August Holds Record TEU Volumes and Profitability; CEO Says Consistency is the Goal

September 16, 2014

News Release
Sept. 16, 2014
Contact: Joe Harris
(757) 683-2137 / Office
(757) 675-8087 / Cell

Norfolk – August was a record-setter, in terms of cargo volume handled at The Port of Virginia and the consistent month-to-month increase in cargo is putting the port on pace for an historic year.

In August, the port handled 214,355 TEUS and set its all-time high for TEU volume handled in a single month. The mark eclipsed the old record — just set in July — by 6,584 TEUs. August’s TEU volume is an 8.1 percent increase when compared with the same month last year. In a year-to-date comparison (Jan. – Aug. 2014 vs. Jan. – Aug. 2013) the port is tracking 6.9 percent ahead of last year: 1,558,781 TEUs vs. 1,457,742 TEUs.

The port’s operating income in August was $2.2 million, which is an increase of 168 percent when compared with last August. In the first two months of fiscal 2015 (July- August), the port’s combined operating income is $4.20 million, a 91.3 percent increase when compared with the same period in fiscal 2014.

“We are two months into fiscal 2015 and have posted strong volumes and modest profitability, but this is only one part of the goal,” said John F. Reinhart, CEO and executive director of the Virginia Port Authority. “By no means are we declaring ‘victory;’ we have to become consistent in our delivery of service across the board and we are not yet there. We are moving in the right direction, and we are working to achieve the operational rhythm that translates into the high-level delivery of service that we’re seeking and that our stakeholders expect.”

The port has generated an operating profit in five of the last six months. Primary factors in August’s financial performance include the efficiencies realized from multiple initiatives implemented since February at the terminals to improve delivery of service and cargo flow while controlling costs. Additionally, peak-season cargo is driving the month-over-month growth in cargo volumes.

“We’re continuing to implement constructive changes to better serve our customers and stakeholders,” Reinhart said. “PMT came on-line yesterday and we will work our first vessel there in early October; we are closing-in on implementation of our automated gate and appointment system at Norfolk International Terminals and we just received a matching grant from the federal government to expand the North Gate at that terminal. Going forward, these things will add-up to improved throughput, greater efficiency and consistency.”

In August, truck volume increased by 12.9 percent and barge volume increased by 16.1 percent. Rail traffic was up 1.7 percent. Further, the Virginia Inland Port (VIP), the port’s intermodal terminal in Front Royal, also had strong volumes in August: VIP handled 3,002 containers, a 5.2 percent increase when compared with August 2013. Year-to-date, VIP has achieved 22.3 percent growth in container volume.

In August, the port worked 169 vessels (container, breakbulk and Ro-Ro).

The Virginia Port Authority (VPA) is a political subdivision of the Commonwealth of Virginia. The VPA owns and operates four general cargo facilities on behalf of the state: Norfolk International Terminals, Portsmouth Marine Terminal, Newport News Marine Terminal and the Virginia Inland Port in Warren County. In addition, the VPA leases Virginia International Gateway and the Port of Richmond.