Senators Jim Webb and Mark Warner today announced the inclusion of $27.4 million for the expansion of Craney Island in the President’s budget request for Fiscal Year 2012. In September 2010, the Senators wrote the Administration to request funding for Craney Island in the President’s budget.

“The Craney Island Project will generate more than 1,100 jobs immediately and 54,000 sustainable jobs after construction,” said Senator Webb. “The expansion will allow the Virginia Port Authority to nearly double its marine terminal capacity to meet the anticipated increase in shipped goods to and from international ports, particularly in Asia.”

"Craney Island is a critical infrastructure project that will create more than 1,000 construction jobs in the near term," Sen. Warner said. "More significantly, the project will help support Virginia's economic competitiveness for decades after full build-out."

The Port of Virginia is a gateway for international commerce and is one of thirteen U.S. strategic ports that support the mobilization and readiness of our national defense. Over 14,000 businesses from all contiguous 48 states move cargo through Virginia. It is critical that the Craney Island Eastward Expansion project remain on schedule to open in 2017.

Not only does this project help assure a competitive posture for the nation, it is estimated to stimulate $6 billion in National Economic Development (NED) benefits with a Benefit Cost Ratio of 4.4 to 1.

The Heartland Rail Corridor, which connects the ports of Hampton Roads with the Midwest, opened last year to great fanfare. Additionally, with the Panama Canal expansion scheduled to be operational in 2014, it is important that this project continues to move forward to meet the projected increase in international trade. The Craney Island expansion will allow Virginia to provide the necessary connection to our broad and expansive nationwide rail network to accommodate this increase in business.

The text of the Senators’ letter to the Administration is below:

September 27, 2010

Mr. Jeff Zients

Acting Director

The Office of Management and Budget?725 17th Street, NW?Washington, DC 20503

Dear Director Zients:

As you prepare the President’s Fiscal Year 2012 federal budget, we write to urge that you include $50,000,000 in construction funds for the Craney Island Eastward Expansion project in Portsmouth, Virginia. We appreciate the enormous fiscal pressures you face this year; however, given the national significance of this project and the number of jobs it would create, we are seeking its inclusion in next year’s budget. 

We are appreciative that the President’s budget included funding for the Craney Island Project in the Fiscal Year 2010 and 2011 budgets. The FY 2010 Energy & Water appropriations bill provided moderate funding for the project, removing it from the category of “new starts.” Further funding is crucial to initiate substantial construction. As you know, the Water Resources Development Act of FY2007 authorizes this project with a 50% federal share of the total cost. The Virginia Port Authority will match the federal contribution; to date, they have paid well over 50% of the project budget.

The Port of Virginia is a gateway for international commerce and is one of thirteen U.S. strategic ports that support the mobilization and readiness of our national defense. Over 14,000 businesses from all contiguous 48 states move cargo through Virginia. It is critical that the Craney Island Eastward Expansion project remain on schedule to open in 2017. The construction of the Craney Island Eastward Expansion will allow the Virginia Port Authority to nearly double its marine terminal capacity and meet the anticipated demand in shipped goods to and from international ports.

Not only does this project help assure a competitive posture for the nation, it is estimated to stimulate $6 billion in National Economic Development (NED) benefits with a Benefit Cost Ratio of 4.4 to 1. Furthermore, the Craney Island Project will generate over 1,100 jobs immediately and 54,000 sustainable jobs after construction. This project fits the administration’s drive for smart economic and infrastructure growth.

The Heartland Rail Corridor, which connects the ports of Hampton Roads with the Midwest, opened this month to great fanfare. Additionally, with the Panama Canal expansion scheduled to be operational in 2014, it is important that this project continues to move forward to meet the projected increase in international trade. The Craney Island expansion will allow Virginia to provide the necessary connection to our broad and expansive nationwide rail network to accommodate this increase in business.

We believe that the completion of the Craney Island expansion project has clear benefits to the nation, facilitating more efficient transport of goods, and assisting in the mobilization of defense assets should a national emergency arise.

We appreciate your consideration of this important initiative and look forward to working closely with you on behalf of the citizens of the Commonwealth of Virginia. Thank you for your consideration of this request.