Volume 80, No.7 The Voice of Port Industries July 2016

FIRST NEO-PANAMAX VESSEL CALLS ON PORT OF The Port of Virginia was privileged to welcome the Gonzalez-Revilla remarked, “Today, largest containership to transit the east coast. The MOL we are witnessing the results that the BENEFACTOR, a 10,000 TEU Neo-Panamax containership expanded canal is going to have on world was the fi rst of her kind to call on the Port of Virginia after commerce and especially the benefi ts it also transiting through the newly expanded Panama Canal. will bring to the East Coast ports.” He stated that 13,000 vessels transit the The mammoth 1105’ MOL BENEFACTOR came to the canal every year serving more than 144 Norfolk International Terminal’s (NIT) north berth to unload maritime routes and connecting 166 and load cargo on July 10th. Captain Bill Cofer, President countries. He also noted that 67 percent of the Virginia Pilot Association, noted that the ship’s TEU Panamanian Ambassador of the cargo that transits the canal comes Emanuel Gonzalez-Revilla capacity is listed as 10,100, almost 6000 more TEUs than from or is destined for the United States. previous ships transiting the Panama Canal. This larger That number could increase to approximately 80 percent capacity is due to the increased width of these vessels, from once the canal is fully matured. 106 feet to 158 feet. The BENEFACTOR’s gross tonnage is 113,000 and this class of ship displaces 152,000 metric tons Captain Cofer, also a Virginia Maritime Association Board of water. Member and Virginia Port Authority Commissioner, had the great pleasure of boarding the BENEFACTOR upon its arrival. Cofer said the Captain of the ship pointed out the diffi cult challenges of navigating this vessel in such confi ned waters.

The Virginia State Pilots have been gearing up for these ships for several years and have completed advanced simulation training of this class of vessel to determine guidelines for safe transits. Captain Cofer said the ship handled as anticipated

John Reinhart (VPA CEO) and John Milliken (VPA Commissioner) present an based on simulation and that special considerations in safely Inaugural Call plaque to Ted Holt (MOL) moving these ships will be implemented.

Currently, the ship holds the title of the largest vessel to Most importantly, “The port, led by the visionary and strong ever berth at Virginia’s NIT, and while that title will be leadership of the Virginia Maritime Association and the bestowed to other vessels in the coming months, the MOL Virginia Port Authority, have been working tirelessly to BENEFACTOR will always hold the title of the fi rst Neo- make Hampton Roads the most prepared port on the east Panamax Vessel to come to Virginia. coast to accept these ultra large container vessels,” said Cofer. “Virginia is in the best shape for hosting these vessels During a ceremony at NIT Tower celebrating her arrival, but will still need to improve our channels, especially in Panama’s ambassador to the United States, Emanuel width.”

Photo courtesy of The Manning Studio

1 VIRGINIA MARITIME ASSOCIATION MULTIPLE EMPLOYER 401(K) PLAN Defi ned Contribution plans (DC plans), such as 401(k) plans, are the most popular employer-sponsored retirement plans in the United States. Currently, OFFICERS approximately 80% of full-time workers have access to employer-sponsored 401(k) Chairman of the Board plans with over 80% of those workers choosing to participate. Shirley G. Roebuck In recent years, the Department of Labor (DOL) has focused their attention on President these DC retirement plans with regards to how the plan is operated, discriminatory Raymond A. Newlon plan provisions, fi duciary responsibilities and all fees associated with the plan. Vice Presidents High plan fees and undisclosed fees are a signifi cant concern and the DOL’s Joseph A. Dorto defi nition of “reasonable” plan fees does not provide clear guidance. What fees Michael W. Coleman are considered “reasonable” can depend on the plan’s provisions, investment Scott Wheeler alternatives and the services that are provided to the plan.

Executive Vice President Deloitte Consulting performed a study that outlines the average all-in fees & Secretary Arthur W. Moye, Jr. for 401(k) plans with varying totals of assets under management (AUM) and Treasurer Judy M. Barrett demonstrates that plans with greater AUM will generally have lower fees. The illustration shows that plans with $1M to $10M in AUM will have an average Assistant Treasurer Keith Helton all-in fee of 1.27% as compared to the plans with $10M to $100M having average all-in fees of .82%. Another study determined that plan participants pick up STAFF approximately 87% of retirement plan costs. For the majority of small to medium Vice President David C. White size businesses having plans with AUM in the $1M - $50M range, the fees paid by participants is not insignifi cant. Even a 15% variance in plan fees can make Controller Sam Davis a difference in the total amount of funds accumulated by the participant for their Communications/ “Retirement Readiness,” thereby making it the fi duciary duty of the plan sponsor Membership Director Ashley McLeod to be sensitive to the fees and services associated with their plan.

Executive Assistant Janice S. Klasek As a VMA member fi rm, your business is eligible to participate in the VMA’s Events Coordinator/ Multiple Employer 401(k) Plan with a signifi cant reduction in plan cost for Accounting Assistant Jennifer N. Parham most small to mid-size 401(k) plans. After performing due diligence on various options, the VMA Board has determined that AXA’s Retirement Gateway 401(K) Shipdesk Clerk Lynne H. Stonum plan provides signifi cantly lower fees, saving the average plan and participants Membership/Publication thousands of dollars annually, while enhancing investment options and providing Coordinator & Editor Susan N. Wisniewski additional fi duciary services to plan sponsors and trustees.

VMA member fi rms desiring The MARITIME BULLETIN is provided through to save money and enhance membership. Those interested in advertising, their 401(k) benefi ts should please email: [email protected]. contact our representative, Jim Blassingham, at Follow us on: 757-461-2210 or e-mail Jim at jim.blassingham@ facebook.com/VAmaritime capitalfinancialgrp.com for a plan benchmark twitter.com/VAmaritime comparison to your current plan. linkedin.com/company/ virginia-maritime-association

2 MARITIME NEWS USCG SECTOR HAMPTON ROADS CHANGES HANDS AT THE HELM Rear Adm. Meredith L. Austin, Commander roles will also include Captain of the Port, of the Coast Guard 5th District, presided Offi cer in Charge of Marine Inspection, over the June 22, 2016 Change of Command Federal Maritime Security Coordinator, Ceremony, transferring all command Search and Rescue Mission Coordinator, responsibilities for the U.S. Coast Guard and Federal On-Scene Coordinator. Sector Hampton Roads from Captain Christopher Keane to Captain Richard J. “Today I am humbled by the opportunity to Wester. begin serving as Sector Commander,” said Wester. “Keeping the port safe and secure Captain Wester has been serving as Deputy is an immense responsibility, and one that I Commander, Sector Hampton Roads, since certainly won’t be doing alone.” June 2014, after serving two years as Press Assistant to the 24th Commandant of the Captain Wester holds an upper-level United States Coast Guard, Admiral Robert unlimited merchant mariner license and J. Papp. He earned a National Security and has served on fi ve cutters, ESCAPE , ABLE Strategic Studies Master of Arts degree from MANNER, ABLE VIGIL, NEAH BAY, and the Naval War College’s College of Naval WALNUT. Warfare, a Master of Mass Communication from the University of Georgia and holds a Captain Keane was the 2015 recipient Bachelor of Science degree in Marine Science Captain Richard J. Wester of Virginia Maritime Association’s Port from the U.S. Coast Guard Academy. Champion Award, we wish him “fair winds and following seas.” The Association looks forward As commanding offi cer of Sector Hampton Roads, Wester will to continuing our partnership with Sector Hampton Roads oversee operations in navigable waters from the Virginia/ under the leadership of Captain Wester. Maryland border to the Virginia/North Carolina border. His

GOVERNOR SIGNS VIRGINIA INTERNATIONAL TRADE CORPORATION INTO LAW

Governor Terry McAuliffe signed House Bill 858, sponsored by Del. R. Steven Landes, R-Weyers Cave, at the World Art Group in Richmond on June 22nd. This legislation establishes the Virginia International Trade Corporation in the executive branch of the state government to promote international trade in the Commonwealth.

“I’m excited to see Governor McAuliffe sign this signifi cant economic development legislation today. Creation of the Virginia International Trade Corporation will generate opportunities for small and mid-sized businesses to expand to new markets, increase international sales, and most importantly, create new jobs here in the Commonwealth,” said Landes. “The Corporation will promote international trade in the Commonwealth by coordinating private and public efforts to stimulate the international trade segment of the Commonwealth’s economy, and promote the marketing of products and services, thus ensuring Virginia’s status as one of the best states for business.”

“I want to thank Delegate Landes and the General Assembly, as well as the business community and advocates who worked so hard to make this signifi cant legislation a reality. I look forward to building on the progress we have made establishing Virginia as a global leader in international trade,” said Governor McAuliffe.

HB 858 passed with bipartisan support of the General Assembly and extensive support from Virginia’s business community. The Virginia Chamber of Commerce, the Virginia Manufacturers Association, and Lonnie Lemco (World Art Group), Art Moye Jr. (Virginia Maritime the Virginia Maritime Association, representing thousands of Virginia Assn.), David Anderson (Virginia Manufacturing Assn.), Delegate R. businesses, supported the creation of the Virginia International Trade Steven Landes, Barry Duval (VA Chamber of Commerce) and Secretary of Commerce , surround Governor McAuliffe as he signs HB858, Corporation. establishing the Virginia International Trade Corporation. 3 Jun-16 YTD-16 Jun-15 YTD-15 00000000 6 6004500910 59 57 1400000000 4 13 78 4 75 22 22 410761022 7 4 8 26 41 26 39 611780011 9 12444712145261 7 42 42 00000000 33440077 00110023 22 18 104 106 16 17 92 97 30 29 139 140 26 24 205 199 14 16 55 54 6 7 42 44 24 19 123 126 17 17 106 113 204 211 1168 1168 200 199 1213 1216 131 133 804 805 132 130 761 762 Arrive Sail Arrive Sail Arrive Sail Arrive Sail BULK COAL RORO OA66 595714137875 TOTAL6 42222442626 TOTAL 30 29TOTAL4 143 84845774444 145 26 24 214 209 TOTAL8 7 4447 TOTAL141656556 TOTAL 228 230 1291 1294 217 216 1319 1329 TOTAL 153 151 908 911 148 147 853 859 TOTAL 10 13 51 55 12 14 53 62 TOTAL33440077 COMBO TANKER GENERAL CONTAINER PASSENGER FOREIGN Vessels by Type AMERICAN FOREIGN AMERICAN AMERICAN AMERICAN FOREIGN AMERICAN FOREIGN AMERICAN FOREIGN AMERICAN FOREIGN FOREIGN AMERICAN FOREIGN AMERICAN FOREIGN 0 0 7 TATISTICS S 404,538 404,538 6,185,709 3,858,591 5,919,645 6,185,709 3,858,591 5,515,107 1,040,199 15,963,945 15,559,408 407,586,645 754,851,928 347,265,283 5 Month 2015 5 Month 2015 6 month 2015 6 month 2015 ORT P 1,955,169 78,403,044 70,551,232 00 0 00 0 34 0 Passenger Cruises 23,506 269,59323,506 269,593 15,632 15,632 (in net tons of 2,000 lbs.) 882,797647,255 4,928,108 4,256,901882,797 756,235 623,749 4,928,108 686,328 3,987,307 756,235 670,696 219,398 1,061,409 230,511 635,861 1,957,324635,861 528,239 1,957,324 528,239 Jun-2016 month 2016 6 Jun-2015 Jun-2016 month 2016 6 Jun-2015 2,165,913 11,142,333 1,970,801 2,142,407 10,872,740 4,226,195 17,332,425 May-2016 5 month 2016 May-2015 May-2016 5 month 2016 May-2015 (Twenty Foot Equivalent Units) Port of Hampton Roads TEU's 62,924,704 338,720,140 Customs Receipts - Virginia District Distribution of Coal Dumpings at Hampton Roads

Total 67,150,899 356,052,565 148,954,276 Total Hampton Roads NS DTA Export Cargo - H.R. NS DTA Coastwise & Other - H.R NS DTA Hampton Roads Hampton Roads Other VA Number of Vessels Pier IX Pier IX Pier IX Source: Hampton Roads Coal Piers Source: Virginia Port Authority Source: U.S. Customs and Border Protection Source: Nauticus 4 NEWS BRIEFS & ANNOUNCEMENTS GOV. MCAULIFFE SELECTS SECRETARY APPOINTMENTS: COMMERCE & TRADE AND AGRICULTURE & FORESTRY Governor Terry McAuliffe has selected Secretary of trade understanding, and administrative expertise,” stated Agriculture and Forestry, , to succeed McAuliffe, “I know that Secretary Haymore will hit the ground Maurice Jones as the Secretary of Commerce and Trade and running, creating jobs, and new economic opportunities for Dr. Basil Gooden, State Director of the U.S. Department of families in every corner of our Commonwealth.” Agriculture, Rural Development for the Commonwealth of Virginia, to serve as the next Secretary of Agriculture Dr. Gooden was appointed by President Obama as State and Forestry. Both men will fulfi ll their new positions in Director of the U.S. Department of Agriculture, Rural September 2016. Development for the Commonwealth of Virginia in May 2014. Dr. Gooden’s initiative included strategic management, When VMA asked technology advancement, and community development for Secretary Haymore economically distressed communities. “I am excited to to comment on his bring a leader new appointment he, with Dr. Gooden’s said, “The next few experience and months will be fun, vision into my exciting and fi lled with cabinet as our new challenges and next Secretary opportunities. For the of Agriculture past ten years, I have and Forestry. worked with Governors Dr. Gooden has Kaine, McDonnell and been involved McAuliffe to integrate in Virginia’s fully agriculture agriculture and forestry into industry his Virginia’s overall whole life, as he economic development and jobs creation platform and to grew up raising enhance further the standing of these two industries in the Black Angus beef Commonwealth, across the country, and around the world. on his family’s In my new role as Secretary of Commerce and Trade I will cattle farm in take these experiences and continue working to expand Buckingham Virginia’s international trade and export portfolio, with the County. Agriculture and Forestry are two of Virginia’s help of our maritime industry. Governor McAuliffe has asked largest and most important industries, and Dr. Gooden is me to stay focused on this key initiative. I’m looking forward ready to build on our administration’s success in growing to engaging further with the maritime community and many them under the leadership of Secretary Haymore,” state others as we work to build the new Virginia economy.” McAuliffe

Haymore began serving in the capacity of Secretary of Agriculture and Forestry in 2010 when he was appointed Haymore, a native of Pittsylvania County, received his by Governor Bob McDonnell. He was reappointed in 2014 Bachelor of Arts Degree in Political Science from the by Governor McAuliffe. During his tenure as Secretary, University of Richmond and his Masters of Business Haymore has worked closely with the Governor, General Administration Degree from Virginia Commonwealth Assembly and key stakeholders on a number of legislative University. Dr. Gooden, a native of Buckingham County, and budgetary initiatives to integrate fully agriculture received his Bachelor’s degree in Political Science from and forestry into Virginia’s overall economic development Virginia Tech, a Masters of Social Work from Syracuse and and job creation platform. “Todd brings the right he earned a Masters of Public Health and Ph.D. from the combination of economic development experience, global University of North Carolina at Chapel Hill.

CrossGlobe’s solutions-oriented approach gets cargo to market on time and on bud- get. We can provide drayage and warehousing for all customers at the Port of Virginia. THE THINGS WE DO www.crossglobegroup.com 5 ASSOCIATION IN ACTION Throughout June, the Association continued to actively engage elected leaders whose decisions can signifi cantly affect Association members and the success of the Port, as demonstrated by the overwhelming support by the General Assembly for a $350 million bond package that will increase capacity at Norfolk International Terminals by an additional 400,000 containers. In June, VMA met with many of our elected leaders individually and also attended the retreats of the Virginia General Assembly’s House Republican Caucus and the Joint Democratic Caucus. These opportunities to speak with, educate, and address questions from our elected leaders prove invaluable when they consider legislation that impacts the commercial maritime community.

VMA was honored to be invited by the U.S. Chamber of Commerce Foundation to provide an industry brief during its Hampton Roads Transition Summit on June 8-9 in Chesapeake. The event included a wide range of interactive panels and facilitated discussions focused on improving competitive employment for service members, veterans, and military spouses and closed with a hiring fair and career forum.

The Hampton Roads Navigational Summit was highlighted as part of a white paper presented to the World Dredging Congress (WODCON) during its triennial meeting in Miami. WODCON is the only global event dedicated exclusively to dredging and maritime construction, and provides a unique platform for researchers and practitioners from industry, academia, and governments to meet and discuss dredging. The white paper “Port Champions: Evolving Navigation Partnerships, Visions, and Charters” underscored the importance of the collaboration of VMA, U.S. Army Corps of Engineers, and Virginia Port Authority and the priority navigation projects in Virginia.

VMA was pleased to be invited by Senator to participate in his Virginia Energy Policy Forum on June 17, which featured comments from the Senator and Secretary of Energy, Ernest Moniz, about the future of our energy policy. The forum assembled energy and climate stakeholders in industry, academia, and local government, as well as interested citizens, to review major national and international regulatory provisions that will not only affect the Virginia economy but the way we diversify our energy moving forward.

In June, VMA represented commercial and private sector interests through its continuing participation on the Crude Oil Subcomittee of the Virginia Area Committee and also at the meeting of the Cyber Security Subcommittee of the U.S. Coast Guard’s Area Maritime Security Committee. The Crude Oil Subcommittee evaluates potential impacts to human health and the environment and critical infrastructure, and addresses readiness to respond to a discharge. The Cyber Security Subcommittee has a similar mission related to cyber threats in the maritime environment.

The VMA has been part of ongoing discussions about the prospects for Liquid Nitrogen Gas (LNG) as an export or fuel; a topic closely monitored by many in the maritime industry. The Association was pleased to participate in a June 28 discussion sponsored by Virginia Natural Gas about “Proving the Reliability and Safety of LNG” highlighted by a demonstration of safety precautions taken in the transportation of LNG throughout numerous ports on the U.S. East Coast. COMMITTEE UPDATE TOWING & BARGE OPERATORS COMMITTEE (June 15): The committee discussed the release of new regulations for the towing industry known as “Subchapter M.” An update was provided on the prospects for passage of the Vessel Incidental Discharge Act. The committee discussed challenges of navigating area bridges, particularly during summer months. There was also a discussion of the restricted openings at the damaged North Landing Bridge and delays in needed repairs.

MARITIME BRIEFINGS COMMITTEE (June 20): The committee reviewed the results of the April membership breakfast which featured Delegate Chris Jones, Chairman of the House Appropriations Committee. Topics were discussed and plans were put in motion for the remaining membership breakfasts in 2016. The committee re-evaluated the sponsorships.

EXECUTIVE COMMITTEE (June 20): Matters covered during the meeting included beginning to set expectations and establishing goals for VMA’s 100th anniversary in 2020, 5-year fi nancial planning for the Association, and exploration of establishing a foundation and improving industry scholarship programs.

EDUCATION & TRAINING COMMITTEE (June 23): The meeting was dedicated to the planning of a career fair to be held November 16 at Virginia Wesleyan College. The committee made several decisions regarding organizations and companies participation requirements, logistics, promotion and budget requirements.

INLAND TRANSPORTATION COMMITTEE (June 23): The committee received an explanation of and discussed the operational and infrastructure changes to be made at Norfolk International Terminals over the next two years. Also discussed were expectations for the July 1 implementation of the SOLAS Verifi ed Gross Mass requirements, operations at Portsmouth Marine Terminal, impacts anticipated from electronic logging of driver’s hours of service, and changes by HRCP in billing for empty chassis. 6 MEMBERSHIP NEWS New Members VMA Member Benefi ts Environmental Standards, Inc. Environmental Consulting 1412 Sachem Place, Suite 100 Charlottsville, VA 22910 Discount pricing on computer Ms. Ann Marie Gathright, Account Executive network services Phone: (434) 293 4039 Contact Blake White Hampton Roads and Richmond Areas e mail: [email protected] No joining fee and discounted rates (757) 216-3671 website www.envstd.com Contact Sam Davis (757) 622-2639 Mid Gulf Shipping Company Steamship Owners, Agents, Operators 4753 Thoroughgood Drive Virginia Beach, VA 23455 Mr. Mark W. Aldenderfer, Manager Team 1 Phone: (504) 717 8676; FAX (504) 835 1233 Fuel Purchase Program Call (800) 899-0747 option #3 e mail: [email protected] 25% discount on Safety and Effi ciency website www.midship.net Assessment Contact Gretchen Watson Old Point National Bank (757) 348-2954 Banks/Investments and Mortgage Loans 101 E. Queen Street Complimentary Subscritpion Hampton, VA 23669 Contact Ashley McLeod Ms. Melinda J. Matthews, Assistant Vice President, (757) 628-2678 Commercial Relationship Manager Phone: 728 1760; FAX 728 1891 e mail: [email protected] website www.oldpoint.com Discounted Room Rates for Sirius Marine Services LLC Members and Guests Group Level Dental Benefi ts Marine Surveying, Engineering and Transportation Call Virginia Maritime Association off ered on an individual basis Consultancy (757) 622-2639 Contact Ross Winfi eld 621 Little Neck Road (757) 340-9777 x355 Virginia Beach, VA 23452 Mr. Sirish “Sid” Kasarabada Phone: 216 9142 e mail: survey@sirius marine.net website www.sirius marine.net Retirement plan Competitive Rates VMA’s Multiple Employer evaluations for and Value-Added 401K Plan Additional Representatives business owners and Benefi ts from Health trustees Insurance Tidewater Staffi ng Inc. Contact Jim Blassingham (757) 533-4655 Employment Services 604 W. Washington Street Suffolk, VA 23434 Ms. Toni C. Himes, Offi cer Manager Phone: 935 5935 e mail: chris.h@tidewaterstaffi ng.com Kalmar USA, Inc. OOCL (USA), Inc. Equipment Supplier and Services Steamship Owners, Agents, Operators and 3300 Elmhurst Lane 4000 Faber Place Drive, Suite 400 749 Florida Avenue Portsmouth, VA 23701 North Charleston, SC 29405 Portsmouth, VA 23707 Mr. Thomas W. McDonough, North America Mr. Robert “Kyle” Massenburg, Mr. Terrell J. Moses, Offi cer Manager Division Manager Services Account Executive Virginia Future Leader Member Phone: 544 6290; FAX 465 9771 Phone: (804) 402 9642 Phone: 391 0100 e mail: [email protected] e mail: [email protected] e mail: terrell@tidewaterstaffi ng.com website http://www.kalmarglobal.com website http://www.oocl.com website www.tidewaterstaffi ng.com

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

P.O. Box 3487 Norfolk, Virginia 23510

CLUB CONTACTS:

Customs Brokers & Int’l Freight Forwarders Assn. Hampton Roads Traffi c Club Tidewater Motor Truck Association CONTACT: Val Sutton • 853-1940 CONTACT: Chris Stewart • 348-2163 CONTACT: Frank Borum • 494-0276 www.HamptonRoadsTraffi cClub.org Ed O’Callaghan • 450-8484 Hampton Roads Coal Association Nicole Sapienza • 810-1047 CONTACT: Joe DeMatteo • 928-1520 Propeller Club - Port of Norfolk CONTACT: Camille Cherry - 397-1131 Virginia Ship Repair Association Hampton Roads Global Commerce Council www.PropellerClubNorfolk.org CONTACT: Sylvia Bell • 233-7034 CONTACT: Sarah J. McCoy • 683-2128 www.VirginiaShipRepair.org www.hrgcc.org

Upcoming maritime events are listed on VAmaritime.com/events

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VMA MIC GOLF CLASSIC Anchor Members SEPTEMBER 26, 2016 PLATINUM ANCHORS

GOLDEN ANCHORS SILVER ANCHORS VMA CHESAPEAKE BAY FEAST Bay Diesel & Generator Anders Williams Ship Agency OCTOBER 3, 2016 T. Parker Host, Inc. CBRE | Hampton Roads Port City Transportation CV International, Inc. VHB Great Lakes Dredge & Dock Co. Vandeventer Black LLP SunTrust Bank Virginia Economic Development Técnico Corporation Partnership Wells Fargo Bank Virginia Pilot Association The Zydron Law Firm, P.L.L.C 8