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Finance: Virginia

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Virginia Port Reports Profitable April, Adopts $123 Million Capital Budget for FY 2016 

The Port of Virginia earned an operating profit in April of $3.9 million; reports John F. Reinhart, CEO and executive director of the Virginia Port Authority. The fiscal-year-to-date result is an operating profit of $10 million, versus a prior-year operating loss of $16 million, or an improvement of $26 million compared with the same period last year.

"Our financial performance is improving and as that happens, we are reinvesting the profits in the terminals," Mr. Reinhart told the VPA board of directors at their May 19 meeting. "We have a commitment to improving our delivery of service. We are not there yet, but positive operating results, combined with our strong bond rating puts us in a very good position to continue our investment strategy and work to improve cargo velocity."

The port’s April traffic data (Advisory, May 19, 2014) show container throughput up 5.5 percent from a year ago to 210,177 TEUs, as well as year-on-year increases for container cargo tonnage, truck moves, rail containers, and vessel calls. Mr. Reinhart said monthly TEU volumes above 200,000 units are becoming the norm and the port must invest now to create capacity and improve throughput.

At that meeting, the board approved the purchase of 500 new chassis to improve the service to motor carriers. That purchase is in addition to replacement scales at Norfolk International Terminals, facility upgrades at Pinners Point Container Yard, container handling equipment being delivered to Portsmouth Marine Terminal and the interim expansion at Virginia International Gateway. The board also approved a budget for fiscal 2016 that includes $123 million in capital projects, which is the largest capital plan in more than a decade.

"This budget will accelerate much-needed capital investments of which $70 million are for near-term improvements for motor carrier service, congestion relief and expanding capacity," said Board Chairman John G. Milliken. "This budget will generate a modest operating profit of $2.7 million in fiscal 2016 and provide investments in equipment, personnel and system improvements to begin moving the port and the Commonwealth forward."
 

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