Central Rail Yard Goes to Work; Project Creates Capacity to Process 2 Million Rail TEUs Annually

The Port of Virginia’s expanded central rail yard is fully-operational signaling the completion of a project giving the port the capacity to process 2 million twenty-foot equivalent units (TEUs) by rail annually.

“Modernizing and expanding the capability at NIT’s [Norfolk International Terminals] central rail yard gives us additional rail capacity ahead of the completion of the first phase of expansion at NIT’s North Berth [in 2025],” said Stephen A. Edwards, CEO and executive director of the Virginia Port Authority. “Cargo volumes coming to the US East Coast are steadily increasing and moving the cargo to market by rail, over The Port of Virginia, is smart business.”

The expansion enhances the port’s reach to important Midwestern population and manufacturing centers by train, Edwards said today at a ceremony to inaugurate the expansion. Virginia Transportation Secretary W. Sheppard “Shep” Miller III, US Deputy Transportation Secretary Polly Trottenberg, Maritime Administrator Rear Admiral (Ret.) Ann Philips, US Reps. Bobby Scott (D-VA) and Jen Kiggans (R-VA) along with industry representatives were in attendance.

The port leveraged a $20 million Port Infrastructure Development Grant to help pay for the central rail yard expansion project, said US Deputy Transportation Secretary Polly Trottenberg, who, along with other federal government officials attended the event and toured The Port of Virginia afterward.

“We are proud to be a steward of this port modernization project contributing a $20 million investment which not only expands the Norfolk International Terminals’ central rail yard, but serves to elevate the entire Port of Virginia as a critical hub for trade on the East Coast,” said Deputy Transportation Secretary Polly Trottenberg.

Construction began in 2022 and the $83-million-project was delivered on-time and on-budget; the investment is part of the port’s larger $1.4 billion Gateway Investment Program. The port used a $20 million federal grant and a $20 million grant from the state Department of Rail and Public Transportation to build two new rail track bundles and purchase three all-electric cantilever rail-mounted gantry cranes. The project gives the port an additional 455,000 TEUs (twenty-foot equivalent units) of annual on-dock rail capacity an increase of 31 percent, port-wide.

“Our Gateway Investment Program includes delivery of the deeper, wider and safer 55-foot [deep] channel, the expansion of North NIT and the creation of the Portsmouth offshore wind hub. This additional rail capacity has been delivered on-time, in advance of the deeper channel and phase one of the North Berth expansion. Maintaining the construction schedule is important as we begin to message to the trade and talk about our expanded capabilities today, and what is coming in the very near future.”

Both of the East’s Class I rail carriers, Norfolk Southern and CSX, serve the port with regular, on-dock, double-stack service.

The Virginia Port Authority (VPA) is a political subdivision of the Commonwealth of Virginia. The VPA owns and through its private operating subsidiary, Virginia International Terminals, LLC (VIT), operates four general cargo facilities Norfolk International Terminals, Portsmouth Marine Terminal, Newport News Marine Terminal and the Virginia Inland Port in Warren County. The VPA leases Virginia International Gateway and Richmond Marine Terminal. An economic impact study from The College of William and Mary shows that The Port of Virginia is a driver of more than 565,000 jobs and $63 billion in Virginia gross domestic product on an annual basis.