Fiscal year 2015 is off to a solid start at The Port of Virginia.
In July, the port’s TEU volume was 207,771 units, surpassing the monthly record set last October by 1,174 TEUs.
The port’s revenues were $37.9 million, and its operating income was $1.98 million, increases of 21.5 percent and 6 percent, respectively, when compared with last year.
“This is a solid start to our new fiscal year and a return to profitability after a loss in June,” said John F. Reinhart, CEO and executive director of the Virginia Port Authority. Our performance and direction are improving, but much work remains to be done.”
The port has generated an operating profit in four of the last five months. Primary factors in July’s strong financial performance include: the port having taking over management of the empty container yards; recognizing revenue and cost from the operation of HRCP II (the port’s chassis pool); and the efficiencies being realized from multiple initiatives implemented since February at the terminals to improve delivery of service and cargo flow while controlling costs.
“Fiscal 2014 was a pivotal year for the port and we are confident in our ability to continue to implement constructive changes as we move forward together, to better serve our customers and stakeholders,” Reinhart said. “Our focus continues to be those initiatives that will reduce cost, increase velocity, improve service and maintain profitability.”
In the first seven months of 2014, TEU totals are at record levels: 1,344,425 TEUs, or a 6.8 percent increase when compared with the same period last year.
In July, truck volume increased by 2.3 percent and barge volume increased by 12.6 percent. Rail traffic was flat, declining by less than 1 percent. As a percentage of total containers moved during July, 64 percent moved by truck, 32 percent by rail and 4 percent by barge.
The Virginia Inland Port (VIP), the port’s intermodal terminal in Front Royal, also had strong volumes in July: VIP handled 3,345 total containers, a 51 percent increase when compared with July 2013, and the best July in the facility’s 25-year history. Year-to-date, VIP has achieved 25 percent growth in container volume.
In July, the port worked 176 vessels (container, breakbulk and Ro-Ro) making it the best month for vessel calls in more than five years.