The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Saturday, June 17, 1995                TAG: 9506170377
SECTION: BUSINESS                 PAGE: D1   EDITION: FINAL 
SOURCE: BY CHRISTOPHER DINSMORE, STAFF WRITER 
                                             LENGTH: Medium:   75 lines

NORFOLK TO VIE FOR TRANSPORTATION HUB OFFICIALS SAY HAMPTON ROADS WOULD BE AN OPTIMUM SITE FOR COMMERCIAL, MILITARY VENTURE

Norfolk is one of 13 locations nationwide being considered by the Defense Department for a major sea, air and land transportation terminal.

Plans for the project, known as the Intermodal Installation Program, call for a public-private venture that could be used for commercial and military shipping.

The Defense Department wants a terminal or complex of interconnected terminals that it could use to ship materials via ship, plane and truck in the event of a military ``contingency,'' such as a war. The project could require a large amount of nearby warehouse space.

The U.S. Transportation Command identified Norfolk and 12 other sites last week as potential locations for the project. The command, known as TRANSCOM and based at Scott Air Force Base in Illinois, oversees the shipping of military equipment, personnel and supplies.

``We happen to believe that Hampton Roads is an idealized location for TRANSCOM's intermodal installation program,'' said J. Robert Bray, executive director of the Virginia Port Authority.

Besides being a major East Coast port, Norfolk is also at the center of Hampton Roads' massive military complex, Bray said. The city has excellent rail and highway connections.

Details of the project are sketchy. But it is likely to involve the use of the port's existing facility at Norfolk International Terminals, said John Vickerman, a planning consultant hired by the port authority.

``It's not set in stone,'' said TRANSCOM spokesman Cmdr. Stephen Honda said. ``It's more of a concept.''

The project is designed to demonstrate the usefulness of modern commercial shipping methods to the U.S. military. A 1991 Defense Department study called for greater use of containerization and the commercial transportation network, Vickerman said.

``Increased use of containers will be necessary in the future to match trends in the shipping industry,'' the study said.

``The commercial world is all intermodal,'' Honda said, using the industry term for shipping with standardized containers that can be readily moved between ships, trucks and rail. ``We have to be able to be able to use their trucks, their rail and to some extent their ports.''

TRANSCOM told the four armed services and the Defense Logistics Agency last week that it was up to them to study the various sites and decide whether to try to go ahead with the project.

``We've taken it as far as we could,'' Honda said. ``The services are the ones that have all the resources.''

The Navy nominated Norfolk and Jacksonville, Fla., as potential sites. Other port cities being considered include Charleston, S.C., and Oakland, Calif. Other potential locations are inland at Army depots and air bases.

When or if such a project may be undertaken is still up in the air. A Defense Department spokesperson familiar with the program could not be reached.

The intermodal installation program is envisioned as a huge public-private partnership. Contributors would include the Defense Department, the U.S. Department of Transportation, businesses and state and local governments.

``The facility would be used day-in, day-out by industry,'' Honda said. ``When we, the military, would need it, we would use it.''

In response to a request from TRANSCOM last year, the port authority expressed the region's commitment to such a project and described planned developments at Norfolk International Terminals and the region's other transportation assets, Bray said.

``The military has designated Hampton Roads as their principal military complex on the East Coast,'' said James Babcock, chairman of the Hampton Roads Chamber of Commerce. ``It is very appropriate that they would work with the port authority, the railroads and trucking companies to improve their transportation process.'' by CNB