SPECIAL ADVERTISING SECTION
VIRGINIA TRADE AND LOGISTICS
Kyle J Little / Shutterstock . com
The Port of Virginia has become the second-fastest-growing port in the US of the last five years . taken on a myriad of other green initiatives . Even the location plays into our commitment — being proximate to the port allows for more truck turns so that we can keep up the pace with fewer trucks on the road .
As we explore alternate fuel options , such as electric or hybrids and fuel cells , the location is substantially more important because we can actually get more turns out of the electric trucks before they need to recharge . We ’ ve set it up so that it will be a plug-and-play win for environmental , social and governance initiatives .
Q : The labor shortage has hit the logistics industry , with many service providers struggling to staff their facilities . What has your experience been ?
A : We actually have done very well with the workforce . The good news about Virginia is that the size of the port and the number of transload facilities and large-scale warehousing [ options ] are well-balanced with the actual population of the region . You have to look at how many available jobs are in the market versus the size of the available pool to pull from . Some other markets are way oversubscribed on space relative to the available workforce .
Another great thing about Norfolk is that it has a solid working-age demographic , from those looking to transition from military service into the
private sector to those graduating from the area ’ s universities . If you look at some of the other ports in the region , many of them have retiree-heavy populations . Norfolk has a younger demographic , which I think plays a role in sourcing proper labor .
Q : Many shippers have rerouted their freight to East Coast ports due to congestion , cargo backlogs , etc . What makes the Port of Virginia attractive for logistics service providers compared with other ports nationwide ?
A : It ’ s a combination of two things . First , companies are looking for alternatives to doing business in states that really don ’ t want to be business-friendly whatsoever . Regulations in California are making it increasingly difficult to operate , even though imports fund a large portion of the state ’ s GDP . People are starting to come to the Mid-Atlantic , Gulf of Mexico and Southeast states . So that ’ s where we ’ ve really focused our expansion .
It ’ s not only freight that is rerouting — the population is also shifting . We see the freight shift because of an inhospitable environment on the West Coast . And then we ’ re seeing a population shift for better quality of life in the warmer weather . We ’ re also seeing a shift in freight origins . With the tensions continually rising in China due to impending tariffs and so on , you ’ re seeing a change . The trans-Pacific trade will never die , of course .
However , in the Southeast and Mid- Atlantic states , the ports can be far more innovative in their approach . Essentially , they ’ re nimbler . Honestly , they can accomplish a lot without being mired in bureaucracy and political bottlenecks .
The port is planning for $ 50 million in dredging , so they ’ ll be prepared for even larger vessels .
Especially in Norfolk , where they can actually implement meaningful automation , not just throw in a few gadget cranes or something and say they ’ re automated . Between automation , the massive dredging project and its leadership , Norfolk has clearly invested in the future .
Q : RoadOne is one of many businesses making significant investments around the Port of Virginia . Why are you so confident about the future of this region ?
A : We came in and built on the two best sites we could find , knowing we could fill them . We believe in what ’ s going on here and the leadership team , as well . So , we backed that by placing a pretty substantial bet with significant capital outlay .
It has gone exceptionally well . We ’ ve managed to fill the first building , and we ’ re trying to find the perfect client for building 2 . Making this level of investment is probably the biggest testament you can give to a port and indicates your belief in its future .
email : gary @ garywrites . com www . joc . com September 23 , 2024 | Journal of Commerce 47