DATE: Wednesday, May 28, 1997               TAG: 9705280519

SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 

SOURCE: BY CHRISTOPHER DINSMORE, STAFF WRITER 

                                            LENGTH:   56 lines

PORT'S GROWTH BETTER THAN EXPECTEDTHE GROWTH, 11.7 PERCENT MORE TONNAGE THAN IN THE SAME PERIOD LAST YEAR, HELPS SECURE THOUSANDS OF JOBS IN THE REGION.

The port of Hampton Roads is off to a much better start in 1997 than officials had expected.

Marine cargo terminals in the port handled 3.5 million tons of cargo by April's end - 11.7 percent more than during that period last year.

In April, the port handled 19.7 percent more cargo than in the preceding April, or 940,076 tons compared to 785,101 tons.

In January, port officials had projected the port would grow only about 4 percent this year, but it looks now like that estimate may have been too conservative.

The growth helps secure the jobs of the region's 2,000 dockworkers as well as the those of thousands more truckers, warehouse workers, tug operators, shipping line officials and others in the maritime industry. It also helps sustain Norfolk Southern Corp., the Norfolk-based railroad that hauls much of the cargo to and from the port.

The latest port results were released Tuesday at the Virginia Port Authority's board meeting.

John D. Covaney, the port authority's senior managing director of marketing services, predicted theport would exceed 10 million tons for the business year ending June 30 if it maintains its current pace.

While a strong domestic and world economy has kept imports and exports growing, a lot of Hampton Roads' growth has come and continues to come at the expense of other East Coast ports.

``We're basically seeing market share increases,'' Covaney said.

Last year Hampton Roads became the second largest general cargo port on the East Coast with a 17.1 percent market share, behind New York. In 1983, Hampton Roads was fifth on the East Coast with an 8.6 percent market share. From 1983 to 1996, New York's share fell from 41.9 percent to 33.1 percent.

Hampton Roads has gained on other East Coast ports thanks to a deep natural harbor with ready access to the ocean, its good rail connections to the Midwest, friendly labor and management relations and ability to handle growth.

Hampton Roads also benefits from being the first port of call on the East Coast with good transportation links to the Midwest and Northeast for many ships in the rapidly growing South American trade, Covaney said.

Also, shipping lines have been increasing the size of their ships to handle the dramatic growth in world trade, Covaney said. These bigger ships typically call on fewer ports, which means more cargo for the ports they call on.

There's also an ongoing consolidation among steamship lines. Between alliances and mergers between lines, nearly all the world's major lines now call in Hampton Roads. That has extended the port's reach to markets with which it once didn't connect so directly like the Mediterranean and the Middle East, Covaney said. ILLUSTRATION: Color photo KEYWORDS: PORT OF HAMPTON ROADS

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