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Transcript of Maritime, Logistics, Distribution And Warehousing in Virginia's Hampton Roads
3 rd Quarter 2009 Maritime, Logistics, Warehousing and
Distribution
General Overview Source: HREDA research
2 nd largest Metropolitan Area between Washington D.C. and
Atlanta, GA
Centrally located along U.S. East Coast
Civilian labor force of over 800,000
Over 96,000 students from 8 universities and 4 community
colleges
75% of the U.S. population is within 750 miles or 1,200
kilometers of Hampton Roads
Unobstructed ice free harbor with 50 ft deep channels located
18 miles from the open ocean
Weekly First-in service from Asia providing 22-day transit
between vessels last of port of call in Asia and Virginia
Population Source: U.S. Census Bureau Total Population: 1.6
million James City County 62,414 Williamsburg 12,481 Gloucester
County 38,656 York County 61,027 Newport News 179,614 Poquoson
11,829 Hampton 145,494 Southampton County 18,480 Isle of Wight
County 35,472 Suffolk 82,302 Chesapeake 220,111 Virginia Beach
433,746 Portsmouth 100,577 Norfolk 234,220 Franklin 8,877
Shipbuilding & Ship Repair Above: A 700-ton island is being
placed on the flight deck of the George H.W. Bushthe nations newest
and most advanced nuclear-powered aircraft carrierat Northrop
Grumman Shipyard
Additional Shipbuilders & Ship Repair Companies
Associated Naval Architects, Inc.
Berkeley Machine Works & Foundry Company, Inc.
Colonnas Shipyard, Inc.
Earl Industries, LLC
Lyon Shipyard, Inc.
Marine Hydraulics International, Inc.
Metro Machine Corporation
Norfolk Naval Shipyard
Sources: Port of Hampton Roads Annual 2007; Harvard Business
School, Cluster Mapping Project, Institute for Strategy and
Competitiveness, 2002; Northrop Grumman Website According to a
study by the Harvard Business School, the Virginia
Beach-Norfolk-Newport News MSA ranked #1 in shipbuilding and ship
repair in the United States and is home to over 22% of the nations
shipbuilding employees Pictured Below: Norfolk Shipbuilding and
Dry-dock Major Shipbuilders Northrop Grumman Newport News 550-acre
facility 155,000 sq. ft. foundry, one of the largest in the U.S.
Possesses the largest dry-dock in the Western Hemisphere; measuring
2,173 ft. long and 250 ft. wide BAE Systems Norfolk Ship Repair One
of the largest ship repair facilities on the East Coast Features
one of the worlds largest and most modern floating steel dry-docks
Davis Boat Works 250 ton Marine Travelift, one of the few in
commercial operation in the world
Located just 18 miles from the open ocean, the Port of Virginia
in Hampton Roads is home to the best natural deepwater harbor on
the East Coast with its unobstructed, ice free harbor and 50 feet
deep channels The Port of Virginia handled over 2.0 million TEUs in
2008, a 2% decrease from calendar year 2007. Source: The Virginia
Port Authority; 2007 Hampton Roads Maritime and International Trade
Guide, Craney Island Marine Terminal Economic Impact Study, Moffat
& Nichol, 2004 The Port of Virginia
Additional Terminals:
APM Terminals Virginia
Elizabeth River Terminal
Lamberts Point Docks
Kinder Morgan Terminals
Currently, there is 26.5 million sq. ft. of distribution space in
Hampton Roads. With the expansion projects underway or proposed by
the Port, an additional 20 to 60 million sq. ft. will be needed to
handle cargo by 2030.
The Port of Virginia is served by 20 steamship lines offering
weekly service to Europe and Asia Sources: The Virginia Maritimer,
May/June 2006, July/August 2006; Port of Hampton Roads Annual 2007;
Company Websites An estimated 70% of the Virginia Port Authoritys
business is now secured with 10-year contracts, including shipping
lines such as The Grand Alliance, CKY, China Shipping, Turkon, MSC,
ACL and most recently CMA CGM and Emirates Shipping Line Shipping
Lines Sampling of Hampton Roads shipping companies: * CMA CGM, ZIM
Integrated Shipping Services and MAERSK Line Limited are
headquartered in Hampton Roads
Sources: Virginia Port Authority; MSAonline.com; Maersk
Shipping; 2006 Hampton Roads Maritime and International Trade Guide
APM Terminals has opened Phase I of its $450 million, 575-acre
facility in Portsmouth. This is the USAs first privately developed
container terminal and is one of the largest and most advanced
container facilities on the North American East Coast. Norfolk
International Terminals (NIT)
Phase I
3205 ft. berth
55 ft. water depth
1 million TEU capacity
8 cranes
30 RMGs
6 on-dock rail tracks
Completed: September 2007
Final Build-Out
4,000 ft. berth
2.16 million TEU capacity
10 cranes
60 RMGs
12 on-dock rail tracks
Anticipated completion: 2017
Phase II, Stage 2 of the Backlands Renovation is currently
underway (25 acres)
North Yard Expansion and North Wharf Extension includes:
Extending the north wharf 800 ft.
Adding a 2 nd ship berth
Renovating and improving 30 acres of container yard
Purchasing container handling equipment
Constructing a new truck interchange
The project will increase the capacity of NIT North by 34 percent
APM Terminals Virginia Current Port Expansion Projects APM
Terminals facility welcomes 3 rd party business
Craney Island Expansion The Port of Virginias 4 th Terminal -
Upon completion, the fourth terminal will have the capacity of
approximately 2.5 million TEUs and an on-terminal intermodal rail
loading facility
Phase I: Proposed completion 2019
300 acres
2 berths
6 cranes
Phase II: Slated for completion in 2033
600 acre facility
8 berths
15 Suez-class container cranes
Source: Virginia Port Authority The current 50 ft. dredging project
of the shipping channels is nearing completion and portions of the
55 ft. dredging project (including the 60 ft. Atlantic Ocean
channel) have been authorized. Future Expansion of the Port Road
and Rail Connection to Route 164 CIDMMA Proposed Third
Crossing
Half Moone Cruise and Celebration Center Completed in March
2007 with 80,000 sq. ft. of passenger and event space, the terminal
is the first in the U.S. to fully comply with current Homeland
Security standards. Carnival Cruise Lines and Royal Caribbean make
the new Half Moone Cruise and Celebration Center a home port
Sources: Virginia Business Magazine; Half Moone Cruise and
Celebration Center Website; ShipsandCruises.com Passenger Cruise
Industry Half Moone Cruise Terminal
Maritime and Transportation Center
Recently announced the launch of the Maritime and
Transportation Center in conjunction with 30 partners that cross
business, government, industry, military and education
Over the next year the Maritime and Transportation Center
will:
Identify the most pressing workforce development needs in
maritime and transportation industries
Identify current education and training programs to aid
maritime and transportation workforce needs
Develop identified educational programs
Apprentice School
Proprietary shipbuilding school for individuals interested in
a
career with Northrop Grumman
Curriculum is divided into two sections:
World Class Shipbuilder
Trade Related Education
Qualified apprentices may elect to pursue studies in advanced
programs in design, production planning, and advanced shipyard
operations
Over 800 apprentices enrolled
Old Dominion University Sources: Old Dominion University, Northrop
Grumman, TCC Educational Resources The Maritime Institute Provides
specialization for students in the maritime field, which includes
shipping, ports and logistics management
Graduate Level
Concentration in maritime and port management is integrated
into the schools MBA and MPA programs
Students learn the roles of terminals and ports, the business
of shipping, commercial processes, port planning and design
processes and logistics
Electives are also available through the Master of Arts in
Economics curriculum
Undergraduate Level
Maritime and Supply Chain Management Undergraduate Major
ODU is the 2 nd university in the country to offer at the
undergraduate level
Specialized coursework including international shipping, supply
chain and logistics, shipping management and port management along
with similar elective options
Sources: Port of Hampton Roads Annual 2006; Company Websites
Logistics, Distribution And Warehousing Major Warehouse
Providers
Given the combination of strategic location, superior
transportation options and plentiful real estate, Hampton Roads has
become a preferred location for major distributors. Sources:
Company Websites, HREDA Research, The Virginian Pilot, Co-Star Real
Estate The above table is just a sampling of corporations with
distribution centers in Hampton Roads and is by no means a complete
list Major Corporate Distribution Centers Logistics, Distribution
And Warehousing Distributors (250+ Employees) Employment Facility
Size (sq. ft.) Lillian Vernon 200 300,000 QVC (Suffolk) 1,000
1,000,000 Ferguson Enterprises 800 140,000 (HQ) AAFES Dan Daniels
800 1,295,000 SYSCO Food Services 490 300,000 Cost Plus 225
1,000,000 Dollar Tree 650 114,000 Target Corp. 300 1,788,000 US
Food Service 300 202,000 Chesapeake-Noland Company 1,300 95,000
Wal-Mart 600 2,054,000
Hampton Roads is linked to domestic markets by one of the
country's most modern interstate and state highway systems.
Interstate 64, a major east-west route, encircles the metropolitan
area and connects Hampton Roads to I-95a principal north-south
route. Additionally, U.S. Routes 58 and 460 connect Hampton Roads
to I-95 and I-85. To the East, the Chesapeake Bay Bridge Tunnel
saves 90 miles to the New York/New Jersey corridor and gives
coastal highway traffic direct access to Hampton Roads. Rates are
an estimate based on a full truckload with 52 stackable 4 ft. x 4
ft. pallets with total weight of 10,000 lbs. Sources: Virginia
Department of Transportation; Virginia Port Authority, January
2008; Travelnotes.org; FreightQuote.com Trucking Hampton Roads
Interstate System
Hampton Roads is served primarily by the rail transportation
giants Norfolk Southern and CSX. The Port of Hampton Roads creates
a perfect entry location for these railways to distribute
throughout the East Coast and the Midwest. Efficient connections
with other rail systems and motor carriers provide easy and
affordable access to the rest of the U.S.
CSX Corporation
Offers a variety of rail, container-shipping, intermodal,
trucking, barge and contract logistics management services
Operates over 22,000 miles of track in 23 states as well as the
District of Columbia and two Canadian provinces
VA recently approved plans to help fund improvements that will
expedite rail travel between Portsmouth and Atlanta and the
Southeast by:
Providing double-stack freight service over a 560-mile
market
Norfolk Southern Railway
Headquartered in Hampton Roads
Operates more than 21,200 miles of track in 22 states primarily
in the Southeast and Midwest U.S., as well as Ontario, Canada
VA recently allocated $22.3 million to help fund improvements
to NSs Heartland Corridor which will ultimately expedite
distribution to the Midwest by:
Raising 28 railroad tunnels between Hampton Roads and Ohio to
allow double stacked trains
Shaving 233 miles off of NSs main route between Norfolk and
Chicago, cutting off 1.5 days of travel
Sources: Virginia Department of Rail and Public Transportation;
Norfolk Southern; CSX; The Virginian Pilot; 2008 Hampton Roads
Statistical Digest Hours include positioning and handling Major
Rail
Sources: Norfolk International Airport, August, 2008; Newport
News Williamsburg Airport, 2008; 2006 Hampton Roads Maritime &
International Trade Guide Hampton Roads is serviced by the Norfolk
International Airport, and the Newport News/Williamsburg
International Airport. Both airports are currently undergoing
extensive expansion projects.
Handled over 64 million pounds (29 million kilos) of air cargo
during 2008
Houses two ultra-modern Air Cargo Terminals
Current expansion projects will boost the complex from 88,000
sq. ft. to 120,000 sq. ft.
Provides speedy clearance by the Airport Customs Broker through
the use of the Automated Broker Interface (ABI) and the Automated
Commercial System of U.S. Customs
Current or recently completed improvement projects
include:
New general aviation terminal
New air traffic control tower
New hangars, extended ramps and runways
Over 73,440 pounds (33,312 kilos) of air cargo passed through
the airport in 2008
As a Fortune 500 company with a global market, Norfolk Southern
Corporation is proud to call Hampton Roads home. A business
friendly region, Hampton Roads is populated by a talented, diverse
workforce and it offers an outstanding quality of life. The regions
educational institutions are among the finest in the Commonwealth.
From a world-class symphony and museum to scores of other artistic
and entertainment values, its cultural abundance provides an array
of options for our people outside of work. Wick Moorman CEO,
Norfolk Southern Corporation "What better place than Hampton Roads
stands out as a site for this relocation? Hampton Roads has the
largest concentration of skilled and highly competent marine
specialists on the East Coast, and is ideally situated for a parts
distribution center for America's service needs. Jack Finnegan
President, MacGREGOR (USA), MacGREGOR Group Southeast Virginia is
seen as a strategic location for NYK Logistics major East Coast
presence. Centrally located with excellent port facilities and
infrastructure, our expansion here further enables us to provide a
full complement of logistics services for our clients. That,
combined with a talented workforce and a business-friendly
community, made this an easy choice. Lane Turner President,
Warehouse Division NYK Logistics Inc Hampton Roads Logistics
Business Community We are absolutely thrilled with the people from
the community we can call team members. I cant say enough about
their work ethic. It has always been easy to recruit talented
people here. Mark Irvin General Manager, Suffolk Location Target
Import Warehouse
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