Published by the Virginia Maritime Association, Norfolk, Virginiaemail: vma@VAMaritime.com • web site: www.VAMaritime.com

N e w s a n d I n f o r m a t i o n f r o m t h e P o r t s o f V i r g i n i a

Volume 79, No. 11November 2015

www.facebook.com/VAMaritime • twitter.com/VAMaritime linkedin.com/company/virginia-maritime-association • www.flickr.com/photos/virginiamaritime/

10th Annual Navigational Summit

On November 20th the Virginia Maritime Association hosted the 10th Annual Hampton Roads Navigational Summit at the Norfolk Yacht and Country Club.

Colonel Jason E. Kelly, Norfolk District Commander, provided a keynote address focusing on a theme of “Comprehension, Collaboration and Communication.” He commended the stakeholders on ten years of commitment towards realizing the port community’s priorities, recognizing those in attendance who signed the summit’s original Charter.  Discussing the importance of each project, Colonel Kelly overlaid his philosophy of how an organization must continue learning, comprehending, and communicating to become better. Colonel Kelly emphasized to become incrementally better, you should be competitive; to become exponentially better, you should be collaborative.  “Accomplishments of consequence are not realized alone, it is through collaboration; I think the list of those represented here and those members of this summit certainly illustrate this fact,” said Colonel Kelly. He announced the completion of the Port of Virginia Consolidation effort, highlighting the new Waterborne Commerce Statistics consolidated listing from the Corps which elevates Virginia to the 7th largest port in the nation will better represent cargo entering and exiting the port, and allow the Port of Virginia to equitably compete at a National and Global level.

Captain Bill Cofer, President of the Virginia Pilot Association, addressed the current and future size of ships in the global shipping fleet, in relation to the limited channel widths and depths associated with channels supporting those commercial shipping fleets in the United States. 

Captain Cofer pointed out that of the East Coast ports, Virginia is the only port that truly could support deepening and widening its inland channels to provide service to the largest ships of the world. Noting that all ports along the East Coast require approximately three feet of under-keel clearance in inland waters, but what most of the competitors are not saying about off-shore under-keel clearance requirements is that most ships, for all weather conditions, require nearly ten feet of under-keel clearance for their coastal fairway approach to inland waters. He pointed out that Virginia offers this deep off-shore fairway whereas many US coastal states have limitations of depths off their coastal shelf, long before they enter US inland waters, making all weather navigation of these ships problematic.

Captain Cofer emphasized the need for not only deepening, but the widening of channels to deal with the effective widths of

the ships that make up the new global fleet. Most ports that are currently deepening are not widening their channels which will limit them to one-way navigation. In Virginia, we have the ability and need to widen not only for commercial purposes, but as part of the mission of the US Navy to move their fleet, anytime and in any weather. He also pointed out the need for new capital funding for port infrastructure needs which will ensure when these mega container ships of the future arrive, that Virginia can outpace other ports in moving cargo off its terminals on to our outstanding trucking fleets and two class I rail lines to quickly disseminate the cargo quicker to the heartland of America.  In addition, he pointed out that it will also give us the opportunity to serve the Sunbelt South and the Northeast with surprising speed and efficiency.

He summed up the presentation pointing out that we are in a paradigm shift, unseen in the history of shipping, with the explosion in the size of vessels moving cargo around the world. But that Virginia is positioned better than any, in his opinion, to take advantage of the new reality of our current and future global shipping fleets and that Virginia’s citizens, if it follows a sound plan of widening, deepening and investing in infrastructure, will benefit with terrific jobs, new and expanded industry and expanded revenues for the Commonwealth for decades to come.

Mr. Doug Stamper, Project Manager, U.S. Army Corps of Engineers, updated the audience on the status of the ongoing studies that will support the 55-Foot & Southern Branch deepening projects.

A. Moye, Jr., R. Newlon, J. Reinhart, Col. Kelly, Capt. Cofer, and J. Anderson.

2

VIRGINIA MARITIMEASSOCIATION

OFFICERS

Chairman of the Board . . . . . . . . . . . . . . . . . . . Shirley G . Roebuck

President . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Raymond A . Newlon

Vice Presidents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Joseph A . Dorto

Michael W . Coleman

Jeffrey S . Heller

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

Treasurer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Judy M . Barrett

Assistant Treasurer . . . . . . . . . . . . . . . . . . . . . . . . .Mr . Keith Helton

STAFF

Vice President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .David C . White

Accounting Manager/Controller . . . . . . . . . . . . . . . . . . . . Sam Davis

Communications/Membership Director . . . .Ashley McLeod

Executive Assistant . . . . . . . . . . . . . . . . . . . . . . . . . .Janice S . Klasek

Events Coordinator/

Accouting Assistant . . . . . . . . . . . . . . . . . . . . . Jennifer N . Parham

Shipdesk Clerk . . . . . . . . . . . . . . . . . . . . . . . . . . . .Lynne H . Stonum

Membership/Publication

Coordinator & Editor . . . . . . . . . . . . . . . . . . .Susan N . Wisniewski

MARITIME BULLETIN is published

12 times a year by

Virginia Maritime Association .

Subscriptions are available through

membership in the Association .

Recipient of Presidential “E” and

“E Star” Awards for Excellence in Export Service

Recipient of ASAE Communication

Excellence & Honorable

Mention Award

Gaining Efficiencies for Intermodal Transportation

Anchor Member Feature

The continuous post-recessionary volume growth at the Port of Virginia underscores the increasingly critical role the Port plays

within the global supply chain. CSX is proud of our partnership with the Port and the role we have played in this resurgence.

In 2008, CSX focused on increasing our presence at the Port, specifically the intermodal business. At that time, we recognized the Port’s enormous future growth potential, due to a strong business climate, deep channel drafts and VPA’s commitment to moving 50% of port cargo by rail.

CSX made a conscious decision to strengthen our presence in Virginia, and thanks to the efforts of multiple gubernatorial administrations who promoted the need for dual, equal rail access into the VIG terminal, we had a tremendous opportunity to grow our business.

Since that time, we have supported port growth through network investments, expanded presence in the region, attracting new rail-served business and expanding the business of existing customers.

And as the calendar turns to 2016, CSX is preparing to enter a new realm of our service to the Port and the nation by achieving long-anticipated double-stacked service to Hampton Roads. After an extended review process and engagement with the local community, CSX began work on the Virginia Avenue Tunnel on May 1, 2015. We expect double-stack clearance capability by the end of 2016 and full project completion by the end of 2018.

The Virginia Avenue Tunnel is the final project of the CSX National Gateway initiative, an $850 million public-private partnership that cleared 61 overhead obstructions from Hampton Roads to the Midwest. When complete, the Gateway will more efficiently connect Virginia and its ports to both the Eastern Seaboard and Midwest, creating new opportunities for the region and the Commonwealth.

This progress we have made would not have been possible without ongoing cooperation from the Commonwealth, the Port Authority, the Virginia Maritime Association and the entire maritime community, who understood, embraced and invested in the long term value proposition of the National Gateway. We are grateful for your support and excited about the state’s transportation future.

For more information, please visit www.csx.com and www.intermodal.com.

MARITIME NEWS

3

ODU Board Approves MS for Maritime Trade and Supply Chain

Networking “On Tap” at Mixer

Keurig Green Mountain Creates FTZ

The State Council of Higher Education in Virginia (SCHEV) has approved Old Dominion University’s proposal for a Master of Science degree in Maritime Trade and Supply

Chain Management. Supply chain management and the related maritime trade industry represent an emerging area in academic degree program. This program is designed to produce professionals with the knowledge, skills, and training required to work with transportation carriers, ports and shippers as well as third parties and governments that are directly or indirectly involved in the movement—supply chain—of maritime trade.

The importance of maritime supply chain management is highlighted by ever-increasing globalization and trade across multiple continents and by the significant use of transportation by sea throughout the world. Over 90% of global trade by volume is carried by sea, according to the International Maritime Organization’s Maritime Knowledge Centre. In the United States, the Commerce Department notes that “spending in the logistics and transportation industry totaled $1.33 trillion in 2012 (the latest data available), and represented 8.5 percent of annual gross domestic product” (GDP).

Old Dominion University’s Academic and Research Advancement Committee noted that the “program is on the cutting edge of supporting industries involved in port and supply chain management. It is the first of its kind in the Commonwealth of Virginia - and in the United States. It was designed specifically for managers and supply chain professionals to expand their knowledge, update their skill sets, and enhance their work with transportation carriers, shippers, sourcing agents, warehouse

managers as well as third parties and governments directly or indirectly involved in the movement of cargo and material flow.”

With its close proximity to the Port of Virginia and its significant shipping and transportation activities, ODU will continue to serve as a valuable resource to maritime and related industries in Hampton Roads, the Commonwealth of Virginia, North America and beyond. Given the significant role of maritime transportation within the realm of supply chains, this program will fill a role that is currently lacking among academically-trained professionals in the U.S.

Keurig submitted applications to become the first coffee company to create foreign trade zones (FTZs) to import coffee beans into the United States. Establishing FTZs will

allow Keurig to increase its logistical efficiencies while reducing costs.

FTZs allow companies to import goods into a country without passing through customs or paying taxes until the goods leave the specified zone. Keurig will utilize four FTZs located in ports in Virginia, Seattle and New Jersey to store and distribute green coffee beans.

The move to establish FTZs may influence other coffee producers, and companies that produce duty-free import products, to follow suit.

Representatives from Cook Maritime Solutions, JA MOODY and VA Port Authority enjoy the Maritime Mixer at O’Connor Brewing Co.

Friendly game of corn hole between VMA staff and members.

4

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5

NE WS BRIEFS & ANNOUNCEMENTS

VPA Launches New Customer Support Center Portal

In an effort to maximize efficiency for their customers, the Virginia Port Authority launched a new online Customer Support Center Portal available at http://customerservice.portofvirginia.com/

The new tool offers expedited cargo movement by: 1) utilizing a constantly-updated library of solutions (knowledge base) that is available 24 hours a day, 365 days a year. As customers use the portal, the VPA will build and continuously update the library to ensure customers can quickly find the answers they need, and 2) A new Service Ticket System allows better access to VPA customer service staff. The service ticket enables better monitoring of requests and can establish a history of service interactions.

Customers can still call or e-mail the Customer Service Team at 757-440-7160 or POVCustomerService@vit.org.

T. Parker Host Named International “Bulk Ships Agent of the Year”

International Bulk Journal (IBJ) named T. Parker Host as its 2015 International “Bulk Ships Agent of the Year”. The award was presented on November 16 at the Hilton Antwerp Old Town Hotel.

IBJ is the leading magazine for the maritime dry bulk industry for over 35 years. The magazine reviews dry bulk shipping, commodities, port, logistics and equipment in each issue. Seven years ago, IBJ launched its awards to salute achievements in the maritime bulk industry and provide companies an opportunity to showcase their accomplishments, or to nominate an organization which they believe is doing a fantastic job.

The award underlines T. Parker Host’s understanding of specialized needs of bulk ships and their operators, how the company meets the unique requirements for local knowledge, and how agents tailor their service to meet individual customer needs.

T. Parker Host, headquartered in Norfolk, is the largest dry bulk agent in the United States, with 16 agency locations handling over 3,600 vessels per year. T. Parker Host also provides terminal operations, stevedoring, and transportation logistics.

Award presented to David Chenowith, T. Parker Host, Inc., Baltimore Operations Manager

Fred J. Whyte, president of Stihl, recently was honored by the Virginia Manufacturers Association. The organization presented Whyte with its Frank Armstrong III Service Award for his contributions to the Virginia manufacturing sector crediting Whyte for Stihl’s leadership of “numerous initiatives” that have improved the competitiveness of the manufacturing in the Commonwealth. Mr. Whyte is pictured with colleagues from Stihl.

Stihl President, Fred J. Whyte Honored

Central Virginia Chapter Officers Elected

The VMA-Central Virginia Chapter held its first function Monday, November 16th, in Richmond. Sixty-three attended the luncheon meeting at The Boathouse at Rocketts Landing, after a bus tour of the Port of Richmond, sponsored by The Port of Virginia and guided by Daniel LaGrande and Chris Gullickson. Thank you to luncheon sponsors, JP Morgan Chase, Virginia Economic Development Partnership, Williams Mullen, Altria, Universal Leaf, and CV International.

Executive Vice President, Art Moye presented a brief overview of the Virginia Maritime Association and Chapter Chairman, Butch Crane conducted the business meeting. Business items included the election of two Chapter officers: Holly Pearce (Lumber Liquidators) as Vice-Chair and Warren Redfern (JP Morgan Chase) as Secretary.

Chairman Crane presented a proposed Mission, Vision and Goal Statement drafted by George Adams of Altria. The statement was unanimously approved by members. The next meeting of the Central Virginia Chapter will be held on Monday, January 11, 2016. Current VMA member representatives

are encouraged to participate, as well as interested potential members. For additional information regarding the Central Virginia Chapter, or other regional chapters, contact Ashley McLeod, VMA Communications & Membership Director, ashley@vamaritime.com or 757-628-2678.

Warren Redfern

Holly Pearce

Butch Crane

VMA HIGHLIGHTS

6

The Association In Action

Committee Update

The October activities of the Virginia Maritime Association demonstrate how the Association regularly represents the interests of its members and waterborne commerce on many fronts.

VMA’s Art Moye sits on the governing board of the Virginia Offshore Wind Development Authority (VOWDA) and participated in its October 7 meeting in Richmond. The focus of the meeting was to review and finalize VOWDA’s annual report for the General Assembly with recommendations for the Commonwealth to take to support and facilitate offshore wind energy. VOWDA also considered a port readiness study which identified opportunities for port industries.

VMA participated in an October 13 stakeholder meeting in preparation for installation of new fiber optic cables across the harbor and beneath the navigation channel. The meeting identified issues to be addressed and maritime activities to be coordinated, including a brief closure of the navigation channel.

Art Moye, VMA’s Executive Vice President, and Delegate Chris Stolle, co-chair the Freight Transportation Advisory Committee (FTAC); an advisory committee, providing input on the transportation requirements for freight movement, to the Hampton Roads Transportation Planning Organization (HRTPO) which defines the transportation priorities for the region. During the October 15 HRTPO meeting, Mr. Moye delivered an FTAC resolution stating “if tolls are considered as a funding

source in Hampton Roads and policies are developed by the region, that FTAC participate in the process to ensure any tolls on the regional freight industry are equitable.”

On October 16, the Association was pleased to co-host with the Virginia Port Authority a port tour for the current class of the Sorensen Institute’s flagship Political Leaders Program - a leadership development program for residents of Virginia interested in becoming more active in public service, whether as community leaders or as elected officials.

Immediately following the VMA Membership Breakfast with Maurice Jones, Virginia’s Secretary of Commerce and Trade on October 20, the association conducted an information session about the Virginia International Trade Alliance (VITAL). Those attending received information about why and how to apply for funding and resources offered by the Virginia Economic Development Partnership for international trade missions and tailored global market research.

Along with several federal and state agencies, the VMA has a seat on the Area Maritime Security Committee (AMSC) which is sponsored by U.S. Coast Guard Sector Hampton Roads and chaired by the Captain of the Port. The VMA made a presentation on the current level and direction of commercial shipping and industry activities in the waterways, the economic impacts of those activities, and significance of shipping to the efficiency and security of the nation’s supply chain.

INTERNATIONAL TRADE SYMPOSIUM COMMITTEE (Oct. 1 & 23): The committee briefly reviewed lessons learned from the 2015 symposium and then focused on the topics, content and format for the 2016 symposium already scheduled for May 12.

TERMINAL OPERATORS COMMITTEE (Oct. 2): The committee discussed preparations for Hurricane Juaquin, usage and further opportunities for the Commercial Marine Facility Guide hosted on VMA’s website, demands and uses of port anchorages, the port-wide economic impact analysis commissioned by VMA, and bridge closures on the Southern Branch of the Elizabeth River.

TOWING & BARGE OPERATORS COMMITTEE (Oct. 7): Updates were provided regarding dockside exams for towing vessels and scheduling bridge openings for vessel transits. The committee reviewed safety recommendations issued by the National Transportation Safety Board, prospects for the designation of Regulated Navigation Areas for ice, and ongoing discussions with VDOT about the necessary height for a new fixed-span bridge being planned for replacement of the I-64 High Rise Bridge.

COMMUNICATIONS & OUTREACH COMMITTEE (Oct. 13): Having received Board approval for the committee’s branding recommendations, the committee discussed the brand implementation process. The committee discussed and gave clarification around questions raised in connection with the on-going port-wide economic impact analysis. The committee also reviewed legislative priorities and strategies leading up to the 2016 General Assembly session.

COMMERCE DEVELOPMENT COMMITTEE (Oct. 14): A new port marketing tri-fold was approved and plans were made for its distribution. The committee discussed promotion of the Virginia International Trade Alliance (VITAL) program. An overview was provided of the City of Norfolk’s international trade promotion activities as a result of a new focus by the City on growing international business and participating in the global economy. The committee discussed the Norfolk NATO Festival’s increasing emphasis on facilitating commercial relationships between the business community and NATO countries.

7

MEMBERSHIP NEWS

NEW MEMBERS

ADDITIONAL REPRESENTATIVES

ADAMS-SCAT SECURITY SYSTEMS, INC. Security/CCTV/Access ID/Fire/IT/ 24 Hour Monitoring5295 Greenwich Road, Suite 111Virginia Beach, VA (23462)Mr. Daniel E. Adams, Jr., President Phone: 4971090 • FAX 4979376email: scatsec1978@aol.comwebsite: www.adamscatsecurity.com

COLONIAL HERITAGE CLUB Country Club/Hospitality Golf Course6500 Arthur Hills DriveWilliamsburg, VA (23188)Ms. Susan Womack, Director of Sales Phone: 6452011 • FAX 6452014 email: swomack@colonialheritageclub.com

NORFOLK PRINTING Commercial Printing805 Granby Street (23510)Mr. Michael P. Phelps, Owner Phone: 6271302 • FAX 6251729 email: mike@norfolkprinting.hrcoxmail.comwebsite: www.norfolkprintingcompany.com

BRANSCOME, INC. Mr. Brian H. ConradSales Manager email: conradb@branscome.com

GREAT LAKES DREDGE & DOCK CO. Ms. Ashley Reese, Crewing Manager email: areese@gldd.com

WILLIAMS MULLEN Law FirmMr. Henry R. Pollard, V, Partner email: hpollard@williamsmullen.com

Members will receive 12 monthly issues ofVirginia Business

If you are located in Hampton Roads, you will receive two additional annual publications,

The Hampton Roads Maritime& International Trade Guide

and

Hampton Roads Statistical Digest.

Insuring your good name p. 35 What are the biggest challenges facing corporate boards? p. 39

VIRGINIA’S SOURCE FOR BUSINESS INTELLIGENCE JULY 2015

VIRGVIRGINIAINNNIAINIANNNNNNNIANIAIAAAAAANIANIAANIANNNIANNNNIANNNIAAANIAAAAAINIANNNNNNNIANIAANIAAAAANNIANNNN AAAANIANIAANNNN AAAAAAANN AAANN AAAANNIAAAANNN AAINNNNN AAAINNNNNNNN AAAINNNNNNNNNNINIAAAAAIINNNNNNNNN AAINNNN AAINNN AAAINN AAA’S S’S SOURCOUR E FOFOR BR BUSINESS INTELLIGENCE JULY 2015

www.VirginiaBusiness.com

Navigating trade routesSingle shipment requires careful

planning

Tugboats assist the container ship MSC Carole at the Port of Virginia

Free Subscription Offer for VMA members!

Contact Ashley McLeod, VMA at: 757-622-2639 for details!

Virginia Business is celebrating its 30th Yearas Virginia’s Source for Business Intelligence and is pleased to offer

this benefit to Virginia VMA members as a new infinity partner.

Member  Benefit  from  VMA  

Safety  &  Efficiency  Benefits  from  Safety  &  Learning  Solu<ons  

Have  you  ever  wondered  how  the  safety  or  efficiency  of  your  company  looks  from  the  inside  out?  Would  you  appreciate  straigh;orward  graphs  to  depict  your  company’s  strengths  andchallenges?  If  you  would  like  to  get  this  done  without  long  and  tedious  surveys,  now  you  can.  

Through  an  exclusive  markeBng  agreement  with  SLS—a  Virginia-­‐based  firm—any  VMAmember  businesses  has  a  chance  to  get  an  “MRI”  of  it’s  company  culture.  

Like  an  MRI,  the  SLS  assessment  process  is  pain-­‐free  and  provides  you  with  a  clear  pictureof  how to  improve  the  safety  and  efficiency  of  your  workforce.  Leaders  and  employees  findthis  “diagnosBc”  process  to  be  an  insigh;ul  and  morale-­‐boosBng  experience.      

What  are  the  value-­‐added  benefits?  

The  first  five  VMA  companies  that  request  a  company  assessment  will  receive  a  50%discount.  

All  other  VMA  companies  will  receive  a  25%discount.    

The  assessment  includes  a  Safety  Governance  Profile©  and  a  plan  for  improving  safety  and  reducing  costly  rework  that  details  strategiesto  increase  employee  engagement.    

The  assessment  will  be  completed  with  input  from  doctoral  level  psychologists,  communicaBon,  and  markeBng  professionals  who  have  been  trained  by  naBonal  safety  andhealthcare  experts.    

Local  experBse  is  available  to  guide  companiesthrough  implementaBon  of  the  plan  and  related  training,  if  desired.  

For  more  informaBon,  please  contact:  

Gretchen  Watson,  Ph.D.  President,  SLS    gwatsonphd@gmail.com  757-­‐348-­‐2954    

www.yoursls.com  

PRESORTED STANDARDU.S. POSTAGE PAID

NORFOLK, VAPERMIT NO. 1930

236 E. Plume StreetNorfolk, Virginia 23510

P.O. Box 3487Norfolk Virginia

(757) 622-2639; FAX 622-6302www.VAMaritime.comvma@VAMaritime.com

Club ContactsCustoms Brokers & Int’l Freight Forwarders Assn .

CONTACT: Val Sutton • 853-1940

Hampton Roads Coal AssociationCONTACT: Joe DeMatteo • 928-1520

Hampton Roads Global Commerce CouncilCONTACT: Peter Trocchiano • 201-9796

www.hrgcc.org

Hampton Roads Traffic ClubCONTACT: Michael Hirsch • 485-4799www.HamptonRoadsTrafficClub.org

ODU Maritime Institute Speaker SeriesCONTACT: Sara Russell • 683-3964

Organization for Women in Int’l Trade (OWIT)CONTACT: Sara Russell • 683-3964

Propeller Club - Port of NorfolkCONTACT: Camille Cherry - 397-1131

www.PropellerClubNorfolk.org

Tidewater Motor Truck AssociationCONTACT: Frank Borum • 494-0276

Ed O’Callaghan • 450-8484 Nicole Sapienza • 810-1047

Virginia Ship Repair AssociationCONTACT: Sylvia Bell • 233-7034

www.VirginiaShipRepair.org

ANCHOR MEMBERS

PLATINUM ANCHORS:

GOLDEN ANCHORS:

Bay Diesel & Generator

CV International, Inc.

T. Parker Host, Inc.

Vandeventer Black LLP

Virginia Economic Development Partnership

Virginia Pilot Association

SILVER ANCHORS:

Bennett and Zydron, P.C.

CBRE | Hampton Roads

Great Lakes Dredge & Dock Co.

SunTrust Bank

Tecnico Corporation

VHB, Inc.

Wells Fargo Bank

Font: GIBSON

Virginia MaritimeAssociation

invitesyou to a

MaritimeMixer

January 21, 20165:00 to 7:30 pm

Chick’s Oyster BarVirginia Beach

Register at www.VAMaritime.com

Upcoming maritime events are listed on VAMaritime.com/events