The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Tuesday, October 15, 1996             TAG: 9610150009
SECTION: FRONT                   PAGE: A16  EDITION: FINAL 
TYPE: Editorial 
                                            LENGTH:  104 lines

BALTIMORE CONCEDES CONTAINTER BATTLE REGIONAL UNITY AT WORK

Two years ago, when Norfolk International Terminals needed space to expand, Nissan auto imports were moved from Norfolk to Newport News Terminal.

The switch was relatively simple, because both cargo-handlng facilities, as well as Portsmouth Marine Terminal, are under the same management: Virginia International Terminals Inc., a nonprofit company overseen by the state.

Until management of the ports was unified in the early '80s, the Norfolk, Newport News and Portsmouth ports competed for a cargo line like three cities squabbling to recruit the same manufacturer.

Today the three ports could serve as a poster child for successful regional cooperation.

``Unification saves us a lot of money because we've been able to market the port as a whole and put the business where it fits,'' said J. Robert Bray, executive director of the Virginia Port Authority, the state agency that oversees the ports.

That's what all of Hampton Roads could use: to be marketed as a whole, with business, and amenities, put where they fit.

The latest in a run of good news for the terminals was reported Sunday by staff writer Christopher Dinsmore. The Baltimore port has basically conceded its decades-long battle with Hampton Roads for container cargo.

Those are the truck-sized metal boxes that an ever-increasing portion of goods are shipped in. Back when Hampton Roads ports were placed under one management, Baltimore handled nearly twice as many containers as Hampton Roads. Last year, Hampton Roads handled twice as many containers as Baltimore.

Good management here is only part of the story, of course, though a big part.

An advantage for the port of Hampton Roads is that it's about an hour's steam from the mouth of Chesapeake Bay, compared with a day's steam to Baltimore.

But Hampton Roads also has the advantage in labor, and unified management played a role in that. There's been no recent labor unrest here, while there has been in Baltimore. Furthermore, Hampton Roads' crews are nearly twice as efficient as their Baltimore counterparts. Crews here took 2.4 million man-hours to handle 9 million tons of cargo last year, compared with 2.3 million man-hours in Baltimore to handle 5 million tons.

Another advantage of management unification was that it facilitated dealings with Norfolk Southern Corp., the railroad created by merger in 1982. The port and the railroad formed a partnership in the early '80s that has proved vital. Railway connections to Hampton Roads are excellent at a time when rail connections to most ports, especially on the West Coast, are poor.

On the East Coast, Hampton Roads is now No. 2 in container cargo, which is measured in 20-foot-long units called TEUs. Last year New York handled 2.26 million TEUs; Hampton Roads, 1.08 million; Charleston, 1.02 million and Baltimore, 0.53 million.

If the three Hampton Roads terminals had never combined forces, this region would be much farther back in the pack in the all-important chase for container-cargo supremacy. The port is a natural advantage that Hampton Roads has made the most of. It demonstrates the power of regional cooperation.

Two years ago, when Norfolk International Terminals needed space to expand, Nissan auto imports were moved from Norfolk to Newport News Terminal.

The switch was relatively simple, because both cargo-handling facilities, as well as Portsmouth Marine Terminal, are under the same management: Virginia International Terminals Inc., a nonprofit company overseen by the state.

Until management of the terminals was unified in the early '80s, the Norfolk, Newport News and Portsmouth terminals competed for a cargo line like three cities squabbling to recruit the same manufacturer.

Today the three terminals could serve as a poster child for successful regional cooperation.

``Unification saves us a lot of money because we've been able to market the port as a whole and put the business where it fits,'' said J. Robert Bray, executive director of the Virginia Port Authority, the state agency that oversees the terminals.

That's what all of Hampton Roads could use: to be marketed as a whole, with business, and amenities, put where they fit.

The latest in a run of good news for the terminals was reported Sunday by staff writer Christopher Dinsmore. The Baltimore port has basically conceded its decades-long battle with Hampton Roads for container cargo.

Those are the truck-sized metal boxes that an ever-increasing portion of goods are shipped in. Back when Hampton Roads ports were placed under one management, Baltimore handled nearly twice as many containers as Hampton Roads. Last year, Hampton Roads handled twice as many containers as Baltimore.

Good management here is only part of the story, of course, though a big part.

An advantage for the port of Hampton Roads is that it's about an hour's steam from the mouth of Chesapeake Bay, compared with a day's steam to Baltimore.

But Hampton Roads also has the advantage in labor, and unified management played a role in that. There's been no recent labor unrest here, while there has been in Baltimore. Furthermore, Hampton Roads' crews are nearly twice as efficient as their Baltimore counterparts. Crews here took 2.4 million man-hours to handle 9 million tons of cargo last year, compared with 2.3 million man-hours in Baltimore to handle 5 million tons.

Another advantage of management unification was that it facilitated dealings with Norfolk Southern Corp., the railroad created by merger in 1982. The port and the railroad formed a partnership in the early '80s that has proved vital. Railway connections to Hampton Roads are excellent at a time when rail connections to most ports, especially on the West Coast, are poor.

On the East Coast, Hampton Roads is now No. 2 in container cargo, which is measured in 20-foot-long units called TEUs. Last year New York handled 2.26 million TEUs; Hampton Roads, 1.08 million; Charleston, 1.02 million; and Baltimore, 0.53 million.

If the three Hampton Roads terminals had never combined forces, this region would be much farther back in the pack in the all-important chase for container-cargo supremacy. The port is a natural advantage that Hampton Roads has made the most of. It demonstrates the power of regional cooperation. by CNB