Move makes project eligible for stimulus money

The development of Craney Island Marine Terminal took an important step forward with the announcement that $100,000 for the project has been authorized in the federal budget.

“This is pivotal because inclusion in the budget clears the way for federal money to begin flowing to the project,” J.J. Keever, the Virginia Port Authority’s senior deputy director said. “This project was authorized in November 2007 and less than two years after that we’re able to secure funding; that is incredible.

“It says a lot about the effort and commitment to this project put forth by, (US Sens.) Mark Warner, Jim Webb and (US Reps.) Glenn Nye and Bobby Scott. A lot of credit and thanks are owned to those people because they were the ones who imparted the importance of Craney Island on their colleagues.”

Warner and Webb championed the project in the Senate and Nye, with help from Scott, led the effort on the House side.

A study conducted in 2005 by the US Army Corps of Engineers said the long-term benefit of building Craney Island Marine Terminal would be savings of $6 billion that would not have to be invested by the federal government large transportation infrastructure projects. The study says the project would generate 54,000 jobs with wages of $1.7 billion and local tax revenues of $155 million.

“The Craney Island expansion is an ambitious and critically important infrastructure project not only for Hampton Roads and Virginia, but for the nation,” Warner said. “I am pleased we have been able to turn-on the spigot to federal support for what will be a multi-year effort.”

In May, $28.5 million was earmarked for Craney Island in the President’s proposed budget and port leaders, while hopeful, were doubtful that amount would survive the various budget reviews. Keever said the amount of funding is not what is important but rather the beginning of a financial commitment to the project by the federal government.

“This also means that Craney Island will qualify for federal stimulus money for general construction,” Keever said.

Construction of the Craney Island Marine Terminal is a $2.2 billion multiphase project that will result in the newest, most modern marine terminal in the United States: a 600-acre complex encompassing 8,400 linear feet of berth space, 20 Suez-class cranes and an on-terminal intermodal container transfer facility [ICTF]. The marine terminal will be built in three phases over the next 20-25 years and upon completion have capacity for at least 2.5 million TEUs.

Work on the first phase is tentatively scheduled to begin in 2011 and finish in 2019 or 2020. This phase includes 220 acres of container yard, 3,000 linear feet of berth space, eight cranes and the ICTF.

“The expansion of Craney Island is critical to both the region’s economic growth and national defense, Webb said. “Today’s funding announcement opens the door to continued federal investment to keep this project on track while also creating jobs in the Norfolk area.”