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Cathie J. Vick

Chief Development & Public Affairs Officer

SAME Conference

December 7, 2021

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Congestion Headlines

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Congestion Causes

Manufacturing issues overseas

Ships delayed

Late arrivals (container and vessel)

Store shelves empty

Delivery delays

ST truck capacity

ST fixed rail capacity

ST fixed warehouse capacity

Shift in consumer behavior

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Shift in Consumer Behavior - Then

Raw Materials

Supplier

Intermediate

Manufacturers

End-Product

Manufacturer

Wholesalers /

Distributors

Retailers

Customer

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Shift in Consumer Behavior - Now

Raw Materials

Supplier

Intermediate

Manufacturers

End-Product

Manufacturer

Wholesalers /

Distributors

Retailers

Customer

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Port of Virginia Headlines

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The Virginia Model

The Port

Virginia Port Authority

The Port of Virginia

Hampton Roads Chassis Pool

Virginia International Terminals

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In addition, the advantage of the “Virginia model” – where the VPA is both the terminal owner and operator – is keeping the port agile and providing measurable results to ocean carriers and cargo owners that are facing congestion and delays elsewhere.

“We own the terminals and our operating company runs them and this is an important advantage because we are not beholden to multiple economic interests, especially when we need to be flexible in our operations to accommodate our customers and growing cargo volumes,” Edwards said. “The Hampton Roads Chassis Pool [HRCPII] is a great example of the advantages of being an owner-operator. We own and operate HRCP [II] and as a result, we can make decisions and take quick action to ensure we have an ample supply of chassis.”

The VPA has four deep-water, multi-purpose cargo terminals and two inland terminals that are run by the VPA’s private operating company, Virginia International Terminals, LLC. In addition, the VPA owns and operates HRCPII.

“Though this is a very large, diverse port complex, all of the operational decisions are made under one roof by our Chief Operations Officer, Kevin Price,” Edwards said. “Everyday the parts are communicating, working in unison, analyzing need and providing real value to our customers, cargo owners and shippers. The ability to act quickly and provide service and solutions – long- or short-term -- is the advantage of The Port of Virginia.”

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Terminal Modernization Complete

We have unmatched capability and capacity to handle

the vessels of the future

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Virginia International Gateway (VIG)

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Norfolk International Terminals (NIT)

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Continued Investments

STS Cranes

Two Ship to Shore Cranes Added Q1 2021

Total 200,000 lift capacity increase

Two further Ship to Shore Cranes for delivery Q1 2022

Further 200,000 lift capacity increase

Shuttle Trucks

Ten Shuttle Trucks delivered Q1 2021
Ten Shuttle Trucks enroute for Q2 2021

Supports further 600,000 crane lift capacity

Eighteen Shuttle Trucks for delivery Q2 2022

Chassis – total of 6,100

3,100 Chassis on order for delivery Q3 2021 thru Q2 2022
3,000 Chassis on order for delivery Q2 2022 thru Q4 2022

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55’ Channel Draft and Widening

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Data Driven Decisions

Valuable and actionable insights
Continuous growth
Revenue increase
Optimized operation
Cost/time savings
Market share growth
Improved outcomes
Improved bottom line
Prediction of future trends
Better plans and strategies
Improved customer experience

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Port Economic Impact�FY18 results

Source: The Fiscal Year 2013 Virginia Economic Impacts of The Port of Virginia, 2014, Raymond A. Mason School of Business, William & Mary

22.1 Million

Tons of cargo moved

397,094

Jobs in Virginia

$92.1 Billion

In spending

$23.0 Billion

In Virginia labor income

$2.1 Billion

In state and local taxes and fees

$39.3 Billion

In Virginia GSP

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New FY2021

Existing FY2021

VA Statewide Business Investments FY17 through FY21:

Announcement Total: 208

Dollars Invested: $7.5 billion

Jobs Created: more than 21,000

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CYTD 2021 Economic Development Totals

Source: POV Economic Development December 2021

$1.7 BILLION

4,596

36

JOBS CREATED

IN INVESTMENT

SQUARE FEET

ANNOUNCEMENTS

NEARLY

MORE THAN

6.6 MILLION

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Since Last Board Meeting

Announcements – 5

Investment – $422,588,400

Jobs - 940

Sqft – 2,145,500 Sqft

Bonumose, Inc.: Bonumose, Inc., a food technology company, will partner with Hershey to research and develop reduced or zero sugar chocolate products. The company will invest $27.7 million to expand in Albemarle County, Virginia.

Bonumose will move into 50,000 square feet of the former State Farm building to expand production capabilities and relocate its existing research and development lab. Virginia successfully competed with Florida, Idaho, and North Dakota for the project, which will create 64 new jobs.

Global Concentrate: Global Concentrate, a supplier for traditional and organic fruit and vegetable juice concentrates, will purchase approximately 170 acres at the Pretlow Industrial Park in Franklin, Virginia. The project is expected to create 50 full-time jobs over the next three years. The company will invest a minimum of $121 million to establish its largest processing operation in the United States. The construction of the 2 million square feet warehouse will begin in 2022.

Schock GmbH: Schock GmbH, the inventor of quartz composite sinks, will invest $85 million to establish its first U.S. manufacturing operation in Henry County, Virginia. Virginia successfully competed with Florida, Georgia, and North Carolina for the project, which will create 355 new jobs. Schock GmbH will occupy the Lot 8 Shell Building, a 95,500-square-foot facility on 14.7 acres in Patriot Centre Industrial Park

Siemens Gamesa: Siemens Gamesa Renewable Energy will establish the first offshore wind turbine blade facility in the United States, propelling construction of the country’s largest new renewable energy project. Siemens Gamesa will lease more than 80 acres of the Commonwealth’s Portsmouth Marine Terminal and will build a facility to produce turbine blades supplying offshore wind projects in North America. The facility, combined with its operations and maintenance activities, will create a total of 310 new jobs, of which roughly 50 will be service jobs to support the Coastal Virginia Offshore Wind Project. The project represents a total cost of $200 million, including over $80 million in investments for buildings and equipment at the Portsmouth Marine Terminal.

Veronesi Holding: Veronesi Holding S.p.A., a leading manufacturer and producer of cured meats, will establish its first U.S. production operation. This investment in Rockingham County will create more than 150 new jobs over the next four years. The company plans to explore the possibility of working with smaller Virginia farms for its American production needs. Located on 75.8 acres in the county’s Innovation Village, the new facility will be used to age, process, and package the company’s products for distribution, increasing its cured meat and charcuterie customer base in the U.S. market.

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FY22 Volume (July - October 2021)

	FY 2021	FY 2022	Change	% Change
Total TEUs	999,030	1,224,847	225,817	22.6%
Export Loaded TEUs	303,150	335,731	32,581	10.7%
Export Empty TEUs	210,892	292,780	81,888	38.8%
Import Loaded TEUs	479,490	587,597	81,888	22.5%
Import Empty TEUs	5,499	8,740	3,241	58.9%
Total Containers	548,901	684,283	135,382	24.7%
General Cargo Tonnage	7,021,764	8,434,365	1,412,601	20.1%
Container Tonnage	7,003,183	8,396,717	1,393,534	19.9%
Breakbulk Tonnage	18,581	37,648	19,067	102.6%
Total Rail Containers	175,694	224,368	48,674	27.7%
VIP Containers	10,941	10,556	(385)	-3.5%
Total Barge Containers	23,107	28,521	5,414	23.4%
RMT Containers	15,160	12,284	(2,876)	-19.0%
Total Truck Containers	350,100	431,394	81,294	23.2%
Ship Calls	490	525	35	7.1%
Vehicle Units	2,392	2,355	(37)	-1.5%

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Market Share Comparison

Confidential proprietary information and data pursuant to §2.2-3705.6(1) and §62.1-132.4 of The Virginia Freedom of Information Act

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The Wind Energy Hub of the Future

Portsmouth Marine Terminal

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Potential Economic Impacts

Construction average economic impacts per year

900 direct and indirect VA jobs annually (about 60 in Hampton Roads)
$57 million in pay/benefits
$143 million in economic output
$2 million in revenues for local governments
$3 million in VA state tax revenues

Operations and maintenance per annum 2027 going forward

1,100 direct and indirect jobs annual in Hampton Roads
$82 million in pay and benefits
$210 million in economic output
$6 million in revenues for local governments in Hampton Roads area
$5 million in VA state tax revenues

Potential Impact of the Development of the Offshore Wind Industry on Hampton Roads and Virginia. Mangum Economics, 2020

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Thank You

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