The biggest challenge going into 2015 will be our ability to manage the pressure being exerted on all areas of our operation — and its adjoining network — by the continual increases in vessel capacity. The ocean carriers continue to build alliances that employ larger vessels while our ability to make timely capital improvements to manage the higher cargo volumes and multiple terminal calls in a single port is not keeping pace. We need to improve planning and coordination with our partners.
The challenge is such that we are forced to make multiple, often costly, interim moves while planning for long-term solutions. The result is a port that is in a continual state of change that, in turn, has an adverse effect on consistent delivery of service. Further, beyond our fence lines, there is growing need to invest in infrastructure to handle these heavy cargo volumes: dredging, roads, bridges, tunnels, etc. — all are needed to keep the cargo moving. The ocean carriers have invested in their ships, and the infrastructure-end of the equation resides with ports, governments, consumers and taxpayers.
At the Port of Virginia, we have made several calculated decisions to address the challenges brought forth by the increasing cargo volumes. This year’s effort has been largely devoted to addressing ongoing congestion. We are making headway, but to be sustainable we and our peers will have to generate operating income and have the capacity to invest significant capital for the future.
Our economy is moving forward again, but growing pressure on infrastructure, supply chain and port capacity could change that. Singular action by one component of the supply chain will not work. There will have to be a solution where all parties participate in a genuine dialogue of planning that is focused on problem-solving and driven by long-term, strategic thinking.
John F. Reinhart, CEO and Executive Director, Port of Virginia