Given the economy and the recent APM transaction, this seems like a very reasonable way to proceed.  I know the Port will be uncovering various synergies withthe APM facility as they get further into its operations.  These will lead to operational improvements at 3 original terminals as well as the APM terminal.

While this may seem like a seemingly insignificant item, it is actually a big help to Virginia based businesses engaged in interstate commerce.  Prior to the elimination of the requirement, if you registered your interstate trucks in Virginia, once a year each registered vehicle would have to come back to the state to be inspected.  That is in addition to the federally mandated safety inspection.  Depending on the size of your fleet, you may have registered trucks that never even enter the state in their normal route patterns.  However, those trucks would still have to find a time to come back to Virginia to undergo the duplicative inspection.  For the larger companies, that is an expensive and inconvenient proposition and could drive them to register their fleet in another state that does not have that requirement, thus taking registration fee revenue away from Virginia.

Now that the state-level inspection requirement has been removed, trucks will still need to have their annual federal inspection, but will not need to also have an inspection performed in state.  For a UPS Freight or Estes Express Lines, both with headquarters in Virginia and large interstate fleets, that is a huge time and cost saver.  In addition, as Virginia pursues new companies to locate within the state they have now added to their competitive position.

“To us, it’s a fairly important step,” UPS spokesman Norman Black told the Richmond Times-Dispatch. “It avoids a duplicative inspection that didn’t make things very friendly for transportation companies in Virginia.”

All in all this is a very low cost, high impact move for the state.

Just remember that you heard it here first…

Once completed, the improved traffic pattern will allow the port to build longer trains carrying imported cargo containers without disrupting traffic on Hampton Blvd.  The port estimates that this could allow them to utilize rail for an additional 20% of the product that comes through the port.  Currently, that 20% leaves the port via truck and contributes to pollution, congestion and disgruntled neighbors.  The more product that can leave via rail, the better for Hampton Roads.

Now that Hampton Boulevard is being addressed, the State is considering an additional $17.8 million investment to double the on-dock rail capacity at Norfolk International Terminals.  These are all great projects for the port and will further enhance its competitive position over other East Coast ports.

RAYTHEON CORP. SIGNS 600,000-SQUARE-FOOT LEASE 
DULLES, VA. — Waltham, Mass.-based Raytheon Corp. has signed a 10-year, 600,000-square-foot lease with AOL for space in the company’s Pacific Corporate Park. Raytheon will fully occupy three buildings and lease half of a fourth building in the park, located on Pacific Boulevard in Dulles. The transaction involves a capital investment of $37.5 million and will create 100 jobs. Cathy Delcoco, Vicki Salamon and Terry Reiley of CB Richard Ellis’ McLean, Va., office and Rob Faktorow of the firm’s Washington, D.C., office represented AOL. Jones Lang LaSalle represented the tenant. 
     Raytheon had been looking to consolidate some of its Northern Virginia offices and plans on housing the company’s technical services company and intelligence and information systems unit in the property. The company will move into the buildings in three phases starting in 2010. The majority of the move will be completed in early 2011, with full occupancy expected by the end of the first quarter of 2011. “For the size of the lease, it moved quickly,” Delcoco says. “Both parties were motivated to close the transaction. Raytheon had some leases expiring and were contemplating a consolidation of several locations, and AOL had excess space due to rightsizing their Virginia campus.”
     This transaction represents a substantial commitment to the area in a time when most companies are in a holding pattern. “The lease is significant as it keeps a large user in Northern Virginia and gives a breath of fresh air to the commercial real estate market,” Delcoco says. “In today’s environment, the constant news is the difficulty in the capital markets and the lack of activity in the commercial real estate market. This is a positive commitment to the region.”

HEWLETT PACKARD RENEWS 800,000-SQUARE-FOOT LEASE IN VIRGINIA
SANDSTON, VA. — Hewlett Packard Co. has signed a lease renewal for 800,000 square feet of warehouse space in White Oak I Technology Park. The property is located at 7001 Technology Blvd. in Sandston. HP uses the property as a distribution center. N. Dean Meyer of Thalhimer’s Richmond, Va., office brokered the transaction.  

150,000-SQUARE-FOOT LEASE SIGNED IN VIRGINIA
DOSWELL, VA. — Diamond Hill Plywood Co. has signed a 150,000-square-foot lease for space in a Doswell warehouse. Terms of the lease were not released. The property is located at 17320 Washington Highway. Stephanie Sanker and Clay Culbreth of GVA Advantis’ Norfolk, Va., office represented Diamond Hill.

The most exciting news comes is that one of the CKYH services, the NATCO-4, will have Norfolk as its first stop from Asia.  This means that customers shipping goods via this services will be able to receive their containers via Virginia before other ports.  First Call services are a big deal for ports and Virginia hopes that they can leverage the NATCO-4 success into more First Call services.  The full port rotation for the NATCO-4 service is Shanghai, Chiwan, Yantian, Hong Kong, Virginia and New York and will utilize eight vessels each with a 3,850 TEU capacity.  With the change in the service, CKYH dropped Savannah from the NATCO-4 rotation.

Virginia is also being added to the NATCO-5 service.  The full port rotation for that service is Pusan, Shanghai, Ningbo, Yantian, Xiamen, Savannah, Virginia and New York and will utilize eight vessels each with a 3,300 TEU capacity.

Finally, after bypassing Virginia over one year ago, China Shipping is adding Virginia back into their weekly AAE-1 service.  The full port rotation for the AAE-1 service will be Shanghai, Hong Kong, Yantian, Miami, Savannah, Virginia and New York.  This service will use smaller vessels, each of which are approximately 3,000 TEUs.

All told, the new services represent about 150 new ship calls to the Port of Virginia.  That’s great news in any economic environment.

It all puts the real estate investor in a tough predicament.  The impending inflation would drive you towards buying now and locking in your capital costs.  However, with the specter of additional pricing declines on the horizon, investors are reluctant to buy now for fear of overpaying.  So, again, the real estate market remains locked in indecision. 

Here in Richmond, the situation is very similar.  Richmond BizSense ran an article this week talking about the lack of sales activity in this market.  In addition to quoting some fantastic market experts (including your truly), the article does a very good job of laying out the situation that faces both buyers and sellers in today’s market.  No doubt, it’s a tough one.  The companies that can be flexible and creative will do much better than those that can’t.