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& International Trade Guide 2017 HAMPTON ROADS MARITIME & International Trade Guide INSIDE: A caffeine buzz in Suffolk The future of offshore wind Newport News Shipbuilding to hire 3,000 more workers A new classPort prepares for bigger ships and more cargo Permit No. 516 No. Permit Richmond, VA Richmond, PAID US Postage US PRSRT STD PRSRT Change Service Requested Service Change 23219 VA Richmond, 100, Suite Street, Main E. 1207 Get your message to the people who matter most! 2017 Hampton Roads Statistical Digest Place your advertising message in our annual Hampton Roads Statistical Digest. The Digest has a long history as a valuable resource having been published by Virginia Business for over 35 years! Contact: Susan Horton [email protected] 757.625.4233 Get your message to the people who matter WAREHOUSING, TRANSPORTATION, LOGISTICS & FOREIGN TRADE ZONE most! Givens offers a Weekly Summary Entry Program that saves our Foreign Trade Zone 2017 Hampton Roads customers thousands of dollars per year in Statistical Digest entry and merchandise processing fees. Under Weekly Summary Entry procedures, the zone user files only one Customs Entry per week, rather than filing one Customs Entry per shipment. Customs no longer has to process an entry for each and every shipment being imported into the zone, and the Givens Foreign Trade Place your advertising message in Zone customer no longer has to pay for the our annual Hampton Roads processing of each and every entry. Statistical Digest. The Digest has a long history as a valuable We welcome the opportunity to show you resource having been published by Virginia Business for over how this program can also be a source of 35 years! significant new savings for you. Call us Contact: today to start saving time and money. Susan Horton [email protected] 757.625.4233 1720 S. Military Highway, Chesapeake, VA • (757) 233-4353 GIVENS.COM Givens-VB Maritime-Guide-A.indd 1 3/3/17 10:17 AM A note from the publisher Honor the past. 2017 HAMPTON ROADS Virginia’s port continues to drive economic growth What an exciting time for the Port of Virginia and the maritime community. After two years of negotiations, the port signed a 50-year lease of the tech- Experience the present. MARITIME nologically advanced Virginia International Gateway. And now work has begun to & International Trade Guide almost double the capacity of the state-of-the-art terminal. The project coincides with plans to expand the port’s biggest terminal – Norfolk International Terminals Shape the future. A PUBLICATION OF VIRGINIA BUSINESS MAGAZINE – by 46 percent. There are a lot of unknowns in international shipping right now: the effects of ocean carrier alliances and larger ships — and a president who supports increas- NORFOLK - PROUD NAVY TOWN 100 YEARS ing the U.S. Naval fleet, but who may also change the country’s policies toward www.VirginiaBusiness.com international trade. But, the Port of Virginia and state government are all working together to President & Publisher Bernard A. Niemeier ensure that Virginia’s leading position on the East Coast continues to grow. Editor Robert C. Powell III We invite you to use the 2017 Hampton Roads Maritime and International Managing Editor Paula C. Squires Trade Guide to learn more about Virginia’s maritime industries. It is a valuable Senior Editor Jessica Sabbath resource on major companies providing services to the port community. Special Projects Editor Veronica Garabelli Intern Greg Kremer This guide includes information from the Port of Virginia, the Virginia Maritime Contributing Writers Richard Foster Association and the Hampton Roads Economic Development Alliance. We thank Bill Smith them for their assistance. Joan Tupponce — Bernie Niemeier Art Director Adrienne R. Watson Editors’ note Contributing Photographer Mark Rhodes Production Manager Kevin L. Dick Are big changes on the horizon? Circulation Manager Karen Chenault Accounting Manager Stephen P. Fishel Changes in political winds can create a lot of uncertainty. CENTRAL VIRGINIA But in recent history, international trade has never been more in the crosshairs 1207 East Main Street, Suite 100, Richmond, VA 23219 of a president. (804) 225-9262 Fax: (804) 225-0028 Throughout his campaign, President Donald J. Trump derided trade deficits Vice President of Advertising Hunter Bendall and free-trade deals such as NAFTA and the Trans-Pacific Partnership, proposing higher tariffs on goods entering the U.S. Trump’s policies leave major questions for Account Manager Molly Thompson the international shipping industry and American businesses. What changes will HAMPTON ROADS be made to NAFTA? Could trade wars begin? Could exporters be hurt? 4211 Monarch Way, Suite 104, Norfolk, VA 23508 (757) 625-4233 Fax: (757) 627-1709 This annual guide can’t begin to cover all the “what ifs,” so we’re not focusing Sales Manager Susan Horton on all the angles of Trump’s long-term effects, if any, on international trade. What we know is that on any given day, millions of colorful containers full of ROANOKE goods are traversing the globe on massive ships. We know that through techno- 210 S. Jefferson Street, Roanoke, VA 24011-1702 logical change, the world is likely to get smaller, and trade seems destined for Editorial: (540) 520-2399 Advertising: (540) 597-2499 continued growth. Sales Associate Lynn Williams And we know the Port of Virginia is preparing for the anticipated growth with VIRGINIA BUSINESS PUBLICATIONS LLC almost $700 million in capacity improvements. So in this guide, we’ve focused on those projects and the latest investments affecting this dynamic industry. A portfolio company of Virginia Capital Partners LLC — Jessica Sabbath and Veronica Garabelli Frederick L. Russell Jr., chairman CONTENTS News and features References 4 Cover story 31 Unlocking congestion 22 Export resources by Jessica Sabbath by Jessica Sabbath 27 Commentary News roundup 32 New double-stacked train 10 service heading to Midwest 16 Huntington Ingalls Industries by Jessica Sabbath 28 Port stats sees higher profits in 2016 33 Newport News/Williamsburg 29 2016 Trade overview by Veronica Garabelli awaits audit results by Veronica Garabelli 20 Caffeine buzz by Joan Tupponce 33 Air cargo/passengers 34 Foreign-trade zone 23 Boosting the workforce expands into North 34 Foreign Trade Zone #20 by Greg Kremer Carolina 35 Maritime law firms 25 A change in demurrage and 36 Global companies dock detention fees? Staff reports in Hampton Roads 36 International firms We Salute our Maritime History and Industries which Make Norfolk Proud and Strong. Please join us in our year-long celebration. The calendar of events may be found at Cover photo courtesy Port of Virginia 2 A publication of Virginia Business magazine norfolk.gov/navy100 Honor the past. Experience the present. Shape the future. NORFOLK - PROUD NAVY TOWN 100 YEARS We Salute our Maritime History and Industries which Make Norfolk Proud and Strong. Please join us in our year-long celebration. The calendar of events may be found at norfolk.gov/navy100 COVER STORY: A new class Port prepares for more cargo and bigger ships with major capacity improvements by Jessica Sabbath hey keep getting bigger. On May 8, the Cosco Development, a ship with 30 percent more cargo capacity than the largest ships visiting the Port of Virginia today, will call on T Norfolk for the first time. 4 A publication of Virginia Business magazine Photo by Stefan Hofecker/Alamy PhotoStock Photocredit In May, the Cosco Development, a 13,092-TEU ship, will call on the Port of Virginia. It is the largest ship to ever visit the East Coast. The ship will travel from Shanghai through the “What this tells me is we’re seeing what we’ve Panama Canal, visit the Port of Virginia and then been saying for a number of years about the future Savannah and Charleston before heading back to of the port, that it would handle the largest ships that Hong Kong. will be coming to the East Coast as the result of the While the Cosco Development calls on the Port of widening of the Panama Canal,” says John Milliken, Virginia, about 4,000 containers will be moved on or chairman of the Virginia Port Authority. off the ship, more than double the number handled That means the port likely will see ships of the during an average ship call at the port’s terminals. Cosco Development’s size on a regular basis. 2017 Hampton Roads MARITIME & INTERNATIONAL TRADE Guide 5 Cover Story The timing is important. In 2016, the port handled a record level of cargo, 2.65 million TEUs at its terminals, up 4 percent from the previous year. That percentage represented the second-highest growth rate among U.S. ports last year. To take some pressure off its terminals, especially as con- struction begins, the Virginia Port Authority in March voted to dredge the channel at Ports- mouth Marine Terminal to expand capacity at that facility. The port reopened the older terminal to The NIT North Gate container traffic in 2015 to relieve expansion will some of the congestion at other improve motor carrier flow into and terminals. out of the port’s largest As the port prepares for container terminal. growth, a number of projects could have a major impact on its future. Below are the most critical ongo- ing projects. For more information on road transportation projects, see Page 31, and to see rail expan- sion plans, see Page 32. After the Panama Canal force a trend of larger ships mak- Up first: Norfolk International opened last spring, the Port of ing fewer ship calls, says Milliken. Terminals North Gate Complex Virginia saw an immediate jump He notes the port already has seen The completion of a new gate in the size of the ships visiting its fewer ships while handling more complex this spring should help terminals.
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