McLean's - American Shipper

TRANSPORT / OCEANVirginia counting on SuezPort believes it’s better placed than most to takeadvantage of Suez services from Asia.BY ERIC JOHNSONThe Port of Virginia landed a key allwaterservice from East Asia via theSuez Canal in the summer of 2005when China Shipping’s AMAX servicebegan calling at Norfolk.But that may just be the beginning for thegrowing mid-eastern port when it comes tobusiness through the Suez.With deep water, ship-to-shore cranescapable of handling 18,000-TEU ships andenhanced inland connections, Virginia maybe ideally suited to handle an expected floodof post-Panamax vessels transiting throughthe Suez from Southeast Asia, as well asIndia and the Middle East.“The Suez development is somethingwe’re hopeful will enable us to grow,” saidTom Capozzi, senior managing director ofmarketing at the Port of Virginia. “We feelwe’re better placed than any other port onthe East Coast to handle the services comingvia the Suez.”And an analyst agreed.“From everything we can look at, Norfolkis sitting pretty well,” said Paul Bingham,an economist with consulting firm GlobalInsight. “But it’s by no means guaranteed,because it’s a continual battle to try to capturebusiness from competitors.”No other port on the U.S. East Coasthas the geographic, physical and culturaladvantages of Virginia, Bingham said.“Baltimore says they’re the closest toChicago, but as a shipper you might considerNorfolk closer because of the time it takesto steam up the Chesapeake,” Binghamsaid. “In Savannah, there are limitationson channel depth (because of aquifers“It may be luck morethan brains, but Norfolk’sdone a good jobof positioning itself.”Paul Binghameconomist,Global InsightSuezCanalthat sit just below the port channel). AndCharleston has run into local opposition toits expansion, so Norfolk is well-placed. Butif I would have looked back eight years ago,I would have predicted Charleston wouldhave been bigger than Savannah, so thingscan change.”Virginia’s varied cargo sources (onlyabout 20 percent of its business came fromChina, versus roughly 50 percent for, saythe Port of Long Beach) means the portcan take advantage of those physical andgeographical characteristics to expand itsacreage and land services that other EastCoast ports might not be quite preparedfor.“The Suez opens up our ability to bringin larger vessels, because you don’t havethe restrictions of the Panama Canal,” hesaid. “You need deep water for these largervessels, and we’re the only port on the U.S.East Coast with 50 feet of depth. You alsoneed the ability to handle and dischargelarge volumes of cargo, which we havebecause we have phenomenal intermodalconnections and we’re right next to majorhighways. Those are two things that bodewell for us.”For instance, Bingham said, shippers andcarriers may prefer to make a first call inNew York or New Jersey, but pushback froma vociferous environmental movement andhigh land development costs there makeVirginia look more attractive.And while Savannah has done possiblyFastestAMERICAN SHIPPER: APRIL 2006 67