VMA's 100th Anniversary Commemorative Book

100 Years: THE VIRGINIA MARITIME ASSOCIATION'S COMMEMORATIVE BOOK

The Voice of Port Industries

Table of Contents THE VMA STORY Amid Constant Change, a Steady Force ................................................. 3-5 Where a Super-Port Could be Created .................................................9-12 A Modest Man with a Giant’s Influence.............................................. 15-18 A Greater Impact than the Industrial Revolution............................ 23-26 A Port for All of Virginia............................................................................ 29-32 Public or Private: Making a Difficult Decision.................................. 37-41 Growing Bigger, Going Deeper and Wider........................................ 43-46 Looking to the Next 100 Years............................................................... 51-54

SUPPLEMENTAL CONTENT Charter Documents................................................................................... 34-35 The Mural.............................................................................................................50 Distinguished Service Award Recipients..................................................56 Port Champions.................................................................................................57 Endorsements from Government Officials....................................... 58-60 Sponsors...............................................................................................................62 Letter from the VMA2020 Chairman..........................................................63 Letter from the Executive Director................................ Inside Back cover

Celebrating 100 years

The Voice of Port Industries since 1920

1

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 since 1920

3

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.”

He

noted

that

“From

the

outset, the Exchange followed a broad, flexible program in advancing better those

and

promoting

understanding engaged

in

among

port

and

allied activities. It has provided a

medium

maritime

through

interests

could

which take

concerted action on important issues and present a united front 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.

4

Virginia Maritime Association

on

legislative,

transportation,

harbor and other matters.”

WE FREQUENTLY USE THE WORDS

collaboration and cooperation

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

POWER GENERATION

Today the newest leader, VMA executive

WORLDWIDE SEA SERVICE

director

MARINE INDUSTRIAL REPAIR

David

White,

voices

similar

sentiments: “We frequently use the words collaboration and cooperation. That culture has

benefitted

this

port

OFFICES IN CHESAPEAKE, RICHMOND, ROANOKE, VA & WV

tremendously.

It is curious how we have gotten to the place where we’ve been able to foster an

environment

where

cooperation

and

collaboration are ingrained in what we do here.”

These concepts are integral to the

organization, he says.

“How we conduct

READY TODAY AND FOR THE NEXT 100 YEARS WWW.BAYDIESEL.COM SINCE 1982

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

The Voice of Port Industries since 1920

5

1923

1926

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

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.

1931

1928

100 years

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

6

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

1932

1933

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.

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.”

Virginia Maritime Association

VIRGINIA MARITIME ASSOCIATION Congratulations on your 100th Anniversary

townebank.com

MEMBER

FDIC

EQUAL HOUSING

LENDER

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.”

1936

1939

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

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.

100 years

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

The Voice of Port Industries since 1920

9

TO PROMOTE PROTECT & ENCOURAGE INTERNATIONAL & DOMESTIC COMMERCE

through the ports of Virginia.

The timing couldn’t have been better for the initial 56 port businesses that came together and formed the Norfolk Maritime Exchange, now called the Virginia Maritime Association. The VMA’s founders saw their mission as being no different than it is today: “To promote protect and encourage international and domestic commerce through the ports of Virginia.”

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

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

industry.

Among

its

founding

members

were stevedores, terminal and steamship operators, machine works, ship and engine repair firms, welding companies, and law and insurance firms.

Most were

located in Norfolk and close to the waterfront, but some companies hailed from as far away as Newport News, providing representation to that region of the port.

Compare that with the Virginia Maritime Association of one hundred years later: The membership roster has expanded tenfold with chapters statewide. Its members represent 85 business categories, including many unheard of at the VMA’s founding, such as cyber security

services,

logistics

consultants,

intermodal

carriers and modeling and simulation providers.

10

Virginia Maritime Association

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

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

These ex officio members, public sector leaders in the regulatory requirements of government, attend committee and board meetings, symposia and events alongside business members. They are involved with all facets of issues faced by the port, working as a cohesive group for the good of all.

The VMA’s 28 active committees serve a crucial role in the port’s daily operations and long-range planning. They find common ground among competing interests.

VIRGINIA MARITIME ASSOCIATION COMMITTEES VMA2020 100th Anniversary

Events: Annual Banquet

Inland Transportation

Awards & Memorial

Events: International Trade Symposium

Membership

Board of Directors

Events: Maritime Briefings

Offshore Wind

By-Laws

Events: Outings

Port Security

Cargo Owners

Executive

Ship Operators & Agents

Coal

Finance Ways & Means

Strategic Planning

Commerce Development

Fire Protection & Hazardous Cargo

Terminal Operators

Communications & Outreach

Freight Forwarders & Customhouse Brokers

Towing & Barge Operators

Education and Training Environmental Awareness

Warehousemen

Harbor-Anchorage Dredging & Navigation Rules

The Voice of Port Industries since 1920

11

David

White,

the

current

executive

The

century-long

director, says, “There were situations

shipping

where

the

there

were

great

differences.

supply

ports’

expansion chain

influence

of

has well

the

goods moved annually, generating over

taken

10% of Virginia’s gross state product,

beyond

Truckers, warehousemen and container

southeastern

terminals had to work out enormous

impact on the entire Commonwealth is

differences.

The

VMA

provided

Virginia.

The

industry’s

a

producing

530,800

port-related

jobs,

adding $2.7 billion in state and local taxes and creating $27.4 billion in wages.

The 1920 circular noting how Hampton

platform where diverse segments of the

Roads could become a “superport’ expressed a vision that

“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."

continues to come alive in

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 pretty

forward-thinking

people

Southgate Terminals, Norfolk, VA. 1925.

back

in 1920 that put this group together.

From my experience of the late 70’s and beyond, people were always looking out

profound, according to a 2016 study by

southeastern Virginia and across the

for the long-term best interest of this port.

the College of William & Mary’s Raymond

Commonwealth. The Virginia Maritime

And when they walked in here for some

A. Mason School of Business.

Association’s

meeting, whether it was a regulatory or

variety of commodities in bulk ships,

together, are the catalyst that keeps

operations issue, everyone seemed to

goods in containers, cargos transported

this

leave their competitive hat at the door

by barge and commercial ship repair

moving forward and its complex parts

and work together for the best outcome.”

activities result in 79 million tons of

functioning smoothly.

100 years

1941

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.

12

Virginia Maritime Association

A wide

members,

impressive

economic

1945 Name changed from the Hampton Roads Maritime Exchange to The Hampton Roads Maritime Association.

working engine

Port of Chesapeake

CV International & Capes Shipping Agencies congratulate the Virginia Maritime Association on their centennial.

Throughout our own history,

Congratulations on 100 years of maritime industry growth

we have been proud supporters of the VMA and their mission to promote, protect, and encourage commerce through the ports of Virginia.

We look forward to the next 100 years!

Congratulates VMA on Reaching 100 Years!

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The Voice of Port Industries since 1920

13

100

REASONS TO CELEBRATE

Congratulations to the Virginia Maritime Association on reaching the milestone of 100 years. We are grateful for the VMA’s historic contribution to the growth and advocacy of the maritime industry.

Our firm is honored to be part of the Association since its inception and to have witnessed their history-making. To the VMA Executive Team, Board Members, and Staff we are here to help keep you moving forward!

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Virginia Maritime Association

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.

The Voice of Port Industries since 1920

15

The VMA is celebrating 100 years and Givens is proud to have been a part of it for more than half a century!

Thompson had the largest office in a cramped space outfitted with the communications technology of the times: “A telephone, a mimeograph machine and Western Union coming by two or three times a day,” says Jack Mace, Thompson’s successor.

Mace 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,

1967

highly-respected,

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GIVENS.COM

competent

and

courteous.”

An article in the Portsmouth Star highlighted Thompson’s

role.

The

newspaper

interviewed

Barron F. Black, former volunteer 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.’”

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

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.’”

100 years

1946

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.

16

Virginia Maritime Association

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.’”

1948 Activation of the new Norfolk & Western merchandise terminal at Lambert’s Point.

CELEBRATING

100 YEARS ALONGSIDE THE VMA

SINCE 1923

Thompson is credited with developing many of the VMA’s founding principles as well as broadening and increasing the VMA’s membership and clout. He also oversaw important port achievements, including: - Deepening the channel in the southern branch of the Elizabeth River, - Deepening the Thimble Shoals and Norfolk Channels to 45 feet, - Extending the Hampton Roads anchorage area, where ships await their turn to move into port, - Distributing ship arrival information, - 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.

1949 The Association served as the sponsor for the first annual Virginia World Trade Conference.

Congratulations on 100 years!

Congratulations 100 years!

Looking forward toon partnering with Looking forward partnering with the VMA in thetonext century! the VMA in the next century!

1952 The Elizabeth River Terminal on the Southern Branch and the Norfolk Oil Transit, Inc., at Lambert’s Point both began operation this year.

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

The Voice of Port Industries since 1920

17

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,

- MARK COBERLY,

Partner, Vandeventer Black LLP

including law firms and banks.”

However, Thompson always credited others with the

Throughout

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

to Thompson. Don Fulton, his oldest grandchild,

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

remembers relatives gathering for a meal every Sunday

Hampton Roads is a culmination of many years of effort

at

by many people, all fired by the common ambition:

would often head to the Norfolk Zoo, usually with

A GREATER HAMPTON ROADS.”

grandchildren in tow, to take an ice cream cone to

his

his

life,

grandfather’s

family

house.

was

very

important

Afterwards, Thompson

Jocko, a squirrel monkey from Brazil he had raised and then given to the organization.

Thompson’s affinity for the region’s ports seems natural in retrospect, for he was the son of a coastal steamboat

Mary Anne Strickland, Thompson’s youngest grandchild

captain. His father passed away when Thompson was

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

just eight and family finances were tight. In 1906 at the

demonstrated how important the maritime association

age of 15, he began working, landing a position as a

was to him. “He gave each grandchild an inscribed Port

stenographer for Old Dominion Steamship Company.

Annual for the year we were born.”

Congratulations to VMA on 100 years of service!

A full service ship repair company since 1928 1818 Brown Avenue • Norfolk, Virginia 23501 • t-(757) 622-4661 www.lyonshipyard.com

18

Virginia Maritime Association

Once serving as a U.S. Quarantine Station in 1932, Craney Island will one day become a modernized container terminal (see page 54).

Congratulations on 100 years VMA!

We look forward to our continued partnership through the next century of maritime growth in Hampton Roads.

The Voice of Port Industries since 1920

19

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.

100 years

The new $60 million, 3 ½ mile long Hampton Roads BridgeTunnel formally opened.

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

Congratulations to the VMA on 100 Years!

20

Virginia Maritime Association

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

Congratulations to the VMA on 100 Years!

Maritime Institute Congratulations to the VMA on 100 Years!

The Voice of Port Industries since 1920

21

Congratulations on 100 years of progress, prosperity, and partnership.

We look forward to continued collaboration between Norfolk Southern and the VMA as we connect communities across the country and around the world through commerce.

To learn more visit norfolksouthern.com © 2019 Norfolk Southern Corp., Three Commercial Place, Norfolk, Va. 23510

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

The Voice of Port Industries since 1920

23

“ WORLDWIDE CONTAINERIZATION

had a greater impact than THE INDUSTRIAL

REVOLUTION“

“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

Hampton Roads Shipping Association (HRSA) is proud of their history working alongside the Virginia Maritime Association.

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.

Congratulations to the VMA for

100 years

of dedication to maritime industry growth!

24

Virginia Maritime Association

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

1988

The shifts propelled the VMA into broader

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.

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.

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.

1963

1964

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

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.”

100 years

The Voice of Port Industries since 1920

25

“It’s always external macro-forces that cause the change,”

DAVID WHITE, VMA EXECUTIVE DIRECTOR, SAYS,

says Joe Dorto, who served as the first 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.

MARITIME GROWTH HAS BEEN IN A METAMORPHOSIS,

as has our association. ”

OUR MARITIME SUPPLY CHAIN AFFECTS VIRGINIA & SURROUNDING REGIONS 79 million tons of cargo moves through Virginia's ports

VA's port-related industries generate $88.4B in spending, $27.4B in wages, and $2.7B in state & local taxes

530,000 jobs are connected to Virginia's ports Port-related industries include waterborne transportation, trucking, global trade, distribution, storage, logistics, repair, manufacturing... ...and more!

10.1% of Virginia’s gross state product is port-related

Statistics according to the 2016 Economic Impact Study of Virginia’s Maritime Industry by Raymond A. Mason School of Business College of William & Mary, sponsored by the VMA, Bay Diesel & Generator, T. Parker Host, the Virginia Economic Development Partnership, and the Virginia Ship Repair Association.

26

Virginia Maritime Association

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, President and CEO, CP&O they are working in everybody’s best interest.”

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.”

Congratulations to the VMA on 100 Years!

The Voice of Port Industries since 1920

27

“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

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.

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.

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.

100 years

The Voice of Port Industries since 1920

29

“

Coal was That Sea-Land container grabbed Governor Holton’s attention because it was the first evidence he had seen that the 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

containerized cargo westward.

30

sending Governor

“Coal was king in the 70’s in this port,” says

Holton realized the world was evolving and

former VMA executive vice president J.J.

that the ports had the potential to do more

Keever. “Virginia was the top port for coal.

for all of Virginia than just export coal.

The state tried to focus on what was Virginia’s

believed if Virginia were to have a role in the

lifeblood and there was huge global demand

new age of containerization, the structure

for metallurgical coal.” Even today this port

and management of the ports in Hampton

remains the nation’s leading coal exporter.

Roads had to change.

Virginia Maritime Association

He

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

J.J. Keever, former VMA Executive Vice President

of a unified port system under the umbrella of the Virginia Port Authority.

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 the same time, containerization came about. The cities couldn’t afford to modernize their ports, and really didn’t want to.”

Joe Dorto, First CEO of Virginia International Terminals.

... & Virginia was the top port.“ The Voice of Port Industries since 1920

31

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.”

Speaking as an organization was one element of the success.

In addition, Dorto says “The VMA had the clout of private company members. Richmond was swayed by that.”

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,

J. Robert “Bobby” Bray

OVER THE PAST 100 YEARS, the Virginia Maritime Association’s tireless efforts have helped create and support jobs, investment, and growth across Virginia. We congratulate the VMA on this special anniversary and our close partnership.

32

Virginia Maritime Association

“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.”

1968

1970

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

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

100 years

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.

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

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.

1971 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.

1977

1980

The HRMA urged that the VPA should be altered to have more control and authority over the stateowned 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

33

A LEGACY

100 years

in the making.

VMA's original 1920 Charter.

In honor of 100 years of maritime industry growth, the Association held a reception on its birthday, February 13, 2020, inviting VMA leadership to sign a new Centennial Charter and launch the next century of growth. The document mirrors the original charter, signed 100 years prior to the day by 56 business leaders, establishing the Association.

Nearly double the number of signatures can be read on the new centennial document.

These names include members of the Board of Directors and Officers, Past Executive Vice Presidents, Chapter Chairs, and VMA2020 anniversary sponsors.

VMA Vice President Rolf A. Williams signing the new Centennial Charter.

Congratulations Virginia Maritime Association on the celebration of your Centennial Anniversary. Best wishes for continued success representing our extraordinary and dynamic maritime industries.

34

Virginia Maritime Association

The Voice of Port Industries since 1920

35

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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 wner entsdieon nera In de AalnyAsspr ed is Port of Vir sures that stru . 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 thll right ca ainly un e po stefgafic eal for ap he oivers m an all V ld certic some inte st in retct erdon ce iserun to m ofan tio la thte est cerrt nceepoart t ’t complete, the retu forrtth th nedco ’s recent oren orly ec isu maiaTh ould take common nakfainctg, a bid wou pdeepesdt port indethpeendI onre tto seek rpetarfin axw reorts, di ly an rtIHappns om I peprfo fo imea nsrriden po st t nl rn . to r te y ize at pp y e n t er rm e an to in ia in e su no m in p e an d Vi r g: tu e t rt in h ce rg am r rn k a t lth. ed Vom cut in th inia and to 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 eate bs. t ci a. ra ve en t easil us tio for su ivate operat w pornne quasi- hu mental no must esire ents gedde atrae mon st bu e Pstoatrew An or wouldt taxpayer-ojo hbs lys atondan unpaaking a bid e inthte on. sses my understannd si sses - assinu eepuleth 3,00 0tjo improvem the A wned stru ctte able. chshaou ensure s from led nprodfit VIT,vewh ncentrate, as entbu direqeua lleeth e popth directly, 34 ld, on retusrnthat the co m tlasnt, ic ke som gu of. Succdesmsfon businmebers froomrtthis ilt sre it of year show Poertthof ro mich nanrtadreinathto pies poerlyator T velhe ing the hipo rt fu mpetitors. op o rsibpo uld tea fact pthoatrt sm ird upidp-Aort e overeits op co im is n n tio -b s P le. , a o us e 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 its a nt pe tu Ea n te rn to h va rf . st a fr t a or to ad a er e to u mance trou private, for-erato , port in a a es V t q g: t oleve tu Th m h ir n ny s t ev rn gi co e . a pa s ni R s . s v m n ou h ep ic a p r b pr nt e cu co t bl an le uc la o t o es Del. ivent of our 3,0 0 0 jo d to create itsuch as APM Te ce the of itqucomspatany to aube thorea reop grc en-m di emtre My fo itysi’sly20 -yea A Ch no pffe prris Atlan Virginiasgo ve is o ivatJoeneop mrn s has beid ental nonpro rminals. lve toasi- y And eratet. APM r deta s, er a Su al nd ator ately 90 pe irePo toab is pu ffolk tion proces tly, 3V4irginia as e over it c wou n ’s high-tech unders atic’s m Repu fitnotVhIT hbl ld blcoicancn,entr vohich an , ew approxim s a deal input nwta inou mbe g aldse g inhdthe c rt of mber The bid evaleua facthte tpu the port intoIt’em difPofertr-esmasounu rs ug ismop terminal in le. shsh riesre o ate, c ro t fr a po n th u om , en of bu on se v el leg d ilt is d th av th lu SAT isl h d ov by a turninatgive re edies n d-bu a will stAreRY thin mpr nyear showth-at would affec einedu veURDAY e ia arhiti 9,t 2is ath 013 region’s relo rsible. , FEBRU ir exports tr g hastty, an okent on s eebth ny athm oom ed for eim highest prof . We are si Virth stisrybr ng-te its ownetrsth. e port and ththe m Coa sswho , its e port ’s isngnthoen This ne str,ow rm marke cthith assiestr on Roads le system mctes tofr d. of our compa easEwe uckers tposit i y casope w n as er p 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 , bu e,pltyfo limcent roni volv sion po sharrotkite initially men ’s isin alu maissu rtficau ippi prng siat iedpsig im ginia of co liTh ations. that is in My fomanaging th it mcopamnipa is bRY thte chhas .cIt r rr orstEity uacbed el ChriserJo pPM bidrt evad foWer an 90e per pl One woD esn.ny co 013 W . D URD 2ea company 20 A Ile LAY, Y rt of Virbeliever thTehe po yPstFEBR s.UA Rm edWop -y S’s Teerer re ess of s o . so ItSal ttbeereA e C9, s, fromximately an uld .pr O as cc Mr deal ne us P es m on e su to s, m oc in at SAT in d e ev o d ha a ir d g e al pr m n co h en Su s pp h is an s. t in a fo ry e A t e ened tu torninis push r such the govern ffolk Repub st e wi’sth hithgh ng-t Th a drastic hat the wcidPM ad ppro milling hrougFuhrthermore, aI lumb as inconsoistehnt anloge ly ec or from as, ty, facilitItat’se athchede of the fore g over inpo lic is ecbaon grta se iconasset ea land to travel tar rsht te alabop seom econ rm isnesimep -two rtwn f in sion tPodo smtuou ofs lewi opri le po e aredata citesdpwect to lity of th se al leg a inclaaim eres of to mar dd by . Itwgeill ation gith in islatthive din m rtsproducts eoadpe slou by eth ativ M ic , is t valuTr crn s. rfW sustainabi pushed anrepla os e remed cSedisSsng. CoOom tio E e redgi atap R xr.pOour P ormance ery aom secretarityed. c Yre ns ansporon Lst osoerth e iti w e u , D A Ira t . th ou m t a’s lea W th s be pr W ng e ni on ld W m ly ov ta R in gi th lu ’s tio af e nu al r ir du p v fr en , fe n b ng-ter al financia-t andctitth steryno mancial V ring erssmes st lo , titshetruckegiSe e rtth ponrt ou e ul cr wo inmements rv podrtpran seau Co l lo e pexto stoeet thpo yd mSeuan a etar to nn e rt’slifin ede co sth ’se goof mnargke manufactu ohib vern d itthe handli thoatmCo ir rsni e, anHdawm anel echtoasn,tW t poo g ethpo e nt bior emrslo vgh inin ds fro and hhe es w nnaaughton deuepebnd invanodlvth thtatVte tomtafir t th gin l as itca andthco elienesu n,icbu nt,est, as n worldwidin keinov g er th cited as boar csientio ate t it in ison rrietot mnanabaou sco tatio ipeinpicng thout cause, twes that is tran,spfrorom - relation initialwi opdermat Ibut be il caeus n d sign em eent sh stat well-know le c nclusion to y o co b sh co n ly fa fo a ip th iobensrs. , d a r a ifi e he t m e co ni lu n s T p ca as en pa r Vi nc s . gi a a o . nt M sdependrginia Po oir The an to ern. ni s Bu m v h O cD a V es e lenssg co o ally t t ne m on c JL . ck st c t w ob r ne o AR s. re s w f gl e ed so re li r ll ou ly e r o It o in rt d C al h as di p er il n ld be t m e re e al d on Authorityiato po ingis fo ry lum haia ened Jones and Sen. prevent inth20 ach ’s m edetFerur coincide w T tien esu norttedothat the so positlaionndwto m rt seemsarpr rcrfic restry atoathcatitdar VItio Odhi e 11 go. ve pogrtinalpp turning ch irgin suffere dtofro Fr cdean t anad drV so semrvdeeith e ivatize the pooducts e hn.e sineef ge the ewstorVstir ta unsp of thopeerfoators ofy thoef thpr is clining or agner of rnor fro suba manan antic er ankrt Wop aindtab cially do ostm se ueur container treconomVirginia Beach arov fr e ntrtan w le. prfor hard facts.r perforLast innt aaincial finas ive sW it inals, sunsolic tfro on n with the inabilrm a r n fectm m e also po n d fi u o ef a er tw h tic spring’ ke in c at af s s c o O cl or fic ’s ions withou ited ge o sh pu u w t le proposa by d rd u m c s ip sh ne r. r Te gi l a by , APM o s ping ra anedTransp t sh atheive approv ing a plan Thrt ortation ed by slot onin Port back espu I have lintio ranspo mbe out rega e export o suatsiot nal es nsEv Fund ,enleertad uthw rn he comalsTto , trend st-ateTrust tathatejuiostpnifi So an ca r So in t Virgini ment nwto urst kfin nu gethe and a adistu dSe se, pt reverse baeal enganto Termin andlu with uthrever tetio an ha ouTh pen-dthat avendbeten setsio g g and caa’s ginia Inte run ddisturb ing trend nt ene thlaw iaM Hal that no d Port geme itrbing abgh an am dTrust e manage ports mana cr cnlu nd w ctatuinrin w in set ci fal ha off ou a a o n al n on eeareJolo g th C d Author mfaod len the ar m of , w o on ity port, Vir sig e m lo ls that ak has u ha ir y io Ro e c ap been rt ss go a na co t Fund er using n I of ohib ar ad V for es s, a pa id ac ve d ug capital e a t. ou s ldt pr e Se t in to project tion co e ks the threa a rn thatntC hat r hton,ss.over toto w r Evious anby APM s cts of of tweLeargiesla porta ar m AP due re or a losses. o ps Trans ra en th debate T wee qu y ld And d M ts perha ct t p fr perhaps r ire he e an content And on s nt s uc a om be s. due o T sal wi th d ce losse fo VI na the h n od in e tiv propo threat th re s. ot t w re a, fir a T pr ug at icited how e e Au le th hethat ni g’s r st betw e reRe m and andinthge bo unsol ht in al proje t whethe ehas authorw k gi rs r io th capit po on r , ounrown ir c sprin for vi — at h di ci in e money rt er V d of .

Last te for year ew using t te th unce at au ev ity ar been n O could al d anno po Co th an th re ak d be d ow tr ority as to reroute rt ith ority ar or st io m d la k d off aa dealAuth ehave mem H en the toruroad retstca t r miss ityr evd tio ca a nia’s he ou Port Auth r ee n Cshould a e the ring wellprivatiz us ns p a on, ru n t set d d ion ber ation, y su e er tizati w ct r hi the ports el an an fo Port priva en us ur the st th s p o Author e state to e n e, or road Virgi e ity tim p co announ in to W e an ck run m ou turn as M takey ov sAessentia tedn. toa control gh .over ced V a bally. ncer d be thio e inals ir n ity be rerou e it ef nt Bu th Term ly to se gi of in a co the cD s s fic of could un geme at e de ni r improv m t er that d d mana m ien o flexible id t bu on ement us JL e its s t up m AP ea ve mone pe m p t. nk ca ne rt — r e shake l or Po ip co to in lie to M ed the lo be ut ll di pa ports’ e d in 20 re an sanadebat rt ivher word RC reported ’sto rtpo success Janua in andthmost and ewhet tethe ot rg cther plans how rmin inne ereat January Jo over eIT we.stss.plans Vpo op . asis shake state’s ho ffesu alu.t’h varisouosf the ed and sh lumbVeIT upetits ports teh s anrydto Se 11. rees ri manage valuabl ntiou ttosaly ni Insucce leaA ty And eef sit ment conte s,veme asset c tialthatin in to gi is e o , the port separty. . th essen private ir st nt fa d share e S V s th ju in iz las tr mark r or t e Th to Th of impro d ffe an to are receiv ase address t po at a fic n. r we the incre at e rt ing sp g ns re sl to To of t the rt a ie or ek. and d from de state’s io control in Po JL ARshoul Frank Wag r. nt danop dtranspo an h state also tatio oceffor legi in eratover era turn n se t willls C ate al effort f inVan forthe trans toreincreas s cr hostwai otAnd otion ady is un irpr state’ e market etrtation nt manne her pr de bl , priv seun locthe gi share. ner of t su ssing niesas B yrt po cilitating ith m athrna ein on thosree podrt fin cial addre the woeaplth are eno syan aporta rcl di ste . problem asooner pthan ly lly co rt author party funding en way; th te fr nt and ef ficie at anre ch are de es on tsinofgrather priva a rrar ica tlelie ss le state ashout reg h about fa wop rminaab ne om ds smost nee. later ble ethan ity’s boea sism the fig re beelieve hshng valuaw laterfic alrso tr tw eanasset were rathe r rai btoemeainn edrt w com ontion state’ in uoldgin l rT ard onne our buus g VI ems, soone a caref ho eplaac ofundi most valu d wbiitFor are as muc aou probl with ipthpi she in n pu h o . starters has be v erkpo w , lack ba begu T af s, anurdIes t er ll of a th g d ng w transpa in er ck g a ulplan, dd le h m rency T McD n to ed en of e et hi was om lin ha e e ia Gov. e a wa t ed a co ho w st has Had wo n v k t s v operations es by es n been rd m do cu to ju in a a a anor. Had rkingdevel top priority esh panythe that logyEMan st r casu t g ot s lyrby for high gover ifi s E te ou pp he g succ id the e governo k en ir ve re for I n or r. e th r ity sp fy d a oped rg d I tio in ae V t prior e fo on So to tis t top g Gov. ee te an th a rs ou r n and e McDon sib s a sa ut w in m er l a e n been k tc hathey problem v le for and sLa has onstate’ t s need d h Ham ez begun idea a ia th ov a enom s . a s Lawma with thnell r t o ue th was no the e a ed ed kers careful h t s. in of cy n felt it sq th w at w uc rn m paren co e g had at revie t t po e been trans la tu pt fa od ha ul c of a left ou Vi e rt w m ir y lle tr on dn e d lack C the grow s h m rg pl ab W ’t gn wmaker V t n aparin ak he e Roa . nt r ds westarte dleftThe sa isrsiemacco ed cgts in out ofvTethe re rs, rol.contra s becau review s, in. JorintFor beuin t.e ia’been be in a bette s’iaerfor toor eod mightand eaderakers supp we ar of AnPM r,VITprocess re rs, the urtnitsiyco as they arport, hun state’s a bidde qu Laeg r lls needs rper ct m e pohrt had p te ir ity t bi s criter develop e they be y h th is a e .

Other th fo d felt fo un ed of m w t la e of re r private fo rm V w r r of light m ith n tiv o co po jeo e compan r IT re in om o in n Lawm m u VI c m ies zed fr p e be pa em. g th io paau co T, th an m hat o be oanaly deal nyth Review Com srd izing th must rtBut must pobe udoitfpriva and thor analyze ia theare prof it years. T eiseprobl dButh rtir e dcomp A nu ate thee deal to atity ivateiz d in evalu light au sre in hasto to adethe ofns the port tAOthe t prevent the pr antedancomp thes anies criteria lyat Hthat mpinoist gdo today rtu e pass. for ority bu ion sugg bidders posit re m iltstth , to t io we r g dollar of might might fu r t . ra im a es V be have a ev in over si ru tiv a t re wanted a in t better e de fo proce tr f on ealth r er a r ct e d tu the po chance al of o monw s ex ec e pr ur fu e at u it st rt th out ld ov such Com a on don’t os uoroughly de juecson poverru s eicwhat aom t best toewhat einsan erhe we an foradtheonweal perityvaof om r o eatv id is ck tonow, best io t ta is for o ic ens that wou ped ining now or in the reth li d the r th e ke Comm stand be P it a en e s ef be As such th co gi ov o at fic tw sals. the an in ne H m er h position chanc h ient. today am bua ed ot hodwthte port au t’s lyee em in propo to ed it is to gh n VIhave pton enou t contractea nsimp in inas e en t have e and c-priv oPM migh Tbelipr todaevaluat ngRooperato compar that ateoree evud there liwant ads nk tedon’t an esAwe rm rsco heterm, man alas term, om happen , the por an industry. f lexible mwell ys rtor,worand in long arks publi d rtshfrip w eorliand ity to— on al. In rsimply ly what y,themideal we enttelong t current opera eenough exact d bels. a don’t seth leasil curre exce know isTylahe w swe h. aswell , eth niso— st anT that T adr,ssth gbl ed laasst proposa r ap dive e act edtedanpo her leem inien Aspr inbef trnantospiseevalu nhave whet itch stands , an sds Virgini awteee contr aralt ass em oa loca hatttepr a Interna now, ufic probldon’t d ita make , ate stthe Thewe Termin or matio like.

To VI JL k. inform cie g Ass als ltRhtional rsta infor ration oc look (VIT) le protec crfor dtoad s lik A a — — tio ssesrearceeiv es woul iticaa l puarran )uot in b r. nt e an t (VIT ne o s n a C e geme e m ely si a tin inals al to d w se evaluat r n al Term re lu bu g e it re to cr a n whethe ex nal bl n er a s r po rt natio nia ic et he o il ist it makes v system bidder. shouldn’tr re Inter y per Virgi asset. what theon . Buof nia know is un m cutie Virgi the pr facGen t th up the Port m r to felt e nretlyma ostrt debut ary expo they di se, e tled osm on uop had been publicat ary po r wthat rt isauexactly dicwie sense m tiv private oqu en squeeze tizati ideal se at t al an an ire ay d been r priva ts out iscla becau s alalyb, outa ic becaus th with ; g, out u wh e eg e fy not th of on Our prim zed or sense ur L o ly t ff ol h e iti to squee t is ity tie th re es r hb h e up Befor e t in the dd ale ig c pl e any.

Port o ’s nc had a A w Jo of il ac comp Virgini fig u h they p e s e er bo ng h feltures andthe tivee e ho a singl ange ininth ga efor defec arrangement y with ch andbusinessesarine as m d reportofrf omththe dproce VITa to e and Ly halike. d basel the look APM s ssbewas ehalf-ce by wterms ineldinhalf-c g thentur The toterms y biddiar problem had mthe become ionarwould r usid en eucthe ly e et react e w d ed baselin becom co ho — w ar te v e had in Hillsvill o m asset do or as s d to es r o ble ntury pa s ki t th lo valua n with h qu APM s su a d ny ng gy single most at the re uc . its e in ethe id io d about pp en m re g c t y.

T n Before sells off compan or sp c d a nia I an r g as is t in not r fo Virgi on u with u V z e ou r privatiz s the t. rt t in si ed m e for ation outse p tc bl e compar liken po per the on e se, om o ison. e ator but b ly from that the One legislat u eareth ths. for es that Law legisl e e it off One orat n. likened engin the mic on the concerne wth and port r econo a sells Virgi ofofthVirgini dnfew its most isssimpwere offorbilcomp out sq ls aariso ’t comajo valuabl n ofulthe b ni m e oneco asset why I am a — io ak a’s nt o reaction is t ro er r s VIT. ary t a e bidding s’ l. hi g r ver” r process process T iz takeo o we to . a suppor fo nia ab“hostile was defectiv ailet takeove derp to fo er un ss er control over —co proce the Norfolk lly has engines far moree profivinVIT. the p jeopA they repo rm state r VisIT um major re. Tofhethe few ear”“host the econom mpaOper rt actua tuone the Port oftVirgi g tan ardinzi thatanalyfrom ating , th ny th the outset. sis doesticvalua ng th t from and nity as at ha vent th tion ad enden min in hedfu specs for ea indepcontrol builtdevel su an has the istratactually gg need state oecrVirgi f profi eswe ority uld pree fuwhen theoping commu d sthan tu o Auth t o licate iv w re 3 Port comp over e po o nia r w 1 — ec in pr rt n a ov 0 skin on t os the have 2 ll er ’t a in pe om g on doesn he ,bewho to need Eventhri Even omity when ic 5 do in ad ty ofthe the s party nia de Virgini n ic en y Virgi outsi a a e Port an r bids. gi by Author g r p tw a an ne H t set lettin it p need u and am ee d x indepen than highway pton br valuatio dent e po e VIT s prOperat n13 20 andnanalysi would accept other bids, it ds m ha anno to y,a is an e rt ,auFgame unceRdoa owould and the Portitback ssmore co ay ary 5, announ ofisVirgini proce th bly udenttoing .ity mmon m andtime orru rteafritlth ar farks fromdathis the eb accept other uesdsd antake w 45Tdays poced ,F bids, of is excess itthset em sseth d beattstep a efram by an outside A y. party . short r ue ay who er at d doesn’t ssibly t T iv have impo ap s an skin in e, te l e the in pr u ef a compli wher a an oa d of cated ficiencies lik c an impossibly short time frame sispr raltern than d a cr ching analy e develop in lo erate on to n specs e delib sals e a e for rgo r a propo iv unde iti ot ative a G of t 45 days ec ca and s ely em the la ting game. Another probl e ission of the APM highwal public asse is s subm both ex for s a g with make is e to e d sh t. neede ou L in is Bu , y and t a highly comp ldn’tlex t. what t th and letting ely submission bids. Virginia needs stand require who at act would ports allyalterna be tiveprove nof ne Jtooin proposa we rfor ort bus ls on io h a contr has p t d such what it x that that is ess n e d le bids busin m a d rgan sa ased y o , JPMo incre le r A the frhighly re from this process change in to take a step we captu tion Secretary back ima porta ortaInitia hburg in has proven pbe lly, Trans than redeal. ports with comple the e entity that sure eswhat x Another problemup control of thethe Our pr ted to the widening ofand d Lync APM and undergis sure to resul usiness deal.t Initially wouldn’t even release the lock with both reques, Transp atet from analysi s of Connaughton where ville an Seanortation sis the analy l interests at other East Coast o a deliber ercia Secreta If that u ry comm h as b JPMorg 2014. has o c an after ds bids l b u is groun that Cana a such the ma a on contrac m Pana in Hills d Sean Connaughton wouldn t would ntees e who did bid, ports s guara stand l n those a of and s actua r what contr name on e is no needed t tizati c are to priva r make n . There ’t even release o tion that o ports p mina ” c the deter using lock the up to “conf control e be m t of leads the h ports a migh n ions with an entitymic thatdecissure we capture the increas the informatio on t names of those who that operanstions why I busines onis sufficient to address the econo is did bid, that on of theedport ti other rcial on porti the a ground only is or all e s the of h has comme ntly, to m ng Curre T interest c. seeki ’t . s at other aEast any non state shoulgd the publi comp Coast is sure toappro denidtithe result from then that the informationtomight the wideni ’term IFF that might be made by ilit, ng sof rganThere Norfolk the idin “confus led by JPMo editadn tion. an .S. repriate rtiuming” ports. ile. rrpursu a conso ta.S are s an entire bidder is be contrac acrosguaran tng profitstual uythat ofbytime for a teesoperaPanam U ebids mize st U tCanal maxino ala ,Ifsibdi es allow after and nplent t aby to the public. Curren rg 2014. laarg bu seek analysi rg he n, tly,isitio e nts, the o T only other sufficient to addresswith reme h ga ns LLC. requi t or M T t outpu Acqu M um P enm J r.nce clear. s minim JP the econom em t ea d ic d Even n rs decisio cl e e an ns ss. n do r leads ce proce a to T the ugh en fe en determ e thoro bidder is a consortium led by JPMorgan IFF that ination ers prethat privatization ion rs ess ef APM MTade itsapr major dobusin t decis the make AVPIT r yldeseeking comp byaacould tofithess compan ’sn larglaesto theberemade ceivedany joor m deofitthe port operati ngs,VIT esw dealimight m all rg or m a IT portion al Acquisitions LLC. On topchof these backroom maxim e aw V profit al of busin ons ’s disbe d t,cta th tially ear poten ceptu epetu withMean defle Asse m Portable ralnc toe othrl aliv ize ed Gene c profits conwoul the icting w , ul is f W across e d co confl K while dmbly o an r by entire d d c itethen e operati licate t ri ar om an on. itgh lic comp r E simil an fr cing th e approp been so o IT meet riate lithe to By nu pursuit un ve o to ps thtoe P d V process has , t, ve t s woul perha t r an state that re h — n should e bill a here u ig ri ad by elsew pend r g the n lm m e ssion inconce Even nya m output with n.d ments, ar e a for th for thales paW port aer wise to dng mminimu PM —T om aallow A value ic he st uerequire actin mspappro a g party ts on the at seek ri odm ecunof and anotherr.contr a puofblthe in frco sch om On top of these g unsol stbit inaals reme takin lirepor of resetvnts laT in time requi from P rs curre rne micited orginina’s state alM rfor dg term pplenty ke ge dealing Abids the blayrg isdflawe sow os e decisio ur te ture prohi compan op struc speaher t m y ir y nia. could d s pr foelk V Virgi make eEr ic Kubackro e theg ins,Nntthe 28 whet to to g a the ty la or at s busines n d y r ll rtuni p s in st u of and l oppo B w of an ou r c n Port e .in the futur asals thoroug arearthat om resullating hpropo operate the losth and to th in usbthe h bo process has been complicated tee-o pprocess ou ofthecports enconflic cpictu tasm rgeinesta loss evby express outh nia, to le todeddeflect onda.yAPM s, ePosrt th r eratperoal ia’s ally rity Msound aAputholiting in llThe in ouop profitab rrttsm N aew gpotenti of Virgi sPoatrtpaint urg ssat monw po V“Iir rs Com ted rarttenia. esth s, Ppooealth s byopera reports on the value V lk neebusines kniearport would lik the part rt ein alnot Noew abeing wnd fo prpbe peVirgi ged os inela xhi the podefin rintway mana pare yN orion opand concess e N anibette poorl iregi pr a th .9 may elsewhe d t ct f a re there r $3 n 28e sof — of ge to in gi je o perhaps us th o to wled party ir th r la re to pl to p ll g ackno meet V on prope d We the ti ,not woutsi . in nsimilar der,.1islbi arVIT Meanw lk s topotential, nfull maintains lleion inly would hile, keed betweerVirgi the Nean ortium shmiparports Genera bcoons liat veer and whether the current orfoin while Assemb eon N th apprecia si ystructu be $3e en to t in tnernia’s their real r p$3 flawed mdmatois fo grow uniqu a party uld va lus trequire and iathan pan tecontrac anodritayorand allk y t ments cultiv opera illiluothis w entbting another oy suth for opera Mcoon es.1 , the Ro en d Wnal— ge wise en Ais terms ls th irVIT. table beoto ntNapprove ttion aprofit stmbable. sgeme accep “Ihas of Vnc roto f marran eromrin ing FTwo osve rfo e ne thriv Topera inealting isthe sound. APM paints pendin P th with opin bill r. pr$gfr3as re nl Tont ntedieffe that nt valu M rre er its would the ia onoble o e tu tu picture fo p s re AP that d ti uc uc tw in e l ports t t se curre tr e tr na r ia g a c r resultin the of b io as c ba p y g a m in ir je l a asset e fr at loss ct n, u tof e r d opportu in in V ro Rmon nity and sttoinVirgini e to r neunsolic alm rti pptern billiotFthe ate a.em house aIn ey, ntaking ed a diMcD sont W the manage s prohibi is ontvalua by theow are being poorly from hip tructu odnco rsand uheltreivGov. nlld clean le st toa tacke nedth ners not lsonne ecsn. Tcago, ga lieave abe cofe uprfronotstate dthe isdsmioA nthte lizing ininfralasited inisgetanta enboard bdaastredanosferoin e Port annnoperate s isbtieyears APM JPaM , future win nan of reaso stm hLaog ommar rlsor ifthfeatrsproposa Auth gh eht majo Taterm li t,the nenety,term vdeal ls the in to their full cpotenti ced a, rhi nersh inlig cipt sdority’ rtalth to bmilin operate repla m ni n sthat n mrt the po and en Port sh e al, o gimainta r it owof while ha ti r ir e VIT ti on s is ci st is at t V ti a f ou T tion ins tu fi d n ve la th m o n We nistra c of r ef acknow o r in ent admi re a in u ll sition te fe 20in onneop te inthere ol ity Inledge may istoastimu McD pfrhighlyonweal 10 termi late strou PM the Po better eebe to the aim aednofsin way ntrm cl ic veularseffici Virgini erivpt fr a.m inT attem hus comilli s tapo foderun, Comm aletr lirtemore in ean pa its operation A oThe e e the d th th as . is thriving b e un in Virgini k from t n s s on a, and , it n a c t profitab an it th om e m a $35 le.

IT e of ie t ti fr t, un ch co abou w V to n y t ic up is th operate hi th , d tostry an hting the Land ew free drg ffF, the in 2 t ports snot an outside woulo udipdy th anindu sr,tm thaa’s ly led b almJos veou R EeE aderpsh g atizing as thoeg legrow Rparty ript of is, theerproper oe nRsh liiv oVirgini tithan icrere)laJo toan PM define inrPortinsm sed n,arhs.igh ye ighpr amongin ak, i,cula oarf isen theat current h our pe ticng iaw,arhds forod20 arrange rain ivffeDVIT. ment sO in at orboplo artttiaccepta chhe itBle , arm luwith itse m tsic h eost g , CTwo fterms ble th wng Vdeirrsgis to ou hief O D, eu ion th in for A major reason f operati to (C it o e ol ,” of this s th the , unique APM er eh o u t rt y deal ReR EEF th st m y IT r o p tantaliz d ak po . at fo ar o it ing p st Valmar sst m years ime Rud al estaP o P n m r to nell ago, te f nt a o u Gov. ts s t. s t’s e McDon e o r ue fr u se ue m y o cleaned th eq o as in house m B ip e 0 bs nt Jo and o at 2 su rei, in co W ff icer) sburg, valuabl c sh e stim e n asset. r r to the McDonnell admini of d h a a n e ed c fo n n er ru d iz a u a ts to e ag pr to stration te tt u y t le is an thng dge O Will m Author iam and olo responto dedthe sta peting ofofef rsDe e ralPort strthat it ati ti g in the lmos thne zicinmgeereplace m arm EEF w asuent ng indudfrom als po ntner ity’s ugofCfiocirb perceati would free up aabout reivpublin oIT pthe rt itation foersco DVboard amomillion fstimula te tiOon the di dsld th hriiebu ng attemp r, RaR subseq bo t stto (C saiteler,d” to warhe arisenT$35 tee-fo more toar t rt’uts ivim e solic efficien m eal taecembe ier tec a out takian heldVePA to s ab r er lm s nannc totium tt a , e ck e ex le u ’s fieti ., at ba a o rg W n Jr iv d nsor g itohffers in uthe porrt.spInonDde eco f e, feeed b idnti o a pr oy s sa o r M ng c t. m e ther r p e stakehto gate a vi g s hu li m a ha im s rt e it n il th n for cortnered w R R EEF a ted step of A r a ar as by W M th m a ed ad or l ta ls ni s ac re N a g in gi pa n ohich cember,ndent repl July gedneresiden prizedunpreceden erate anpuen citn,atiw eneteVrir to VIT off icia t ofcth liticremtoeetisticke an soorliga De indepertiume’s fin pribution op eld the heb vidce tibyveJPM er ing th ailed 11, 2 rt.als,In an istr soeutsch ere company eerpmoin onD or woutthtak T ., execu Mah rdpohrt tiaonle. tter e -m als A a Jr th ia in o er , oc m e b ss y need cby er e T A o an l rtn b P ic te asowth a im 012 M na a priva d said in or ew it io r d at r vi k at u e Amer er c a c to rn a op th cohntpaianer dep The V te b la M r ed al dnia In havinst ne wginia ofhic A in rep e g w lo ow y al fe rm ge , eb gi te ar as n at ir r d a w ch e V ir . t a r h esin the and ricean Shippe of the Vs authenticity f of it in org it r rg o ath n o la be a pr p M N e nP to te in th , J to gw s no ar , e k, er esidenco re m Ban by and N oa entith mminalserseneebu lk

by D ertu ed),entethde aatte maannages rail and t nf irm it cdk Avmeicep T d ecIT ti e s ns r io an ov m e w at th unpr(V o to h to er th r a or in Spaipn, op th r ou Mat ope orfow on. thrtesm rator , ePo com of c lkh nypany e portd of neallls Associati onin to view rt oper inal o e rm harge the comptearm years, th MecD rt NorGov. oBnob rm inalsoin ow eneness ticpo ice. to be in c y.el seterv sofallop d “Over the past fewapemrod ti alenTtire-ow , a PA it e s. a V ricanportp New w n m n el r ss n tu , ve te e a k o AmeN N ned byove ion. ew ginia In aced fi auatth Ban thte state t thee Shenip it haasn be fosrm andy-ow foelkric ro nc orm abou arin NA 11 renpl msajoritin cognfiofrmin protecting ained, toby withinVir20th ration erns d in e ashnar thse ofmca od througeh-mth e usoen-p of nco rg r mSanpag ail oftumopeis opt erfu to ginesterm oa silos, a n t a N nd r in a o e e a to p at th t th m er u en (VITbo),ard bethcaaor e t gh r m t mance Portsmostrength. We do not op ou th o st th p , ve a s in . r e ut a s y e rf ho n’s pe orfolkfi, nancial Donnell part stassw pennanesMorgaven.ssel servic both parties teerep t itfewwithywho compo m we odo c of our own inth inutN and JP . ob M w ls hp odel of ecretary s go

ia l

editor

B

The Com mon weal th of VEd ria Selling out ou irgiito r ports nEiaditol: rial: Selling out our ports

Pub

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riva te

ort p . a V t r o o iitoionntot Va. p s ation t o i s p o p p p o Act rssvvooiicce e ADD h t r o e , t h r t a alamrt, o END W m l a on tin W U T FO M1 **** raivtiaztaiztaio p RA *** priv Tran

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REL LTERN * A A RGI NIA TING T TIVE PR A O TH POR OPO T AU E SAA LS THO R th e S ITY ecre tary of T rans port ation

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.

Art W. Moye, Jr.

The Voice of Port Industries since 1920

37

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

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

Terminals, the operator of APM Terminal in Portsmouth

additional proposals would be entertained. To keep

and the third largest terminal operator in the world at

Virginia International Terminals in public hands, VIT

the time. The press release announcing the proposal

made an offer. A number of other entities studied the

described an offer “to operate all Port of Virginia facilities

opportunity and one additional organization submitted

in Hampton Roads and related inland locations under a

a privatization proposal.

long-term concession agreement with the Virginia Port Authority.” In addition, the state-of-the-art $540 million APM Terminal in Portsmouth, which had recently been completed in 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

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

well received by Virginia Secretary of Transportation Sean Connaughton and strongly supported by the administration of Governor Robert McDonnell, which

VIT had been performing well. During its three-decade

had recently replaced 11 of 12 board members of the

tenure as The Port’s operator, container volume had

Virginia Port Authority with its patrons. The new VPA

grown 700 percent. Not surprisingly, it wasn’t spared

board acted fast, removing the VPA’s executive director,

the effects of the Great Recession, with some recent

who had been strongly endorsed by the previous board,

losses as a result. Still, VIT had strong and profitable

and replacing him with an interim leader. The Attorney

long-term contracts with most of the top 20 global

General of Virginia determined the new VPA board

container lines. However, as a publicly-run operation,

could decide whether to accept APM’s privatization

its

proposal. It seemed all the pieces were in place for a

investments that the state was not always eager to

privatized port to become a reality.

make in a depressed economy.

ongoing

success

depended

on

regular

large

Congratulations to the VMA for a Century of Service to the Maritime Industry!

38

Virginia Maritime Association

While the VMA weighed many important matters in its first 100 years, the issue of whether to support this privatization effort “was the largest decision I was ever involved with,” Moye said. Positions among the membership were strong on both sides of the issue. The VMA also quickly started hearing from those outside the organization.

“Immediately we began receiving pressure from interests on the two sides,” says David White, then the association’s vice president.” There were those telling us it was a done deal and it would be harmful to the association to interfere, and those who from day one wanted to oppose privatization. I give Art Moye tremendous credit for holding firm that VMA be very deliberative about reaching any position.”

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.”

100 years

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

39

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

Commonwealth’s

greatest

asset

when

you didn’t know what it was worth?”

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.”

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

40

Virginia Maritime Association

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

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 VPA board chairman William Fralin, Jr. as

unanimously TO END THE PRIVATIZATION REVIEW PROCESS.

saying what the VMA had determined early on: “The offers … were competitive, but not compelling…We felt there was significant upside in this port that wasn’t recognized in the offers.’”

The

decision

yielded

to

greater

oppose good,

privatization Moye

says.

“The need to build a statewide VMA organization

became

clearer

as

did

awareness and the need to move the process along for Wider, Deeper, Safer,”

®

which is the widening and deepening of

Congratulations to the VMA on 100 Years!

the harbor to 55 feet. “The port industry saw how fragile our future could be if we don’t manage this asset carefully,” he says.

Was the decision not to privatize the right choice? “It was most definitely,” Moye says. “It has given the Commonwealth the necessary time to make improvements to compete and grow the port. Now that efforts to dredge the harbor are underway, we question whether any of these positive events would have happened if privatization had occurred.”

The Voice of Port Industries since 1920

41

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

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

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

at 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 U.S.

Development in May, 2017 heralded the newest era for

Secretary of War’s request for federal funding to survey

the Hampton Roads port. It was the biggest commercial

the Hampton Roads port and desire to dredge to depths

ship that had ever visited locally, and for that matter,

of 30 and 35 feet. The news was so important locally

along the entire East Coast. Today and for the future,

that the paper’s breaking coverage that same day of the

accommodating these massive vessels by enlarging the

Wright Brothers’ first flight at Kitty Hawk had to vie with it

channel is more urgent than ever.

for space on the front page.

Deeper, Safer”

®

The phrase “Wider,

became the rallying cry to make this

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

1985

1986

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.

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

100 years

The Voice of Port Industries since 1920

43

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

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.

VMA’s

members

and

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

It

provided

congressional

first ULCV. “It wasn’t the first time it

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 community

and

the

question, ‘What will it cost?’”

financial

GIANT SHIPS

THE VMA recognized the

WOULD CHANGE THE PORT’S OPER ATING DYNAMICS. 44

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.

Original signers hold the Navigational Summit Charter.

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The Voice of Port Industries since 1920

45

The Virginia Maritime Association and the Virginia Port Authority had already begun an effort to obtain state funding to go “Wider, Deeper, Safer.”® They sought $350 million for the preliminary engineering and design at a cost of $20 million, and dredging, a $330 million endeavor.

Members of the VMA from across Virginia met with legislators to explain the importance and value of the investment. In June of 2018, even though the federal government had a nearly equal obligation for the project, the General Assembly recognized the importance of accelerating the project and agreed to include the $350 million funding in the state budget which was signed

by Governor Ralph S. Northam.

The target dredging completion date is 2024.The VPA embarked on an additional $700 million in terminal expansion projects to be finished in 2020 that includes $350 million provided by the General Assembly, for which the VMA participated in helping the VPA obtain.

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

Celebrating 100Years

Elizabeth Rivers.

“We are expanding the capacity at our terminals and deepening the Norfolk Harbor and its channels to accommodate and provide the highest levels of service,” said John F. Reinhart, the Virginia Port Authority’s CEO and executive director. “From 2014 to 2024, we will have invested nearly $1.5 billion in preparing

GREAT LAKES DREDGE & DOCK COMPANY is pleased to join the Virginia Maritime Association in celebrating 100 Years of Maritime Industry Growth.

this port for its future and making Virginia the U.S. East Coast’s leading global gateway for trade.

“The historic investments being made here are leading to the creation of a worldclass, modern, deep-water port. [They are] also helping drive the expansion of this port as an important intermodal hub for cargo moving by rail to and from the Midwest. We are committed to a long-term strategy that will make The Port of Virginia a sustainable, economic force and a reliable, efficient solution for our customers for decades to come.

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 Craney Island Eastern Expansion.

Improve the South Atlantic Ocean Channel.

GREAT LAKES DREDGE & DOCK COMPANY, LLC WWW.GLDD.COM

46

Virginia Maritime Association

Construct the 55-foot Norfolk Harbor Project.

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

1988

1989

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

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.

100 years

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.

1996 The Association advocated for and the Virginia General Assembly allocated $220,000 for one portable fire pump and additional firefighting equipment, giving the Port a total of two pumps.

1993 The Hampton Roads Maritime Association was awarded the President’s “E Star” Award for export service by the U.S. Department of Commerce.

1999

2001

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.

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

47

Partnerships are Powerful.

Congratulations to the Virginia Maritime Association on 100 years of maritime industry growth and success!

MarshMMA.com BUSINESS INSURANCE EMPLOYEE HEALTH & BENEFITS EXECUTIVE BENEFITS PRIVATE CLIENT SERVICES RETIREMENT SERVICES RISK MANAGEMENT SURETY Copyright © 2019 Marsh & McLennan Company. All rights reserved.

SunTrust Bank congratulates the Virginia Maritime Association on its 100th Anniversary.

Moran Congratulates the Virginia Maritime Association on Its Centennial

Congratulations to the VMA on 100 Years! suntrust.com ©2019 SunTrust Banks, Inc. SUNTRUST and the SunTrust logo are trademarks of SunTrust Banks, Inc. All rights reserved.

48

Virginia Maritime Association

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

For us, the VMA is the

best way to stay

connected 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.”

Congratulations to the VMA on 100 Years!

Congratulations to the VMA on 100 Years!

The Voice of Port Industries since 1920

49

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.

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.

David White

100 years

2002

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.

2004 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.

The Voice of Port Industries since 1920

51

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

Southern Chapter Meeting

The VMA has now begun preparing new generations for leadership. It has launched a Future Leaders Group for members under 40, one that is already proving successful. VMA describes the group’s purpose this way: Future Leaders participate in special programs, tours and socials designed to expose them to all the facets of the maritime industry and build their professional network.

The initiative includes a credentialing program, the Maritime

industry, and develop critical leadership skills. The certification

Leadership Certification. Those completing it have a more

prepares those who seek positions in the maritime field and

comprehensive

demonstrates to potential employers that a candidate is

understanding

of

the

maritime

industry,

are exposed to a variety of stakeholders and aspects of the

WE KEEP THE

committed to the industry.

VMA Chapter Regions Northern

VMA s n o i t a l u Congrat

FLEET MISSION-READY!

Central Shenandoah Valley

Hampton Roads

Southwestern

TÉCNICO CORPORATION AN EMPLOYEE OWNED COMPANY 831 Industrial Ave. Chesapeake, VA 23324

Norfolk, VA • Bremerton, WA • Mobile, AL • Mayport, FL• San Diego, CA Philadelphia, PA | tecnicocorp.com |757.545.4013 | FAX 757.545.4925

52

Virginia Maritime Association

Southern

(includes the Piedmont region of NC)

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.”

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

The port will likely look quite different after another 100 years. Steps required to locate windfarms off the Atlantic coast near 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.

McAllister Towing is proud to congratulate and salute the VMA on reaching its Centennial Anniversary!

The Voice of Port Industries since 1920

53

Some of the evolution will be visible. Ships calling on the port

Congratulations to Virginia MaritiMe association on its first 100 years!

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 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.

www.rubincommunications.com

Rendering of the future Craney Island full build-out.

54

Virginia Maritime Association

100 years

2005 Dredging of the harbor to 50 feet is completed, maintaining the Port’s position of offering the deepest water on the East Coast.

2006 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.

Congratulations to the VMA on 100 Years!

2007 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 billiondollar transportation plan for the state and authorized the establishment of a regional transportation authority in Hampton Roads.

The Voice of Port Industries since 1920

55

Distinguished

Service

The Virginia Maritime Association expresses sincere appreciation to the following men and women for their “Distinguished Service” and readiness to assist the Maritime Industry in promoting, protecting and encouraging Virginia’s ports.

MR. HARRY M. THOMPSON

MR. WILLIAM D. KEENE, JR.

Hampton Roads Maritime Association 1957

Norfolk Seamen’s Friend Society 1983

MR. STUART T. SAUNDERS

MR. JAMES G. PAGE

Norfolk & Western Railway Company 1961

The Hipage Company, Inc. 1984

MR. BARRON F. BLACK

MR. EDWIN J. ADAMS

Vandeventer, Black, Meredith & Martin 1962

Atlantic & Gulf Stevedoring 1986

MR. LARRY E. PENTECOST

MR. ROBERT B. CLAYTOR

United States Lines, lnc.

1963

Norfolk Southern Corporation 1990

CAPTAIN G. ALVIN MASSENBURG

THE HONORABLE OWEN B. PICKETT

THE HONORABLE HERBERT H. BATEMAN Congressman, First Virginia District 2000

MR. J.J. KEEVER Hampton Roads Maritime Association 2001

MR. ROBERT T. HASLER, JR. Hasler Group 2002

MR. GERALD L. PARKS Capes Shipping Agencies, Inc. 2003

Virginia Pilot Association 1967

Congressman, Second Virginia District 1992

THE HONORABLE PORTER HARDY, JR.

MR. BRADEN VANDEVENTER

Congressman, Second Virginia District 1969

MR. COLLISTER JOHNSON, JR.

MR. CHARLES E. BRINLEY

Congressman, First Virginia District 1970

MR. JOSEPH A. DORTO

MR. JOHN L. ROPER, II

MR. CHARLES G. ROSEMOND Wyatt Transfer 2008

MR. J. ROBERT BRAY

COLONEL DIONYSIOS “DAN” ANNINOS

Virginia Port Authority 1996

MR. GEORGE C. GARRIS, SR.

THE HONORABLE GEORGE F. ALLEN, FORMER GOVERNOR, COMMONWEALTH OF VIRGINIA 1998

MR. T. PARKER HOST, JR. T. Parker Host, Inc. 1981

Dominion Terminal Associates 2007

Virginia International Terminals 1995

Norfolk Shipbuilding & Drydock Corp.

1973

Virginia National Bank 1978

MR. DAVID R. GOODE Norfolk Southern Corporation 2006

Virginia Port Authority 1994

MR. W. WRIGHT HARRISON

Int’l Longshoremen’s Association 2005

Vandeventer, Black, Meredith & Martin 1994

THE HONORABLE THOMAS N. DOWNING

Old Dominion Stevedoring Company 1977

MR. EDWARD L. BROWN, SR.

100 years

CAPT. J. WILLIAM COFER Virginia Pilot Association 2013

MR. ROGER J. GIESINGER Hampton Roads Shipping Association 2014

PORT INDEPENDENT TRUCK DRIVERS 2015

MR. JOHN M. RYAN Vandeventer Black, LLC 2016

MRS. SHIRLEY G. ROEBUCK Gilco Properties, Inc. 2017

MR. ARTHUR W. MOYE, JR. Virginia Maritime Association 2018

MR. DAVID F. HOST T. Parker Host 2019

MR. THOMAS P. HOST, III T. Parker Host 2019

JAMES N. CRUMBLEY

MR. RICHARD N. KNAPP

Virginia International Terminals 2020 (posthumously)

Virginia International Terminals 2010

Virginia Intermodal Management 2011

MR. ROLF WILLIAMS

CrossGlobe Group 2012

U.S. Army Corps of Engineers 2009

MR. ROBERT “KIP” HINKLE

Anders Williams Ship Agency, Inc. 2000

MR. B. W. “BILL” FRANKS

MR. DANIEL GLOVER GTL Transport Company 2020

MR. RAYMOND NEWLON Hapag Lloyd (America) 2020

2010

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.

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Virginia Maritime Association

Port

Champions

The title of “Port Champion” is only awarded to individuals that without having direct business interests have embraced the maritime community with a spirit of cooperation and whose actions have substantively improved Virginia’s ports and marine transportation system.

CAPTAIN JOSEPH F. BOUCHARD U.S. Navy 2002

KAY A. KEMPER

CAPTAIN MARK S. OGLE

Kemper Consulting, Inc. 2007

U.S. Coast Guard Sector Hampton Roads 2012

CAPTAIN RICHARD J. WESTER U.S. COAST GUARD SECTOR HAMPTON ROADS 2018

CAPTAIN LAWRENCE M. BROOKS U.S. Coast Guard Sector Hampton Roads 2002

THE HONORABLE KENNETH W. STOLLE

COLONEL DIONYSIOS “DAN” ANNINOS U.S. Army Corps of Engineers 2008

MARJORIE MAYFIELD JACKSON Elizabeth River Project 2008

CAPTAIN MARTIN J. MOYNIHAN Port of Richmond 2009

Customs and Border Protection 2003

THE HONORABLE PAUL D. FRAIM Mayor, City of Norfolk 2004

COLONEL YVONNE J. PRETTYMAN-BECK U.S. Army Corps of Engineers 2005

THE HONORABLE JAMES W. HOLLEY, III Mayor, City of Portsmouth 2006

VA House of Delegates, 76th District 2013

U.S. Coast Guard Sector Hampton Roads 2009

THE HONORABLE HARRY R. PURKEY VA House of Delegates, 82nd District 2010

THE HONORABLE FRANK W. WAGNER Senate of Virginia, 7th District 2011

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.

COLONEL PAUL B. OLSEN U.S. Army Corps of Engineers 2014

CAPTAIN PATRICK B. TRAPP

COLONEL JASON E. KELLY Commander, Norfolk District, U.S. Army Corps of Engineers 2018

CAPTAIN JOHN K. LITTLE U.S. Coast Guard Sector Hampton Roads 2014

VA Senate, 8th District 2002

MARK J. LARIA

THE HONORABLE S. CHRIS JONES

CAPTAIN CHRISTOPHER S. KEANE U.S. Coast Guard Sector Hampton Roads 2015

THE HONORABLE AUBREY L. LAYNE, JR. VA Secretary of Transportation 2016

THE HONORABLE TODD P. HAYMORE VA Secretary of Commerce & Trade 2017

U.S COAST GUARD 2019

U.S. CUSTOMS & BORDER PATROL 2019

U.S. DEPARTMENT OF AGRICULTURE 2019

NATIONAL OCEANIC & ATMOSPHERIC ADMINISTRATION 2019

CAPTAIN KEVIN M. CARROLL U.S. Coast Guard Sector Virginia 2020

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

57

ENDORSEMENT LETTER

Ralph S. Northam Governor

October 30, 2020

Dear Friends: As the 73rd Governor of Virginia, it is my pleasure to offer a well-deserved congratulations to the Virginia Maritime Association (VMA) on their centennial anniversary.

Since 1920, the VMA has been “The Voice of Port Industries,” working on behalf of our maritime and supply chain industries with the Virginia General Assembly, U.S. Congress, Federal Agencies, and locally elected officials to address issues that directly affect businesses related to Virginia’s ports.

Throughout the VMA’s 100 years of service, their voice and efforts have protected the interests of our maritime industries, including unifying the regional port authorities, securing funding for road and rail infrastructure, establishing state tax incentives for cargo growth, and ending duplicate workers compensation requirements.

Additionally, in recent years they have fought for several major feats, including federal authorization for the deepening widening of Virginia’s shipping channels and securing a $350 million state bond package for terminal modernization.

Virginia’s ports are a critical link in our nation’s supply chain, supporting domestic and international commerce. Due to the strong, steady work of the VMA, our port is ranked among the busiest in the U.S. for both dry bulk and container vessel calls. A 2016 economic impact study published by the College of William and Mary revealed Virginia’s maritime industry has an economic contribution that includes over $88 billion in annual spending, the employment of 530,800 Virginians, and 10.1% of Gross State Product.

Virginia is adding significant new cargo-handling capacity at our marine terminals, improving the transportation infrastructure connecting our ports to U.S. importers and exporters, and at 55 feet, we will soon have the deepest and most efficient shipping channels on the U.S. east coast. These improvements position our port to play an even more significant role in the nation’s supply chain and in terms of its economic contributions in the years to come, and the VMA has been there every step of the way. I am confident that their continued vigilance will guide Virginia’s maritime industry to further success over the next 100 years.

Sincerely,

Ralph S. Northam Patrick Henry Building •1111 East Broad Street • Richmond, Virginia 23219 (804) 786-2211 • TTY (800) 828-1120 governor.virginia.gov

ENDORSEMENT LETTER

ENDORSEMENT LETTER

2015

2016

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.

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.

100 years

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.

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.

2017 CSX began providing double-stack rail service between Virginia’s ports and Mid-west markets.

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.

Congratulations to the VMA on 100 Years!

The Voice of Port Industries since 1920

61

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

62

CMA CGM America Colonna’s Shipyard, Inc. Compass Insurance Solutions COSCO SHIPPING lines (North America), Inc. Hampton Roads Alliance Hapag-Lloyd (America), LLC

Virginia Maritime Association

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.

COLLABORATION AND DEDICATION:

Invaluable to the VMA The Virginia Maritime Association celebrates 100 Years of

We could not have accomplished this endeavor without the

Maritime Growth in the same geographical area where Virginia

support of our membership and our sponsors. THANK YOU

began promoting commerce in 1619 by exporting tobacco to

very much for the assistance you provided.

Europe. One could say, Virginia has a consistently strong base for continued port-related growth, century after century, and the VMA is proud of its role in contributing since 1920.

100 years for any business or association is a major accomplishment and does not happen by itself. We have been privileged to have forward thinking people as part of this association from its establishment and through its continuation to serve as “The Voice of Port Industries.”

The VMA's executive committee decided in 2016 that we would establish a 2020 anniversary committee to plan the

I wish to also recognize the Virginia Maritime Association’s staff for all the work they contributed to making the 2020 recognition a success.

Your 2020 Committee hopes that this book reflects to you the growth we have accomplished, as well as what we need to safeguard and plan to be prepared for tomorrow.

Thank you for allowing me to serve as your 2020 Committee Chairperson and let us continue to work on being better together.

celebrations of our beginning, our accomplishments, and our preparation for the future.

I would like to take this opportunity to thank the members of

Raymond A. Newlon

our VMA2020 committee for their work and guidance as we planned and executed the goals set to honor our early leaders,

Chairman of the VMA2020 Committee

provide recognition of what we have achieved as an association,

VMA President, 2014 to 2016

and to be mindful of preparations for what lies ahead.

100 years

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

63

CONTENT & DESIGN Dean Goldman, Goldman & Associates Public Relations Jones Printing Service, Inc.

VMA2020 Committee Virginia Maritime Association Staff

PHOTOS COURTESY OF: ©Aerophoto America: CMA CGM Brazil (pg. 45, cover) American Shipper: Headline (pg. 36) Bay Diesel & Generator: Portrait of Rob Robbins (pg. 27) Colonna’s Shipyard: Photo of Bob Boyd (pg. 49) Crofton Industries: Crane (pg. 26), Ship Loaded Lift (back cover) Daily Press: Headline (pg. 36) Dominion Energy: Wind Turbine (cover) ©Eric L. Holland: COSCO VESSEL IMG 0849 (pg. 42) Great Lakes Dredging and Docks: Portrait of Ashley Reese (pg. 49) Hampton Roads Shipping Association: Longshoremen (pg. 26), Masked Lift Driver 2020 (pg. 64) Hooker Furniture: Sam Moore Furniture Worker (pg. 26) HRBT Expansion Project: Eastbound_Tunnel_01.jpg (pg. 65), 07_HRCP-HRBT-DRONE-09-04-20.jpg (back cover) Independent Docking Pilots: Bridge raised for vessel on southern branch by Captain Jordan (cover) Interchange Group: Trucks (pg. 26) National Archives: photo no. 6430254 (cover), photo no. 68151429 (pg. 8), photo no. 68151429 (pg. 8), photo no. 68150613 (pg. 19) Norfolk Southern: 2016Calendar_07JulyRT.jpeg (cover) Roanoke Times: Headline (pg. 36) Rubin Communications: Offshore Wind Turbine 1 (pg. 53), Offshore Wind Turbine 2 (pg. 64) Slover Library: smc-main-ph-ships-071_slover.jpg (pg. 8), smc-main-ph-people-h-01_GovernorHolton_SLOVER (pg. 29), smc-main-ph-lamberts point-035_slover.jpg (back cover) T. Parker Host: Portrait of Kelsey Host (pg. 29), Modern Coal Vessel IMG_6915 (pg. 31) TowneBank: Portrait of Morgan Davis (pg. 11) Virginian-Pilot: Headline (pg. 36) Virginia Port Authority: Areal View of Ports 2018 (pg. 2), 3 Ships at VIG (pg. 25), NIT 2018 (pg. 25, back cover), Aerial View Port 2018 (pg. 38), VA Inland Port (pg. 47), Craney Island Future Rendition Marine Terminal good buildout (pg. 54), COSCO_1 (pg. 61)

VMA Virginia Ports Annual 1925: Port Illustration (pg. 2), Aerial View of Norfolk Upper Harbor (pg. 8), Various Coal Piers, warehouses, cargo, and stock pens (pg. 10), Southgate terminals (pg. 12), VMA Virginia Ports Annual 1929: The Virginia built at Newport News Shipbuilding & Drydock (8) VMA Virginia Ports Annual 1930: Coal Pier (cover) VMA Virginia Ports Annual 1934: Drydock Ship repair President Hoover (cover), Norfolk Municipal elevator (pg. 8), President’s E Star Award (pg. 47), VMA Virginia Ports Annual 1939: Diverse Cargo in 1939 (back cover) VMA Virginia Ports Annual 1943: coal pier 1931 (pg. 6), coal pier 5 (pg.30, cover), VMA Virginia Ports Annual 1945: A Busy Pier Operation (pg. 23), coal rail yard (pg. 31) VMA Virginia Ports Annual 1949: 1949 PA Cover (pg. 30) VMA Virginia Ports Annual 1959: Cargo Cranes (pg. 24) VMA Virginia Ports Annual 1961: The Enterprise (pg. 20) VMA Virginia Ports Annual 1970: Elizabeth River Terminals (pg. 33) VMA Virginia Ports Annual 1988: 1988 Cranes (pg. 25) All the listed images are provided with permission for specific use of this publication or fall under general permissions for the Virginia Maritime Association to use when representing the industry or the association.

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.

64

Virginia Maritime Association: Container Truck (cover), Anniversary photos (pgs. 1-2, 34), LNG Work Group (pg. 4), legislative port day group (pg. 5), Gilmerton Bridge (pg. 6), Mark Coberly (pg. 18), Portrait of Harry Thompson (pg. 15, cover), Craney Island Illustration (pg. 17), George Brown (pg. 27), Sea-land Container on Train (pg. 28), Joe Dorto (pg. 31), Jeff Keever (pg. 31), Bobby Bray (pg. 32), VMA offices (33, back cover), Charters (pgs. 35-36), Art Moye Jr (pg. 37), Letter of public statement (pg. 39), 2012 finance committee meeting (pg. 40), 2012 survey results (pg. 40), Navigational Summit (pg. 45), mural (pg. 50), David White (pg. 51), Southern Chapter (pg. 52), MLCP & Future Leaders (pg. 53, cover), Raymond Newlon (pg. 63), Men Lifting Coffee (back cover), Future Leaders at the Virginia Pilots (back cover), VMA Offices (back cover)

Virginia Maritime Association

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 two-turbine 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.

THE EXECUTIVE DIRECTOR'S

Closing Thoughts In 1920, 56 business leaders of the day recognized there was

Like our founders, we cannot know what changes the next

promise in the region’s naturally deep waters and sheltered

one-hundred years will bring.

harbors which would only be recognized through collective

century begins we remain committed to providing our

efforts. Understanding a rising tide lifts all boats, in the spirit of

members with the services and information, the connections,

cooperation and collaboration they formed an alliance, today’s

and the representation and influence their businesses and

Virginia Maritime Association, under which even competitors

our industry deserve.

could come together to pursue mutual business interests and economic prosperity for their community.

However, as VMA’s second

As it was in 1920, it is still true today and for our future that VMA’s strength comes from our membership.

Our growing

The ensuing one-hundred years brought changes that may

and active membership, which values collaboration as a

have been unimaginable to our founders. As the world and

strength, carries VMA into our next century prepared to

industry changed, the VMA also continued to grow and evolve

continue steering and shaping the future; always working

to meet the challenges and seize the opportunities of the day,

to promote, protect, and encourage commerce through

as well as those on the horizon.

Virginia’s ports.

For a century, the VMA has led, lobbied for, or influenced every major development related to the port and trade. The port and industry have flourished, and today contribute over 530,000 jobs throughout the Commonwealth of Virginia.

Today’s VMA is an organization with a statewide membership connecting and representing port and supply chain interests in every corner of the commonwealth, from the farms and manufacturers to the waterfront and the marine highways that connect Virginia businesses to global markets.

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 shipto-shore cranes; giving NIT South 10 Super Post Panamax cranes.

David C. White VMA Executive Director, 2018 to Present

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.

©COPYRIGHT 2020, VIRGINIA MARITIME ASSOCIATION P.O. Box 3487 Norfolk, Virginia 23514 PHONE 757-622-2639 | FAX 757-622-6302 vma@vamaritime.com | www.vamaritime.com