Economy of Norfolk, Virginia

Last updated

Since Norfolk serves as the commercial and cultural center for the geographical region of Hampton Roads (and in its political structure of independent cities), it can be difficult to separate the economic characteristics of Norfolk, from that of the region as a whole. The waterways which almost completely surround the Hampton Roads region also play an important part in the local economy. As a strategic location at the mouth of the Chesapeake Bay, its protected deep water channels serve as major arteries for the import and export of goods from across the Mid-Atlantic, Mid-West, and international destinations, as well as being the location of the world's largest naval base. [1]

Contents

Military

USS John F. Kennedy (CV-67) arriving at Naval Station Norfolk NavalStationNorfolk.jpg
USS John F. Kennedy (CV-67) arriving at Naval Station Norfolk

Hampton Roads is a major military center, particularly for the United States Navy, and Norfolk serves as the home for the most important of these regional installations, Naval Station Norfolk. Located on Sewell's Point Peninsula, in the northwest corner of the city, the installation is the current headquarters of the Atlantic Fleet, as well as being home port for the 2nd Fleet, which compromises approximately 62,000 active duty personnel, 75 ships, and 132 aircraft. Norfolk is also home to Naval Support Activity Hampton Roads, the headquarters to the Allied Command Transformation (NATO) and the United States Joint Forces Command.

The region also plays an important role in defense contracting, with particular emphasis in the shipbuilding and ship repair businesses for the city of Norfolk. Major private shipyards located in Norfolk include: BAE Systems Ship Repair, Colonna's Shipyard, and NASSCO. Most contracts fulfilled by these shipyards are issued by the Navy, though some private commercial repair also takes place.

When combined with other important regional military installations such as Naval Air Station Oceana, Norfolk Naval Shipyard (in Portsmouth), Langley Air Force Base, and Naval Amphibious Base Little Creek, and along with other important defense contractors, the military serves as the region's economic backbone and cultural focal point. As of 2004, it was estimated that over 35% of Gross Regional Product (which includes the entire Norfolk-Newport News-Virginia Beach MSA), was attributable to defense spending, and 75% of all regional growth since 2001 was attributable to increases in defense spending. [2]

Commercial ports

After the military, the 2nd largest and most important industry for Hampton Roads and Norfolk based on economic impact are the region's cargo ports. Headquartered in Norfolk, the Virginia Port Authority (VPA) is a Commonwealth of Virginia owned-entity that, in turn, owns and operates three major port facilities in Hampton Roads for break-bulk and container type cargo. In Norfolk, Norfolk International Terminals (NIT) represents one of those three facilities and is the location of the world's largest and fastest container cranes. [3] Together, the 3 terminals of the VPA handled a total of over 2 million TEUs and 475,000 tons of breakbulk cargo in 2006, making it the 2nd* busiest port on the east coast of North America by total cargo volume after the Port of New York and New Jersey. In addition, just across the Elizabeth River in Portsmouth, Maersk is spending $450 million to open the largest container terminal on the East Coast sometime in late 2007. [4]

In addition to NIT, Norfolk is home to Lambert's Point Docks, the largest coal trans-shipment point in the Northern Hemisphere, with annual throughput of approximately 48 million tons. [5] Bituminous coal is primarily sourced from the Appalachian mountains in western Virginia, West Virginia, and Kentucky. The coal is loaded onto trains and sent to the port where it is unloaded onto large breakbulk cargo ships and destined for New England, Europe, and Asia primarily.

Most major shipping lines have a permanent presence in the region with some combination of sales, distribution, and/or logistical offices, many of which are located in Norfolk. In addition, many of the largest international shipping companies have chosen Norfolk as their North American headquarters. These companies are either located at the Norfolk World Trade Center building or have constructed buildings in the Lake Wright Executive Center office park. Among them include:

Tourism

Though Virginia Beach and Williamsburg have traditionally been the centers of tourism for the region, the rebirth of downtown Norfolk and the construction of a cruise ship pier at the foot of Nauticus in downtown has driven tourism to become an increasingly important part of the city's economy. The number of cruise ship passengers who visited Norfolk increased from 50,000 in 2003, to 107,000 in 2004 and 2005. Also in April 2007, the city completed construction on a $36 million state-of-the-art cruise ship terminal alongside the pier. [9] Partly due to this construction, passenger counts dropped to 70,000 in 2006, but is expected to rebound to 90,000 in 2007, and higher in later years. Unlike most cruise ship terminals which are located in industrial areas, the downtown location of Norfolk's terminal has received favorable reviews from both tourists and the cruise lines who enjoy its proximity to the city's hotels, restaurants, shopping, and cultural amenities. [10]

Companies headquartered in Norfolk

Trader Square, headquarters of Dominion Enterprises Trader Square, Norfolk.JPG
Trader Square, headquarters of Dominion Enterprises

Related Research Articles

<span class="mw-page-title-main">Norfolk, Virginia</span> Independent city in Virginia, United States

Norfolk is an independent city in Virginia, United States. As of the 2020 census, Norfolk had a population of 238,005, making it the third-most populous city in Virginia after neighboring Virginia Beach and Chesapeake, and the 95th-most populous city in the nation. Norfolk holds a strategic position as the historical, urban, financial, and cultural center of the Hampton Roads region, which has more than 1.8 million inhabitants and is the 37th-largest metropolitan area in the U.S., with ten cities.

<span class="mw-page-title-main">Portsmouth, Virginia</span> Independent city in Virginia, United States

Portsmouth is an independent city in southeast Virginia, United States. It lies across the Elizabeth River from Norfolk. As of the 2020 census, the population was 97,915. It is the 9th-most populous city in Virginia and is part of the Hampton Roads metropolitan area.

<span class="mw-page-title-main">Newport News, Virginia</span> Independent city in Virginia, United States

Newport News is an independent city in the Commonwealth of Virginia in the United States. At the 2020 census, the population was 186,247. Located in the Hampton Roads region, it is the fifth-most populous city in Virginia and 140th-most populous city in the United States.

<span class="mw-page-title-main">Port</span> Maritime facility where ships may dock to load and discharge passengers and cargo

A port is a maritime facility comprising one or more wharves or loading areas, where ships load and discharge cargo and passengers. Although usually situated on a sea coast or estuary, ports can also be found far inland, such as Hamburg, Manchester and Duluth; these access the sea via rivers or canals. Because of their roles as ports of entry for immigrants as well as soldiers in wartime, many port cities have experienced dramatic multi-ethnic and multicultural changes throughout their histories.

<span class="mw-page-title-main">Hampton Roads</span> Body of water and metropolitan area in the U.S. states of Virginia and North Carolina

Hampton Roads is the name of both a body of water in the United States that serves as a wide channel for the James, Nansemond, and Elizabeth rivers between Old Point Comfort and Sewell's Point where the Chesapeake Bay flows into the Atlantic Ocean, and the surrounding metropolitan region located in the southeastern Virginia and northeastern North Carolina portions of the Tidewater Region.

The Port of Houston is one of the world's largest ports and serves the metropolitan area of Houston, Texas. The port is a 50-mile-long complex of diversified public and private facilities located a few hours' sailing time from the Gulf of Mexico. Located in the fourth-largest city in the United States, it is the busiest port in the U.S. in terms of foreign tonnage and the busiest in the U.S. in terms of overall tonnage. Though originally the port's terminals were primarily within the Houston city limits, the port has expanded to such a degree that today it has facilities in multiple communities in the surrounding area. In particular the port's busiest terminal, the Barbours Cut Terminal, is located in Morgan's Point.

<span class="mw-page-title-main">Port of Philadelphia</span> Port in United States

The Port of Philadelphia is located on the Delaware River in Philadelphia in the U.S. state of Pennsylvania.

<span class="mw-page-title-main">PortMiami</span> Port in United States

The Port of Miami, styled as PortMiami and formally known as the Dante B. Fascell Port of Miami, is a major seaport located in Biscayne Bay at the mouth of the Miami River in Miami, Florida. It is the largest passenger port in the world and one of the largest cargo ports in the United States.

<span class="mw-page-title-main">South Hampton Roads</span> Region in southeast Virginia

South Hampton Roads is a region located in the extreme southeastern portion of Virginia's Tidewater region in the United States with a total population of 1,191,937. It is part of the Virginia Beach-Norfolk-Newport News, VA-NC MSA, which itself has a population of 1,724,876.

<span class="mw-page-title-main">Mediterranean Shipping Company</span> Swiss international shipping line

Mediterranean Shipping Company S.A, branded as MSC is an international shipping line founded by Gianluigi Aponte in Italy in 1970. The company is owned by the Aponte family with its headquarters in Switzerland since 1978. It is the world's largest container shipping company by both fleet size and cargo capacity, controlling about 19.7 percent of the global container ship fleet.

USS <i>Albemarle</i> (AV-5) Curtiss-class seaplane tender ship

USS Albemarle (AV-5) was one of only two Curtiss-class seaplane tenders built for the United States Navy just prior to the United States' entry into World War II. Named for Albemarle Sound on the North Carolina coast, she was the third U.S. Naval vessel to bear the name. Albemarle was laid down on 12 June 1939 at Camden, New Jersey, by the New York Shipbuilding Corporation, and launched on 13 July 1940, sponsored by Mrs. Beatrice C. Compton, the wife of the Honorable Lewis Compton, Assistant Secretary of the Navy. She was commissioned at the Philadelphia Navy Yard on 20 December 1940, with Commander Henry M. Mullinnix in command. She was transferred to the Maritime Administration (MARAD) James River Fleet at Fort Eustis, Virginia. Placed in the custodial care of MARAD, Albemarle was struck from the Naval Vessel Register on 1 September 1962.

<span class="mw-page-title-main">Transportation in Virginia</span> Overview of land sea and air transport systems in Virginia

Transportation in the Commonwealth of Virginia is by land, sea and air. Virginia's extensive network of highways and railroads were developed and built over a period almost 400 years, beginning almost immediately after the founding of Jamestown in 1607, and often incorporating old established trails of the Native Americans.

<span class="mw-page-title-main">Nauticus</span> Maritime-themed science center and museum located in Norfolk, Virginia

Nauticus is a maritime-themed science center and museum located on the downtown waterfront in Norfolk, Virginia, also known as the National Maritime Center.

<span class="mw-page-title-main">Port of Haifa</span> Port in Israel

The Port of Haifa is the largest of Israel's three major international seaports, the others being the Port of Ashdod, and the Port of Eilat. Its natural deep-water harbor operates all year long and serves both passenger and merchant ships. It is one of the largest ports in the eastern Mediterranean in terms of freight volume and handles about 30 million tons of cargo per year. The port employs over 1,000 people, rising to 5,000 when cruise ships dock in Haifa. The Port of Haifa lies north of Haifa's downtown quarter on the Mediterranean and stretches to some three kilometres along the city's central shore with activities ranging from military, industrial, and commercial next to a nowadays-smaller passenger cruising facility.

<span class="mw-page-title-main">Port of Jacksonville</span> Port in United States

The Port of Jacksonville (JAXPORT) is an international trade seaport on the St. Johns River in Jacksonville, Florida. JAXPORT is the largest port by volume in Florida, and the 14th largest container port in the United States. It carries about 18 million short tons of cargo each year and has an annual economic impact of over $31 billion, including 138,500 jobs across the state of Florida related to cargo moving through the port. It handled 1,338,000 containers, and is the second largest handler of vehicles in the United States with 696,500 in 2019.

<span class="mw-page-title-main">History of Norfolk, Virginia</span>

The history of Norfolk, Virginia as a modern settlement begins in 1636. The city was named after the English county of Norfolk and was formally incorporated in 1736. The city was burned by orders of the outgoing Virginia governor Lord Dunmore in 1776 during the second year of the American Revolutionary War (1775–1783), although it was soon rebuilt.

<span class="mw-page-title-main">Downtown Norfolk, Virginia</span> Central Business District

Downtown Norfolk serves as the traditional center of commerce, government, and culture in the Hampton Roads region. Norfolk, Virginia's downtown waterfront shipping and port activities historically played host to numerous and often noxious port and shipping-related uses. With the advent of containerized shipping in the mid-19th century, the shipping uses located on Norfolk's downtown waterfront became obsolete as larger and more modern port facilities opened elsewhere in the region. The vacant piers and cargo warehouses eventually became a blight on downtown and Norfolk's fortunes as a whole. But in the second half of the century, Norfolk had a vibrant retail community in its suburbs; companies like Smith & Welton, High's, Colonial Stores, Goldman's Shoes, Lerner Shops, Hofheimer's, Giant Open Air, Dollar Tree and K & K Toys were regional leaders in their respective fields. Norfolk was also the birthplace of Econo-Travel, now Econo Lodge, one of the nation's first discount motel chains.

USS <i>Rutilicus</i> Cargo ship of the United States Navy

USS Rutilicus (AK-113) was a Crater-class cargo ship commissioned by the US Navy for service in World War II. She was responsible for delivering troops, goods and equipment to locations in the Asiatic-Pacific Theater.

Located in the southeastern corner of the state, Norfolk is economically and culturally important to Virginia. A variety of transportation modes have developed around the city's importance and somewhat unusual geography.

The Virginia Port Authority (VPA) is an autonomous agency of the Commonwealth of Virginia that owns The Port of Virginia, a group of facilities with their activity centered on the harbor of Hampton Roads, Virginia.

References

  1. ↑ "Naval Station Norfolk". globalsecurity.org. Retrieved 19 February 2024.
  2. ↑ "The State of the Region: Regional Economy" (PDF). Old Dominion University. 2004. Archived (PDF) from the original on 20 October 2004. Retrieved 11 October 2007.
  3. ↑ "Norfolk International Terminals". Virginia Port Authority. Archived from the original on 3 August 2007. Retrieved 6 August 2007.
  4. ↑ "The Port of Hampton Roads" (PDF). Hampton Roads Economic Development Authority. Archived from the original (PDF) on 8 August 2007. Retrieved 6 August 2007.
  5. ↑ "Lamberts Point". Globalsecurity.org. Retrieved 19 February 2024.
  6. ↑ Lyne, Jack (2004). "CMA-CGM Picks Norfolk, Va., as Port of Call for 376-Employee HQ". The Site Selection Magazine. Retrieved 19 February 2024.
  7. ↑ "Hampton Roads Economic Development Alliance Announces U.S. Headquarters For Norfolk: Zim-American Israeli Shipping Co. to relocate from New York and create 235 jobs" (PDF). Hampton Roads Economic Development Authority. 2 April 2001. Archived from the original (PDF) on 8 August 2007. Retrieved 6 August 2007.
  8. ↑ "Maerske Line Ltd". Maerske Line Ltd. Archived from the original on 9 October 2007. Retrieved 10 October 2007.
  9. ↑ Seldon, Lynn (2006). "Norfolk: gateway to colonial Virginia & home to maritime heritage". Cruise Travel. Archived from the original on 28 May 2006. Retrieved 11 October 2007.
  10. ↑ "Cruise Norfolk". Norfolk Cruise Terminal. Archived from the original on 12 August 2007. Retrieved 9 August 2007.
  11. ↑ "Contact Us". BlackHawk Products Group. Archived from the original on 11 September 2007. Retrieved 12 October 2007.
  12. ↑ "Contacts". FHC Health Systems. Retrieved 12 October 2007.
  13. ↑ "About Us". Landmark Communications. Archived from the original on 21 October 2007. Retrieved 12 October 2007.
  14. ↑ "About Us". Dominion Enterprises. Retrieved 12 October 2007.
  15. ↑ "Corporate Profile". Norfolk Southern. Retrieved 12 October 2007.
  16. ↑ "Contact Information". Portfolio Recovery Associates. Archived from the original on 18 August 2007. Retrieved 12 October 2007.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.