email: [email protected] • web site: … · 2018-04-04 · related jobs, representing 9%...
Transcript of email: [email protected] • web site: … · 2018-04-04 · related jobs, representing 9%...
The VMA supports changes that improve competitiveness and bring business to Virginia. However, the VMA believes Virginia is taking the wrong approach as it weighs a change
that would permanently alter the operations, and perhaps the performance, of its most important driver of economic activity, The Port of Virginia.
Throughout Virginia there are over 343,000 port and port-related jobs, representing 9% of Virginia’s workforce and $13.5 billion in annual employee compensation. Port-related activity generates $41 billion in annual economic impact and $1.2 billion in state and local taxes.
Before jeopardizing this economic engine, the state should first conduct a deliberative and open process to determine whether
the Commonwealth is best served by continuing under the operating model that has served it so well for 30 years, making any necessary improvements, or completely changing the operating model by becoming a landlord port and conceding the operations of the state-owned terminals to private companies independent of state control.
If it can ultimately be demonstrated the state-owned terminals would return more value to the Commonwealth under the landlord model, Virginia should set forth a Request for Proposal inclusive of terms that will put Virginia’s priorities and interests first. The State should not make this decision by reacting to proposals that are all structured differently except to be advantageous to the respective bidder.
Volume 76, No. 9September 2012
Published by the Virginia Maritime Association, Norfolk, Virginiaemail: [email protected] • web site: www.VAMaritime.com
Port Labor Agreement and Negotiations Extended
Wrong Approach on State’s Port Deal
In August, the International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) had a breakdown in negotiations to settle on a new master contract
for port labor to replace the one set to expire on September 30, 2012. The Federal Mediation and Conciliation Service (FMCS) intervened and negotiations resumed on September 19th, under the supervision of a federal mediator. During the second day of negotiations under the auspices of FMCS, the parties agreed to a 90-day extension of the current collective bargaining agreement until December 29, 2012.
A press release by FMCS Director, George H. Cohen, stated the ILA and USMX agreed to the extension “to avoid any interruption in interstate commerce.” The extension puts to rest concerns about peak season disruptions in the supply chain that would have resulted from labor actions at ports from Maine to Texas.
The FMCS press release further stated “This extension will provide the parties an opportunity to focus on the outstanding core issues in a deliberate manner apart from the pressure of an immediate deadline. The negotiations on the Master Agreement will be conducted during the same time frame as negotiations
for local agreements. The negotiations will continue under the auspices of the FMCS. Due to the sensitive nature of these high profile negotiations, we will have no further comment on the schedule for the negotiations, their location, or the substance of what takes place during those negotiations.”
At The Port of Virginia, cargo operations are continuing per normal and will remain as such as negotiations between the two sides continue. As part of a contingency planning process, the Virginia Port Authority (VPA) and Virginia International Terminals (VIT), have developed a page on the VPA website www.portofvirginia.com dedicated to providing local, up-to-date information. The page will be maintained through the extended negotiation period and updated as necessary.
The ILA plays a vital role in the flow of international trade and commerce. 14 East and Gulf Ports support 14,500 jobs for ILA members and more than a half million additional jobs directly related to the shipping industry.
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
VPA board Names Oliver Interim Executive Director
Jerry Bridges, the Virginia Port Authority (VPA) Executive Director, will resign his post on October 31, 2012. The news of Mr. Bridges’ resignation was announced by Michael Quillen, the Chairman of the VPA Board of Commissioners, on August
30.
Bridges began working in the port in 2007 and helped guide the VPA through a worldwide economic slowdown.
During his tenure Bridges restructured the agency, helped oversee the VPA’s long-term lease of APM Terminals and became Chairman of the Board of the American Association of Port Authorities.
“In so many different ways Jerry has done a lot of good for this port and for that we thank him,” stated Quillen. “Jerry has been just outstanding to work with, he’s been a principled leader. He’s been very effective with bringing together all the stakeholders in a constructive way,” commented Thomas Godfrey, Jr., President of Virginia Maritime Association (VMA).
The VMA congratulates Jerry for his many successes and achievements elevating the Port of Virginia as a world class port and economic engine for the Commonwealth of Virginia.
VPA Executive Director Departs October 31
USMX’s 43 members – carriers, marine terminal operators and port associations – are committed to protecting the industry’s market share on the East and Gulf Coasts and its ability to compete in a global economy while continuing to provide jobs to ILA members.
In Virginia the ILA provides the waterfront labor at APM Terminals, Lamberts Point Docks, Newport News Marine Terminals, Norfolk International Terminals, and other facilities and union members are represented by the Hampton Roads District Council. Virginia employers of ILA labor are represented by the Hampton Roads Shipping Association.
Port Labor Agreement and Negotiations Extended
continued from page 1
On September 25 the Virginia Port Authority Board of Commissioners named Rodney W. Oliver as the interim executive director of the agency. Oliver will take over for Jerry A. Bridges who is scheduled to step down from the agency’s top position on Oct. 31. Oliver is the VPA’s chief financial officer and the deputy executive director of administration
3
MARITIME NEWS
Comparing Numbers on State’s Port Deal
The lack of transparency and stakeholder involvement, and inconsistencies in the treatment of information have been
some of the primary objections to the process the Secretary of Transportation’s Office of Transportation Public-Private Partnerships (OTP3) has been following to weigh bids to take over operations of the state-owned marine terminals.
Although the conceptual proposals from APM Terminals, the Carlyle Group, and RREEF/Deutsche Bank were released and reported in the press following their presentation at the August meeting of the VPA Board of Commissioners, the State initially withheld a business plan submitted by Virginia International Terminals (VIT). Sometime during the second week of September, the OTP3 quietly posted a link on their website to VIT’s information. With VIT’s information now available, we are able to provide the highlights of all four proposals.
APM Terminals’ proposal calls for a 48-year concession with the VPA in exchange for concession payments ($1.1 to $1.3 million), revenue sharing ($380-$600 million), capital investment ($650-$830 million), tax benefits ($300-$450 million), ownership of APMTVA ($540 million), and residual value of APMTVA ($192 million). APM estimates the net present value of their proposal to be between $3.162 and $3.912 billion.
VIT’s proposal commits to grow container volumes by an average of 6.5% per year over the next five years and to transfer $1.9 billion (net present value) to the VPA over the next 20 years. VIT estimates over the next 48 years the net present value of their cash transfers to the VPA will be $3.7 billion.
The Carlyle Group’s proposal calls for a 48-year concession with the VPA in consideration of which Carlyle would offer an up-front investment ($250 million to $300 million), as well as fixed annual payments ($35 million to $45 million) and participation by the VPA in a profit-sharing program (20% to 30%). Carlyle estimates the net present value of these three cash flow streams to the VPA, is $1.8 to $2.1 billion.
The RREEF/Deutsche Bank proposal calls for a 50-year concession with the VPA for an up-front payment ($400 million), concession payments ($2,948 million), taxes ($372 million), and capital spend ($942 million). RREEF/Deutsche Bank estimates the net present value of their proposal to be $4.661 billion.
The proposals submitted by the Carlyle Group and RREEF/Deutsche Bank have received less attention because they rely on APM Terminals granting them the authority to operate APM’s facility in Portsmouth.
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PORT STATISTICS
4
Vess
els
by
Type
Arr
ive
Sail
Arr
ive
Sail
Arr
ive
Sail
Arr
ive
Sail
BU
LK
AM
ER
ICA
N0
00
00
00
0
Aug
-201
28
mon
th 2
012
Aug
-201
18
mon
th 2
011
FOR
EIG
N14
1411
710
512
1212
212
2
Tota
l Ham
pton
Roa
ds4,
799,
539
35,7
47,5
833,
603,
809
32,3
91,3
36TO
TAL
1414
117
105
1212
122
122
NS
1,84
1,24
013
,869
,632
1,68
3,76
414
,683
,680
Pie
r IX
1,32
9,10
811
,063
,874
869,
163
8,63
1,41
3C
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L
DTA
1,62
9,19
110
,814
,077
1,05
0,88
29,
076,
243
AM
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N1
110
102
224
24
FOR
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5539
839
645
4739
838
7
Exp
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- H
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.4,
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641
34,8
16,6
033,
184,
820
28,9
55,3
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5656
408
406
4749
422
411
NS
1,74
6,89
013
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1,51
9,01
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,437
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r IX
1,31
5,31
011
,009
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781,
204
7,64
2,74
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BO
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1,50
7,44
110
,287
,246
884,
606
7,68
8,16
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00
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116
4,75
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87,9
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831
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149
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412
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192
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210
7810
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GEN
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ICA
N0
010
101
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1
Jul-2
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7 m
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201
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FOR
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862
52
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pton
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0,38
41,
175,
111
167,
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99
8380
118
6453
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Virg
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Por
t Aut
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135
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FOR
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313
124
618
17
TOTA
L3
328
259
1028
27
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201
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Ham
pton
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8,71
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1,82
1,78
147
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$320
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Vess
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by
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BU
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117
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122
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1,24
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3,76
414
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9,10
811
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163
8,63
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110
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,077
1,05
0,88
29,
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243
AM
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ICA
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110
102
224
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ort C
argo
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406
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422
411
NS
1,74
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013
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1,51
9,01
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r IX
1,31
5,31
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,926
781,
204
7,64
2,74
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1,50
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110
,287
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884,
606
7,68
8,16
4A
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00
00
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FOR
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538
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116
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243
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FOR
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124
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17
TOTA
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259
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27
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l-201
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mon
th 2
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Ham
pton
Roa
ds$4
8,71
0,51
028
1,82
1,78
147
,802
,419
$320
,205
,694
RO
RO
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er V
A$2
,024
,980
11,4
43,2
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3,12
8$7
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AM
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ICA
N0
03
20
00
0
FOR
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N8
1056
5510
1063
61
606,865,723$645,562,84$
689,462,392$194,537,05$
latoTTO
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810
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1010
6361
Sou
rce:
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KER
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376
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317
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Cus
tom
s D
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5
NE WS BRIEFS & ANNOUNCEMENTS
Chesapeake Approves Zoning for New Marine Terminal
“On the Right Tracks in the Port of Virginia”
Tueday, November 6, 2012Norfolk Yacht & Country Club
Registration 7:15 AM; Breakfast Served 7:30 AM
Join us for updates and forecasts from CSX and Norfolk Southern about port-related rail business (intermodal, coal, and other products) and their
key rail projects. The presenters will be Jeff Heller, Group Vice President International Intermodal for Norfolk Southern, and Bruce Kuzma, Director
of International Sales & Marketing for CSX Transportation.
VMA’s Maritime Briefi ngs Breakfast
Register On-line www.VAMaritime.com
September 19 the Chesapeake City Council approved the rezoning
application for Georgia-based SeaGate Terminals LLC to operate their shipping and cargo business on 20 acres of waterfront property on the Southern Branch of the Elizabeth River. SeaGate Terminals LLC, a subsidiary of Savannah-based SeaGate Handling Inc., purchased the former Belharbour Station property for $1.8 million in December 2011.
SeaGate handles a variety of materials including wood pellets and liquid chemicals. It plans to use the terminal for short-term storage and the transfer of materials coming in and out of the port.
Some residents in the area have been fighting for residential and retail development in this commercial area adjacent to the waterway for decades. But the rezoning application acknowledged, “Market conditions have changed, making the viability of a project such as the previously contemplated Belharbour Station… unlikely anytime in the foreseeable future.” Whereas changing the zoning back takes advantage of the property’s immediate access to water, rail and interstate highway transportation assets.
“The company is interested in investing in the borough and would seek to fill the 20 jobs with South Norfolk candidates, if qualified,” stated Kevin Glover, President of SeaGate.
VMA HIGHLIGHTS
6
Committee UpdateShIPPERS COMMITTEE (Aug 1): The committee received a presentation by a representative from APM Terminals about their proposal to operate the state-owned terminals. The committee received updates on the ILA negotiations, chassis pools, Midtown Tunnel tolling, recent economic development announcements, cargo volumes, shipline service changes, and operational changes at the marine terminals.
TOWING & bARGE OPERATORS COMMITTEE (Aug 1): Key agenda items included Dockside Exams for Towing Vessels, Hurricane Season Planning, Mariners Expiring Credentialing Forms, Nanticoke River Dredging, and an update on the plans to “float in” the new lift span for the Gilmerton Bridge.
TERMINAL OPERATORS COMMITTEE (Aug 2): The committee discussed APM Terminals’ proposal to operate the state-owned terminals and advanced recommendations for the VMA Board of Directors. Updates were provided on the Southern Branch Deepening Project and the 55-Foot Deepening Project. The committee discussed opportunities for VMA to improve efforts to promote private marine terminals. There was a review and discussion of hurricane preparedness and recovery actions. The committee received an update regarding planned waterway closures to “float in” the new lift span for the Gilmerton Bridge.
OUTINGS COMMITTEE (Aug 8): The focus of the meeting was the planning and preparations for two of VMA’s signature events; the Sept. 20 Maritime Issues Council Golf Classic at Cedar Point Country Club and the Oct. 1 Chesapeake Bay Feast at Norfolk Yacht & Country Club.
MARITIME bRIEFINGS COMMITTEE (Aug 13): The committee discussed several possible topics for future Maritime Briefings. It was decided to invite Norfolk Southern and CSX to speak to port rail business (intermodal, coal, and other products) and their key projects and made other decisions for the event planning.
STRATEGIC PLANNING COMMITTEE (Aug 14 & 28): Continuing on its previous work, the committee developed Guiding Principles and several Strategic Goals for the Association and began preparing a Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis. The SWOT Analysis will help identify focus areas for the Strategic Plan and gaps between where the Association stands today and the Vision for VMA in 2017. Recommendations from the Strategic Planning Committee will not be acted upon unless and until they are approved by the Board of Directors.
MEMbERShIP COMMITTEE (Aug 16): The committee reviewed, discussed and revised a survey to be sent to the VMA membership. The goal of the survey is to obtain information useful in defining the value proposition of membership. The committee then discussed the next steps for delivering the survey to the membership.
55-FOOT PROJECT AD-hOC COMMITTEE (Aug 17): The committee was formed to consider the best way forward and advance the 55-Foot Project. The agenda of this inaugural meeting included an overview of the project, discussion of the commercial interests in dredging deeper than 50 feet, a review of the U.S. Army Corps process and general timelines, and a discussion of next steps and how the committee will perform its work.
The Association In Action
August of 2012 is a month that will be remembered in Virginia’s maritime community for the confluence of significant events that occurred.
In August, the VMA continued to seek information and solicit input related to the unsolicited proposal submitted by APM Terminals to operate the Port of Virginia, the process the state will follow in considering such proposals, and to keep the membership informed on the matter. On August 15, the Association’s Board of Directors adopted a position statement, which was sent to the Governor of Virginia, Virginia’s Secretary of Transportation, Virginia’s General Assembly, the Virginia Port Authority Board of Commissioners, and the press. This was followed by meetings with numerous elected representatives as well as business and community leaders to advance VMA’s position and the maritime community’s concerns. The Association arranged transportation and encouraged
attendance to the August 24 meeting at the State Capitol of the Governor’s Legislative Review Panel for the Port Public-Private Transportation Act. Over 100 people from the port community attended.
On August 22, negotiations broke down between the International Longshoremen’s Association (ILA) and the United State Maritime Alliance (USMX) for a new contract covering dockworkers at East and Gulf Coast ports; the existing contract set to expire September 31. The VMA worked to provide the membership with accurate information.
On August 30, it was announced the Executive Director of the Virginia Port Authority, Jerry Bridges, would leave the Authority on October 31. This announcement of a pending change in leadership at the VPA added another layer of complexity to the issues before the maritime community.
MEMBERSHIP NE WS
7
NEW MEMbERSAPM Terminals
Terminal Operators1000 APM Terminals Blvd.
Portsmouth (23703)Mr.JackM.Craig
757-686-6424 Fax: [email protected]
Atlantic Asset Managent Group, Inc.Asset Management
3900 Bonney RoadSuite 111Virginia Beach (23452)
Mr.WilliamJ.Summs757-461-6867 Fax: 757-499-7071
G & P TruckingMotor Freight Lines/Intermodal
2655 Elmhurst DrivePortsmouth, VA 23707
Mr. Cory J. Coho757-282-1471
TransmontaigneTerminal Operators1310 Priority Lane
Chesapeake, VA 23324Mr. Jay W. White
757-545-9591; [email protected]
Tom James CompanySales/Retail
355 Crawford StreetPortsmouth (23704)
Mr.KurtE.Sayce757-394-3205 Fax: 757-809-7099
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.
Requests for Christmas Donationsto fill Santa’s Sacks
Although Christmas is still many weeks away, the International Seamen’s house is requesting donations for the care packages they prepare for the seamen of the ships arriving in the Port of Hampton Roads during the holiday season.
Items needed include: caps and scarves, *deodorant, *toothpaste, *toothbrushes, disposable razors, *shaving cream, combs, *bath size soap, *shampoo, writing paper, envelopes, pencils/pens, playing cards, socks, and gloves. Also, individually wrapped candy is greatly appreciated. (*Items marked with an asterisk may be purchased in large sizes at Dollar Stores.)
It would be appreciated if the items purchased were received no later than the end of November. The sacks will be filled by the second week in December. Monetary donations are also appreciated.
Mail or bring any of these items to: 1222 W. Olney Road, Norfolk, VA 23507-1395
Any assistance you can offer is greatly appreciated.
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PRESORTED STANDARDU.S. POSTAGE PAID
NORFOLK, VAPERMIT NO. 1930
236 E. Plume StreetNorfolk, Virginia 23510
P.O. box 3487Norfolk Virginia
(757) 622-2639; FAX 622-6302www.VAMaritime.com
Club Contacts
October Club Events CalendarMon Tues Wed Thur Fri Sat/Sun
1 2 3 4 5 6/7
8 9 10 11 12 13/14
15 16 17 18 19 20/21
22 23 24 25 26 27/28
29 30 31
Customs Brokers & int’l freight forwarders assn.CONTACT: Val Sutton • 853-1940
hampton Roads Coal AssociationCONTACT: Joe DeMatteo • 928-1520
hampton roads Global Commerce CouncilCONTACT: Peter Trocchiano • 201-9796
www.hrgcc.org
hampton Roads Traffic ClubCONTACT: Michael Hirsch • 485-4799
www.HamptonRoadsTrafficClub.org
ODU Maritime Institute Speaker SeriesCONTACT: Sara Russell • 683-3964
Organization for Women in Int’l Trade (OWIT)CONTACT: Sara Russell • 683-3964
Propeller Club - Port of NorfolkCONTACT: Taylor Miller • 440-7214www.PropellerClubNorfolk.com
Tidewater Motor Truck AssociationCONTACT: Frank Borum • 494-0276
Ed O’Callaghan • 450-8484 Troy Tibbetts • 544-0693
Virginia Ship Repair AssociationCONTACT: Sylvia Bell • 233-7034www.VirginiaShipRepair.org
Coal Association6:15 James River Country
Club, Newport NewsPropeller Club
5:30-7:30 Networking Event, Norfolk Waterside
Marriott Traffic Club
6:00 Holiday Inn, Greenwich, Steamship Line Night
Virginia Maritime Association26th Annual
Chesapeake Bay Feast4:00 p.m. - 8:00 p.mNorfolk Yacht & C.C.
Ship Repair Assn. with ASNE
11:30 Renaissance HotelPortsmouth
ODU Maritime InstituteSpeaker Series
7:30-9:15 Dominion Tower 4th Floor
Freight Forwarders12:00 Town Point Club
Motor Truck Assn.5:30 Elizabeth Manor CC