VMA' Maritime Bulletin Edition 87 Vol. 1

2022 CONTAINER VOLUMES EXCEED 3.7 MILLION TEU

NORFOLK, VA –The Port of Virginia is posting its most productive year on record having processed more than 3.7 million TEUs (twenty-foot equivalent units) in 2022, an increase of 5.1%.

“We made real progress in 2022 and it was another very solid year for volumes,” said Stephen A. Edwards, CEO and executive director of the Virginia Port Authority. “Our service and performance levels continue to improve and each quarter our truck, chassis, rail and vessel performance metrics advanced. I want to thank all of our employees, the International Longshoremen’s Association and our supply chain partners for being significant contributors to our success.”

The port achieved three of its top four months for container volume in 2022, with trade volumes peaking in May at an alltime high of 341,611 TEUs.

The port’s focus on its sustainability program and becoming a net-zero carbon emissions operation by 2040 also advanced.

“To ensure that we remain an economic engine, we are investing billions of dollars to create one of the fastest-growing and most technologically-advanced port complexes in the world,” Edwards said.

Edwards attributes the successful year to multiple factors: an experienced operations team, constant preparation, efficiency, consistency and the Virginia Model.

“We own and operate the terminals and the Hampton Roads Chassis Pool and this allows for quick decision making that

ensures we are doing the right thing for the customer within the capabilities of the operation,” Edwards said. The port is expanding its assets and building the benefits of the Virginia Model by investing in both long- and short-term projects aimed at driving efficiency, capturing more cargo and preparing for the future. Those projects include:

• NIT North: Renovate, expand and modernize the North Berth at Norfolk International Terminals (NIT) and create capacity for 1,400,000 TEU.

• Dredging: Deepening (to at least 55 feet) and widening the Norfolk Harbor and commercial channels to safely accommodate fully-laden ULCVs (ultra-large container vessels) and ensure safe, two-way movement of these vessels.

• NIT Central Rail Yard: Expanding the Central Rail Yard at Norfolk International Terminals (NIT) to accommodate 470,000 additional annual TEU.

• Offshore Wind: The port is in the process of preparing Portsmouth Marine Terminal (PMT) to become the US East Coast’s logistics hub for the offshore-wind industry.

Cargo Snapshot CY2022 vs. CY2021

• Total TEUs – 3,703,230, up 5.1%

• Loaded Export TEUs – 1,076,146, up 2.5%

• Loaded Import TEUs – 1,728,911, up 2.9%

• Total Containers – 2,055,043, up 4.9%

INSIDE THIS EDITION

h 2022 Container Volumes Exceed 3.7 Million TEU (1) h Five New Ship To Shore Cranes Coming To The Port of Virginia (3) h Maritime Economic Development Programs Making Good on Promises (2) h FY23 Appropriations Bill (3) h Crowley To Build Service Operations Vessel For Siemens Gamesa (4) h New Members (7)

@VAmaritime 1 “The Voice of Port Industries” Volume 87 No. 1 January 2023

The Port of Virginia “The Port of Virginia’s 2022 Cargo Volume Up 5% With More Than ” 3.7 Million TEUs Processed” January 18th, 2023

OFFICERS

Chairman of the Board

Micheal Coleman

CV International, Inc

President

Judy Barrett

Townebank

Vice Presidents

Lang Williams

Colliers

Kenneth Flowers

Moran Norfolk

Capt.Whiting Chisman

Virginia Pilot Association

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 Membership Development............................Kristen Greene

Executive Assistant................ Jennifer S. Deason

Event Manager & Accounting Assistant............ Jennifer N. Parham

Marketing Coordinator.................. Will Ward

Membership & Publications Coordinator.....................Susan N. Wisniewski

MARITIME ECONOMIC DEVELOPMENT PROGRAMS MAKING GOOD ON THEIR PROMISES

We’re all used to reading the regular development announcements stating that a given company will locate or expand somewhere in Virginia and invest a certain amount of money to create a certain number of jobs. However, many of those announcements don’t fully materialize as expected according to a recent Joint Legislative Audit and Review Commission (JLARC) report - sometimes 25 percent or less of them do.

The report, entitled “Economic Development Incentives 2022,” looked at 14 different incentive programs the state has utilized and concluded that over 10 years – from fiscal year 2012 to fiscal year 2021 – only 26% of the 1,497 “completed” projects announced within those incentive programs achieved their job creation goals.

Furthermore, of the 14 incentive programs studied, only two fully achieved their job creation and capital investment targets. Both are maritime related: the Advanced Shipbuilding Training Facility Grant and the Port of Virginia Economic and Infrastructure Grant.

From 2012 to 2016, the Advanced Shipbuilding Training Facility Grant provided qualified shipbuilders in eligible cities the ability to receive grant funding for training or capital costs of any new training facility. These funds were contingent upon the creation of a specified number of new full-time jobs, retention minimums, maintenance of base training expenses, and the amount of the capital investment made and retained. This program was replaced by the Advanced Shipbuilding Production Facility Grant.

The Port of Virginia Economic and Infrastructure Development Grant currently provides qualified companies the incentive to locate new maritime-related employment centers (or expand existing centers) in certain localities to encourage the growth of port-related activity. These funds are also contingent on the number of new, full-time employment positions created.

However, while the 26% completion rate seems low, according to the report, “Virginia spent $3.2 billion on 87 economic development incentive programs over the past 10 fiscal years, for an average of $320 million per year,” creating 70,000 jobs and $17 billion in capital investments.

Regarding the allocation, the report states that 72% of the incentive spending has been for tax incentives “such as sales and use tax exemptions ($1.6 billion), tax credits, and single sales apportionment for manufacturers and data centers ($560 million.)” The report continues that “the remaining 28 percent was spent on grants ($905 million) and other incentives such as loans and gap financing programs ($36 million).” Also, “Grant programs have substantially higher economic benefits than tax incentives, when benefits are assessed per $1 million spent. Tax credits, in particular, have the lowest economic benefits and are ineffective in generating economic benefits for the state compared to grants. However, Virginia has historically spent more on tax incentives than on grants.”

The MARITIME BULLETIN is provided through membership. Follow Us on Social Media: @VAmaritime Contact wward@vamaritime.com to Advertise in the Next Bulletin! 2

FY23 APPROPRIATIONS BILL SUPPORTS VIRGINIA INFRASTRUCTURE, NAVIGATION & WORKFORCE

On December 29th, 2022, President Biden signed the $1.66 trillion-dollar FY23 Appropriations Bill into law, funding the federal government for another fiscal year and averting a government shutdown.

Nationally, several programs and projects that are important to our maritime and supply chain industries were funded, to include 300 additional Customs & Border ProtectionPatrol agents, over $34 billion dollars for Army Corps of Engineers (USACE) Civil Works projects, and $26.7 billion more than the previous year for naval shipbuilding.

In Virginia, our Congressional Delegation was key to securing funding for the following projects and initiatives that will improve our flow of commerce and our competitive position as a state, to include:

Infrastructure

•$30 million for the USACE to support the Craney Island Eastward Expansion in Portsmouth, which will significantly increase the Virginia Port’s capacity by providing for an additional 522 acres of dredged material storage cells, extending the life of the existing Craney Island Dredged Material Management Area by 11 years. This project will also eventually create land for a new port facility adjacent to the Norfolk Harbor Channel.

•$7 million to aid the Virginia Department of Transportation in the design and construction stages of a project to widen a 2.21 mile section of U.S. 121/U.S. 460—the Coalfields Expressway—to a four-lane highway in order to better promote economic development in Buchanan County.

Navigation

•$11.12 million for the USACE to complete necessary operations and maintenance work along the James River Channel in Richmond, as well as $7.04 million for the Albemarle & Chesapeake Canal route of the Atlantic Intracoastal Waterway, and $28.6 million for Norfolk Harbor.

•$5 million for the USACE to conduct Preconstruction Engineering and Design (PED) activities for replacement of the North Landing Bridge in Chesapeake.

Education & Workforce

•$1 million for Old Dominion University to establish a Center for Offshore Wind Energy Cyber Vulnerabilities and Threat Identification, which will provide cybersecurity and defense strategies in Norfolk, Virginia Beach, Suffolk, and Newport News.

•$643,000 for Old Dominion University to support the Maritime Skilled Trades Alignment Project (MSTAP) in Suffolk. Specifically, the funding will be used to run a training program focused on curricula standards that are better aligned with public and private maritime skilled trades requirements.

The VMA continues to engage our Congressional Delegation to fund programs and projects critical to our maritime & supply chain industries. While we’re pleased with the results of the FY23 Appropriations Bill, we’re already working on securing funding in the FY24 President’s Budget, to include initial PED funding for the deepening of the Southern Branch of the Elizabeth River and other priorities.

FIVE NEW SHIP- TO- SHORE CRANES COMING TO THE PORT OF VIRGINIA

NORFOLK, VA – The Port of Virginia recently finalized the terms of purchase for five new ship-to-shore cranes that are part of an equipment renewal plan that ensures the port’s container terminals and cargo handling equipment are modern and prepared for the future. The new 170-foot tall cranes will be built by Shanghai-based Zhenhua Heavy Industries Co., Ltd., (ZPMC) at a cost of $61.6 million.

“In order to maintain our efficiency and competitive edge, it’s important to be continually upgrading with modern equipment,” said Stephen A. Edwards, CEO and executive director of the Virginia Port Authority. “These cranes will ensure our lift capacity, berth productivity and the ability to handle multiple ultra-large container vessels (ULCVs) simultaneously at our primary container terminals, Virginia International Gateway (VIG) and Norfolk International Terminals (NIT).”

These cranes will be able to accommodate the ULCVs, that are making regular stops in Virginia and even higher-volume ships of the future. Each crane has the capacity reach across a vessel that is 26 containers wide, which is three-to-four containers beyond the reach of most cranes.

Delivery is set for December 2024 with two of the units going to VIG and three to the South Berth at NIT; the port will retire an equivalent number of existing cranes at those facilities. Once in place, the port will have 30 ship-to-shore cranes at work in the Norfolk Harbor and the ability to service the biggest container ships at sea.

“We are in an expansion phase and we must be able to further improve our productivity and capabilities,” Edwards said. “We are showing our customers and port users that they can continue to count on The Port of Virginia as they grow their vessel sizes and cargo volumes.”

The Port of Virginia. “The Port of Virginia Completes Deal For 5 Ship-ToShore Cranes To Support Preparedness, Modernization Plan”. January 24th 2023.

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Crowley and Danish Offshore maritime leader ESVAGT have announced an agreement to jointly build and operate a service operations vessel (SOV) under a long-term charter with Siemens Gamesa Renewable Energy.

U.S.-based Crowley will manage and crew the SOV to support Siemens Gamesa’s service operations on the Dominion Energy Coastal Virginia Offshore Wind project. ESVAGT, based in Denmark, will support Crowley with design, construction, crew training and operation services as part of the two companies’ joint venture, CREST Wind, created in 2021 to deliver the best of both worlds: combining European designs and operating practices with the safety and operational expertise of the premier U.S. vessel operator.

The 289-foot vessel will feature state-of the art technologies to augment safety, workability and comfort to support the O&M activities of the wind farm project. It will have modern accommodations for 80 crew and technicians. Consistent with federal law, the vessel will be U.S. built when it enters service in 2026.

“This vessel marks another significant milestone in our overarching, combined capabilities to help develop, construct and serve the U.S. offshore wind market and America’s clean,

renewable energy needs,” said Bob Karl, senior vice president and general manager, Crowley Wind Services. “We appreciate Siemens Gamesa’s trust in our capabilities, and we look forward to continuing our work to develop state-of-the-art, purposebuilt vessels to meet sustainable energy demands in the U.S.”

“This first contract in the U.S. is a landmark event for ESVAGT in our quest to help drive the green transition as a global leader of SOV services,” said Chief Strategy and Commercial Officer Soren Karas of ESVAGT. “We are excited to bring our decades of offshore wind experience to bear in a new market through our CREST JV with the premier Jones Act operator, Crowley.

Dominion Energy plans to construct 176 14.7 MW Siemens Gamesa wind turbines and three offshore substations, generating enough clean, renewable energy to power up to 660,000 homes. It would avoid 5 million tons per year of carbon emissions compared with fossil fuel usage for power.

“This is an important step in the development of a skilled offshore workforce in America,” said David Hickey, CEO, Service Americas for Siemens Gamesa. “This charter will enable us to provide top-tier service for the Coastal Virginia Offshore Wind project with a U.S.-built vessel.”

Crowley. “ESVAGT to Build and Operate Service Operations Vessel for Siemens Gamesa at Coastal Virginia Offshore Wind Project”. January 17th 2023. Photo courtesy of Crowley.

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CROWLEY TO BUILD SERVICE OPERATIONS VESSEL FOR SIEMENS GAMESA

VESSELS BY TYPE

PORT OF HAMPTON ROADS TEU’S

PORT STATISTICS | DECEMBER 2022

DISTRIBUTION OF COAL DUMPINGS HAMPTON ROADS REGION (IN NETTONS OF 2,000LBS)

RECEIPTS - VA CUSTOMS DISTRICT Source: US Customs and Border Protection. Some stats unavailable at this time. Dec-2022 12 month 2022 Nov-2021 11 month 2021 $160,664,242 $2,169,526,359 $149,037,956 $1,454,099,838 Dec 2022 12 month 2022 Dec-2021 12 month 2021 TOTAL 2,382,928 32,088,287 2,381,179 29,669,846 NS 879,824 11,799,457 843,668 10,912,786 Pier IX 546,731 7,735,198 366,273 5,724,304 DTA 956,372 12,553,632 1,171,238 13,032,756 Dec-22 YTD-22 Dec-21 YTD-21 Arrive Arrive Arrive Arrive BULK 20 238 18 200 COAL 35 395 32 368 CONTAINER 125 1435 127 1461 GENERAL 8 98 7 103 PASSENGER 0 38 0 3 RORO 7 69 6 78 TANKER 5 77 6 101 TOTAL 200 2350 196 2314 ULCV 12 126 11 137 Dec 22 12 month 2022 Dec 2021 10 month 2021 273,965 3,703,231 325,527 3,522,835 ULTRA L ARGE CONTAINER VESSEL 5

CUSTOMS

ASSOCIATION IN ACTION

Industry advocacy, navigational matters, business development, and strategic planning have been recent areas of emphasis for VMA.

VMA continues to have regular interactions with Virginia’s Congressional delegation, the Virginia General Assembly, and administration of Governor Youngkin. This has included weighing in on policies the Governor’s office is developing for energy, economic development, and workforce development. Congressional outreach has emphasized funding needed to advance the deepening of the Southern Branch of the Elizabeth River and the eastward expansion of Craney Island.

VMA is committed to promoting and preserving unrestricted commercial navigation. The Association has coordinated or contributed to meetings regarding the needs for offshore wind development without impeding navigation or port growth, the port’s requirements for commercial anchorages, and vessel operations on our rivers. In addition to VMA organized meetings, this has included participation or presentations to the Atlantic Intracoastal Waterway Association Annual Conference, contributing public comments to the Bureau of Ocean Energy Management, and aiding the James River Partnership.

VMA has been pleased to work with members and economic development organizations to attract more port and supply chain related business, including facilitating connections and supporting site visits. More formally, this has included providing assistance as the City of Chesapeake conducts an industrial waterfront study and participating with the state’s Advisory Committee on International Trade.

ANCHOR UPGRADES

AVANGRID RENEWABLES- KITTY HAWK WIND

PLATINUM ANCHOR

Renewable Energy

Ashley Mcleod

757-748-7084

Ashley.Mcleod@avangrid.com

STG LOGISTICS

BRONZE ANCHOR

Intermodal/ Moter Carrier

Linda Melvin

201-407-7592

linda.melvin@stgusa.com

CAPITAL FINANCIAL GROUP

SILVER ANCHOR

Investment Services

Jim Blassingham

757-461-2210

jim.blassingham@capitalfinancialgrp. com

NEW ANCHOR MEMBERS

SHOPIFY

SILVER ANCHOR

Packaging and Logistics Services

Kyle Davis

804-972-1601

kyle.davis@shopify.com

TRIDENTIS BRONZE ANCHOR

Engineers/ Naval Architects

David Jochum

571-243-0870

david.jochum@tridentis.com

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NEW MEMBERS

BRUNKE & COMPANY LLC

Maritime Related

Curtis Geske 757-220-0134

curtis.geske@brunkecpa.com

BURNS & MCDONNELL

Moving Cargo

Scott Chewning 757-350-4404

bschewning@burnsmcd.com

MANEKIN

Commercial Real Estate

John Graham 410-290-1435

jgraham@manekin.com

MATAN COMPANIES/ PORT

460 LOGISTICS CENTER

Commercial Real Estate

JP Matan 301-694-9200

jpmatan@mataninc.com

MOBILE SAFETY SOLUTIONS

Moving Cargo

Kyle Cheatwood 757-394-4408

safetytrainingforyou@yahoo.com

NORTH CAROLINA WESLEYAN UNIVERSITY

Education

Dr. Paul Ewell 757-6504285

drpaulewell@gmail.com

OCEAN CONTAINER SOLUTIONS

Moving Cargo

Daniel LeGrande 757-374-2307

dlegrande@oceancontainer solutions.com

KSARIA

Moving Cargo

Matt Daugherty 978-933-0074

mdaugherty@ksaria.com

ADDITIONAL REPRESENTATIVES

BLUE RIDGE BANK

Bank/Invenstment and Mortage Loans

Clyde Clark 757-254-4709

clyde.clark@mybrb.bank

GIVENS

Trucking

Jason Strickland 757-373-8211

jstickland@givens.com

PERDUE AGRIBUSINESS, LLC

Agriculture

Herb Frerichs 410-341-2109

herb.frerichs@perdue.com

EVENT SPOTLIGHT- MARITIME MIXER

CARROLL TRUCKING

Trucking

Robert Cave 757-957-2014

rcave@carroll-trucking.com

MAERSK LINE LIMITED

Steamship Owners

Christopher Anderson 757-615-9367

cdanderson1972@gmail.com

Alexandra Ervin 757-536-770

hervin@mllnet.com

The first VMA Maritime Mixer of 2023 took place at Chick’s Oyster Bar on January 26th. The event had over 200 attendees who represented many of our industry organizations. Thank you to all our sponsors Crowley, Dominion Energy, World Distribution Services, Tidewater Staffing, Mid Atlantic Leasing Corp, Bay Power Solutions, T. Parker Host, Cornerstone Systems, and Freight Logistics Services USA. An additional thank you goes to all our members and guests who helped make this maritime mixer a success. Please visit our website to stay updated on upcoming events.

VANE LINE BUNKERING

Towing and Transportation

Robert Forrester 757-752-1998

rforrester@vanbrothers.com

CMA CGM (AMERICA) LLC

Steamship Owners

Jillian Aller 866-326-2246 usa.jaller@usa.cma-cgm

ZIM SHIPPING

Steamship Owners

Katherine Munz 757-639-5854

katherinshinault@yahoo.com

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