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%

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.”