The Port of Richmond, Richmond`s Future

Richmond’s Future
Mr. Jeff Keever
Senior Deputy Executive Director
Virginia Port Authority
Port of Richmond
VPA Assumes Port Lease
• Virginia’s Governor, Lt. Governor and Secretary of
Transportation fully endorsed VPA leasing the Port of
• Richmond City Council approved the lease
• 5 year initial lease with three 5 year options to renew at
• Lessor must be notified 1 year prior to end of current term if
VPA does not want to renew lease. Allows VPA not to be
locked in to long term lease
• Crane rental funded by Secretary of Transportation
• Richmond MPO has funded barge pilot project and offered
to assist in growth of business at Port of Richmond.
• Lease date: July 1, 2011 – June 30, 2016
• Operated by third party, Port Contractors Inc. (PCI) similar to
existing terms
• No VPA personnel on the ground
• Currently once a week barge service
– Ultimate objective to create daily round trip barge
– Underscores our Green Port effort, enhances air
quality and reduces highway congestion
• Port of Richmond has negotiated new contract
– Appomattox Bio Energy
– $15K/mo to lease 80,000 sf in Warehouse 3
– Storage of bulk feed products for domestic operation
64 Express
• Owned and Operated by James River Barge Line,
LLC, a Norfolk Tug Holding
• Service began Dec. 1, 2008
• Virginia’s Green Transportation Solution
• Short term objective – 3x/week
64 Express Route
• 12,000+ Truck Trips Saved First
Year of Operation
• Service began 12/2008
• Oversize/Overweight emphasis
• 30+ gal. fuel saved per truck trip
• Emissions reductions
• Relieves congestion on I-64/
Hampton Blvd in Norfolk
Contributing to The Barge’s Success
• Richmond is the North American headquarters for
• Early supporters of the barge
– Mead Westvaco
– Universal Leaf and Tobacco
– Philip Morris USA
• Richmond MPO
– Demonstration project
– $3.915 million grant
The Virginia Inland Port
• Intermodal container transfer
facility in Warren County
• Opened in 1989
• 161 Acres
• 17,820 feet of rail adjacent to
Norfolk Southern main line
• Full-service domestic ramp
with service to Atlanta,
Chicago, Dallas, LA/Long
Beach, Miami and New
• Easy access to I-81
(North/South) and I-66
• VIP handled nearly 25,000
containers in 2010
The Virginia Inland Port
• Economic engine for
the Commonwealth
• 39 major companies
have located near
the Virginia Inland
The Virginia
Inland Port
– Investment of
nearly $748 Million
– Over 8 Million sq. ft.
of buildings
– Employment of over
8,000 people
Major Companies Located Near VIP
AmeriCold Logistics
Blue Ridge Prestain
DuPont Front Royal
Eagle Systems Inc.
Family Dollar Inc.
Federal Mogul Corporation
Ferguson Enterprises Inc.
Ford Motor Co.
Four-U Transportation
GE Lighting
H.P. Hood Inc.
Home Depot (Import DC)
Home Depot (High Velocity DC)
InterChange Group
Jouan Inc.
Kohl’s Corp.
Kraft Foods Inc.
M&H Plastics
MIC Industries, Inc.
Ozburn Hessey Logistics
Rite Aid Corp.
Rubbermaid Commercial Products Inc.
Skyline Express
Spahr Metric Inc.
Toray Plastics Inc.
Trex Company Inc.
USA Cartage
Virginia Storage Services
Winchester Cold Storage
World Wide Automotive
Highway Connectivity
Port of
Legislative Update
• 3 Bills creating tax credit incentives
– Transport of cargo by Barge or Rail
– Manufacturers or distributers increasing port use
– International trade facility expansion
Legislative Initiatives
• SB 1282: Barge and rail usage tax credit:
1.) Grants tax credit of $50/TEU for usage of barge/rail to
move cargo.
• HB 2531/SB 1481: Virginia Manufacturer’s
port volume increase tax credit:
1.) Tax credit to VA businesses engaged in manufacturing
goods or the distribution of manufactured goods that use VA
port facilities & increase their port volume by 5% in a single
Legislative Update
• SB 1136: International trade facility tax
1) Grants an income tax credit equal to $3,000 for every
employee hired by Virginia shippers that results from
increased cargo moving through a Virginia cargo facility
2) 2 % of any capital investment made by a Virginia
shipper to facilitate increased cargo moving through a
Virginia cargo facility operated by the VPA.
Port of Richmond Opportunities
• Container Yard
• Port of Call/ Bill of Lading
• Creates tremendous opportunities for
warehousing and distribution centers
and/or manufacturing
Selected Distribution Facilities
Located in Virginia
How Can You Assist?
• Encourage the surrounding location to be supportive
of business that would use the Port of Richmond
• Develop a comprehensive study to access the
industrial section of Richmond being better
utilized/affiliated with global trade
• Encourage incentives on local levels
• Connect with local economic development groups
• Remain engaged in the success of the Port of
• Remain affiliated with Richmond MPO
• Support our Governor and Secretary of Transportation

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