OPEN FOR

BUSINESS.

2020 ANNUAL REPORT

OUR ECONOMIC IMPACT
OUR ECONOMIC IMPACT

Virginia is open for business

The Port of Virginia delivers opportunity by driving business to, and through, the Commonwealth.
Closer look >

The Port's Economic Impact Across Virginia

The Port of Virginia delivers opportunity by driving business to, and through, the Commonwealth.

Virginia is open for business

The Port of Virginia delivers opportunity by driving business to, and through, the Commonwealth.
Regions are designed by Go Virginia
City of Fredericksburg; and the counties of Caroline, Essex, Gloucester, King and Queen, King George, King William, Lancaster, Mathews, Middlesex, Northumberland, Richmond, Spotsylvania, Stafford, and Westmoreland

Statewide Totals

Fiscal Year 2020 totals

38

Announcements

$1,465,003,000

Invested in Virginia

9,315,239

Square feet of new space

5,411

New jobs for Virginians
Contact our Economic Development team
City of Fredericksburg; and the counties of Caroline, Essex, Gloucester, King and Queen, King George, King William, Lancaster, Mathews, Middlesex, Northumberland, Richmond, Spotsylvania, Stafford, and Westmoreland

Region 1

Statewide Totals
Cities of Bristol, Galax, and Norton; and the counties of Bland, Buchanan, Carroll, Dickenson, Grayson, Lee, Russell, Scott, Smyth, Tazewell, Washington, Wise, and Wythe

1

Announcements

$2,275,000

Invested in Virginia

0

Square feet of new space

118

New jobs for Virginians
Contact our Economic Development team

Region 2

Statewide Totals
Cities of Covington, Lynchburg, Radford, Roanoke, and Salem; and the counties of Alleghany, Amherst, Appomattox, Bedford, Botetourt, Campbell, Craig, Floyd, Franklin, Giles, Montgomery, Pulaski, and Roanoke

4

Announcements

$467,700,000

Invested in Virginia

750,000

Square feet of new space

1,098

New jobs for Virginians
Contact our Economic Development team

Region 3

Statewide Totals
Cities of Danville and Martinsville; and the counties of Amelia, Brunswick, Buckingham, Charlotte, Cumberland, Halifax, Henry, Lunenburg, Mecklenburg, Nottoway, Patrick, Pittsylvania, and Prince Edward

5

Announcements

$104,150,000

Invested in Virginia

1,045,000

Square feet of new space

909

New jobs for Virginians
Contact our Economic Development team

Region 4

Statewide Totals
Cities Colonial Heights, Emporia, Hopewell, Petersburg, and Richmond; and the counties of Charles City, Chesterfield, Dinwiddie, Goochland, Greensville, Hanover, Henrico, New Kent, Powhatan, Prince George, Surry, and Sussex

8

Announcements

$257,818,000

Invested in Virginia

928,486

Square feet of new space

699

New jobs for Virginians
Contact our Economic Development team

Region 5

Statewide Totals
Cities of Chesapeake, Franklin, Hampton, Newport News, Norfolk, Poquoson, Portsmouth, Suffolk, Virginia Beach, and Williamsburg; and the counties of Accomack, Isle of Wight, James City, Northampton, Southampton, and York

12

Announcements

$443,860,000

Invested in Virginia

6,300,933

Square feet of new space

1,994

New jobs for Virginians
Contact our Economic Development team

Region 6

Statewide Totals
City of Fredericksburg; and the counties of Caroline, Essex, Gloucester, King and Queen, King George, King William, Lancaster, Mathews, Middlesex, Northumberland, Richmond, Spotsylvania, Stafford, and Westmoreland

2

Announcements

$33,050,000

Invested in Virginia

0

Square feet of new space

126

New jobs for Virginians
Contact our Economic Development team

Region 7

Statewide Totals
Cities Alexandria, Fairfax, Falls Church, Manassas, and Manassas Park; and the counties of Arlington, Fairfax, Loudoun, and Prince William

0

Announcements

$0

Invested in Virginia

0

Square feet of new space

0

New jobs for Virginians
Contact our Economic Development team

Region 8

Statewide Totals
Cities of Buena Vista, Harrisonburg, Lexington, Staunton, Waynesboro, Winchester; and the counties of Augusta, Bath, Clarke, Frederick, Highland, Page, Rockbridge, Rockingham, Shenandoah, and Warren

3

Announcements

$171,700,000

Invested in Virginia

0

Square feet of new space

265

New jobs for Virginians
Contact our Economic Development team

Region 9

Statewide Totals
The city of Charlottesville; and the counties of Albemarle, Culpeper, Fauquier, Fluvanna, Greene, Louisa, Madison, Nelson, Orange, and Rappahannock

0

Announcements

$0

Invested in Virginia

0

Square feet of new space

0

New jobs for Virginians
Contact our Economic Development team
Top Export Commodities
Top Import Commodities

Soybeans & Products: East Coast

Virginia is the #1 exporter of vegetables on the U.S. East Coast. Soybeans and the products created from the versatile vegetable are a large component of those exports. Some of this cargo is for human consumption, like whole beans and those ground into soybean flour. Soybean byproducts including the oil is used in making feed and proteins for animals.

Paper & Paperboard

Ever wonder what happens to that packaging material you place in the recycle bin? Much of the material used in recycled paper and cardboard packaging leaves The Port of Virginia as wastepaper to return as new cardboard cartons, office paper, school binders and other products .

Pet & Animal Feeds

Americans are projected to spend nearly $40 billion on pet food and treats in 2020*. We ship many of the things used to make pet and livestock feed including fruit or spores for planting; feed components like flour and meal, and hay and clover.
*American Pet Products Association / March 2020

Furniture

From mattresses and recliners to surgical tables and dentists’ chairs, all types of furniture cross our terminals on a regular basis. Many of those products got their start here as lumber exported from Virginia that returns as finished furniture.

Plastic Products

This is a wide-ranging area of products that are used in the both the home and industry. Tableware, storage bins, and bags are commonly found in homes and thread and cord, tubes, pipes, and hoses are used in manufacturing and construction.

Auto Parts

Automobiles built in the US contain many parts which come from overseas manufacturers. Electric lights, ignition switches, windshield wipers, and seats are among the many parts imported for domestically produced cars and trucks.

How we moved cargo in 2020

Rail

498,563 Containers

Barge

59,087 Containers

Truck

980,519 Containers

1,538,169

Total Containers

How we've grown since 2015

2.6%

Compound Annual Growth Rate over the past six years.

The port is a global gateway

A recent study by The College of William & Mary showed the port had a significant, positive effect on Virginia’s economy in fiscal year 2018, (FY18), which was from July 1, 2018 – June 30, 2019. The study's executive summary said:
“[The] availability of a unique deep-water port . . . able to handle a variety of container exports through nearly 30 international shipping line services direct to more than 90 foreign ports, provides global market access for Virginia businesses. Bottom line: this expands the volume they can produce and sell profitably. The production of Virginia-made exports is a major economic contribution attributable to Port of Virginia operations,” the study’s executive summary said.
Economic Impact
FY18
FY13
Change
Spending
$92.1B*
$60.3B
+52.8%
*Represents 10.8% of Virginia’s estimated output purchases
Gross State Product
$39.3B*
$30.5B
+28.7%
* Represents 7.5% of Virginia’s FY18 GSP
Labor Income
$23B*
$17.B
+31.3%
* Represents 7% of Virginia’s total employment compensation
State/Local Taxes/Fees
$2.1B*
$1.4B
+46.2%
* Represents 4.2% of total state and local revenues
Employment
397,094*
374,646
+6%
* Represents 9.5% of Virginia’s resident employment
Spending
FY13
$60.3B
FY18
$92.1B*
+52.8%
*Represents 10.8% of Virginia’s estimated output purchases
Gross State Product
FY13
$30.5B
FY18
$39.3B*
+28.7%
* Represents 7.5% of Virginia’s FY18 GSP
Labor Income
FY13
$17.B
FY18
$23B*
+31.3%
* Represents 7% of Virginia’s total employment compensation
State/Local Taxes/Fees
FY13
$2.1B
FY18
$1.4B*
+46.2%
* Represents 4.2% of total state and local revenues
Employment
FY13
374,646
FY18
397,094*
+6%
* Represents 9.5% of Virginia’s resident employment
CEO'S LETTER
CEO'S LETTER

We have been tested and are stronger because of it.

Who could have predicted what fiscal year 2020 held for The Port of Virginia: record cargo volumes, unparalleled investment, expansion and pandemic?
John F. Reinhart, CEO and Executive Director
Our FY20 started-off according to plan, with the completion of the VIG expansion and the start of dredging to make Virginia home to the deepest port in the U.S. East Coast being among our biggest accomplishments. The VIG project was delivered on-time and under budget and is delivering results for our customers. The dredging effort is ahead of schedule and we’re optimistic this will continue.
Our PRO-PASS® reservation system is creating efficiency for the motor carrier partners hauling cargo to-and-from our terminals. The system enables motor carriers to pick-up or drop-off a container in 30 minutes or less, which is among the fastest times in the port industry.
The investments we’ve made in capacity expansion and overall modernization are showing their value. Rail cargo was processed in an average of 40 hours or less, which is well below the industry standard. Likewise, truck drivers spent less time on terminal, about 40 minutes, on average. This is about 20 minutes below the industry standard. And we operated safely, with the number of workdays lost to injury at an all-time low and well-below the federal government standard. This is the performance of a world-class port.
Further, companies including Amazon, Acesur, and Navien are coming to, or expanding in Virginia to capitalize on our growth. This activity is driving more cargo, job creation and investment throughout Virginia.

We entered 2020 focusing on growth: trade relations between the U.S. and China began to improve, our reputation for operational efficiency was growing and the final push to complete the expansion at NIT was underway. The normal challenges would be there, but it was impossible to foresee a pandemic and its quick, negative effect on global trade.

Cargo volumes at our port, like every commercial port, were hit hard:  from January – June 2020 our volumes were down more than 12 percent when compared with that same period a year ago.

Still, there were rays of light during this period and among them was the way The Port of Virginia team performed. This dedicated group of men and women worked tirelessly to find ways to take care of the cargo crossing our terminals while looking out for our partners, stakeholders, and one-another. We were laser-focused on maintaining normal operations while remaining safe – social distancing, working from home, keeping our terminals clean and being ready to adapt.

We assisted the cruise industry by allowing three vessels to temporarily dock at PMT until the pandemic abated. And did this while preparing the terminal for Orsted – our alternative energy tenant at PMT – to begin to establish Virginia as the hub of wind energy on the East Coast.
Our efforts enabled us to remain profitable for our sixth consecutive year. But more importantly, it allowed us to move forward without furloughs or cuts in pay and benefits.
We ended this year in a very different place than from where we began, but our values and commitment to our mission brought out the best in us. We prioritized critical cargo, ensured efficiency, kept our colleagues working and our business solvent.

The port team is stronger and more unified than ever. I’m proud of the work the team has done for our customers, our commonwealth and for each other. As you read this report, I believe you will be, too.
John F. Reinhart, CEO and Executive Director

The Challenge: Trade Wars and
a Global Pandemic

Fiscal year 2020 posed a host of challenges to us: a tariff-driven trade war with our largest trading partner, the traditional slowing of trade during the Chinese New Year and the onset of the COVID-19 pandemic.
Closer look >
CHALLENGES
CHALLENGES

We maintained our volumes in the first-half of FY20.

-0.1%

Total TEUS

-1.3%

General Cargo Tonnage

By the time the second half of the fiscal year closed June 30, our volumes were off by nearly 7 percent.

Trade War
Chinese New Year
COVID-19

Our Plan

With the plan in-hand, the port team and its labor partners went to work. Those who could work from home did so, and those needed on the terminals reported for work every day, without hesitation. The cargo flowing across the terminals moved with speed, predictability, and safety. The motor-carriers moved through the gates with efficiency; our double-stack rail service to many critical manufacturing and population centers in the nation’s Heartland was uninterrupted; and we set records for the amount of cargo moved by barge, up nearly 9 percent; and the overall cargo volume at Richmond Marine Terminal was up more than 22 percent.

The Response: Taking care of cargo - and each other

Soon after COVID-19 began spreading, cargo volumes across all U.S. ports began falling, and Virginia was no exception. As a result, we began focusing on several efforts to ensure continuity of operations, colleague safety, and preparation for what may come next.
Closer look >
Our Response
Our Response
Our Priorities
Our Recommendations
Labor Precautions
Operational Changes
Planning for Recovery

Our Priorities

There were multiple priorities that we addressed in parallel. We began controlling costs and opening regular communication channels with customers and cargo owners. We worked in close collaboration with our labor partner, the International Longshoremen’s Association, to ensure a safe workplace and consistent cargo flow. And we began planning for recovery.

Our Recommendations

The response team made recommendations on maintaining individual safety as the virus spread. It developed a regular internal-and-external communications plan and made daily operational adjustments to maintain cargo flow and efficiency. As colleagues began working from home, the response team made sure the necessary technical support was in place; it assessed the virus’s short- and long-term impact on business; ensured financial stability; and kept several, large infrastructure projects moving forward.

Labor Precautions

We worked with our labor partners to implement a temperature screening process for operations-related personnel entering Virginia International Gateway and Norfolk International Terminals, prohibited visitors and took steps to ensure social distancing in the workplace. Common areas, work stations, and shared equipment were sanitized by a commercial cleaning firm.

Operational Changes

Early on, we realized volumes were not going to recover quickly, so we began controlling costs. We reduced gate hours, eliminated weekend operations, froze salaries, and reviewed discretionary spending and project costs without lay-offs or furloughs. With VIG’s expansion complete and the work at NIT nearing its finish, we were able to close PMT to container traffic. This allowed us to move the remaining container volume at PMT to our bigger, more modern terminals and greatly reduce operational costs.

Planning for Recovery

We also began preparing for recovery. To that effort we accelerated the maintenance cycles of some equipment, tested systems to ensure efficiency, and used this opportunity to focus on completing the NIT expansion project on time and on-budget.

Looking Ahead

The overall result of our effort was no lost workdays as a result of the virus: we maintained the safe, efficient movement of cargo without incident or injury. Further, our team and terminals are ready for recovery and we now have the experience of executing our mission of moving cargo and being responsible to our customers in the most challenging business environment.

A year like no other

TIMELINE
TIMELINE
Q1
Q2
Q3
Q4

July

Driven by an increase in imports, the port completes fiscal year 2019 (July 1, 2018 – June 30, 2019) having handled a record 2.9 million TEUs, which is a volume increase of 4 percent when compared with last fiscal year.

August

The port is among a group of port and maritime industry partners that worked together to send critical supplies to the Bahamas following Hurricane Dorian. The port collaborated with partners from across the industry to fill shipping containers with gas generators, tarps, gas cans, tents, extension cords, batteries, water, toiletries, baby wipes, diapers, cleaning supplies, and other related items.

September

The Port Management and Infrastructure award goes to the port for its Virginia International Gateway (VIG) infrastructure project: a three-year, $320 million investment that reimagined and re-engineered one of the nation’s most state-of-the-art terminals. The Lloyd’s List 2019 Americas Awards is an annual competition held by one of the maritime industry’s sources of maritime data and information.
LEARN MORE >

October

The contract to begin the first phase of dredging on the 55-foot project is signed. The $350 million project includes dredging the shipping channels to 55 feet – with deeper ocean approaches – and widening the channel to more than 1,400 feet in specific areas. When complete in 2024, the commercial channels serving the Norfolk Harbor will be able to simultaneously accommodate two, ultra-large container vessels.

November

The work to make Virginia home to the deepest port on the U.S. East Coast begins. The project holds long-term benefits for Virginia, cargo owners, customers, and the ocean carriers. When complete in 2024, the commercial channels will be able to safely handle two-way movement of ultra-large container vessels, unrestricted by tide.
LEARN MORE >

December

A study conducted by The College of William & Mary that focuses on the overall value of the port to the Virginia economy during fiscal year 2018 (FY18) shows the port to be an expanding and significant economic force in the Commonwealth’s economy. The study says in Virginia there are more than 397,000 jobs and $92 billion in total spending tied to port activity.
LEARN MORE >

January

Ørsted, a European renewable energy company, and the port reach an agreement for Ørsted to lease a portion of the Portsmouth Marine Terminal (PMT) as a staging area for the materials and components used in building offshore wind turbines that generate electricity. The move is seen as the first step in the development of a new industry in Virginia.

February

With Chinese ports closed, cargo volumes begin to reflect the negative impact COVID-19 is having on the commercial shipping industry. The spreading virus, the residual impact of the China-U.S. trade war and manufacturing at a standstill combine for a 9 percent drop in cargo volumes in February.

March

The port handles its first import containers of COVID-19 test kits and protective gear for frontline medical personnel and is processes the cargo in rapid fashion through the newly-instituted COVID-19 Critical Cargo Initiative. The effort identified critical imports needed to fight the virus and allocated the assets needed to get the container moving quickly to its destination.
LEARN MORE >

April

As a result of COVID-19-driven reduction in container volumes and to save money, the port ceases container operations at PMT and integrates the people, the vessel services, and containers moving across PMT into the operations at VIG and NIT. The long-term strategic plan outlines that PMT’s focus will be on roll-on roll-off, heavy lift, breakbulk, and project cargo.

May

The final group of automated stacking cranes arrive at NIT successfully ending just over two years of constant deliveries of the machines that are the centerpieces of the expansion at the port’s primary container terminals. In 2016, the port approved a $217 million contract for 86 specialized cranes. The contract is the largest one time order for automated stacking cranes in industry history and called for 26 cranes to be delivered to VIG and 60 to NIT.
The port’s leader of the last six-and-a-half years, John F. Reinhart, announces that he will retire from his post as chief executive officer and executive director of the Virginia Port Authority, effective March 2021. Reinhart is the architect behind the port’s capacity expansion projects, the move to dredge the commercial channels to 55 feet, and the overall resurgence of The Port of Virginia.
LEARN MORE >

June

The port participates with the International Longshoremen’s Association and industry peers from Maine to Texas in an hour of reflection on the tragic death of George Floyd; during that hour all cargo operation cease. “We stand in solidarity with the Black community in the fight against a centuries-old pattern of violence and systemic racism,” Reinhart says. “There is a significant amount of work that lies ahead, but we cannot be deterred by that.”
LEARN MORE >
INVESTMENTS & INFASTRCUTURE
INVESTMENTS & INFASTRCUTURE
Closer look >

Building the port of tomorrow today.

Making big, better

At NIT, we have put the final touches on a $400 million expansion that has completely reshaped the terminal’s south-side container stack yard. The nearly two-and-a-half year effort replaced the straddle carrier operation with 60 new automated stacking cranes. Moreover, we added two ship-to-shore cranes to the south berth, giving us 10 Super Post Panamax cranes there capable of handling the biggest ships crisscrossing the Atlantic Ocean. With that project finished, we are now developing a plan for rebuilding the terminal’s Central Rail Yard. This project would enhance our double-stack rail service that reaches deep into the nation’s Heartland and meet the needs of a growing number cargo owners there.

Making deep, deeper, wider and safer

The expansion at NIT and VIG – and overall growth in cargo volume moving across the port – are closely tied to the project that will make Virginia home to the deepest port on the U.S. East Coast. The $350 million project will make the Norfolk Harbor 55 feet deep and the approaches into the harbor from the Chesapeake Bay and Atlantic Ocean 56 feet and 59 feet, respectively. A 55-foot-deep harbor will allow the biggest ships afloat – and their corresponding cargo loads – to call Virginia without restrictions on tide as some other ports experience. Additionally, the project clears the path for two-way traffic in the harbor of ultra-large container ships, thus improving the efficiency and safety of all vessel movement in the harbor. Virginia was the East Coast’s first port with 50-foot channel depths and will soon recapture the title of the East Coast’s deepest port.

Turning creativity into diversity

The port has four deep-water terminals: two container and two multi-use facilities. This level of diversity allows us to handle everything from household items to automobiles to refrigerated goods to military cargo. And while driving business, this unique set-up affords us the opportunity to be creative with how best to utilize our assets. In the winter, we leased a portion of PMT to Ørsted, a European green-energy firm that focuses on generating electricity from offshore wind turbines. In Ørsted’s search for a suitable staging platform for its East Coast offshore projects, PMT became the logical choice. The terminal’s size, deep-water berth, strategic Mid-Atlantic location, safe harbor, and proximity to open ocean will allow the company to support its multiple projects at once. Our long-term plan has always been to consolidate our container business at VIG and NIT and move PMT into the role of multi-use terminal. Lower container volumes brought about by the pandemic sped-up PMT’s evolution: we were able to reduce costs by ceasing container operations there. But with that move came the opportunity to use this resource to help out the cruise industry, which was in need of berth space for its idle vessels. Throughout the summer, three large cruise ships called PMT home. Outside of the cargo opportunities, PMT will be the starting point for a new industry in Virginia, one that will generate jobs, investment and long-term opportunities for Virginians.

We’re doing what we do well

This past year, we’ve faced a series of unimaginable challenges and while our recovery is underway, it has not come easily or quickly. These challenges forced us to be realistic about our near-term expectations while focusing on those things that fueled our success up to the beginning of the pandemic: valuing customers and cargo and communicating with port users to better understand their needs.
THE RESULTS
THE RESULTS

The Results: Success Beyond Normal Measures

Accurately measuring the results of a year turned upside-down by the COVID-19 pandemic is a significant challenge. Total cargo volume and revenue are our usual primary metrics, but to get a true picture of FY20, it is important to take into account our accomplishments outside of the numbers.
Closer look >

$512,909,152

Operating Revenues

$19,575,027

Operating Income

$41,788,451

Change in Net Position

CHAIRMAN's LETTER
CHAIRMAN's LETTER

The path ahead

At the close of any fiscal year it is useful to take a step back to assess what has been accomplished during the year just ended and how those accomplishments fit into the broader vision for The Port of Virginia.
As FY20 ended, the port was completing work on a very critical step in its long term plan. That work expanded and upgraded our two largest terminals, increasing our total container capacity by more than 46 percent. And, we began work on a major deepening and widening of the channel to allow continued handling of the largest ships coming to the U.S. East Coast.
‍
Additionally, the year brought the announcement by John F. Reinhart, who for the past six-plus years has led the port as its CEO that he’ll retire next March. His vision and strong leadership turned The Port of Virginia into one of the country’s premiere ports.
John G. Milliken, Chairman of the Board
As this report is published, a worldwide search is underway for the next chief executive who will build on the platform John created. But the challenges of 2021 will be very different than those of 2014. Uncertainties abound in a world beset with tariff and trade disputes and dealing with the sharp global economic downturn brought on by the COVID-19 pandemic. Our next leader will need to deal with these issues while understanding what international trade and business will look like in five-to-10 years and develop a long-term plan for the port to thrive in that new reality.
The new CEO will understand that the underlying mission of the port is to foster economic development and job creation. That means making Virginia the location of choice for those individuals and companies that utilize maritime facilities as a part of their ongoing businesses, regardless of whether they are cargo owners, supply chain and logistics firms, transport companies, or storage and distribution facilities. If you are in one of those businesses, part of our job is to make it in your economic interest to locate in the Commonwealth. So, the direction to the new person arriving in early 2021 is to understand the new marketplace and to develop a plan that will succeed in that marketplace by bringing new business to the port and jobs to Virginia. The new CEO will quickly learn that this port operates best when it works with and through its partners in the Virginia Maritime Association, International Longshoremen’s Association, business community, elected leaders, and key port customers and users.
The year just ended was a good one: we safely navigated a once-in-a-lifetime pandemic, expanded our capabilities, remained focused, and positioned ourselves for whatever the future may bring. Here’s to the future of this world-class port.
John G. Milliken, Chairman of the Board
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