Port Records Record-Setting FY 2014; June Volumes Strong
Norfolk – The Port of Virginia set a new mark for TEU volume in fiscal 2014 having handled more than 2.3 million TEUs in the twelve months that closed June 30, and eclipsed the previous fiscal year record by 140,476 TEUs.
The port recorded strong results in June, having handled 186,403 TEUs, which is a 6 percent improvement when compared with the same month last year. The month held growth for rail containers, 12.1 percent; Virginia Inland Port (containers handled), 102.8 percent; total barge containers 19.8 percent; total truck containers, 1.6 percent; ship calls, 1.3 percent; and vehicle units, 122.9 percent.
“We had a record-setting fiscal year, with our TEU volume growth up 6.5 percent when compared with fiscal 2013, and we’re also tracking for a record calendar year,” said John F. Reinhart, CEO and executive director of the Virginia Port Authority (VPA). “There are multiple factors that have led us to this point: one is the people of this port and another is our ongoing effort to improve operational efficiency.”
The previous fiscal- and calendar-year records for performance were set in 2013.
Improving cargo conveyance systems, a restructuring of the relationship between VPA and its private terminal operating subsidiary, Virginia International Terminals LLC, creation of a task force to address the concerns of motor carriers serving the port and implementation of state-of-the-art technology at Norfolk International Terminals were among the port’s accomplishments in fiscal 2014.
“The fiscal year has been one of positive change at multiple levels which is allowing us to focus on sustained growth and profitability,” Reinhart said. “The organization is going to continue to evolve and that will make The Port of Virginia more responsive, more competitive, which ultimately will drive growth supported by timely, measured expansion.”
The port is completing its year-end financials and that information will be released in the coming weeks. Reinhart said he expects the positive financial results reported in the last three months to continue.
Fiscal 2014 quarterly highlights:
- The port begins implementation of an appointment system at Norfolk International Terminals for motor carriers to help meter the flow of trucks in an out of the terminal. Additionally, the port puts into service a fleet of 32 yard hustlers to support NIT’s increasing rail volume.
- A two-year effort of planning, training and work culminated June 20 as the port launched the Navis N4 terminal operating system at Norfolk International Terminals (NIT).
- Virginia Gov. Terry McAuliffe announced on June 17 that Virginia poultry exports resumed to the People’s Republic of China, following a ban on Virginia poultry that last nearly seven years. The first shipment left the port in June.
- The governor appoints two new members to the VPA Board of Commissioners.
- The port posts its second and third profitable months.
- The realignment of the G6 transatlantic vessel-sharing alliance, which accounts for more than one-third of the container business at The Port of Virginia, brought significant opportunities to develop news business for the port: Four-out-of-the-five realigned services now call the port.
- The governor appoints five new members to the VPA Board of Commissioners and John G. Milliken is elected chairman of the board.
- More than 20 local maritime transportation industry representatives gathered to begin the work of the Motor Carrier Task Force, a group focused on improving the throughput of truck freight through The Port of Virginia.
- The port posted its first operating profit in seven months.
- A ship carrying export automobiles left Portsmouth Marine Terminal on April 28, the first time that terminal has been open for business in nearly three years.
- The federal government streamlines – quickens – the process for companies applying for Foreign Trade Zone status. The port, and many of its users, stands to benefit from the modification.
- Fitch Ratings, a leading international bond rating agency, this week gave it’s A, “stable“ rating to $159 million in outstanding VPA facilities revenue and refunding bonds and in doing so affirmed the health of those bonds.
- Major port user Lumber Liquidators, the largest specialty retailer of hardwood flooring in North America, announced it would invest more than $60 million in expanding its presence in Virginia. The company is consolidating its East Coast distribution operations in Henrico County.
- The port handled more than 200,000 TEUs in July and by doing so set a new record for single-month cargo volume, shattering the former mark set in 2007.
- The port handled more than 198,329 TEUs in August, putting it among the top five all-time most productive months, in terms of TEUs handled, in the port’s history
- China lifts it ban on the export of hardwood logs from Virginia. The move reopened an important market for companies that export hardwood logs to China via the port.
Fiscal 2014, percent change vs. fiscal 2013:
- Total TEUs: 2,305,911 +6.5%
- Total Containers: 1,319,500 +6.2%
- Total Rail Containers: 447,407 +8.9%
- Total VIP Containers: 35,305 +11.9%
- Total Barge Containers: 50,033 -6.5%
- Total Truck Containers: 822,060 +5.6%
- Ship Calls: 1,915 -1.9%
- Vehicle Units: 34,254 -.8%
Year-to-date TEU totals, 2014 vs. 2013, percent change:
- June 186,403 175,864 +6%
- May 204,232 191,368 +6.7%
- April 201,390 179,370 +12.3%
- March 197,834 179,518 +10.2%
- February 179,524 169,390 +6%
- January 167,272 158,766 +5.4%