Freight News, Sea

Port of Virginia Profitable Again

[ September 16, 2015   //   ]

The Port of Virginia (POV) is profitable for the first time since 2008. Preliminary reports indicate that POV is forecast to turn a $16.1 million profit in FY 2015, which is a $31.5 million improvement in operating income compared with the prior fiscal year.

POV also continues to set cargo handling records this FY 2015, handling more than 2.5 million TEUs in the twelve months that closed June 30, and eclipsing the record set in FY 2014 by 8.9%.

The port closed fiscal 2015 with strong June TEU volumes, having handled 213,517 TEUs, which is a 14.5 percent improvement when compared with the same month last year. The month yielded growth across the board for the port: truck containers, up 20.5%; vehicle units, up 102%; rail containers, up 7.4%; ship calls, up 11.7%.

Fiscal 2015 also included the following accomplishments: Re-opening of Portsmouth Marine Terminal; addition of 1,000 chassis to HRCP II; purchase of nearly 100 vehicles used in the movement of cargo; implementation of new terminal operations software; signing of a cost-sharing agreement with the Army Corps of Engineers to evaluate the benefits of two critical dredging projects — the deepening of the Norfolk Harbor and Southern Branch of the Elizabeth River; receipt of a $15 million Transportation Investment Generating Economic Recovery (TIGER) grant to create a new intermodal gate complex at Norfolk International Terminals; completion of a bond sale to reduce debt costs, earning Aa3 and A+ bond ratings from Moody’s and S&P, respectively; and passage of a $489.7 million budget that includes $135 million allocated for capital expenditures to alleviate congestion and position the port for future growth

Virginia’s Governor McAuliffe mandates that POV make changes to become a sustainable operation and the leading seaport on the East Coast.