Richmond’s Future

Mr. Jeff KeeverSenior 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

• Richmond City Council approved the lease• 5 year initial lease with three 5 year options to renew at

$75K/yr• 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

Operations• 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 service

– 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 K-Line

• 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 Orleans

• Easy access to I-81 (North/South) and I-66 (East/West)

• 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 Port– Investment of

nearly $748 Million– Over 8 Million sq. ft.

of buildings– Employment of over

8,000 people66

The VirginiaInland Port

HOME DEPOTOZBURN-HESSEY

Major Companies Located Near VIP

AmeriCold LogisticsBlue Ridge PrestainDuPont Front RoyalEagle Systems Inc.Family Dollar Inc.Federal Mogul CorporationFerguson Enterprises Inc.Ford Motor Co. FortessaFour-U TransportationGE Lighting H.P. Hood Inc. Home Depot (Import DC)Home Depot (High Velocity DC)InterChange GroupJouan Inc.

Kohl’s Corp.Kraft Foods Inc.LennoxM&H PlasticsMIC Industries, Inc.Ozburn Hessey LogisticsRite Aid Corp.Rubbermaid Commercial Products Inc.Skyline ExpressSpahr Metric Inc.SYSCO CorpToray Plastics Inc.Trex Company Inc.USA CartageVirginia Storage ServicesWinchester Cold StorageWorld Wide Automotive

Highway Connectivity

Richmond

Port of Richmond

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 year

Legislative Update

• SB 1136: International trade facility tax credit1) 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

OR2) 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

Richmond• Remain affiliated with Richmond MPO• Support our Governor and Secretary of Transportation