By Virginia Economic Development Partnership
The Port of Virginia recently wrapped up $1.4 billion in upgrades to its Hampton Roads facilities, reaching milestones in sustainability and fluidity of operations. Earlier this year, the port opened a new, wider shipping channel in Norfolk Harbor that allows two-way traffic of ultra-large container vessels (ULCV), saving an estimated 15% of time on berth.
The port continues to work on its dredging initiative, which will deepen the shipping channel to 55 feet and the ocean approach to 59 feet. The $450 million project is expected to finish in fall 2025 and will give the port the deepest, widest channels on the East Coast.
“This is a true advantage for anyone delivering to or from America,” said Stephen Edwards, CEO and executive director of the Virginia Port Authority (VPA). “Our wider channel sets The Port of Virginia apart by allowing for consistent vessel flow, increasing berth and container yard efficiencies, and further improving harbor safety.”
Ocean carriers continue to incorporate larger vessels into their East Coast port rotations. Carriers that utilize The Port of Virginia can invest in ULCVs knowing the vessels will not outgrow the port’s capabilities, with no concern for channel width, overhead draft restrictions, capacity, or cargo handling infrastructure. Virginia’s combination of semi-automated terminals and cutting-edge technologies powers industry-best service metrics and efficiencies.
The port’s efficient operations helped it absorb additional cargo shipments stemming from the Key Bridge collision in Baltimore in March. VPA officials estimated that the port handled about 15,000 additional container units and shipments to keep supply chains moving before the Port of Baltimore was able to reopen.
“It’s a testament to our team, our operations, and the strategic investments in projects that we are able to meet these moments while still performing at the highest level,” Edwards said.
The port is also making advances in sustainability, becoming the first major East Coast facility to power its entire operation using 100% clean electricity, eight years ahead of its original 2032 target. The integration of new technology and the use of alternative energy solutions has resulted in a 70% reduction in total carbon emissions from the port’s 2017 baseline while increasing container volume 16% at the same time. The replacement of its diesel-powered straddle carriers with electric semi-automated stacking cranes (ASC) alone saves an estimated 1 million gallons of diesel each year.
It’s not just the straddle carriers — more than half of the equipment moving containers at the port’s terminals is electric or hybrid, including the first zero-emission utility tractor rigs on the East Coast. The port has committed to become carbon-neutral by 2040. The port is also supporting sustainability efforts in other ways, notably through the transition of the Portsmouth Marine Terminal (PMT) into a heavy-lift berth and storage area to support Dominion Energy’s Coastal Virginia Offshore Wind project. When complete in 2026, the project will add 2.6 gigawatts of renewable energy to Virginia’s portfolio, along with 900 jobs each year during the construction phase and 1,100 annual jobs during the operations phase.
With numerous major upgrades complete at the Hampton Roads facilities (PMT, Norfolk International Terminals, Newport News Marine Terminal, and Virginia International Gateway), the Virginia Port Authority is turning more of its attention to the Virginia Inland Port (VIP) in Warren County, an intermodal facility strategically located to serve the mid-Atlantic, Northeast, and Midwest markets. The facility offers frequent, streamlined rail connections to ocean terminals, efficient truck turn times, 24/7 container availability, and port-provided chassis supply at the terminal.
The VIP projects will expand on-terminal track capacity by 40%, add four rubber-tire gantry cranes to increase efficiency, and reconfigure the terminal’s container yard. Elsewhere in Hampton Roads, the VPA is spending $650 million to renovate, expand, and modernize the north terminal at Norfolk International Terminals to create capacity for 3.6 million annual twenty-foot equivalent units (TEU). The port will also add new electric ship-to-shore cranes and reconfigure its container stack yard for ASCs, increasing operational efficiency, and is expanding and modernizing its central rail yard to accommodate an additional 455,000 TEUs annually, increasing the port’s total rail capacity to 2 million TEUs.
The port’s central East Coast location is the basis of its appeal to shippers. The Port of Virginia can deliver to 75% of the U.S. population in two days or less, accessing key inland markets and major distribution centers throughout the Midwest and up and down the Eastern Seaboard.
Those efficiencies are driven by the most expansive rail reach of any East Coast port, with two Class I rail partners in CSX and Norfolk Southern to support seamless freight delivery. The port’s facilities are also convenient to the country’s third-largest state-maintained highway system, along with technological upgrades at the port that powers industry-best turn times and service metrics. The reach of the VIP provides direct connections to major inland markets including Chicago, Cincinnati, Memphis, and Louisville.
