The Virginian-Pilot
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NORFOLK
Mediterranean Shipping Co., the second-largest shipping line in the world, has made Hampton Roads its "last out" and southern-most port of call on a revised service to the Middle and Far East, a port executive told a panel of state officials on Friday.
The change is expected to bring the equivalent of 30,000 to 40,000 20-foot containers through the port annually, said Joseph A. Dorto, CEO and president of Virginia International Terminals Inc., at a meeting of a General Assembly subcommittee studying port privatization.
Containers come in a variety of sizes, so they are measured in 20-foot units.
"That service previously was in New York, Baltimore and Savannah," Dorto said. "They're going to drop Savannah and add Norfolk."
The service is expected to begin in January.
"We'll be the last port out," Dorto said. "That's a good sign for us, because last port out means you can push exports through."
Mediterranean Shipping's decision is tied to Norfolk Southern Corp.'s Heartland Corridor project, expected to open in the second half of 2010, Dorto said.
When that project is complete, containerized freight moving in double-stack trains will be able to cut about 200 miles and up to a day's transit time between the East Coast and the Midwest.
Dorto also told the panel that container volumes have been trending up in the past four months, after hovering at levels in the 60,000 range the first six months of the year. Beginning in July, container volumes have risen each month, to 72,000-76,000 in October from about 64,000 -68,000, he said.
"The port of Hampton Roads is, typically, an economic indicator....," Dorto said. "When we start to recover, the economy is usually about six months behind."
VIT is the private, tax-exempt firm that operates the Virginia Port Authority's terminals.
Robert McCabe, (757) 446-2327, robert.mccabe@ pilotonline.com
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Longshoremen who do not get what they deserve
What about the injured longshoremen who work hard as hell and are permanently injured on the job and their benefits and workers compensation are taken away? These are the benefits of the job nobody talks about. These are the longshoremen who have to succumb to tricky lawyers such as the Montagna's, Rabinowitz's, and the Camden's, and Rutter's who work underhandedly with the Ceres, CP&O, and VIT insurance carriers to stop our compensation and medical benefits while selling us out and the Department of Labor/Office of Workers Compensation agrees with them.
It Has Already Been Tried
Hampton Roads became a major port after the ports consolidated. When they competed against each, prior to the VPA, cargo tonnage was much lower. The shipping lines go where they get the best deal.
GOOD JOB TO ALL INVOLVED
I AM HAPPY FOR THE PORTS NOW HOW ABOUT MY JOB BACK. I WAS AMONG YOUR MOST DEDICATED EMPLOYEES ALONG WITH MANY OTHERS JOE DON'T FORGET US
Sometimes The VPA Is Taken For Granted
Kudos to the Virginia Port Authority! The VPA has been very adept at luring business from other ports to the "world's greatest harbor".
The big danger with privatization is that the new operator would have no qualms with switching business from Hampton Roads to other ports they operate to help their overall picture. The VPA on the other hand is dedicated to Hampton Roads.
Disagree about Privatization comment
The shipping lines ultimately decide where the ships will call, not the ports. The shipping lines will call on the port where they can move their cargo most efficiently. Competition within the port drives down costs and ulitmately makes the entire port more efficient.