DAILY PRESS, May 20, 2015: Growing cargo volume appears to be improving the Port of Virginia’s bottom line and has port officials ready to reinvest more money into its facilities.

Port of Virginia

The Virginia Port Authority, which operates terminals in Portsmouth, Newport News and Norfolk, posted an operating profit of $3.9 million in April, according to a report released by the state port agency – the largest monthly profit posted so far in 2015.

Fiscal year-to-date profits top $10 million, the report said, a significant improvement over the $16.5 million loss the ports posted over the same period last year.

There are two months left in fiscal year 2015.

“Our financial performance is improving and as that happens, we are reinvesting the profits in the terminals,” said John F. Reinhart, Virginia Port Authority CEO and executive director, in a statement. “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.”

April proved to be a banner month for the Port of Virginia.

Port authority officials reported moving a total of 210,177 standard 20-foot containers, or TEUs, through the port last month — a 4.4 percent increase from 201,390 container units posted in April 2014.

Budget approved

Board officials passed the port authority’s $489.7 million budget. That’s a 9.2 percent increase over the forecasted fiscal year 2015 budget, which as of Feb. 28, was nearly $448.6 million – up 3.8 percent from its originally passed $432.2 million fiscal year 2015 budget.

Port officials anticipate generating a modest $2.7 operating revenue profit in fiscal year 2016, according to the report, and sets aside $123 million in capital improvement projects – the largest capital improvement plan passed by the board in more than a decade.

While none of the capital improvement projects are slated for its Newport News Marine Terminal, many of the improvements are geared toward its Norfolk International (NIT), Virginia International Gateway (VIG) and Portsmouth Marine (PMT) terminals – including money for the highly-anticipated North Gate project, which will expand the northern entrance from four to 22 lanes.

Other improvements include expanding rail at NIT, purchasing more container equipment and completing dredging projects in and around its South Hampton Roads terminals.

The bulk of the capital improvement money comes from $77.7 million in bonds the board approved earlier this year. The remaining funds are a mix of federal and state grants, and pay-as-you-go options that come from operating revenues.

As profits finally mount, port officials appear ready to reinvest much of its new revenue into its infrastructure immediately.

The board approved the purchase of 500 new chassis to improve motor carrier service at its Southside terminals.

“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…provide investments in equipment, personnel and system improvements to begin moving the port and the Commonwealth forward.”