By Karen E. Thuermer, AJOTBusiness at the Port of Virginia is booming. A strong indication of its position on the US Coast, the Port handled more than two million teus in Fiscal Year 2006, a 7.6% increase over fiscal 2005. In addition, the port showed an increase in ship calls (2,260, up 5.5%), rail cargo and overall growth at the Virginia Inland Port (VIP). “Our growth is consistent, and we see it continuing that way,” says Thomas Capozzi, Virginia Port Authority’s (VPA) senior marketing director. The port is forecasting seven percent growth for fiscal year 2007, based on the business under contract, and new services that have started or are about to start calling there. J. Robert Bray, VPA’s executive director, points to the tremendous growth in the distribution business in the state and the region and cites this as a major contributor to the escalating tonnage. Of significance, Wal-Mart recently completed construction of a one million square foot addition to their facility, bringing it to a total of three million square feet. That facility is near Williamsburg. Target also operates a DC, with 1.8 million square feet, in Suffolk. “For us, these are the biggest drivers for growth at the port,” says Bray. “While we have great road and rail connections to the Midwest, which are going to get better, we do not have a huge consuming population here. To have DCs here is especially important for us.” Steamship line commitmentsSteamship lines have been responsive in making commitments to the port in recent years. “As shipping lines look at the fact cargo is increasing to the United States, they want to make certain that their cargo will be handled,” says Bray. “Therefore, they enter into a long-term agreement with this port.” In May, CMA CGM finalized a 10-year contract with Virginia International Terminal (VIT). The contract, valued at more than $120 million, guarantees that CMA CGM will have an annual throughput at the VPA terminals of at least 55,000 containers. Port officials expect the carrier to exceed that amount. CMA CGM’s business here has increased 297% since the French steamship line came to the port in 2000. A further commitment to the area, CMA CGM also opened its North American headquarters in Norfolk last year, as did Maersk Line several years ago. VPA officials estimate that 70% of the port’s business is now secured with 10-year contracts with steamship lines. Among them: The Grand Alliance, CKY, China Shipping, Turkon, MSC and ACL. Maersk, the largest steamship line calling at VPA, is also constructing a new terminal facility in Portsmouth, VA. A key reason steamship lines like CMA CGM, the fifth largest steamship line in the world, along with others, will continue to deploy larger ships has much to do with the port’s key strengths: its 50-foot deep channel, and modern facilities at Norfolk International Terminals with its eight Suez class cranes. The channel has the greatest depth of any US port on the East Coast. It also has no obstructions, such as bridges or overpasses. “The steamship lines have the comfort of knowing that we have a port that can accommodate their business and their bigger ships,” says Bray. Facilitating tradeTo help facilitate trade between Asia and the Indian subcontinent and the Port of Virginia, VPA recently signed a cooperative agreement with the Suez Canal Authority. VPA also has an agreement with the Panama Canal. The agreement with the Suez Canal focuses on sharing information and data that may be helpful in generating business opportunities, enhancing customer service and driving economic growth. Specifically, it will encourage increased use of the “all water route” that links the Port of Virginia with Asia via the Suez Canal. This is important since China has became VPA’s biggest trading partner. “Because of the proliferation of distribution centers the port serves, Asia now makes up a large percentage of our business,” reports J.J. Keever, the VPA’s deputy executive director. “We also