Volume 70, No 2, February, 2006

News and Information from the Port of Hampton Roads MARITIME BULLETIN

Published by the Hampton Roads Maritime Association, Norfolk, Virginiaemail: hrma@portofhamptonroads.com -- web site: www.portofhamptonroads.com

This months Maritime Bulletin is Sponsored by:

State of the Port AddressMaritime Issues Council

Joseph A. Dorto,General Manager of VirginiaInternational Terminals (VIT),delivered his annual “State ofthe Port” address at theHampton Roads ForeignCommerce Club luncheon onJanuary 25, 2006.

Dorto’s address thisyear centered on how havinga natural deep water harborproves to be advantageous fora port, but it doesn’t

guarantee the success of a port. Port successderives from industry leaders working togetherto enhance port operations through innovationand creative problem solving skills.

Prior to the Port’s unification, competitionamong the three terminals (Norfolk InternationalTerminals, Newport News Marine Terminal, andPortsmouth Marine Terminal) negatively impactedthe Port. Forward thinking leaders saw how thecompetition was a problem for the Port, and in1982 unified the Port, placing terminal operationsunder one umbrella, Virginia InternationalTerminals.

The Port is always preparing for the future.Our industry leaders have come together overthe course of time to solve various Port problems.Recent programs generated through combinedefforts of the port community were the Port WideChassis Pool and the Empty Container Depots.

The Port Wide Chassis Pool improves efficiencyfor truck drivers as well as shippers. Driverscan now utilize any chassis that is available andthey know all the safety requirements for thatchassis are met. The Empty Container Depotsare another example of improving port operations.The terminal now has more space to unload full

containers, increasing the amount of containersthe Port can handle.

In 2005, the Port handled 1.9 million TEU’s,a record high for the Port. Over the past fewyears, containers passing through the Port haveincreased approximately 10% each year. OurPort is poised to be the number one containerport on the East Coast. The Port of Virginia hasall the elements required to be number one,according to a presentation given by J.J. Keever,Deputy Executive Director for the Virginia PortAuthority, at an HRMA Maritime Briefing.

VIT signed ten-year contracts with largeshipping companies. No other port has achievedthat feat. These long term contracts indicatethe world beyond our waters knows our Port ispreparing for the future and they want to be apart of it.

A harbor’s natural deep water, the intermodalinfrastructure, terminal expansion capabilitiesand a cargo base are the tangible elements fora port’s success. Advancing port operationsthrough leadership, innovation and teamworkwill put the Port of Virginia above the rest.

Joseph A. Dorto,General Manager, VIT

Elements which make a port successfulgraph provided by VPA

Cargo BaseCargo Base

Terminal Terminal ExpansionExpansion

IntermodalIntermodalInfrastructureInfrastructure

Deeper Deeper WaterWater

VIRGINIAVIRGINIASavannahSavannahCharlestonCharlestonN. CarolinaN. CarolinaNew YorkNew York

Cargo BaseCargo Base

Terminal Terminal ExpansionExpansion

IntermodalIntermodalInfrastructureInfrastructure

Deeper Deeper WaterWater

VIRGINIAVIRGINIASavannahSavannahCharlestonCharlestonN. CarolinaN. CarolinaNew YorkNew York

2

The Maritime Issues Council (MIC) is HRMA’s PoliticalAction Committee that was formed in the year 2000 toadvance issues of concern for the growth and developmentof the maritime industry in Virginia. The MIC enablesHRMA to work in Richmond with the Virginia GeneralAssembly on behalf of the maritime industry to advancethe interests of the Port of Hampton Roads.

Every year the MIC hosts a dinner in Richmond for theGeneral Assembly members from Hampton Roads. Thedinner provides an opportunity for HRMA’s leadership,joined by representatives from the Hampton RoadsShipping Association and MIC contributors, to meet andspeak with our elected officials about the issues importantto the Port.

This year’s dinner was attended by most of HamptonRoads’ legislators, as well as Lt. Governor Bill Bolling,Attorney General Bob McDonnell, Secretary ofTransportation Pierce Homer, and Deputy Secretary ofTransportation Scott Kasperowicz. Although unable toattend in person, Governor Tim Kaine had a letter deliveredand read at the dinner which recognized the importanceof the Port to Virginia, the role the HRMA plays to advancethe Port, and expressed his support for development ofCraney Island Marine Terminal, the Route 164 railrelocation, the Heartland Corridor project, and fundingthe transportation infrastructure needs. (Please find acopy of the Governor’s letter contained in this issue of theMaritime Bulletin.)

Every year the MIC addresses legislative issues thatdirectly affect businesses tied to the Port. We have beensuccessful when it comes to reducing the burden to theindustry in regard to taxes and fees, obtaining fundingfor Port improvement projects, and monitoring stategovernance issues. The MIC is an advocate for the maritimeindustry’s interests regarding transportationinfrastructure, port security, and the competitive positionof the Port. Doubtless, new issues will continue to presentthemselves and the MIC will play an increasingly importantrole in the future of the Port.

The MIC relies on contributions from HRMA’s membercompanies. If you have any questions about the MIC,please call Art Moye or David White at 757-622-2639.

SPONSOR SPOTLIGHT

HAMPTON ROADSMARITIME ASSOCIATION

OfficersChairman of the Board

Charles E. Brinley

PresidentMeade G. Stone, Jr.

Vice PresidentsRobert P. Armbruster

Joseph A. DortoKip Hinkle

Executive Vice President & Secretary

Arthur W. Moye, Jr.

TreasurerJudy M. Barrett

Assistant TreasurerStephen M. Carmel

StaffAdministratorDavid C. White

Administrative Assistantto Executive Vice President

Jodie M. Love

AccountingKristie A. AcorsTina M. Martin

Shipdesk ClerkLynne H. Stonum

Membership Desk/Editor

Susan N. Wisniewski

1. Cover Page2. Sponsor Spotlight3. Maritime News4. Port Statistics

MARITIME BULLETIN is published12 times a year by Hampton Roads

Maritime Association.Subscriptions are available through

membership in the Association.Membership rate is $200 annually.

Recipient of Presidential “E” and“E Star” Awards for Excellence in

Export ServiceRecipient of ASAE Communication

Excellence & Honorable Mention Awards5. News Briefs & Announcement6. HRMA Highlights7. Membership News8. Club Contacts/Upcoming Events

IN THIS ISSUE

Maritime Issues Council

3

Maritime News

2006 Pinnacle of Engineering ExcellenceAwarded to Moffatt & Nichol

The Virginia chapter of theAmerican Council of EngineeringCompanies (ACEC) has awardedMoffatt & Nichol (M&N) the 2006Pinnacle of Engineering ExcellenceAward for the Norfolk InternationalTerminals South Wharf Renovation.ACEC’s Engineering ExcellenceAwards program recognizesengineering achievements whichdemonstrate the highest degree ofmerit and ingenuity.

The award was presentedFebruary 2, 2006 and accepted by Mike Knott and GarySmith of M&N. Also present were Mike Crist and IraBrotman from M&N’s Norfolk Office and Eric Vugteveen,David Wolfe, and Nick Smilek of M&N’s Richmondoffice. Jeff Florin and Kevin Abt of the Virginia PortAuthority were also in attendance.

Norfolk International Terminals (NIT) is the largest ofthe Virginia Port Authority (VPA) facilities and accountsfor nearly half of the Port’s total container throughput. In2002, the VPA undertook a large-scale renovation of theSouth Terminal at NIT. This renovation was required toupgrade infrastructure and replace container handlingequipment at NIT which was both aged and becomingfunctionally obsolete. The first step in these renovationsincluded the replacement of 4,230 linear feet of wharf with

a new state-of-the-art wharf designedspecifically to handle containerizedcargo.

Moffatt & Nichol provided civil,structural, hydraulic, electrical andmechanical engineering design servicesfor this complex $84 million project.The following list includes the majorhighlights of the successful renovationof the NIT South Wharf:

Demolition and reconstruction of4,230 linear feet of wharf in 2-1/2years,

No impacts to ship operations during reconstruction,

Implementation of an innovative under-wharf detentionbasin to treat stormwater,

Ability to deepen the berths to 60 feet without additionalwharf modification, and

An innovative approach to environmental mitigation.This remarkable project was completed on time, within

budget and met or exceeded all of the VPA’s criteria forthe project. The NIT South Wharf Renovation Projecthas transformed the aging South Wharf at NIT into aneconomically-viable, state-of-the-art containerized cargohandling wharf capable of accommodating growingcontainer ships and increasing cargo volumes well into thefuture.

Moffatt & Nichol (M&N) is a multi-disciplineengineering and planning firm specializing in engineeringand design for ports, marinas, shipyards, waterfrontstructures, coastal protection and water resourcesdevelopment. Operating out of 22 offices throughout theUnited States, Canada and the United Kingdom, M&Nprovides innovative solutions to the challenges found intoday’s waterfront and transportation arenas. M&N’sNorfolk, Virginia office currently provides engineeringprogram management and master planning services for theVirginia Port Authority.

(l-r: Nick Smilek, Gary Smith, Mike Crist,Eric Vugteveen, Mike Knott, Kevin Abt, Ira

Brotman, Jeff Florin and David Wolfe

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5

News Briefs & Announcements

New and exciting things are happening onthe Hampton Roads Maritime Association’swebsite. We are rolling out online registrationfor our upcoming events. Registering for allHRMA events, including the InternationalTrade Symposium, Annual Banquet and GolfOuting, can now be completed right from yourcomputer.

Visit our updated website atwww.portofhamptonroads.com.

HRMA members can log-on to the websiteusing their Customer ID number located onthe mailing label of this bulletin. Otherinterested parties may register for events asnon-members.

Event Registration Now Available OnlineVisit HRMA’s Website

www.portofhamptonroads.com

Jobs Created in 2005

Hampton RoadsArea75%

Port Related25%

Economic Expansion of 2005

Hampton RoadsArea58%

Port Related42%

The Port continues to attract employmentand capital investment to the area. TheVirginia Economic Development Partnershipcompiled data on capital investment andemployment creation in Hampton Roads,based on announcements made during2005. According to this data, 25% of newjobs created and 42% percent of economicexpansions in Hampton Roads were portrelated. The maritime industry accounts for165,000 jobs, 762.5 million in businessrevenue and $60.7 million in state and localtaxes for the Commonwealth.

Port Attracts Employmentand Capital Investment

Wardrup ReceivesRotary Award

Delegate Leo Wardrup, House of Delegates, 83rd

District, and Chairman of the House TransportationCommittee, recently received Rotary International’sService Award for Professional Excellence at ameeting of the Hampton Roads Rotary Club.

Delegate Wardrup was recognized for hisprofessional achievement, demonstrated high ethicalstandards, community and vocational service, anddedication to the concept of Service Above Self.

The award, one of the few awarded in Virginia,was competitive within Rotary International and waspresented in celebration of Rotary’s centennial year.Delegate Wardrup’s contribution and exceptionalprofessional accomplishments are consistent withthe ideals of Rotary and were recognized at theCentennial Rotary International Convention inChicago.

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HRMA Highlights

HRMA Committee Activity

JANUARYTowing and Barge Operators Committee

On January 11th, the committee received updates on several on-going issues. Industryorganizations are working with the Coast Guard to develop new inspection regulations andthe Coast Guard is placing significant emphasis on increased life saving training and equipmentrequirements. The Personnel Recruitment Subcommittee is continuing down the path ofgathering statistical data and will be conducting a survey of companies operating in the area.The subcommittee is also looking at tools to promote the towing industry and jobs. Additionallythe committee discussed a final rule published in December that will take effect June, 2006.There will be a requirement to have equipment on board to test for alcohol after a “seriousmarine incident” within two hours of the incident.

Inland Transportation CommitteeThe Inland Transportation Committee met January 12th. The Driver Workforce

Development Subcommittee is pursuing a grant that may be used to fund driver recruiting,training, and provide financial assistance programs to owner/operators. The committeereceived a presentation on a link that has been added to HRMA’s web site that providesinformation to prospective drivers about the companies participating in the workforcedevelopment program. The web site will be expanded as other elements of the workforcedevelopment program unfold.

Port Protection / Emergency Control CommitteeAt the January 17th meeting, the committee discussed why the Port did not receive

any port security grants from the Department of Homeland Security (DHS) in Round 5 andwhat steps to take to ensure the Port is not again overlooked in Round 6. The Port wasdamaged in the process because DHS viewed it as two port areas, the Peninsula and theSouthside. The committee agreed on multiple strategies for obtaining state and federal helpto emphasize with DHS that their process must be fixed to consider all of the Port of HamptonRoads as one port.

Maritime Briefings CommitteeThe Maritime Briefings Committee met January 26th. There was a brief review of the

January 11th breakfast briefing entitled “What is the Competitive Position of the Port ofHampton Roads?” which showed why the Port is positioned to become the number one port onthe East Coast. A discussion ensued regarding topics for future Maritime Briefings. Thecommittee developed a list the three topics to be explored simultaneously for the next andsubsequent events.

Annual Banquet CommitteeOn November 27th, the committee met to continue its planning of the 86th Annual

Maritime Banquet. The committee received an update on HRMA staff’s progress in confirmingthe keynote speaker. The committee confirmed pricing and discussed coordination with theInternational Trade Symposium to be held the same day as the banquet, May 4, 2006.Decisions were made regarding audio-visual arrangements and other details of the program.

Membership News

7

New MembersThe Dixie Group, Inc.Export Packing and Logistics9 South 12th Street, Suite 100Richmond, VA 23219804-475-6911 FAX; 804-644-4550Mr. Michael C. Smith, CEOmsmith@dixiecrating.comRecommended by: Susan Horton and Hugh Patterson

Kaufman & Canoles ConsultingConsultants150 West Main StreetNorfolk, VA 23510757-624-3116 FAX; 757-624-3169Mr. Chairles J. Bauman, III, Director, Maritime &Logistics Economic Developmentcjbauman@kaufcanconsulting.comRecommended by: Membership Increase

McAllister Towing of VirginiaTowing and Transportation (Barges)2600 Washington Avenue, Suite 1004Newport News, VA 23607757-247-7800 FAX; 757-245-5836Mr. James Elliott Westallewestall@mcallistertowing.comRecommended by: Membership Increase

Michelin North AmericaCommercial Tire Sales919 Graydon AvenueNorfolk, Virginia 23507757-748-8407 FAX; 757-623-1315Mr. Robert S. Reddy, Fleet Account Managerbob.reddy@us.michelin.comRecommended by: Ted Lepski and Linwood Beckner

Partners ExcavatingExcavating205-A S. Liberty StreetHarrisonburg, VA 22801540-433-2796 FAX; 540-434-9670Mr. Chris DriverRecommended by: Layman, Diener & Borntrager

Parsons BrinckerhoffEngineers/Naval Architects/Surveyors and Appraisers6161 Kempsville Circle, Suite 110Norfolk, VA 23502757-466-9675 FAX; 757-466-1493Mr. Stephen A. Curtis, Senior Marine Engineercurtiss@pbworld.comRecommended by: Capt. Watkins

Scott J. RaineyConsultant8318 Lilac LaneAlexandria, VA 22308703-366-8888Recommended by: Bill Cofer and Carter Gunn

Sysco Food Services of Hampton RoadsFood Service Distribution7000 Harbour View Blvd.Suffolk, VA 23435757-673-4266 FAX; 757-673-4374Ms. Joyce Ann Sanderssanders.joyce@shr.sysco.comRecommended by: Tom Host

Thomas-Carrera Consulting, Inc.Consultants209 Drummonds WayHampton, VA 23665757-810-8607Ms. Michelle Carreramcarrera@thomascarrera.comRecommended by: Chick Rosemond

TowneBankBanks/Investment & Mortgage Loans109 E. Main StreetNorfolk, VA 23510757-628-6355 FAX; 757-623-5792Ms. Judy Barrett, Senior Vice President PrivateBankingjudy.barrett@townebank.netRecommended by: Membership Increase

Troutman Sanders LLPLaw Firm222 Central Park Avenue, Suite 2000Virginia Beach, VA 23462757-687-7740 FAX; 757-687-1527Mr. Thomas H. Lucas, Partnertom.lucas@troutmansanders.comRecommended by: Roger Giesinger

Volvo Group North America, Inc.Exporters and Importersc/o Volvo Penta Americas, Inc.1300 Volvo Penta DriveChesapeake, VA 23320757-436-5194 FAX; 753-436-5150Mr. James Buckingham, Import Ops/CustomsCompliance Managerjames.buckingham@volvo.comRecommended by: Mark Mantiply and David White

PRESORTED STANDARDU.S. POSTAGE PAID

NORFOLK, VAPERMIT NO.1930

Hampton Roads Coal AssociationContact: Michael Carmon, 873-0165

Hampton Roads Foreign Commerce Clubwebsite: www.hrfcc.orgContact: Susan Long, 857-3351

Hampton Roads Traffic ClubContact: Peter Simmons, 466-8899

Propeller Club - Port of NorfolkContact: Rolf Williams, 457-8310

Society of Maritime IndustriesContact: Robert Armbruster, 457-9108

Tidewater Motor Truck AssociationContact: Shirley Roebuck, 398-0679

The Women’s TransportationClub of Hampton RoadsContact: Anita Bonet, 440-7215

236 East Plume StreetNorfolk, Virginia 23510

P.O. Box 3487Norfolk, Virginia 23514

(757) 622-2639; FAX 622-6302

web site: www.portofhamptonroads.comemail: hrma@portofhamptonroads.com

Feb 15 Hampton Roads Foreign Commerce ClubTerrorism and Critical InfrastructureNeil T. Guay, FBI11:30 Norfolk Waterside Marriot

Feb 15 Hampton Roads Traffic ClubPort Night5:30 Holiday Inn - Greenbrier

Feb 22 Tidewater Motor Truck Association6:00 Holiday Inn Express, Norfolk

Feb 22 Propeller ClubGovernment DayVADM Brewer11:30 Harbor Club, Bank of America Bldg.

Mar 8 Hampton Roads Coal AssociationHonorary Members Dinner6:15 The Harbor Club, Norfolk

Mar 9 Propeller ClubContainer Shipping DayFrank Baragona, President, CMA-CGM (America) Inc.11:30 Harbor Club, Bank of America Bldg.

Mar 15 Hampton Roads Foreign Commerce ClubStihl’s Role in International Trade in VirginiaKen Waldron, National Mktg. Director, Stihl Inc.11:30 Norfolk Waterside Marriot

Mar 15 Hampton Roads Traffic ClubWarehouse/Railroad/Industry Night5:30 Holiday Inn - Greenbrier

Club Contacts Upcoming Club Events

Roosevelt was born on October 27, 1858 in New York. His presidency began with the assassination ofPresident McKinley. He was the youngest man of his time to become President. During the Spanish-American War, he was lieutenant colonel of the Rough Rider Regiment and was one of the most conspicuousheroes of the war. Roosevelt was known as a “trust buster” by forcing the dissolution of a great railroadcombination in the Northwest. Other antitrust suits followed under the Sherman Act. Roosevelt won theNoble Peace Prize for mediating the Russo-Japanese War, reaching a Gentleman’s Agreement on immigrationwith Japan, and sent the Great White Fleet on a good will tour of the world.

Celebrating President’s DayHonoring Theodore RooseveltTwenty-Sixth President, 1901-1909