THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Sunday, December 10, 1995 TAG: 9512080007
SECTION: COMMENTARY PAGE: J4 EDITION: FINAL
TYPE: Editorial
LENGTH: Medium: 60 lines
Cargo-laden ships have sailed in and out of Hampton Roads for more than three centuries. The 21st century promises to be the busiest and most prosperous 100 years in the port's history.
To prepare, the Virginia Port Authority, an arm of the state, has lately taken the first steps toward further expansion of the state-owned marine terminals in Hampton Roads: Norfolk International Terminal, Portsmouth Marine Terminal and Newport News Marine Terminal. Expansion is necessary to accommodate increasing general-cargo tonnage moving through them - 8 million tons last year (16 percent more than in 1993), 9 million tons this year.
Boosting general-cargo tonnage is a priority. Port commerce contributes in a big way to Virginians' well-being. More than 116,000 jobs across the commonwealth are linked to the port. In 1994, these jobs generated $2.9 billion in wages and $319 million in state and local taxes.
The first European merchant vessels in Hampton Roads stopped at plantation wharves along the James, Lynnhaven and other Chesapeake Bay tributaries. They sailed to the colony with English goods and sailed out with tobacco, primarily. They carried pork and other farm commodities to the West Indies and returned with rum and other tropical products.
Hampton Roads' fortunes fluctuate with the ups and downs of world trade. Post-World War II trade growth, stimulated by the Cold War and international accords toppling trade barriers, spurred Virginia to make substantial investments in cargo-handling facilities, roads and marketing of Hampton Roads' advantages for shippers. The state's investment pays handsomely. Hampton Roads now counts 4,000 merchant-ship sailings a year. Expect more.
Two types of cargo pass through the port: (1) bulk cargo - coal, mainly, but also grain, petroleum, fertilizer, gypsum, ores and the like and (2) general-cargo. The latter category includes (1) commodities packed in large containers that machines shift efficiently between ships and trucks or rail cars and (2) breakbulk cargo, such as motor vehicles, heavy machinery and rubber, which cannot be containerized.
Most of the cargo tonnage is coal, which is dumped into colliers calling at Norfolk Southern's Norfolk piers and the Newport News facilities operated by Pier IX Terminal Company and Dominion Terminal Associates. Because of coal, Hampton Roads' waterborne-cargo tonnage exceeds the port of New York's. Hampton Roads' coal dumpings will total about 50 million tons this year. Each ton generates about $18 in revenue.
A ton of container cargo generates more, about $60. A ton of breakbulk cargo, which takes more labor to handle, generates about $95.
Last month, the Virginia Port Authority board of directors, looking at a projection of 16 million tons of general cargo in 2010, embraced a 15-year expansion-planning document and expressed intent to issue, with General Assembly approval, up to $130 million in revenue bonds for construction.
Trade trends worldwide and in the port are clear. Hampton Roads must be positioned to profit from expanding trade. The port authority's timely action improves the odds it will be. by CNB