The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Wednesday, March 29, 1995              TAG: 9503290462
SECTION: BUSINESS                 PAGE: D1   EDITION: FINAL 
SOURCE: BY CHRISTOPHER DINSMORE, STAFF WRITER 
                                             LENGTH: Long  :  109 lines

PORT MUST BULK UP, STUDY ADVISES CONSULTANTS RECOMMEND THAT IT SPEND MORE THAN $110 MILLION TO HANDLE GROWTH

The Virginia Port Authority needs to spend more than $110 million on capital improvements during the next 15 years to handle anticipated cargo growth from existing customers, a study concludes.

The study, a final preliminary draft of which was presented to the port authority's board Tuesday, projected that cargo shipped through the three state-owned terminals should more than double by the year 2010.

Last year, the terminals in Norfolk, Portsmouth and Newport News handled nearly eight million tons of general cargo and nearly 900,000 containers. That makes Hampton Roads the second-largest port on the East Coast, after New York City.

During the first two months of 1995, general cargo shipped through the port has surged 16.4 percent to 1.46 million tons from 1.25 million tons last year.

The consultants' report helps validate the port authority's existing capital plan. The state agency has said it wants to spend about $400 million by the year 2015 on terminal improvements and expansion, said J. Robert Bray, the executive director. The $467,000 study should help the authority secure the needed funds and set spending priorities.

To meet anticipated growth, the port needs to improve terminals and add berths, the study concluded. It also needs to make process improvements in cargo handling, expand ship-to-rail handling of containers and improve rail access to the terminals.

The study was conducted by Vickerman Zachary Miller, a Reston planning firm known asVZM, with help from Mercer Management Consulting Inc. and R.K. Johns & Associates.

A final version will be submitted to the port authority's board at its May meeting.

The study looked at the terminals' capacity in light of the forecasted growth and drew conclusions about needed improvements, said M. John Vickerman, VZM's president.

The study concludes that Norfolk International Terminals will need at least two additional containership berths by 2010. The port authority's plans call for adding four more berths eventually at the sprawling terminal on Hampton Boulevard adjacent to the Norfolk Naval Base.

VZM also recommends improving rail access to NIT by adding another rail line and routing the rail lines either over or under Hampton Boulevard. It also recommends developing added intermodal rail capability at the terminal.

Intermodalism involves shipping goods via containers that can be transported by ship, truck and rail.

The port authority is planning a $1.8 million project to expand the yard at NIT where containers are transferred on and off rail cars.

VZM's $110-million-plus estimate does not include the costs of improving rail access to the port's terminals.

The port authority has a unique advantage in the growing intermodal market, the result of its strategic partnership with Norfolk Southern Corp. and the railroad's extensive inland reach, Vickerman said.

The Virginia Port Authority needs to spend more than $110 million on capital improvements during the next 15 years to handle anticipated cargo growth from existing customers, a study concludes.

The study, a final preliminary draft of which was presented to the port authority's board Tuesday, projected that cargo shipped through the three state-owned terminals should more than double by the year 2010.

Last year, the terminals in Norfolk, Portsmouth and Newport News handled nearly eight million tons of general cargo and nearly 900,000 containers. That makes Hampton Roads the second-largest port on the East Coast, after New York City.

During the first two months of 1995, general cargo shipped through the port has surged 16.4 percent to 1.46 million tons from 1.25 million tons last year.

The consultants' report helps validate the port authority's existing capital plan. The state agency has said it wants to spend about $400 million by the year 2015 on terminal improvements and expansion, said J. Robert Bray, the executive director. The $467,000 study should help the authority secure the needed funds and set spending priorities.

To meet anticipated growth, the port needs to improve terminals and add berths, the study concluded. It also needs to make process improvements in cargo handling, expand ship-to-rail handling of containers and improve rail access to the terminals.

The study was conducted by Vickerman Zachary Miller, a Reston planning firm known as VZM, with help from Mercer Management Consulting Inc. and R.K. Johns & Associates.

A final version will be submitted to the port authority's board at its May meeting.

The study looked at the terminals' capacity in light of the forecasted growth and drew conclusions about needed improvements, said M. John Vickerman, VZM's president.

The study concludes that Norfolk International Terminals will need at least two additional containership berths by 2010. The port authority's plans call for adding four more berths eventually at the sprawling terminal on Hampton Boulevard adjacent to the Norfolk Naval Base.

VZM also recommends improving rail access to NIT by adding another rail line and routing the rail lines either over or under Hampton Boulevard. It also recommends developing added intermodal rail capability at the terminal.

Intermodalism involves shipping goods via containers that can be transported by ship, truck and rail.

The port authority is planning a $1.8 million project to expand the yard at NIT where containers are transferred on and off rail cars.

VZM's $110-million-plus estimate does not include the costs of improving rail access to the port's terminals.

The port authority has a unique advantage in the growing intermodal market, the result of its strategic partnership with Norfolk Southern Corp. and the railroad's extensive inland reach, Vickerman said. ILLUSTRATION: Graphic

[For complete graphic, please see microfilm]

by CNB