FY2018 Yields Cargo Record, Progress on Capacity Expansion and Approval for Deeper, Wider, Safer

July 11, 2018

Contact: Joseph D. Harris Spokesman (757) 683-2137 / Office (757) 675-8087 / Cell jharris@portofvirginia.com

FY2018 Yields Cargo Record, Progress on Capacity Expansion and Approval for Deeper, Wider, Safer
62% of Volume Handled by Truck, 35% Rail, 3% Barge

NORFOLK, VA – Driven by an increase in imports, The Port of Virginia® completed fiscal year 2018 (FY18) having handled 2.8 million twenty-foot equivalent units (TEUs), which is a volume increase of 2.4 percent when compared with last fiscal year.

“We finished the fiscal year in positive territory – our fourth consecutive fiscal year of growth,” said John F. Reinhart, CEO and executive director of the Virginia Port Authority. “Our import container volume was up nearly seven percent, truck volume was up almost five percent, barge volume was up six percent and our volumes at Virginia Inland Port (VIP) and Richmond Marine Terminal (RMT) grew as well.”

The port’s fiscal year closed June 30 and in that month the port handled 223,842 TEUs, which was a drop of 3.4 percent – about 7,800 TEUs — when compared with last June. As in April and May, June’s volumes were off when compared to the same months last year because of an ongoing effort to limit the number of empty containers flowing across the terminals during construction. Presently, the port is in the midst of a $700 million capacity expansion at its two primary container terminals, Virginia International Gateway (VIG) and Norfolk International Terminals (NIT).

“We were off from our forecast, but much of that can be attributed to the effort to limit the empty container imports and exports,” Reinhart said. “As a result, our total empty container volume was down by more than 76,000 TEUs. What’s important is that our action is having its desired intent, which is to increase efficiency at the terminals and ensure that loaded containers are our priority right now.”

June’s volumes at VIP and RMT were up 21 percent and 66 percent, respectively; breakbulk tonnage increased 13 percent and total barge traffic was up 17 percent. Reinhart is not measuring FY18’s success only in terms of volume.

“We’ve made progress on many fronts throughout the year,” he said. “Our expansion is on schedule and on budget. The port continues to grow and act as a catalyst for commerce throughout the Commonwealth. And, we have the federal approval to begin the process to widen and deepen – 55 feet — the commercial shipping channels serving the Norfolk Harbor.

“The Port of Virginia team and our labor partners gained an incredible amount of ground (in FY18), we did so safely and still have a long way to go. We were not perfect, but we never lost sight of our goals and our values. Our effort is aimed at improving service to our customers, our beneficial cargo owners and port users. We are reviewing our strategic growth plan to ensure that we have diverse cargo mix while closely monitoring the impacts of tariffs and what they mean for our port.

“The work being done today is positioning The Port of Virginia for success for decades to come and our success helps to drive job creation and investment across the state. We will not let up, there is still much work to be done and we are up to the task.”

Fiscal Year 2017 and June cargo highlights

Highlights of FY2018

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The Virginia Port Authority (VPA) is a political subdivision of the Commonwealth of Virginia. The VPA owns and through its private operating subsidiary, Virginia International Terminals, LLC (VIT), operates four general cargo facilities Norfolk International Terminals, Portsmouth Marine Terminal, Newport News Marine Terminal and the Virginia Inland Port in
Warren County. The VPA leases Virginia International Gateway and Richmond Marine Terminal. A recent economic impact study showed that The Port of Virginia provides more than 530,000 jobs and generates $88.4 billion in total economic impact throughout the Commonwealth.