From Marine Link: Port of Virginia’s Richmond Terminal Growth The Port of Virginia handled 220,000 TEUs in September and that volume helped to push solid growth in rail cargo and in containers moved to Richmond Marine Terminal by barge. In comparison with last September, TEU volumes are up 2 percent; rail units up 16 percent and volume at Richmond Marine Terminal (RMT) is up 55 percent. Moreover, September marks the eighth consecutive month of TEU volumes exceeding 210,000 units.
Our Take: The Port of Virginia has a pretty interesting situation. It’s location positions it as the most important maritime asset between New York and the Carolinas and one of the major seaports on the East Coast. As is generally understood, the Port is well-positioned to serve landlocked Midwest US markets via efficient road and rail connections, and the mid-Atlantic especially via road. Essentially, it has a pretty strong hold on those markets by virtue of geography. With that said, it is also important to recognize that the Port Authority has skillfully developed business relationships to maximize its standing in this part of the country. In ways that distinguish itself from many competitors, its marketing and economic development activities have shown the Authority to be a proactive seaport.
Having recognized this strength, it is also important to note that the areas where the Port has natural advantages also represent parts of the country that are relatively slow-growth regions. There are some exceptions to this, say in parts of Virginia itself and areas of North Carolina, but otherwise the Port’s “hinterland” market includes the wider Ohio Valley and though sizable is relatively stable market.
With that, there is an important opportunity for the Authority to be an integral player in supporting new investment in it’s hinterland. Having an integrated port-economic development strategy is a huge advantage, especially if it’s more than a superficial marketing effort. We see the Authority’s focus on their Richmond port asset as a potentially very good example combining marine terminal, inland port and value-add manufacturing hub for import and export. From our experience, there are some supply chains that will could well find an integrated Mid Atlantic US product as extremely valuable. From a seaport perspective, there’s nothing better than having “sticky business” – those generating cargo demand from facilities nearby to the port. John Reinhart and his team are smart and understand all of this – let’s watch them develop.
