Virginia Maritime Association Maritime Bulletin ( August 2022)

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“DroneUp’s decision to expand its footprint across Virginia shines a spotlight on the advantages, the strengths, that are providing this great growth platform for not just companies,” Youngkin said, “but for Virginians: our best in class location right here, right here on the East Coast with a port that serves the world, a world-class infrastructure beyond our port, with investment in roads and broadband in order to connect Virginia, a highly skilled workforce that is the envy of the nation in a top-tiered education system. And when we bring together this winning formula, companies win and Virginia wins.”

“When you’re growing that fast, you’re hiring in everything. You’re hiring in marketing, you’re hiring in finance, you’re hiring in technology,” Walker said, referencing the fact that DroneUp’s new headquarters jobs will be divided across a variety of fields.

Amazon.com Inc. opened its new, 640,000-square-foot processing facility in Chesapeake, the global e-tailer’s first crossdock fulfillment center in Virginia

VIRGINIA BEACH DRONE UP TO ADD 655 JOBS

DroneUp will open three drone hubs at Walmart Inc. locations in Virginia in the next two to three months that the company will use in the new operator training program, Walker said. Those hubs will be at two locations in Chesterfield County and one in Chesapeake, said Virginia Beach Mayor Bobby Dyer. However, announcing locations is a bit premature, said T. Preston Lloyd Jr., a Williams Mullen partner representing DroneUp: “At this time, DroneUp is still negotiating and exploring where those final hub

PORT OF VIRGINIA NAMES VERIZON TO BUILD 5G NETWORK

Virginia Beach-based DroneUp LLC (VMA’s newest Bronze Anchor member) is adding 655 jobs as part of a $27 million expansion that will include establishing a drone testing, training and research and development center at Richard Bland College, Gov. Glenn Youngkin announced during a news conference at the Executive Mansion in Richmond.

Youngkin and DroneUp founder and CEO Tom Walker began discussing the project in February.

Wireless data providers are working to install fifth generation (5G) cell coverage for commercial use in cities nationwide, but in the meantime, logistics industry sites are building their own private 5G networks. In the latest application, The Port of Virginia has named Verizon to build a similar system for high-bandwidth industrial uses and secure day-to-day networking, the Continue Reading on Page 3

AMAZON OPENS NEW CHESAPEAKE FACILITY

@VAmaritime

About 900 of the 1,000 workers that Amazon announced it would be hiring for the facility are already on the job, an Amazon spokeswoman told Virginia Business. Located at 5045 Portsmouth Blvd., the Chesapeake center receives and consolidates products from vendors and ships them to surrounding fulfillment centers Continue Reading on Page 4 Continue Reading on Page 4 of Port Industries”

The company will add 510 jobs at its headquarters and it will create 145 jobs for drone operator trainers at the training center.

1 “The Voice

Volume 86 No. 3 August 2022

DroneUp, which specializes in commercial drone delivery and flight services and software, will invest $20 million to establish the college center and $7 million to expand its Virginia Beach headquarters at 160 Newtown Road. The headquarters, currently about 15,000 square feet, will expand to about 80,000 square feet.

INSIDE THIS EDITION h Port Announces VPA Leadership (2) h New FMC Enforcement Structure (3) h CMA CGM Deploys Buoy To Detect Whales (4) h RoadOne Opens Norfolk Center (4) h Port Of Virginia Sets Volume Record for July (4) h Event Highlight: MLCP Event (7)

DroneUp currently has about 300 employees but expects to have about 750 by the end of this year, DroneUp founder and CEO Tom Walker said.

The board, at its regularly-scheduled July meeting, welcomed five new members, all of whom have terms that run from July 1, 2022 until June 30, 2027, and will be eligible for reappointment. Shaza L. Andersen, Trustar Bank, CEO, James C. Burnett, W.M. Jordan Co., vice president and CFO

“I am excited to see my former colleague fill this critical role,” said W. Sheppard “Shep” Miller III, the Virginia secretary of transportation. “Having worked with Aubrey for many years, I know he will provide strong leadership to support the exceptional work of Stephen Edwards and his team. ” Assuming the vice-chair’s position is Dr. Faith B. Power, who was appointed to the board in 2014; her term will expire in 2026

Michael W. Coleman, CV International Inc. and Capes Shipping, president and CEO John W. Kirk III, Associated Asphalt, chairman David L. Richardson, Virginia state treasurer

NORFOLK, VA — Aubrey L. Layne Jr., a veteran of Virginia state government who has extensive experience in the transportation field will lead the Virginia Port Authority (VPA) Board of Commissioners as its chairman.

PORT OF VIRGINIA ANNOUNCES NEW VPA LEADERSHIP AND MEMBERS

Layne served as Virginia secretary of finance from 2018 until 2021 and is currently the senior vice president and chief of staff for Sentara Healthcare. He was appointed to the VPA board in July 2021 and is eligible for reappointment in 2026.

Layne takes over as the port is investing $1.4 billion to continue a modernization and growth campaign aimed at generating more business and being able to accommodate an ongoing shift in trade to the US East Coast. Layne served as the Virginia secretary of transportation from 2014 to 2018, a period when the port invested more than $800 million to modernize and expand its two primary container terminals, Norfolk International Terminals and Virginia International Gateway.

“They [Power and Layne] know each other and have a lot of experience together during our expansion years,” Edwards said.

OFFICERS Chairman of the Board Micheal Coleman CV International, Inc President George Brown CP&O LLC Vice Presidents Judy TowneBarrettBank/ Towne Insurance Lang AndersRolfColliersWilliamsInternationalWilliamsWilliamsShip Agency Executive Director & Secretary David C. White Virginia Maritime Association Treasurer Camille Cherry Crofton Industries Assistant Treasurer Tracy Gregorio G2 Ops Inc STAFF Vice President of Finances & Administration.............................. Sam Davis Vice President of Industry & Government Affairs....................... Will Fediw Director of Development............................KristenMembership Greene Executive Assistant................ Jennifer S. Deason Event Manager & Accounting Assistant............ Jennifer N. Parham Marketing Coordinator.................. Will Ward Membership & Coordinator.....................SusanPublications N. Wisniewski The MARITIME BULLETIN is provided through membership. Follow Us on Social Media: @VAmaritime Contact wward@vamaritime.com to Advertise in the Next Bulletin! 2

“His leadership is going to be invaluable because of his experience in this port and his wider understanding of an integrated transportation system and its benefits to the state,” said Stephen A. Edwards, CEO and executive director of the VPA. “Equally important is knowledge he gained from working under two governors and the relationships he developed in Richmond during that time. This is an important moment for The Port of Virginia® and a forward-thinking board with strong leadership is going to be vital in our success.”

The Federal Maritime Commission is reorganizing its investigative and prosecution functions by consolidating them into a newly created Bureau of Enforcement, Investigations, and Compliance (BEIC) effective immediately.

effectiveness of Commission enforcement and compliance activities. The review determined a restructuring and merging of enforcement and compliance programs would result in a more efficient, coordinated, and responsive operation from initiation to conclusion of an investigation.

The training program will run six weeks total. Students will learn online for two weeks, and then DroneUp will fly them to Richard Bland for two weeks of training before transitioning to training with delivery operators at one of the area Walmart stores using its Richardservices.Bland College anticipates students earning nine college credits through the program, which equates to a Federal Aviation Administration micro-credential in unmanned aerial systems, said college President Debbie Sydow.

“Robust enforcement of the Shipping Act is absolutely key to the effectiveness of the Federal Maritime Commission. This reorganization has the support of all five Commissioners and creates a structure better suited to meeting the mandate the President and Congress have given this agency to prioritize enforcement. Specifically, it enhances FMC’s capacity to closely scrutinize the conduct of the ocean carrier companies and marine terminal operators to ensure compliance with the law and fairness for American importers and exporters,” said Chairman Daniel B. Maffei. The BEIC will be divided into three sections: the Office of Enforcement, the Office of Investigations, and the Office of Compliance. .

The exclusive provider of drone services for Walmart, DroneUp announced a partnership with the retailer in 2021 to provide drone delivery services at 34 sites around the nation with the capacity to reach 4 million homes. Walmart has a minority stake in DroneUp and a seat on its board.

The concrete has been poured for the training facility, Walker said, and the building facilities will be delivered soon.

locations will be.”

The Virginia Economic Development Partnership worked with Virginia Beach, Dinwiddie County, Richard Bland College and Virginia’s Gateway Region to secure the projects. Virginia competed against Arizona, New York, North Carolina and Texas for the projects. Youngkin approved a $928,000 grant from the Commonwealth’s Opportunity Fund and $4 million from the Virginia Economic Development Incentive Grant. The Virginia Tobacco Region Revitalization Commission approved a grant for $111,000 from the Tobacco Region Opportunity Fund for the project and funding and services to support DroneUp’s employee training activities provided through the Virginia Jobs Investment Program. Founded in 2016, DroneUp works with more than 20,000 drone pilots.

The reorganization was initiated following an internal examination undertaken to identify how to increase the

NEW FMC ENFORCEMENT STRUCTURE 3

VIRGINIA BEACH DRONE UP TO ADD 655 JOBS (CONT.)

“Right now, we’re having to train these people … at various ball fields … in Virginia Beach and in Arkansas and other places,” he said. “But my anticipation is we will [begin] training [at Richard Bland College] in two weeks.”

The location off the coast of Norfolk was chosen because ships coming in and out of the port are often directly in the path of migrating right whales. This buoy, along with one that will be dropped off the coast of Savannah, and Georgia, will join a monitoring network of six other buoys located across the East Coast. 4

Full-time employees at the Amazon facility make $18 an hour, and earn benefits such as a 401(k) with 50% company match and up to 20 weeks of parental leave, the company says.

CMA CGM GROUP DEPLOYS BUOY TO DETECT WHALES OFF NORFOLK COAST

NORFOLK, VA – The Port of Virginia® continues processing record-setting amounts of cargo having handled nearly 318,000 TEUs (twenty-foot equivalent units) in July and in doing so making it the most productive July in the port’s history.

In addition, this is the first transload facility near the Virginia Intermodal Gateway that will help boost drayage capacity and cargo flow.

Amazon has opened facilities all over the commonwealth, first launching its Virginia operations in Sterling in 2006. Since 2010, Amazon has invested more than $34 billion in Virginia through fulfillment centers, cloud infrastructure and research facilities.

Total Truck Containers 109,089, up 9.1%

Although these whales are protected under the Endangered Species Act and the Marine Mammal Protection Act, there are serious threats to their survival. Only approximately 336 of these whales remain.

Verizon Business and Virginia International Terminals LLC (VIT) will build the ultra wideband network at one of the port’s main container terminals, with plans to use the network to explore the use of autonomous over-the-road trucks for accessing the terminal to drop-off and pick-up shipping containers. The network also gives VIT the ability to replace WiFi with secure, private 5G connectivity across its Virginia International Gateway facility, In support of the project, VIT recently received a U.S. Department of Transportation grant to create a proof of concept for autonomous over-the-road trucks, including private 5G as a critical component of the solution. within Amazon’s network. A similar facility planned for Stafford County will create 500 jobs and is expected to be operational by the second half of the year.

“Amazon has quickly become one of Hampton Roads’ largest and most engaged employers,” Hampton Roads Alliance President and CEO Douglas L. Smith said in a statement. “The opening of this facility in Chesapeake represents yet another milestone in their tremendous growth in the region, aided by the impressive collaboration between our partners in the city of Chesapeake, [the] Virginia Economic Development Partnership and the Port of Virginia. We are confident that this is only the beginning of Amazon’s relationship with the Hampton Roads community.

“Seaports provide some of the best possible examples of the power of private 5G, with uses spanning autonomous vehicles, connected heavy equipment, and secure, real-time tracking and logistics, among many others,” Sowmyanarayan Sampath, CEO of Verizon Business, said in a release.

• A premier transloading location, only 6 miles from the Virginia International

•GatewayEnvironmentally friendly electric forklift trucks and yard jockeys

RoadOne IntermodaLogistics, a single source intermodal, distribution and logistics services company, announces the grand opening of its 340k sq. ft., tier one transload and distribution center. This new facility will serve a leading e-commerce provider and a number of BCO (beneficial cargo owner) shippers.

July’s TEU total was ahead of the same month last year by more than 24,500 units, or 8.4 percent. Additionally, July was the fourth consecutive month of TEU volumes exceeding 317,000 units. The combined volume of April, May, June and July is 1.3 million TEUs, resulting in the busiest four-month stretch in port history.

Total TEUs – 317,691, up 8.4% Loaded Export TEUs – 85,170, up 5.1% Loaded Import TEUs – 149,829, up 4.8%

Total Containers – 176,441, up 7.4%

Total Rail Containers – 59,143, up 2.6%

AMAZON OPENS NEW FACILITY (CONT.) PORT OF VIRGINIA BUILDS 5G NETWORK (CONT.)

BUSINESS CONTINUES TO GROW AS PORT PROCESS HEAVY IMPORTS AND SETS VOLUME RECORD FOR JULY ROADONE OPENS NORFOLK CENTER

partners said July 21. The deal is Verizon’s second with a major international port and its first with a U.S.-based terminal.

Key features:

• Optimal capacity with 80 dock doors for loading and unloading trucks and 800 trailer parking spots

The facility is due August 2023.

NORFOLK, Va. (WAVY) – A buoy has been deployed 33 miles off the coast of Norfolk to help increase right whale detection efforts. According to a press release, The CMA CGM Group, along with the Woods Hole Oceanographic Institution (WHOI) deployed the buoy to aid in the protection of this endangered North Atlantic right whale.

• Fast to market e-commerce delivery to Mid-Atlantic, Southeast, and Northeast locations

2022JULY|STATISTICSPORT VESSELS BY TYPE PORT OF HAMPTON ROADS TEU’S DISTRIBUTION OF COAL DUMPINGS HAMPTON ROADS REGION (IN NETTONS OF 2,000LBS) CUSTOMS RECEIPTS - VA CUSTOMS DISTRICT Source: US Customs and Border Protection. Some stats unavailable at this time. June-2022 6 month 2022 June-2021 6 month 2021 $192,808,580 $808,870,202 $117,130,494 $721,511,350 July 2022 7 month 2022 July-2021 7 month 2021 TOTAL 3,050,379 18,958,522 2,460,793 16,500,556 **NS 1,274,812 6,889,283 901,418 5,949,607 Pier IX 940,138 4,585,720 509,916 3,114,376 DTA 835,429 7,483,518 1,049,459 7,436,573 July-22 YTD-22 July-21 YTD-21 Arrive Arrive Arrive Arrive BULK 16 149 11 102 COAL 33 223 32 210 CONTAINER 127 794 119 834 GENERAL 9 64 5 57 PASSENGER 0 27 0 0 RORO 4 37 5 48 TANKER 9 52 5 58 TOTAL 202 1346 177 1309 ULCV 11 69 16 84 July 22 7 month 2022 July 2021 7 month 2021 317,691 2,171,715 293,126 1,974,828 YOUR COMMERCIALFULL-SERVICEPRINTER Contact PHIL JONES PhilJones@jones-printing.com ULTRA L ARGE CONTAINER VESSEL 5

h The increase for Anchor Members will be even less on a percentage basis: Bronze $2,025 ( $135 increase), Silver $3,205 ($185 increase), Gold $6,275 ($300 increase) and Platinum $12,475 ( $490 increase). These relatively modest increases will only partially offset the impacts of persistently higher inflation and the increased operating expenses of the current economic environment.

CHAPTER UPDATES WWW.VAMARITIME.COM/CHAPTEREVENTS 6

The association continued to connect, inform, and represent our members by proactive leadership and enchancing partnerships, competitiveness, and commerce throughout Virginia’s ports.

ASSOCIATION IN ACTION

h The association has launched a new website designed to improve the user experience. Additionally, users can register for membership and get up to date information about our International Trade Symposium happening September 28th-30th 2022.

h VMA 2022-2023 Dues- The VMA Executive Committee has approved dues increases effective with the October 1, 2022, billing cycle. The new dues rates for standard membership levels will be: Future Leader $ 120 ($15 increase), Non-Profit/ Additional Represenative $ 335 ($25 increase), Business Services $ 405 ($30 increase), Moving Cargo or Offering Maritime-Related Services $785 ($60 increase) and Vessel or Marine Terminal Operations $1,160 ($90 increase).

Central Chapter– September 8th 2022

November Southern Chapter – November 1st 2022 Valley Chapter – November 2nd 2022 Central Chapter – November 3rd 2022

September Southwest Chapter – September 1st 2022 Valley Chapter– September 7th 2022

Southern Chapter September 14th 2022 October Southwest Chapter – October 27th 2022

Upcoming (Check the Website for the Most Current Information)

The following are some new developments from the VMA:

DRONE UP Drone Services Provider BRONZE ANCHOR 160 Newton Road Suite 500 Virginia Beach,VA 23462 www.droneup.com UPCOMING EVENTS NEW MEMBERS

EVENT

7

VMA’s Maritime Leadership Certification program held an economic development and workforce development session on August 10th 2022. The program featured a virtual economic tour hosted by Bob Sharak with Norfolk Economic Development and Preston Wilhelm from Chesapeake Economic Development. Additionally, there was an industry panel with guest speakers Steve Cook from Hampton Roads Workforce Council, Jerry Cronin from Old Dominon University Open Seas, Amy Jordan from 757 Alliance, and Nancy Grden from ReInvent Hampton Roads. The program event was informative and participants gained invaluable knowledge. Next year’s applications for the program will be opening up later next year. SPOTLIGHT: VA www.buschvacuum.com23452 Norfolk, VA 23510 www.splice-it.com

BUSCH VACCUM SOLUTIONS Moving Cargo or Maritime Related Services 516 Viking Dr Virginia Beach,

SPLICE Moving Cargo or Maritime Related Services 201 E City Hall Ave

CLUBCustomsCONTACTS:Brokers&Int’lFreight

Association Finn Host •

Propeller

Assn.

Forwarders Hamptonwww.cbiffaofva.orgRoadsCoal Hamptonwww.hrcoal.org757-967-8000RoadsGlobalCommerce www.hrgcc.org757-217-5249

Council Kevin Speer •

Club - Port of www.tmtava.orgRayTidewaterwww.shenandoahtrafficclub.comLouisShenandoahwww.PropellerClubNorfolk.orgNorfolkValleyTrafficClubCranford•MotorTruckAssociationJalkio•ray@servicetransfer.net Virginia Ship Repair Association Sylvia Bell • Virginiawww.VirginiaShipRepair.org757-233-7034InternationalBusiness Councilwww.vaibc.org PLATINUM ANCHORCapesBDOAdvanSixMEMBERSUSA,LLPShippingAgenciesCMACGM(America),LLCColliersECPIUniversityEnvivaForvisGivensLogistics,LCGreatLakesDredge&DockCoKuehne+Nagel,Inc.KokosingIndustrial Marine Oil Service, Inc. Norfolk Oil Transit Pender & Coward, P.C. Port City Transportation Perdue Agribusiness, LLC SeaGate Terminals, LLC Suntrust Bank, Truist Tecnico TidewaterCorporationStaffing,Inc.TMEICCorporationUniversalLeafTobaccoCo.,Inc.VirginiaBusiness Virginia Department of VirginiaEnergyNatural Gas Wells Fargo Bank SILVER ANCHOR MEMBERS GOLDEN ANCHOR MEMBERS Avangrid Renewables - Kitty Hawk Wind Bay Diesel & Generator CV International, Inc. Drone Up Excel Truck Group Kaufman & Canoles, P. C. Seajacks UK Limited T. Parker Host Vandeventer Black LLP VHB Virginia Pilot Association VMA members benefit from affinity programs including discounts to clubs and hotels, as well as access to exclusive programs. www.VAmaritime.com/AffinityPrograms P.O. Box 3487 Norfolk, Virginia 23510 U.S.PRESORTEDSTANDARDPOSTAGEPAID NORFOLK, VA PERMIT NO. 1930 8

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