The Virginia Port Authority (VPA) has posted an operating loss of US$3.7 million for the first quarter of its fiscal 2009, sending a clear signal that the world's deepening financial crisis is taking a toll on cargo movements, the Daily Press reported.
Operating revenues at the authority's four cargo terminals fell to $56.7 million for the three months ending September 30, a decline of 13 percent, or about $8 million, compared with the same period a year earlier.
The lacklustre results of the first quarter, which is traditionally strong as US companies ramp up imports for the holiday season, paint a dour picture for the remainder of VPA's fiscal 2009.
As the economy entered a downward spiral this fall and cargo volumes began to fall off, the agency began slashing budgets and made plans to hold off on big projects.
The authority and its operating arm, Virginia International Terminals, cut 2009 budgets a combined $11.4 million so far.
Service cutbacks will have a ripple effect throughout the regional and state economy. Fewer containers mean fewer workers handling them, whether they are longshoremen, truck drivers, warehouse and distribution workers, or retail employees.
Because the economic turmoil isn't limited to the US, both imports and exports have been on the decline. Weak domestic spending is cutting demand for imports, and a parallel slowdown abroad is driving down US exports.
Between July and October, container volume moving through the port fell 2.6 percent, and ship calls declined 13.8 percent, compared with the same period in 2007, as international shipping lines cut back service and combined routes to save money.
The decline in volume at the state-owned marine terminals in Norfolk, Newport News and Portsmouth has forced the hand of authority officials to delay the largest expansion project in the agency's history.
The first phase of a planned $2.4 billion expansion of Craney Island as a marine terminal most likely will not open in 2017 as planned.
Instead, the authority is now targeting an opening date between 2018 and 2020.
The expansion will be shelved until the economy shows signs of improving, but the project will remain a crucial part of the port's plans.
Operating revenues at the authority's four cargo terminals fell to $56.7 million for the three months ending September 30, a decline of 13 percent, or about $8 million, compared with the same period a year earlier.
The lacklustre results of the first quarter, which is traditionally strong as US companies ramp up imports for the holiday season, paint a dour picture for the remainder of VPA's fiscal 2009.
As the economy entered a downward spiral this fall and cargo volumes began to fall off, the agency began slashing budgets and made plans to hold off on big projects.
The authority and its operating arm, Virginia International Terminals, cut 2009 budgets a combined $11.4 million so far.
Service cutbacks will have a ripple effect throughout the regional and state economy. Fewer containers mean fewer workers handling them, whether they are longshoremen, truck drivers, warehouse and distribution workers, or retail employees.
Because the economic turmoil isn't limited to the US, both imports and exports have been on the decline. Weak domestic spending is cutting demand for imports, and a parallel slowdown abroad is driving down US exports.
Between July and October, container volume moving through the port fell 2.6 percent, and ship calls declined 13.8 percent, compared with the same period in 2007, as international shipping lines cut back service and combined routes to save money.
The decline in volume at the state-owned marine terminals in Norfolk, Newport News and Portsmouth has forced the hand of authority officials to delay the largest expansion project in the agency's history.
The first phase of a planned $2.4 billion expansion of Craney Island as a marine terminal most likely will not open in 2017 as planned.
Instead, the authority is now targeting an opening date between 2018 and 2020.
The expansion will be shelved until the economy shows signs of improving, but the project will remain a crucial part of the port's plans.