by Eric Wallace
Calling the Port of Virginia (POV) vital to the state and national economy is an understatement: It handles around 14.3 million tons of containerized imports annually, supports more than 565,000 jobs, and posts yearly net output sales of more than $124 billion.
About one in every “nine or ten jobs [in Virginia] have activity attached to what we do,” wrote port CEO, Stephen Edwards, in 2024’s fiscal year-end statement. Looking ahead, the nation’s third-largest port remains dedicated to “pushing the boundaries of our industry and seizing opportunities to meet the ever-evolving demands of the supply chain.”
Here, we take a look at four of the most important developments to watch in 2025 and beyond.
Clean Energy & Sustainability
POV became the first major East Coast port powered by 100% clean electricity in early 2024. The landmark goal slashed carbon emissions by 70% and is part of a larger sustainability commitment to achieve carbon-neutrality by 2040.
“The type of equipment we are using, the way we power it, and our overall approach to sustainability demonstrates to our customers and those port users seeking clean supply chains that [we] can help them meet their goals,” said port CEO, Stephen Edwards, in a statement.
Sustainability efforts will get another boost from a new $380 million federal grant. The Inflation Reduction Act funds will help POV transition to state-of-the-art electric equipment and build out supportive infrastructure. Updates will include new forklifts, shuttle carriers for containers, electric locomotives, specialized cranes for all rail operations, and on-terminal shuttle buses and trucks to move people to and from work areas. Energy storage and battery charging capacity will also see dramatic expansion.
Edwards called the investment “transformative” and said: “It will make our operations more efficient and sustainable, enhance our capabilities, and allow us to continue making strides toward becoming the East Coast’s first net-zero port.”
The upgrades will also improve air-quality in surrounding communities by reducing mobile source pollution.
Improved Central Railyard
A two-year, $83 million project to expand and modernize the central railyard at Norfolk International Terminals was completed in August. It’s brought the addition of two new rail track bundles, a reconfigured container stack yard, and three semi-automated, all-electric, cantilever, rail-mounted gantry cranes.
Combined, the improvements boost annual on-dock rail capacity by 455,000 twenty-foot equivalent units (TEUs) and bring the port’s total rail capacity to 2 million TEUs.
“Cargo volumes coming to the East Coast are steadily increasing and [this expansion] enhances the port’s reach to important Midwestern populations and manufacturing centers by train,” said Edwards in a statement. It enables freight “to go straight through the port onto the railroad” and get to where it’s going sooner.
The upgrade is part of the ongoing $1.4 billion Gateway Investment Program and prepares the port for increases in cargo that will come from soon-to-be completed dredging projects.
The East Coast’s Widest and Deepest Port
POV is on track to become the East Coast’s deepest and widest port in early 2025. Once finished, the $450 million dredging project will make Norfolk Harbor the only eastern waterway channel with congressional authorization for 55-foot depth from end to end and side to side.
Widening measures completed in Thimble Shoal Channel West Reach this past March are already allowing ultra-large container vessels (ULCVs), which carry around 20,000 TEUs of cargo each, to pass one other simultaneously.
The next-generation ships reduce ports to one-way traffic systems and have challenged the economics of marine servicing everywhere, Edwards told CNBC in a recent interview. “We make our money turning ships on the berth, not as they transit in and out. This project will let us turn berths quicker and gain capacity on and off the berth.”
The widened channel has already slashed ULCV stay times by about 15% and significantly cut idling emissions. The effects will be amplified as dedicated port berths expand from two to five, taller ULCV-focused electric cranes are added, and dredging is completed.
Movement on Offshore Wind
A more than $220 million investment has transformed POV’s Portsmouth Marine Terminal into what Edwards calls “the nation’s most capable wind hub.” The improvements have come in support of Dominion’s $9.8 billion Coastal Virginia Offshore Wind facility (CVOW) which, after overcoming a number of recent environmental lawsuits, remains on track for completion in 2026. The 176-turbine installation will generate about 2.6 gigawatts of electricity—enough to power 660,000 homes.
While republican presidential candidate, Donald Trump, continues to decry clean energy, Edwards says POV will remain committed to CVOW regardless of election results. “We’re going forward with building … this project is firm,” he told CNBC in an interview.
The stance is important for the port and region, as Dominion recently secured another two offshore leases for wind facilities. The first is adjacent to CVOW and large enough to support four gigawatts of production. The second, called CVOW South, lays off the coast of the Outer Banks and could produce 800 megawatts. All three would look to Portsmouth Marine Terminal as a support hub.
