By Dirk Moore, contributing writer
Gov. Abigail Spanberger and Southwest Virginia legislators remain committed to developing an inland port in Washington County, Va., while also grappling with concerns about profitability, infrastructure and the consequences of a possible railroad merger.
Meanwhile, the Virginia Legislature has approved $20 million to support the intermodal hub that would connect maritime shipping, rail and trucking to move cargo inland.
The agreement was reached after the Virginia Senate and House of Delegates proposed widely different levels of funding. The House budget originally provided $2 million toward the project, while the Senate proposed spending $35 million.
Before agreeing to the current $207 billion budget for the Commonwealth, Gov. Spanberger signaled her support of the inland port.
Virginia Del. Israel O’Quinn, who represents the district where the proposed port would be located, was encouraged by the support the governor expressed for the project.
“This is one thing that this governor and the last administration agreed on,” he told the Business Journal.
Discussions about the proposal have focused increasingly on developing the inland port in a way that makes it economically viable.
A study conducted by the Port of Virginia suggests that it may take time before an inland port in Southwest Virginia will have the infrastructure and industry that could provide sufficient cargo.
According to the report, “Compared to peer inland ports that handle upwards of 200,000 containers annually, the SWVA Inland Port’s volume potential is significantly lower.”
Joe Harris, senior director of communications and spokesman for The Port of Virginia, said lawmakers will want to carefully consider the project’s timing to ensure enough cargo capacity is in place to sustain the operation.
“The enthusiasm for such a project is important, but the state has to be a good steward of that money,” Harris told the Business Journal.
Both Harris and O’Quinn pointed to the challenges faced by the Heartland Intermodal Gateway in Prichard, W.Va., a $30 million facility that opened in 2015 and later closed due to a lack of freight volume.
“As much as we want to push this thing through, the West Virginia facility is a cautionary tale,” O’Quinn explained.
Perhaps the greatest, immediate concern for the development of the inland port is a pending merger proposal between Norfolk Southern and Union Pacific railways. The merger, if approved by the federal government, could mean the end of several existing rail lines, including the Norfolk Southern route through Southwest Virginia.
“The Legislature wants to know what those routes will look like and if that will include coming through Washington County,” O’Quinn said.
In the long run, O’Quinn believes the inland port can operate successfully. And, provided that a railway continues to function in Southwest Virginia, he believes a timeline can be developed that will allow for the infrastructure and economic development needed to create demand for the inland port.
“There’s an incredible amount of volume at the Port of Virginia,” he added. “From a competition standpoint, they have to bring cargo in. It’s just a matter of where and what route. So, the short answer is yes, it can work, because there isn’t another inland port near us.”
