MARITIME BULLETIN News and Information from the Port of Hampton Roads

Volume 70, No 8, August, 2006

This months Maritime Bulletin is Sponsored by: California Multimodal Inc. It’s Official HRMA Now Maritime Association

Meade Stone, Jr. signs document to officially change HRMA to Virginia Maritime Association The historic event is being witnessed by ( l-r) Capt. George Watkins, Art Moye, Jr., Capt. J. William Cofer, Robert Armbruster and Kip Hinkle

July 20, 2006 marked a new day in the Association’s history book. After 61 years as the Hampton Roads Maritime Association, the Association officially changed its name to the Virginia Maritime Association. Since its incorporation in 1920 as the Hampton Roads Maritime Exchange our trade association has strived to meet the changing needs of our members and the businesses impacted by the Port. In 1945, as part of its evolution, the organization was renamed the Hampton Roads Maritime Association. Even as our mission remains to promote, protect, and encourage waterborne commerce, the membership and scope of our influence continues to increase throughout the Commonwealth of Virginia. Changing the Association’s name to the Virginia Maritime Association more accurately reflects our role as the trade association for Virginia’s maritime industry.

Published by the Virginia Maritime Association, Norfolk, Virginia email: [email protected] -- web site: www.portofhamptonroads.com VIRGINIA MARITIME ASSOCIATION

Officers Chairman of the Board Charles E. Brinley

President Meade G. Stone, Jr.

Vice Presidents Robert P. Armbruster Joseph A. Dorto Kip Hinkle

Executive Vice President & Secretary Arthur W. Moye, Jr.

Treasurer Transporting the World’s Cargo Judy M. Barrett

Assistant Treasurer Faster, Safer and Smarter Stephen M. Carmel When people ask what CMI does, Robert A. Curry, Jr., CMI’s President, tells them “we control the uncontrollable. Moving cargo through the Staff Administrator world’s busiest ports is challenging - circumstances can change by the David C. White hour. And though some situations are beyond our control, we are a company made up of men and women who think on our feet.” Executive Assistant At CMI, their approach can best be described as “whatever it takes.” to Executive Vice President Janice S. Klasek Being nimble yet focused has earned CMI an untarnished reputation for no-excuses excellence. Each one of their bright professionals offers a Accounting great mix: part independent thinker, part team player. CMI’s enduring Kristie A. Acors dedication and sharp expertise combine to conquer any obstacles that Jennifer N. Parham threatens the supply chain. Shipdesk Clerk In the decades since CMI began, the world has undergone startling Lynne H. Stonum change. In every industry worldwide, technology has upped the bar, Membership Desk/Editor dictating a demanding pace. CMI has made a commitment to continue Susan N. Wisniewski setting the standard for their industry with streamlined operation, groundbreaking tracking software and a near reverence for enhanced communication. CMI’s creative leadership has resulted in employees who are MARITIME BULLETIN is published empowered and effective. And that, of course, translates to customer 12 times a year by service that’s second to none. CMI looks forward to the opportunity to Virginia Maritime Association. Subscriptions are available through prove it. membership in the Association. For more information about CMI contact: Membership rate is $200 annually. Brooke Deems Edward O’Callaghan 757-449-0798 757-450-8484 [email protected] [email protected] www.cmiamerica.com; www.cmimexico.com IN THIS ISSUE Recipient of Presidential “E” and “E Star” Awards for Excellence in 1. Cover Page 5. News Briefs & Announcement Export Service 2. Sponsor Highlight 6. VMA Highlights Recipient of ASAE Communication 3. Maritime News 7. Membership News Excellence & Honorable Mention Awards 4. Port Statistics 8. Club Contacts/Upcoming Events 2 Maritime News

In Memoriam for Virginia’s Vision for Tommy Strammer International Success We are saddened to report that one of our member companies lost a strong and vibrant leader. Tommy Stramer, President of Zim America Integrated Shipping Services, October 3 - 4, 2006 Ltd. (ZAISCO), Hotel Roanoke & Conference Center passed away on Roanoke, Virginia July 29. Tommy Stramer speaking at the International Trade Mr. Stramer Attend the Virginia Conference on World Symposium began his career at Trade to hear how Virginia is positioning itself Zim, Israel in 1964. for the future of international trade. The During his fast track career, he held various conference will continue its successful Trade high ranking positions within the firm and in Certificate Program. 1997 became Vice President of Shipping, To view the conference agenda and register advancing to President of ZAISCO in 2004. online, please visit www.vacwt.org or call He was highly respected in the industry. 804-237-1452 for more information. For hotel reservation contact the Hotel Roanoke directly at 540-985-5900. Special conference rates will ODU Preparing Port only be available through September 5, 2006. Economic Impact Study Old Dominion University (ODU) is Craney Island Study preparing a port economic impact study for the Virginia Port Authority (VPA). Advances Forward Economists Gil Yachum and Vinod Agarwal, professors at ODU, last analyzed the Another step toward the development of economic impact of the port in 1997 utilizing a new deep water marine terminal on an data from 1995. eastward expansion of Craney Island was Over the past several years distribution obtained on July 19, 2006 when the U.S. centers have established themselves in close Senate approved the project. Language proximity of the port. The VPA decided now authorizing the project is part of the Senate’s was a good time to update the economic Water Resources Development Act bill. study to reflect the impact of these Craney Island, when approved, will distribution centers and the growth of the become the fourth marine cargo terminal Port since 1997. for the Virginia Port Authority, giving this The report is anticipated to be published port capacity for growth not found anywhere in the fall of 2007. else on the East Coast.

3 Vessels by Jul-06 YTD 06 Jul-05 YTD 05 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 00000000 Jul-2006 7 Month 2006 Jul-2005 7 Month 2005 FOREIGN 11 19 91 101 9 13 98 102 Total Hampton Roads 1,489,771 12,374,479 1,609,734 15,376,365 TOTAL 11 19 91 101 9 13 98 102 NS 688,458 6,197,770 764,810 7,705,746 Pier IX 402,784 3,724,201 461,351 4,060,826 COAL DTA 398,529 2,452,508 383,573 3,609,793 AMERICAN 01130066 FOREIGN 19 13 131 120 16 18 157 152 Export Cargo - H. Rds. 959,822 8,754,420 1,029,707 11,136,408 TOTAL 19 14 132 123 16 18 163 158 NS 628,990 5,672,107 631,400 6,943,179 Pier IX 77,873 1,678,758 205,618 2,114,704 COMBO DTA 252,959 1,403,555 192,689 2,078,525 AMERICAN 00000000 FOREIGN 7 7 40 40 5 6 33 35 Coastwise & Other - H.R 529,950 3,620,058 580,026 4,239,957 TOTAL 7 7 40 40 5 6 33 35 NS 59,468 525,663 133,410 762,567 Pier IX 324,911 2,045,443 255,733 1,946,122 CONTAINER DTA 145,571 1,048,953 190,883 1,531,268 AMERICAN 15 14 118 110 18 18 115 111 Source: Hampton Roads Coal Piers FOREIGN 151 154 1045 1049 136 136 870 870

TOTAL 166 168 1163 1159 154 154 985 981

Port of Hampton Roads TEU's GENERAL (Twenty Foot Equivalent Units) AMERICAN 01120067 Jun-2006 6 month 2006 Jun-2005 6 month 2005 FOREIGN 8 8 66 60 15 15 76 71 Hampton Roads 167,510 1,010,401 156,959 947,291 TOTAL 8 9 67 62 15 15 82 78

Source: Virginia Port Authority OTHER AMERICAN 005703910

FOREIGN 0 0 26 30 1 3 36 35 Customs Receipts - Virginia Customs District TOTAL 0 0 31 37 1 6 45 45 Jun-2006 6 month 2006 Jun-2005 6 month 2005 Hampton Roads $53,535,574 308,245,788 50,507,490 $283,406,656 RORO Other VA $3,833,079 26,301,180 4,178,572 $32,047,008 AMERICAN 00430032 FOREIGN 7 8 53 55 8 9 65 64 Total $57,368,653 $334,546,968 $54,686,062 $315,453,664 TOTAL 7 8 57 58 8 9 68 66 Source: U.S. Customs and Border Protection

TANKER

AMERICAN 11661122 Passenger Cruises FOREIGN 12 8 89 85 17 16 90 82 Jul-2006 7 Month 2006 Jul-2005 7 Month 2005 TOTAL 13 9 95 91 18 17 92 84

Number of Vessels 13 1 32 Number of Passengers 33,622 1,354 72,215 AMERICAN 16 17 135 131 19 22 141 138 Source: Nauticus FOREIGN 215 217 1541 1540 207 216 1425 1411 TOTAL 231 234 1676 1671 226 238 1566 1549 News Briefs & Announcements

Reducing Injury to Right Whales Reduces Ship Speeds The National Marine Fisheries Services (NMFS) says between one and two North Atlantic Righ Whales are killed each year by ships. In an effort to protect the endangered right whale species from ship strike fatalities, the NMFS, in their Notice of Proposed Rule Making (NPRM, 7136299), proposes to reduce ship speeds for ships within 30 miles of entering the mouth of the Chesapeake Bay between November and April. Similar regulations are proposed for every port on the East Coast. The NMFS indicated the economic impact of their proposed regulations would cost the the Hampton Roads maritime industry $19.9 million due to the cargo delays caused by decreasing the speed of vessels to 10 knots. Typically cargo ships travel at 18-22 knots. Reducing the speed by almost 1/2 will increase cargo travel time approximately 100 minutes per ship. This could equate to shippers seeking other venues to import their cargo. Companies that rely on the Port will feel the impact. Saving the right whales is an issue that must be addressed, but other methods should be explored before implementing a strategy that so negatively impacts the industry. NMFS has taken two years to develop a Draft Environmental Impact Statement (DEIS), 71 FR 38540 which includes extensive rules referencing many volumes of complicated data in this 600 page report. NMFS is now rushing to implement these regulations and giving the public little time to understand the implications and submit comments. Virginia Maritime Association (VMA), as the “voice of the Port”, will submit comments and we encourage our members to express concerns during the comment period which is open through October 5, 2006. Comments should be directed to: Chief, Marine Mammal Conservation Division Attention Right Whale Ship Strike Strategy Office of Protected Resources, NMFS 1315 East-West Hwy Silver Springs, MD 20910 or e-mail: [email protected]. VPA Paving Path to Enhance Port Security The Virginia Port Authority is once again stepping out as a leader to enhance Port security. At the end of July, the VPA announced they joined with GE’s Security business to install the Secure Cargo Corridors network at Norfolk International Terminals and Portsmouth Marine Terminal. This network will communicate with Container Security Devises (CSDs). CSD’s are devices that mount inside cargo containers designed to detect, record and report unathorized intrusions of a container. GE’s advanced, tamper-resistant CSD features point-to-point tracking to capture data that the government can use for container profiling. Virginia Port Authority is the first U.S. port in a worldwide Secure Cargo Corridors network. J. Robert Bray, VPA’s Executive Director stated to the American Journal of Transportation that “this is important technology that will help improve the security of containers while providing more complete information about the containers.” He believes many of the companies and government authorities who work closely with the VPA will benefit greatly from this new capability. New Administrator at MARAD President Bush nominated Sean Connaughton to be the Maritime Administrator on June 27, 2006 and he was confirmed by the Congress on August 3, 2006. Connaughton is a 1983 graduate of the United Sates Merchant Marine Academy with a Bachelors of Science degree, a Third Mates Merchant Marine license, and a commission in the Coast Guard (USCG). He served on active duty in the USCG from 1983 through 1986. He earned his law degree in 1992 from School of Law. During his law career, Connaughton specialized in maritime and international law. He is a member of the Virginia Bar Association, the District of Columbia Bar Association, the Maritime Law Association and the Veterans Pro Bono Consortium. Connaughton published many articles on marine transportation and environmental issues and spoke at numerous conferences and seminars. 5 VMA Highlights

Your Association in Action

Moving forward as the Virginia Maritime Association, your trade association’s name has changed but our mission remains the same - to promote, protect, and encourage waterborne commerce through the Port of Hampton Roads. Most of VMA’s committees took a break in July, but the Association remained busy. VMA submitted comprehensive comment letters to both the Transportation Security Administration (TSA) and the U.S. Coast Guard expressing concerns about proposals for the implementation of the Transportation Workers Identification Credential (TWIC). While VMA supports the implementation of a TWIC, we are concerned that a rush to implement the program as proposed, with many recognized flaws, will create significant problems for marine cargo terminals and those that need access to those facilities. VMA’s comment letters included concerns drawn from every aspect of the maritime industry and recommendations for improving the program. The Association also addressed the TWIC issue with the Port’s congressional delegation and officials in the administration. VMA conducted several port briefing meetings for General Assembly members. These meetings offer an opportunity to let legislators know where Virginia’s maritime industry is headed, discuss the issues and opportunities, and seek their support. In July, VMA staff represented its membership and the South Atlantic Marine Transportation System Organization (SAMTSO) at a semi-annual meeting held in Norfolk of the Marine Transportation System of National Advisory Council (MTSNAC). SAMTSO speaks with a regional voice to promote the Marine Transportation System (MTS) needs that are common to the states of Virginia, North Carolina, South Carolina, Georgia, and Florida. The MTSNAC is a chartered, non-federal body, whose purpose is to advise the Secretary of Transportation on MTS issues. Its membership is comprised of leaders from over 30 commercial transportation firms, trade associations, state and local public entities, recreational boating interests, academics, and environmental groups. VMA and SAMTSO hosted terminal and port tours and opportunities for MTSNAC members to meet with some of the leaders in Virginia’s maritime industry.

Maritime Bulletin Offers Sponsorship Opportunities

The $1,000 contribution for sponsorship allows To Sponsor the Monthly Bulletin please fax the your organization to be: following information to 622-6302

) Named prominately on the cover of the Bulletin Sponsor Contact: ) Featured in a half page article Company: ) Recognized as a supporter of the Port Phone Number: 6 Membership News

New Members Atlantic Energy, Inc./UGI Energy MacGREGOR (USA), Inc. Services, Inc. Shipbuilding, Ship Repair & Maintenance, Propane Terminal Drydocks 2901 S. Military Highway 1220 E. Fleetway Drive Chesapeake, VA 23323 Chesapeake, VA 23323 (757) 485-1018 FAX; (757) 487-5084 (757) 558-4580 FAX; (757) 455-0849 Mr. William E. Noeth Mr. Jack Finnegan, President Terminal Manager [email protected] [email protected] Recommended by: Art Moye, Jr. Recommended by: David White Cornerstone Systems Opens New Warehouse

Cornerstone Systems, a transportation and logistics firm based out of Memphis, Tennessee, opened a warehouse in Chesapeake. The 50,000 square foot facility opened on August 1st and will be used for cross docking both imported and exported cargo. Cornerstone will also provide over the road transportation and rail transportation needs. Cornerstone has been a member of the VMA since January 2005.

Cornerstone’s newest warehouse Chesapeake, VA

Colonna’s Shipyard Awarded Contract to Repair NS Savannah Colonna’s Shipyard was awarded a $995,000 contract from the Maritime Administration to work on the N.S. Savannah. The N.S. Savannah was the world’s first nuclear-powered cargo/passenger ship ever built. President Eisenhower intended to use the N.S. Savannah as part of his “Atoms for Peace” initiative, proving to the world that the United States was committed to the proposition of using atomic power for peace and to show that a nuclear reactor could be used to power a commercial ship. She was decommissioned in 1971, where she became a floating museum in Charleston, S.C. until 1994. From there she joined the James River Reserve Fleet, better known in the area as the Ghost Fleet. N.S. Savannah will be berthed at Colonna’s for the two months it will take to repair her exterior structure, lighting systems, interior water damage and to reestablish the dehumidification system. It is quite possible another local shipyard could receive a contract to dismantle the nuclear reactor. With its unique design and historical value, the NS Savannah could possibly be a museum once again. 7 PRESORTED STANDARD U.S. POSTAGE PAID NORFOLK, VA PERMIT NO.1930

236 East Plume Street Norfolk, Virginia 23510

P.O. Box 3487 Norfolk, Virginia 23514 (757) 622-2639; FAX 622-6302

web site: www.portofhamptonroads.com email: [email protected] Club Contacts Upcoming Club Events

Customs Brokers & Int’l Freight Forwarders Assn. Sept 7 Propeller Club - Port of Norfolk Contact: Katie Carney, 446-1542 John Reinhart, President & CEO, Maersk Line, Ltd. Container Shipping Day & Convention Preview Hampton Roads Coal Association 11:30 a.m. The Harbor Club, Norfolk Contact: Michael Carmon, 873-0165 Sept 13 Hampton Roads Coal Association Business Meeting 6:15 p.m. The Harbor Club, Norfolk Hampton Roads Foreign Commerce Club Sept 20 Hampton Roads Foreign Commerce Club website: www.hrfcc.org Ed Merkle, Director of Security, VPA Contact: Susan Long, 857-3351 11:30 a.m. Norfolk Waterside Marriott Sept 20 Hampton Roads Traffic Club Hampton Roads Traffic Club 5:30 p.m. Holiday Inn - Greenbrier Contact: Peter Simmons, 466-8899 Sept 27 Tidewater Motor Truck Association 6:00 p.m. Holiday Inn Express, Norfolk Propeller Club - Port of Norfolk Sept 28 Customs Brokers & Int’l Freight Forwarders Assn. Contact: Bill Daniels, 467-9217 12:00 Radisson Hotel, Norfolk Oct 3 - Virginia Chamber of Commerce Oct 4 Conference on World Trade Society of Maritime Industries Hotel Roanoke & Conference Center, Roanoke, VA Contact: Dave Whooley, 391-9249 Oct 10 Virginia Maritime Association Maritime Issues Council Golf Outing Tidewater Motor Truck Association 9:00 Shotgun Start Cedar Point Golf Course Contact: Shirley Roebuck, 398-0679 Oct 10 Virginia Maritime Association Chesapeake Bay Feast The Women’s Transportation 4:00 p.m. Norfolk Yacht & Country Club Club of Hampton Roads Oct 10 - Propeller Club - Port of Norfolk Contact: Anita Bonet, 440-7215 Oct 13 International Conference & Convention 7:30 a.m. Norfolk Waterside Marriott