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3rd Quarter 2009
Maritime, Logistics, Warehousing and Distribution
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General Overview
Source: HREDA research
• 2nd largest Metropolitan Area between Washington D.C. and Atlanta, GA
• Centrally located along U.S. East Coast
• Civilian labor force of over 800,000
• Over 96,000 students from 8 universities and 4 community colleges
• 75% of the U.S. population is within 750 miles or 1,200 kilometers of Hampton Roads
• Unobstructed ice free harbor with 50 ft deep channels located 18 miles from the open ocean
• Weekly ‘First-in’ service from Asia providing 22-day transit between vessels’ last of port of call in Asia and Virginia
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Population
Source: U.S. Census Bureau
Total Population: 1.6 million
James City County
62,414
Williamsburg 12,481
Gloucester County38,656
YorkCounty61,027
Newport News179,614
Poquoson11,829
Hampton145,494
Southampton County18,480
Isle of Wight County35,472
Suffolk82,302
Chesapeake220,111
Virginia Beach433,746
Portsmouth100,577
Norfolk234,220
Franklin8,877
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Shipbuilding & Ship Repair
Above: A 700-ton island is being placed on the flight deck of the George H.W. Bush—the nation’s newest and most advanced nuclear-powered aircraft carrier—at Northrop Grumman Shipyard
Additional Shipbuilders & Ship Repair Companies• Associated Naval Architects, Inc.• Berkeley Machine Works & Foundry Company, Inc.• Colonna’s Shipyard, Inc.• Earl Industries, LLC• Lyon Shipyard, Inc.• Marine Hydraulics International, Inc.• Metro Machine Corporation• Norfolk Naval Shipyard
Sources: Port of Hampton Roads Annual 2007; Harvard Business School, Cluster Mapping Project, Institute for Strategy and Competitiveness, 2002; Northrop Grumman Website
According to a study by the Harvard Business School, the Virginia Beach-Norfolk-Newport News MSA ranked #1 in shipbuilding and ship repair in the United States and is home to over 22% of the nation’s shipbuilding employees
Major Shipbuilders
Northrop Grumman Newport News
• 550-acre facility
• 155,000 sq. ft. foundry, one of the largest in the U.S.
• Possesses the largest dry-dock in the Western Hemisphere; measuring 2,173 ft. long and 250 ft. wide
BAE Systems Norfolk Ship Repair
• One of the largest ship repair facilities on the East Coast
• Features one of the world’s largest and most modern floating steel dry-docks
Davis Boat Works • 250 ton Marine Travelift, one of the few in commercial operation in the world
Pictured Below: Norfolk Shipbuilding and Dry-dock
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Located just 18 miles from the open ocean, the Port of Virginia in Hampton Roads is home to the best natural deepwater harbor on the East Coast with its unobstructed, ice free harbor and 50 feet deep channels
The Port of Virginia handled over 2.0 million TEUs in 2008, a
2% decrease from calendar
year 2007.
Source: The Virginia Port Authority; 2007 Hampton Roads Maritime and International Trade Guide, Craney Island Marine Terminal Economic Impact Study, Moffat & Nichol, 2004
The Port of Virginia
Additional Terminals:•APM Terminals Virginia•Elizabeth River Terminal•Lamberts Point Docks•Kinder Morgan Terminals
Currently, there is 26.5 million sq. ft. of distribution space in Hampton Roads. With the expansion projects underway or proposed by the Port, an additional 20 to 60 million sq. ft. will be needed to handle cargo by 2030.
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The Port of Virginia is served by 20 steamship lines offering weekly service to Europe and Asia
Sources: The Virginia Maritimer, May/June 2006, July/August 2006; Port of Hampton Roads Annual 2007; Company Websites
An estimated 70% of the Virginia Port Authority’s business is now secured with 10-year contracts, including shipping lines such as The Grand Alliance, CKY, China Shipping, Turkon, MSC, ACL and most recently CMA CGM and Emirates Shipping Line
Shipping Lines
Sampling of Hampton Roads shipping companies:
* CMA CGM, ZIM Integrated Shipping Services and MAERSK Line Limited are headquartered in
Hampton Roads
7Sources: Virginia Port Authority; MSAonline.com; Maersk Shipping; 2006 Hampton Roads Maritime and International Trade Guide
APM Terminals has opened Phase I of its $450 million, 575-acre facility in Portsmouth. This is the USA’s first privately developed container terminal and is one of the largest and most advanced
container facilities on the North American East Coast.
Norfolk International Terminals (NIT)
Phase I
• 3205 ft. berth
• 55 ft. water depth
• 1 million TEU capacity
• 8 cranes
• 30 RMGs
• 6 on-dock rail tracks
• Completed: September 2007
Final Build-Out• 4,000 ft. berth• 2.16 million TEU capacity• 10 cranes• 60 RMGs• 12 on-dock rail tracks• Anticipated completion: 2017 • Phase II, Stage 2 of the Backlands Renovation is currently underway
(25 acres)
• North Yard Expansion and North Wharf Extension includes:• Extending the north wharf 800 ft.• Adding a 2nd ship berth• Renovating and improving 30 acres of container yard• Purchasing container handling equipment• Constructing a new truck interchange
The project will increase the capacity of NIT North by 34 percent
APM Terminals Virginia
Current Port Expansion Projects
APM Terminals facility welcomes 3rd party business
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Craney Island ExpansionThe Port of Virginia’s 4th Terminal - Upon completion, the fourth terminal will have the capacity of approximately 2.5 million TEUs and an on-terminal intermodal rail loading facility
Phase I: Proposed completion 2019•300 acres•2 berths•6 cranes
Phase II: Slated for completion in 2033•600 acre facility•8 berths•15 Suez-class container cranes
Road and RailConnection to
Route 164
CIDMMA
ProposedThird Crossing
Source: Virginia Port Authority
The current 50 ft. dredging project of the shipping channels is nearing completion and portions of the 55 ft. dredging project (including the 60 ft. Atlantic Ocean channel) have been authorized.
Future Expansion of the Port
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Half Moone Cruise and Celebration CenterCompleted in March 2007 with 80,000 sq. ft. of passenger and event space, the terminal is the first in the U.S. to fully comply with current Homeland Security standards.
Carnival Cruise Lines and Royal Caribbean make the new Half Moone Cruise and Celebration Center a home port
Sources: Virginia Business Magazine; Half Moone Cruise and Celebration Center Website; ShipsandCruises.com
Passenger Cruise Industry
Half Moone Cruise Terminal
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Maritime and Transportation Center• Recently announced the launch of the Maritime and Transportation
Center in conjunction with 30 partners that cross business, government, industry, military and education
• Over the next year the Maritime and Transportation Center will:• Identify the most pressing workforce development needs in maritime
and transportation industries• Identify current education and training programs to aid maritime and
transportation workforce needs• Develop identified educational programs
Apprentice SchoolProprietary shipbuilding school for individuals interested in a career with Northrop Grumman• Curriculum is divided into two sections:
• World Class Shipbuilder• Trade Related Education
• Qualified apprentices may elect to pursue studies in advanced programs in design, production planning, and advanced shipyard operations
• Over 800 apprentices enrolled
Old Dominion University
Sources: Old Dominion University, Northrop Grumman, TCC
Educational Resources
The Maritime Institute Provides specialization for students in the maritime field, which includes shipping, ports and logistics management
Graduate Level• Concentration in maritime and port management is integrated into the
school’s MBA and MPA programs• Students learn the roles of terminals and ports, the business of shipping,
commercial processes, port planning and design processes and logistics• Electives are also available through the Master of Arts in Economics curriculum
Undergraduate Level• Maritime and Supply Chain Management Undergraduate Major
• ODU is the 2nd university in the country to offer at the undergraduate level• Specialized coursework including international shipping, supply chain and
logistics, shipping management and port management along with similar elective options
11Sources: Port of Hampton Roads Annual 2006; Company Websites
Logistics, Distribution And Warehousing
Major Warehouse Providers
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Distributors (250+ Employees)
Employment Facility Size (sq. ft.)
Lillian Vernon 200 300,000
QVC (Suffolk) 1,000 1,000,000
Ferguson Enterprises 800 140,000 (HQ)
AAFES Dan Daniels 800 1,295,000
SYSCO Food Services 490 300,000
Cost Plus 225 1,000,000
Dollar Tree 650 114,000
Target Corp. 300 1,788,000
US Food Service 300 202,000
Chesapeake-Noland Company 1,300 95,000
Wal-Mart 600 2,054,000
Given the combination of strategic location, superior transportation options and plentiful real estate, Hampton Roads has become a preferred
location for major distributors.
Sources: Company Websites, HREDA Research, The Virginian Pilot, Co-Star Real Estate
The above table is just a sampling of corporations with distribution centers in Hampton Roads and is by no means a complete list
Major Corporate Distribution Centers
Logistics, Distribution And Warehousing
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Hampton Roads is linked to domestic markets by one of the country's most modern interstate and state highway systems. Interstate 64, a major east-west route, encircles the metropolitan area and connects Hampton Roads to I-95—a principal north-south route. Additionally, U.S. Routes 58 and 460 connect Hampton Roads to I-95 and I-85. To the East, the Chesapeake Bay Bridge Tunnel saves 90 miles to the New York/New Jersey corridor and gives coastal highway traffic direct access to Hampton Roads.
Rates are an estimate based on a full truckload with 52 stackable 4 ft. x 4 ft. pallets with total weight of 10,000 lbs.
Sources: Virginia Department of Transportation; Virginia Port Authority, January 2008; Travelnotes.org; FreightQuote.com
Trucking
Hampton Roads’ Interstate System
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Hampton Roads is served primarily by the rail transportation giants Norfolk Southern and CSX. The Port of Hampton Roads creates a perfect entry location for these railways to distribute throughout the East Coast and the Midwest.
Efficient connections with other rail systems and motor carriers provide easy and affordable access to the rest of the U.S.
CSX Corporation
• Offers a variety of rail, container-shipping, intermodal, trucking, barge and contract logistics management services
• Operates over 22,000 miles of track in 23 states as well as the District of Columbia and two Canadian provinces
• VA recently approved plans to help fund improvements that will expedite rail travel between Portsmouth and Atlanta and the Southeast by:
• Providing double-stack freight service over a 560-mile market
Norfolk Southern Railway• Headquartered in Hampton Roads• Operates more than 21,200 miles of track in
22 states primarily in the Southeast and Midwest U.S., as well as Ontario, Canada
• VA recently allocated $22.3 million to help fund improvements to NS’s Heartland Corridor which will ultimately expedite distribution to the Midwest by:
• Raising 28 railroad tunnels between Hampton Roads and Ohio to allow double stacked trains
• Shaving 233 miles off of NS’s main route between Norfolk and Chicago, cutting off 1.5 days of travel
Sources: Virginia Department of Rail and Public Transportation; Norfolk Southern; CSX; The Virginian Pilot; 2008 Hampton Roads Statistical Digest
Hours include positioning and handling
Major Rail
15Sources: Norfolk International Airport, August, 2008; Newport News Williamsburg Airport, 2008; 2006 Hampton Roads Maritime & International Trade Guide
Hampton Roads is serviced by the Norfolk International Airport, and the Newport News/Williamsburg International Airport.
Both airports are currently undergoing extensive expansion projects.
• Handled over 64 million pounds (29 million kilos) of air cargo during 2008
• Houses two ultra-modern Air Cargo Terminals• Current expansion projects will boost the complex
from 88,000 sq. ft. to 120,000 sq. ft.• Provides speedy clearance by the Airport Customs
Broker through the use of the Automated Broker Interface (ABI) and the Automated Commercial System of U.S. Customs
• Current or recently completed improvement projects include:
• New general aviation terminal• New air traffic control tower• New hangars, extended ramps and runways
• Over 73,440 pounds (33,312 kilos) of air cargo passed through the airport in 2008
Newport News/Williamsburg Intl. Airport (PHF)Norfolk Intl. Airport (ORF)
Air Cargo
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“As a Fortune 500 company with a global market, Norfolk Southern Corporation is proud to call Hampton Roads home. A business friendly region, Hampton Roads is populated by a talented, diverse workforce and it offers an outstanding quality of life. The region’s educational institutions are among the finest in the Commonwealth. From a world-class symphony and museum to scores of other artistic and entertainment values, its cultural abundance provides an array of options for our people outside of work.”
Wick MoormanCEO, Norfolk Southern Corporation
"What better place than Hampton Roads stands out as a site for this relocation? Hampton Roads has the largest concentration of skilled and highly competent marine specialists on the East Coast, and is ideally situated for a parts distribution center for America's service needs.”
Jack FinneganPresident, MacGREGOR (USA), MacGREGOR Group
“Southeast Virginia is seen as a strategic location for NYK Logistics’ major East Coast presence. Centrally located with excellent port facilities and infrastructure, our expansion here further enables us to provide a full complement of logistics services for our clients. That, combined with a talented workforce and a business-friendly community, made this an easy choice.”
Lane TurnerPresident, Warehouse DivisionNYK Logistics Inc
Hampton Roads Logistics Business Community
“We are absolutely thrilled with the people from the community we can call team members. I can’t say enough about their work ethic. It has always been easy to recruit talented people here.”
Mark IrvinGeneral Manager, Suffolk Location
Target Import Warehouse
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