A Baltimorean View of Virginia’s Ports

The port of Baltimore. Photo credit: Baltimore Sun.

It often makes interesting reading to see our problems through the eyes of others. In this instance, it is illuminating to read an analysis of the Port of Virginia’s woes from the perspective of the Baltimore Sun. After years of playing second fiddle to its chief Mid-Atlantic rival in Norfolk, the Port of Baltimore is rebounding very nicely from the recession.

What Baltimore did that Hampton Roads did not is diversify. Finding itself at a competitive disadvantage competing against Virginia for the container market — Virginia handles three times as many containers — the port began to pursue autos, agricultural and construction machines and niche cargoes in the 1990s. The strategy worked. Baltimore’s industrial segments are enjoying strong exports in the economic recovery.

There’s a lesson here for the Ports of Virginia, although I doubt its one that the newly reconstituted board appointed by Gov. Bob McDonnell is likely to heed. Maybe it’s time to re-think the port’s strategy, which heretofore has focused on handling container imports and, even now, anticipates a shift in traffic to bigger, post Panamax-class vessels when the widening of the Panama Canal is complete.

One problem with that strategy is that Norfolk ports face a major constraint to import-led growth: the transportation bottleneck for container traffic. A continued rise in the number of trucks will overwhelm the region’s transportation connections. That’s why Gov. Bob McDonnell proposes to invest hundreds of millions of state dollars in a public-private partnership that will build an Interstate-grade highway between Petersburg and Suffolk.

The underlying assumption of Virginia’s strategy is this: Container traffic from Hampton Roads will continue to grow, and it is the obligation of the state to accommodate that growth by adding highway capacity — even if the project is not economically self supporting through tolls and other revenue sources. (As it happens, Norfolk’s maritime industry prefers the Third Crossing, which would tie into Interstate 64 on the Peninsula, but the underlying assumption that the state should pony up big bucks is the same.)

But what if… But what if the Ports of Virginia pursued a different strategy? What if, instead of seeking more containerized imports, it began capturing more exports — just like Baltimore started to do more than a decade ago? That wouldn’t strain capacity very much, if at all. Instead of dead-heading into Norfolk and Portsmouth to pick up cargo, trucks could carry containers full of export goods on the trip, utilizing transportation infrastructure we already have.

Admittedly, new export business is not likely to materialize overnight. It might take a decade or more of work. But economic mega-trends might be with us. I find it just as plausible to believe that the U.S. will experience an export boom in the future as to count on 10 or 20 years of continued import growth in the face of continued consumer over-indebtedness and frugality.

Maybe the idea is full of holes. I’m just trying to think outside the box. But I’d like to see more people asking questions instead of automatically accepting hoary assumptions that may have run their course.

— JAB


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3 responses to “A Baltimorean View of Virginia’s Ports”

  1. I own a home in Virginia and one in Maryland. I split my time between the two states although I still spend more time in Virginia.

    Let me put this is simple terms ….

    Maryland is MUCH better run than Virginia.

    It’s not even close.

    The people we are electing to the General Assembly are simply not up to the job.

    This story is going to end badly.

  2. Peter Galuszka Avatar
    Peter Galuszka

    Groveton may be on to something.
    I remember when I edited Virginia Business magazine about 10 years ago. I can’t remember if Jim was publisher, I think he was about to go into business for himself. We did a big cover story about the Virginia Ports Authority including the then-expansion of huge regional warehouses by Target, QVC and others to take advantage of then booming trade of Chinese imports. We went out on a docking tugboat and we even scampered up a jacob’s ladder onto a German container ship to get pix from the flying bridge (the German captain, all of 35, was a bit upset.)
    In any event, the VPA was run by a guy called Bobby Bray, who is now gone. Bray ran the VPA like his personal fiefdom. His major promoter was Linda Ford, a difficult woman who acted as chief marketer and Bray’s personal PR agent. The VPA was buying a bunch of expensive ads for the section. Just as we were closing the grand package, Linda Ford called and demanded to know if we were running a big picture of Bobby Bray looking like a brilliant leader, sort of like Douglas MacArthur. I said no, a working tugboat was far more interesting. She pulled all of the VPA ads.
    That could be why the VPA is in the pickle it’s in. People like Bray and his gatekeeper.
    .

  3. Peter Galuszka Avatar
    Peter Galuszka

    Groveton may be on to something.
    I remember when I edited Virginia Business magazine about 10 years ago. I can’t remember if Jim was publisher, I think he was about to go into business for himself. We did a big cover story about the Virginia Ports Authority including the then-expansion of huge regional warehouses by Target, QVC and others to take advantage of then booming trade of Chinese imports. We went out on a docking tugboat and we even scampered up a jacob’s ladder onto a German container ship to get pix from the flying bridge (the German captain, all of 35, was a bit upset.)
    In any event, the VPA was run by a guy called Bobby Bray, who is now gone. Bray ran the VPA like his personal fiefdom. His major promoter was Linda Ford, a difficult woman who acted as chief marketer and Bray’s personal PR agent. The VPA was buying a bunch of expensive ads for the section. Just as we were closing the grand package, Linda Ford called and demanded to know if we were running a big picture of Bobby Bray looking like a brilliant leader, sort of like Douglas MacArthur. I said no, a working tugboat was far more interesting. She pulled all of the VPA ads.
    That could be why the VPA is in the pickle it’s in. People like Bray and his gatekeeper.
    .

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