advantage that sets the Commonwealth apart from its competition," said Jim Cheng, Virginia Secretary of Commerce and Trade. "In addition, the availability of an existing facility in Frederick County, located near the company's operation in Winchester, was attractive to Rubbermaid to retrofit for its new logistics center."

Rubbermaid Commercial Products, headquartered in Winchester, is a manufacturer of products in the food services, sanitary maintenance, waste handling, material transport, away-from-home and washroom and safety products for commercial and institutional markets worldwide.

New CSX Rail Service Links Port with NW Ohio

Norfolk – CSXT announced today (Oct. 7) that it is offering international container service that will link The Port of Virginia to the railroad's intermodal ramp in Northwest, Ohio; the service begins Oct. 10.

This development will connect customers using The Port of Virginia to the markets of Findlay and Toledo, Ohio as well as Ft. Wayne, IN. In those three markets combined, there are several manufacturers. The service is seen as another asset that helps the port expand its reach into the nation.

The Northwest Ohio ramp will have service to/from the following locations: Chicago, 59th Street, Portsmouth and at APM Terminals beginning in the first quarter of 2012.

New Rail Service Expands Port’s Reach into the Southeast

 

Norfolk – A new double-stack rail service that expands The Port of Virginia's reach into central North Carolina, an important and growing Southeastern market, will be inaugurated in mid-October, port and railroad officials confirmed recently.

"Many North Carolina-based cargo owners have expressed a very genuine interest in this service because of the economics of bringing their cargo through our port and into this market by rail," said Jerry A. Bridges, the VPA's executive director. "This service diversifies and enhances our reach into what we see as an area with a lot of potential."

The six-day-a-week service is owned and operated by Norfolk Southern. It will serve Greensboro with a focus on the textile, furniture, retail, chemical and agriculture industries; the city is considered a load center for imports and exports of those cargoes in central North Carolina. The service is already supported by two ocean carriers that have committed to its use and it is generating interest from other carriers as well.

Greensboro, Winston-Salem and High Point compose central North Carolina's Piedmont Triad and in that region there are an estimated 1.6 million people. Greensboro is the largest of the three cities; interstates 40 and 85 intersect just outside the city.

Bridges said he sees an opportunity for Virginia to test the "big-ship, big-reach theory." As the frequency of big vessels calling Virginia increases, the amount of cargo moving across the port will grow as well and much of that cargo, Bridges said, will be heading to new markets.

"The rail extends from Greensboro to Charlotte on down to Atlanta and over to Memphis so the infrastructure to reach into the South is there; this service is a good start and we're going to capitalize on it," he said.

Other advantages of this service include:

• Provides cargo owners an alternative to the truck market out of ports in South Carolina and Georgia;
• Seven-day-a-week container availability at the Greensboro rail ramp with 24-hour-a-day availability Monday through Friday as well as weekend limited hours of service;
• Faster truck turn times that will help maximize truckers' driving time under Hours-of-Service rules;
• The possibility of multiple truck turns per day at the ramp because of its proximity to cargo owners versus longer dray moves to, or fewer turns at a port;
• The container yard adjacent to the ramp offers the ability to terminate and dispatch equipment, thereby facilitating one-way moves, matchbacks and empty container storage;
• Neutral chassis pool (HRCP2) on-site;
• A 63 percent reduction in greenhouse gas emissions when compared with trucks; and
• The lowest environmental impact when compared to moving cargo via other major Southeast ports.

Train schedules are available at: http://www.nscorp.com/nscintermodal/Intermodal/System_Info/Terminals/norfolk.html

CNBC Ranks Virginia as Nation’s Top State for Business

Mount Vernon – Virginia has been named America's "Top State for Business" by CNBC. The Commonwealth took the top spot in the annual study, receiving the highest point total in the history of the rankings; finishing in the top-half of every category.

The No. 1 ranking comes on the heels of Virginia receiving the highest ranking of any state east of the Mississippi in the American Legislative Exchange Council's economic competitiveness ranking of the states, which was released last week.

"Our focus, from day one of this administration, has been to put in place the policies that will help private sector businesses create those jobs in the Commonwealth and get our economy back on track," said Gov. Bob McDonnell. "We've done that by keeping taxes low, getting government spending under control, having a strong Right to Work law, and making smart investments in transportation, economic development and higher education.

"We are telling the Virginia story to job-creators from Beijing to Boston and it is paying off. Chief executives and entrepreneurs have responded to our efforts and found that Virginia is a great place to start and grow a business."

In its official release announcing the top ranking, CNBC noted, "With an unprecedented fiscal crisis at the state level, never has it been tougher to stay competitive. But Virginia met the challenge on every level, achieving the highest point total in the history of our study, and finishing in the top half of every category."

To determine the rankings for America's Top States for Business each state was scored - using publicly available data - on 43 different measures of competitiveness. States received points based on their rankings in each metric, which were then separated into 10 broad categories: Cost of Doing Business, Workforce, Quality of Life, Economy, Infrastructure and Transportation, Technology and Innovation, Education, Business Friendliness, Access to Capital and Cost of Living.

Virginia has been reducing spending, investing in job creating programs, improving workforce development programs, and selling Virginia around the world, said Lt. Gov. Bill Bolling, whose main charge in the administration is creating jobs. "This ranking is proof that our efforts are paying off."

To see the complete CNBC report go to: http://video.cnbc.com/gallery/?video=3000030355.