Virginia Port Officials, Buoyed by State's $350 Million Aid, See Bright Future, Some Rough Water
Luke Sharrett/Bloomberg News
PORTSMOUTH, Va. — For port followers, March 22 was a double-header: the Virginia Port Authority board held its every-other-month meeting, immediately followed by the annual State of the Port address.
“The pieces are in place,” said John Reinhart, the authority’s CEO and executive director, toward the close of a presentation that offered a breezy overview of the past year’s highlights, an update on goals and a sort of road map for what lies ahead.
At the board meeting, there was a nearly euphoric sense of gratitude in the wake of the General Assembly’s OK of a $350 million state-backed bond deal – driven by Gov. Terry McAuliffe – supporting the growth of the port’s biggest container terminal, Norfolk International Terminals.
Aubrey Layne, state transportation secretary, suggested at the meeting that it could well become “the shot heard ’round the world,” underscoring the seriousness of Virginia’s commitment to its port and the diversification of its economy.
The celebratory vibe was offset somewhat by reminders of the challenges ahead, inside the port and within the industry.
The authority is $5.6 million in the red for the first eight months of the July-to-June fiscal year; for the same period last year, it was $4.6 million in the black.
In July, McAuliffe heralded a double-digit million dollar, fiscal-year revival at the port – its first operating profit in seven years.
Reinhart said after the meeting that the authority had budgeted for a $100,000 loss for the first six months of fiscal year 2016; it made $726,000 in February, he added.
He tied the disappointing financial results to date to weak volume in November, December and January, coupled with expensive efforts to ensure that the congestion experienced a year ago didn’t recur – costly steps such as extending gate hours and expanding operations at Portsmouth Marine Terminal.
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|By Robert McCabe|
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