The decision authorises the officers of VPA and its terminal operating company, Virginia International Terminals (VIT), to carry out the necessary work to implement reorganisation.
“I want to make clear that this is not a workforce reduction effort; VPA and VIT each went through that exercise four years ago,” said William Fralin Jr., chairman of the VPA board.
“Rather, this collaborative effort sets out multiple goals; streamlining operations, creating efficiencies, improving communications, [and] speaking to the market with a unified voice by eliminating duplication where possible. The ultimate goal is to make the Port of Virginia the gateway port on the US East Coast,” he added.
The restructuring plan that will eliminate structural barriers and see VPA and VIT managed and operated as one entity. The new executive director & CEO, who will replace Joe Dorto who retired as president and CEO of VIT at the end of March, will have complete oversight and responsibility for both organisations.
The main objectives of the plan are to centralise and streamline port operations, savings from which will be used for infrastructure improvements and port growth. The restructuring will take between six months and a year to implement, with savings estimated at between US$3m and US$6m over 12 months.