A UNITED STATES DEPARTMENT OF COMMERCE PUBLICATION **" T0 'c ''-Wis o« ' REPORT ON RAIL AND MARINE INTERFACE AT THE PORT OF HAMPTON ROADS U.S. DEPARTMENT OF COMMERCE Maritime Administration REPORT ON RAIL AND MARINE INTERFACE AT THE PORT OF HAMPTON ROADS U.S. DEPARTMENT OF COMMERCE Frederick B. Dent, Secretary MARITIME ADMINISTRATION Robert J. Blackwell, Assistant Secretary >» for Maritime Affairs 8* u | Prepared by Ports and Intermodal Systems Office Maritime Administration Eastern Region For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C., 20402. Price $0.55 FOREWORD The Maritime Administration, through the programs of The Office of Ports and Intermodal Systems, is foster- ing the continued growth of intermodalism and the American Merchant Marine. It is recognized that the interface of marine terminal operations with those of the rail carriers is a key to improving the effectiveness of the intermodal system. Reducing the cost, time, and distance factors involved in the interface between U S<> Flag Carriers and inland modes can contribute to the efficiency and economy of intermodal transport, and thereby further enhance the competitiveness of the American Merchant Marine. In March of 1973, the Maritime Administration, Eastern Region, Ports and Intermodal Systems Office, prepared a report concerning the rail/marine interchange of marine containers at the Port of New York. It was thought that this problem was serious enough to warrant extensive and timely analysis, complimented by suggested recommenda- tions for improvement. Industry reaction received by Washington and the Eastern Region Office has been most favorable, and in that light, similar studies of other ports ha ve been undertaken. It is hoped that these reports will shed helpful light on the nature, procedures, and problems of container interchange, and will contribute towards the eventual refinement of this operational interface. The Office of Ports and Intermodal Systems and the Eastern Region Office welcome inquiries regarding these reports and other ongoing efforts of the Maritime Administra- tion in the field of commercial development and the pro- motion of the American Merchant Marine. TABLE OF CONTENTS SECTION PAGE I INTRODUCTION 1 II MARINE TERMINAL SURVEY 3 PORTSMOUTH MARINE TERMINAL 3 TERMINAL CHART 4 NORFOLK INTERNATIONAL TERMINAL 6 TERMINAL CHART 7 LAMBERTS POINT DOCKS 8 TERMINAL CHART 9 NEWPORT NEWS TERMINAL 11 TERMINAL CHART 12 III RAIL MARINE INTERCHANGE ANALYSIS 14 DRAYAGE 16 DISTANCE/TIME TABLES 17 HARBOR CHART 19 IV SUMMARY 21 V RECOMMENDATIONS 22 SECTION I INTRODUCTION This report is a survey, analysis, and evaluation of the rail terminal/marine terminal interchange situation in the port of Hampton Roads, Virginia. The overall objective is to identify problem areas, and offer practical recommendations for solutions leading to increased inter- change efficiency. The Port of Hampton Roads includes terminals in the cities of Norfolk, Portsmouth, Newport News, and Chesapeake, Within the last three years a unification of the following individual smaller port authorities has taken place under the name of the Virginia Port Authority: 1. Peninsula Ports Authority of Virginia 2. Virginia State Ports Authority 3. Portsmouth Port and Industrial Commission 4. Norfolk Port and Industrial Authority The unification of effort is expected to enhance over- all port growth, development, and efficiency. Definite signs of positive change already are quite evident. The rail network serving Hampton Roads is quite ex- tensive, with the following railroads having trackage into the area and offering service: 1. Chesapeake and Ohio Railway 2. Norfolk and Western Railway 3. Norfolk Southern Railway 4. Norfolk, Franklin, and Danville Railroad 5. Seaboard Coast Line 6. Penn Central Railroad 7. Southern Railway The Hampton Roads terminals of these railroads are spread throughout the port area, and are linked by the Norfolk and Portsmouth Belt Line Railroad. This provides direct rail service to any marine terminal by each rail system. The Belt Line is an outgrowth of the railroads serving the port. Approximately 84% is owned jointly by the companies listed, with the exception of the Norfolk, Franklin, and Danville Railroad. There are four marine terminals which handle virtually 100% of all port container traffic. Two of these terminals, 1. Portsmouth Marine Terminal 2. Norfolk International Terminal are designated marine container terminals, while the other two, 3. Lambert's Point Docks 4. Newport News Terminal are basically general cargo or bulk terminals with sizeable container handling capability. It is important to note that these four terminals constitute most of the terminal cargo handling capability for the entire port, as far as liner service carrier operations are concerned. Several of the many U.S. and foreign flag ocean con- tainer carriers serving Hampton Roads consistently berth at one specific terminal; others vary berthing among the four terminals as cargo requirements dictate. Most carriers schedule vessel calls on each voyage although others call only occasionally. SECTION II MARINE TERMINAL SURVEY Section II consists of a brief survey of each of the four marine container handling terminals, covering the following aspects: 1. Geographical location 2. Owner, operator, tenant information 3. Highway access 4. Railroad access 5. Terminal facility description 6. Freight volume handled A large scale chart is included in each terminal description to permit a closer examination of its layout and surrounding area. PORTSMOUTH MARINE TERMINAL (PMT) The Portsmouth Marine Terminal (PMT) is located in Portsmouth on the West Bank of the Elizabeth River about five miles from the Hampton Roads roadstead. It is owned by the Virginia Port Authority and operated by Portsmouth Marine Terminals, Inc. as a public terminal. It is de- signated a container terminal but also handles conven- tional cargo vessels with breakbulk cargo. The following companies are among the major tenants: 1 . Sea-Land Service 2. American President Lines PORTSMOUTH MARINE TERMINAL (PMT) - 4 - 3. Atlantic Container Lines 4. Fresco Line 5. Columbus Line 6. Japanese Consortium (5 Lines) 7. Vo Iks wagon 8. Datsun The location, as far as highway access is concerned, is excellent. The terminal i adjacent to expressway Route 58, which links with Interstate 264. Both the Southern Railway and Seaboard Coast Line have direct trackage onto the terminal, as does the Belt Line which connects with other railroads serving the area. The loading and discharging of container on flat car (COFC) and trailer on flat car (TOFC) movements is accom- plished by one rail mounted Transtainer crane and two TOFC ramps . The 500 acre terminal, with a roll-on roll-off plat- form, has berthing space for two large container ships or several conventional vessels along a 1700 foot marginal pier in 35 feet of water. Container berth expansion is imminent with the planned construction of additional facil- ities for Sea-Land Service utilization. The container berths are served by two 30 ton Paceco Portainer cranes and a 110 ton Clyde Gantry crane, which is also used for conventional "heavy lift" cargo. The handling of containers within the terminal is accomplished by three 35 ton straddle carriers, as well as a number of yard commandos used for shuttling purposes. No formal truck gate exists; however, there is one truck scale in operation near the equipment inspection area. Arriving truckers clear with the receiving or de- livery office as necessary and are routed accordingly. PMT has been designated a "ramp point" by the Norfolk and Western Railway, Norfolk Southern Railway, Southern Railway, Seaboard Coast Line, and the C&0 Railway. Con- sequently, no drayage requirement exists and on terminal switching is free except for Southern Freight Association carriers, who assess an approximate twenty dollar switching charge per container as designated in appropriate freight tariffs. The annual tonnage handled at PMT, both container and breakbulk, is in the vicinity of 500,000 long tons. NORFOLK INTERNATIONAL TERMINAL (NIT) The Norfolk International Terminal (NIT) is located in Norfolk, at the mouth of the Elizabeth River. It is owned by the Virginia Port Authority and is operated by Maritime Terminals, Inc., as a public container terminal primarily, but also handling breakbulk freight. Its major users include: 1. United States Lines 2. American Export Lines 3. Moor e-McCor mack Lines 4. Farrell Lines 5. Hapag-Lloyd 6. Dart Container Line 7. Atlantic Line 8. Associated Container Transport 9. Polish Ocean Lines 10. Finnlines 11. Hellenic Lines 12. Atlanttrafik N.I. T is surrounded by urban areas, and highway access is somewhat restricted. However , planned highway construction should relieve this situation. The Norfolk and Western Railway has direct trackage onto the terminal, which is also served by Belt Line as a link for other railroad services. Both T0FC and COFC move- ments are amply handled by the eight 40 ton Transtainers (four rail mounted-four wheeled) in service. Three ramps are also available for TOFC service, each with a capacity of ten railcars. Catering to container ships as well as conventional cargo vessels, the terminal has the following berthing areas NORFOLK INTERNATIONAL TERMINAL (NlTJ " ■7- 1. Two covered concrete general cargo piers, each 1320 feet long and 250 feet wide, with forty foot aprons. 2. A 1620 foot container berth in 35 feet of water capable of working two large container ships at a time. A third container berth is currently under construction. One 30 ton and two 50 ton gantry cranes presently serve the two container berths with a twin-lift container crane awaiting erection. Yard commandos are supplied by the stevedore, as necessary, for shuttle purposes within the terminal. Yard container stowage is basically a two-high stacked system accomplished through the use of Transtainers. The exception to this system is United States Lines, which has elected to operate an "all mounted" system. Presently, there is no container gate complex, although the construction of a ten gate arrangement will be completed in 1973. Part of this planned construction is a second truck scale to supplement the one presently in use. Truckers now enter the terminal, report to the receiving or delivery office, as appropriate, are issued a gate pass, and are then routed for weighing and inspection. Approximately 750,000 tons of cargo move through N.I.T. each year, 25% of which enters or departs by rail. The terminal has been declared a "ramp point" by the Norfolk and Western Railway, Norfolk Southern Railway, Southern Railway, Seaboard Coast Line, and the C&0 Railway. Consequently, container movements via these carriers re- quire no drayage and on terminal switching is free except for the Southern Freight Association carriers. LAMBERT'S POINT DOCKS (LPD) Lambert's Point Docks is located in Norfolk on the Elizabeth River, about four miles from the Hampton Roads roadstead. Owned by the Virginia Port Authority, leased 8 - {£ 24. Craney Island Fuel Facility, U. S Navy 25. Associated Naval Architects, Inc 26. Piei 6, Norfolk & Western Railway Company 27. Pier 5, Norfolk & Western Railway Company 28. Pier 3, Lay berth, Noilolk & Western Railway Company 29 Pier N. Lamberts Point Docks, Inc. 30 Norfolk Oil Transit, Inc 31. Pier L. Lamberts Point Docks, Inc. 32. Pier S, Lamberts Point Docks, Inc. 33 Pier P, Lamberts Point Docks, Inc 34. Portsmouth Marine Terminal, Inc. 35. Portsmouth Terminals, Inc. 36. Commonwealth Metals Ltd. 37 U S Army Engineer District. Norfolk 38. Moon Engineering Company, Inc. 39. Moon Engineering Company, Inc LAMBERTS POINT DOCKS (LPD) - 9 - by the Norfolk and Western Railway, and operated as a public terminal by Lambert's Point Docks, Inc., a sub- sidiary of the N&W Railway, this facility is primarily a breakbulk marine terminal also handling a sizeable con- tainer volume. Among the major steamship companies using this facility are: 1. Prudential Grace Lines 2. American Export Lines 3. Moore-McCormack Lines 4. Lloyd Brasileiro 5. Concordia Line 6. Costa Line 7. Spanish Line 8. Atlantic Line 9. Waterman Line 10. Japan Line 11. NYK Line Highway access to LPD is good. It is located almost adjacent to the Portsmouth Tunnel which ultimately connects with Interstate 264. The Norfolk and Western Railroad has direct trackage onto the terminal. The other railroads serving the port switch in cars, at tariff rates, by use of the Belt Line. A rubber wheel Transtainer is maintained in the railyard for the handling of both TOFC and COFC container shipments. The terminal complex consists of three general cargo piers (P, L, and N), and two coal piers (5 and 6). Shore cranes are available with pier "P" having two 25 ton rail mounted gantry cranes capable of serving all five berths on three sides of the pier. In addition, pier "N" has two 15 ton gantry cranes in service. The terminal operator provides heavy duty fork lift trucks for the mounting, grounding, and general movement of containers on the ter- minal, while the individual contract stevedore supplies yard commandos for on terminal shuttling. Presently, there are no special gates or gate pro- cedures in effect for container traffic. Units enter the 10 terminal, are checked in with the receiving or delivery clerk, as appropriate, are issued a gate pass and are then routed for equipment inspection. Though no truck scale is available on LPD, arrangements are in existence with a local trucking terminal for utilization of its scale, should the necessity arise. Lamberts Point Docks handles approximately 700,000 long tons of cargo per year, approximately 5% of which is containerized. This equates to a volume of between 325 and 350 units per month. LPD is a "ramp point" for the Norfolk and Western Railway, Norfolk Southern Railway, Southern Railway, and the Seaboard Coast Line. Container movements via these carriers require no drayage and except for Southern Freight Association rail movements, terminal switching is free. NEWPORT NEWS TERMINAL (NNT) Newport News Terminal is located on the northern side of the harbor, at the mouth of the James River, in Newport News. Primarily a general cargo, coal and ore facility, a notable container handling capability has developed, recently climaxed by the opening of a straight container berth and roll on/roll off ramp. The terminal general cargo facilities are owned by the Virginia Port Authority, while those of the coal and ore operations are owned by the Chesapeake and Ohio Railway. The entire terminal however, is operated by the C&O Railway. The many tenants of this public terminal include: 1. American President Lines 2. Moore-McCormack Lines 3. Finnlines 4. Chilean Lines 5. Concordia Lines 6. Norwegian - American Lines 11 NEWPORT NEWS TERMINAL (NNT) -12- 7. South African Marine Lines 8. Maritime Fruit Carriers 9. Moller - Maersk Line 10. Blue Sea Line 11. Barber Line Highway access is satisfactory, the terminal being relatively near Interstate 64; however, all routes unfor- tunately pass through downtown Newport News. The Chesapeake and Ohio Railway has direct trackage onto the terminal. Other railroads serving the area regularly switch railcars in and out over this trackage for appropriate charges. A 50 ton Le Tourneau mobile crane, two 30 ton straddle carriers capable of handling both 20 foot and 40 foot containers, and three ramp locations, are utilized to facilitate the handling of C0FC and TOFC movements. The terminal complex consists of seven piers, four of which are used for general cargo and container operations. These include the new container berth, Pier "C", which is 750 feet long with a 180 foot apron and is serviced by a Portainer gantry crane. Until this facility was opened, the container operations were carried on at a two berth open pier equipped with 2 moveable 30 ton revolving gantry cranes. The remaining three piers are dedicated to coal and ore operations. On terminal handling of containers is accomplished by a rubber wheel transtainer, as well as the two straddle carriers mentioned earlier. Five yard commandos complete the inventory of container handling equipment. Container shipments are received and delivered through a normal gate arrangement. After clearing with the receving or delivery office, gate passes are issued, and truckers enter the terminal for weighing and inspection. A temporary scale is presently in use for weighing purposes. Newport News Terminal presently moves 500 to 700 containers across its facilities each month. The terminal is designated a "ramp point" by the Chesapeake and Ohio Railway only. 13 SECTION III RAIL MARINE INTERCHANGE ANALYSIS Section III contains a discussion and analysis of the rail/marine interchange in Hampton Roads as it now exists. Included are the following considerations: 1. Nature of interchange 2. Physical accomplishment 3. Cost, distance, time factors involved with necessary drayage. 4. Evaluation of interchange problems 5. Recommendations for correction Other operational aspects of interchange consistent with the purpose of this report will also be covered as appropriate. A chart of the entire Hampton Roads port area accom- panies the discussion of drayage (cost-distance-time) and indicates the relative locations of the terminals under consideration. Three major factors affect this rail/marine inter- change at Hampton Roads . 1. Container Movement Volume - The total volume of marine containers moving through Hampton Roads is substan- tially less than that which the port is capable of handling. Facility of flow is thus greater. The situation is enhanced further by the relative sophistication of the container handling facilities at each of the four marine terminals. 2. Rail Terminal/Marine Terminal Proximity - Though the four marine container handling terminals are widely 14 spread throughout the port, rail trackage, available to most railroads serving the area, is equally widespread and extends directly onto each marine terminal. Thus, rail terminals capable of TOFC/COFC operations are ex- tended directly onto each marine terminal. 3. General Nature of Container Interchange - On terminal interface is the norm for all of Hampton Roads, and effectively eliminates the need for drayage and the accompanying cost. The physical make-up of the port and "ramp point" aspect are the major contributory factors for this norm. "Ramp Point" is a designation given to a rail terminal or facility, and indicates its ability to handle marine containers on a TOFC, and in many cases COFC basis. In Hampton Roads, the designation has also been given to all four marine terminals by one or more of the rail- roads serving the area. Besides indicating a container handling capability, "Ramp Point" in the case of marine terminal implies that direct delivery to the marine ter- minal is included in the shipper's cost for the rail- road line haul. Thus, any cost of rail switching within the port area is absorbed by the railroad. Occasionally, optional drayage of containers may prove more rapid and economical than shunting, and thus, the railroads in certain instances prefer this method of transfer. This moderate volume of truck transfers creates no particular additional congestion problem at the marine terminals. The one exception to the absorbed cost "ramp point" concept is a less than twenty dollar switching charge made on all container loads with origins or destination in Southern Freight Association territory. This is assessed by all the railroads who are members of the Association. Trains arriving at Hampton Roads containing marine containers for export, normally are received at inland rail terminals remote from marine terminals. Railcars are then classified and re-consolidated for shunting to final marine terminal destinations. Depending on the marine terminal involved, the railroad may carry out the final movement, use the Belt Line, or interline with another railroad serving the terminal directly,. 15 Upon arrival, marine terminal operators off-load container units by straddle carrier, Transtainer, or ramp as appropriate. At this point, the terminal operator becomes an agent for the railroads, as well as also acting on behalf of the steamship operator to some degree. The following steps ensue: 1. An inspection interchange receipt is completed on the spot. 2. Off-loaded export loads are stacked on the terminal or mounted on chassis and parked as appropriate to the nature of the terminal. 3. Dock receipts, which have been pre-lodged at the terminal receiving office by the foreign freight forwarders, can then be signed and distributed. DRAYAGE Use of motor transportation for the Rail/Marine Interchange within the port is limited, and when utilized* it is attributable to the following: 1. The occasional use of drayage by railroads to fulfill ramp point commitments as an alternative to direct rail delivery. 2. Delivery of containers to or from marine terminals which are not ramp points for certain railroads. 3. Truck transfer for expediency, such as the late arrival of an export marine container at a rail terminal and the vessels sailing schedule will not permit the normal time consumed for rail car classification, recon- solidation and shifting to the pier. The following two tables indicate approximate dis- tances and average truck transit times among the four 16 N.I.T. - NORFOLK INTERNATIONAL TERMINAL L.P.D. - LAMBERTS POINT DOCKS N.N.T. - NEWPORT NEWS TERMINAL P.M. To - PORTSMOUTH MARINE TERMINAL NIT LPD NNT DISTANCES (MILES) PMT NIT LPD NIT LPD NNT TIME (MINUTES) PMT NIT LPD MARINE TERMINAL DISTANCES AND TRANSIT TIMES -17- marine terminals covered in this study. Occasional trans- fers exist between marine terminals and other remote rail terminals, but the volume is minimal and can be ignored. These few transfers fall into basically the same distance, time, and cost patterns as those dray movements which are illustrated in the tables. To pinpoint the cost for each of several drayage patterns is difficult. The problem is due to the many factors which contribute towards the determination of drayage rates. After discussion with the Virginia Port Authority, regional railroad representatives, and various local draymen, it was determined that the average cost falls into a range of $15.00 to $25.00 per container. The range exists because of the variation in existent dray conditions and cost factors such as age and depreciation of equipment, overhead, type of operator, basis of rate quotation, quality of service, detention charges, and the nature of the drayage contract and the volume involved. Indications are that distance and time factors are of relatively minor importance. Those who require and use transfer draymen normally maintain contracts with several carriers, and rates generally are based to a great extent on estimated volume. Traffic patterns and marine terminal time allowances also become part of the rate formulation process. Because of the drayage situation outlined above, coupled with the relatively low ratio of container volume movement to container volume capability at four terminals, only minor terminal congestion occurs. The freedom from congestion at the marine terminals is reflected in the port terminal tariffs published by the Marine Terminal Association, which make no mention of truck "free time" or "truck detention". This is not to say that truck delays never occur for one reason or another, but the problem appears to be minimal. Trucking and drayage tariffs usually include free time allowed and detention charges, which are to be borne by the shipper. Logical recourse would be for the shipper 18 Po/lrsmoo-fMi w hJoRFoLK UftmPYorf l^oflPS 19 to go back to the terminal operator for any excessive detention charges, but the general practice in Hampton Roads has been for terminal operators not to honor such claims, accepting no responsibility in most cases 20 SECTION IV SUMMARY In conducting this survey it became readily apparent through extensive contact with truckers, railroads, and steamship companies, that rail/marine interchange terminal delays or in transit truck delays are negligible. This is due mainly to the predominance of direct marine terminal interface over drayage as the preferred means of transfer. Another important contributory factor of this freedom from interchange congestion and delay is that existing port terminal container handling facilities have a capability well in excess of present container traffic. Normal peaks and valleys do occur, but the present level of marine ter- minal congestion is certainly operationally acceptable. Hampton Roads has developed into a major world con- tainer port in a commendable manner. Its development of efficient facilities to accomplish this transition, while noteworthy, would not be nearly as impressive, if the required rail marine interchange of containers was a cumbersome costly procedure. While it must be realized that the volume of con- tainers moving through the port is less than several other major ports, this in no way detracts from the effi- cient transfer and interchange operational procedures which have developed. It is hoped that this high rate of proficiency grows in proportion to total port commerce. 21 SECTION V RECOMMENDATIONS Though the rail/marine interface in Hampton Roads poses no serious problem affecting port commerce, it is understood that any such operational procedure, espe- cially the marine terminal portion, can be made more efficient. The following is therefore submitted for considera- tion and possible implementation: 1. Documentation Standarization and Simplification The volume and nature of the transportation paper- work maze is well known and need not be covered in detail. It will suffice to say that any document standarization leading to more rapid recognition and processing at marine terminal gates, as well as in receiving/delivery offices, would enhance efficient marine container inter- change. Documentation under consideration should include delivery orders, weight certificates, and interchange inspection forms among others. 2. Receiving and Delivery Procedural Improvement No matter what level of container handling efficiency is maintained at each of the marine terminals, uniform document processing practices, as well as similar physical handling procedures would greatly aid efficiency. Truckers who experience similar processing at all terminals, are in a better position to anticipate problems, and help expedite themselves to a degree. 3. Shipper /Consignee Education and Guidance Most shippers and consignees depend almost entirely on their freight forwarders or brokers, working with 22 railroads or truckers, to effect drayage or shunting interchange in the port. It would seem beneficial to all, if individual steamship companies or agents, who are most familiar with their respective marine terminals, would educate and advise shippers and consignees as to terminal procedures and problems. This would include identification of the individual rail plans and draying most suitable to the marine terminal used by the steam- ship company o