MARITIME BULLETIN News and Information from the Port of Hampton Roads Volume 74, No. 1, January 2010

Familar Faces in ’s Capitol

Gov. Bob McDonnell Sean Connaughton Thelma Drake

Bob McDonnell’s election as Virginia’s 71st Governor and his subsequent cabinet appointments places several faces familiar to the maritime industry in key roles in his administration. When Governor McDonnell was a member of the House of Delegates, representing Virginia Beach, he sought to increase his knowledge and exposure to the maritime industry. Through his actions in the General Assembly, and later as Attorney General, he consistently demonstrated support for the Port of Hampton Roads. He understands the Port is an economic engine for all of Virginia and positioned to become the premiere port on the East Coast. Virginia’s maritime industry is also poised to benefi t by playing an important role in achieving one of the Governor’s top priorities; making Virginia the “Energy Capitol of the East Coast.” Governor McDonnell’s appointment of Sean Connaughton to his cabinet as Secretary of Transportation came as welcome news to the Port community. Secretary Connaughton is no stranger to the maritime industry. He headed and improved the effectiveness and profi le of the U.S. Maritime Administration (MARAD) from 2006 to 2009. During his term as MARAD Administrator he often visited the Port and paid particular attention to the Port of Hampton Roads. His personal involvement helped bring to reality the container-on-barge service between Hampton Roads and Richmond. As the Secretary of Transportation, Connaughton brings a valuable understanding of the relationship between the Port and the rest of Virgnia’s transportation system.

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Published by the Virginia Maritime Association, Norfolk, Virginia email:[email protected] -- web site: www.VAMaritime.com VIRGINIA MARITIME ASSOCIATION Import Security Filing (ISF “10+2”) Offi cers Enforced Chairman of the Board Kip Hinkle President The Department of Homeland Security’s Customs and Border Capt. J. William Cofer Protections’ Importer Security Filing (ISF) rule, a.k.a. “10+2” rule, Vice Presidents became enforceable on January 26, 2010. The rule requires importers Joseph A. Dorto and carriers of ocean going cargo to submit additional data elements for Thomas W. Godfrey, Jr. Shirley G. Roebuck cargo entering the as part of the Security and Accountability for Every Port Act of 2006 (SAFE Port Act). Executive Vice President & Secretary Under the ISF rule, importers and maritime cargo carriers must Arthur W. Moye, Jr. submit additional cargo data to CBP 24 hours prior to vessel loading. Treasurer Importers are legally responsible for the accuracy and timeliness of their Judy M. Barrett ISF fi lings, regardless of whether a customs broker or other intermediary does the actual fi ling. Assistant Treasurer Stephen M. Carmel Imports have to report 10 data elements on each ISF, including information that identifi es the manufacturer, supplier, seller, buyer and Staff consignee; the country of origin and tariff classifi cation number; where Vice President and by whom the goods were stuffed into the container; and the party David C. White responsbile for compliance with applicable import requirements. CBP’s Executive Assistant goal is to have all data elements fi led 24 hours prior to lading, but it has to Executive Vice President Janice S. Klasek allowed for some fl exibility either in timing or interpretation of six Accounting of the data elements. Kristie A. Acors The ISF rule took effect on January 26, 2009, but was not being Jennifer N. Parham enforced, allowing entities affected by this rule a year to be properly Shipdesk Clerk trained on the fi ling process. There have been many obstacles in ISF Lynne H. Stonum implementation. Membership/Publication Importers will be subject to fi nes of $5,000 each time an IFS fi ling is Coordinator/Editor late or inaccurate. Importers could face maxium penalties of $10,000 Susan N. Wisniewski on one shipment if they are late and have erroneous data. Mitigating Anchor Members circumstances include evidence of progress in the implentation of the Branscome, Inc. ISF requirement during the fl exible enforcement period (January 26, Maersk Line Limited 2009 through January 26, 2010). McAllister Towing of Virginia TowneBank Virginia International Terminals New Member Virginia Pilot Association Virginia Port Authority Owner Operators Coalition of Virginia (OOCVA) Trade Association MARITIME BULLETIN is published PO Box 15779 12 times a year by Newport News, VA 23608 Virginia Maritime Association. Mr. Paul M. Yurkovac, Public Relations, Project Coordinator Subscriptions are available through membership in the Association 757-310-8090 e-mail: [email protected] website: www.oocva.org

Recipient of Presidential “E” and IN THIS ISSUE “E Star” Awards for Excellence in Export Service 1. Cover Page 4. Port Statistics5. VMA Highlights Recipient of ASAE Communication 2. ISF 10+2/New Member 5. VMA Highlights Excellence & Honorable Mention 3. Maritime News 7. Club Contact/Upcoming Events Award 2 Maritime News Familar Faces in Virginia’s Capitol Continued from cover

Thelma Drake, another face familiar to the Port community, will lead the Department of Rail and Public Transportation (DRPT), working closely with Secretary Connaughton. During Ms. Drake’s terms as a member of Congress, and previously as a member of Virginia’s House of Delegates, she advanced legislation and supported projects benefi cial to the Port and Virginia’s maritime industry. Rail connections are a critical component to the success of the Port and as the head of the DRPT Ms. Drake will represent the state’s interests in interstate and national rail issues. Governor McDonnell selected her for her knowledge of state and federal transportation issues. Terrie Suit has been appointed to Governor McDonnell’s cabinet as the Assistant to the Governor for Commonwealth Preparedness. Ms. Suit represented Virginia Beach for nearly a decade in Virginia’s House of Delegates. During that time she regularly participated in maritime activities and consistently demonstrated support for the Port of Hampton Roads. In 2008, Ms. Suit resigned from the House of Delegates to become Director of Government Affairs for Willams Mullen and remained in close contact with the VMA. Ms. Suit’s understanding of the maritime industry will be valuable in the Offi ce of Commonwealth Preparedness’ handling of issues of importance to the Port; such as Port Security and Hurricane Response and Recovery. For Virginia’s maritime industry, Governor McDonnell and his appointees are welcome additions to the Executive Branch of Virginia government. The VMA looks forward to continuing to work with these extremely capable people in their new roles leading Virginia.

Committee Updates

International Trade Symposium Committee Discussions held in the December meetings of the International Trade Symposium Committee were focused on topic development. The committee also discussed changes to the marketing plan, registration fees, and sponsorship packages. VMA’s International Trade Symposium and 90th Annual Maritime Banquet are scheduled for May 13, 2010.

Inland Transportation Committee The emphasis of the December 2 meeting of the Inland Transportation Committee was the local procedures and preparedness for implementation of the Final Rule regarding Intermodal Equipment Providers and for Motor Carriers and Drivers Operating Intermodal Equipment which places new requirements on drivers, motor carriers, and intermodal equipment providers. The committee also received updates from VIT and APM regarding terminal operations and the recently imposed schedule for drawbridge openings at the Berkley Bridge.

Berkley Bridge Ad-hoc Committee The Berkley Bridge Ad-hoc Committee continued to meet in December to assess the impacts and make recommendations regarding new restrictions on the drawbridge operations at the Berkley Bridge. The new restrictions limit daytime bridge lifts for transiting vessels to 9:00a.m., 11:00a.m., 1:00p.m., and 2:30p.m. The committee obtained data and information to support a position taken by VMA calling for the inclusion of certain bridge lift operating procedures needed to meet the reasonable needs of navigation. 3 Vessels by Dec-09 YTD-09 Dec-08 YTD-08 Type Arrive Sail Arrive Sail Arrive Sail Arrive Sail Distribution of Coal Dumpings at Hampton Roads BULK (in net tons of 2,000 lbs.) AMERICAN 00110012 Dec-2009 12 month 2009 Dec-2008 12 month 2008 FOREIGN 15 18 149 151 15 14 201 192 Total Hampton Roads 3,015,781 33,455,730 2,355,517 42,299,494 TOTAL 15 18 150 152 15 14 202 194 NS 1,341,671 14,437,350 797,291 18,895,304 Pier IX 628,580 7,969,490 739,301 9,693,327 COAL DTA 1,045,530 11,048,890 818,925 13,710,863 AMERICAN 3 3 32 33 2 2 18 19 FOREIGN 49 40 442 430 28 28 460 469 Export Cargo - H. Rds. 2,781,409 28,324,311 1,955,781 36,559,273 TOTAL 52 43 474 463 30 30 478 488 NS 1,287,903 13,757,514 698,184 17,392,620 Pier IX 588,016 7,252,808 718,883 9,458,117 COMBO DTA 905,490 7,313,988 538,715 9,708,537 AMERICAN 00000000 FOREIGN 4 4 60 61 6 6 72 72 Coastwise & Other - H.R 234,372 5,131,419 399,736 5,740,221 TOTAL 4 4 60 61 6 6 72 72 NS 53,768 679,836 99,107 1,502,684 Pier IX 40,564 716,681 20,418 235,210 CONTAINER DTA 140,040 3,734,902 280,211 4,002,327 AMERICAN 22 19 222 218 17 17 182 181 Source: Hampton Roads Coal Piers FOREIGN 112 109 1450 1440 127 127 1618 1621 TOTAL 134 128 1672 1658 144 144 1800 1802

Port of Hampton Roads TEU's GENERAL (Twenty Foot Equivalent Units) AMERICAN 11680056 Nov-2009 11 month 2009 Nov-2008 11 month 2008 FOREIGN 8 8 71 69 12 12 80 76 Hampton Roads 154,577 1,597,029 172,347 1,932,343 TOTAL 9 9 77 77 12 12 85 82

Source: Virginia Port Authority OTHER AMERICAN 0 1 22 26 1 1 14 11 FOREIGN 2 3 26 25 1 1 32 30

Customs Receipts - Virginia Customs District TOTAL 2 4 48 51 2 2 46 41 Nov-2009 11 month 2009 Nov-2008 11 month 2008 Hampton Roads $50,865,899 $551,348,116 50,850,439 $601,280,308 RORO Other VA $1,621,185 $23,858,381 3,209,836 $51,230,388 AMERICAN 00450066 FOREIGN 4 3 64 63 5 6 65 72 Total $52,487,083 $575,206,497 $54,060,275 $652,510,696 TOTAL 4 3 68 68 5 6 71 78

Source: U.S. Customs and Border Protection TANKER

AMERICAN 1123001011

Passenger Cruises FOREIGN 12 12 136 130 15 15 162 159 Dec-2009 12 month 2009 Dec-2008 12 month 2008 TOTAL 13 13 138 133 15 15 172 170

Number of Vessels 0 15 0 27 AMERICAN 27 25 289 294 20 20 236 236 Number of Passengers 0 57,575 0 91,218 FOREIGN 206 197 2398 2369 209 209 2690 2691 Source: Nauticus TOTAL 233 222 2687 2663 229 229 2926 2927 VMA Highlights

Association in Action

December provided several opportunities to meet with members of Virginia’s General Assembly prior to the 2010 General Assembly session. The General Assembly’s Joint Subcommittee Studying Public-Private Partnerships Related to Seaports is to report the results of its fi ndings about the role of privatization in Virginia’s seaports to state lawmakers during the 2010 General Assembly session. Art Moye represents the VMA on this important body. At its fi nal meeting on December 3rd, the subcommittee received presentations from each of the three groups that have submitted proposals to assume control of the operations at the state-owned terminals. On December 3rd, the VMA submitted comments to the U.S. Coast Guard regarding restrictions on the drawbridge operations at the Berkley Bridge, limiting daytime bridge lifts for vessel traffi c to 9:00 a.m., 11:00 a.m., 1:00 p.m., and 2:30 p.m. The VMA provided safety, economic, and legal support in opposing the scheduled lifts recently imposed on the industry. The comment letter also offered recommendations with regard to alternative solutions that would improve the fl ow of vehicular traffi c crossing the Berkley Bridge without harming the maritime industry. The VMA is not necessarily opposed to some workable form of scheduled drawbridge openings, provided the regulations governing the drawbridge operations meet the reasonable needs of navigation On December 14th, the VMA took part in an After Action Report meeting to defi ne what lessons were learned from the November 10 tabletop exercise focused on business continuity, recovery and resumption of trade following a terrorist event in the Port of Hampton Roads. The VMA was also part of the planning team leading up to this exercise which was conducted by the Virginia Area Maritime Security Committee and the Hampton Roads Planning District Commission. A simulated terrorist event allowed port partners to exercise business continuity and recovery plans and the After Action Report identifi ed areas of strength and improvement. December 18th, was the fi rst meeting of the recently established Freight Transportation Advisory Committee (FTAC) of the Hampton Roads Transportation Planning Organization (HRTPO). The HRTPO is the federally recognized metropolitan planning organization responsible for transportation planning in the Hampton Roads region. The FTAC will advise the TPO Board on regional freight transportation requirements. The FTAC will also conduct public outreach activities that help TPO efforts to explain and help raise awareness of the importance of freight transportation to the region and to collect region-wide public input on these matters. Art Moye represents VMA on this important advisory committee and this fi rst meeting focused on identifying priority issues and committee organization. Previously, the TPO did not have a formal mechanism for considering freight movement requirements in the region’s transportation planning.

5 PRESORTED STANDARD U.S. POSTAGE PAID NORFOLK, VA PERMIT NO. 1930

236 E. Plume Street Norfolk, Virginia 23510 P.O. Box 3487 Norfolk Virginia (757) 622-2639; FAX 622-6302 web site: www.VAMaritime.com email: [email protected] Club Contacts Customs Brokers & Int’l Freight Fowarders Assn. Hampton Roads Traffi c Club Propeller Club - Port of Norfolk Contact: Katie Carney, 446-1504 Contact: Peter Simmons, 466-8899 Contact: Mark Wilder, 440-7031 website: www.HamptonRoadsTraffi cClub.org website: www.PropellerClubNorfolk.com Hampton Roads Coal Association Contact: Michael Carmon, 826-5310 ODU Maritime Institute Speaker Series Tidewater Motor Truck Association Contact: Sara Russell, 683-3964 Contact: Shirley Roebuck, 398-0679 Hampton Roads Foreign Commerce Club Bill Jackson, 627-0604 Contact: Stephanie Rozzell, 857-3385 Organizaiton for Women in Int’l Trade (OWIT) website: www.HRFCConline.com Contact: Karen Bland, 926-5296 Virginia Ship Repair Association Contact: Mal Branch, 233-7034 www.VirginiaShipRepair.org March Club Events Calendar Mon Tues Wed Thur Fri Sat/Sun 12 3 45 6/7 OWIT Fair Trade 12:00 Williams Mullen’s Offi ce Domion Tower, 17th Fl.

89 10 11 12 13/14 Traffi c Club Propeller Club Warehouse/Rail Road 11:30 Town Point Club 5:30 Holiday Inn Greenwich

Coal Association No Meeting

15 16 17 18 19 20/21 Ship Repair Assn. Foreign Commerce 11:30 Renaissance Hotel 11:30 Town Point Club

ILA Holiday

22 23 24 25 26 27/28 Freight Forwarders 12:00 Norfolk Waterside Marriott

29 30 31 Motor Truck Assn. 6:00 Elizabeth Manor Country Club