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Volume 83, No. 3“The Voice of Port Industries”March 2019@VAmaritimeVA GENERAL ASSEMBLY “IN SEARCH OFPOST SESSION REPORTSTABILITY”The 2019 General Assembly Session has come to an end, and we wantedto share with you an update. The emphasis of this year’s Port Day was tothank the General Assembly for last year’s 350 Million investment in our“Wider, Deeper, Safer” dredging project. Additionally, we wanted to take thetime to highlight the progress on projects currently underway that show theCommonwealth’s investment hard at work.Of the 21 bills on our radar this year, there were five that we activelyadvocated for or against that are detailed below. If you’re interested in theother bills that were on our “watch” list, feel free to give us a call. There werealso several budget amendments that we supported, which are also outlinedbelow.Bills we opposed would have established a moratorium on fossil fuel projects(HB 1635) and a reversal of waterfront worker’s compensation protectionsfrom duplicative coverage requirements (HB 1750); neither of these billsproceeded this session. However, we will be watching closely to see if theywill resurface in 2020. Republicans currently hold one-seat majorities inboth the House and the Senate, so with all 140 seats up for election thisNovember a change of control of one or both chambers could happen.The bills we supported included federal matching funds for rail enhancements(HB 1983), economic development grant sunset extensions (SB 1459),and an increase in testing facilities for commercial driving examinations(SB 1347). All three of these bills are heading to the Governor’s desk forsignature and will improve the overall ability of our industry to move cargothrough our ports.Regarding this year’s budget, we supported Governor Northam’s proposalof 250,000 to create the Office of Offshore Wind, yet a push to curbdiscretionary spending hampered these efforts and the funds werenot allocated this session. However, we will continue to advocate forthis funding in the future, as well as the progression of offshore winddevelopment. Additionally, we supported Governor Northam’s introducedbudget proposal of 20 million in Virginia Business-Ready Sites Programto improve infrastructure at the state’s mega-sites. The House and SenateSymposium panelists include industry experts and executivesVMA’s 16th Annual International Trade Symposiumwill be held on May 8-10, 2019, focusing on thetheme, “In Search of Stability.”Keynote speakers and three panel sessionswill address topics most affecting today’s portoperations and cargo logistics:Tariffs and Their Impact on Global SupplyChainsToday’s global economy is truly intertwined, withbillions of dollars of goods and services flowingacross borders around the clock. As every actionhas an equal and opposite reaction, tariffs andother restrictive trade measures can reroute theflow of commerce from one country to another, oreven halt it completely. As companies are lookingfor predictability, how are the current trade warsimpacting global supply chains?Panelists will include speakers from LivingstonInternational, Tesla, Willcox Savage, and AvalonRisk Management.Continue Reading on Page 3INSIDE THIS EDITIONhhTowneBank: Proud to be VMA2020Title Sponsor (2)Continue Reading on Page 3hhLeadership Groups Tour Warehouse (3)hhMLCP Applications Due April 12 (6)hhVMA at College & Career Fair (4)hhDiscover the Mobile App (7)hhShipping with Emissions (4)hhPost Session Policy Breakfast (7)1
www.VAmaritime.com/VMA2020OFFICERSChairman of the BoardRaymond A. NewlonPresidentScott Wheeler“THE MARITIME ASSOCIATIONIS IN OUR BLOOD”TOWNEBANK: PROUD TITLE SPONSORVice PresidentsMichael W. ColemanGeorge BrownRolf A. WilliamsExecutive Vice President & SecretaryDavid C. WhiteTreasurerJudy M. BarrettAssistant TreasurerKeith HeltonSTAFFVice President of Finances& Administration. Sam DavisVice President of Industry& Government Affairs. Will FediwVice President of Communications& Membership. Ashley K. McLeodEvent Manager &Accounting Assistant. Jennifer N. ParhamExecutive Assistant. Jennifer S. DeasonMarketing Coordinator. Laura V. BirdMembership & PublicationsCoordinator. Susan N. Wisniewskireverook,eMorgan Davis, TowneBank President & CEO, knows the importance of the maritimeindustry to Hampton Roads. In fact, the port is connected to one of his earliestmemories as a young professional in the region.“When I was a young banker in the 70’s, I worked in downtown Norfolk,” recallsDavis. “The first thing the bank had me join was the Harbor Club, which was filledwith maritime members. That’s when I learned how important the maritime industryis.”Now, in 2019, Davis is president of one of the region’s (and the state’s) mostprominent banks. We are proud to announce that TowneBank has agreed to be thetitle sponsor for VMA2020, the association’s 100th anniversary.“We are honored that TowneBank has stepped up to the plate to be part of thiscommemoration,” says David White, Executive Vice President of the VMA. “Townehas been a supporter of VMA for many years and it’s clear the bank understands theimportance of the port industry.”“There are 70,000 jobs related to the maritime industry,” says Morgan Davis. “Manyof TowneBank’s members employ those people. It makes perfect sense to help theVMA celebrate 100 years.”TowneBank has a long history with the Port of Virginia and has partnered with manymaritime members over the decades. TowneBank executive chairman Bob Astonhelped oppose the plan in 2012 to privatize the port, which may have limited futurebusiness that maritime companies could generate.VMA2020 will feature a variety of events for members in Hampton Roads andwithin chapters across the Commonwealth. One of the highlights will be a specialsigning ceremony at the state capitol in February 2020. VMA2020 sponsors, led byTowneBank, and political leaders will be among those signing a new charter for thenext 100 years of the VMA, similar to the one signed by the inaugural associationmembers in 1920.neBank.”O“The Maritime Association is in our blood,” says Davis. “We (TowneBank)are proud to be a sponsor, particularly in the hundredth anniversary of theVMA.”Morgan Davis, President of TowneBank2Join Us As A Sponsor! Contact: Ashley@VAmaritime.comwww.VAmaritime.com/VMA2020
LEADERSHIP GROUPS TOUR WAREHOUSECHESAPEAKE The MaritimeLeadershipCertificateProgramparticipants met in March to discuss“Personal Branding” as well as receivingan in-depth dive into warehousing logisticsfrom Allen Campbell, International SalesManager with GIVENS.Future Leaders joined the tour ofGIVENS facilities, where Lang Williams,Chairman of the LogistXGames,joined the group sharing the missionof the games in bringing awareness toworkforce development and raisingPOST SESSION (CONT.)budget included 5 million and 1 million respectively, yetthe final allocation came to 2 million ( 1 million for eachyear). Finally, we supported Senator Vogel’s budget languageamendment which conveyed 65-acres of land owned andoperated by the Department of Corrections, located in ClarkeCounty, to the Virginia Port Authority on behalf of the VirginiaInland Port for the purpose of collaborating with Clarke Countyrepresentatives on the development of the land for economicdevelopment purposes.We closely monitored other issues of interest during this session,including a funding increase of 1,000,000 from the general fundto the Virginia Removal or Rehabilitation of Derelict StructuresFund and designated for removing, renovating, or modernizingport-related buildings and facilities in the cities of Portsmouth,Norfolk, Newport News, Richmond, or Front Royal.Of particular note was the high-profile debate on Interstate 81,with the creation of the Interstate 81 Corridor ImprovementFund (HB 2718, SB 1716), the establishment of the Interstate81 Committee, and a directive for the Committee to work withthe Transportation Board to develop an Interstate 81 CorridorImprovement Program and to review the related ImprovementPlan. What was not agreed upon, however, was a fundingmechanism for the Improvement Fund, with tolls (SB 1716),local (SB 1322), and regional gas taxes debated (SB 1470, 1770).Instead, a committee of state legislators and local officials wascreated to provide an update, including a funding proposal, tothe General Assembly by December 15th of this year.While Session may be over, we have much work ahead of us.With the aforementioned election cycle coming up this fall, wewill have our hands full with legislation-monitoring, educating,and advocating off-season for our greater port’s betterment.For questions, please contact Will Fediw:will@vamaritime.com or 757-628-2665funds for scholarships at TCC and PaulD. Camp.Applications for the next cohort of theMLCP are being accepted through April12th. Requirements and an applicationitself can be found at vamaritime.com/MLCP.Participants have one to two yearsto complete the program with acomprehensiveunderstandingof maritime industry, network ofstakeholders, and critical leadership skills.STABILITY (CONT.)Reservation SystemsAre reservation systems a panacea for terminal congestionwoes? Bigger ships and growing container volumes are causingcongestion problems at ports throughout North America,while truckers, the linchpin for clearing this congestion, havebecome increasingly frustrated by long wait times at theterminals. This panel will explore the benefits and challengesof reservation systems, which are designed with the intent tofacilitate a more efficient experience between motor carriersand our nation’s container terminals.Panelists will include speakers from XPO Logistics, Komodal,Kuehne Nagel, and Virginia International Terminals.Disruptive TechnologyIndustries across the globe are being impacted by emergingtechnologies, and the maritime industry is no exception.The Internet of Things (IoT), Artificial Intelligence (AI),block chain, and cyber security are now common languageand already permeate today’s maritime supply chain. If thesedisruptive technologies are here to stay, how can early-adoptersleverage them to gain market advantage?Panelists to be announced.VMASYMPOSIUMINTERNATIONAL TRADEFor the most current information regarding theschedule, speakers, sponsorship, and networkingevents, please visit:www.VAmaritime.com/Symposium3
VMA INTRODUCES“MARITIME SUPPLYCHAIN” AT CAREER FAIRPORTSMOUTH, VA On March 15, Woodrow WilsonHigh School hosted a college and career fair. AshleyMcLeod was happy to introduce careers within themaritime, logistics, and port trade industries and by sharing“supply chain” basics. Givens, Virginia Wesleyan University,SMART Center, Old Dominion and TCC were other VMAmembers in attendance. The VMA Education & Trainingcommittee encourages member companies to participate incareer fairs. Watch VMA emails for future opportunities!SIMPLY COMPLICATED: SHIPPING WITH NEWEMISSION REGULATIONSAs 2020 approaches, ocean carriers face the challenge of meeting newemission control regulations, specifically regarding the amount ofsulfur oxide allowed in a vessel’s exhaust emissions. According to theInternational Maritime Organization (IMO) website, sulfur oxides areknown to cause respiratory issues in humans and create acid rain inthe atmosphere.Since 2015, vessels sailing within Emission Control Areas (ECAs),like the East Coast of North America, have been limited to sulfuremissions of 0.1% m/m (mass by mass). However, beginning January1, 2020, the IMO is reducing the international limit for sulfur oxides invessel fuel to 0.5% m/m while transiting outside of the ECAs, downfrom the previous 3.5% m/m. By that date, companies will need tochoose and implement the best method to meet the requirements.Furthermore, even having high-sulfur fuel onboard a vessel withoutan installed scrubber system can lead to penalties, come March 1, 2020.This sweeping regulatory change begs the question: how is the globalfleet preparing to meet this regulation change? It’s complicated. First,here’s a look at the existing compliance options facing fleet owners,each with its’ own opportunities and challenges:Install ScrubbersMechanical “scrubbers” will allow vessels to continue burning thehigh-sulfur fuel by cleaning the exhaust gas emissions. However,they are costly to install, require a ship to be out of service while thescrubber is installed, and is not considered a long-term solution formeeting the IMO’s greenhouse gas emission target (50% reduction by2050, followed by a full phase-out).Burn Low-Sulfur Fuel BlendsExisting heavy fuel oils can be blended with low sulfur gas oil to lowerthe overall sulfur content. This could be expensive in the long run givenmarket demand, but will work in most vessels in the near-term withouttaking them out of commission. However, this is also not considereda long-term solution for meeting the IMO’s larger greenhouse gasemission target.4Area of North American Emission Control AreaUse Liquefied Natural Gas (LNG)LNG is considered one of the cleanest options of marine fuels,although supply is currently limited in the United States andwill require some of the most extensive investments regardinginfrastructure and vessel modifications; both terminal facilities andvessels will need to be equipped to handle it. However, it is beingsuccessfully used today as a marine fuel within major U.S. andEuropean ports such as Jacksonville and Rotterdam, and somestudies have shown long-term cost savings on certain shippingroutes. Additionally, many vessels currently under constructionare being designed to burn LNG.Second, there are other factors to the compliance equation,such as the age of the vessel, the type of service, and the routesroutinely sailed. As previously mentioned, choosing the type offuel to be used is easier when the vessel is under construction,as compared to modifying existing vessels that might not beworth the costly retrofits. “It’s a very individualized businessdecision,” said Will Fediw, Vice President of Industry andGovernment Affairs for the Virginia Maritime Association.“Every shipping line is looking at this differently based ontheir different required returns.”Several ocean carriers have publicly announced theircompliance plans, including short-term arrangements, whileothers have yet to decide. The bigger question is, regardless ofthe compliance options chosen, will Virginia be ready to meetthe demand?
VESSELS BY TYPEFeb-19SailArriveFeb-18SailArriveTotal TEUs - AprMayJunJulAugSepOctNovJan1 : Virginia Port 6CUSTOMS RECEIPTS - VA CUSTOMS DISTRICTJan-20191 month 2019Jan-20181 month ,734,707Other ,124,118247,124,11861,390,48361,390,483PORT STATISTICS FEBRUARY 2019ArriveYTD-19PORT OF HAMPTON ROADS TEU’SSource: US Customs and Border Total00000000DISTRIBUTION OF COAL DUMPINGSHAMPTON ROADS REGION (IN NET TONS OF 2,000LBS)Total Coal Dumpings - 00,000JanFebMarAprMayJunJulAugSepOctNovDecCoal statistics for February 2019 are notable to be released at this time.The chart above reflects the most current information asof January 2019.YOUR FULL-SERVICECOMMERCIAL PRINTER Stationary Note pads Postcards Flyers Brochures Presentation folders Booklets & magazines Books(Spiral bound & perfect bound) Direct mailers Large format Magnets Stickers Business cards Promo items Custom die cuts Foil lettering Embossing(757) 436.3331 931 Ventures Way, Chesapeake, VA 233205
ASSOCIATION IN ACTIONEach February, the Association focuses on monitoring theactivities of the General Assembly session and advocatingpositions for or against legislation that impacts Virginia’s maritimeindustries. The annual Port Day at the General Assembly washeld Feb. 6. The VMA membership owes gratitude to the manyindividuals from the port community that spent the day at thestate capitol in face-to-face meetings with legislators to thankthem for their support, discuss VMA’s legislative priorities, andeducate them about their businesses.At the conclusion of Port Day activities, VMA’s representativesheard from Virginia’s Secretary of Transportation ShannonValentine. Secretary Valentine was generous with her time andinterested to learn more from VMA about port operations, theshipping industry, and future opportunities.VMA was pleased to be invited to a meeting convened byleaders from the Norfolk Economic Development Authorityand Norfolk Public Schools to discuss opportunities to developa better equipped job-ready workforce. Input was solicitedfrom business leaders from different industry segments tobegin defining expectations to help improve student academicperformance (K-12) from a job ready workforce developmentperspective.Feb. 25, David White participated in a meeting of the AdvisoryCommittee for International Trade at the Virginia EconomicDevelopment Partnership (VEDP). As part of an evaluationof the state’s trade promotion activities, the committee heardfrom BCO’s about their experiences working with VEDP andsolicited their advice for building on VEDP’s already strongtrade promotion programs. The committee also discussedprogress in the initial stages of developing an InternationalTrade Plan. David White also sits on the steering committeeco-chaired by Secretary of Commerce & Trade Brian Ball andSecretary of Agriculture & Forestry Bettina Ring which also metin February and is responsible for guiding the development ofthe International Trade Plan.COMMITTEE UPDATESINTERNATIONAL TRADE SYMPOSIUM (Feb. 1 & 15): The committeebegan closing out speaker invitations for “In Search of Stability,” the2019 International Trade Symposium to be held May 9. Other areasof emphasis include sponsorships and promotions.EDUCATION & TRAINING (Feb. 15): After revisiting the committee’sgoals & objectives under the VMA Strategic Plan, the committeebegan making plans for future activities. The committee wouldfollow on the success of its “Internship 101” Lunch & Learn andCareer Education Fair. Updates were received on programs ofinterest at multiple educational institutions.MEMBERSHIP (Feb. 19): The committee considered a trialmembership program that would be limited and promoted only toattendees to the International Trade Symposium. The committeealso began a process of reviewing the VMA’s dues structure.CARGO OWNERS (Feb. 20):Updates were received on theprogress of major projects, operations, and business developments.Specifically, there was an update and discussion of the status ofthe Trucker Reservation System, Trade Policy Impacts, and theVirginia General Assembly. The Data & Technology Subcommitteereported on recent discussions with the Virginia Port Authority toprovide better information tools.BRIEFINGS (Feb. 26):The committee reviewed the topics,attendance, and financial results of its 2018 briefings as well as theMembership Breakfast on Feb. 13, “Opportunities on the Rivers –Thinking Outside the Box.” A tentative schedule was discussed forthe remainder of 2019, including prospective topics and speakers.COMMERCE DEVELOPMENT (Feb. 26): A full agenda included adiscussion of industry data of value to members which VMA couldcollect and report. Updates were received on activities related toOffshore Wind, LNG Bunkering, and the Open Seas TechnologyHub. There was a review and updates of VEDP activities and othereconomic development organizations which coordinate with VMA.OUTINGS (Feb. 27): The committee reviewed the attendance andfinancial results of the 2018 Maritime Mixers and the one held Jan.17 at Chick’s Oyster Bar in Virginia Beach. A tentative schedule andlocations were discussed for the remainder of 2019.BANQUET (Feb. 28): The committee discussed the keynote speakerand received updates and made several decisions for the remainderof the program of the 99th Annual Banquet to be held May 9.LEADERSHIP PROGRAM: ACCEPTING APPLICATIONSVMA members are encouraged to apply for the second class of theMaritime Leadership Certification Program (MLCP) which allowsparticipants to engage in a 1-2 year curriculum exposing them to allfacets of the maritime supply chain industry while developing criticalleadership skills.6To Apply:Download the application at www.VAmaritime.com/MLCPSubmit BY APRIL 12 with a resume and two references to:ashley@vamaritime.com
REDISCOVER YOURMEMBERSHIP THROUGH THENEW MOBILE APPNEW MEMBER(S)ADVANSIXManufacturers and DistributorsSILVER ANCHOR905 E. Randolph RoadHopewell, VA 23860www.advansix.comhhFrederick P. HarrySite Leader(804) 541 5000frederick.harry@advansix.comDiscover MembersMeet Our AnchorsParticipate at EventsInformation Syncs with YourCurrent VMA AccountADDITIONAL MEMBER(S)Explore the app today!Search your app store (Android Play/Apple)for “Virginia Maritime Association.”Sign in with your VAmaritime.com username and passwordFor assistance, contact the VMA at 757-622-2639CHAPTER UPDATEShhJustin BurkeyMarine Ops Execution Leader/Logistics(804) 541 5395justin.burkey@advansix.comT. PARKER HOSTTerminal Operators150 W. Main Street, Suite 1600Norfolk, VA 23510www.hostterminals.comhhEric J. DinkleOperations AnalystFuture Leader(757) 627 6286eric.dinklle@hostterminals.comWINCHESTER Valley Logistics Chapter partnered with the Topof Virginia Regional Chamber (TVRC) to host a “Post Session PolicyBreakfast” with regional VA Senators and Delegates.Interstate 81 continues to be the area of greatest interest for businessindustries as well as residents. Following the breakfast, chaptermembers met to discuss the upcoming State of the Port Address on Dustin Rinehart (Port of Virginia), Del. Dave LaRock (33rd), DevanApril 9th and future meetings, as well as getting chapter members Anders (InterChange Group), Del. Wendy Gooditis (10th), RichardKennedy (TVRC), Will Fediw (VMA), Stan Crockett (VPA), Del. Chrisinvolved with VMA committees.Collins (29th), Faith Powers (VPA Commissioner), John Lamanna(TVRC), and Ashley McLeod (VMA)7
PRESORTEDSTANDARDU.S. POSTAGE PAIDNORFOLK, VAPERMIT NO. 1930P.O. Box 3487Norfolk, Virginia 23510CLUB CONTACTS:Customs Brokers & Int’l Freight Forwarders Assn.Casey Goins cgoins@cvinternational.comHampton Roads Coal AssociationEdward Falis 928-0484 ex 106www.hrcoal.orgHampton Roads Global Commerce CouncilJeffrey Estes 567-8831www.hrgcc.orgHampton Roads Traffic ClubDennis Wilson 543-1941www.HamptonRoadsTrafficClub.orgTidewater Motor Truck AssociationMarguerite Frier 558-7614www.tmtava.orgPropeller Club - Port of NorfolkNoel Stokeswww.PropellerClubNorfolk.orgVirginia Ship Repair AssociationSylvia Bell 233-7034www.VirginiaShipRepair.orgShenandoah Valley Traffic ClubChad Brant (540) 398-9923Virginia International Business Councilwww.vaibc.orgUpcoming maritime events are listed on VAmaritime.com/eventsAnchor MembersP L AT I N U M A N C H O R SBILITYATSFOHIN SEARCARFOLK, V NOMAY 8-10 Attend the East Coast’s premier conferenceon ports, logistics, and global trade to gainexpert insight on the topics most pressingin supply-chain industries.REGISTER AT:VAMARITIME.COM/SYMPOSIUM8Hosted by:Bay Diesel & GeneratorCV International, Inc.GOLDEN ANCHORST. Parker HostVHBPort City TransportationVirginia Pilot AssociationVandeventer Black LLPS I LV E R A N C H O R SAnders Williams Ship AgencyNorfolk Oil Transit, Inc.AdvanSixPender & Coward, P.C.Bank of AmericaSeaGate Terminals, LLCCapes Shipping AgenciesSunTrust BankColliers InternationalTécnico CorporationCorman Kokosing Construction CompanyTMEIC CorporationCP&O, LLCVentker Henderson, PLLCDewberry Engineers, Inc.Wells Fargo BankGreat Lakes Dredge & Dock Co.Western Fumigation
Since 2015, vessels sailing within Emission Control Areas (ECAs), like the East Coast of North America, have been limited to sulfur emissions of 0.1% m/m (mass by mass). However, beginning January 1, 2020, the IMO is reducing the international limit for sulfur oxides in vessel fuel to 0.5% m/m while transiting outside of the ECAs, down
