VMA's Maritime Bulletin Edition 88 Vol. 1

Volume 88 No. 1

January 2024

“The Voice of Port Industries” @VAmaritime

PORT OF VIRGINIA® OPERATING ON 100% CLEAN ENERGY NORFOLK, VA | Fulfilling a projection announced in 2023, Hampton Roads cargo terminals are now operating 100% clean energy sources. This milestone is eight years ahead of an original goal of 2032.

Stephen Edwards, CEO and Executive Director of the Virginia Port Authority, proudly stated, “Virginia is the first major U.S. East Coast port to power its entire operation using 100% clean electricity.” This achievement, realized as of January 1, exemplifies the port’s commitment to supporting sustainability in Virginia.

The Port of Virginia® will purchase all of its power used for port operations from renewable energy sources. A purchase agreement between the port and Dominion Energy, as well as a rider with Rappahannock Electric Cooperative helped achieve the 100% clean energy goal ahead of schedule.

Photo: Steve Helber/AP Continue Reading on Page 4

BETTER REPRESENTED AND READY FOR SESSION NORFOLK, VA | The 2024 General Assembly Session at the state capitol has convened, and we wanted to share with you an update of what we’re planning thus far.

number of incoming freshmen has contributed to a staggering loss of over 700 years of combined governing experience.

VMA has been reviewing introduced bills and rounding out legislative priorities. In general, we will advocate for continued improvements and investments for transportation infrastructure, shovel-ready industrial sites, and workforce development to meet our growing labor needs. Furthermore, we will defend against unfriendly legislation that could hinder our member companies’ ability to grow and operate efficiently. Of the submitted bills on our radar to date, there are several that we’re likely to actively advocate “for” or “against” which we’ll communicate in the near future.

The 2023 election was truly game-changing, yet our long history has informed our strategy moving forward. Democrats again hold a thin majority in the House and Senate, and the unprecedented

Port Day 2023 Continue Reading on Page 4

INSIDE THIS EDITION

h Ocean of Opportunity (3)

h Upcoming VMA Events (6)

h Guest Column by Joel Rubin (2)

h Port Statistics (5)

h VMA New Members (7)

h Solenis Expansion (3)

h Association in Action (6)

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Photo by: InterChange

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

The MARITIME BULLETIN is provided through membership.

Contact jdeason@vamaritime.com to Advertise in the Next Bulletin!

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DOMINION’S MIKE LEWIS CREDITS VMA FOR CRITICAL ROLE IN CVOW CONSTRUCTION

BY GUEST COLUMNIST JOEL RUBIN Of the many stops on Michael Lewis’ 23year career in the Coast Guard, one was in Duluth, Minnesota.

Situated on Lake Superior, Duluth’s port handles more imported parts for on shore wind turbines than any other in the country. “Being there piqued my curiosity about this industry,” says Lewis, whose final posting with the Guard was as a training officer in Yorktown. He never left Hampton Roads because Dominion Energy was looking for a Senior Project Construction Manager for Marine Affairs, basically to ensure navigational safety in the ocean. Mike Lewis was the man.

“I interact regularly with a number of federal, state and local agencies because let’s face it, there are a lot of vessels out in the ocean now and that’s before we start building our 176-turbine windfarm,” says Lewis. Those include, not just the Coast Guard, but also the Navy, NOAA, the Virginia Pilot Association, Fisheries, and many more. “Thank goodness for the Virginia Maritime Association. They have such great relationships with all these parties and have really stepped up to help.”

Good thing, because CVOW will bring dozens of ships new to the harbor to transfer crews, lay cable, install monopiles, blades and nacelles and complete other functions.

“In early 2024, one of our partners will begin moving unexploded ordnance on the sea bottom to clear the transmission route,” says Lewis. “’It’s so vital that we have open lines of communication to everyone.” So the Jacksonville native is on the phone or the computer, sending out regular bulletins to stakeholders that he says have been very cooperative.

Lewis is not naïve about the challenge, including watching the world economy, which due to the war in Ukraine and other factors is upsetting some supply chains and schedules, particularly for steel delivery. And he knows that no monopile installation, set to begin in the spring, can occur from November through May because of right whale migration. “And for the sake of those mammals, everyone must moderate their vessel speeds and movements. My job involves a lot of coordination, and from 2024 until the turbines are spinning at the end of 2026, I will be busy.” Thank goodness Dominion has former Coastie Mike Lewis at the helm.

VMA Member Joel Rubin is Director of WINDSdays, which raises awareness of the coming offshore wind industry. To receive the weekly It’s WINDSday newsletter, email him at joel@rubincommunications.com.

SOLENIS ANNOUNCES EXPANSION IN VIRGINIA SUFFOLK, VA | Global specialty chemicals leader Solenis is set to invest $193 million in expanding its operations in Suffolk, Virginia.

The expansion entails the construction of an 80,000-square-foot production facility, packaging facility, and tank farm, along with a new rail spur to accommodate the production of polyvinylamine (PVAm) polymer products crucial in paper and cardboard manufacturing. The project, secured against competition from Georgia and Texas, underscores Virginia’s appeal for major investments. Governor Glenn Youngkin emphasized the state’s skilled workforce, business climate, and logistical advantages, including the world-class port, as factors contributing to Solenis’ decision.

The strategic location of the facility in Suffolk, combined with Virginia’s prime transportation system, played a crucial role in Solenis’ decision. The Virginia Economic Development Partnership, City of Suffolk, and Virginia Department of Rail

$193

MILLION

and Public Transportation collaborated to secure the project.

Governor Youngkin approved a $275,000 grant from the Commonwealth’s Opportunity Fund to support Suffolk, and the company is eligible for Port of Virginia tax credits and benefits from the Rail Industrial Access Program, pending approval.

With a 40-year history in Suffolk, Solenis aims to leverage the investment to provide increased capacity for the paper packaging market and explore diversification into other applications. The expansion is anticipated to generate 34 new jobs, contributing significantly to Suffolk’s economic development.

This expansion is a significant milestone for Solenis, Suffolk, and Virginia, reinforcing the state’s position as a global manufacturing hub. As Solenis continues to grow, it contributes to Virginia’s reputation as a center for innovation, economic development, and a skilled workforce.

THANKS TO MARITIME, HAMPTON ROADS IS AN OCEAN OF OPPORTUNITY The following op-ed piece by David White, Executive Director of Virginia Maritime Association was published in The Virginian-Pilot on January 13, 2024.

How many times have you heard this or said it yourself: “I wish my kids lived closer.” You’re not the only one.

Recent studies have shown our youth are leaving Hampton Roads and not returning at a higher rate than other regions. For too many, they leave not with direction or to pursue a passion, but because they don’t know about the many choices right here where they already live. The remedy begins in our homes and classrooms.

Look around you. We are on the edge of the continent, bordered by the world’s second largest ocean, accessible by highly navigable waterways. These are the shores where our nation was born.

Hampton Roads is uniquely abundant with opportunities to earn a good living with your hands and your head, all while making impacts that benefit our community and country.

Thanks to both public and private sector expenditures, we have become the East Coast’s second largest commercial port by tonnage and America’s most substantial ship building and ship repair industrial base. Our port is a vital hub in the supply chains feeding the appetites of people and production lines here and across the globe, as well as the defense of our national interests.

The evolving and increasingly technological nature of these activities drive innovation and make our region global in scope. The jobs that enable our world-class infrastructure — from longshoremen to bankers, brokers to welders, and from truckers, warehouse workers, mechanics, electricians, manufacturers and shipfitters to contractors, engineers, data analysts and marketers — embody Hampton Roads.

Our best-kept secret is that we are a maritime economy and frankly the envy of other regions, few of which can match our natural geographic assets.

Continue Reading on Page 5

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Photo by: Dominion Energy

100% CLEAN ENERGY CONT. “The Port of Virginia has long been a leader in innovation and growth,” said Glenn Davis, director of the Virginia Department of Energy.

equipment and emissions generated from the electricity used to power and charge electric equipment as well as supplying port buildings with lighting, heating, air conditioning, etc.

The port now operates a fleet of 116 electric stacking cranes, four electric rail cranes, and 27 electric ship-to-shore cranes all powered by clean energy. This fleet of all-electric equipment will grow as the port moves forward on the optimization of the North Berth at Norfolk International Terminals: the expansion will increase the fleet size to 152, seven and 31 respectively. This comprehensive approach exemplifies the port’s committment to achieving full carbon neutrality by 2040.

“Our cargo operations and overall performance are world-class, and we are advancing sustainability goals that are aligned with how we operate. This is a modern approach to meeting our environmental targets and we are setting ourselves apart as a result.” Edwards said. Switching to clean energy also gives the port a competitive advantage as potential business partners bring up the topic almost immediately in meetings.

Using clean electricity helps the port offset its carbon footprint by reducing carbon emissions 45 percent per container. The reduction comes in two target areas, emissions – exhaust — from

The carbon neutrality goal aligns with former Governor Ralph Northam’s executive order in 2019 to reduce the Commonwealth’s carbon emissions and move the state’s electricity goal to 30% renewable energy by 2030 and 100% carbon-free by 2050.

Sources: The Virginian-Pilot and Virginia Port Authority

READY FOR SESSION CONT. The change of House control, retirements, and outcomes from various competitive races have also led to new leadership, which we’ve outlined: • • • • • • • • • •

House Speaker: Delegate Don Scott, D-Portsmouth Majority Leader: Delegate Charniele Herring, D-Alexandria Democratic Caucus Chair: Delegate Kathy Tran, D-Fairfax Minority Leader: Delegate Todd Gilbert, R-Shenandoah Republican Caucus Chair: Delegate Amanda Batten, R-James City Senate President Pro Tempore: Senator Louise Lucas, D-Portsmouth Majority Leader: Senator Scott Surovell, D-Fairfax Democratic Caucus Chair: Senator Mamie Locke, D-Hampton Minority Leader: Senator Ryan McDougle, R-Hanover Republican Caucus Chair: Senator Mark Obenshain, R-Harrisonburg

House Committee Chairs • • •

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Delegate Alfonso Lopez, Agriculture, Chesapeake and Natural Resources Delegate Luke Torian, Appropriations Delegate Cliff Hayes, Communications, Technology and Innovation

• • • • • • • • • • •

Delegate Candi Mundon King, Counties, Cities and Towns Delegate Patrick Hope, Courts of Justice Delegate Sam Rasoul, Education Delegate Vivian Watts, Finance Delegate David Bulova, General Laws Delegate Mark Sickles, Health and Human Services Delegate Jeion Ward, Labor and Commerce Delegate Marcia “Cia” Price, Privileges and Elections Delegate Marcus Simon, Public Safety Speaker Don Scott, Rules Delegate Karrie Delaney, Transportation

Senate Committee Chairs • • • • •

Senate Committee on Agriculture, Conservation, and Natural Resources – Senator Dave Marsden Senate Committee on Commerce and Labor – Senator Creigh Deeds Senate Committee on Education and Health – Senator Ghazala Hashmi Senate Committee on Finance and Appropriations – Senator L. Louise Lucas Senate Committee on General Laws and Technology – Senator Adam Ebbin

• • • • • •

Senate Committee on the Judiciary – Senator Scott Surovell Senate Committee on Local Government – Senator Jeremy McPike Senate Committee on Privileges and Elections – Senator Aaron Rouse Senate Committee on Rehabilitation and Social Services – Senator Barbara Favola Senate Committee on Rules – Senator Mamie E. Locke Senate Committee on Transportation – Senator Jennifer Boysko

Do you know which legislators represent you and your place of business? You can use the following helpful tool: https://whosmy. virginiageneralassembly.gov/ As we’ve shared before, the VMA spent much of the off-season traveling and visiting around the state, advocating for our greater port’s betterment, and hosting tours. With nearly one-third of the Senate and over one-half of the House having four years or less of governing experience, we could not wait for Session to start educating and refreshing our decision makers.

DISTRIBUTION OF COAL DUMPINGS

VESSELS BY TYPE

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

Source: Virginia Port Authority

**12 month 2023

Dec 2022

12 month 2022

TOTAL

3,286,717

35,467,107

2,382,928

32,088,287

**NS

1,456,049

12,288,370

879,824

11,799,457

Pier IX

510,521

7,888,457

546,731

7,735,198

DTA

1,320,147

14,290,281

956,372

12,553,632

Dec-23

YTD-23

Dec-22

YTD-22

Arrive

Arrive

Arrive

Arrive

BULK

13

180

20

238

COAL

48

501

35

395

CONTAINER

123

1647

125

1435

GENERAL

5

83

8

98

PASSENGER

0

38

0

38

RORO

3

56

7

69

TANKER

4

42

5

77

TOTAL

196

2547

200

2350

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

PORT OF HAMPTON ROADS TEU’S TOTAL

Dec-2023

**12 month 2023

Dec-2022

12 month 2022

268,107

3,287,548

273,965

3,703,231

Source: Virginia Port Authority

CUSTOMS RECEIPTS VIRGINIA CUSTOMS DISTRICT TOTAL

Nov 2023

**11 month 2023

Nov-2022

11 month 2022

$133,778,120

$1,655,978,725

$149,037,956

$1,454,099,838

PORT STATISTICS | DECEMBER 2023

Dec 2023

Source: Virginia Port Authority

ULTRA LARGE CONTAINER VESSELS (ULCV) ULCV

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176

12

126

OCEAN OF OPPORTUNITY CONT. Don’t take our word for it. A new study by the Mason School of Business at William & Mary reveals that 1 in 5 jobs in Virginia, nearly 730,000 in all, are linked to maritime.

They generate nearly $57 billion in labor income and $8.1 billion in state and local taxes. And it’s only getting better.

Hampton Roads is actually an “ocean of opportunity” for our citizens and those who come here. Check the want ads. There are a multitude of openings for skilled tradesmen and women, and educational institutions are scaling up certification and degree granting programs.

Since 2013, the number of skilled workers handling cargo was up 54% with average annual paychecks of more than $121,000.

Overall income per position grew 51%.

We are the most modern gateway in the U.S. for exports our citizens grow and fashion, and the point of entry for overseas imports that stock our stores, homes and factories. Additionally, our nation depends on Hampton Roads in war and peace, thus the reason the taxpayers have invested heavily in our harbor, from state-of-the-art equipment and technology to wider, deeper, safer channels.

And not just to train the blue-, white- and new-collar employees who keep our piers humming and our combatant ships ready to defend our homeland and sea lanes. This spring, the largest domestic offshore wind farm will begin to rise off Virginia Beach, with massive components regularly arriving at the again vibrant Portsmouth Marine Terminal.

The member businesses of the Virginia Maritime Association are collaborating with workforce development organizations, training providers and educational

institutions beginning at K-12 to grow our talent pool. We recognize those efforts must begin by showing our youth their prospects for a bright future.

So do not despair or feel like your sons and daughters must move elsewhere to work, be successful and raise your grandchildren. The Atlantic, which has given us so much, still delivers prosperity to our shores — whether it’s big vessels and logistics, building and repairing ships, harnessing renewable energy, or a yet-unknown innovation tied to our industry.

From kitchen conversations to classroom teachings, let’s embrace and promote our unique and growing maritime economy, encourage our home-grown talent to stay (or return), and invite newcomers to move here to take advantage of our many oceans of opportunity.

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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.

In December, the Governor introduced his proposed 2-year budget and members of the General Assembly began pre-filing legislation for the 2024 legislative session, with Democrats having gained very narrow control of both the state 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 over 700 years of institutional knowledge. VMA began reviewing the proposed budget and bills in the context of industry impacts and priorities.

VMA was pleased to again assist with the annual meeting of the James River Partnership, which featured remarks by Virginia’s Secretary of Natural and Historic Resources Travis Voyles and the signing of a Memorandum of Understanding between the U.S. Army Corps of Engineers and the Virginia Marine Resources Commission. The MOU will allow the Corps some relief from time of year restrictions for dredging the James while collecting data on how dredging activities affect certain fish populations.

Following his remarks, VMA was privileged to have Secretary Voyles for a port tour and discussion of the significance and growth of our port and ways in which our industry has contributed to the improving health of our commercial waterways.

VMA was pleased to join representatives from the Virginia Port Authority to provide a tour of the Richmond Marine Terminal to some of those newly elected to the General Assembly, demonstrating to them the economic impacts of those port operations and our members of that region.

On December 11, VMA was honored to host U.S. Senator Mark Warner for a Maritime Leadership Roundtable during which a broad representation of industry business leaders shared insights on international trade, shipbuilding & repair, offshore wind, and other key topics. Senator Warner sought the meeting with VMA to provide him with information and insights that will allow him to continue to be an effective champion for our port and industry.

01 ANCHOR ORIENTATION

FEBRUARY

Thursday, February 1 10:00 - 11:30 AM Virtual Free Admission

MOU Signing at the James River Partnership meeting Photo: Mark Haviland, USACE

On other matters affecting the navigational concerns of our port, VMA facilitated continued discussion about opportunities on the Eastern Branch of the Elizabeth River, discussed our priorities in a partnership meeting the American Waterways Operators held with U.S. Coast Guard Sector Virginia, and met with representatives from the Virginia Department of Wildlife Resources to discuss marine mammal protection efforts.

06 MEMBER ORIENTATION

FEBRUARY

Tuesday, February 6 10:00 - 11:30 AM Virtual Free Admission

REGISTER @ VAMARITIME.COM/EVENTS

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MEMBERSHIP 28 MARITIME BREAKFAST BRIEFING

FEBRUARY

Wednesday, February 28 7:15 - 9:00 AM Norfolk Yacht & Country Club Standard Admission $55

Photo by: Independent Docking Pilots

NEW MEMBERS BARNES, BROCK, CORNWELL & PAINTER Business Service Accountants Certified Public 908 Eden Way North, Suite 201 Cheseapeake, VA 23320 bbcpcpa.com h Curtis Geske Director cgeske@bbcpcpa.com (757) 961–5017

CHAMBERS FOR INNOVATION AND CLEAN ENERGY Business Service Manufacturers and Distributors 112 Cedar Swamp Road Newport, CT 28570 chambersforinnovation.com h Michele Querry Southeast Regional Director mquerry@chambersforinnovation. com (252) 732–1809

HAYNES & COMPANY, LLC Moving Cargo/Maritime Related Services Motor Carrier/Intermodal 780 Lynnhaven Parkway, Suite 400 Virginia Beach, VA 23452 haynesandconmpany.net h Kenyatta Haynes President khaynes@haynesandcompany.net (800) 416–1703

THE COASTAL GROUP Business Service Employment Services 228 N. Lynhaven Road, Suite 102 Virginia Beach, VA 23452 thecoastalgroupinc.com h Elizabeth Crockett Regional Sales Manager elizabeth@coastalgroup.us (757) 495–1651

LINK MARTYN PLLC Business Service Law Firm 23 Stoneymeade Way Acton, MA 01720 linkmartyn.com h Jessica Link Martyn Managing Attorney jmartyn@linkmartyn.com (757) 615–4753

GALLAGHER Business Service Insurance Services and/or Insurance Counselors 150 Boush Street, Suite 704 Norfolk, VA 23510 ajg.com

h James Hann Area Vice President james_hanna@ajg.com (757) 353–4920

M&T BANK Business Service Banks/Investments and Mortgage Loans 3951 Westerre Parkway, Suite 300 Richmond, VA 23223 mtb.com h Kathryn Craig Vice President kcraig@mtb.com (804) 754–4811

NEW ADDITIONAL REPRESENTATIVES h Danielle Hall* Supervisor dhall@camrett.com (540) 580–2494 CAMRETT LOGISTICS Wytheville, VA

h Carl Dorsey* Contract Manager cdorsey@colonnaship.com (757) 545–2414 COLONNA’S SHIPYARD, INC. Norfolk, VA

h Christy Gillam* Program Manager, Boat Shop cgillam@fairleadint.com (757) 316–1230 FAIRLEAD INTEGRATED Portsmouth, VA

h Sean Stryker* Dockmaster & Engineering Advisor sstryker@fairleadint.com (757) 256–9145 FAIRLEAD INTEGRATED Portsmouth, VA

h Alyssa Bergeron Executive Director alyssa.bergeron@g2_ops.com (757) 500–2717 G2 OPS, INC. Virginia Beach, VA

h Daniel MacKay Vice President, Human Resources dmackay@givens.com (757) 233–4399 GIVENS LOGISTICS LC Chesapeake, VA

h Austin Hill* Territory Manager ahill@linkbelt.com (757) 485–4043 LINK BELT MID ATLANTIC Chesapeake, VA

h Aaron Leftwich* Superintendent aaron.leftwich@perdue.com (270) 570–5219 PERDUE AGRIBUSINESS Chesapeake, VA

h Michael Collett Attorney/Associate mcollett@wilsav.com (757) 628–5662 WILLCOX & SAVAGE, P.C Norfolk, VA

*YOUNG MARITIME PROFESSIONAL MEMBER

INTERESTED IN UPGRADING TO AN ANCHOR, ADDING AN ADDITIONAL REPRESENTATIVE, OR MEMBERSHIP BENEFITS? Contact Kristen Greene kristen@vamaritime.com

VAMARITIME.COM/MEMBERSHIP

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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 Cadeler AS Cargomatic CIE Manufacturing Colliers

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

T. Parker Host VHB Virginia Pilot Association Wood Rogers Vandeventer Black PLC

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. ECPI University

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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 Virginia Tech Corporation Research Center