Rocking the Supertanker

by James A. Bacon

Love ’em or hate ’em, you have to say one thing about Gov. Bob McDonnell and his Transportation Secretary Sean Connaughton: They’re willing to crack heads. The latest evidence is the Friday announcement that the governor had announced the replacement of 10 of the 12 board members of the Virginia Port Authority as well as its chair, John Milliken. Citing the port’s lagging economic performance, McDonnell installed his own slate of board members, all of whom are seasoned business people, many with backgrounds in transportation and logistics… and a track record as contributors to Republican candidates and causes.

The appointments will take effect at a swearing-in ceremony at Tuesday’s board meeting. “We’re the only port on the East Coast that has not recovered to pre-recession levels,” said Connaughton Friday, as quoted by the Virginian-Pilot. “We are in real strong competition, and we need people on that board who are proven business leaders with experience in trade and in transportation and with finance and business practices that’ll help us recover and take us to the next level.”

“We were looking at the numbers and they’re very clear. Every other port on the East Coast has gotten back to pre-recession (cargo) volumes  with the exception of one, and that’s us. This is not meant to be negative on the current port board members, but most of them just don’t understand” the business, the Daily Press quoted Connaughton as saying. The Secretary expects new board members “to question everything, to be aggressive and really, really challenge the [port authority] staff.”

I have not had a chance to analyze the performance of Virginia’s ports , so I will take Connaughton at his word that the VPA has been under-performing competitors like Savannah and New York. And, for purposes of argument, I will accept the governor’s appraisal that the ports need a change of direction that only a new board can bring about. Give McDonnell and Connaughton credit for being willing to rock the supertanker in order to spark change.

However, the move does set a potentially dangerous precedent. It has been traditional practice in Virginia for one governor to retain the appointees of previous governors until their terms expire. In a state with a one-term governor, the practice encourages continuity between administrations and minimizes disruption. As a Democratic business executive friend of mine pointed out, if Democrats perceive McDonnell’s action as a partisan maneuver, they might institute their own clean sweep the next time a Democrat takes the governor’s office. And why stop at the VPA? Why not clean house at other key institutions like the Virginia Economic Development Partnership, say, or … the University of Virginia.

My friend also wondered if there is a hidden agenda. Is McDonnell looking mainly to improve the performance of the VPA, or does he want a board that will prove cooperative should he try to privatize the ports? Others will be asking the same question.

Update: Doug Koelemay, the Northern Virginia district member of the Commonwealth Transportation Board, added some insight into Connaughton’s action while I was interviewing him for another story. Connaughton served as director of the Maritime Administration in the Bush administration, Koelemay noted. The transportation secretary knows maritime and port issues as well as anyone on the VPA board. “He feels comfortable with what he knows. He doesn’t have the hesitancy to act that someone else might.”


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6 responses to “Rocking the Supertanker”

  1. This is an important issue and complicated. Each governor should have a fair chance to have his/her appointees in key positions. Yet, some overlap can be valuable and cleaning house after each election might not be the best practice for governing boards. Perhaps, the solution lies in changing the terms of appointees such that a governor can make the majority of appointments by the middle of the gubernatorial term. In any event, all governors should have the authority to remove any appointee for cause, which should be subject to judicial review.

  2. Peter Galuszka Avatar
    Peter Galuszka

    Sorry, but my bullshit meter just went off.

    So Connaughton says that Hampton Roads has not recovered to pre-recession levels as fast as other East Coast ports. And may we please have some statistics for this? Our beloved Mr. Bacon “hasn’t had time” to verify this, but he’s perfectly willing to buy the McDonnell/Connaughton line.

    I went to SupplyChain Digest (sorry but I can’t figure out the current WordPress “improvement” to share the link with you, but a July 20 file says that container volumes are pretty flat just about everywhere. The West Coast is in worse shape than the East COast. New York New Jersey is supposed to see a 6 percent rise in annual volume over 2010. Charleston, represents a 7 percent volume. Savannah a 10 percent increase. Hampton Roads is a 5 percent rise.

    Reality check: Hampton Roads trails NY/NJ by a little and a little more than Charleston. So, this is the excuse to get rid of every Democratically-appointed VPA director?

    Baloney. McD and the Big Sean are trying to set things up for privatization which is an extremely loaded question. Previous attempts failed when suitors offered extremely low ball offers. But privatization fits conservative dogma.

    SO what’s the game here? You won’t get a clear answer from Jim Bacon, who seems to regurgitate whatever his right wing friends tell him.

    Peter Galuszka

  3. Peter, Why the personal attack?Apparently you didn’t manage to read all the way to the fifth and sixth paragraphs of my post where I raised the very issue you just brought up — the possibility that McDonnell might be stacking the VPA board in order to privatize the port.

    Regurgitate whatever my “right wing friends” tell me? I was raising an issue that my Democratic Party friend had brought up and that I found to be worth injecting into the public domain. To my knowledge, my post on Bacon’s Rebellion was the first to raise the issue.

    As for data supporting Connaughton’s claims, refer to the charts in this Virginian-Pilot article showing the recovery of container tonnage to be slower in Hampton Roads than Savannah and New York City. That much seems to be well documented. The question that I did not explore in the post is whether or not the lagging tonnage can be laid at the foot of VPA management and its board or could be attributed to other factors. I accepted Connaughton’s representations about port performance as accurate “for purposes of argument” but I am not convinced that the data cited in the article is the full story.

  4. Peter Galuszka Avatar
    Peter Galuszka

    Jim,
    Not personal. You state you are “willing to take Connaughton at his word.” The way you structured this post makes it appear to me you are buying in to this PR spin about needing “business types” who are, of course “Republicans.” If you are going to post this, take the 15 seconds to check the ports’ record as I did.

    I suggest you be more skeptical.

    PG

  5. larryg Avatar

    1. If we have performance criteria for teachers, why not these guys?

    2. I seriously doubt that VDOT has the expertise to manage the ports nor vett board appointments.

  6. Groveton Avatar
    Groveton

    Peter:

    Who else would you want to run a port other than “business types”? “Art types”? Religious types”? Lawyers? Veterinarians?

    Presumably, it’s the civil service types you like.

    The shortfall between the Virginia port and NY/NJ, Savannah and Charleston seems well enough documented by your own statistics.

    Time to clean house.

    Good for Big Mac.

    And here’s some interesting reading … regarding another government – appointed board much in the news of late…

    One of Virginia’s appointments to the MWAA board:

    Mame Reiley is a Past Chairman of the Airports Authority, and Chairman of the Dulles Corridor Committee. She is President of The Reiley Group, a consulting, fundraising and events communication firm in Alexandria, Virginia. She served as a senior advisor to Virginia Governor Tim Kaine and former Governor Mark Warner. Ms. Reiley was the Senior Political Advisor for Governor Warner and the Director of his OneVirginia PAC. Over the years, Ms. Reiley has served as the Director of PGI/Washington, Inc, an events and communications agency, as Chief of Staff to Congressman James Moran (D-VA), and as a senior staff member of the House Committee on Appropriations. She was elected to the Democratic National Committee from Virginia in 1992 and is currently the Chair of the Women’s Caucus of the DNC. She also serves on the DNC’s Executive Committee, as well as its Rules and Bylaws Committee, and is a member of the Economic Club of Washington and the Federal City Council executive committee. Ms. Reiley is an appointee of the Governor of Virginia.

    And, now, one of Maryland’s …

    Richard “Dickie” S. Carter is the founder of Urban Service Systems Corporation, an environmental services and hauling company, specializing in solid waste and biosolids management, recycling, and soil excavation and hauling. He is also the principal owner of Carter & Carter Enterprises, Inc., a chemical transportation company; the managing partner of South Capitol Street Limited Partnership, a business entity specializing in real estate acquisitions; the managing member of Washington Leasing LLC, a business entity specializing in transportation and equipment leasing, and an investor in Darryl Carter Inc, an interior design and products firm. Mr. Carter was the Co-founder, and for twelve years the President and Chairman, of the Minority Contractors Assistance Project, Inc., a national program that assisted America’s minority contractors to compete for a more equitable share of government and private commercial construction contracts, and the founder of MCAP Bonding and Insurance Agency, Inc., the first minority surety bonding agency granted underwriting authority by the Aetna Insurance Company. He is the founder and Chairman of the Carter Family Foundation, a foundation that provides support to educational programs for inner city youth and he currently serves as a Director on the Board of Directors of the Strathmore Hall Foundation, Inc. He is also a member of the Federal City Council, Venture Philanthropy Partners and the D.C. Chamber of Commerce. His previous board service has included the Board of Trustees at Southeastern University, the YMCA of Metropolitan Washington, Small Business Advisory Council to the Federal Reserve Bank of Richmond, Virginia, Metropolitan BB&T Bank Advisory Board and the Board of Franklin National Bank. Mr. Carter holds a Bachelor’s Degree from Southern University in Baton Rouge, Louisiana. He attended the Howard University Graduate School of Social Work, and received his Master’s Degree from the Catholic University of America. He and his wife live in Potomac, Maryland. He is an appointee of the Governor of Maryland.

    Read the whole list and see for yourself:

    http://www.metwashairports.com/2430.htm

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