Economy

Ports/Maritime

Port/Maritime

The Port of Hampton Roads is widely regarded as one of the top deepwater harbors on the East Coast. With channels reaching 50 feet in depth and year-long freedom from ice, the Port of Hampton Roads can accommodate ships of all sizes and purposes, from the largest of container ships to the cruise ships that dock at the Norfolk Terminals. Currently the Port of Hampton Roads sees interaction with over 300 different ports in more than 100 countries.

Why is This Important?

Port activity has a substantial economic impact on the Hampton Roads region. The Virginia Port Authority alone averages yearly operating revenue of more than $250 million. Operations of this size translate to significant impact on local area income and employment. A 2008 economic impact study estimates that port operations generate $12.3 billion in local output, $4.1 billion in employee compensation, and 100,244 in total employment.

How is Hampton Roads Doing?

The Port of Hampton Roads experienced a significant decline in tonnage and twenty-foot equivalent units (TEUs) shipped as a result of the national "Great Recession." TEU totals had been down nearly 400,000 units from their 2007 peak of 2.1 million, but growth in all areas has resumed as the economic recovery takes hold and expansion projects around the port are completed. General tonnage increased 2.3 percent from 2009 to 2010 and TEUs increased 7 percent over the same period. The Port of Virginia website has the latest monthly results.

Activity in the port is managed principally by the Virginia Port Authority, which oversees Virginia International Terminals, Inc. in its operation of the Newport News Marine Terminal, Portsmouth Marine Terminal and the Norfolk International Terminals. Numerous coal and oil terminals also dot the harbor, and the new APM/Maersk Terminal will usher in a new era of maritime financing and construction.

Among the ports in the United States, the Hampton Roads Port has the 7th highest volume of cargo. In its peer group, however, it still trails New York / New Jersey and Savannah in this category.

Port of Hampton Roads Cargo Summary, Tons of Cargo

	2004	2005	2006	2007	2008	2009	2010
General Tonnage	14,857,683	15,964,018	16,583,479	17,726,251	17,833,147	14,908,490	15,322,702

In 2004, 81 million tons of freight were transported into the Hampton Roads area from within North America alone. Another 48 million tons left Hampton Roads destined for various locations around the continent. Sixty-eight percent of freight transport in and out of the port area was by truck in 2010. Despite the easy access to rail and air services provided by Norfolk International Airport's freight terminal and four rail providers nearby, the ability of truck transport to reach so many destinations gives it an advantage over other forms of transportation.

As the capacity of the port increases, the capacity of storage facilities and available transportation must increase as well. Estimates from 2004 put the available warehouse space in the Hampton Roads area at 14.6 million square feet, 29 percent of which was still available. Port activity into the future will largely be influenced by the ability of the Hampton Roads region to manage the timely storage and transportation of an increasing volume of freight. The price, availability, reliability and expediency of freight transportation to and from the port are major decision factors influencing the structure of the transportation system.

Another influence on activity comes from the ease with which more complicated foreign transactions are allowed to take place. The Port of Hampton Roads contains a number of Free Trade Zones that allow for the re-exportation of merchandise, as well as attractive international duty policies.