Amid rising tensions with China, Virginia Gov. Glenn Youngkin will meet with Taiwanese President Tsai Ing-wen on his first international trade mission this month.
Youngkin will travel to Taipei City, Taiwan; Tokyo; and Seoul, South Korea, from April 24 to April 29, according to a Tuesday news release.
“I’m excited to represent the commonwealth in my first trade mission to Asia that will focus on economic development opportunities, our shared priorities and national security,” Youngkin said in a statement. “Taiwan, Japan and South Korea represent critical markets that will advance economic growth and prosperity in Virginia.”
Youngkin’s announcement comes on the heels of bellicose responses from China’s government over U.S. House speakers meeting with Tsai. In August 2022, then-House Speaker Nancy Pelosi met with Tsai in Taiwan, despite China’s announcement it would begin live-fire military drills encircling Taiwan as a result. House Speaker Kevin McCarthy plans to meet with Tsai Wednesday. Tsai landed in New York on March 29 and stayed through April 1, visited Guatemala and Belize, and is set to return to the U.S., landing in Los Angeles on Tuesday evening.
The meeting would “be an assault on the political foundation of Sino-U.S. relations,” a spokesperson for the Chinese Consulate in Los Angeles told The Wall Street Journal on Monday. “This is the first red line that must not be crossed.”
In late 2022, Youngkin pulled Virginia from consideration for a $3.5 billion Ford Motor Co. electric vehicle battery manufacturing plant over concerns about the Chinese company that would operate the plant, Contemporary Amperex Technology Ltd. The plant could have created 2,500 jobs in Pittsylvania County. In February, Ford announced it had chosen Michigan for the project.
Prior to Youngkin’s term, every Virginia governor for at least the last 20 years led a foreign trade mission within his first year. Youngkin’s decision to skip the July 2022 Farnborough International Airshow, held outside London, was also a deviation from previous administrations. In late June 2022, Youngkin’s chief of staff, Jeff Goettman, decided instead to send Virginia Secretary of Commerce Caren Merrick, according to The Washington Post.
In fall 2022, Youngkin told Virginia Business, that while he expected to go on foreign trade missions in the future, “I believe that the best opportunities for the commonwealth right now are for us to get our economic situation sorted out and to help the businesses that are here [to] grow and attract businesses that want to come to the United States or to Virginia.”
Virginia has 133 business establishments from Japan, 25 from South Korea and five from Taiwan, according to a news release.
The Port of Virginia may have as many as 30 Chinese ship-to-shore cranes that have come under scrutiny from Pentagon officials over national security concerns, and the port has five more on delivery for next year.
The cranes made by Shanghai Zhenhua Heavy Industries Co., known as ZPMC, a state-owned company whose major shareholder is China Communications Construction Co., are a possible security risk, according to a report from The Wall Street Journal, as U.S. defense and national security officials voiced concerns that China could use technology in the cranes to gather information about materiel being shipped to support U.S. military operations. ZPMC cranes contain sensors that can track containers’ origins and destinations, and the cranes also could be vulnerable to remote access attacks that could disrupt shipping, Pentagon and national security officials told the Journal.
The story comes amid heightened U.S. concerns about Chinese spying, including the recent surveillance balloon saga and Gov. Glenn Youngkin’s decision late last year to remove Virginia from consideration for a $3.5 billion Ford Motor Co. battery plant with ties to a Chinese company.
Virginia Port Authority spokesperson Joe Harris declined to confirm the port’s number of ZPMC-made cranes, although the port has announced purchases and arrivals of ZPMC cranes over the past few years.
The American Association of Port Authorities disputes the existence of a threat. “There have been no known security breaches as the result of any cranes at U.S. ports, despite alarmist media reports,” the association said in a statement. “Further, modern cranes are very fast and sophisticated, but even they can’t track the origin, destination or nature of the cargo.”
Operational technology devices such as cameras, weight sensors and safety sensors are often integrated into equipment systems and are largely the cause for defense officials’ concern around ZPMC’s cranes, said Chris Wolski, a former information security officer for Port Houston.
Potential espionage scenarios include using a crane’s camera system to view a container’s serial number and determine where a container was loaded in order to track it, he said. A bad actor could also disable crane systems and stop cargo operations by overriding safety sensors or causing false readings. “Things like that, if they’re not under control or could be remotely controlled by another party, then you can have potential security concerns,” Wolski said.
Gathering materiel shipment data — origins, destinations and manifests — wouldn’t provide much useful information, said Lonnie Henley, a retired intelligence officer and a senior fellow with the Foreign Policy Research Institute’s Asia program. “If I had information like that and had all the processing power in the world, I’m still not sure what military operational benefit I can gain from it,” he said, adding that clandestine shipments would likely already have obfuscated manifests.
In January, the Port of Virginia announced it had finalized the purchase of five ZPMC-manufactured cranes for $61.6 million. Delivery is set for December 2024, and the 1,827-ton cranes will replace two existing units at the Virginia International Gateway and three in the South Berth at Norfolk International Terminals. Able to handle ultra-large container vessels, the new cranes can reach across a vessel that is 26 containers wide, about three to four containers farther than most cranes can reach.
The Port of Virginia first began using ZPMC cranes in 2000. The Newport News Marine Terminal’s crane, which has been in service since 1982, appears to be the only crane at the port made by a different manufacturer — Crane Materials International (CMI). Harris did not answer a request for confirmation that the Newport News terminal’s crane is the sole one made by a manufacturer other than ZPMC.
In October 2022, the Virginia Port Authority sold three ZPMC ship-to-shore cranes and their replacements parts to Haina International Terminals, the operator of the Río Haina Port in the Dominican Republic, for $50,000 for each crane and $50,000 for associated replacement parts.
By the end of 2023, the U.S. Department of Transportation’s maritime administrator, working with the Department of Defense and others, is required to produce an unclassified study examining whether cranes from foreign manufacturers pose security risks to American ports. The requirement comes from part of the $850 billion National Defense Authorization Act passed in December 2022.
Heightened U.S.-China tensions
The reported security concerns about the cranes come amid a time of heightened tensions between the U.S. and China, whose foreign ministry spokesperson said on Monday that U.S. concerns about ZPMC cranes were “complete paranoia.” In February, the U.S. Air Force shot down a balloon off the coast of South Carolina that Biden administration officials identified as a Chinese high-altitude surveillance balloon. The U.S. began tracking the balloon’s progress on Jan. 28 as it crossed from Alaska to Canada to Idaho and the East Coast.
On Tuesday, a group of 12 bipartisan senators led by U.S. Sen. Mark Warner, D-Virginia, chairman of the Senate Select Committee on Intelligence, and Sen. John Thune, R-South Dakota, introduced legislation that would allow the Department of Commerce to review and prohibit “transactions involving information and communications technology products in which any foreign adversary has any interest and poses undue or unacceptable risk to national security.” The Restricting the Emergence of Security Threats that Risk Information and Communications Technology (RESTRICT) Act could ultimately allow the executive branch to ban TikTok.
In his opening statement for the Senate Intelligence Committee’s open hearing on worldwide threats on Wednesday, Warner said, “The [People’s Republic of China] has … become an active player in the international technology standards-setting bodies and is embedding itself in global supply chains. All this is why the United States must aggressively invest in the talent, tools and research to lead in tomorrow’s technologies.”
In late February, the Biden administration was considering revoking U.S. suppliers’ export licenses for sales to Chinese telecom company Huawei Technologies Co. The federal government has previously banned other Huawei products for sale and import in the U.S. over concerns that the devices could be used by Beijing for espionage.
In January, Youngkin confirmed he had pulled Virginia out of consideration for a $3.5 billion Ford Motor Co. electric vehicle battery plant, citing concerns over the involvement of China-based Contemporary Amperex Technology Ltd. (CATL), which would operate the plant. In February, Ford announced it would build the plant in Michigan.
ZPMC has about 70% of the world market share for large-scale cranes for handling port containers and bulk materials like ore and coal, according to its website, and its products have entered 104 countries. Nearly 80% of the cranes in use at U.S. ports are made by ZPMC, according to The Wall Street Journal.
No cranes comparable to ZPMC’s are manufactured in the U.S., The Wall Street Journal reported, and an alternative used by some U.S. ports from Finnish company Konecranes costs about a third more. The AAPA advocates for government support for U.S. production of port equipment and plans to unveil a bill outlining its envisioned support at its summit later this month.
One step port authorities can take to mitigate risks from foreign-made technology, Wolski said, is conducting a post-delivery systems check including examining the system code and eliminate places for potential backdoor access. “Anything that’s connected to a computer network is vulnerable to a cyberattack,” Wolski said. “It’s a matter of how well they’ve set up the defense for the cybersecurity of the organization and of the equipment.”
Some ports also mitigate risks by using software from Swiss company ABB Ltd. with the cargo cranes instead of using ZPMC’s software, according to The Wall Street Journal. Harris did not respond to a request about which software the Port of Virginia runs on its cranes.
Nevertheless, the Port of Virginia appears to already be taking cybersecurity precautions around the cranes, according to a statement from Harris: “Before any new cranes are put into service, they are subject to a detailed forensic cyberanalysis that is performed by one of the nation’s federal law enforcement agencies. New cranes awaiting analysis are isolated with dedicated firewalls to ensure there is no contact with port networks or the internet.”
Editor’s note:This article has been amended to reflect the total possible number of ZPMC-made cranes used by the Port of Virginia.
Eleven months into his first term in elected office, Gov. Glenn Youngkin can boast of several economic development successes and a few legislative wins, but one thing a lot of observers are discussing is his national profile and what it could mean in 2024.
Youngkin — and his careful campaign to win over not only Trump fans but moderates who didn’t support the 45th president — is of keen interest to politicos who see him as a possible model for other GOP candidates seeking office.
The governor’s frequent appearances on Fox News and his hectic travel schedule, which has included trips to stump for Republican candidates in Connecticut, Maine, Arizona, Michigan, Oregon and other states, has raised questions about whether Youngkin views his governorship as a steppingstone to a presidential run in 2024.
During an October appearance on CNN’s “State of the Union,” Youngkin said the Republican Party “has to be a party where we are not shunning people and excluding them, because we don’t agree on everything.”
Virginia state Sen. Louise Lucas, who has made a cottage industry out of poking at Youngkin on Twitter, joked in September that the governor “has spent so much time in Texas that now he thinks Virginia is a border state.” Along more serious lines, she and other Senate Democrats have vowed to block abortion restrictions proposed by the governor and have spoken out against Youngkin’s new educational policies regarding transgender students. Many Democrats view the moves as discriminatory, although Youngkin said it’s meant to involve parents more fully in their children’s schooling.
In Virginia Business’ check-in with the governor, he doesn’t completely rule out running for president in 2024 but argues that his appearances in political battleground states are mainly to repay the Republican Governors Association for its support of his campaign.
Meanwhile, Youngkin has yet to embark on — or announce — any international trade missions but says he does plan to travel overseas on behalf of the commonwealth once Virginia’s economy is “sorted out.”
The former Carlyle Group co-CEO is much more comfortable talking about Virginia’s recent economic wins, including The Lego Group’s $1 billion toy factory and Plenty Unlimited Inc.’s $300 million indoor vertical farm operation, both coming to Chesterfield County. There are also the recent corporate headquarters relocations of Raytheon Technologies Corp. and Boeing Co. to Arlington, making Virginia home to the second- and third-largest space and defense contractors in the world.
In recent months, Youngkin, who has been skeptical of the state’s move toward decarbonization, unveiled a new energy policy, calling for increased investment in nuclear power. He also has called for overhauling the state’s workforce development efforts, saying that realigning the efforts of numerous agencies and hundreds of programs statewide under one umbrella will be a key part of his 2023 legislative agenda. “At the end of the day,” the governor says, “companies need workers.” — VB editors
Virginia Business: As you near the completion of your first year in office, how do you think your administration’s economic development efforts compare so far with previous governors?
Gov. Glenn Youngkin: I am very encouraged by our first eight months, and I think what we have really demonstrated is, first, Virginia’s open for business. Unfortunately, over the previous eight years, we didn’t really grow much, less than 1% on a compounded rate. We really didn’t add many jobs over the eight-year period. One of the things that I’ve been really focused on is getting our job engine cranked back up.
Youngkin speaks at a Sept. 22 fundraiser for Kansas gubernatorial candidate Derek Schmidt at Hayward’s Pit Bar B Que in Shawnee, Kansas. Photo by Mark Reinstein/MediaPunch/IPX
I think for the first six months, we were just up under 100,000 jobs. That’s very exciting, because that’s a faster rate than we’ve ever grown. It’s really important that we start growing. We were 47th in job recovery coming out of the pandemic in 2021. Now we’re in the top 15. [Editor’s note: From August 2021 to August 2022, Virginia gained an estimated 118,100 jobs, according to the Virginia Employment Commission. As of early September 2021, Virginia ranked 49th in percentage of jobs recovered since February 2020. As of June 2022, Virginia was 27th in job recovery, according to U.S. Bureau of Labor Statistics data.]
The second big thing that we’ve been able to do is demonstrate that we have a package of initiatives that are taking Virginia, which is a wonderful state for business, and we’re going to make it the best. That’s our big tax cuts that we got done in the first budget cycle … [and] our hard work on making sure we’re addressing an … overburdensome regulatory environment. Our Office of Regulatory Management is off and running.
All the work we’re doing on workforce … is hugely important in order to give companies confidence that we’re going to educate and build the workforce of the future.
Then, finally, work we’re doing to be ready for companies — sites investment, site development, is hugely important. I think that’s translated into some great wins.
… We see companies come from other states, like Boeing and Raytheon, companies that are here, like Hilton and Google, growing, [and] we see international businesses coming here like Lego … picking Chesterfield County. … Then we see new industries starting, and in the whole indoor-growing world, which has found a new hub in Virginia, where we all of a sudden see Plenty [Unlimited] and AeroFarms.
We got a lot to do, though. I want to continue to work on our regulatory environment. I want to continue to get taxes down. We got to continue to build workforce. We’ve got to continue to invest in our transportation infrastructure. We got a long way to go, but so far, so good.
VB: We lost a $5.5 billion Hyundai plant to Georgia, partly because the Southern Virginia Megasite wasn’t as ready as Georgia’s site. What do we need to do to be more competitive in landing deals like this?
Youngkin:This has unfortunately been an issue that’s been unaddressed by previous administrations, and states around us were addressing it. We weren’t ready. We called for and submitted an amendment into the [2022] budget process to put $150 million into site development and site readiness. In the grand scheme of things, it’s not going to be enough, and we’re going to have to put more in. We have got to rapidly accelerate the development of sites and, particularly, megasites. [Editor’s note: Youngkin’s predecessor, Gov. Ralph Northam, also advocated for the $159 million allocation that the General Assembly approved this year for the Virginia Business Ready Sites Program. Before that, the Assembly invested roughly $1 million per year in site readiness.]
We’re behind. It takes time to catch back up. The funding is important. We are … prioritizing the best sites around the commonwealth and starting to invest in them. I think this is going to be our last step of really going to the forefront for these megaprojects.
We’ve got the automotive industry reshoring, we’ve got the chip industry … reshoring, pharmaceuticals reshoring. We want them all in Virginia, and we need to make sure we have sites ready for them.
VB: Georgia offered more than $1 billion in incentives to Hyundai. Should Virginia be offering larger incentives?
Youngkin: We don’t have a problem in losing the incentive battle. We’re losing the site battle, and that’s the bottom line. … The reality, of course, is that when a company is going to put $6 [billion], $8 [billion or] $10 billion in the ground, the difference of 12 to 18 to 24 months in being up and running matters a lot, and that’s where Virginia’s behind.
We have found a very comfortable construct to compete from an incentive standpoint. I think we’ve been successful. Lego demonstrated that, and the Plenty [Unlimited] arrangement demonstrated that. I’m very pleased with the effort that we’re putting forth in order to provide the right incentive package.
I think when we have all of our sites caught up … [and] bring to bear all the great things that the commonwealth has plus competitive incentive packages, we win. We have the best location: Virginia’s within a day’s drive of half the country’s population. With the Port of Virginia, we have the best logistics hub on the East Coast. … We have got a great offering for companies. The big thing for us is getting our sites ready.
VB:Every Virginia governor for at least the last 20 years has gone on foreign trade missions, but so far, you haven’t. What are your plans for marketing Virginia overseas?
Youngkin: I do plan on going. … I’ve traveled a lot during my business career and have extensive relationships in lots of places. I believe that the best opportunities for the commonwealth right now are for us to get our economic situation sorted out and to help the businesses that are here [to] grow and attract businesses that want to come to the United States or to Virginia. I do expect that I’ll go on trade missions.
VB: You’ve made high-profile trips to support GOP gubernatorial candidates across the nation. What do you say to people speculating that you’re planning a presidential run?
Youngkin: I think it’s representative of where we are politically. … I’m flattered by it all the time, but at the end of the day, I have been in this position for less than a year. I understand we’ve flipped a state that had been blue. … I also understand that people are excited about the fact we’ve delivered on our Day One game plan and gotten Virginia moving. Right now, I’m really focused on being the best governor that I can be.
I’m very honored to be able to help some gubernatorial candidates around the country. The Republican Governors Association was hugely helpful to me when I was running, and it’s a chance for me to return the favor for other governors. I’ve only been working on governors’ races … and then working in the commonwealth to help Republican congressional candidates get elected.
VB: What are your economic development priorities for 2023? What sectors are you looking to grow?
Youngkin: First of all, there’s building blocks that have to continue to be put in place. This is sector-agnostic at this point. One, we have to get sites moving, and that’s megasites and some of the smaller sites. Second of all, we have to continue with our massive push in workforce development. Companies don’t want to come here if they don’t think they can have a great workforce.
Finally, we’ve got an overall cost-of-business regulatory framework that I think we can go a long way on. … We are cutting anti-business regulatory hurdles.
On top of that, there are a number of sectors that we find ourselves really growing quickly in. I think the whole pharmaceutical and bioscience world is a great place for Virginia. We’ve had huge wins in the pharmaceutical cluster here in Petersburg and Richmond and Chesterfield County. I’m very excited about the bioresearch that’s going on across the commonwealth.
I think we’ve got a tremendous leg up in advanced manufacturing, and we’ve got a great workforce. We’ve just got to bring it together around our defense companies and our aerospace companies, not to mention all of the great headway that is being made on advanced manufacturing in the supply chains into the automotive sector, etc.
Third, I’m very excited about our aerospace sector … what’s happening in Wallops Island, along with the buildup of our unmanned aerial systems, has been great. I think we’ve got some real hubs of new and exciting things happening. Not to mention the [next-generation] agri-tech world.
Then we have our entire computer science and technology world where Virginia’s just out in front. We look at where it begins with our data center dominance all the way up through end development. Our cyber capabilities are extraordinary, and these are sectors that we should continue to grow rapidly.
VB: What role do you see the Virginia Ready initiative you and your wife co-founded playing in the state’s workforce development efforts?
Youngkin:I would hope that Virginia Ready can continue to play a big part in supporting folks getting short-term training for in-demand jobs. One of the things we’ve seen is that our community college system is poised to play a major role in this, but it’s episodic in how it is doing it.
I think there’s a great opportunity here for organizations like Virginia Ready, and there’s lots of other ones that support people who are looking for new skills and training. … Our community college system can play an extraordinarily interesting role in preparing people for careers of the future. We can do that even in high school. This is the exciting part, where our community colleges partnered with K-12 education … with dual enrollment and the idea that you can graduate from high school with a two-year associate’s degree or a credential.
We’ve got to prepare our students coming out of Virginia’s high schools to be college-ready or career-ready, and I do believe that our community college system can play an enormous role in that.
VB: Senate Democrats are still in charge of the General Assembly, and they blocked your proposed gas tax break. Inflation is high and some economists are predicting a recession is likely. What do you hope to do for families and businesses in the 2023 General Assembly session?
Youngkin: My learnings from this first year is that common sense can prevail mostly. We got everything in our Day One agenda moving, all of it, other than a suspension of the gas tax.
Virginia’s universities have decided that they agree with me, they’re going to keep tuition flat this year.
I’ll need the General Assembly to finally come along, but we got $4 billion of tax cuts done last year. I think the General Assembly recognizes that if we continue to overtax Virginians like they have been doing, we’re going to continue to drive people away, and that’s no winning formula. I’m optimistic that this idea of bringing down the cost of living in Virginia, providing tax breaks for Virginians [and] going to work on affordable and accessible housing is going to be really important. We can make Virginia the best place to live, work and raise [a] family.
At the end of the day, companies need workers. I was first very clear with the General Assembly … that tax cuts should extend to both individuals and to corporations. I think that’s a really important step for us to begin to bring down the tax burden across all taxpayers in Virginia.
Then second of all, at the heart of all of this is making sure that we have a robust workforce for companies to hire and for people to thrive. … Bringing down the cost of living, bringing down the tax burden, is really important in making housing affordable and accessible.
Virginia’s awesome. We just have to make it a little more awesome so that people will choose to stay here.
Massimo Zanetti Beverage USA, the North American operating unit of the Italian coffee roaster Zanetti Beverage Group, will invest $29.1 million to consolidate and expand operations at its Suffolk roasting facility, a project expected to create 79 jobs, Gov. Glenn Youngkin announced Monday.
“Massimo Zanetti Beverage USA’s continued expansion in Virginia speaks volumes about the business climate, infrastructure and top-notch talent found in the city of Suffolk and the region,” Youngkin said in a statement. “Food and beverage processing is Virginia’s second-largest manufacturing sector and one of our fastest-growing industries, thanks to investments by corporate partners like MZB-USA.”
Massimo Zanetti Beverage USA roasts, grinds and packages beans for retail brands including Chock full o’Nuts, Segafredo Zanetti and Kauai Coffee. At its Suffolk facility, the company produces proprietary and private label coffee, tea and drink mixes for retail and food service customers. Massimo Zanetti Beverage Group has nearly 50 companies operating in more than 100 countries.
The company also began operating a Suffolk distribution center in November 2021 and held the official dedication in March.
“This business decision fits with our long-term strategic goals to continue to invest in Hampton Roads,”MZB-USA President and CEO John Boyle said in a statement, Our proximity to major transit lanes and the Port of Virginia, one of the largest coffee ports in the country, further enhances our position and allows for continued growth, while adding to the economic vitality of the area.”
The Virginia Economic Development Partnership worked with the city of Suffolk, the Hampton Roads Alliance and the Port of Virginia to secure the project, for which Virginia competed with New Jersey. Youngkin approved a $450,000 grant from the Commonwealth’s Opportunity Fund to assist Suffolk. MZB-USA is eligible to receive benefits from the Port of Virginia Economic and Infrastructure Development Zone Grant Program.
The Virginia Talent Accelerator Program, a workforce initiative created by the VEDP and Virginia Community College System, will provide customizable recruitment and training services at no cost to the company.
On Aug. 29, 2005, Jason El Koubi’s first day as research and policy director for Louisiana’s Baton Rouge regional chamber of commerce, Hurricane Katrina slammed into the state, resetting El Koubi’s and the state’s trajectory. It was a fast lesson in crisis management, but also one in economic transformation.
That job was among his first since returning to the U.S. after earning his master’s from The London School of Economics and Political Science. El Koubi was one of the first hires at the newly formed Baton Rouge Area Chamber, which was then headed by Stephen Moret, whom El Koubi had met at Louisiana State University when he was a student and Moret was assistant to the school’s chancellor.
After Moret became Louisiana’s secretary of economic development in 2008, he tapped El Koubi as an assistant secretary. And then in 2017, when Moret was named the Virginia Economic Development Partnership’s president and CEO, Moret recruited El Koubi to join him in Virginia, hiring El Koubi as VEDP’s executive vice president.
During Moret’s well-regarded tenure at VEDP’s helm, Virginia landed Amazon.com Inc.’s $2.5 billion-plus HQ2 East Coast head- quarters and secured back-to-back wins as CNBC’s Top State for Business.
Moret departed VEDP at the end of 2021 to become president and CEO of Indianapolis-based Strada Education Network. And in March, VEDP’s board of directors chose El Koubi, who had been serving as VEDP’s interim leader, to succeed Moret as the state economic development agency’s next president and CEO.
Since joining VEDP, El Koubi, 43, has orchestrated major initiatives, including the development and implementation of VEDP’s Strategic Plan for Economic Development of the Commonwealth. He’s also been a key player in securing major deals, including Amazon’s HQ2, the $714 million Blue Star NBR LLC medical glove plant in Wythe County, CoStar Group Inc.’s $460 million Richmond expansion and CMA CGM Group’s $36 million expansion in Norfolk.
One of the biggest economic development issues El Koubi has worked on is addressing Virginia’s shortage of large, ready-to-build industrial sites needed for the commonwealth to be competitive in attracting major projects.
El Koubi says he chose to work in economic development because he “feels a very strong calling towards service” and enjoys finding opportunities and solving problems that add value to communities and help advance society.
“I believe collaboration and communication are important,” he says, “not only because economic development is a team sport, but also because strong, collaborative approaches and relationships tend to produce solutions that are more effective and have greater potential for enduring impact.”
As VEDP’s leader, he says, “I get to advance opportunities that are intrinsically important and work with a wide variety of other people who want to contribute to the growth and prosperity of their state and communities and it’s a tremendously enriching experience.”
Virginia Business spoke with El Koubi in March, days after he was named VEDP’s president and CEO.
Virginia Business: Why did you choose to follow Stephen Moret to Virginia after working with him in Louisiana? What did you see in the commonwealth that drew you here? Jason El Koubi:Some of the things I really value in Stephen, in our professional relationship — it all starts with his great integrity, his intelligence, his collaboration with a wide range of partners, his orientation towards problem solving and pursuing a big, worthy vision for the communities he’s trying to serve. Those are all things that I really value and try to emulate as a leader for Virginia.
Virginia is just such a special place and, as an American, I am attracted to Virginia because it’s such a big part of the story of the country that I love. On a personal level, Virginia is a beautiful state with four mild seasons, great access to the ocean and to the mountains and a wide range of cultural communities and the nation’s capital. It’s just a wonderful place to live and work and explore. My wife, Allison, and I have just fallen in love with Virginia over the last five years and think of it as our adopted home.
VB: Some would call you Stephen Moret’s protégé or his heir apparent. How will your approach to running VEDP be similar or different than his? El Koubi: There are many qualities that Stephen embodies that as a leader that I would aspire to emulate: his integrity, his character, his collaboration with partners across the commonwealth in a steadfast commitment to advance the transformational goals of the Strategic Plan For Economic Development of the Commonwealth, positioning Virginia as a leader for job growth and growth in median earned income [and] doing that in a way where every region of Virginia participates in that prosperity. Those are all things that I’m very committed to and look to continue. The charge that I have been given by VEDP’s board is to stay the course and accelerate Virginia’s economic trajectory.
While we’ve made a lot of progress over the past few years, there’s a lot more work to do. I’m excited to work with Gov. Glenn Youngkin’s administration and the leaders in the General Assembly as well as with partners across the commonwealth to accelerate Virginia’s economic growth and to fulfill the potential of generating growth and prosperity in every region of Virginia.
VB: Virginia was ranked CNBC’s Top State for Business for the second time in a row last year. How do you see VEDP’s role in continuing to keep Virginia on top of rankings like that? El Koubi:Virginia has made some significant progress towards securing a top position in state business climate rankings, and while we are at the top or near the top in some, there are certainly others where we have much more room to grow.
There are a number of things we need to do to secure a top position across the board. Those things broadly fall into three categories: The first is our actual economic performance as measured by recent historical performance, as well as expectations of future performance. Virginia is lagging somewhat in its economic recovery from the pandemic and needs to accelerate, and that will be an important factor.
The VEDP’s goal and Virginia’s goal of being an economic growth leader is an essential part of what it will take to position the commonwealth at the top of the state business climate rankings.
Secondly, a big part of what the rankings measure is the business climate, which is largely a reflection of the policy and programmatic choices we make, so it’s very important to maintain and strengthen Virginia as a pro-business location.
Finally, Virginia’s reputation as a location for businesses is also a significant factor in many of the rankings, particularly those that are based on surveys of site selection consultants and corporate executives.
A big part of what we need to do there is make sure that we are marketing Virginia’s strengths as a business location for existing businesses and for new businesses to business decision-makers, and this is an area where there’s a lot of room for improvement. Virginia does not invest as much in economic development marketing as many of our peer states or competitors, and we need to really focus on this opportunity to tell our story and to articulate Virginia’s value proposition to business decision-makers across the country and around the world.
VB:Which industries have the most growth potential in Virginia? El Koubi:We take a portfolio approach with 14 different target industry sectors that we are trying to cultivate at the state level. It’s important to have a portfolio approach because we’re trying to generate outcomes that not only position the state overall for economic success, but we also want to ensure that each region of Virginia is able to participate in the growth of the economy. When you look at that group of targeted niche industry sectors … it includes some areas of traditional strength in Virginia — things like data centers, things like software, things like supply chain management, food and beverage processing, advanced materials. It also includes emerging sectors like offshore wind, life sciences, aerospace and cybersecurity. It is a portfolio that is designed to ensure that we achieve strong growth overall as a state, but also that we do it in a way where each region of Virginia can participate in that progress.
When you look at those target sectors, there are some that are critically important. The tech sector in general, think about software development. Think about cybersecurity. Think about data centers, tech centers. The tech … sector generally will be a strong sector with a strong engine of job growth for Virginia. My aspiration is that we not only see strong growth in that sector, and the large markets that have traditionally seen growth, including Northern Virginia, but that we see the tech sector growth spread across other regions of Virginia going forward.
I will also say that for small metros and for rural regions, it’s going to be very important that we maintain our focus and have success in the manufacturing sector. For many regions, manufacturing represents a majority of the jobs that get announced, in terms of economic development projects and in some cases, manufacturing represents the strong majority of announced direct jobs. So those are two sectors that I would put particular emphasis on.
During his tenure at VEDP, which he joined in 2017, El Koubi has been a key player in securing major deals such as Amazon.com Inc.’s $2.5 billion-plus HQ2 in Arlington and the $714 million Blue Star NBR medical glove manufacturing operation in Wythe County. Photo by Matthew R.O. Brown
VB: What is it like to work with a governor who has a background as a CEO in private industry, like Gov. Youngkin? El Koubi:It has been a tremendous pleasure to work with Gov. Youngkin and his team. He has made economic growth and economic development a top priority in terms of the time he’s willing to spend to personally engage and helping Virginia businesses grow and helping to recruit new business to Virginia. He is a tremendous asset, and we’re already hearing that affirmed by the site consultants and the business executives that have interacted with the governor on competitive economic development projects. His sophistication, his deep experience [and] his relationships all make him tremendously effective and helpful in Virginia’s economic development progress.
VB:What was your role in bringing Amazon’s HQ2 to Virginia? El Koubi:I was part of a small leadership team at VEDP that oversaw the Amazon HQ2 project on behalf of the commonwealth from start to finish. We’ve worked collaboratively with many other important partners at the local, regional and state levels. I was involved in almost all aspects of the project, but the place where I contributed the most sort of direct leadership was in working with transportation partners to design and develop and deliver the nearly $300 million investment in public transportation improvements. That became a core part of the overall package that secured the project here in Virginia.
VB:How has the pandemic changed economic development, and do you think it will have a long-term impact? El Koubi: In general, the pandemic has accelerated a number of trends that are already underway, and the impacts of the pandemic are likely to be seen in that respect permanently.
One is the acceleration of the sort of digitalization of our economy with a pronounced shift towards online activity, including e-commerce, and that’s showing up not just in the tech space, but also in warehousing and distribution. So that’s very significant. The shift towards telework among many professions, I think, particularly towards hybrid work now that we’re coming out of [the pandemic], is likely to stay, at least to some extent.
The move towards greater resiliency in supply chains has created quite a wave of manufacturing investment that is generating a lot of economic development project activity.
The final thing is, and I don’t know if it’s just directly a result of the pandemic or just coincidental, but we’ve seen a pronounced increase in the scale of many projects, particularly in the advanced manufacturing space over the last couple of years, and we have seen a much greater frequency of mega projects — those that represent more than 1,000 direct jobs, more than a billion dollars in capital investment. We’re seeing that from a range of sectors, including electric vehicles, including semiconductors, including battery manufacturing and other advanced manufacturing enterprises.
VB: Workers are increasingly becoming unable to find affordable housing near where they work, particularly in Northern Virginia. How does this play into the equation as Virginia is working to attract and retain businesses? El Koubi:Affordable housing has become a major challenge for most successful large metros, including Northern Virginia, but I would also say that the availability of affordable housing is a challenge that we are seeing in markets across America and certainly in other parts of Virginia. It’s clear that partnerships between the economic development community and in the housing community are going to become more important in the coming years to ensure that our communities and our state can manage growth appropriately and maintain a competitive cost of living for Virginia citizens.
VB:VEDP developed the Virginia International Trade Plan in 2019, with a goal of increasing Virginia exports by 50% by 2035. How is that being implemented? El Koubi: VEDP’s international trade team helps more than 300 Virginia businesses sell their goods and services to international markets around the world. Every single year, those activities help Virginia businesses generate more than $600 million in new international sales. They help support more than 6,000 trade-supported jobs across the commonwealth, and the Virginia businesses that use those programs are overwhelmingly positive about their experience. Nearly 100% of those businesses that use the programs say that the programs are of high quality and that they would recommend Virginia’s international trade programs to other businesses.
There’s only one problem and that is that those international trade programs are highly oversubscribed. In order to open these valuable resources to more Virginia companies, a steering committee was established to develop a comprehensive international trade plan for Virginia. The committee included private and public sector representatives and important stakeholders — including the Virginia Chamber of Commerce, the Virginia Agribusiness Council and the Virginia Manufacturers Association. We worked with our agency partners at the Port of Virginia, the Virginia Department of Agriculture and Consumer Services, the Virginia Tourism Corp. and the Virginia Department of Forestry to ensure the plan represented all sectors of Virginia’s economy and the organizations that serve those sectors. The resulting International Trade Strategic Plan for Virginia provides a blueprint for expanding Virginia’s export promotion services, VEDP’s international trade programs, as well as makes recommendations for other initiatives that would expand Virginia exports and that would ultimately enhance the trade intensity of Virginia’s economy.
VEDP’s international trade team is leading the implementation of the plan and has executed several important initiatives in the last year, including launching a brand-new program focused on assisting companies in managing their international supply chains. The team is also regularly meeting with the partner organizations who helped to develop the plan. This work is guided by the Virginia Advisory Committee on International Trade, a 10-member body made up of private and public sector leaders who advise VEDP and the commonwealth on trade matters and how they impact our economy.
We’re pleased with the progress being made and hope that, with full funding for the plan, we can serve several hundred more Virginia companies each year with our services, leading to more exports for those firms and even greater trade-driven job growth for Virginia’s economy.
VB: What can the Virginia business community expect with you at the helm of VEDP? El Koubi: I aspire to be a collaborative partner … someone who’s a champion for their success and a partner in advancing the commonwealth and its communities together.
Amid some of the toughest months of the pandemic, the Port of Virginia set cargo records, processing more than 3.2 million TEUs (20-foot equivalent units) for the fiscal year ending June 30, 2021, and generating more than $100.1 billion in ancillary economic impact, according to the port’s fiscal 2021 economic impact report released Thursday.
According to the report, which was prepared by William & Mary’s Raymond A. Mason School of Business in conjunction with Glen Allen-based Mangum Economics, during fiscal 2021, the economic impact from the cargo flowing through the six-terminal port system was responsible for generating:
436,667 part-time and full-time jobs;
$100.1 billion in spending;
$47.4 billion in Virginia gross state product;
$27.2 billion in labor income;
and $2.7 billion in state and local taxes and fees.
“It is important to note that the port had this record-setting year and results in a most challenging trade environment,” Virginia Port Authority CEO and Executive Director Stephen A. Edwards wrote in a letter introducing the FY2021 report. “In FY21, as the global supply chain was facing unprecedented challenges, the Port of Virginia was a model of efficiency and performance.”
More than 40% of imports that move through the Port of Virginia are used as “inputs” for producing goods for sale in Virginia and across the nation, the report said, and imports have a “large impact on Virginia income and jobs.”
The last time the port commissioned an economic impact study was in 2018. The analysis includes activity at the Norfolk International Terminals, Newport News Marine Terminal, the Virginia International Gateway Terminal and Portsmouth Marine Terminal in Hampton Roads, as well as the Richmond Marine Terminal and the Virginia Inland Port in Front Royal. All combined, 23.4 million tons of cargo were moved through the terminals in FY21.
“The Port of Virginia’s success requires a continuing process of preparation,” the report concluded. “It requires visionary leadership, proactive investment in technology and infrastructure, as well as a healthy economic environment for citizens through businesses that create the jobs. The forward-looking approach that positioned the terminals so well to deal with the challenges within these pandemic years deserves support as additional initiatives are required.”
Quebec’s delegate general in New York, Martine Hébert, visited Virginia this week on a trip to strengthen economic relations between her province and the commonwealth.
Appointed in August by Quebec Premier François Legault and based out of New York, Hébert is responsible for promoting the province’s economic interests in the mid-Atlantic region. She previously served as the province’s delegate to Chicago.
Bilateral trade in goods between Quebec and Virginia stands around $1 billion a year, according to Hébert’s office. Quebec companies with a strong presence in Virginia include IT business and consulting service CGI, Intertape Polymer Group Inc., Alimentation Couche-Tard (which owns Couche-Tard, Circle K, Ingo and Kangaroo Express) and professional services firm WSP Global Inc. Virginia companies with significant operations in Quebec include Reston-based contractor General Dynamics Corp., McLean-based Hilton Worldwide Holdings Inc., McLean-based Capital One Financial Corp. and Henrico-based The Brink’s Co.
During her three-day trade mission, which took her to Richmond and Norfolk between Dec. 14 and Dec. 16, Hébert met with representatives from the Virginia Economic Development Partnership, the Port of Virginia, the Virginia Department of Energy, the Virginia Passenger Rail Authority, Dominion Energy Inc. and other Virginia stakeholders.
Hébert spoke with Virginia Business on Thursday at the close of her trade trip. Answers have been edited for length and clarity.
Virginia Business: What are some similarities you’ve seen between Virginia and Quebec? Martine Hébert: The province of Quebec is almost the same size as Virginia in terms of population. We have many similarities with Virginia, such as a strong primary sector: mining and agriculture. . We have a lot of agriculture also, which is also the case in Virginia. Both regions have high tech industries such as aerospace and IT, as well as highly strategic energy, logistics and infrastructure sectors. And both have strong commitments to reduce greenhouse gas emissions. I think that we can build on those similarities, and relationships that we already have and encourage the development of mutually beneficial partnerships.
VB: What are some similarities that could lead to increased partnerships? Hébert: Quebec is [one of the largest producers] of hydroelectricity. Almost 99% of our electricity is renewable and clean energy. More than 95% of it is produced with hydroelectricity. … We’ve been partnering with many states in the mid-Atlantic region [already].
I know that Virginia has very ambitious plans … in terms of wind power energy production. It is fantastic to see the projects that are going to come. There are some partnerships also to establish between Quebec and Virginia in that sense.
In terms of renewable energy, the Quebec government has also invested a lot into development and innovation in wind power and solar, so we have very good players in Quebec. Actually, my trip here was the occasion to invite some of the key players in wind power energy in Virginia to our [event dedicated to] wind power … that we will hold in New York in January. [There are] lots of occasions to start the discussion. … How can we contribute and how can we learn from each other and contribute to each other’s success within this [energy] transition?
Martine Hébert (L) and Jennifer Palestrant, chief deputy of the Virginia Department of Energy, met on Hébert’s trip.
VB: What other opportunities for trade does Quebec offer for clean energy? Hébert: Wind power is only one example, but when you talk about wind power, you talk about intermittent energy. Intermittent energy means also that you have to have storage capacity.
In Quebec, we are … very innovative in terms of energy storage. We have companies like EVLO, who are specialized in this, our division of the Hydro-Québec [public electrical utility].
We’re starting the discussion. These are only a couple of examples of change that are possible. We will see how we can make this happen and how we can contribute to each other’s success by maybe digging a little bit more into where are the areas for collaboration and what are the needs for collaboration that we can fill with Quebec expertise.
VB: Are there opportunities to strengthen ties outside of wind? Hébert: We also have all of the electric transportation field. … We have major key players who are already implemented in the United States and are selling products to the U.S. … You have some Quebec electric buses in many, many states and many big cities around the United States. … We have companies who are into charging stations, specialized vehicles like electric school buses. Of course, all of the vehicles that are produced in Quebec and in the United States by these players, both Lion [Electric Co.] and Nova Bus [owned by Volvo Buses], for example, they have plants and facilities in the United States to produce these vehicles.
The other big opportunity is in defense. As I said earlier, I think that the pandemic also showed us the importance of securing our supply chains. Critical minerals are one of the main concerns of many, many countries. Fortunately, we have a lot of critical minerals in our soil in Quebec. How can we better partner with our U.S. partners to secure the supply of critical minerals and make sure that we have a large American supply chain that is protected in North America? That’s another example.
Also, we have some of the major world players. I’m thinking about CAE [Inc.], which, originally, it was a Quebec company, but you have CAE USA which is now here and is very active in the defense industry, providing, for example, training with flight simulators. … These are also areas where we can certainly continue to contribute together and reinforce via these originally Quebec companies who are now implemented in the U.S.
VB: We hope you’ve enjoyed your trip and had some good hospitality.
Hébert: What I would say as a conclusion of my trip is that I saw everywhere Virginia is for lovers, but I would say Virginia is for Quebecers also. We were so warmly welcomed by all of the people who organized this trip. It’s amazing. We are known in Quebec for our hospitality. I think that we’ve found our match.
Before handing over the keys to the Executive Mansion to Gov.-elect Glenn Youngkin, Virginia Gov. Ralph Northam is skipping town for one last overseas business trip.
Northam is leading an international trade and marketing mission to Belgium, Spain and Germany this week with a delegation including Chief of Staff Clark Mercer, Secretary of Commerce and Trade Brian Ball, Secretary of Agriculture and Forestry Bettina Ring and representatives from the Virginia Economic Development Partnership and Virginia Department of Agriculture and Consumer Services.
The delegation, which is scheduled to return Friday, will have more than 20 meetings, participate in two business roundtables and discuss Virginia’s advantages with leaders of international companies.
The Virginia Economic Development Partnership launched its Supply Chain Optimization Program, Gov. Ralph Northam announced Wednesday.
The one-year program is designed to help Virginia businesses streamline their supply chain management. Participating businesses could receive a maximum of $10,000 in reimbursements for supply chain-related expenses, including consulting services, connections with experts and training sessions. Companies are eligible to participate if they have at least five full-time employees in Virginia and their operations are located in Virginia.
“Virginia has worked hard to make businesses in the commonwealth stronger, more resilient and more competitive in the global marketplace,” Northam said in a statement. “We’re excited to implement the country’s first official Supply Chain Optimization Program, which will support thousands of businesses and boost international trade. I look forward to seeing this program’s success.”
The program is part of the International Trade Strategic Plan for Virginia that Northam announced in November 2019. The plan set a goal to expand Virginia’s international trade output by nearly 50% before 2035. The General Assembly allocated $1.35 million to implementing the plan in its 2021 session, with $1.1 million going directly to the VEDP.
“A sustainable supply chain is critical to the growth of companies both domestically and abroad,” said VEDP president and CEO Stephen Moret in a statement. “Our Supply Chain Optimization Program will help ensure Virginia businesses have the resources they need to successfully trade with companies around the world.”
Taking on a new job during a pandemic could spell rough waters, particularly if the job relies on global commerce.
But the past eight months largely have been smooth sailing for Stephen Edwards, the new CEO and executive director of the Virginia Port Authority, which oversees the Port of Virginia.
Edwards came onboard in January, relocating from the West Coast where he was CEO of Los Angeles-based TraPac LLC, which operates container terminals and provides stevedore services in California and Florida. He replaced John Reinhart, who retired in January after a seven-year tenure during which he oversaw major revenue growth and expansion at the port, which had been faltering financially before Reinhart took over.
Stephen Edwards became CEO and executive director of the Virginia Port Authority in January.
Edwards inherited a modernized port that continues to see record increases in shipping volume, despite a challenging year for the movement of goods and services. Also, the port is moving forward with numerous projects to increase its business, with the potential to benefit economic development efforts in Hampton Roads and across the state.
During the 2021 fiscal year, which ended June 30, cargo volume for the Port of Virginia, the fifth largest container port in the United States, was up by 16.8% compared with the prior year. Though cargo volume was lower in July and August 2020 due to the pandemic, the port processed 3.2 million TEUs (20-foot equivalent unit containers, a standard unit of cargo capacity) during fiscal 2021, compared with 2.75 million TEUs in the prior year.
Also, loaded import TEUs were up 18.6%, compared with the previous year, while rail containers rose 16.7% in fiscal 2021.
Strong e-commerce buying patterns are one of the main factors driving cargo volume increases.
“One of the outcomes of changing behavior during the pandemic has been an extraordinary boom in buying goods,” Edwards says. “There’s been a significant uptick in shipments in home improvements, whether it’s furniture or refrigerators or bathroom improvements.”
Additionally, cargo shippers “are winning confidence in Virginia as a port,” says Edwards. “We have this strong market going, and we have had people choosing to use us because we have been able to provide good service.”
Digging deep
The port’s growing business sets the stage for one of its major projects — dredging the commercial channels that serve the Norfolk Harbor to 55 feet by 2024 to accommodate super-size cargo vessels, as well as two-way shipping traffic. The $350 million project also will widen the channels to more than 1,400 feet in specific areas.
In July, the port authority board awarded a $39.5 million contract to Great Lakes Dredge & Dock Co. LLC to dig on the east side of the Chesapeake Bay Bridge-Tunnel. The contract builds on work by another company, Weeks Marine, which is dredging the west side.
In May, the port welcomed the CMA CGM Marco Polo, thought to be the biggest container ship ever to call in Virginia, at nearly 1,300 feet in length (more than four football fields long) with a capacity of 16,022 TEUs.
Deeper waters are needed for bigger ships.
Deepening and widening port channels “speaks directly to our customers, the ocean carriers,” says Joe Harris, spokesman for the port. “In two years, you are going to be able to bring in bigger ships and bigger ships with more cargo.”
Once complete, the channels would be able to simultaneously accommodate ultra-large container vessels. Making room for two-way traffic will increase shipping efficiency, says David White, executive director of the Virginia Maritime Association, which promotes international and domestic commerce through Virginia’s ports.
In July, the port’s board agreed to lease 70 acres at Portsmouth Marine Terminal to Dominion Energy, which will use the terminal as a construction staging site for its $7.8 billion Coastal Virginia Offshore Wind farm. Photos courtesy Port of Virginia
Right now, when an ultra-large container ship calls on the port, the channel is restricted to one-way traffic for three to four hours, he says. Ships sailing in the opposite direction must wait until the one-way traffic restriction lifts before continuing.
Once the dredging project is complete, two-way traffic will be allowed at all times.
Also, this fall, the port will break ground on a $44 million expansion project to double the capacity of the railyard at its Norfolk International Terminals. The bulk of the work will focus on construction of 10,700 feet of new track inside the terminal.
The Norfolk rail operation can handle 368,000 containers annually. In the next decade, the port projects that it will need capacity to process an additional 200,000 containers for export. Edwards says the expansion will add about 80% more rail capacity at the Norfolk facility.
As of October 2020, 34% of the port’s total volume moved to market via double-stack rail service.
A $20 million grant from the U.S. Department of Transportation’s 2020 Port Infrastructure Development Discretionary Grants Program will help fund a portion of the Norfolk rail expansion.
InterChange Group Inc., a storage and supply chain logistics company based in Mount Crawford, plans to take advantage of this expanded rail capacity. It’s been using the port since 2005 to transport packaging materials, cabinets, frozen fruit, poultry and more via truck and rail.
InterChange has a new cold storage facility, and the company is making plans to ship more frozen foods via the port’s truck and rail services.
As of October 2020, 34% of the port’s total volume moved to market via double-stack rail service. Photos courtesy Port of Virginia
“We expect more rail movements into the future, and the Port of Virginia is a leader in rail movements already,” says Devon Anders, president of InterChange Group.
Plus, moving items by rail keeps trucks off the road, which reduces traffic congestion, he says.
Trade wind
The port has another key goal for the future — to become the hub for Virginia’s developing offshore wind industry.
In July, the port’s board agreed to lease 70 acres at its Portsmouth Marine Terminal to Dominion Energy, which plans to build its $7.8 billion Coastal Virginia Offshore Wind farm 27 miles off Virginia Beach’s coast, erecting about 180 wind turbines. The Portsmouth terminal would be used as a staging space to deploy equipment for building the massive turbines, each of which will tower 800 feet above the ocean surface. Dominion has already installed two pilot wind turbines, each 600 feet high.
“It really is an enabling step to help the whole [offshore wind] industry develop in Hampton Roads,” Edwards says.
Hampton Roads is a prime area for this kind of industry to grow because it has accessible ports and employs a workforce that is similar to the one already employed by the region’s maritime and Navy facilities, says Matt Smith, director of offshore wind business development for the Hampton Roads Alliance.
“When we talk about the Port of Virginia, one of our natural advantages is our port infrastructure. We feel like it’s the best and well suited to support the offshore wind industry on the East Coast,” he says.
There will be at least 900 jobs needed to support various stages of developing, manufacturing, installing and operating the Coastal Virginia Offshore Wind project, according to an economic analysis conducted by Glen Allen-based Mangum Economics for the alliance. Also, it’s estimated that for each gigawatt of new offshore wind energy capacity, it will require roughly 3,100 workers in Hampton Roads, and the Dominion wind farm plans to generate 2.6 gigawatts.
“It’s not often that you have the chance to be one of the hubs of the industry that has the potential to create a lot of jobs and new development in the region,” Smith says. “We’re excited about the industry for both of those benefits.”
The Portsmouth Marine Terminal is well positioned to support the Dominion project due to its proximity to the ocean, as well as the fact that there are no bridges that ships must pass under, making it easier to ferry large wind turbine components, White says. “We have tremendous advantages in terms of infrastructure,” he adds.
But all of Virginia, not just Hampton Roads, stands to reap economic benefits from the development of the offshore wind industry. The economic impact of the project has the potential to trickle throughout the state, White says. For example, the Dominion wind farm turbines will need companies to install service elevators for maintenance, White says, and those may come from outside the region.
The Port of Virginia offers numerous benefits for Virginia’s economic development, whether in offshore wind development or other work. But one needed ingredient to help the port continue to grow and boost Virginia’s economy is drawing more large manufacturing companies to the commonwealth, says Stephen Moret, president and CEO of the Virginia Economic Development Partnership. He also serves on the port’s board.
“If you imagine, a huge portion of the business of the Port of Virginia is not starting or ending in Virginia,” Moret says. “We are missing out on opportunities that are not in the port’s control. Attracting more of these large projects to locate in Virginia, they would be great customers for the port and maximize the return on investment.”ν
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