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Return to Virginia Business - May 2003

Regional report

J. Robert Bray: The man behind Virginia's ports speaks out

by Virginia Business staff
May 2003

The Port of Hampton Roads has become evermore important with the war with Iraq and a massive strike last year by longshoremen on the West Coast. Not only is the port’s strategic significance underscored by the Navy’s massive base, but the Virginia Port Authority is seeing gains as shippers switch to its facilities and others on the East Coast because of their more peaceful labor relations. Thanks to its Mid-Atlantic location, Virginia has become a major locus of distribution centers operated by mass retailers like Wal-Mart, Target and Dollar Tree, which are taking advantage of a huge new wave of trade with Asia. The VPA plans a $3 billion expansion of its facilities over the next 20 years.

The man behind much of this is J. Robert Bray, who has been VPA executive director since 1978. A graduate of Hampton-Sydney College and the Wythe School of Law at the College of William and Mary, Bray has been a major figure in global trade affairs for decades. On April 1, he shared his views with Virginia Business Publisher Douglas Forshey and Executive Editor Peter Galuszka.

What’s going on with the port?
“We’ve had of course some increase in tonnage, although it’s difficult to judge because of the West Coast strike. A lot of cargo that used to go to the West Coast is now coming to the East Coast and is going to stay. ... The number is that we are more than 20 percent ahead of where we were at this time last year and about 20 percent of that is due to the West Coast strike.”

Where’s the other 80 percent from?
“It’s just an increase in business. It’s primarily Far East business. We would have gotten it anyhow, but a lot of it is directly attributable to the large increase in the distribution centers we have in Virginia.”
How much of an increase can be attributed to Target, which will soon open a distribution center in Suffolk?

“Their marketing people have said that they expect about 30,000 additional containers — spread out over a 12-month period from whenever they open. That’s huge. Home Depot (in Warren County) will start out from 8 to 15,000 boxes. Really good news for us.”

On the economy:
“I’ve been here for a long, long time, and I’ve never experienced any economy like this. It doesn’t make any sense. The stock market keeps going down, down, down, and everybody says that’s because of the war. Yet we’re all buying refrigerators, TV sets and automobiles. It just doesn’t make any sense.”

Any ideas or predictions?
“You’ve got to understand I am absolutely as far away from an economist as you can possibly get. If the war ends and settles by early summer, is there going to be any euphoria sweeping the country? Well, how many TV sets and dishwashers can you sell? It seems that everybody has bought one. Interest rates are dramatically low. ... That’s why I am absolutely, totally mystified by our economy. Every ship line we talk to is very bullish. All of our marketing people talk to the customers. All of our marketing people talk to the ship lines. And everybody is very bullish of what they’re going to send to America. ... I keep hearing it is a consumer-driven economy right now. Experience always tells me that after a while the consumer gets exhausted.”

Regarding the failed road referendum, if you look at the projects that could have been funded, one is the third crossing near Craney Island (which is a key part of the VPA’s planned $3 billion port expansion). How does the defeat affect the VPA and its plans for the big port expansion?
“It doesn’t from a standpoint of the initial construction at Craney Island. We had always envisioned and planned Craney Island such that it would be served from a spur off of State 640 known as the Western Freeway. ... When you get to 2030, you’ll need a third crossing. ... We need to start finding ways to fund the third crossing as soon as possible.

How will China’s acceptance in the World Trade Organization boost trade in Virginia?
“One of the things that’s very, very interesting is the increase in China trade. Our percentage of trade with China is way up and the percent of worldwide trade with the Chinese is absolutely incredible. ... All that goes back to the distribution centers we have in Virginia. We have some of the biggest, fastest most technically advanced cranes in the world.”


Return to Virginia Business - May 2003


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