Volume 77, No. 3March 2013

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

93rd Annual Maritime Banquet

International Trade Symposium

Virginia Maritime Association’s (VMA) 93rd Annual Maritime Banquet, the premier event for Virginia’s maritime industry, with attendance reaching 1,000

individuals with a stake in the activities of the Port, will be held on May 9, 2013, at the Norfolk Waterside Marriott Hotel. Visit www.VAMaritime.com to register for the Banquet, International Trade Symposium, and the Maritime Golf Outing: VMA’s annual sell out events.

This year, in cooperation with the Hampton Roads Global Commerce Club and the Propeller Club, a Maritime Mixer aboard the Spirit of Norfolk has been added the Wednesday evening preceding the Symposium and Banquet.

Mr. Mark D. Schweitzer, Managing Director of Intermodal and International Freight of Archer Daniels Midland Company

(ADM) will be the keynote speaker. ADM is one of the world’s leading agricultural processors; producing the food ingredients, animal feeds and feed ingredients, biofuels and other products that manufacturers around the world use to provide wholesome food and a better life to millions of people around the globe. As a major customer of bulk and container ports across the globe, Mr. Schweitzer is in a unique position to offer his perspective on Virginia’s ports today and in the future.

GUEST SPEAKER: Mark D. Schweitzer,

Managing Director of Intermodal and International Freight, Archer Daniels Midland Company

“The New Port of Virginia – Local Developments & Global Opportunities” is the theme of the Virginia Maritime Association’s (VMA) 10th annual International Trade Symposium. VMA and American Shipper have prepared a program that will explore the following topics of importance to businesses positioning themselves for success in an always changing environment for shippers and logistics service providers.

“The New Port of Virginia” - The board chairman and the interim executive director of the Virginia Port Authority will discuss the changes underway at the 6th largest container port in the nation and what these changes will mean for the operations and strategic direction of the port.

“Are You Ready for This? - Port Disruption Planning & Recovery” - From super storm Sandy to potential labor actions, the supply chain has been dealt many challenges recently. The panel will discuss real world examples of the effects of these events to those in the transportation network and winning strategies for managing future disruptions.

“Competing in a World of Corruption” - The panel will discuss the latest trends in anti-corruption compliance and enforcement.

Speakers will address the Foreign Corrupt Practices Act, UK Bribery Act, and other anti-corruption laws; and how shippers and their service providers can remain competitive internationally while mitigating the risks of non-compliance.

“Container Trade Flows & Trade Lane Changes” – The presenter will discuss economic booms and busts of U.S. trading partners, the resulting new sourcing and demands patterns, and implications for international trade over East Coast ports.

“The Big Ship Paradigm-Be Careful What You Wish For” - The mega ships are coming but only a few ports will be ready to receive them. But what’s the rest of the story when ships will discharge and load three times the number of containers they do today? The panel will address questions related to how marine terminals, Customs, truckers, beneficial cargo owners, and others in the supply chain will maintain cargo velocity.

Visit the conference Web site (www.VAMaritime.com/page/2013 symposium) to register and for information about the full program. Seating is limited.

Mark D. Schweitzer

2

VIRGINIA MARITIMEASSOCIATION

OFFICERSCHAIRMAN OF THE BOARD

Thomas W. Godfrey, Jr.

PRESIDENTShirley G. Roebuck

VICE PRESIDENTSJoseph A. Dorto

Raymond A. NewlonJeffery S. Heller

EXECUTIVE VICE PRESIDENT & SECRETARYArthur W. Moye, Jr.

TREASURERJudy M. Barrett

ASSISTANT TREASURERMichael W. Coleman

STAFFVICE PRESIDENT

David C. White

ACCOUNTING MANAGER/CONTROLLERSam Davis

EXECUTIVE ASSISTANTJanice S. Klasek

EVENTS COORDINATORJennifer N. Parham

SHIPDESK CLERKLynne H. Stonum

MEMBERSHIP/PUBLICATIONCOORDINATOR & EDITOR

Susan N. Wisniewski

ANCHOR MEMBERSBranscome, Inc.CSX Intermodal

Maersk Line LimitedMcAllister Towing of Virginia

TowneBankVirginia International Terminals

Virginia Pilot AssociationVirginia Port Authority

MARITIME BULLETIN is published12 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 CommunicationExcellence & Honorable

Mention Award

Unilever Invests $96 Million in Lipton Tea Suffolk Plant;

Port Key to Decision

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Be prepared for those April showers. . .

identitymarketing &promotional, llc

Leave the Promotional to Us.757.777.5323 • info@idmktgpromo.com

On March 11, Unilever, one of the world’s largest consumer goods companies announced they will invest $96.2 million to expand and upgrade its Lipton Tea manufacturing plant in Suffolk.

The Virginia Economic Development Partnership worked with the City of Suffolk and the Hampton Roads Economic Development Alliance to secure this project for Virginia. Governor Bob McDonnell approved a $1 million performance-based grant from the Virginia Investment Partnership program, an incentive available to existing Virginia companies.

Virginia successfully competed against Kentucky, North Carolina and South Carolina for this project. Virginia Secretary of Commerce and Trade, Jim Cheng, stated the Suffolk plant’s proximity to the Port of Virginia influenced the location decision for this investment. The company imports loose tea through the port from various countries.

“An investment of this caliber secures the future viability of Unilever’s Lipton plant in Suffolk, which has been in operation since 1955 and produces nearly all of the Lipton tea bags sold throughout North America,” McDonnell said. “As the largest tea production facility in the U.S., this operation is crucial to the prosperity of the company and employs nearly 300 in Hampton Roads. This expansion and machinery upgrade ensures the continued success of the Lipton plant for years to come, and is a major win for Virginia and Suffolk.”

3

MARITIME NEWS

Craney Island Rises Above Water-Level

Working Together to Keep Our Channels Safe

On Thursday, March 14, 2013, the Virginia Pilot Association detected shoaling in the shipping channel that connects Virginia’s ports to the open ocean, Thimble Shoal Channel,

and alerted the U.S. Army Corps of Engineers and U.S. Coast Guard. Within hours the Corps had mobilized a survey team and determined there was an 8-foot shoal near the middle of the channel. However, there remained 500 feet on the inbound side of the channel open for safe passage on a one way transit basis.

The U.S. Coast Guard Captain of the Port restricted the channel to one-way traffic in the immediate vicinity of the shoaling for vessels drawing over 40 feet, which minimized the impact to deep draft commercial and U.S. Navy ships.

The Corps canvassed the maritime community for a dredge to clear the channel. The hopper dredge B. E. Lindholm from Weeks Marine Inc., which was operating off the coast for the Virginia Beach and Sandbridge hurricane protection beach renourishment projects, was dispatched to remove the hazard.

Weeks Marine mobilized their dredge and it’s crew completed dredging operations at approximately 4:00p.m. Sunday, March 17. By 5:30p.m., the Corps’ vessel Adams II had conducted and released the results of a survey showing the portion of the Federal navigation channel that contained the critical shoal was returned to project depth of 50 feet below MLLW (Mean Lower Low Water). The Coast Guard immediately opened the channel for normal traffic.

“The Virginia Maritime Association commends the efforts of the Virginia Pilots Association, U.S. Army Corps of Engineers, U.S. Coast Guard, Weeks Marine and everyone else that responded and came together to restore the channel to 50-feet so expeditiously. It is attributable to the unique level of partnership that exists between Virginia’s maritime community and the federal agencies that support our marine transportation system. Unrestricted navigation is vital to the ports of Virginia,” said Art Moye, executive vice president of the Virginia Maritime Association.

In 2010 dredging contractors began pumping tens-of-thousands of cubic yards of sand taken from the Atlantic Channel maintenance dredging project and “repurposing” the material in construction of the dikes needed for the development

of Craney Island Marine Terminal.

In early February the two southern-most dike structures began poking through the Elizabeth River’s low-tide line. “This is an important milestone as we can now truly see progress; it was hard to get an image of what we were talking about when everything was still under water,” stated Rodney W. Oliver, Interim Executive Director of the Virginia Port Authority (VPA). “As this project has now become something tangible, so too has the reality of The Port of Virginia becoming the East Coast’s cargo gateway. When Craney Island is finished, this port will have more capacity than any of its peers on this coast.”

When the dike construction is complete, in mid-to-late March, the dikes will be 200 feet long, 500 feet wide and 10 feet tall. From above it will look like a rectangle (“cell”) . After the dike construction is complete, the focus of work will shift to filling the rectangle with more repurposed dredging material. It is anticipated that filling it will take between six and eight years. The completed dike-and-fill phase will result in a 600-acre foundation for Craney Island Marine Terminal.

PORT STATISTICS

4

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5

NE WS BRIEFS & ANNOUNCEMENTS

Port Emissions Decrease Even As Cargo Volumes Grow

Agriculture Exports Reach All-Time High in Virginia

During Governor McDonnell’s keynote remarks at the fifth annual Governor’s Conference on Agricultural Trade, in Richmond, he announced Agricultural exports from Virginia reached a new all-time high of $2.61 billion in 2012, a12% increase over the 2011 record high.

McDonnell attributes these record highs on “the decision in 2010 to fully integrate agriculture and forestry, Virginia’s two largest industries, into our administration’s economic development and jobs creation strategic planning…. Agricultural exports, which generate approximately $1.40 in-state for every $1 shipped out, have reached all-time highs in two of the past three years, producing more revenue for our producers and everyone along the business chain from farms to our ports, and creating more good jobs all across Virginia.”

Multiple factors including quality producers, agribusinesses, diversified exporters and an excellent sea, air, and land port system enhance Virginia’s strong position in the global marketplace. With trade offices established in key global regions and new ones opening this year, McDonnell expects the Virginia agricultural exports to continue growing.

Virginia’s top export markets for 2012 were China ($638 million), Canada ($205 million), and Morocco ($139 million). Approximately 15% of Virginia’s agricultural export trade in 2012 was with China. Exports to India grew from $5 million to $28 million. Mexico grew by more than $20 million, with new business in poultry and pork. Cuba reached an all-time high of $66 million; Virginia is now the second largest U.S. agricultural exporter to Cuba.

The export commodity showing the largest percentage growth was wood pellets, which increased from $4 million in 2011 to approximately $35 million in 2012. Soybeans more than doubled between 2011 and 2012, from $327 million to $734 million. Peanut exports grew from approximately $6.5 million to about $17 million.

For many years the Virginia Port Authority (VPA) has taken a leading role to reduce the environmental impacts of port operations. Many maritime companies operating in

the port have followed suit and participated in VPA sponsored initiatives and programs. Measures taken have included modernizing equipment, utilizing low-emissions diesel fuel, and incentivizing the use of clean diesel and fuel-saving technologies to reduce the amount of air pollution emitted by terminal and port related operations.

Since 2004 the VPA has regularly conducted an inventory to measure pollutants and the results of efforts to reduce emissions. The results of the 2011 inventory report emissions reductions for all criteria pollutants among all modes transporting containerized cargo through Hampton Roads show:

Since 2004, criteria pollutants from VPA and VIT’s marine terminals alone have declined while cargo volume increased by 28 percent during 2004-2011.

CO -85% SO2 -99%

NOx -85% CO2 -74%

PM -88%

“It is important to put this in context: Since 2004, pollutants from VPA and VIT owned, operated, and maintained cargo handling equipment have declined dramatically – in some cases almost totally eliminated, depending on the pollutant -- while total cargo volume increased by 28 percent over the same period (2004-2011),” said Rodney W. Oliver, the VPA’s interim executive director.

Container Volume +18.4%

Emisisons of oxides of nitrogen -23%(NOx)

Particulate Matter -50% (PM 2.5 & 10)

Sulfur Dioxide (SO2) -60%

Carbon Monoxide (CO) -33%

Carbon Dioxide -4.3% (2008-2011)

VMA HIGHLIGHTS

6

The Association In Action

Committee UpdateINTERNATIONAL TRADE SYMPOSIUM COMMITTEE (Feb 5 & 19): The International Trade Symposium will be held May 9. The committee was focused on developing the panels and keynote topics to be addressed. Developing a promotional strategy was another priority of the committee. “The New Port of Virginia – Local Developments & Global Opportunities” is the theme for the 10th annual symposium.

SHIPPERS COMMITTEE (Feb 6): This committee of port customers received updates from the VPA & VIT the port’s 2012 performance, steamship line service changes and projects to improve operational efficiencies and velocity. They received an update and discussed the proposals to operate the state-owned terminals, port related legislation before the General Assembly, the status of labor negotiations with the ILA, and changes taking place with the chassis pools.

TOWING & BARGE OPERATORS COMMITTEE (Feb 13): The committee discussed changes taking place for the dockside exams program for towing vessels, the temporary changes for openings while work is in the final stages for the lift span at the new Gilmerton Bridge, changes in the Coast Guard’s random drug

testing requirements, recent findings related to sleep and crewing requirements. AWARDS COMMITTEE (Feb 13): The committee considered candidates for recommendation to the Board of Directors to receive the Distinguished Service Award and/or the Port Champion Award. The Distinguished Service Award is bestowed upon an individual within the maritime community with a record of accomplishment and leadership, while the Port Champion Award honors an individual that does not work directly within the maritime industry but whose contributions have done much to benefit the industry.

TERMINAL OPERATORS COMMITTEE (Feb 22): The committee received an update from the Coast Guard on a waterway closure at the Gilmerton Bridge and an overview for several upcoming bridge projects. An update was provided by the U.S. Army Corps of Engineers, and a discussion ensued, about recent developments and next steps for the Southern Branch Deepening Project. The committee received and discussed several ideas for the next steps in developing a web-based Commercial Marine Facilities Guide. Other updates included the status of the proposals to operate the state-owned marine terminals and the labor negotiations with the ILA.

Each February the Association focuses on monitoring the activities of the General Assembly session and spending time in Richmond advocating positions for or against legislation

that impacts Virginia’s maritime industry. The 2013 regular session concluded on Saturday, Feb. 23. The General Assembly passed a comprehensive long-term transportation funding and reform package for Virginia, which will raise $3.5 billion in new revenue for state road needs over five years. The General Assembly took three actions related to privatization of the operations at state-owned terminals: 1) Legislation was passed that will institute reforms at VPA/VIT designed to eliminate redundancy and reduce expenses. This legislation also prevents the Commonwealth from accepting unsolicited proposals under the PPTA for VPA facilities and operations while preserving its ability to partner with the private sector. 2) The Joint Legislative Audit and Review Committee (JLARC) is directed to study the port’s competitiveness, efficiency and governance structure and report its findings to the General Assembly. 3) Lawmakers amended the state budget to include language prohibiting any sale or lease of the Port of Virginia until a comprehensive study of port operations has been completed, and any such sale or lease has been subsequently approved by the General Assembly.

The VMA encouraged attendance at the February 4 public hearing held by the VPA Board of Commissioners to provide the public an opportunity to offer input during the evaluation process of the proposals submitted to operate the state-owned terminals. Also related to the subject of privatization of the state-owned terminals,

the VMA met with the editorial writers of the Virginian-Pilot, Daily Press, Richmond Times-Dispatch, and Roanoke Times to educate them on this subject and the implications for the state and their communities.

As negotiations continued between the International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) for a new master contract for port labor the VMA continued to monitor the labor negotiations and provide its membership with appropriate updates.

The VMA participated in a Feb. 21 meeting hosted by the U.S. Coast Guard Captain of the Port to discuss several topics in support of a safe, secure and efficient marine transportation system. Some of the topics included lessons learned from Hurricane Sandy, the Gilmerton Bridge Replacement Project, and a recent near miss in the navigation channels. There were also discussions related to upcoming waterway infrastructure projects and offshore wind energy.

As part of the Midtown Tunnel Project the contractor, SKW, plans to float the new tunnel sections into the Port of Hampton Roads and moor them until they are ready to be sunk into place and connected to form the tunnel. The VMA participated in a Feb. 27 meeting with SKW, the responsible permitting agencies, and others to discuss proposed and alternative mooring locations that would not interfere with commercial navigation.

MEMBERSHIP NE WS

7

Currituck County Economic Development

Government: City, State, Federal153 Courthouse Road, Suite 207

Currituck, NC 27929Mr. Peter F. Bishop,

Economic Development DirectorPhone: 252-232-6015 Fax: 252-232-3551

e-mail: pbishop@thinkcurrituck.comwww.thinkcurrituck.com

Domestic Fuels & LubesMarine Fuel & Lubricants

400 Freeman AvenueChespeake, VA 23324Mr. Ted Broach, Sales

Phone: 545-5100 Fax: 321-4252e-mail: tbroach@domesticfuels.com

Norfolk Sister City AssociationNon-Profit

PO Box 3074 (23514)Ms. Ashley K. McLeod, Executive Director

Phone: 627-0530e-mail: Ashley@norfolksistercities.org

www.norfolksistercities.org

PCI of Virginia, LLCTerminal Operators

5000 Deepwater Terminal RoadRichmond, VA 23234

Phone: 804-726-3093 Fax 804-726-3094Mr. James W. Bailey, II, Terminal Manager

jbailey@pciofvirginia.comwww.portcontractors.com

NEW MEMBERS

VMAMEMBER BENEFITS

Endurance IT ServicesDiscount pricing on

computer network services.

Contact Blake White 216-3671

OptimaHealthCompetitive Rates and Value-Added Benefits for health insurance.

Contact Jim Blassingham 533-4655

E-DentalGroup Level Dental Benefits

offered on an individual basis.

Contact Ross Winfield 340-9777 ext. 355

Retirement NeedsRetirement plan evaluations

for business owners and trustees.

Contact Jim Blassingham 533-4655

Discounted Room Rates for Members and Guests

Visit VAMaritime.com for discount information.

VMA Member Companies Do Well In “Best Places to Work in Virginia”

Each year Virginia Business recognizes the state’s Best Places to Work and publishes their honorees in the February edition of their magazine. Winners are selected in three categories – large, medium and small firms.

Several VMA member companies performed well in “Best Places to Work in Virginia.” We congratulate the following that placed among the highest in their respective categories.

Endurance IT Services ranked #4 among Small Employers.

Vandeventer Black LLP ranked #5 among Midsize Employers.

WR Systems ranked #2 among Large Employers.

A survey and award program identifies, recognizes, and honors the best places of employment in Virginia, benefiting the state’s economy, its work force, and businesses. Winners are chosen following a two-part survey process, consisting of an evaluation of the organization’s policies, philosophies, and demographics and an employee survey to measure the overall employee experience.

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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.com

vma@portofhamptonroads.com

Club Contacts

April Club Events CalendarMon Tues Wed Thur Fri Sat/Sun

1 2 3 4 5 6/7

8 9 10 11 12 13/14

15 16 17 18 19 20/21

22 23 24 25 26 27/28

29 30

1 2 3 4/5

Customs 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: Taylor Miller • 440-7214www.PropellerClubNorfolk.org

Tidewater Motor Truck AssociationCONTACT: Frank Borum • 494-0276

Ed O’Callaghan • 450-8484 Troy Tibbetts • 544-0693

Virginia Ship Repair AssociationCONTACT: Sylvia Bell • 233-7034

www.VirginiaShipRepair.org

H. R. Traffic Club5:30 Holiday Inn,

Greenwich

Propeller Club4:00 Spring Oyster Roast

(NIT Crumbly)

OWIT12:00 Williams Mullen’s Dominion Tower, 17th Fl.

Ship Repair Assn. 12:00 Noon

Renaissance Hotel, Portsmouth

Cust. Brokers & Int’l Freight Forwarders

12:00 Town Point Club

OWIT12:00 Williams Mullen’sDomion Tower, 17th Fl.

May Club Events Calendar

Tidewater Motor Truck Assn.

5:30 Elizabeth Manor CC

Global Commerce Council11:30 Town Point Club

ODU StudentPropeller Club

12:00 Spring Golf Outing(Ocean View GC)