Virginia Port Turns a Profit Again

Governor Terry McAuliffe today announced that The Port of Virginia’s preliminary unaudited reports for fiscal year 2016 indicate that it will post an annual operating income of $4.76 million, the second year in a row that the port completed its fiscal year with profitability.

“The Port of Virginia’s performance is meeting and exceeding the expectations of my administration,” said Gov. McAuliffe. “This financial turnaround is proof that the port’s wise investments in capital projects and people, which are being made in support of a plan for sustainable growth, are yielding very positive results, in terms of reputation abroad, delivery of service, performance at the piers and an increasingly stable financial picture.

“The work of this administration, the support of the General Assembly and effort port leaders have put into returning The Port of Virginia to sustainability is a true source of pride. I look forward to the continued role our port will play in the new Virginia economy.”

The port budgeted an operating income of $2.69 million for fiscal year 2016, and the preliminary result exceeds that budget by $2 million.

“We knew going into the new fiscal year that we were not going to exceed last fiscal year’s result ($13.6 million operating profit) and we budgeted accordingly,” Aubrey L. Layne, Virginia Secretary of Transportation. “This year we had an aggressive plan for reinvestment, we solidified our volumes, we showed growth in a challenging market and we have a solid financial result to show for the effort.”

The port closed fiscal 2016 (July 1 – June 30) having handled a record-setting 2.573 million twenty-foot equivalent units (TEUs). Highlights of fiscal year 2016 include:

• TEUs: 2,573,635, up 2.5%

• Container units: 1,460,704, up 1.3%

• Rail containers: 511,096, up 9.7%

• Virginia Inland Port containers: 40,499, up 12.3%

• Richmond Marine Terminal barge containers: 16, 347, up 15.8%

“We are proud to have posted solid financial results for the second year in a row,” said John G. Milliken, chairman of the Virginia Port Authority Board (VPA) of Commissioners. “Our task, however, is not to make money for its own sake, but to put our resources to work creating economic growth and jobs across Virginia. Positive financial results allow us to support the growth at NIT (Norfolk International Terminals) approved by the Governor and the General Assembly and to move forward on our longer term plans to expand Virginia International Gateway and, ultimately, build a new terminal on Craney Island.”

Fiscal year 2016 also included the following accomplishments:

• Broke ground on the NIT North Gate, a project that will add 26 new truck gates at the port’s largest terminal. Anthony Foxx, US secretary of transportation, was in attendance at the event.

• The port handled 233,466 TEUs (twenty-foot equivalent units) in October, making it the single busiest month in the port’s history.

• On a calendar-year basis (2014-2015), the port set a new annual record for container cargo volume having handled more than 2.5 million TEUs, which was a 2.5 percent increase over 2015.

• Signed a 40-year lease with the City of Richmond to operate Richmond Marine Terminal (RMT).

• Took delivery of a new $4 million mobile harbor crane at RMT; the first part of a reinvestment strategy for that facility.

• The port developed and implemented its SOLAS (Safety of Life at Sea) policy without any disruption to service.

• Hosted the Panamanian ambassador in an event that welcomed the first 10,000-plus TEU vessel to come to the port via the Panama Canal’s new locks.

• The governor announced an investment of $350 million to renovate the upland operation at south side of Norfolk International Terminals.

• The port’s economic development efforts helped to drive $733 million in investment and create 3,600 jobs across the Commonwealth.

“The success of the port this year was a collaborative effort, so it is important to recognize the dedication and hard work -- across the board -- by the port team, our labor partners, industry partners and stakeholders,” said John F. Reinhart, the VPA’s CEO and executive director. “We have been able to make the necessary investments to improve our delivery of service because of the support and guidance we have received from the Governor, the Secretary and our board. Now, the effort will be to continue this momentum, strategically reinvest in all of our facilities and prepare for the future.

“We still have our challenges to address, but we have a plan and the right team in place to execute. It’s up to us to continue to work together with our partners, our customers and our colleagues to ensure the vision becomes a reality.”