VMA's Maritime Bulletin Edition 87 Vol. 10

Volume 87 No. 10

December 2023

“The Voice of Port Industries” @VAmaritime

VIRGINIA IS A MARITIME ECONOMY NORFOLK, VA | Virginia’s maritime industry is responsible for nearly 730,000 jobs and more than $8 billion in state and local taxes, shows a recently released economic impact study from The College of William & Mary that examines the entirety of the state’s maritime industry.

repair business activities, deep-sea cruise ship operations, and other services in the maritime environment.

The Virginia Maritime Association (VMA) and the Virginia Port Authority commissioned the college’s Raymond A. Mason School of Business to produce a comprehensive report on the statewide economic impacts of Virginia’s commercial ports and maritime industry.

This independently prepared report documents the fiscal year 2022 (July 1, 2021 – June 30, 2022) economic and fiscal impacts of the entire Virginia maritime industry including all aspects of transporting, handling, storing, and processing domestically and internationally traded goods through Virginia’s public and private port operations. The analysis measured containerized commodities, dry and liquid bulk shipments, and breakbulk cargos. The report also encompasses Virginia’s shipbuilding and

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AGENCIES STRIKE DEAL BALANCING DREDGING NEEDS WITH WILDLIFE STUDIES IN JAMES RIVER NORFOLK, VA| On December 8th, 2023, COL Brian Hallberg, Commander, U.S. Army Corps of Engineers (USACE) Norfolk District, and Commissioner Jamie Green, Virginia Marine Resources Commission (VMRC), signed a Memorandum of Understanding (MOU) at the 26th Annual James River Partnership meeting to enhance the management of dredged material placement in the James River while promoting environmental sustainability and fisheries management.

Photo: USACE

The MOU provides the basis for the USACE to collaborate with VMRC on a multi-year effort to gather scientific data and determine the potential impacts of dredged material placement in the middle and lower James River on anadromous fish passage.

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INSIDE THIS EDITION

h Katoen Natie Norfolk Expansion (3)

h Association in Action (6)

h VMA Annual Business Meeting (2)

h Port Statistics (5)

h VMA New Members (7)

h Senator Warner Roundtable (3)

h BOEM Offshore Wind Proposal (5)

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Photo by: InterChange

VMA ANNUAL BUSINESS MEETING OFFICERS Chairman of the Board Michael Coleman President Judy Barrett Vice Presidents Lang Williams Capt. Kenneth Flowers Capt. Whiting Chisman Executive Director & Secretary David White Treasurer Camille Cherry Assistant Treasurer Tracy Gregorio STAFF Senior Vice President....................... Will Fediw Vice President of Finance & Administration.............................. Sam Davis Director of Membership Development............................ Kristen Greene Executive Assistant.................... Shayla Prince Event Manager & Accounting Assistant................ Jennifer Parham Marketing Manager ................ Jennifer Deason Membership & Publications Coordinator........................... Susan Wisniewski For Questions about the Bulletin or Advertising jdeason@vamaritime.com - 757.628.2667

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NORFOLK, VA | The Virginia Maritime Association held it’s Annual Business meeting on December 4. Membership received an overview of the Association’s activities over the previous year, port and economic development highlights, emphasized the many ways VMA members are Better Connected, Better Informed, and Better Represented.

David White, executive director, highlighted the pivotal role the maritime industry plays in Virginia’s economy, constituting approximately 20% of the state’s employment. White emphasized Virginia’s prominence in the maritime sector, boasting the nation’s largest shipbuilding and repair industrial base, second-largest port by tonnage and the third-largest by container volume on the East Coast. The state handles significant coal exports, hosts the world’s largest naval base, and is set to launch the largest offshore wind project in federal waters in 2024.

A study commissioned by Virginia Maritime Association and Virginia Port Authority by William & Mary’s Raymond A. Mason School of Business was announced and revealed that nearly 730,000 jobs in Virginia are linked to the maritime industry. Despite the challenges of the pandemic, the port’s container operations grew by 32% between 2020 and 2022. White underscored the strategic focus on workforce development, with maritime careers expected to grow by 11% over the next decade.

During this meeting, VMA held the annual election of Officers and Directors. Please join us in welcoming new Directors Jeremy Bridges, Hampton Roads Shipping Association; Christopher Garcia, Titan America; Mike Hopkins, Fairwinds Landing; Marc Marling, Cargomatic; Cody McMahan, T. Parker Host; and Kennis Sigmon, QED Systems.

The Virginia Maritime Association continues to expand its influence, recently

establishing its fifth chapter in Northern Virginia. Our Maritime Leadership Certificate Program (MLCP) starts its fifth class in March 2024. The program saw a significant increase in applicants for this next class. The program continues the culture of collaboration giving the port its competitive advantage and building a strong network of industry leaders.

VMA actively contributes to educational initiatives, supports the development of maritime schools, and advocates for the success of offshore wind projects.

Key achievements for VMA in the past year, include securing funding in the state budget for talent development, infrastructure projects, and an inland port in Southwest Virginia. Looking forward, the association emphasizes the importance of diversification, innovation, and modernization to meet the evolving demands of supply chains and national security.

“A rising tide lifts all ships is something that has served this port very well,” White said, “and we are intent on doing everything that we can to perpetuate it.”

VMA HOSTS SENATOR WARNER FOR MARITIME LEADERSHIP ROUNDTABLE Colonna’s Shipyard, CP&O, Crowley, Dominion Energy, Fairlead/Fairwinds Landing, Givens, Interchange Group, McAllister Towing, Norfolk Tug, Perdue Agribusiness, The Port of Virginia, Tecnico, Titan America, Turman Wood Group, and ZIM underscored the collaborative nature of the event.

Photo: Shana Oshinskie (Warner)

NORFOLK, VA | Virginia Maritime Association welcomed Senator Mark Warner for a Maritime Leadership Roundtable, providing a platform for discussions on key maritime and supply chain topics. The dialogue with Senator Warner and leaders from the maritime industry covered subjects such as dredging, offshore wind, shipbuilding and repair, workforce development, and other timely issues.

The participation and dialogue with 40 leaders from organizations including Berkshire Hathaway Energy, Colliers,

Photo: Shana Oshinskie (Warner)

Virginia Maritime remains committed to facilitating dialogue, collaboration, and progress within the maritime and supply chain sectors, ensuring that members are Better Connected, Better Informed, and Better Represented. The Maritime Leadership Roundtable served as a valuable platform for exchanging insights, addressing challenges, and exploring opportunities for growth and development.

KATOEN NATIE NORFOLK $59.9M EXPANSION RICHMOND, VA | On November 20, 2023, Governor Glenn Youngkin announced Katoen Natie Norfolk Inc.’s, a plastics and polymers warehousing and distribution company, plan to invest $59.9 million to expand in the City of Norfolk. The expansion includes a 450,000-square-foot warehouse, a rail yard, and an extension of the existing rail spur to meet growing demand.

Virginia successfully competed against Georgia and South Carolina for the project, which is expected to generate 76 new jobs. Key factors for choosing Norfolk for their expansion were its central location, skilled workforce, and dual rail service.

Governor Youngkin expressed enthusiasm about Katoen Natie Norfolk’s expansion, stating that it aligns with Virginia’s status as a premier supply chain destination. The Commonwealth’s outstanding logistics advantages, access to The Port of Virginia, and a robust workforce have contributed to the success of Katoen Natie Norfolk over the past decade.

Photo: City of Norfolk

Founded in 1854 and headquartered in Belgium, Katoen Natie is an international logistics service provider and port operator present in 35 countries across five continents. The Virginia Economic Development Partnership, in collaboration with various entities, played a crucial role in securing the project for Virginia. Katoen Natie Norfolk Inc. is eligible for state benefits from the Virginia Enterprise Zone Program and the Virginia Jobs Investment Program.

Source Office of Governor, Commonwealth of Virginia

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Photo by: Dominion Energy

IMPACT STUDY CONT.

MOU CONT.

“This is a maritime asset unlike any other,” said David White, VMA’s Executive Director. “This is a very diverse, unique harbor that includes the second largest commercial port on the [US] East Coast, the world’s largest naval base, the nation’s largest shipbuilding and ship repair industrial base, the nation’s largest offshore wind project, and a growing cruise port. This report affirms that the fortunes of Hampton Roads and all of Virginia are tied to our ports and maritime industries. We are a maritime economy, and our best opportunities for growth and security will come from continuing to innovate and capitalize on these strengths that make us unique and help drive economic investment and job growth across Virginia.”

In addition, the USACE and VMRC will collaborate on innovative methods to increase the beneficial use of dredged material, with a specific focus on fine-grained materials removed from the James River federal navigation channel.

Through the commissioning of this study, the Virginia Maritime Association and Virginia Port Authority aimed to quantify and demonstrate the connections and dependencies that Virginia communities and businesses have on port facilities the related jobs and wages, the generated tax revenues, and the overall windfalls derived from waterborne trade and maritime industrial activities.

The James River is a critical navigation corridor for Virginia’s maritime economy, with multiple public and privately held commercial marine terminals relying on the channel. Thousands of barges and deep-draft vessels navigate the James River each year moving containers, bulk aggregates, bulk liquids, and other cargos that drive Virginia’s continued economic growth. In recent years, shoaling in certain portions of the river caused draft restrictions to be enacted, limiting the size of the vessels that could safety transit the river as well as the amount of cargo they could carry. While attempting to address the shoaling through maintenance dredging, the USACE was limited by the TOYR and unable to adequately remove the material.

This report provides the findings to encourage business attraction and build public awareness around the economic engine of Virginia’s ports and those whose livelihoods are tied to them.

To view the full report, click here.

UPCOMING VMA EVENTS Register at VAmaritime.com/events January 25, 2024, 5:00 PM Maritime Mixer Chick’s Oyster Bar Virginia Beach, VA Standard Admission: $55 Member Early Bird: $45 by 1/18

February 1, 2024, 10:00 AM Anchor Orientation Virtual Admission: Free

February 6, 2024, 10:00 AM Member Orientation Virtual Admission: Free

February 28, 2024, 7:15 - 9 AM Maritime Membership Breakfast Briefing Norfolk Yacht & Country Club Norfolk, VA Standard Admission: $55 Member Early Bird: $45 by 2/22

From a technical standpoint, the MOU will lift all time-of-yearrestrictions (TOYR) associated with the overboard placement of dredged material in portions of the James River during migration periods of select endangered species for eighteen months, ensuring needed year-round maintenance dredging and enabling further studies on endangered fish populations. The work would begin in the 2025 dredging season.

Having led this initiative behind the scenes with relevant stakeholders since December of 2020, the Virginia Maritime Association was also present to witness the event. “We’re thrilled to see the MOU signed as an effort to promote both the maintenance of safe, reliable navigation on the James River, as well as the further study and understanding of our native endangered species,” said Will Fediw, the Association’s Senior Vice President. “We are proud of a track record that shows that we can collectively solve problems in the Commonwealth with the right people in the room working together,” he said.

Photo: USACE

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DISTRIBUTION OF COAL DUMPINGS

VESSELS BY TYPE

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

Source: Virginia Port Authority

**11 month 2023

Nov 2022

11 month 2022

Nov-23

YTD-23

Nov-22

YTD-22

TOTAL

3,211,900

32,180,390

2,586,206

29,705,359

Arrive

Arrive

Arrive

Arrive

**NS

1,065,392

11,832,321

949,660

10,919,633

Pier IX

785,210

7,377,936

569,449

7,188,466

BULK

15

167

19

198

DTA

1,361,298

12,970,134

1,067,097

11,597,260 COAL

48

453

38

327

CONTAINER

131

1524

134

1185

GENERAL

8

78

7

85

PASSENGER

2

38

7

38

RORO

4

53

5

57

TANKER

5

38

6

69

TOTAL

213

2351

191

2150

ULCV

14

164

12

114

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

PORT OF HAMPTON ROADS TEU’S TOTAL

Nov-2023

**11 month 2023

Nov-2022

11 month 2022

276,005

3,019,441

285,943

3,429,266

Source: Virginia Port Authority

CUSTOMS RECEIPTS VIRGINIA CUSTOMS DISTRICT

TOTAL

Oct 2023

**10 month 2023

Oct-2022

10 month 2022

$156,779,146

$1,522,200,605

$164,737,660

$1,305,061,882

PORT STATISTICS | NOVEMBER 2023

Nov 2023

Source: Virginia Port Authority

ULTRA LARGE CONTAINER VESSELS (ULCV)

BOEM PROPOSES SALE OF OFFSHORE WIND LEASE OFF VIRGINIA BEACH COAST miles from Virginia Beach. The proposal aims to foster the growth of the American offshore wind industry and aligns with the Biden-Harris administration’s commitment to deploying 30 gigawatts of offshore wind energy capacity by 2030.

WASHINGTON, DC | In a significant move towards a clean energy future, the United States Department of the Interior has unveiled plans for an offshore wind lease sale in the Central Atlantic, including an area situated approximately 35 nautical

The sale encompasses Lease Area C-1 off the coast of Virginia, spanning 176,505 acres. If approved, the operating lease for this site will extend for 33 years, with the potential to power over 2.2 million homes. The Bureau of Ocean Energy Management (BOEM) is spearheading this initiative, reflects collaborative efforts with the National Oceanic and Atmospheric Administration’s National Centers for Coastal Ocean Science.

In October, a 176-turbine wind farm off the coast of Virginia Beach received federal approval, marking the fifth commercial offshore wind project sanctioned by the Biden administration.

Construction is slated to commence next year, with completion anticipated by the end of 2026.

Hampton Roads stands to benefit from the potential economic and environmental impacts. As part of the broader Bidenomics and Investing in America agenda, this initiative contributes to rebuilding infrastructure, driving private sector investments, and creating jobs in the clean energy sector.

Source U.S. Dept. of the Interior

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Photo by: Independent Docking Pilots

ASSOCIATION IN ACTION Simply stated, active VMA members are Better Connected, Better Informed, and Better Represented. This segment of the Bulletin aims to provide insights into some of the ways in which the interests of VMA members were Better Represented during the previous month.

As anticipated, November’s elections resulted in historic changes to the Virginia General Assembly. Democrats gained very narrow control of both chambers, the House and Senate. Nearly one-half of the legislature will have less than 4 years of legislative experience, and the departure of experienced legislators resulted in a combined loss of 670 years of institutional knowledge. In preparation to maintain industry influence in this new legislature, over the preceding months VMA has arranged or had a significant part in over 50 port tours, meetings, and events to speak with and educate most of those who will be in the 2024 legislature about our industry.

•

Protecting and advancing commercial navigation was one theme of much of VMA’s activities in November, including:

•

Facilitating a workshop addressing a variety of matters where railroad bridges cross the branches of the Elizabeth River and affect commercial vessel traffic.

•

Seeking support from the Virginia Congressional Delegation for the “Protecting Whales, Human Safety and the Economy Act of 2023” (H.R.4323 & S.1833), would delay NOAA’s implementation of new and expanded vessel speed restrictions in favor of more effective technologybased solutions for the protection of the North Atlantic Right Whale.

Meeting of Governor Youngkin and Virginia Secretary of Labor Bryan Slater with higher education and business leaders, hosted by Old Dominion University and the Hampton Roads Workforce Council, focused on business and industry needs, workforce gaps, and talent development.

•

Maritime Roundtable with Kathy Byron, Deputy Director of Virginia’s new Department of Workforce Development and Advancement, to provide input on the goals and operations of the Department and to discuss funding and policy issues affecting the maritime industry.

VMA regularly helps other organizations obtain resources for programs and projects which position Virginia’s ports and supply chains for growth and improve the conditions for VMA member businesses. These included: •

Newport News Public Schools (NNPS) Laboratory School proposal to the Virginia Board of Education for a new Maritime and Environmental Studies Academy.

•

Hampton Roads Workforce Council’s submission to the Department of Labor for a $5 million Pathways to Infrastructure Jobs grant to help meet workforce needs in infrastructure-related fields.

•

Virginia Port Authority’s application to the Environmental Protection Agency for a Diesel Emissions Reduction Act Grant to purchase Battery Electric Utility Tractor Rigs that will reduce emissions from their terminal operations.

VMA represents the interests of our port and member businesses on several standing boards, advisory committees, and in other venues. In November, these included: •

ODU Maritime and Supply Chain Advisory Council

•

Virginia Freight Advisory Committee

•

Hampton Roads Executive Roundtable

Holding the annual Hampton Roads Navigational Summit in partnership with the U.S. Army Corps of Engineers and Virginia Port Authority, to advance our port’s priority navigation projects in pursuit of the goal of unrestricted navigation.

•

Elizabeth River Project Board of Directors

•

Virginia Economic Development Partnership Advisory Committee on International Trade – Featuring a robust discussion with Senator Tim Kaine

VMA’s strategic emphasis on workforce development was also evident throughout November, including prominent participation in:

•

Virginia Harbor Safety Committee

•

U.S. Coast Guard Area Maritime Security Committee

•

•

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•

Virginia Peninsula Workforce Career & Technical Education (CTE) Forum focusing on building partnerships between industry, high schools, colleges/universities, and community leaders.

Photo by: Independent Docking Pilots

NEW MEMBERS CHS CONTAINER GROUP USA, INC. Moving Cargo/Maritime Related Services Contractors and Construction Supplies/Equipment 500 E. Main Street, Suite 1600 (23510) Norfolk, VA 23510 chs containergroup.de h Thomas H. Clemens Chief Executive Officer thomas.clemens@chs-container.com h Edward T. Shea Operations Manager edward.shea@chs-container.com (757) 269–8585

GILCO TRANSPORT SERVICES Moving Cargo/Maritime Related Services Training, Education, Research 1137 Newmarket Drive Virginia Beach, VA 23379 h Ryan Gilliland Owner ryan@gilcotransportservices.com (757) 650–5730 IMPACT INTERMODAL LLC Moving Cargo/Maritime Related Services Motor Carrier/Intermodal 1400 Cavalier Boulevard, Suite B Chesapeake, VA 23323 h Henry Giese President hg3@impact-logistics.net (757) 818–3200 h Bill Lopez Chief Sales Officer blopez@impact-logistics.net (630) 505–3591

CIE MANUFACTURING Golden Anchor Manufacturers and Distributors 10530 Sessler Street South Gate, CA 90280 ciemanufacturing.com h Benjamin Evans Vice President, Sales & Marketing benevans@ciemfg.com (323) 605–6505 COASTAL DESIGN & CONSTRUCTION, INC. Silver Anchor Contractors and Construction Supplies/Equipment P.O. Box 650 Gloucester, VA 23061 coastaldesignaandcoonstruction.com h Richard Gunn Vice President rgunn@coastaldesign.net (804) 693–4158 h Emelie Gunn Communications Manager egunn@coastaldesign.net

RAY-MONT LOGISTICS Bronze Anchor Logistics Consultants 1751 Richardson Montreal, Quebec, H3K 1G6 ray mont.com h Marc Leblanc Vice President, Forest Products Export Solutions marc.leblanc@ray-mont.com h Volker Kluge Chief Marketing Officer volker.kluge@ray-mont.com (514) 237–0228

THOMAS LUMPING SERVICE Moving Cargo/Maritime Related Services Employment Services P.O. Box 61478 Virginia Beach, VA 23466 ThomasLumping.com h Ryan Thomas President ryan@thomaslumping.com (757) 215–6825 h Keith Rice General Manager keith@thomaslumping.com (757) 652–1189 U.S. MARINE MANAGEMENT LLC Bronze Anchor Steamship Owners, Agents, Operators 140 Corporate Boulevard Norfolk, VA 23502 h Henley Ervin General Manager, Risk Management & Business Planning hervin@usmmi.com (757) 753–6770 h Christopher Anderson Marine Superintendent Tankers canderson@usmmi.com (757) 615–9367

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

Ben Nelson • cbiffa.va@gmail.com Hampton Roads Coal Association Finn Host • treasurer@hrcoal.org hrcoal.org Hampton Roads Global Commerce Council Kevin Speers • info@hrgcc.org hrgcc.org

Propeller Club - Port of Norfolk Noel Stokes • norfolkpropellerclub@gmail.com PropellerClubNorfolk.org Shenandoah Valley Traffic Club shenandoahtrafficclub@gmail.com shenandoahtrafficclub.com

Virginia Ship Repair Association Sylvia Bell • 757-233-7034 VirginiaShipRepair.org Virginia International Business Council robert.davenport@vdacs.virginia.gov vaibc.org

Tidewater Motor Truck Association Ray Jalkio • ray@servicetransfer.net tmtava.org

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

P.O. Box 3487 Norfolk, Virginia 23510

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

GO L D E N A N C H O R S Bay Power Solutions Cargomatic CIE Manufacturing CSX Transportation

CV International, Inc. Excel Truck Group Greater Richmond Partnership, Inc. Kaufman & Canoles, P.C.

Seajacks UK Limited T. Parker Host VHB Virginia Pilot Association

S I LV E R A N C H O R S AdvanSix Albemarle Tug Company BDO USA, LLP Capes Shipping Agencies Capital Financial Group CMA CGM (America), LLC Coastal Design & Construction, Inc. Colliers

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ECPI University Givens Logistics, LLC Great Lakes Dredge & Dock Co. KITCO Fiber Optics Kokosing Industrial Kuehne + Nagel, Inc. Pender & Coward, P.C. Perdue Agribusiness, LLC

Port City Transportation SeaGate Terminals, LLC Shopify Tecnico Corporation Tidewater Staffing, Inc. TMEIC Corporation Truist Virginia Natural Gas