The port had budgeted for a USD288,000 operating loss, but the cost of the closures, ensuing snow-removal and resumption of operations costs and lost productivity increased the loss. The loss in February 2013 was USD1.3 million, comparatively.
“It was a difficult month, the residuals of which we are still addressing,” said John F Reinhart, CEO and executive director of the Virginia Port Authority. “The storms and ensuing closures had a negative effect on every phase of our operation, especially service to motor carriers.
“The volume was lower than forecast and prior year because of vessel delays where 7,000 moves from February did not occur until the first days of March. Further, we had to halt eastbound export rail for work to clear up rail cargo on terminal. Those delays resulted in volume and revenue reductions in February, much of which we will be captured in March.”
February’s snow storms resulted in:
• Four lost workdays
• Slowed productivity following resumption of operations due to difficult working conditions
• A temporary halt to eastbound export rail traffic
• Poor service at the gates
• Significant snow removal and clean-up costs
The fiscal-year-to-date result is an operating profit of USD4.6 million, versus a prior year operating loss of USD16.6 million, or an improvement of USD21.2 million year-over-year.
“February is behind us and March continues to be extremely challenging, but we will continue to invest and target a positive operating result for the fiscal year,” Reinhart said. “We have not been able to deliver consistency at the gates at Virginia International Gateway, but we are taking multiple steps and putting forth our best effort to restore service there. We continue to be committed to delivering reliable service to our customers, stakeholders and partners.”
In February, The Port of Virginia reported that it handled 178,105 TEU, a decrease of 0.8%, or 1,419 TEU, when compared with February 2014.