The Virginian-Pilot
©
Norfolk
Cargo container volume is expected to drop 6.5 percent in the upcoming fiscal year at the Virginia Port Authority's terminals, according to budget documents released Friday evening on the authority's Web site.
The decline comes amid a slowdown in the national economy that has curtailed shipments of imported goods. A weak dollar has boosted export shipments through Hampton Roads, the East Coast's third biggest container port, but not enough to make up for reduced imports.
Still, the head of the state-controlled agency's operating company will likely see his base pay rise 5 percent.
Joseph A. Dorto, president and chief executive of Virginia International Terminals Inc., is budgeted to receive a salary of $463,108. He is eligible for a performance bonus for up to 65 percent, or $301,020, of that. In 2007, Dorto's bonus was $238,905, or 54.2 percent of his base pay.
The budget documents were published in advance of today's meeting of the authority's board of commissioners. The panel is scheduled to vote on the budgets for both the Port Authority and Virginia International Terminals, or VIT.
VIT expects revenue of nearly $240 million in the new year, down 6.9 percent from the $257.7 million estimated for the current year.
Having fewer cargo containers to move is expected to lower VIT's operating expenses by 4.4 percent, to $40.8 million. Maintenance costs are projected to drop 2.2 percent, as high fuel prices are projected to partly counter lower repair costs as newer equipment is introduced. Accounting and administrative expenses are expected to rise 5.5 percent to $21.3 million, despite a hiring freeze on 20 vacant staff positions.
VIT has budgeted for 457 employees in the new fiscal year. It also hires hundreds of International Longshoremen's Association dockworkers each day.
The Port Authority board requires VIT to disclose the compensation of its three highest-paid employees.
Dorto, 57, also is budgeted to receive a $21,923 automobile allowance and $4,666 for business club dues, in addition to $17,000 that is provided for a life insurance policy. At age 65, Dorto's annual retirement income will be $413,049.
The two other highest paid VIT officials are:
- Richard N. Knapp, chief operating officer, with base pay of $237,359, and a performance bonus of up to 30 percent of his salary, or $71,208.
- Joseph P. Ruddy, director of operations and labor, with base pay of $159,000, and a performance bonus of up to 30 percent of his salary, or $47,700.
Following its practice of the past, VIT did not disclose the criteria used to determine how the three earn their bonuses.
For next fiscal year, salaries for Port Authority and VIT employees are estimated to increase an average of 3 percent.
Reduced cargo volumes are expected to lower the payments VIT makes to the authority. VIT is expected to transfer $55 million to the authority in the new fiscal year, about 18.5 percent lower than the current year. Such payments are used by the authority to upgrade and provide security at its four terminals - in Norfolk, Portsmouth, Newport News and Front Royal.
The authority's operating expenses are projected to be $79.8 million, about the same as the current year. Of that, $48.5 million is for debt payments for terminal and equipment projects. Security costs are projected to rise 13.2 percent to $9.9 million, because of the addition of five police officers and increased maintenance costs.
The authority is budgeting for 157 employees starting July 1.
Other issues up for consideration today by the 12-member authority are:
- Giving $12.5 million to Craney Island Design Partners for the second phase of design work for the authority's proposed $2.2 billion cargo terminal on Portsmouth's Craney Island.
- Buying nine electric cargo container handlers at a cost not to exceed $10 million.
- Approving the issuance of a $65 million "bond anticipation note."
Gregory Richards, (757) 446-2599, gregory.richards@pilotonline.com
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Good job
I disagree with the previous comment. Of course how much this exec is getting is very relevant to this story. And so good job, Pilot, for not keeping it a secret. The cargo goes up or down and this guy still always gets his cushy package. The salary was part of the budget so very relevant.
And the point of another previous comment is well-taken. They're getting tens of millions of dollars a year from our fuel taxes. This is money coming into state terminals, so it's public money. I don't see anything "private" about this operation. The salaries of the Maersk folks should be private, because they are indeed a private company. The best thing to do is to lease these state terminals out to a private operation.
Lame reporting
The salary stuff was 100% irrelevant to the story. Playing the jealously of the successful angle is something some high school blogger would do. Who is the pilot hiring these days?
I wonder
I wonder if you followed these high paid execs during the day, how many important decisions they really make. How much if it is handled by subordinates. Are they really worth the high dollars? Do they really do that much compared to the little man making near minimum wage? Interesting that the gov't statistics say everything is fine in the country. But the Animal Shelters and cargo container traffic say otherwise.
Remember where these bonuses come from
When these bonuses are awarded in the face of declining revenues, keep in mind that almost 5% of our fuel taxes go to subsidizing the Port of Virginia instead of to relieve congestion.
And, that is just the ongoing operational subsidy, it does not count the proposed infrastructure in the HRTA road plan, of which 2/3rds of the anticipated $9 billion dollar cost is for roads, bridges and tunnels primarily of benefit to the Port interests.
Have a nice day.