Norfolk: An economic development jewel

by Bernie Niemeier
for Virginia Business
December 2007

Virginia is known for its varied regions. The ocean, the mountains, agricultural communities and major cities are all within a day’s drive of each other. Depending on where you grew up, a family vacation to Virginia Beach, the Eastern Shore or Nags Head most likely took you down U.S. 460 with a stop at the Virginia Diner for lunch or along I-64 east, with a barbeque fix at Pierce’s Pitt. Following either of these routes, it’s possible you never stopped in Norfolk.

If you don’t know this city, you should.

Norfolk and the Hampton Roads region are jewels in Virginia’s economic development landscape. Along with Northern Virginia, they contribute mightily to the business growth that keeps our commonwealth among the top performers in the nation.

It is almost impossible to overstate the economic impact the Port of Virginia has on other regions of the state. Across the commonwealth, hundreds of distribution centers rely on freight from more than 2 million cargo containers arriving each year. A visit to the Norfolk International Terminal showcases an industry hard at work supplying the needs of Virginians and offloading goods that find their way to destinations all across America.

Downtown Norfolk is a thriving business, retail and artistic community. Unlike many cities that have lost retail space to suburban locales, Norfolk has a shopping mall, the MacArthur Center, in the middle of its downtown. The business district includes state-of-the-art convention space at the Marriott Waterside and entertainment venues such as the Nauticus museum, Scope arena and the Attucks Theatre. A visit to the Chrysler Museum reveals a world-class art collection. Norfolk also has a brand-new passenger cruise terminal, the Half Moone Cruise and Celebration Center. Downtown housing, the Ghent District and a lively restaurant scene round out Norfolk’s attractions.

The presence of the military is another significant economic and cultural force. A single aircraft carrier stationed in Norfolk has twice the economic impact of the Ford auto assembly plant that closed in Norfolk this year. The military also brings a varied population to the region and makes Hampton Roads seem more comfortable with its diversity than other regions of the state.

Regional cooperation is working in Hampton Roads. The localities have approved the formation of the regional transportation authority, and its initial priorities include improving U.S. 460, widening I-64 and upgrading the Downtown and Midtown tunnels.

Transportation is a big issue. Recent efforts to reduce truck traffic on Hampton Boulevard are problematic for the continuing growth of Virginia’s ports. When the new Maersk terminal is fully built out, port capacity will double. The Craney Island project and other improvements will double total capacity again over the next 20 years. Port officials expect this growth ultimately will make Hampton Roads the No. 1 port on the East Coast, ultimately eclipsing New York. As offshore economies continue to grow, increased demand isn’t just speculative — it’s just a matter of time.
So, make it a point to see Norfolk. This region is driving Virginia’s economic success today and will continue to do so in the future. If you aren’t already doing business there, you probably will be soon.

Bernie Niemeier, publisher of Virginia Business, is a member of the 2007 Class of Lead Virginia. Lead Virginia is a nonpartisan statewide organization that brings together leaders with the intention of creating “social capital” that will positively impact Virginia’s future.