VMA's Maritime Bulletin - Vol. 85 Edition 4 - April 2021

Volume 85 No. 4

April 2021

“The Voice of Port Industries” @VAmaritime

COALITION ADVANCES INFRASTRUCTURE WITH CONGRESS The Hampton Roads Infrastructure Coalition (HRIC) is advancing a $7.4B package of urgently needed investments as Congress and the Biden Administration negotiate over the possibility of investing trillions of dollars to address the infrastructure needs of the nation (see “The American Jobs Plan,” page 3). The group identified seven key areas of critically needed projects: road, active transportation, transit, technology, flood control/sea level rise, passenger and freight rail, and maritime/ Virginia’s port.

“All 450+ VMA member companies have been impacted by the pandemic and recession, and as businesses involved in Virginia’s maritime supply chain, these infrastructure improvements will improve the lives of their employees and directly support the growth of their businesses,” said David White, Executive Director of the Virginia Maritime Association (VMA), a key organization involved in initiating the development of a comprehensive package of infrastructure projects which can be advocated for through unified efforts.

With Federal funding for these projects, HRIC foresees the Hampton Roads Region emerging from the pandemic’s recession in a far stronger position to cultivate and capitalize upon new opportunities in commercial, military, and scientific investment in the U.S. Economy. Without the funding, the region risks falling further behind comparable regions in employment and economic growth.

The strategic goals of the legislation include:

AMAZON BUILDS FULFILLMENT CENTER IN HENRICO COUNTY RICHMOND | On April 21, 2021, Amazon announced plans to continue investing in Virginia by launching a new 650,000 square-foot state-of-the-art robotics fulfillment center on 199 acres of ancillary land at Richmond Raceway in Henrico County, generating over 1,000 new jobs. The facility will be the first of its kind in Central Virginia and is anticipated to launch in 2022.

“This new robotics fulfillment center in Henrico County is the latest milestone in the growing partnership between

h Enacting a very large, broad, and multi-sector package of

infrastructure investments.

h Emphasizing capacity building on surface transportation

investments.

$3.7B INVESTMENT: RAIL INFRASTRUCTURE ALEXANDRIA | On March 30, 2021, the Commonwealth of Virginia finalized agreements with Amtrak, CSX, and Virginia Railway Express, launching a $3.7 billion investment to expand and improve passenger, commuter, and freight rail in Virginia and create a vital connection in America’s national rail network between the Northeast and Southeast corridors. This partnership represents a major milestone as it allows construction to advance on significant rail infrastructure projects in Virginia.

A new $1.9B bridge will be constructed over the Potomac River dedicated to passenger rail, 386 miles of railroad right-of-way and 223 miles of track from CSX will be acquired, and more than $1 billion

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INSIDE THIS EDITION h Nauticus Clean Up Day (2) h American Jobs Plan (3)

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h U.S. Jumpstarts Offshore Wind (3)

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h Joint Chapter Meeting on May 11 (7)

h TMEIC Merges Two U.S. Operations (4)

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OFFICERS Chairman of the Board Scott Wheeler

NAUTICUS COMMUNITY CLEAN UP DAY

President Michael W. Coleman Vice Presidents George Brown Lang Williams Rolf A. Williams Executive Director & Secretary David C. White Treasurer Judy M. Barrett Assistant Treasurer Camille Cherry STAFF Vice President of Finances & Administration.............................. Sam Davis Vice President of Industry & Government Affairs....................... Will Fediw Director of Membership Development...............................Kristen Ward Executive Assistant................ Jennifer S. Deason Event Manager & Accounting Assistant............ Jennifer N. Parham Marketing Coordinator.................. Laura V. Bird Membership & Publications Coordinator...................... Susan N. Wisniewski For Questions about the Bulletin or Advertising laura@vamaritime.com - 757.628.2667

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Photo courtesy Nauticus

VMA & HRSA sponsored “Planet or Plastic?” and the Community Clean Up Day

NORFOLK | On April 3, 2021 Nauticus held a community clean up day in conjunction with hosting the National Geographic’s “Planet or Plastic?” exhibit run from January through April 25, 2021. Over 100 community members participated, including members of Sail Nauticus aboard their fleet boats, members of the Downtown 100 that worked together in small groups along the Elizabeth River Trail, and a Harbor Park clean up hosted by Keep Norfolk Beautiful.

Groups were limited to under 25, per COVID regulations, but connected virtually by sharing their stories on social media. Those who participated were given discounted admissions to Nauticus.

The Virginia Maritime Association and Hampton Roads Shipping Association are proud to have sponsored these events that brought public recognition to protecting the waterways that provide transportation and commerce to Virginia. They are also sponsoring the next exhibit starting June 12, “Going Places: The Technology of Transport.”

VMA AND PROPELLER CLUB’S MARITIME MIXER On March 22, 2021, the Propeller Club, Port of Norfolk and the Virginia Maritime Association co-hosted a virtual maritime mixer with special guest Stewart Elliot of Elastec. He dove into the process of cleaning up oil spills on waterways, in theme with the day the event was held on, Earth Day. The event was well received with trivia winners expecting prizes headed their way.

INFRASTRUCTURE ADVANCEMENT (CONT.) h Providing local credit for the $4.65B in investments to-

date by Hampton Roads Transportation Accountability Commission (HRTAC).

h Giving preference on funding eligibility to regions of the

nation whose transportation networks disproportionately benefit the U.S. military.

h Ensuring that the I-64 corridor receives parity as a corridor

of National Significance comparable to investments provided to I-81 and I-95.

h Ensuring that any investments for specific community

projects for Hampton Roads should come from HRIC’s list which has been vetted and prioritized by its regional agencies including the Hampton Roads Planning District Commission, the Hampton Roads Transportation Planning Organization, and the Hampton Roads Transportation Accountability Commission.

The following organizations contributed to the formation of HRIC’s prioritized project list: Fort Monroe Authority, Greater Peninsula Workforce Board, Greater Williamsburg Chamber and Tourism Alliance, Hampton Roads Alliance, Hampton Roads Business Roundtable, Hampton Roads Chamber of Commerce, Hampton Roads Military and Federal Facilities Alliance, Hampton Roads Planning District Commission, Hampton Roads Transit, Hampton Roads Transportation Accountability Commission, Hampton Roads Transportation Planning Organization, Hampton Roads Workforce Council, Old Dominion University, Reinvent Hampton Roads, the Virginia Maritime Association, Virginia Peninsula Chamber of Commerce, and the Virginia Port Authority.

AMERICAN JOBS PLAN

U.S. JUMPSTARTS OFFSHORE WIND

WASHINGTON, D.C. | On March 31, 2021, the White House announced The American Jobs Plan, an investment designed to create millions of good jobs, rebuild the country’s infrastructure, and keep the United States competitive with other leading nations.

WASHINGTON, D.C. | On March 29, 2021, the White House announced a set of actions to catalyze offshore wind energy development, strengthen the domestic supply chain, and generate job creation.

This historic public investment will invest about 1 percent of GDP per year over eight years, to upgrade the nation’s infrastructure, revitalize manufacturing, invest in basic research and science, shore up supply chains, and solidify our care infrastructure. In total, the plan will invest about $2 trillion this decade.

Some of the infrastructure updates include fixing highways, rebuilding bridges, upgrading ports, airports and transit systems, revitalizing manufacturing, securing U.S. supply chains, investing in R&D, and training Americans for the jobs of the future. The plan includes an additional $17B investment for inland waterways, coastal ports, land ports of entry, and ferries, which are all essential to the nation’s freight; a $50B investment to create a new office at the Department of Commerce dedicated to monitoring domestic industrial capacity and funding investments to support production of critical goods; and another $50B for semiconductor manufacturing and research, as called for in the bipartisan CHIPS Act.

According to the FACT sheet released with the announcement, “The President recognizes that a thriving offshore wind industry will drive new jobs and economic opportunity up and down the Atlantic Coast, in the Gulf of Mexico, and in Pacific waters. The industry will also spawn new supply chains that stretch into America’s heartland, as illustrated by the 10,000 tons of domestic steel that workers in Alabama and West Virginia are supplying to a Texas shipyard where Dominion Energy is building the Nation’s first Jones Act compliant wind turbine installation vessel.”

Coordinated steps in this plan include: first, advance ambitious wind energy projects to create good-paying, union jobs; second, investing in American infrastructure to strengthen the domestic supply chain and deploy offshore wind energy; and third, supporting critical research and development and data-sharing.

The details of each step are available on the fact sheet at whitehouse.gov.

The detailed fact sheet is available at whitehouse.gov

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TMEIC MERGES TWO OF THEIR U.S. OPERATIONS ROANOKE | On April 1, 2021, TMEIC Corporation announced the merger of two of their U.S. operations, TMEIC Power Electronics Products Corp. in Katy, Texas, and TMEIC Corp. in Roanoke, producing a brand new entity TMEIC Corporation Americas. The company says the change is meant to combine technical and engineering capabilities, and improve efficiencies in sourcing, import-export and project coordination operations.

During the merger, Dale Guidry is stepping down as President and CEO, naming Manmeet S. Bhatia to be his successor.

Bhatia, who lives in Roanoke, will lead the new U.S.-based operation, following a history of leadership roles at the Roanoke company before being named COO in 2019.

TMEIC, a VMA Member, provides unique system solutions including variable frequency drives, motors, photovoltaic inverters and advanced automation systems for a wide range of industrial applications.

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AMAZON (CONT.) Amazon and Virginia and reinforces our standing as both a technology hub and a leader in supply chain management,” stated Governor Ralph Northam.

“Amazon has been proud to call Virginia home since 2006,” said Alicia Boler Davis, Amazon’s Vice President of Global Customer Fulfillment. “Collectively it takes a strong workforce and local support network to serve our customers across the Commonwealth and the region.”

Since 2010, Amazon’s investments have contributed an additional $17.5 billion to Virginia’s economy and helped create over 52,100 indirect jobs on top of Amazon’s direct hires.

“Amazon’s growing presence in Virginia is helping create jobs, fuel the state’s economy, and build the amount of cargo moving through The Port of Virginia,” said Virginia Port Authority CEO and Executive Director Stephen A. Edwards.

RAIL INVESTMENTS (CONT.) will be invested in additional infrastructure improvements by the Commonwealth. These investments will allow Virginia to expand Amtrak and VRE services, create a pathway for the separation of freight and passenger rail in Virginia, and preserve future rail corridors. The Commonwealth of Virginia and Amtrak, as well as state and regional partners, are funding the initiative.

Over the next ten years, this unique partnership will: • Double Virginia-supported Amtrak trains providing nearly hourly service; • Increase VRE commuter service by 60 percent;

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May 27, 2021 Interactive Target Golf Game

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• Lay the foundation for a Southeast High Speed Rail Corridor; • Preserve an existing freight corridor between Doswell and Clifton Forge for future east-west passenger service; and • Create the potential to expand rail to all parts of the Commonwealth.

The Commonwealth and Amtrak are also planning a longterm partnership for six new state-supported daily round-trips, and Amtrak will be Virginia’s exclusive provider of intercity passenger rail service along the I-95 corridor for at least 30 years.

In addition, the $7.3B American Rescue Plan, recently passed

by Congress, will get furloughed Amtrak employees back to work, restore daily long-distance service, and help states cover lost revenue in state-supported routes. It also includes critical funding for transit and rail networks and to keep people connected to jobs, health care, and essential needs and services during the pandemic.

VESSELS BY TYPE Feb-21

PORT OF HAMPTON ROADS TEU’S

YTD-20

Feb-20

Arrive

Arrive

Arrive

TOTAL TEUS: PAST SIX MONTHS

YTD-19 Arrive

Current (2021)

BULK

13

39

15

Last Year

37 280000

COAL

37

90

37

109 260000

CONTAINER

122

342

103

312

GENERAL

12

25

10

20

PASSENGER

0

0

0

0

RORO

7

20

8

27

TANKER

13

TOTAL

30

204

15

546

240000

220000

200000

180000

OCT

NOV

546

JAN

FEB

March

3 month

2021

279,514

799,009

2020

219,315

654,365

41

188

DEC

MAR

PORT STATISTICS | MARCH 2021

300000

Source: Virginia Port Authority

ULTRA LARGE CONTAINER VESSELS (ULCV) 7

ULCV

25

3

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VMASYMPOSIUM

INTERNATIONAL TRADE

DISTRIBUTION OF COAL DUMPINGS

HAMPTON ROADS REGION (IN NET TONS OF 2,000LBS)

COAL DUMPINGS: PAST SIX MONTHS Current (2021)

Last Year

2900000

Sept. 29-Oct. 1, 2021

2700000 2500000 2300000 2100000 1900000 1700000 1500000

OCT

NOV

DEC

JAN

FEB

MAR

Mar-2021

**3 month 2021

Mar-2020

3 month 2020

TOTAL

2,352,243

6,479,599

2,877,824

8,291,921

NS

722,656

2,404,000

1,276,881

3,829,364

Pier IX

648,710

1,148,515

469,279

1,412,577

DTA

980,876

2,927,084

1,131,665

3,049,979

Source: Coal figures compiled by coal terminals & third party sources

www.VAmaritime.com/Symposium

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ASSOCIATION IN ACTION VMA’s activities in March were dominated by three areas of effort: helping members obtain COVID-19 vaccinations, federal infrastructure investment, and offshore wind.

about the results of the 2021 legislative session. Then regional breakout sessions allowed for more one-on-one and localized discussions with legislators in different regions of the state.

Throughout March, VMA continued efforts which began in January to raise the priority of our industry for COVID-19 vaccinations and to help VMA members obtain vaccination appointments at local health departments. Several member companies have reported that because of VMA’s work, their employees received vaccinations sooner than they would have otherwise.

VMA continues to prioritize our work and partnerships to position Virginia to become a hub for offshore wind. In March, this included our participation in the efforts of the Hampton Roads Alliance, a task force led by Dominion Energy, and a meeting of the Commonwealth’s Offshore Wind Task Force. The highlight was participation in a small roundtable discussion with Senator Tim Kaine to update him and suggest actions the federal government could take to accelerate the pace of development and growth of offshore wind in Virginia and beyond.

President Biden signed the $1.9 trillion American Rescue Plan Act into law on March 11. In the final days of Congressional negotiations, the VMA joined with others requesting $3.5 billion for the newly enacted Maritime Transportation System Emergency Relief Program to bring much needed relief to the maritime industry in light of the impacts of the COVID-19 pandemic, and to eliminate amendments to the Longshore Harbor Workers Compensation Act (LHWCA) which would have been precedent setting and costly for maritime employers. The final bill did not include the requested funding, nor did it include the harmful amendments to the LHWCA. Understanding that Congress would next turn its attention to infrastructure, the VMA initiated discussions with other organizations about developing a comprehensive regional infrastructure package inclusive of port, waterways, and related freight movement projects. During the course of the month, a coalition of influential organizations was formed, and communications were initiated to obtain input and build support from members of the Virginia Congressional Delegation.

Also on the legislative front, the annual Port Day with the General Assembly was held March 23 as a virtual event. It began with a panel of four senior legislators speaking with the membership

On March 23, Virginia Secretary of Transportation Shannon Valentine convened the inaugural meeting of the Virginia Freight Advisory Committee (VA-FAC). Secretary Valentine established VA-FAC to create a forum to communicate and engage with public and private partners to understand needs, inform policy, and advocate for freight to achieve a dynamic transportation system that creates economic opportunity for Virginia and the nation. VMA’s David White has been appointed to the VA-FAC, and its roster also includes several VMA members.

Other venues in which VMA represented the membership during March included a meeting of James River navigation stakeholders, the Hampton Roads Business Roundtable, a semi-annual meeting of the National Association of Maritime Organizations, the LNG work group, the Military Economic Development Advisory Committee, the Cyber Security Subcommittee of the Area Maritime Security Committee, and as a sponsor of the annual Governor’s Conference on Agricultural Trade.

COMMITTEE UPDATES COMMUNICATIONS & OUTREACH (3/9): Kemper Consulting gave a general overview of the 2021 Session, to include specific legislation that the VMA monitored and actively lobbied for or against. An update was provided on the Norfolk Harbor Channel dredging project regarding federal appropriations, to include potential Infrastructure Package inclusion considerations. Further discussions were had on funding of the Albemarle & Chesapeake Canal portion of the AICWW, the VMA’s lobbying efforts against proposed amendments to the Longshore & Harbor Worker’s Compensation Act, and final details regarding VMA’s Virtual Port Day event.

MEMBERSHIP (3/9): The Membership Committee finalized retention calls for the quarter. The committee reviewed the importance of these calls and how they relate back to the overall strategic plan of the Association, specifically for membership. The committee will continue their retention efforts by launching the next set of care calls in April. A goal of the care calls is to help our members stay engaged in what is upcoming, so Jennifer Parham, Events Manager, joined the committee meeting to share an update

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on what events members could expect to attend virtually and inperson in the upcoming months.

TUG & BARGE (3/10): The meeting agenda included regular reminders and discussions regarding Sub Chapter M, and bridge operations. U.S. Coast Guard reviewed Bridge Allision reports, and HRSD introduced the HRSD SWIFT Pipeline. The committee also discussed USACE Funding for the Atlantic Intracoastal Waterway, and potential Chesapeake Bay No Discharge Zone.

EXECUTIVE COMMITTEE (3/15): The committee discussed the February 12 Feeding VA: Centennial Finale & Charity event which raised over $105,000 for Virginia food banks and was informed of VMA’s receipt of a PPP loan. The committee discussed and agreed to begin planning for the resumption of in-person events, while taking appropriate precautions. The budget for the Maritime Issues Council PAC was reviewed and approved. The committee received an update on VMA’s efforts to work with other organizations to advance VMA priority projects in a regional infrastructure package as Congress works on infrastructure investment legislation.

Photo by: Independent Docking Pilots

COMMITTEES (CONT.) OFFSHORE WIND (3/18): Project updates were provided by both Avangrid Renewables and Dominion Energy, and an overview of East Coast ports seeking to establish offshore wind supply chain infrastructure. Crowley Marine Services gave a presentation on their new Energy Division, and the U.S. Coast Guard provided an update on the status of navigation routing measures being considered under the current ACPARS/PARS study. Future staffing needs for U.S. Coast Guard personnel for offshore wind oversight was also discussed.

NEW ANCHOR NEXANS HIGH VOLTAGE USA INC. EPCI Submarine & Underground High Voltage Electric Transmission System SILVER ANCHOR 1716 Bushy Park Road Goose Creek, SC 29483 www.nexans.com h Emmanuel J. Martin Lauzer Business Development Director (843) 481–1700

ADDITIONAL REPS HOST AGENCY, LLC Steamship Owners, Agents, Operators 150 W. Main Street, Suite 1600 Norfolk, VA 23510 www.hostagency.com h Nathaniel Morgan Vice President, Agency Operations (757) 627–6286

nate.morgan@hostagency.com

emmanuel.martin lauzer@nexans.com

NEW MEMBERS GREENFIELD Site Selection and Economic Development Consulting 300 Cedar Lane Williamston, NC 27892 www.consultgreenfield.net

CHAPTER UPDATES JOINT VIRTUAL CHAPTER MEETING TO BE HELD ON MAY 11 The Virginia Maritime Association is excited to bring you another virtual joint chapter meeting discussing the important relationship between Virginia’s agriculture/forestry industries and international trade.

Keynote speaker, Brad Copenhaver, Deputy Secretary of Agriculture with the Office of Governor Ralph Northam, will discuss how the industry is performing, the challenges the sector is facing, which products are experiencing exponential growth, and opportunities for business. Brad Copenhaver will also be joined in the Regional Breakouts by Charles Green, Deputy Commissioner with the Virginia Department of Agriculture and Consumer Services (VDACS), and Rob Davenport, Director Division of Marketing and Development with the Virginia Department of Agriculture and Consumer Services (VDACS). Attendees will also receive an update from the Port by Kara Matzko, Senior Manager MidAtlantic & Strategic Accounts Relations with Virginia International Terminals, LLC.

h Mary P. Lilley Partner

(252) 217–9745 mlilley@greenfield.biz

VIRGINIA’S GATEWAY REGION Government: City, State, Federal 256 E. Ellerslie Avenue, Suite D Colonial Heights, VA 23834 www.gatewayregion.com h Keith Boswell President/CEO (804) 732–8971

kboswell@gatewayregion.com

SOUTHERN BANK Banks/Investments and Mortgage Loans 403 Boush Street Norfolk, VA 23510 www.southernbank.com h Adam T. Jobe Future Leader Vice President/Norfolk City Executive (757) 446–6900 adam.jobe@southernbank.com

VIRGINIA PORT AUTHORITY Port and Industrial Development Organizations 600 World Trade Center Norfolk, VA 23510 www.portofvirginia.com h Patrick Koch Marine Operations Manager (757) 683–8000 pkoch@vit.org

MAIN OCEAN 3PL, Warehouse 5801 N. Rhett Avenue Hanahan, NC 29410 www.mainocean.com

WATERWAY SURVEYS & ENGINEERING, LTD. Engineers/Naval Architects/Surveyors 321 Cleveland Place Virginia Beach, VA 23462

h Greg Heard Chief Operating Officer (843) 203–2972

h Rebecca Franceses Senior Environmental Scientist (757) 490–1691

greg.heard@mainocean.com

beccaf@waterway.net

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PRESORTED STANDARD U.S. POSTAGE PAID NORFOLK, VA PERMIT NO. 1930

P.O. Box 3487 Norfolk, Virginia 23510

CLUB CONTACTS: Customs Brokers & Int’l Freight Forwarders Assn.

Tiffany Coffey • tiffany.coffey@jas.com Hampton Roads Coal Association Blair Priest • 757-668-1510 www.hrcoal.org Hampton Roads Global Commerce Council Melinda Mathews • 757-217-5249 www.hrgcc.org

Hampton Roads Traffic Club Dennis Wilson• 757-543-1941 www.HamptonRoadsTrafficClub.org

Tidewater Motor Truck Association Marguerite Frier • 757-558-7614 www.tmtava.org

Propeller Club - Port of Norfolk Camille Crofton Cherry www.PropellerClubNorfolk.org

Virginia Ship Repair Association Sylvia Bell • 757-233-7034 www.VirginiaShipRepair.org

Shenandoah Valley Traffic Club Chad Brant • 540-398-9923

Virginia International Business Council www.vaibc.org

DISCOVER UPCOMING EVENTS AT VAMARITIME.COM/EVENTS

Anchor Members P L AT I N U M A N C H O R S

Bay Diesel & Generator CV International, Inc. Greater Richmond Partnership, Inc.

GOLDEN ANCHORS T. Parker Host VEDP | International Vandeventer Black LLP Virginia Pilot Association VHB S I LV E R A N C H O R S

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AdvanSix CP&O, LLC Avangrid Renewables Enviva Kitty Hawk Offshore Wind Great Lakes Dredge & Dock BDO USA Marine Oil Service, Inc. Capes Shipping Agencies Norfolk Oil Transit CMA CGM America (LLC) Pender & Coward, P.C. Colliers International Port City Transportation Corman Kokosing SeaGate Terminals, LLC Construction Company

SunTrust Bank, Truist Técnico Corporation Tidewater Staffing, Inc. TMEIC Corporation Universal Leaf Virginia Business VA Dept. of Energy Western Fumigation