Volume 76, No. 6June 2012

Published by the Virginia Maritime Association, Norfolk, Virginiaemail: vma@portofhamptonroads.com • web site: www.VAMaritime.com

APM Terminals’ Submits Unsolicited Proposal to Operate the Port of Virginia

APM Terminals has submitted an unsolicited proposal to operate the state-owned marine terminals for 48 years. Should Virginia accept this proposal, the effect will eventually be felt by most, if not all, of VMA’s members. To the extent possible, VMA will be gathering information and providing updates in an effort to keep our members informed.

• Reactions-VMAhasheardfrommembersexpressingavarietyofopinionsandpositions.MostofthememberscontactingVMA are seeking answers to questions about the impacts to their business and the long-term posture of the Port. • Membership Questions - The VMA will make every effort to address these concerns and present reliable information. From the standpoint of your business, please let us know what issues and questions should be addressed as the PPTA Office, Steering Committee, and Secretary of Transportation consider this proposal. Please direct responses to Janice Klasek at janice@ portofhamptonroads.com. • ProposalSummary

o The state would give APM Terminals a 48-year concession for the operation of the Port of Virginia facilities of Norfolk International Terminal (NIT), Newport News Marine Terminal (NNMT), Portsmouth Marine Terminal (PMT), and Virginia Inland Port (VIP).

o In exchange for the 48-year operating concession, APM Terminals would: 1. Turn ownership of the APM Terminals Facility in Portsmouth over to the State. 2. Make an up front payment. 3. Make annual fixed concession payments. 4. Make variable payments based on revenue. 5. Make capital investments in port facilities. 6. Pay property taxes, corporate income taxes and business license fees.

o APM Terminals has estimated the value of their proposal to be between $3,162 billion and $3,912 billion.

o ReviewtheproposalandrelatedinformationonVMA’swebsiteatwww.VAMaritime.com. • ProcessSummary

o APM Terminals submitted their proposal to the Virginia Secretary of Transportation, Sean T. Connaughton, under the Public-Private Transportation Act of 1995 (PPTA).

o PublicInvolvement–PubliccommentsaretobesubmittedtoRyanPedraza,ProgramManager,OfficeofTransportation Public-PrivatePartnershipsat600EastMainStreet,Suite2120,Richmond,Virginia23219.ByE-mailatryan.pedraza@ vdot.virginia.gov.

o Evaluation – Proposal evaluations and recommendations will be made by the PPTA Office and a Steering Committee to be appointed by the Secretary of Transportation.

o Selection & Award - The Secretary of Transportation decides whether to award a contract.

Continued on page 2

2

VIRGINIA MARITIMEASSOCIATION

OFFICERSChairman of the BoardCapt J. William Cofer

Presidentthomas W. Godfrey, Jr.

ViCe PresidentsJoseph a. dorto

raymond a. newlonshirley G. roebuck

exeCutiVe ViCe President & seCretaryarthur W. moye, Jr.

treasurerJudy m. Barrett

assistant treasurermichael W. Coleman

STAFFViCe President

david C. White

aCCountinG manaGer/Controllersam davis

exeCutiVe assistantJanice s. Klasek

eVents CoordinatorJennifer n. Parham

shiPdesK ClerKlynne h. stonum

memBershiP/PuBliCationCoordinator & editor

susan n. Wisniewski

ANChOR MEMbERSbranscome, Inc.CSX Intermodal

Maersk Line LimitedMcAllister Towing of Virginia

TownebankVirginia International Terminals

Virginia Pilot AssociationVirginia Port Authority

maritime Bulletin is published12 times a year by

Virginia maritime association.subscriptions are available through

membership in the association.

recipient of Presidential “e” and“e star” awards for excellence in export service

recipient of asae Communicationexcellence & honorable

mention award

Chinese Eases ban on Virginia Logs

IN THIS ISSUE

1 APM Terminals’ Submits Unsolicited Proposal to Operate the Port of Virginia

2 Chinese Eases Ban on Virginia Logs

3 Maritime News

4 Port Statistics

5 News Briefs

6 VMA Highlights

7 Membership News

May 24, Governor Bob McDonnell announced China has agreed to a six-month pilot project to re-open the Chinese market to Virginia’s hardwood and softwood log exporters. Under the program, Virginia export logs will be

allowed to re-enter China with enhanced pest treatment and testing protocols to the ports of Shanghai and Jiangsu beginning June 1, 2012.

China banned both hardwood and softwood log exports from Virginia and South Carolina in April 2011, citing pest interceptions on logs exported from the United States.

For the past year, Governor McDonnell, Secretary of Agriculture & Forestry ToddHaymore,andtheVirginiaDepartmentofAgricultureandConsumerServices(VDACS)staff worked to resolve this trade barrier. In May of 2011, the Governor extended an invitation to technical experts from China to visit Virginia, to see first-hand how logs are harvested, inventories, and undergo treatment or testing to prevent unintended transport of pest organisms.

VDACSputtogetheracomprehensiveprogramfortheteamofofficialsfromChina’sInspection and Quarantine Bureau (CIQ) including site visits that highlighted thequality, safety and security of log exports from Virginia. The Commonwealth, working togetherwithstafffromUSDAAPHIS,theVirginiaPortAuthorityandmembersoftheprivate sector, was able to effectively demonstrate the effectiveness of treatment, tracking and inspection protocols currently in place to guard against unwanted pests in log shipments.

Virginia’s forestry industry contributes more than $24 billion in revenue for the state’s economy. In 2011, the value of Virginia’s log exports was estimated at nearly $57 million, down $10 million from 2010. Prior to the ban, Virginia was a major East Coast supplier of logs to China, the world’s largest log importer.

oKeyDates:

April 4 – APM Terminals’ proposal was submitted to the Secretary of Transportation. May 22 - The Virginia Port Authority Board of Commissioners were informed of the proposal. May 23 - The office of the Secretary of Transportation issued a press release making the proposal known to the public. The same press release included a request for alternative proposals. July 12 - The deadline for other interested parties to submit alternative proposals. July 30 - The Secretary of Transportation may enter into negotiations with APM and any private entity that submitted an accepted alternate proposal. January 1 - Date APM Terminals has proposed to assume the operations of the state-owned facilities.

APM Terminals’ Submits ProposalContinued from page 1

3

MARITIMENEWS

New and Improved 511 Virginia Traffic Information System

Governor McDonnell announced on May 23, 2012, the Virginia Department ofTransportation(VDOT)launchedthenextgenerationof511trafficinformation.Motoristscan download a free mobile app that will give them real-time traffic information. 511

is a one-stop resource for information about road conditions, traffic congestion and highway construction projects.

The 511 information is provided byVDOT’s Transportation Operation Centers (TOCs) and is updated as soon as they receiveemergency roadconditionsor incidents. Upcomingconstructionzonesandbridgeopeningsareposted24-hours inadvance.There are three ways to access the 511 information: 1) Visit www.511virginia.org; 2) Call 511 from any phone; or 3) 511 SmartPhone app for iOS and Android devices.

“Virginia is a leader among state departments of transportation in providing real-time traffic information and live streaming traffic imagestohelpmotoristsmakethebesttravelchoices,”saidMcDonnell.“Thenewandimproved511systemempowersdriverswiththe knowledge they need to avoid congestions and take a faster route to their destinations”.

512 X 512

29 X 29

57 X 57

June12,GovernorBobMcDonnellannouncedtheexpansionofamajorsoybean export agreement between Perdue Agribusiness, owner and operatorofadeepwaterexportfacilityinChesapeake,andtheDandong

PortGroupandDandongPasiteGrainandOilseedCo.ofDandong,China.

The original agreement between the two groups was signed in September 2011whereDandongpurchasedfivePanamaxvesselsfilledwithsoybeansfrom Purdue’s 2011 crop. Each vessel holds approximately 55,000 metric tons, or about 2 million bushels, of soybeans. The first shipment of 2011 crop was worth approximately $25 million. In the expanded agreement, Dandongwillpurchaseupto10PanamexvesselsofsoybeansfromPerdue’s2012 crop.

“I am pleased to expand our already solid business relationship with PerdueAgribusiness,”saidMr.WenliangWang,ChairmanoftheDandongPortGroupandDandongPasiteGrainandOilseedCo.“Perduehasbeena valuable partner in our expanding soybean import growth and we look forward to continue working with the company in the coming years.”

Inadditiontothenewexports,PerdueandDandongagreedtotermsonanagronomiccooperationthatwillassistDandong’seffortstoimprovethequalityofanimalfeedstockinDandong’ssoybeancrushingandsoymealproductionfacilities.

Since 2010, the Governor has worked with a number of the Commonwealths’ agribusinesses to help secure millions in new agricultural exports, including soybeansandwine shipments toChina,beef cattle toCanada,dairy cattle toRussia, andwine,seafood, and specialty foods to the European Union.

Agricultural exports from Virginia reached an all-time high of $2.35 billion in 2011. Agriculture and forestry are Virginia’s largest industries, with a combined economic impact of $79 billion annually, $55 billion from agriculture and $24 billion from forestry. The industryalsoprovidesapproximately500,000jobsintheCommonwealthaccordingtotheWeldonCooperCenterforPublicServiceat the University of Virginia.

Perdue Agribusiness to Ship 550,000 Metric Tons of Soybeans to China

Photo by: Perdue Agribusiness - Chesapeake, VAVessel unloaded last November in Dandong China

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5

NEWSBRIEFS&ANNOUNCEMENTS

VPA and USACE Committed to Craney Island

Clean the bay Day

OnTuesday,June5,VPAExecutiveDirectorJerryBridgesandU.S.ArmyCorpsofEngineersNorfolkDistrictCommanderColonelPaulOlsensigned the Project Partnership Agreement (PPA) for the Craney Island

Eastward Expansion project. This agreement solidifies the unique federal/state partnership and cost sharing agreement between the two agencies.

This dual-purpose project will extend the life of Craney Island as a dredged material management area and also provide land for the construction of a new marine terminal. Craney Island Dredged Material Management Area(CIDMMA) is utilized todisposeofmaterial dredged from localwaterwaysin order to provide ships with an economically efficient, reliable, and safe navigation system.

The Craney Island Eastward Expansion and Marine Terminal project will have significant impacts on the local, regional, and national economy, with $5 billion in cumulative economic impacts to Virginia annually.AndwithaBenefit-CostRatioof6.2to1,theprojectwillalsogenerate$16billioninNationalEconomicDevelopment(NED)benefits.

Construction will generate 1,176 jobs and $37 million in annual wages; and Terminal and Transportation Operations will create 28,000 new port related jobs and more than $870 million in annual wages; and increased distribution center activity will produce $2.7 billion annually, with 26,000 new jobs and $788 million in wages.

A video of the PPA signing ceremony is available on the Corps’ YouTube Channel. For more information on the Craney Island Eastward Expansion and to sign up for the project newsletter, go to www.craneyisland.info.

Clean theBayDaywas started23 years agowhen asmallgroupofconcernedcitizens inVirginiaBeachdecided they weren’t going to allow their waterways

to continue to deteriorate. The program has since grown into one of the largest volunteer programs in Virginia.

On June 2, 2012, 6,500 volunteers removed 150,000 pounds of debris along 500 miles of shoreline throughout the Commonwealth in support of the Chesapeake BayFoundation’s(CBF)24thannual“CleantheBayDay.”

TheCBF,withitsheadquartersinAnnapolis,MD,istheonlyindependent organization dedicated solely to restoringandprotectingtheChesapeakeBayanditstributaryrivers.ItsmissionistorestoreandsustaintheBay’secosystembysubstantially improving the water quality and productivity of the watershed.

The Virginia Port Authority hosted the clean-up at Plum Point Park and the beach adjacent to APM Terminals. A total of 95 volunteers helpedremove15,000poundsoftrashfromtheElizabethRiverfromtwosites!Theireffortswouldnothavebeensuccessfulwithoutthe sponsoring partnership of CSX, HEPACO for the use of their boats to get volunteers across the river to clean the beach by APM Terminals, and MHI for the use of their parking lot and piers.

VPA Executive Director Jerry Bridges and U.S. Army Corps of Engineers Norfolk District Commander Colonel Paul Olsen

Photo by: Virginia Port Authority

VMA HIGHLIGHTS

6

Committee UpdateShIPPERS COMMITTEE and FREIGhT FORWARDERS/CUSTOMhOUSE bROKERS COMMITTEE (May 2): Duringthis joint meeting, the two committees received updates on container terminal operations, changes in steamship line services, the chassis pool, and ILA labor negotiations. The committees also received a presentation on court appeals of CBPprotestdenialsforassessmentofduties. Issuescoveredincluded administrative remedies for customs-related penalties, customs litigation following protest denial, and challenges to customs regulations.

TOWING & bARGE OPERATORS COMMITTEE (May 9): The agenda of the May 9 meeting included updates on regularly discussed topics like dockside inspections for towing vessels, the development of new regulations under “Subchapter M” governing towing vessel operations, and bridge operations at the Berkley Bridge and Gilmerton Bridge. Other topicsincluded ballast water and vessel discharge permitting requirements, vessel manning issues, a presentation on OpSail 2012 maritime operations, and a presentation on plans to “float in”thespanattheGilmertonBridgereplacementproject.

MARITIME bRIEFINGS COMMITTEE (May 21): In preparation for the June Maritime Briefings Breakfast “Bringing theBreakbulk,”thecommitteemadeseveraldecisionswithregardto the flow of the event, the breakfast menu, registration costs and sponsorships.

INLAND TRANSPORTATION COMMITTEE (May 22): The agenda of the committee meeting included updates on efforts by VIT to improve trucker turn times, developments related to the chassis pool, and information about a test pilot program to reduce instances of tail lights failing to operate. Most of the meeting was dominated by a discussion of tolling to build the Midtown Tunnel expansion and future projects in Virginia. Expressing concerns about the costs to truckers and impacts on Virginia’s competitiveness, the Virginia Trucking Association and Tidewater Motor Truck Association have adopted positions opposing the tolls. The committee was presented with information about a proposed lawsuit that would challenge the tolls as unconstitutional.

The Association In Action

Each May, much effort goes into delivering three of the Association’s signature events: the International Trade Symposium,theAnnualMaritimeBanquetandtheAnnual

Maritime Golf Outing. These events attract business leaders and customers from across the country, showcasing the Port and providing opportunities for VMA members to network and conduct business. At the same time, your trade association continues to represent the interests of the maritime industry in a variety of settings.

On May 2, VMA’s Art Moye participated in a panel discussion about labor relations in the Port presented by the Hampton RoadsGlobalCommerceClub.

The VMA represented the interests of our membership at the May 10-11 semi-annual meetings of the Maritime Information Systems of North America (MISNA). As a member of MISNA, the Association works with other maritime associations and exchanges to develop vessel information services we can offer to international and national constituents as well as our respective local members. The meetings also provide an opportunity to exchange ideas and share best practices with similarorganizationsfromotherports.

May 14, the James River Partnership held its annualmeetingto discuss issues of importance to those parties involved in themovement of waterborne commerce on the James River.Similarly to the Hampton Roads Navigational Summit, thefocusoftheJamesRiverPartnershipistoworkwithallrelativestakeholders toward the goal of “Unrestricted Navigation”.

Working with the Maritime Incident Response Team (MIRT),the Association again provided support and helped with the administration of the 21st Annual Hampton Roads MarineFire fighting Symposium held May 14-18. Over 80 firefighters participated travelling from as far away as Singapore to attend this event.

May 31, the VMA presented a Certificate of Appreciation to Colin Macpherson at a farewell event held for him by Capes Shipping Agencies. Mr. Macpherson resigned from his position as president of Capes Shipping to accept a position with a new company in New Orleans. Mr. Macpherson achieved respected leadership roles in the Virginia Maritime Association, HamptonRoadsShippingAssociation,andHamptonRoadsCoalAssociation and made many contributions that benefited the Port and Virginia’s maritime industry.

MEMBERSHIPNEWS

7

VmamemBer Benefits

Endurance Network ServicesDiscount pricing on

computer network services.

Contact Blake White 216-1374

OptimahealthCompetitive rates and Value-added Benefits for health insurance.

Contact Jim Blassingham 533-4655

E-DentalGroup level dental Benefits

offered on an individual basis.

Contact ross Winfield 340-9777 ext. 355

Retirement Needsretirement plan evaluations

for business owners and trustees.

Contact Jim Blassingham 533-4655

Discounted Room Rates for Members and Guests

Visit Vamaritime.com for discount information.

C V International, Inc.Freight Forwarders & Customhouse Brokers

1128W.OlneyRoadNorfolk, VA 23507

Ms.VenetiaD.Huffman(757) 466-1170; (757) 466-1823vhuffman@cvinternational.com

ECPI UniversityEducational Institute

5555GreenwichRoad,5thFloorVirginaBeach,VA23462Ms.DonnaL.Zazanis

(804) 690-9511dzazanis@ecpi.edu

Waterway Surveys & Engineering, Ltd.Engineers/Naval Architects/Surveyors and Appraisers

312 Cleveland PlaceVirginiaBeach,VA23462

Mr.RonG.Vann(757) 490-1691; (757) 490-1348

rgvann@cox.net

NEW MEMbERS

identity marketing & promotional, llc757.966.2863 • www.idmktgpromo.com

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NORFOLK, VAPERMIT NO. 1930

236 E. Plume StreetNorfolk, Virginia 23510

P.O. box 3487Norfolk Virginia

(757) 622-2639; FAX 622-6302www.VAMaritime.com

vma@portofhamptonroads.com

Club ContactsCustoms Brokers & int’l freight forwarders assn.

CONTACT: ValSutton•853-1940

hampton Roads Coal AssociationCONTACT: JoeDeMatteo•928-1520

hampton roads Global Commerce CouncilCONTACT: PeterTrocchiano•201-9796

www.hrgcc.org

hampton Roads Traffic ClubCONTACT: MichaelHirsch•485-4799www.HamptonRoadsTrafficClub.org

ODU Maritime Institute Speaker SeriesCONTACT: SaraRussell•683-3964

Organization for Women in Int’l Trade (OWIT)CONTACT: SaraRussell•683-3964

Propeller Club - Port of NorfolkCONTACT: TaylorMiller•440-7214www.PropellerClubNorfolk.com

Tidewater Motor Truck AssociationCONTACT: FrankBorum•494-0276

EdO’Callaghan•450-8484 TroyTibbetts•544-0693

Virginia Ship Repair AssociationCONTACT: SylviaBell•233-7034www.VirginiaShipRepair.org

hampton Roads Traffic Club

Colonial Downs Bus Trip

July 15, 2012 • 10:00 a.m.

For more details please visitwww.HamptonRoadsTrafficClub.org