Commemorative Book - Abridged Edition

100 Years: THE VIRGINIA MARITIME ASSOCIATION'S COMMEMORATIVE BOOK - ABRIDGED EDITION-

Amid Constant Change,

a Steady Force

A fiery rock hurtling from deep space smashed into the earth, creating a massive hole on the edge of a landmass. This single blast 35 million years ago gouged out the watery crater we know as the Chesapeake Bay. The titanic event was the first of many that have shaped the ports of Virginia. Wars, energy crises, the rise and fall of nations, economic shifts, political transitions, and revolutions in ship design, containerization, logistics and cargo handling have all been powerful catalysts.

Amid this sea of change, the Virginia Maritime Association has helmed a century-long steady course of growth at the state’s ports. Today, they account directly or indirectly for nearly 10% of employment statewide. This achievement stems from key principles the VMA established at its beginning and to which it has remained constantly true.

Celebrating 100 years

1920

Of Maritime Industry Growth

The Virginia Maritime Association was founded under the name the Norfolk Maritime Exchange.

"The Voice of Port Industries" www.VAmaritime.com

AMID THIS SEA OF CHANGE, THE VIRGINIA MARITIME ASSOCIATION HAS HELMED A CENTURY-LONG STEADY COURSE OF GROWTH AT THE STATE’S PORTS. Initially called the Norfolk Maritime Exchange and then the Hampton Roads Maritime Exchange, a group of 56 port-focused businesses and interests came together on February 13, 1920 to promote the port of Hampton Roads.

A quarter of a century later, first-ever executive vice president Harry M. Thompson wrote about its founding philosophies. “The Hampton Roads Maritime Exchange was organized shortly after the close of World War I to prepare Hampton Roads – which had played such an important part in the conflict – for the role it was destined to play in the development of the port and other interests in the years to follow.”

The VMA is the primary advocate for the public on all issues related to the port. And we recognize the VMA also

fights for companies far beyond cargo and ship repair, In 2019, the VMA created the LNG Workgroup, bringing together regional maritime stakeholders and subject matter experts to discuss the future of emissions compliance regulations and the use of Liquified Natural Gas (LNG) as a compliant fuel option for vessels calling on our port.

1923 The Norfolk Maritime Exchange changed its name to the Hampton Roads Maritime Exchange.

including law firms and banks.”

- MARK COBERLY,

Partner, Vandeventer Black LLP

1926 The Hampton Roads Maritime Exchange participated in the improvements to the channel in the Southern and Eastern Branches of the Elizabeth River with an appropriation of $541,000 from Congress and the Newport News Ship Channel has been deepened and widened at a cost close to $750,000.

The Voice of Port Industries since 1920

2

WE FREQUENTLY USE THE WORDS

collaboration and cooperation

He noted that “From the outset, the Exchange followed

Today the newest leader, VMA executive director David

a broad, flexible program in advancing and promoting

White, voices similar sentiments: “We frequently use

better understanding among those engaged in port

the words collaboration and cooperation. That culture

and allied activities. It has provided a medium through

has benefitted this port tremendously. It is curious

which maritime interests could take concerted action

how we have gotten to the place where we’ve been

on important issues and present a united front on

able to foster an environment where cooperation

legislative, transportation, harbor and other matters.”

and collaboration are ingrained in what we do here.”

These concepts are integral to the organization, he

In words that could have been written now, he emphasized:

says. “How we conduct ourselves isn’t written down anywhere, but we’ve stayed true to our philosophy about how we fulfill our mission. “

“THE EXCHANGE HAS STRIVEN AGGRESSIVELY TO PROTECT ALL PORT INTERESTS, AND TO ADVANCE THEM TO A PAR WITH COMPETITIVE PORTS OF THE COUNTRY.” Thompson added that “National legislative matters, and legislation coming before the General Assembly of Virginia, are closely scrutinized by the Maritime Exchange. In addition, close contacts are maintained with Virginia Senators and Representatives in Congress, as well as with the members of the General Assembly.”

VMA Port Day: Association members educate the General Assembly about Virginia’s maritime supply chain needs.

100 years

1928

The Exchange aided the City of Richmond in its effort to obtain federal funding for improvement of the James River channel.

3

Virginia Maritime Association

1931 A new coal pier was built for the Chesapeake & Ohio Railway Company for $2,000,000 with a thirty-eight foot channel.

Where a

SUPER-PORT

Could be Created

After World War I ended, peace brought prosperity to Hampton Roads. By 1920, commercial shipping replaced the necessities of war and the impact quickly became clear. From 1919 to 1920 the value of exports doubled to $219 million, according to the Norfolk and Portsmouth Directory of 1920-1921. Even more astounding, the value of imports grew by 500% to $11 million. For the fiscal year ending June 30, 1921, the port of Hampton Roads outpaced the port of New York in export tonnage, U.S. Department of Commerce records show.

An array of goods came from throughout Virginia to be sent around the world: agricultural tools, wood and wood products, tobacco, coal, fertilizer, molasses, iron and steel, oyster shells, cotton, peanuts, boots, meats, flour, livestock, lime, hay and petroleum.

The activity was capturing attention for the port of Hampton Roads. The circular “A World Port in the Making” issued at the time by the National Rivers and Harbors Congress spoke to the possibilities. “Suppose all the ocean business of this great country and this vast population had to be done through one single port. Where could such a port be made? Here is one place, if not the only place in the United States, where such a super-port could be created.”

TO PROMOTE PROTECT & ENCOURAGE INTERNATIONAL & DOMESTIC COMMERCE

through the ports of Virginia.

The timing couldn’t have been better for the initial 56 port

Compare that with the Virginia Maritime Association of one

businesses that came together and formed the Norfolk Maritime

hundred years later: The membership roster has expanded

Exchange, now called the Virginia Maritime Association. The

tenfold with chapters statewide. Its members represent 85

VMA’s founders saw their mission as being no different than it

business categories, including many unheard of at the VMA’s

is today: “To promote protect and encourage international and domestic commerce through the ports of Virginia.”

founding, such as cyber security services, logistics consultants, intermodal carriers and modeling and simulation providers.

In addition to business members, another member group was established over the years and has been crucial to the association’s success. Unlike other maritime organizations, the VMA includes ex officio members who serve a vital role alongside its more than 450 business members. Former VMA executive vice president J. J. Keever describes ex officio participants as “the government agencies and entities that the maritime industry does business with, such as Customs and Border Protection, U.S. Coast Guard, Navy, Army Corps of Engineers, and even Fish and Wildlife. Having them engaged

1925: various coal piers, warehouses, cargo piers, and stock pens.

with us is a more cohesive approach to resolving issues.”

These ex officio members, public sector leaders in the

The VMA of 1920 was a microcosm of the era’s regional

regulatory requirements of government, attend committee

maritime industry. Among its founding members were

and board meetings, symposia and events alongside business

stevedores, terminal and steamship operators, machine

members. They are involved with all facets of issues faced by

works, ship and engine repair firms, welding companies, and

the port, working as a cohesive group for the good of all.

law and insurance firms. Most were located in Norfolk and close to the waterfront, but some companies hailed from as

The VMA’s 28 active committees serve a crucial role in the port’s

far away as Newport News, providing representation to that

daily operations and long-range planning. They find common

region of the port.

ground among competing interests.

100 years

1932

The Chesapeake and Ohio Railway Company’s coal pier at Newport News was completed at a cost of $2,225,000. The Pier was 1,000 feet long and seventy-two feet wide.

5

Virginia Maritime Association

1933 A major port project launched to “deepen and widen the channel in the Southern Branch of the Elizabeth River, Southward from the Norfolk & Western Railway Bridge at Gilmerton.”

David White, the current executive

seemed to leave their competitive hat

by barge and commercial ship repair

director, says, “There were situations

at the door and work together for the

activities result in 79 million tons of

where there were great differences.

best outcome.”

goods moved annually, generating over

Truckers, warehousemen and container terminals had to work out enormous differences.

The

VMA

provided

a

The century-long expansion of the shipping the

supply

ports’

chain

influence

has well

taken beyond

10% of Virginia’s gross state product, producing 530,800 port-related jobs, adding $2.7 billion in state and local taxes and creating $27.4 billion in wages.

“THERE WERE SOME PRETTY FORWARD-THINKING PEOPLE BACK IN 1920 THAT PUT THIS GROUP TOGETHER. FROM MY EXPERIENCE OF THE LATE 70’S AND BEYOND, PEOPLE WERE ALWAYS LOOKING OUT FOR THE LONG-TERM BEST INTEREST OF THIS PORT."

The 1920 circular noting how Hampton Roads could become a

“super-port’

expressed

a

vision that continues to come

platform where diverse segments of the industry could come together and work through their disagreements.” In almost all cases, in the past and today, the VMA’s committees have overcome discord.

Keever marvels at the way the VMA has evolved as a strong institution to address the ports’ many needs: “There were some

Southgate Terminals, Norfolk, VA. 1925.

pretty forward-thinking people back in 1920 that put this group together.

southeastern Virginia. The industry’s

alive

From my experience of the late 70’s and

impact on the entire Commonwealth is

across the Commonwealth. The Virginia

beyond, people were always looking

profound, according to a 2016 study by

Maritime

out for the long-term best interest of

the College of William & Mary’s Raymond

working together, are the catalyst that

this port. And when they walked in here

A. Mason School of Business. A wide

keeps this impressive economic engine

for some meeting, whether it was a

variety of commodities in bulk ships,

moving forward and its complex parts

regulatory or operations issue, everyone

goods in containers, cargos transported

functioning smoothly.

1936 The Norfolk and Western Railway finished its low-level pier at Lambert’s Point costing over one million dollars.

The addition made the port even more vital to the coal industry.

in

southeastern Association’s

Virginia

and

members,

1939 The Hampton Roads Maritime Exchange lent its aid to the development of a municipal airport in Norfolk and the establishment of regularly scheduled air mail, passenger, and express service. The largest passenger-freight vessel ever constructed in this country, the steamship “America,” was launched at the Newport News Shipbuilding and Drydock Company. The ship was approximately 30,000 tons and was built at an expense of $18 million for the U.S. Maritime Commission.

The Voice of Port Industries since 1920

6

1941

1945

The Hampton Roads Maritime Exchange developed a committee to address ways to aid the government defense program in World War II. As a result, vessels were assigned to Hampton Roads for the movement of cargo under the Lend Lease Act. The Lend Lease Act of March 1941 sent $11 billion in war material to the Soviet Union.

Name changed from the Hampton Roads Maritime Exchange to The Hampton Roads Maritime Association.

1948

1946

100 years

Activation of the new Norfolk & Western merchandise terminal at Lambert’s Point.

The whole world engaged in a vast program of reconversion and reconstruction.

The respiration and extension of steamship services, return of terminals to private operation, elimination of restrictive Government regulations (necessary during the war), development of export and imports, protection and development of waterways, were all matters of careful study and active consideration.

The VMA and its staff do a

fantastic job advocating and staying out

front on key issues. We are blessed to have such a strong industry association. Busy waterways mean Colonna’s will benefit like everyone else. We’re grateful to the VMA for paving the way and look forward to - BOB BOYD, Vice President of Strategic Growth and Development, the next 100 years.”

Colonna’s Shipyard

7

1949

1952

The Association served as the sponsor for the first annual Virginia World Trade Conference.

The Elizabeth River Terminal on the Southern Branch and the Norfolk Oil Transit, Inc., at Lambert’s Point both began operation this year.

Virginia Maritime Association

The $70 million liner, the “United States” was completed at the Newport News Shipbuilding & Dry Dock.

A Modest Man with

A GIANT’S INFLUENCE

In the Virginia Maritime Association’s early days, it was easy for its staff to know what ships were pulling into port in warm weather. With the fifth floor windows open on Norfolk’s Plume Street to catch the breeze, they could identify each vessel by hearing its distinctive whistle. One of those with a finely-tuned ear was Harry M. Thompson. He co-founded what is today the VMA and served as its initial leader, a position he held for 46 years.

1953

1957

Virginia State Port Authority established this year. “With solicitation of port business as its major objective, the authority is perhaps the foremost step taken toward port progress in recent years.”

“The $6 million Craney Island Disposal Area, initiated and sponsored by the Hampton Roads Maritime Association, was placed in operation.

It was expected this disposal basin will serve the needs of Tidewater as a repository for dredged materials for the next 25 years.

The new $60 million, 3 ½ mile long Hampton Roads Bridge-Tunnel formally opened.

The Voice of Port Industries since 1920

8

THE ARTICLE WENT ON TO SAY: “OUT OF THE MAZE OF CONFLICTING INTERESTS THAT IS THE PORT, THOMPSON FORGES UNITY OF PURPOSE BY VIRTUE OF ‘A TREMENDOUS FUND OF DIPLOMACY AND TACT.’” Thompson had the largest office in a cramped space outfitted

Thompson is credited with developing many of the VMA’s

with the communications technology of the times: “A telephone,

founding principles as well as broadening and increasing the

a mimeograph machine and Western Union coming by two or

VMA’s membership and clout. He also oversaw important port

three times a day,” says Jack Mace, Thompson’s successor. Mace

achievements, including:

is one of many who point out that the VMA’s success today traces back to Thompson’s skills and personality. “He was very popular, friendly, highly-respected, competent and courteous.”

- Deepening the channel in the southern branch of the Elizabeth River, - Deepening the Thimble Shoals and Norfolk Channels to 45 feet,

An article in the Portsmouth Star highlighted Thompson’s role.

- Extending the Hampton Roads anchorage area, where ships await their turn to move into port,

The newspaper interviewed Barron F. Black, former volunteer

- Distributing ship arrival information,

president of the Hampton Roads Maritime Association and an admiralty attorney. The paper wrote that “Thompson’s role in the projects he has been associated with is rarely that of an originator; rather, he is the man who eases them through. When obstacles arise in development of improvements in the port area, Thompson is the man who is called on to overcome them.’”

- Bringing ship repair work to the region, - Conceiving a vision for turning the Craney Island Disposal area, created to hold dredged materials, into the Craney Island Marine Terminal. This then far-fetched idea for enlarging the port was once jokingly known as “Thompson’s Swamp.” Now it is the largest permitted port expansion on the East Coast and could be considered his greatest achievement.

The Portsmouth Star also asked David Alston about Thompson.

Alston was the lead labor representative in labor negotiations of this period and international vice president of the International Longshoreman’s Association. “Alston describes him as ‘the fairest man you’d ever hope to meet,’” the newspaper wrote. “Alston says he deeply appreciates Thompson’s unfailing courtesy toward union representatives. ‘He’s the best investment the maritime industry has around here. He pays a larger dividend than anything I know.’”

100 years

1959

Widening of the Norfolk Ship Channel to 1,500 feet was completed during the year, providing an approach channel of greater width than any port on the East Coast, South of New York.

9

Virginia Maritime Association

1961 The world’s first nuclear-powered aircraft carrier, “Enterprise” was finished this year at the Newport News Shipbuilding & Dry Dock Company.

Once serving as a U.S. Quarantine Station in 1932, Craney Island will one day become a modernized container terminal .

Rendering of the future Craney Island full build-out.

However,

Thompson

always

credited

others

with

the

Throughout his life, family was very important to Thompson.

association’s successes. In 1956, he told an audience,

Don Fulton, his oldest grandchild, remembers relatives

“I believe you will agree that the growth of the ports of

gathering for a meal every Sunday at his grandfather’s house.

Hampton Roads is a culmination of many years of effort

Afterwards, Thompson would often head to the Norfolk Zoo,

by many people, all fired by the common ambition:

usually with grandchildren in tow, to take an ice cream cone

A GREATER HAMPTON ROADS.”

to Jocko, a squirrel monkey from Brazil he had raised and then

Thompson’s affinity for the region’s ports seems natural in

given to the organization.

retrospect, for he was the son of a coastal steamboat captain.

Mary Anne Strickland, Thompson’s youngest grandchild

His father passed away when Thompson was just eight and

active in today's VMA, says one of Thompson’s traditions

family finances were tight. In 1906 at the age of 15, he began

demonstrated how important the maritime association was to

working, landing a position as a stenographer for Old Dominion

him. “He gave each grandchild an inscribed Port Annual for the

Steamship Company.

year we were born.”

1963 Norfolk & Western’s new $25 million coal pier 6 was opened on September 18th.

1964 The Chesapeake Bay Bridge-Tunnel was completed this year and may be “the engineering feat of the century as it spanned the Chesapeake Bay and brought the New York area 90 minutes closer.”

The Voice of Port Industries since 1920

10

1966

1967

Harry M, Thompson, executive vice president and secretary of the Hampton Roads Maritime Association, retired on June 30, 1966 after 46 years of service.

Portsmouth reentered port business with Portsmouth Marine Terminal, owned by the Virginia State Port Authority and operated by the Portsmouth Port and Industrial Authority.

100 years

The former Hampton Roads Army Terminal was taken over by the Norfolk Port and Industrial Authority for administration, renamed Norfolk International Terminal, and operated by four stevedores under the name Norfolk Terminal Corporation.

Newport News dedicated a new $8,000,000 cargo pier, Pier B. It is owned by the Peninsula Port Authority and operated by the Chesapeake & Ohio Railway.

best way to stay

For us, the VMA is the to the maritime community.

The VMA provides open dialogue between all partners, helps to pass important bills and protects - ASHLEY REESE, Regional HR Manager, Great Lakes Dredging and Docks the community.”

connected

1970 The Virginia General Assembly constituted the Virginia Port Authority, effective July, 1970 in the first step to unify the ports of Norfolk, Newport News and Portsmouth. Unification of the ports was predicated mainly on the General Assembly funding the acquisition of locally controlled terminals and assurances of an orderly development of facilities as the need arises The ‘land-bridge’ or intermodal transportation concept was inaugurated in the United States when three containers from Europe were handled in Hampton Roads destined for Vancouver, British Columbia

11

1968 Containers are handled for the first time in the port by new Portainer cranes at Norfolk International Terminals and Portsmouth Marine Terminal.

Dredging of the outbound Newport News channel to 45 feet was completed to Chesapeake & Ohio’s Pier 14, its largest coal pier at Newport News.

1971

1976

The Association purchased and dedicated a large office building in October at 236 East Plume Street following residence at 127 Bank Street since 1961.

A charter was issued to the Hampton Roads Shipping Association, whose membership consists of all direct and indirect employers of the waterfront labor and was established to more effectively conduct management-labor relations.

Virginia Maritime Association

A GREATER

IMPACT

than the Industrial Revolution When North Carolina trucker Malcolm McLean pulled up

This innovation sparked by one man’s imagination led

to a New Jersey dock one morning in 1937, he found he

to upheaval in worldwide supply chains. By the 1960s,

had a lot of time to think. It took most of the day for his

a number of shipping firms were using containers. As

turn to arrive to deliver the cotton bales he had hauled

McLean’s business evolved, it became known as Sea-

there. Such waits were part of the job due to the nature

Land, now a division of Maersk Group, the world’s largest

of freight shipping in those days. Hours were spent

container shipping company.

loading and unloading barrels and crates of varying sizes.

McLean’s frustration that day turned into an epiphany, leading him to envision a standardized container system to replace this unwieldy and time-wasting process.

His concept took nearly two decades to become reality.

Then on April 26, 1956, he used specially-designed cranes to place 58 containers onto a ship he had purchased and renovated. When the vessel made its way from Newark to Houston, the containerization process central to today’s shipping industry was born.

1945: A Busy Pier Operation

1977

1980

The HRMA urged that the VPA should be altered to have more control and authority over the state-owned facilities, common operation, and a single terminal tariff structure. Competition between its terminals had been an obstruction to unification.

Hampton Roads dumped a near record 48.6 million tons of export coal in 1980, nearly 50 percent more than was loaded the previous year.

The extension of the 35-foot channel of the Southern Branch of the Elizabeth River was completed in 1980. “The new channel opens 476 acres of deep-water, heavy industrial land to development and another 370 acres inland for satellite industries.”

The Voice of Port Industries since 1920

12

There are 530,000 jobs related to the maritime industry.

Many of TowneBank’s members employ those people.

The Virginia Maritime Association is in our blood. We are proud to be a sponsor, particularly on the hundredth anniversary of the VMA.”

- MORGAN DAVIS,

President and CEO, TowneBank

“Worldwide containerization had a greater impact than the Industrial Revolution,” says Jack Mace, the second leader of the Virginia Maritime Association. Ports in Hampton Roads and around the world had to adapt with specialized cranes, deeper harbors, and redesigned and larger loading facilities. The Suez and Panama Canals were enlarged to handle bigger ships and more traffic.

The effects even reached past port facilities onto land. More roads and tunnels were built, rail systems adapted to transport containers, and enormous distribution centers arose to manage the ever-greater volume of freight.

Containerization quickly became a fundamental link in forming the modern supply chain conveying products across oceans and countries to their users.

1959: Bulk cargo being handled at Chesapeake & Ohio Rail in Newport News.

The shifts propelled the VMA into broader action. The organization served a key role in the shaping of regulations to make container shipping easier. It backed government consolidation of the region’s ports under one state authority.

The VMA brought its clout to Virginia’s General Assembly and the federal government to obtain funding for port expansion and deeper channels to carry larger ships. It pushed for establishing an inland port to distribute containers more efficiently and for rebuilding rail infrastructure so double-stacked container trains could better travel from Virginia to the large cities of America’s Midwest. In addition, the VMA helped labor and business find common ground amid the shifts, keeping labor strife and strikes to a minimum.

13

Virginia Maritime Association

1988

“It’s always external macro-forces that cause the change,” says Joe Dorto, who served as the first

In 2018, construction began on a $452M terminal optimization project at Norfolk International terminals to increase capacity by 46%. The VMA played a significant role in securing the state funds.

CEO of Virginia International Terminals, a post he held for 25 years. “World trade is always changing.

We have some very stiff competition on the East Coast.” Dorto says the VMA provided impetus for the cities of Hampton Roads to consolidate the area’s ports under one authority. Working together enabled the region to better compete against others on the East Coast.

With commerce evolving and becoming ever more complex, the VMA constantly addresses how the supply chain affects the region and the state.

Activities can range from helping decide when a drawbridge should open for water traffic to advising on where bridges should be located and how high they should be to accommodate future ships. The VMA examines each situation carefully to weigh its immediate, future and broader impact.

100 years

With the $312M project to expand Virginia International Gateway’s capacity completed by the end of 2019, VIG is now able to handle 3 ultra large container vessels simultaneously.

1982

The Hampton Roads Maritime Association supported port unification was completed with the three largest general cargo terminals of Norfolk, Portsmouth, and Newport News under the control of the Virginia Port Authority; thus allowing the port to concentrate its competitiveness toward the true competition from ports to both the north and south.

The Hampton Roads Maritime Association announced an expanded Vessel Traffic Information Service available seven days a week. HRMA is “on line” and receives vessel arrivals departures and intra-port movements via a CRT screen.

The Voice of Port Industries since 1920

14

A PORT FOR

All of Virginia Linwood Holton was traveling in Virginia’s coal country in the early 1970s when something caught his eye. “I saw Sea-Land on the side of a box in Appalachia, Virginia, about as far west as you can get and I pointed out that it had come from the port of Hampton Roads. That was evidence of how important the port was to the entire state.”

Holton was more than a tourist; he was Virginia’s governor. He was well aware that the western region of the state regularly sent coal east to the port of Hampton Roads.

Linwood Holton, Governor of Virginia from 1970-1974, played a crucial role in port unification.

“I saw Sea-Land on the side of a box in Appalachia, Virginia, about as far west as you can get and I pointed out that it had come from the port of Hampton Roads.” -Linwood Holton

“

Coal was king...

Into the 1970’s, Norfolk, Portsmouth and Newport News each operated their own city-owned ports. Insular interests prompting them to compete with each other as well as with other East Coast ports. Virginia commissioned a study to examine whether the ports should unify. When the answer came back yes, Holton championed the creation of a unified port system under the umbrella of the Virginia Port Authority.

“Coal was king in the 70’s in this port,” says former VMA executive vice president J.J. Keever. “Virginia was the top port for coal. The state tried to focus on what was Virginia’s lifeblood and there was huge global demand for metallurgical coal.” Even today this port remains the nation’s leading coal exporter.

One person closely involved after consolidation was Joe Dorto.

He became the first CEO of Virginia International Terminals, the operating arm of the unified port. Dorto explains the problem prior to unification this way: “There was no growth, absolutely no growth,” he says. “We were taking business from ourselves,” with the cities trying to outbid each other by a penny or two. “At

That Sea-Land container grabbed Governor Holton’s attention

the same time, containerization came about. The cities couldn’t

because it was the first evidence he had seen that the

afford to modernize their ports, and really didn’t want to.”

relationship between Virginia’s coal-producing region and Hampton Roads was a two-way street, so to speak. While coal was being sent eastward to the ports, the ports were sending containerized cargo westward. Governor Holton realized the world was evolving and that the ports had the potential to do more for all of Virginia than just export coal. He believed if

Still, unification approval by the General Assembly of Virginia was far from a sure thing. It may not have happened, or at least not as quickly, without the Virginia Maritime Association. According to former VMA leader Jack Mace, “It was the association which urged the General Assembly to create a port authority.”

Virginia were to have a role in the new age of containerization,

Speaking as an organization was one element of the success.

the structure and management of the ports in Hampton Roads

In addition, Dorto says “The VMA had the clout of private

had to change.

company members. Richmond was swayed by that.”

The Voice of Port Industries since 1920

16

J. Robert “Bobby” Bray, an early executive director of the Virginia Port Authority, is frank about the unification challenge then and how it carries forward to now. He notes that even today,

“The damn cities wouldn’t get together on anything. That’s why the VMA is so important.

It’s the same in the past as it is in the future. Even though the Port Authority owns all the terminals, you still have the cities fighting over where the money goes. Until you get somebody outside of government to speak for industry, you’re going to have problems.

That’s why the VMA’s role is so important and will continue to be vital.”

... & Virginia was the top port.“ 100 years

1985

HRMA resolved to hold Maritime Briefings in order to promote support for the port, with the primary goal of keeping “non-industry members” informed of port issues.

17

Virginia Maritime Association

1986 After seventeen years of advocacy by the Hampton Roads Maritime Association, Congress passed the Water Resources and Development Act of 1986 “authorizing the 55foot channel project for Hampton Roads.”

the voice of the port

The VMA is and they work for the collective good of everybody in the port. Whether you are a stevedore or longshoreman or terminal operator, - GEORGE BROWN, they are working in everybody’s best interest.” President and CEO, CP&O

The VMA has helped our company through the years to

develop connections and build a network that has helped us to grow. We continue to value the networking opportunities like the - KELSEY HOST SARCONE, Vice President, Corporate, T. Parker Host Future Leaders program.”

I have seen up close the important work the VMA does to make sure all of our elected officials understand the importance of the port today and why it should - ROB ROBINS, President, Bay Diesel remain healthy for the next 100 years.”

1988 To accommodate greater shipments of coal, the newly constructed 50 foot outbound shipping channels were opened December 16, 1988.

1989 The Virginia Inland Port, 220 miles inland, became operational to begin more effectively serving shippers in Northern Virginia, West Virginia, Maryland, Pennsylvania, New York, Ohio, and Delaware. The impressive relationship between management and ILA labor was recognized when the Carrier Container Council chose Hampton Roads to inaugurate fixed-rate cargo stuffing and stripping at the first Container Freight Station.

The Voice of Port Industries since 1920

18

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the ission, January J20 Comm an , 20 icts ua13 d w ry 2 a ie r t n, con d Rev n io a s is y m it it r d m o u o h c A t u y A d t posiron, hithsesprin g’s ’s stu ia Port ermis ices seenmblyretiremtentthof iewg oCvomhis sprirang V Joirgin assidre evin prct orto, .” The vo es ’s titrean hofaexeceut e Din itiallan oofnnt’t di , co dnen y dhaRnd commis chttief m onD s Aud si . able Previouus decornsultant t rt y io n t po n Jo rte a fic ive enD Viho t e rg ty s of s over te pote mbly’s studycompa pres or ri in s u lo g to ia id s’ studies er s a in , en In ut g A nd t JL u rt ing and chiern ha at tinvi , the co C ou a Po re repo gePtAR ivate the VofirgipVniririv cia s rrtco will covo the nys.taDon’t toassea prns atiz potentially ecalllutyTe nexion inalin mpany that are po s, taignt ivermof nefapo mice es e, c., afte“rfith nos’red st ficserIn the state e tononsteul operates th ofainablgie.”niT a heIn m d rtio that is ste suud s r ate compa ation r se e cces d iv o a te as JL rt k by v pr rn h ’s ses the AP A e port. li t ies, be a at g fa VI R r , st io st in g C T and the oSagdlloy,udth nin year ever. comin rivatiz nalosTiter su in re p e un io po er p Mm ly pr m rt o g ’s un al co m w a of erations to ci no ill po r in at I op e pofailed to mssenembly tes, igno rt authority pit could be als aIn paso in co d licth , ex inan b tt favo p ny m iteat n g “f ge o in e d biop a n e e is an c. af f h r , o ar d,er m am te o re r I anat e, r , ur rt , d te min th d aescoth tion recent w po prsoposal fro ng man A u the first of steed su e d ro po e g b l cc n ya n T mpe is y w to in n lik rt a es a e by m bi , r ’s tinrt a se n, nd m er g t e po t be g io r t g. gr ha V rd a ch e m m anot r sit ge hg ha angelo dsteed year ever. the Ge“dnesk-based,” ITpoan th or were but g hin optpo ,om Sa rt d the ow ydlmy,tin nco bidder, are d s uaim ist aofny adn25T0umriles from at erefo meani anytehisng epabe po n being reviAPM’s unhe r thth y at at so a ar e t rt e fr fa th m lic R ex u y d sh ou co ng ile iz au o bl o ap it m an ab t y ny d stdill c th th te in pa b a em co s pa ey il to er g ew B or ss ny thul im just 250 m iv didn’t inclu ed by the ited bid, an ity a Ait m d t in com just a r loud ss loca f en , al te at be p a d o ne rv ’s er d tio ru si pr m iew an to th en od n t to It ns an op bu G e s s s de . re a osal from port authority a co Virgfir with anyoce d its over regoperchatan over st cpo bo eing inia’ ate e hfoer th nesore dd esrts “dto inyetebi nent grow ine, it seem ess locop terest of n ig s another bi ’s erations eems oin esth Bu izoege s rtsin orrtwere ard. Deliberativ k-or prsoof atoion au re. It ’s tim baityseor aim ivg ds.po s relat e analy nia coastl e po ed in tpr d,”VImT.eaning from thth sact only the inoperaatio dder, a to inpr hissh atedtre usrtinicular be th s m ly od igcno it to sis, howeve b pa es in e n su th go the Virgi , a a a g oc p du gg co e to o e sh ap ke st reith es g ip n ed t to ry e e th ta ts in pa view pi is ir s ey didn’t in g ng intervInie sh that ne ny that represto qu ein ents one of serem lik ired esto ato stop th seem lik ny would er ed coasretli thy,e portr, au n’tula is neby n of cludrig restic wsort,with s runs ioia a e atin do ce e p V s iz th ss ss u dr ir th s our compa rs at . ey ar a ’t ne q bo gi op e ive e g ht iv s de si n e we ni bi ar er e rs ol pr ca an or n ir s r t bu in gg a’s re ationsus si of the econom l ll fod. y the areh ne cofrmom r theD ta k shld doateions. coelmib plete,than r ityosn’t swou e potentiathe V Virginian d thoe fman peryatinioH ptonport est auce nessyrelaote mer thrtorainly or onat nobtV e h. analysis weiv e d port Thsu many ban. dBu nyersoper alt ly aIT old sofo iragitni rest in th lid foundatio izaatanion rt. Any Vi co thinedu m r rViv Roads hu Aity remhpa e cu ania. rg e r its d to theam , fact, alclompany c deal fop a d in p s . fo gg rr s h n ho In sh en y m st es s a a. t ip bl n ry o ts ta ni pi fo ge c po xp y em th l ng ia r gi re r c e ians pi such a en atayer ne-oith ion. eff icien tial depend onirgthin wned stru entsdieon nera In de AalnyAsspr Port of Vir sures that . er Virgin plaud thpdr Ames shcis derstand that oreust in thhe etopodtenth e rGten orn nectce on urss t,d they wer of theudbigg at e ary, n thnceye op he Ge righ the fort is ru er is ainly un stefgafic eal for ap he oivers m an all V ld certic some inte st in retct erdon ce ofan tio la thte estSATceURDAY ncee,poaFEBRU t 2’t 013 rt ’s receA th ren r the co nedco nm complete, anthe return ttocall po o9, to maximize orly ec isu maiaTh RY rtu ould take nt rt nakfainctg, a bid wou pdeepesdt port indethpeendI onre tto seek rpetarfin reorts, di ly an rtIHappns om I peprfo fo nsrriden po st t nl . to r te y at pp y e n t er rm e in ia in e su no m in p e an d Vi r g: e t rt in h ce rg am r rn k a t lth. ed Vom cut in th inia and to monwea g u e Replacpt solid fountda troubles A pr c the e po desi ould an t ou c e e ir on th a T of t s th in he y d h V at to R ir e ol t le oa gi e e. th f cu t to be go th op id lle ni cr r h ds n o rr s fr e ve t ci a. ra ve t easilm te jobs. w pornne quasi- hu mental no n for such a ivate operator woent taxpayea must esire y us tiota ents gedde atrae mon st bu e Pstoatrew An hbs lys atondan unpaaking a bid -owned e inthte onme. be ndable. sh si sses - assinu eepuleth 3,00 0tjo improvem the A ctte s W frWom ssrsesfro un9,de2rs013 led nprodfit VIT,vewh sures that uld concentrer entbu direqeua lleeth oulden e popth directly, 34 W .l D URD m tlasnt, ic ke som A gu of. Succdesmsfon , on buI sLin mrSRY Y PFEBR R E UA So ilt sre the e port isate, as it stru oCf ye returning th Poertthof Oar M sh AY, ro mich nanrtadreinathto tth. is pies SAT poerlyator T ve fu mpetitors. he op o rsibpo uld tea fact pthoatrt sm ird upidp-Aort e overeits op co im n n tio -b ow s P le. , a o us e hi rt ns nt shoom gh c n to max e ’s m va c t es re h its owne Coast, with thrs le id isstsayto t profru the onr.st t u ce a rens e that th t the nt S agtewid . re t co e d a nt pe tu Ea n te rn h va rf . st a fr t a or to ad a er e to mance trou private, for-erato a r company bs sta Virginia an its to qu tuern nett, poto thou evoleve .asg: Rep aou s comes given of h ntic r.sin rt au bles Del. levTh uc lace opthpr ontch of it compaany re jo su m d it th ffe r t to create or 0 en la .C O M di S e My focu S t ity be A go E be 0 t R y no P AP p Ch s ’s Y pr e A ve L en I is ,0 A ea 20 ha M ris D iv t rn . rc m a W s 3 sily -y atJoeneop WatW id as Virgirniits co mental nonp Terminals. oper r rs s, er uneade deta toassi- And a Su al to is pu ator ately 90 pe irePo e qu ffolk tion proces tly, 3V4irginia M’s high-te wou net. APm atic’s m Repu fitnotVhIT hbl ld blcoicancn,entr vohilvch an , ew approxim s a dero input nwta . shshinou g aldse ge ove the port in It’em inhdthe c rt of mber The bid evaleua facthte tpu bers fromch terminal ndable difPofertr-esmasounu al ug ismop riesre o ate, c ro t a po n th u , en of bu on se v el leg d ilt is d th av to th lu in isl h d ov by a turninatgive re edies n d-bu a thin mpr nyear showth-at would affec einedu versible. will strengnthoen e ia arhiti region’s relo ir exports tr g hastty, an okent on s eebth t isath ny athm oom ed for eim highest prof . We are si Virth stisrybr ng-term m its ownetrsth. e port and ththe m Coa sswho , its e port ’s is This ne str,ow cthith assiestr on Roads le system mctes tofr d. of our compa easEwe uckers tposit i y casope w ar n as er p ke of e th e t , ev e t t e a bi ha n in m ds re u in pr s in Hampt nd at de e p to iv io u ll n lin pe th ed ion ite v de t c take over op as caT nd g he e,pltyfo limcent roni volv sion po sharrotkite initially men ’s isin alu maissu rtficau ippi prng siat iedpsig ginia of co liTh ations. that is in My fomanaging th it mcopamnipa is b, bu thco chhas .cIt r rrim orm uacbed el ChriserJo pPM bidrt evad foer an 90e per pl One woD esn.ny company 20 stity rt of Virbeliever thTehe po yst te s. ’s ed op -y Teerer re ess of s o It al ttbeereA e s, fromximately an uld .pr ea as cc ne us P es m on r e su so to le s, m oc in at in d de e ev o d ha a ir d g e al pr m n co al h en Su s pp h is Last an s. t in a fo spring’ ry e A t e ened tu torninis push -t proposal by r such the govern ffolk Repub st PM ited e wi’sth hithgh ng Th ad ppro milling hrougFuhrthermore, aI lumb as inconsoistehnt anloge or fromtrend lic as, ty, facilitItat’ses unsolic t the wcidTrust of the fore g over inpo ado -two astic athchede is ecbaon grtarever ec hortation that iconassetAPMa drsTransp ea land to travel tar rsht the simeply alabop se seom manage rbinging trend mentnt and econ rm es isneFund aof ion tPo rtwn reverse to fPort inical smtuou opri adistu om als to run rn le po othe e aredata citesdpwect to lity of th and a inoff erse lewi of Termin dd by . Itw ation geme gi a’sse luTran ports in isl mana din m geill rtsproducts eoadpe ste slthrea by im eth ativ sdisturb dagi Portleg , is t vaVirgini cporta rast mni s. rfW sustainabi puAuthor atth has cedisthat tio eclaare erth ara’sitimos th at been la xr.pOour ive shed eity ormance ery aom secretarityed. c Fund using ns ou ososet e p w for e u Trust capital , ap sp t te ofremed re th ou e t lea th s project tion be the pr or ng r to e on s ld m ly an ov ta due of R in losses. gi ps Trans th lu ng ’s tio af nu al r on And ir du perha p v fr en , fe perhaps n b ng-ter al financia-t tits APM V m content to e by st m n due lo ts r ious sal no ring to t rt ou ry losses. And andctitth the th th debate li Se of e propo threat en s e tu al to , over e po e e cr cts m icited wo in how ci rv u ac e t p po ex et proje and unsol m po al th se uf whethe Co ul e an l e ar g’s h g tr rt capit m m d co r d e lo s m rt w sprin t y an for nn a — uc fin n to e ss go pr money e an d of s road ’sprivatiz m m ni d esusing unce ke that oh ’s vern h a the d been ar Seoff lo anHda could ue Lasteauvgh gi lv anno t n has rt ib rs th be d ir ke an in of th ority e, reroute to o itth ority a at or , V po e ha e Auth d an id nt t n, g Auth e as bi to v ic t e Co Port e fro po a w in co ds an the es w in h ndli ld th nn in on, de m in m set si th d d ation, el t , W to tizati tio au li at others cited gt the portsl as ca pebebnd oben,rerou fir t anstate should Port priva wor the ghto ta ou e nia’s asto run a Author inov n is n n road Virgi ity ke to ab g th n announ o w ch en bu turn n te to t ted bo e te a c n over su no t a a t inals control ar e sh on er is tio wi it rr ntced re Term m of h es d l-k it as si the s could ta ip th tw geme lat t ie in at op m I improv that il caus picVi mana out cain st or n d mone em y aca wel ion iti ement le itsat m er c nclu ng up t st een thein essentia si y o sp co al in be b sh o — e co gn shake l to bu n ly fa an to rs fo the ip us co io her on ry , ports’ d a fr r a tr ifi e he ns e, t whet success m Janua e co ni lu , n s and T p as . en . pa r nc plans s . plans gi a a how o . nt in M sdespe oir most to ern. ’ success.

January ni ndargeinover s Bu m v h O cD T a V to es e lenssg co shake state’s o ally t t debat ne m he ia on up c JL . ck ports st c its t w ob r manage valuabl ntiou the ne o AR s. re s w to f Po e gl e ed ment conte asset so re tial li r ll ou ly e r o to It o in rt d .

C al h essen private as di p er nt il an n ld share be t m e re e al party. d et on m veme po Autholor ar VIT to mark And prev ingis fo ry over contr lum nean haporta increase ach ’saddress edetFerur seffort of coimpro ent inth20 tturn pp orttedothstate’ ityiathe effor indciing an t toincreas esu transpo positlaionndwto m rt seemsarpr at thse so in restry iaso en atoathcatitdthe desemrthe edinJoan tion Odhi suffe in cdrfic e 11 eithnstate’s go. vernor fr po n. Franekmarket trans vde sineref re w state rtinal ien ch grtation irgfunding thee w cdean rn dg toSeov t anadl dr fro V ssing e ivatize the pooducts e ge th tio addre Vstir tabhn.eshoul ta Virgintu And as unsp of thopeerfoators ofy thoef thpr . uproblem o is clining or agneshare. suba manan party srtain antic telly orrathe eurto ia Bein ain cia ostm r of s sooner se do port Wop asset coent fr rather W later nciato afinpriva ble e ntrtan w le. ach are er than prfor hard facts.r perforFor than innt aai ive rec later s soone on it inals, slack tfro onvalua sdmost n with the inabilrm a r n om er tr fectm mfundi state’ n d fi u careful o ef a er ems a ns al tw h tic ke in c at probl so starters with af s c n o O cl ng or , fic ’s io begu ge o sh pu u ll w t of le by d rd transpa u m c s ip onne sh ne r. r Te gi a rency , to ing a plan o ra was ng for withou Gov. n r. nor. backedHad anedhas an t ash atheivMcD be out rega export o Thrt Transpo pifi ogover espu I have been lintio tes apitop attop ns susiot nal apriority tad es by sl ,enleer aputprnell uthw the -dfor he com. Lawma , oped st-been ot the governo tathatejuiost tproblem Ev So ity ov ca M rethe in prior g Had in devel tio t n aeal u nu al ge d dlumwith Gov. n So g and e a Internat d McDon rs s u n , b en e n n in an io te ni need k an to ha has o s w begun r p a h s g ca an gi a fin s state’ d with b e th ia u H ir th no was in lo a Se d en kers careful d it of lu a cy an t am V felt at d e e at w w theylack cret be paren revie lawmak pton Row ha been ou bette nchad left th Con len V artrans of weearstarte port, lsdolosig y fal io apir rt sses prrohib nanth eres,go nedthco argt.in APM t areciaal For aten acco Johinetrs,ceoLe ugouhtghonTh anmumfaodc oducotsrldwide, an tove ks I have out aofpa ins a ld an bead rern atntC or oroftEv mightand review raon T qu argiesla d Se ctsna frVI rs, the ire left eAu state’s ars om bidde s.gith They are m w th beenan needs wi fore the process hbe ia for thlight the recent wee a, private criterof fir Twe .,sir Other einethey felt ed thd niat m stsatpe be inthgeand an r pr w hton tran e be auof rtiv inug date po thorw ckalvileprobl ies hadiootdeal dihad cite in bo e tecompan V But . us for years. ew analy t an the au ityith reRe ardevelop nca port must Coem. comp theat thebe d mare tr as toou deal analyze orfo stak iortmust msmLawm twedee lar tio dd O ehadakers the en dr ev retstca t reCnhave ity -kounowntimely. However, in see and hear that a re inerzed But r evalu ember light n iss a ring w to of ll ns p a ru t ve anies criteria ion de su today w ct r hi comp for al ion te an bidders en th us ur st th p o posit e priva , that we to ru e e n e, or might might p the co Othe in W e an ck be m ou ss. as M in adon’t sAtaisthe . a proce V ncealth d be thio better ein iritygi nfor the chance eof ern. overef monw that lyusde aJL coson atbegh ov out cD sun such Com eabunkwhat mnow, theonweal er d in galobally relieved to mea ient. flexible for AP id ttrwhat ene aalyPo isBu twanted best mll ca rts pofosit and e po rm ordi Comm M stand edesuch RkeC pa t fic ewed in aebest anni rt iv ’s term rtpoco Astoit evaluat s es ed th t over at s re d shippe e an e ot sals. the at r c A e position po he chanc propo ou er an a Jo e rt e ut w h ri r in today gh th rt V sis ne op .

20 b ho want po t h h wo ff al enou va contrac ed IT ed a s t t have s . have re e t e ri rd t e iv t In and c-priv don’t u rt thly migh ty long well s,term, compar andwhat c current lea in gi of that is ate 11 , th simp sens the e. lum st asit faieni d las e and thSeopo operato tranwe Sethe tize —thas Thatknow ef tor,t we Th dir ffe are rece long fic n. ideal term, rVJL eofaas spdon’t tor, wethde simply dand Po Franpubli r. To VIT ntas datninwhet ntekopera hin also tatio . suan atio legislatorsoperatoersnot willing to pjuriv frr om AR curre esexact the r contr s Virpr an s al kTheW op ate dreot drterasfin secrenough fort ewell relyadity isstands cor ls. her ho —C ofrtproposa As act po et nt manne he cl de bl agne atehave loin giocni e wealth ar minals, state Virgini thosre em ar t su in r aestw now, an Interna evalu probl yitrtmake h to we seun cilitating ith m a pr tional e n on ai un ci don’t t a sy fa Termin as op g a r matio s like. g al na de po di ste als t B infor on look a (VIT) p ly co lie sm d r ea m ou — — in r en wa woul ) re nt e. and ef ficie on inform at an ch nt e au ab ts (VIT y; a t ation ica ai geme ve fr tle ss inals to wevaluatupe the r t valuable withou our busine Virgi ne are also puthe that ther of of n lly om w com orexactly d nia lie Term a tharran e e e whethe r nal ity th re for be h much r r natio nia e it tr T pl tw e d ’s makes e we Inter a Virgi g ac af fig b e as bo w of o know re rt in u fic e Port l ur k os ar d sh g ho e po o r what m ar d es a e an out but VIT etoin ldingip sh hasthe w topi ba is ed publicper ingprivate been onideal ng wthoe been dder.they le our th hanavdbecaus metho Thahad n sethtiesense usst priva a plan, e tie hin omers,k ia, es ward ed withot coPort stsqueeze workse, edoout nd est bifelt t ju vean operations nawtio zed sense mlin in akaBefor e thck squee pa Ebecau logy r tocu -Virgini up entur ing defec g sde Ibeen lyrby the at not ifi sfor any. ou hethrtizati succ ofa resingl en ir veecomp ca I eshsavofe ueeziniag Inidte M they et had spEon dby aaeefo rgle feltsu tio tive aeto eha fo ymon Soproce togtheahigh arrange tethe rs ouktcnom nor y withny was ment satisfy uthlike. w ntr an ss daertin idea ae litatV th and the APM look sthno sVitarg rth t pp Ham dusLa The edoov biddi haevsib s.ng nwe problem baseline th w rnm become ionarr would coha ethe at t Vsqirgin port emost react tum pton fahlle the uldn atbecom baselin ou e—la wak d it’tsiyco ee in had Ce -thalf-c the grow mer asset half-ce W introduced The terms rines cthad n ap wm t ble terms ntury ak e oab s Roads g gn . valua with siemaplcyco APM ia’ a t d er nt ar a in single ar , s is ed c c its re ro s, compan n Jo t in r be off t. ey e s’ l. u y. . a r Before to sells a co e th b nia n d e IT su un is rt nt ar not r A Th Virgi r, re o u withtheprivatiz V ison. pport.t ation ssengin as p from the pohey a htivor derpOne ra PM e thebeeforeom qu Laeg r lls ed for ct e outse m v compar p te ir liken per ity bi er se, e h is a e ator but th from fo d fo un that One w t la of re r legisl rm V the legislat w r r that of m ith n co po jeo e es r IT n. likened o in n m u VI c m rt p e be ariso pa g th the io paau co o T, than m o e mic nyth Review Com srd forngcompth r econo As udoitf andanVirgini rt oneoff pofew do thor its ia prof it years. T eeizi d h rtirau e d the port most A nu atity es ivateiz valuabl ofethe in hastobidding asset s to tile th lyat H emalpainosells gmajo reaction or bure sugg VIT. ary afurtu istra iltstth itycontr to osm ioecn—on g that ent the prim dollar of pof process process t— at ad V we ev sion rue ct tivert ov wasis defectiv atru re de for retakeoecver” er takeove tu po oferactua s eaou ss r”“host ur iticone rteVirgi thuto VIT. poleesrstover sof tofew or inan an extra peis om on far moree o eatv. eiddto apr“hostile headlly behas ck todnia io t of ritproce ta om the o ic ensurthinat wouldpeprdevininga notw or in the fu li r s state th e gh y ke major e the be P of a en e s econom ef of th ly r ju Port co gi ov v ic o engines fic the e 3 tw de an in ne H m er that h ating 1 h amptonng een tion bu ed ot hodwthte port au from e more Oper in ie nt.outset. it is today, the A ea inman sis t analy in e en oPM Tand 5n, t2’s evud t 0valua li Roto ads nk termVI anwe pr yenden liIn erscontrol theindep heority alysh. mar om happen , the por andPort or industry. f lexible mon oping r or in d rtshfrip be.we torsco need t dcomp ks a specs for a uliaity al actually etethe tw e— is5,ex d than devel Auth brrhas ore leil bettelicate ssth w sesan asthe cea13 thstate nia T 20 th ed Virgi ss at w r appr skin in anT dive eeb e niswhen edtedanpo ,, eF legislahe in last tran teeeak. ’tdhave nover y y , an sds doesn aralt a oach loca ha arsp Even fic t pr ,who staw ien party the befusd sd de or to gprot To VI Virginia needs JL cie g AEven outsi ein a critical pu a Port ltRhCVirgini rsta ocand an bids. le ssemblTywhen Fdent by s ru urset A Author e a tio ssesrearceeiv u , es in b ity lettin r. lik e it T an t ec ne need o s n ay a e e m ely bids, an ay si a tin al indepen d w se r n other al highw t re lu bu g it re to cr a n ot ex valuatio bl accep n er ue ad a d s po rt ic et n he o il ist T and woul shouldn’tr repruop y is un itsy cuen der. 45 t. Portback ingasse the ssmore mm rgame ostrtvdother that arsy Operat port au ary expo diosm stbids, announ id of Virgini ecededit would we retlyma . ts of . But analysi on emat this r far uta facGen bfram ade munce isproce oqu way ire raccept ; and a step uanno wh esitict al of the Our prim set ority take ly e by to th olesdoesn’t anesdays outside hburg, an effdicien tisldfy the ale chre party chalalyb, o fromhthee JopinotrtLegisclativantl ’s board from aho who ilee ofig acininth ssibly hightime have impo anpl eshort mitiuon e the gskin in to ge whth es compli of wherfor cated s dd e and Lync andbusinessesarine aA sisen dwersals an analy an s be ethe rtof t by ibly imposs dthm erate ha ing to on ing the com e VIT cpropo specs shortdanur a delibdevelop u r usid time respo ly rgo than et frame e w d d ed unde ative ho of w ar 45 te v in Hillsvill o days and altern do or as of s d to es r o APM pa game. s ki t th lo ission n the h qu su ny nga gy subm at both re uc . e for in ethe id io d about pp enletting m re g c t em with T n or d to make sp c d a probl I an r g neede as t her in r fo is on u highwa u Anot V z e ou r s y what rt t in and si lex m e and p tc bl e for po comp on e bids. submis y stand om o e b ly sion u ea ths.Virginia ess ports for wouldLaw a highl needs be thproposa reprove coulrgan at nVto on the concerne wth and lsni port on ative what that of theSecretary e itJPMo dn’tbids that such a contract irgi is ro isssimpwere ofof alterna out sq ls has n co ased busin b m il why I am incre a io ak a’s nt b o the is t re er r to s take t a captu e a s’ l. we hi step g r r tion back sure T iz what o from porta . a support this un t has m that proven process de and berpaInitia ber to the ports with an entityco deal. rivinaTrans Norfolk x tuAnothe plly, fo the p jeopA ol of the they forwide e. The repoup contrboth problem u ng rrelea e rm lock nzi Vning mtpany rtwith t from the terhhighly gcomple IT, ofththe serthe tConn and underg is o sure e fueven athdeliber do esis t from hdn’t nity as deal.ardi attoharesul venfu esthestsAPM East Coas analysi aughton Initially s of at where , th reeSean the sate ilt ortation mgroun pTransp in tan analy l intere inisan suother ercia Secreta If that r woul ryd onad comm gg JPMorg 2014. oec has trdsatbids f profi es uld th commu tu o is t that o Canalbuafter iv e w re such the ma e a po o contrac r Pana w ec bid, pr t would rt n did a ov on t ntees os who ports ll er a in guara stand pe l om g those on of headare be tontizati and s ’t even release hrity ofghton whatmina Sean tConnau omthe ic contractua name on do in is th no needed n n ic to en e priva wouldn make o a e There that . gi r tion ti p ports tw an ne H t ” p am ee deter d using x upecontrol n Vmic “confth ptontheRinfor me tions is of the ports with leads to the it is todaid n might be lock ions ’tm port au IT decis non an e that om ha did oadsmatio econo theentity y,tibusines prsure co capture ss an denport thient ther increas bly other udenwe mmon names opera to addre rmed an ority rtthose arks d ntly, suffic ow of il’tethe s that ina g on bid,publi an dn pof thA sethm on c. porti theCurre is ata eafrlth.who that dita ground d be only or es sthe epr all sid exce has r comme y. ile to t of . tt ng rcial y r er interest ss at seeki d b t .S s any re at iv ap other s . ng the comp in t e, te East U a l to u Coast by .S di ef u a shoul t a an si made U oa d is ficiencthat c sure stateof thed r led by JPMo t be t rg to theot d T es priate result , tob pr by in from nthen tit, the rg e IFF wideni a he iesmigh ach enertium ng la cr might iti appro rg n,pursu tivrgan likcontrac an “confus ec obu s are lo that the information bidde ing” hcaees ga elprofit tion. laou lla y exstual letiar. pu orJse ng conso T t opera aG entire bl are Mdas Pt.M enm ar is be s an icn isacros for a JP shports. t.enguaran em t Panam ea dT ncofe ctime Legis rs tees cl Bu mize er.ythat enA an sinesse plent , tly, lythe public. nCurren t ldn’There maxino do r ce a t a Canal u e allow y T after and th in fe en r t to b e ll 2014.

M bids e re o at er s If a t P r or seek e J r qu ef analysis r a aj p o M nts, pr ir e w the o m dlat rg only sade its eivwed io treme P ns tLLC. h p other requi it n a isitio d es it sufficie e x A e ho outpu Acqu n nt um e d to ad address le m a minim d r the m sa y econom o with t , le r ’s ce ic A s jo Even decisio IT g mproce fr a ach edecis ld re ns ss.

V tohthoro r leads t or an h m u the ugh r rg w determ it im IT IT ge b o bidder ination r w la V e ion is a V that h a in p in consort p privatiz tual th c e ium ess ation al th led p of r ’s busin d t,acould the es rte make epetu wit rl that Ou chJPMorgan IFF tedErric Kulisby ealivmear any ed Po made ccomp d Lyn by esBy compan d colinc thebereW d ctoonce t to ofof ess dyoth seeking ngs, dealimight om usiness Acquis licite all or a eportion fr citgh th e eanw requLLC. IT of Potort busin the Vize t, nu ve operati ville an soport profit tmbly an unso e able On top of these backroom maxim ons rerct hdisbe nth a t itions woul u potentially th ig ri ad u by h as b r g defle Asse n lm m o e c ral to d in a a ny . b Gene T e u profits n the ar icting , er e a pa across r M a confl W while he an d m th by m P in Hills operati A eom licate ic d ar Mean r inbill on. simil uentire s an approp been comp ring fo, rthen nst form om nielsew alsthat to meet T spapursuit erned a publ frco sch sseahas perhaps the st m inadls liproce — resetvecu lariate inpend here ingstate a’s port a yrg alM rmwoul dg te pthe kers at ged with AP ssion ur ne Even teshould gi m conc y blam irminimu wise atoel appro d dunsol ste-vesow prop folk output oforthe Er ic Ku llrepor —os ean 28 sp la at stomerer.contr ments,oua rg party theinvalue panrequi indgconce ts on en w rar seek bids on the aport sthbit st icited odm anoth g inbN allow thntime why I a st cofurequire cV On top B g ufor plenty hebo ents te-o ploand reme ouof ofy these backro al takin of is press actin c from eroprohi ta sm rg or ia aand ev om state at th li s ex dealing rt is p y the flawe la is er s, the h e ture da Po o u compan op ’s struc to nt p on y nia.

T ty could s, th m r curre Virgi make .

Mand whet aAuthori urgedby Virginou u the ll. the futur rtuni N s rs aew decisio atrtthe orrtts teinthe Port pety loss ofrtoppo sher ine a busines hi hepropo sntoat othoroug ld tinglik po opera arttesals sth process has been compli rprocess se, toPpo s the ports lk t ofin Po nd ne knie.arAPM w resul r Norfolk r althat Noew inte N la a w fo p p o os e cated in e r re pa x by p in “I p conflic pictu o gi op e the e ting s s ir pr to N paint a th th V .9 deflect t d 8 ni potention f r Comllmonw n of Virginia, 2e soundeer allyof profitab giip th totw irsh tola$3 leeebusines poThe dnot ealth s thaNway , Npleus toinreject yged w n V aror lkVirgi sg tioum nin ted keed be $3. reports on the ll operaap liat preciautild v port nia. on and theion in value eral siebeing coons of is ythe yanomana t inriaorfoin tnW bette aare concess r p$3 poorl bemaar mdm fo elsewhe dritaionb lu.1s isbit-the co there parmay definelu liluoentoto on geemeet ymain perhaps cultivwled ilparty t re uth oy ackno br va es ,Genera Ro prope dsimilar ge Meanw en We Aspoten ls pr th in irports beo lkoutsi tains der, treal aVIT stmben “Iha— s w hile, Vnc rontN f to ae an foal 3.1ently the als anVirgi eromrfull not Fthan osve r o v and whether the M $ e ne T while in in l Assemb n p P tial, t th m e o would current r re re n n M e r er be structu nia’s ia on o e tu tu P fo T their p is to s re flawed A d l ti uc uc tw in grow uniqu or e l t t se ffe tr e tr require and na tecontrac rthis iaioopera g a ey, for c di — almwise binctparty ba t table arTwo mofments opera another jethriv ecto fr at oyon t-phi inth infrreas rn terms ion,approve nt llto st e to neting tea dditing rtiroulable. ppterof e Vir accep co th aIn and eas soprofit ing n t Rm Wem ivisaarran pastructu s bi ke the o n by isnthe sound. APMthpaints VIT. pendin s lt r d tion ta o g r with bill re dthe u nt opera that c n rs n F e its would le st c he geme to a picture o n ne T that nt a . e on n ve io d ports ow ls curre fr ecs tht g inLaaog lie abeVirgini cofe upand in issm of JPaMlsorga is infr aastreasset btiethe in ingen of opportu enhouse e to and a, highinlig rprohibi m wMcD ansf.er tm n, bdble ernity sresultin h sloss ed at commmanage t theliovalua veht state are being poorly from onenety,teunsolic arT sda.ifthfeat rmininaloited nersh althTGov. ncllipt clean ago, dinand onrt giuni ha tish reAPM not ratipo ermrt operate on ci tiisonne fitaking ntly efm this minsvestlsbmilent,uan ofs lizing ofraV rnyears realad in teou deal teboard fer2010 w rmi oatltanta the ncs tu pfr sidticon sirtrou PM th ority’ reaso In hiogh e Po eularssproposa aednsin po Auth riveeis ntr clhus ic v Ae majo n, Port e fr op o in tr e the in the rt er future f to their full A ced y a li in to e pa operate od o repla it e T potenti e d the th and as m Port . b al, un in k it im while of n le s s that VIT m , it net te a c may t ise it mainta thos om ta e m tion a ins IT of ie ti fr t, unan We nistra ch co w V acknow n y t ent ic is admi th hi th , d ll to ledge e effici b g w there of onne ff t dy th an more , s McD m o g e a be n late the a d ud ip better tm th F, al n ry to L a ip stimu o s Commonweal le thrivingJPand ti inon pt to ic EEVirgini e the leinadan erpsh rg a.rtin dust ighlighatmilli veou The Rof sm oprofitab nRsh Virgini R its operation is rt th g th oattem thly M tieway ong inia inrPo seda,in 2 n,arhs.igh ff rere)laJo am $35 le. hds t pr iv iz erye i,cula abou as the ur pe to aoperate ogrow anak, and d freeinup forod20 Ble t hfrom woul Virgini rating iv a’seDports sO in orboplo artttinot w,ar chhe itto , arm oarf isen ic luer itr,se m ts an theostf at g , Cthan wh is the proper in (Chief O party ofolVdeirrsg to etoinfocst ,” Vou of define sition th thD, eu eR EEF o u t eh rtuddtoy,outside R th at m y IT r o p ak po . st ar o it p the st s m current im o P n m r arrange te f nt a o u ts s t. s t’s ment R e ta e o r ue with VIT. fr u se m arr) oas Po foraoperati ip 0 ythis unique alm Josbeuraccepta ateis su rei,albleesinterms continueadersh nstim A major reasonththe APM ng ed g,olott e Two forbs2eq nd com nadeal er of W rutsnche B iz a ic u to e ag pr to tantaliz te u ff y t le ing an m e rs s th d years ta O tr m ia fe o ago, ng s de e D s l Gov. ill ti of g McDon u g ra on e thne cleaned alm thfor compeatirng resp to in Whouse and blzicinmee e ge rceati s valuabl e io m of asset. ng ind dishe to the McDonnell al ntner ugofCfiocirb penell oIT preitivpuati n fPort eqasuent tiOon sld th th d(Cst port itat n amVostration and ngreplace tate r, RaREsEuFbsw r,d” toDVboard hriiebu the riseadmini wardthat Author ity’s PA toar rt’uts ivim e solic msaitele ier ers t rrtea. lInesDecdembe heldemillion e-fo to about taki ivate di T rs bo would free up aabout lm nannc totium’s fiti a , estter ck the exaec le u ., ba $35 a o rg W n Jr ed g po in h from u f e, ti e pr fe e b e id o in n a d oy an k s or th attemp sa er o n e d witohff EEF tc to stimulaA m errM efficien th asset. ep of having sta to gate pothe consfor comnepre gmore nrtahu resas by Mtilarliitaime icia th mate st aW ed ad or l ta d rt ls ni s ac re N a g RR in te n gi pa r d pl n d ir o en e re r, r re an e V ti ch ti n ed e ti e e ff a e hi te iz t pr unprec citn, w en em e an soorliga VIT o debpenduen blierc mtoe stth ick g prib ont ofcth esidtien Decin uen opereat me’s fin thewphe ailed to ., executibyveJPM Teerpmoin th king ales vidce rt.als,In an rtitsch ldor istr iatiuon oeu -m s company h e . n d r o D r e c ta a Jr th by rt in tt o er , e t d oc m le ne e ouional Terprivate Asss Mah oye to view rtnere erbican po mA dorasowth ritim k abat ur M AP aid in a y Arth cohntpaianer dep d The V The Hampton Roads Maritime Association the Maand wgediniafor ofhic inal gatae-owneThe repoplaerceatin fegiednibaacInteorn ge, w b ipperadvocated term vinst ar asealVloir n a d a w ch . t a h herVir ty esin e rg th f it th it r ci r o rg a of ti w n o la d g be a pr Sh en p M n ican ent of irthm its auth Narine Aam toy JP to ste nonls,e ree m Bank, b id d conf Assembly allocated entith mmin, ath Association was awarded the

by D ertu ed),entethde aatte maannages k vicer raielsan pGeneral Toa d lk ecIT seneebu em sti nsahan er rd N ioM ancdVirginia ov e w at eth unpr(V o to to er th e r ou n, r e op th r . ai ny p sm e to n o rt Sp pa th tio rt of view operator inal opera , ePo com lkh ny s int Noorrfow e po llls Associafor e of c nea$220,000 onin to in President’s “E Star” one fire pump rm comptearm d ss port terme. years, th ene alpor TecD in ow in charg m, the al M st fewportable ll . oBnob en a ic pa . ov n e y op a e s G rv b d ti a PA it th se e ic s. of a c V r r w n el n el ew to e ti r ve “O rt iaN Inte Am Newpo Noneatu henipapemrod rminit ioen.n vess Bank, auatth tatitere-ow the en Sfirefighting d by ve in haasn be g11 fosrm anitdy-ow Award for export service by the equipment, taand foelkric replacedrofit ersns abou ns or rthinee additional Norm cognfiof protecting ained, tobyo withinVir20th d in nc e ashnar operisatiomraj thse ofmca od thArougeh-mth e canusoen-p inmSanpag of nco il rg m r s a s, f tu e lo o to g oa si a n t a ), N nd r in a be e fu e e Porteraattotal opt tetopo U.S. Department of Commerce. the of two pumps.

(VITboard thaor t manace inPoterrm th ormten mourethnggiving the.ll Wth , gh ts utyaeathrsou e do not op sts witho sinvepst ny’s perf m , ial st part ervice. ies ony nof wfe odo pennanesM rfo teerepast few compo Dar ml o d lkfinanc Noan Mcrcet orga ven.ssel s ago both partyw in r owenr inth e itahmwoho b ut d JP w . o ou ls hp n B rs se a e A ug o . he s P th in ro ti v ot hi s v a o months oon, Ved rritho-ow of s been el that keep fo m G “O jo ct r s e . termth a ht al pa r m s fo ug os m ai ti im w in cl na n e op e w T g pr hathis modring of e ateedly utwel an ma ort CNon onc,eha taile thl e th sionerfo repe r d48 to s th fon d de m d thise po rt fu ss.lkIt isth NewSepan rotectin itteN sha atu eptila d Voirngi sisabnoot rgr o buN ent e w ervateestm h ing.e ate in silos, p ughsutbm 1 orrta to wouldo opin ould end ouprgov 201sp c cenirnabehis nd ahe poth of rim c ot at f rt r o f st o ey rt in tr e Po o e th th p e e th n o s a th s, g rm ifting that ecau d is efain d whyan. not llinte ith e do ars,a anM arotututilize wm rg e whileagsh o bo nc titors. cial strength. We do veinpo Wal boarmdanbagredforan ressts mam whothme w50thyeeith JgrPea teor reveonu fin tert edh as pe finan nthsthe stpatreopto eow izit of “Oof uth o sw s pe st co sup w rgn mfrom r y p co e r e re e th ta d r port’ k o o e en n fo d sk r t f a w be e 19 Virginia Maritime Association c a ri ul EasthCpoa o Tt kf se ered Norfolkimha l th ut id pas ct rt. Wise ar des.tail dean p dator investmen bor meoth e te e n,sehriisouslydlycocns im er it th la to th op throug nnauughto m it po th t te of a is u en ct r to repeatePA, but forell most efin fici ute much from private-ses ess.anItd attrgib ta uld ope es s ws scces n Casok yoon, hVaIT o s lv d V is not ha u e w vo b . an th d Sea“I re y s te e y in fit h em g the inti orta andthw er our su improv e have bene ginia zes, th ge what sition prm ti

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Editorial: Selling out our po rts s our port Editorial: Selling out

prtort . a V o o p t . sitiitoionnto Va o s p o p p p o e erssvvooiicc h t r o e , t h r t a o m l Wa rt, Waplrmivaataiztaiotinon privatiz

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100 years

1993

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PUBLIC OR PRIVATE: Making a Difficult Decision “There are no secrets in the maritime industry.” That’s what Art W. Moye, Jr. says about rumors of privatizing local port operations that were circulating in early 2012. Moye served as executive vice president of the Virginia Maritime Association from 2004 to 2018.

“But it really didn’t get our attention until we heard major investment groups were getting involved.” Then what began as whispers on the wind became one of the largest issues the VMA has faced.

A proposal to privately operate the stateowned and operated terminals, overseen by the Virginia Port Authority, was coming.

Under guidelines for Virginia’s Public-Private Transportation Act, known as PPTA, any organization could make an unsolicited offer to purchase or run a transportation-related service the Commonwealth owned. Virginia had just come out of the Great Recession with an extremely tight budget and pressing needs. The timing was good for the state to receive a large financial offer from such a suitor.

1999 The port, marking a record growth of over 400 percent since port unification in 1982, handled over 11.8 million tons of general cargo, this year.

Art W. Moye, Jr.

2001 The Hampton Roads Maritime Association established the Virginia Intermodal Mediation Committee, a first-in-the-nation mediation process to resolve disputes arising when containers and chassis were interchanged between truckers, ship lines, and marine terminals.

The Voice of Port Industries since 1920

20

The 50-page solicitation arrived May 23, 2012 from APM

VIT had been performing well. During its three-decade

Terminals, the operator of APM Terminal in Portsmouth

tenure as The Port’s operator, container volume had grown

and the third largest terminal operator in the world at the

700 percent. Not surprisingly, it wasn’t spared the effects of

time. The press release announcing the proposal described

the Great Recession, with some recent losses as a result.

an offer “to operate all Port of Virginia facilities in Hampton

Still, VIT had strong and profitable long-term contracts with

Roads and related inland locations under a long-term

most of the top 20 global container lines. However, as a

concession agreement with the Virginia Port Authority.” In

publicly-run operation, its ongoing success depended on

addition, the state-of-the-art $540 million APM Terminal

regular large investments that the state was not always

in Portsmouth, which had recently been completed in

eager to make in a depressed economy.

2007, would be turned over to state ownership as part of a 50-year lease agreement. APM put the value of its offer at “between $3 billion to $4 billion” with much of the cash portion up front.

APM’s proposal was part of a larger trend. At the time, a number of states in the Northeast were contracting their port operations to private business. The offer was well received by Virginia Secretary of Transportation Sean Connaughton and strongly supported by the administration

The Virginia Port Authority manages the six publicly owned container terminals.

of Governor Robert McDonnell, which had recently replaced 11 of 12 board members of the Virginia Port Authority with

While the VMA weighed many important matters in its first

its patrons. The new VPA board acted fast, removing the

100 years, the issue of whether to support this privatization

VPA’s executive director, who had been strongly endorsed

effort “was the largest decision I was ever involved with,”

by the previous board, and replacing him with an interim

Moye said. Positions among the membership were strong on

leader. The Attorney General of Virginia determined the

both sides of the issue. The VMA also quickly started hearing

new VPA board could decide whether to accept APM’s

from those outside the organization.

privatization proposal. It seemed all the pieces were in place for a privatized port to become a reality.

“Immediately we began receiving pressure from interests on the two sides,” says David White, then the association’s vice

Under the PPTA rules then, once an offer was made,

president.” There were those telling us it was a done deal

additional proposals would be entertained. To keep Virginia

and it would be harmful to the association to interfere, and

International Terminals in public hands, VIT made an offer.

those who from day one wanted to oppose privatization. I

A number of other entities studied the opportunity and one

give Art Moye tremendous credit for holding firm that VMA

additional organization submitted a privatization proposal.

be very deliberative about reaching any position.”

2002

2004

The Association played a major role facilitating the implementation of additional security measures enacted after the terrorist attacks of September 11, 2001 with the least amount of disruption to commerce.

The HRMA conducted its inaugural annual International Trade Symposium, a widely recognized success addressing important industry topics & attracting industry leaders & shippers to the port. The VPA’s Hampton Roads Chassis Pool brought steamship lines into one common chassis pool, allowing truckers to use an HRCP chassis to move the container of any steamship line. HRCP also reduced the space taken up by chassis on marine terminals & served as a model program for ports across the U.S.

100 years

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Virginia Maritime Association

Virginia Secretary of Transportation Connaughton met with the VMA board of directors to go over the state’s stance. “One thing became clear,” Moye says. “Port privatization was a foregone conclusion set up by the transportation secretary. They expected a bidder to win.”

The VMA wasn’t comfortable with what seemed a predetermined outcome. VMA committees met on different aspects of privatization to conduct additional research and get a better understanding of the impact. A detailed survey of members was performed to examine how it would affect individual companies and their opinion on the plan.

It turned out most of the membership did not support the privatization proposals, and the VMA board voted to oppose privatizing. In the end, “there was one burning question that no one could answer,” says Moye. “Why sell what we perceived as likely the Commonwealth’s greatest asset when you didn’t know what it was worth?”

VMA weighed in at the Senate Finance Committee meeting in 2012.

VMA MEMBERSHIP SURVEY 2012

How would this change in terminal operations affect the Port’s shipping customers?

Generally speaking, are you for or against the proposed change in the operation of the state-owned terminals?

Once the VMA determined its position against privatization, it began what Moye describes as, “the process of us educating the industry… the state legislature and major players of the port outside the Hampton Roads area.”

2005

2006

Dredging of the harbor to 50 feet is completed, maintaining the Port’s position of offering the deepest water on the East Coast.

The Hampton Roads Maritime Association changed its name to the Virginia Maritime Association. The name was changed to more accurately reflect the organization’s role as the trade association for Virginia’s maritime industry and port related businesses statewide. The Association and the U.S. Army Corps of Engineers Norfolk District held the inaugural Hampton Roads Navigational Summit. With a vision of “Unrestricted Navigation for the Port of Hampton Roads” this stakeholders forum was established to prioritize navigational projects in the Port and build broader support to obtain the resources necessary to move them forward.

The Voice of Port Industries since 1920

22

The Virginia Maritime Association led an intensive effort to gain General Assembly and Virginia Port Authority board support for opposing privatization. Members met with legislators around the state. Letters from major shippers against the proposals were solicited and disseminated to VPA board members and state legislators. VMA leadership met with editorial boards of newspapers across Virginia to present the case against privatization and authored opinion pieces. All of this work resulted in numerous editorials and columns supportive of the VMA’s efforts, many raising questions about the real financial value of The Port. The VMA also urged privatization opponents to attend public hearings to make their feelings visible.

On March 26, 2013, a year after the process began, the Virginia Port Authority board of directors voted unanimously to end the privatization review process. The Daily Press newspaper quoted the

ON MARCH 26, 2013, A YEAR AFTER THE PROCESS BEGAN, THE VIRGINIA PORT AUTHORITY BOARD OF DIRECTORS VOTED

VPA board chairman William Fralin, Jr. as saying what the VMA had determined early on: “The offers … were competitive, but not compelling…

We felt there was significant upside in this port

unanimously

TO END THE PRIVATIZATION REVIEW PROCESS.

that wasn’t recognized in the offers.’”

The decision to oppose privatization yielded

Was the decision not to privatize the right

greater good, Moye says. “The need to build a

choice? “It was most definitely,” Moye says. “It

statewide VMA organization became clearer as

has given the Commonwealth the necessary

did awareness and the need to move the process

time to make improvements to compete and

which is the

grow the port. Now that efforts to dredge the

widening and deepening of the harbor to 55 feet.

harbor are underway, we question whether any

“The port industry saw how fragile our future could

of these positive events would have happened if

be if we don’t manage this asset carefully,” he says.

privatization had occurred.”

along for Wider, Deeper, Safer,”

®

2007

2010

APM Terminals Virginia, a subsidiary of Maersk, Inc., completed construction and opened a $450 million 575-acre technologically advanced marine terminal in Portsmouth nearly doubling the overall container handling capacity of the Port. The Association supported and the General Assembly approved a multi billion-dollar transportation plan for the state and authorized the establishment of a regional transportation authority in Hampton Roads.

The Craney Island Eastward Expansion, authorized in 2007 to extend the life of the dredge disposal area and for the future construction of a marine terminal, moved forward with the start of the first phase of constructing dikes and levees that will allow the area to be back filled with dredge material. Norfolk Southern’s Heartland Corridor Project was completed and in September carried its first double-stack train to Chicago.

By increasing the clearances of 28 tunnels and bridges Norfolk Southern used existing rail lines to handle increasing container volumes on double-stack trains and reduce transit times to the Midwest by one and one-half days.

100 years

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Virginia Maritime Association

Growing

BIGGER Going ,

DEEPER and WIDER

Under the cover of night, a 1200-foot-long vessel made

For centuries the 28-foot natural channel depth of the

its way into the port of Hampton Roads and a berth at

Chesapeake Bay served the port well. But as the 1900s

the Virginia International Gateway. It departed after

dawned, military vessels were being designed with

darkness fell the following evening. This muted visit

deeper drafts. On December 18, 1903, the Virginian-

by the Ultra Large Container Vessel, or ULCV, COSCO

Pilot newspaper published a large article about the

Development in May, 2017 heralded the newest

U.S. Secretary of War’s request for federal funding

era for the Hampton Roads port. It was the biggest

to survey the Hampton Roads port and desire to

commercial ship that had ever visited locally, and for

dredge to depths of 30 and 35 feet. The news was so

that matter, along the entire East Coast. Today and for

important locally that the paper’s breaking coverage

the future, accommodating these massive vessels by

that same day of the Wright Brothers’ first flight at Kitty

enlarging the channel is more urgent than ever. The

Hawk had to vie with it for space on the front page.

phrase “Wider, Deeper, Safer”

®

became the rallying

cry to make this vision a reality and retaining Hampton Roads’ stature as the East Coast’s deepest port.

Ultra large container vessels began calling Virginia in 2017 and the number of ULCV arrivals continues to increase.

2012 With VMA’s substantial participation, the emergence of an offshore wind industry advanced with the Bureau of Ocean Energy Management establishing a Wind Energy Area off Virginia’s coast.

2013 After an extensive 18-month review of proposals to privatize the operations of the state-owned terminals, the VPA Board of Commissioners demonstrated confidence in their operating model by deciding to implement organizational improvements and update its long-term strategy. The Virginia General Assembly passed a landmark transportation funding bill designed to raise an additional $880 million a year for road maintenance, highway construction and mass transit.

The Voice of Port Industries since 1920

24

Since the start of the Virginia Maritime

capability of the state, with Virginia Port

This dilemma and the need to further

Association two decades later, enlarging

Authority serving as the required non-

improve the channel weren’t unforeseen.

the channel has been an ongoing focus.

Federal sponsor. The 50 Foot Outbound

The VMA’s members and resources

Element was completed in 1989; the 50

helped win approvals and funding for that

Foot Anchorage in 1999; and 50 Foot

purpose in just about every decade since

Inbound Element in 2007.

the organization’s founding. J. J. Keever, executive vice president from 1991 – 2004, worked on the approval process in the late 1970’s early in his career with the organization. With the help of VMA members and other staff, a white paper was prepared on the importance of deepening the channel to 55 feet. “Virginia Governor John Dalton, Jack Mace, Richard Counselman, Jr., Parker Host and I spoke before Congress,” Keever says. A smaller group met with the White House to get its approval to deepen. They prevailed

The VMA knew one day ULCVs would be calling. “It wasn’t a situation where these ships are coming in ten years; let’s start this process. The ocean carriers had

Even before the first ULCV arrived in Hampton Roads, the VMA recognized the giant ships would change the port’s operating dynamics. It began working

begun putting these ships in service,” said Art W. Moye, Jr., executive vice president of the VMA when the first ULCVs arrived.

with the Coast Guard, Navy and others

“They were on the water conducting their

to develop ULCV Business Rules, setting

global operations.”

guidelines for managing ship traffic when channels needed to be restricted

With authorization for a 55-foot deep

to one direction due to a ULCV. Virginia’s

channel in hand since 1986, the issue was

rules were the first in the nation to be

obtaining funds for the work. According

developed and ports around the country

to David White, the successful effort to

subsequently adopted them.

secure expansion money originated in

and it was included in the federal Water

the VMA’s Terminal Operators Committee

Resources Development Act of 1986.

several years prior to the arrival of the first ULCV. “It wasn’t the first time it

It provided congressional approval

had been brought up. This time a

to deepen the port from its then 45 feet to 55 feet, with a 57-foot

coal operator asked, ‘When are

depth allowed for the Atlantic Ocean

Channel.

Since

we going to 55 feet?’ I responded

that

by asking him, ‘When can we

authorization, the project has been

performed

in

make the business case for it?’

phases

That was followed by another

based on the needs of the port

question, ‘What will it cost?’”

community and the financial

2015

100 years

A regional chapter plan was enacted to expand and strengthen VMA’s representation of member businesses across the state. The Central Virginia Chapter was established with participation from many Richmond area members.

It would be followed by chapters in the Shenandoah Valley region, Southern Virginia, Southwestern Virginia and Northern Virginia.

25

Virginia Maritime Association

White contacted the U.S. Army Corps of Engineers and asked for a “back-of-the-napkin” number to dredge to the full 55 feet. “If I remember correctly, it came to about $275 million.” It would be up to the Corps to approve the need for deepening and widening as a National Economic Development plan, which determines if a large public works project contributes revenues and benefits to the federal government.

CMA CGM Brazil, a 1,200-ft x 167-ft ULCV brought in a record breaking container load in September of 2020

“I took that number back to the committee. Members said they would provide the figure to their principals” to see how 55 feet would affect their ability to load additional cargo and obtain savings. Several months later the VMA and the Army Corps of Engineers held the annual Hampton Roads Navigational Summit. “With the Army Corps of Engineers and other key stakeholders in the room, the luncheon keynote speaker, a representative from Alpha Coal Sales, laid out the numbers for the economic justification” to move forward. That was the catalyst for us “to turn up the volume."

Through the Virginia Port Authority a formal study was requested of the Army Corps. In 2018, after two and a half years of work, it determined dredging even beyond the limits of the 1986 authorization was justified economically.

It recommended deepening to 56 feet in Thimble Shoal Channel and to 59 feet in the Atlantic Outbound Channel.

It also provided for widening the passageway to as much as 1400 feet. Congress authorized these greater dimensions as part of the Water Resources Development Act of 2018.

The Virginia Maritime Association and the Virginia Port Authority had already begun an effort to obtain state funding to go Original signers hold the Navigational Summit Charter.

2016 Virginia’s General Assembly passed a historic $350 million bond package to add the capacity to handle an additional 400,000 containers through NIT. This one-time funding was the largest single allocation of state funds toward port infrastructure to date. The VPA signed a new 50-year lease for Virginia International Gateway and began a $320 million project to build the terminal’s second phase with plans to increase its annual cargo capacity from 600,000 to 1.2 million container lifts. The VPA and the City of Richmond signed a lease agreement enabling the VPA to operate the Richmond Marine Terminal (RMT) (formerly Port of Richmond) through 2056. Plans for RMT include reinvesting in the terminal and establishing RMT as a catalyst for economic development in the Greater Richmond area. On July 11, 2016 the MOL BENEFACTOR, a 10,000 TEU Neo-Panamax containership was the first of her kind to call on the Port of Virginia after also transiting through the newly expanded Panama Canal. While ever larger ships continue to call on the port, the MOL BENEFACTOR will always hold the title of the first Neo-Panamax Vessel to come to Virginia.

The Voice of Port Industries since 1920

26

“Wider, Deeper, Safer.”® They sought $350 million for the preliminary

“We are expanding the capacity at our terminals and deepening

engineering and design at a cost of $20 million, and dredging, a

the Norfolk Harbor and its channels to accommodate and provide

$330 million endeavor. Members of the VMA from across Virginia

the highest levels of service,” said John F. Reinhart, the Virginia

met with legislators to explain the importance and value of the

Port Authority’s CEO and executive director. “From 2014 to 2024,

investment. In June of 2018, even though the federal government

we will have invested nearly $1.5 billion in preparing this port for

had a nearly equal obligation for the project, the General Assembly

its future and making Virginia the U.S. East Coast’s leading global

recognized the importance of accelerating the project and agreed

gateway for trade.

to include the $350 million funding in the state budget which was signed by Governor Ralph S. Northam.

“The historic investments being made here are leading to the creation of a world-class, modern, deep-water port. [They are]

The target dredging completion date is 2024.The VPA embarked

also helping drive the expansion of this port as an important

on an additional $700 million in terminal expansion projects to be

intermodal hub for cargo moving by rail to and from the Midwest.

finished in 2020 that includes $350 million provided by the General

We are committed to a long-term strategy that will make The Port

Assembly, for which the VMA participated in helping the VPA obtain.

of Virginia a sustainable, economic force and a reliable, efficient solution for our customers for decades to come.

Besides enabling the port to manage many more ULCVs, this newest round of dredging will greatly benefit the U.S. Navy and private terminals on the James and Elizabeth Rivers.

AT THE INAUGURAL NAVIGATIONAL SUMMIT IN 2006, THE MARITIME COMMUNITY AGREED ON THE FOLLOWING AS THE PRIORITY PROJECTS FOR VIRGINIA'S PORTS:

Maintain the Norfolk Harbor Channel and Craney Island.

Construct the 55-foot Norfolk Harbor Project.

100 years

2017

CSX began providing double-stack rail service between Virginia’s ports and Mid-west markets.

27

Improve the South Atlantic Ocean Channel.

Construct the Craney Island Eastern Expansion.

Virginia Maritime Association

Deepen the Southern Branch to the 45-foot and 40-foot authorized project level.

2018 The Virginia General Assembly approved $350 million for the Wider, Deeper, Safer project to widen and deepen the main channels and reclaim the port’s competitive advantage of having not only the deepest water on the East Coast, but also restoring 24/7 two-way navigation. Congress passed the America’s Water Infrastructure Act of 2018 authorizing the deepening of the Norfolk and Newport News channels to 55 feet, Thimble Shoals Channel to 56 feet and the Atlantic Ocean Channel to a depth of 59 feet.

THE MARITIME

SUPPLY

CHAIN Mural Artist: Adam Stanton

In celebration of the Virginia Maritime Association’s 100th year in 2020, the VMA commissioned Adam Stanton to paint a mural portraying the vast segments of the maritime supply chain. Included are images representing commercial ships, trucking, containerized goods, ship building & repair, agriculture, rail, tugs & barges, offshore wind, and the workers vital to our maritime economy.

“This mural has everything that encompasses the maritime supply chain,” Stanton explained.

The maritime supply chain keeps critical supplies moving through times of prosperity and through times of trouble; pandemic, war, depression, prohibition... and the VMA recognizes the efforts by the different industries involved in the maritime supply chain by giving them representation with the VMA’s mural.

2019 VMA retained a federal lobbyist for the first time to strengthen its continued advocacy for federal funding of “Wider, Deeper, Safer” projects and to improve its position with Congress and the executive branch. The $320 million expansion of Virginia International Gateway was completed, giving it the capability to service as many as three Ultra-Large Container Vessels (ULCVs) simultaneously and doubling the facilities container throughput capacity. The Coastal Virginia Offshore Wind demonstration project began construction of two six-megawatt wind turbines approximately 27 miles off the coast of Virginia Beach. Dominion Energy also announced its intention to construct the largest offshore wind energy project in the U.S. off Virginia’s coast. With VMA’s substantial contributions, the Governor of Virginia unveiled the first International Trade Plan for the Commonwealth of Virginia as the framework for substantially increasing the international trade intensity of Virginia’s economy. Achieving VMA’s top priority, dredging began in Thimble Shoal Channel to start the work that would ultimately deepen the Norfolk Harbor Channel and Newport News Channel to 55 feet, deepen Thimble Shoal Channel to 56 feet and widen it up to 1,400 feet, and deepen the Atlantic Ocean Channel to 59 feet by 2025.

The Voice of Port Industries since 1920

28

Looking to the next

100 YEARS “We’re making sure we evolve with the industry wherever it may go,” says former VMA executive vice president Arthur W. Moye, Jr. as he considered the association’s role in the next ten decades. “I don’t see that changing. It’s been the basis for our existence for a hundred years.”

David White, current executive director, agrees with Moye but adds, “Our mission and what we do will not change that much, but how we do it will.” The VMA will continue advocating for the maritime industry and the connected supply chain. Yet, he acknowledges that its structure, processes and techniques must evolve, just as they have from the beginning.

The creation of statewide regional chapters is an example of a recent change. With this expansion, the Association can now advocate at the local level across the state, building upon its longtime work with state representatives. This effort expands beyond advocating with elected officials, with members also talking with economic

David White

development leaders and others in local infrastructure positions that can affect port and port-related operations.

The initiative includes a credentialing program, the Maritime

The VMA has now begun preparing new generations for leadership.

Leadership Certification. Those completing it have a more

It has launched a Future Leaders Group for members under 40,

comprehensive understanding of the maritime industry, are

one that is already proving successful. VMA describes the group’s

exposed to a variety of stakeholders and aspects of the industry,

purpose this way: Future Leaders participate in special programs,

and develop critical leadership skills. The certification prepares

tours and socials designed to expose them to all the facets of the

those who seek positions in the maritime field and demonstrates to

maritime industry and build their professional network.

potential employers that a candidate is committed to the industry.

2020

100 years Beginning in March, through the remainder of the year the U.S. and much of the world were held in the clutches of the COVID-19 coronavirus pandemic with historic life threatening, economically depressing, and industry altering effects.

Virginia’s prominent role in the nascent U.S. Offshore Wind industry took several large steps forward. Most notably, Dominion Energy and Ørsted successfully installed the twoturbine Coastal Virginia Offshore Wind (CVOW) demonstration project 27 miles off the coast of Virginia Beach, the first ever to be placed in Federal waters. These will be followed by much larger developments off Virginia and North Carolina, and elsewhere, with activities based from Virginia’s ports.

In creating the initiatives, VMA seeks to ensure its culture of cooperation and collaboration, which is one of the port’s competitive advantages. “These are the individuals that will pick up the mantle of leadership,” White said. “The programs cultivate relationships allowing them to work together, even if they are competitors, toward the best interest of Virginia’s port industries.”

The port will likely look quite different after another 100 years.

Steps required to locate windfarms off the Atlantic coast near

Participants of VMA’s Future Leaders and Maritime Leadership Certification Program (MLCP).

the shipping channels are underway. The VMA is involved and contributing to the development of this new maritime segment. While in its infancy right now, the U.S. offshore wind industry holds strong potential for industrial development and renewable energy. The sector is expected to become a major new user of port services.

The Craney Island Marine Terminal, in the early days of the VMA jokingly called “Thompson’s Swamp” is closer to becoming a reality. As the largest fully-permitted port expansion project on the East Coast, it will dramatically enhance cargo-handling capabilities. It will play an important role in how the port and supply chains statewide and across the nation evolve.

Virginia’s first two offshore wind turbines were installed July 2020.

Some of the evolution will be visible. Ships calling on the port will continue to grow larger. By 2024, the port of Hampton Roads will regain the title as the deepest port on the East Coast. But much change is already taking place behind the scenes. Up and down the Elizabeth and James Rivers, in Southern Chapter Meeting

the Richmond and the Inland Ports, and along the highways and rail lines of Virginia, terminal operators, shipbuilders and suppliers, logistic operations and supply-chain firms of every sort are planning and putting into practice their own innovations. In essence, the future is underway in many ways we can’t easily see.

But while much will be different in 100 years, in ways it is impossible to imagine now, one thing is sure. The Virginia Maritime Association mission will stay steady and true with a deep commitment to the industry, the port, and most importantly, its members.

Completion of the $400 million expansion of the south-side container operations at Norfolk International Terminals (NIT) expanded its capacity by over 40%. The project included 60 new automated rail-mounted gantry cranes, 30 new stacks, and two additional ship-to-shore cranes; giving NIT South 10 Super Post Panamax cranes.

The Virginia Department of Transportation (VDOT) began work on the expansion of the Hampton Roads Bridge-Tunnel, which will double the number of lanes to ease the flow of people and cargo between the port and points inland. |The project will take five-years, costing $3.8 billion.

Thank You

TO OUR SPONSORS

TITLE SPONSOR

PRESENTING SPONSORS

CELEBRATION SPONSORS

CENTENNIAL SPONSORS

VISIONARY SPONSORS

GREAT LAKES DREDGE & DOCK COMPANY, LLC

MILESTONE SPONSORS

1920 “CHARTER” SPONSORS Anders Williams Ship Agency Atlantic Intermodal Services, LLC Atlantic Lift Systems Atlantic Yacht Basin City of Portsmouth, Economic Development

Clark Nexsen CMA CGM America Colonna’s Shipyard, Inc. Compass Insurance Solutions COSCO SHIPPING lines (North America), Inc.

Hampton Roads Alliance Hapag-Lloyd (America), LLC International Longshoremen’s Association Kemper Consulting Metro Group Maritime

Moran Norfolk Norfolk Oil Transit Norton Lilly International PortRail Crane Service, LLC Rubin Communications

Suntrust Tecnico Corporation USMX, LTD Waterway Surveys & Engineering, Ltd.

ABOUT THIS "ABRIDGED EDITION" Please enjoy "VMA’s Commemorative Book: The Abridged Edition," produced in honor of the Virginia Maritime Association's 100th anniversary in 2020.

We encourage you to discover a taste of the rich history of Virginia’s maritime industries these last 100 years while also considering the opportunities for continued economic growth through our maritime supply chains.

The extended edition features bonus content and is made exclusively available to VMA members, anniversary sponsors, and other anniversary contributors.

The Virginia Maritime Association (VMA) continues to promote, protect, and encourage international and domestic commerce through Virginia's Ports since 1920. With a membership of over 450 companies, and still growing, the Virginia Maritime Association is widely recognized as "The Voice of Port Industries," the premier business organization to enhance competitiveness and promote commerce through Virginia's ports.

WWW.VAMARITIME.COM/MEMBERSHIP • 757-622-2639 CONTENT & DESIGN Dean Goldman, Goldman & Associates Public Relations

Jones Printing Service, Inc. Rubin Communications Group

VMA2020 Committee Virginia Maritime Association Staff

All images are provided with permission for use in this publication or fall under general permissions for the Virginia Maritime Association to use when representing the industry or the association.

A full list of contributors is available upon request and can also be found in the full-sized edition of VMA's Commemorative Book. ©Virginia Maritime Association 2021