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Feb. 17, 2014

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www.joc.com THE JOURNAL OF COMMERCE 13 COVER STORY #1 in commercial real estate worldwide 150 West Main Street Suite 1100 Norfolk, VA 23510 757.490.3300 www.cbre.com/norfolk For more information on this listing, please contact us at: Presented By H. Ashton Williamson, MAI, R. Worth Remick, SIOR and Lang Williams, SIOR of CBRE|Hampton Roads Chesapeake Distribution Center Unique and Rare Opportunity at the Port of Virginia A State-of-the-Art Crossdock Facility 3516 S Military Highway :: Chesapeake, VA 23323 • 130,860 SF building on 33.7 acres • 183 dock doors and 2 drive-in doors • 770 trailer parking spaces and 200 car spaces • Unique offering at the Port of Virginia, located within the I-64 beltway offering the lowest drayage rates • 5.2 miles to Portsmouth Marine Terminal, 6.5 miles to APM, 8.1 miles to Norfolk International Terminal and 13.5 miles to Newport News Marine Terminal (straight line distances). S I T E DON KRUSEL, PRESIDENT and CEO of the Prince Rupert Port Authority, compares the rapid ascent of the Canadian port's con- tainer traffic since 2007 and the leveling of volumes last year to a plane on takeoff. The aircraft climbs rapidly, levels off at a certain altitude while the pilot awaits further instructions, and then resumes its upward climb. With that scenario in mind, Krusel said it's only a matter of time before Prince Rupert returns to a pattern of strong growth. Since the Fairview terminal moved its first container in late 2007, Canada's Pacific Coast Port of Prince Rupert has experi- enced growth rates of 20 to 45 percent each year. In 2013, however, total container volume, including empties, dropped 5 per- cent compared to 2012. Loaded containers increased 2.4 percent. "The numbers have nothing to do with the port, but rather to decisions by the lines that call at Prince Rupert," Krusel said. China Ocean Shipping Co. and its part- ners in the CKYH Alliance operate four weekly services from Asia to Prince Rupert. Cosco vessels operate in three of those strings and Hanjin Shipping operates one weekly string of ships. The past year was challenging for all carriers, and Cosco and Hanjin specifically FROM PRINCE TO PAUPER, AND BACK? The rapid cargo growth at Prince Rupert has leveled off. What the port needs to do to resume its ascent. By Bill Mongelluzzo fall to 6.7 percent by the end of this year after hovering around 7.2 percent for most of 2013. "Finally, there is the risk of spreading market volatility flowing from the U.S. Fed- eral Reserve's 'tapering' of bond-buying this year, triggering changes in global foreign investment flows that have already affected some developing-country interest rates and currency exchange rates," Bingham said. "There also remains risks of disruption in Asian financial markets with asset bubbles such as urban real estate in China that could be affected, ultimately also influencing trade demand reflecting macroeconomic impacts, regardless of how competitive Canadian commodity exports are priced." These are factors Port Metro Vancouver can't control. But the port can influence how freight flows through its terminals and into region and hinterland. With anxiety rising over ILWU labor condition, a test of Vancou- ver's efforts is likely on the way. JOC Contact Mark Szakonyi at mszakonyi@joc.com and follow him at twitter.com/szakonyi_joc.

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