Transportation, work force training critical to area, alliance official says

by Doug Forshey
Publisher, Virginia Business
May 2006

The Hampton Roads Economic Development Alliance (HREDA) is a public-private partnership representing 13 localities in Southeast Virginia. The alliance markets the region nationally and internationally. HREDA merged last year with the Peninsula Alliance for Economic Development. The new entity represents Chesapeake, Gloucester County, Hampton, Isle of Wight County, James City County, Newport News, Norfolk, Poquoson, Portsmouth, Suffolk, Virginia Beach, Williamsburg and York County.

Q: What is the mission of your organization?
A: Our mission is the same now, as it was before the merger: market/promote Virginia’s Hampton Roads region as a world-class global business center.

Q: How did you get started in economic development?
A: After attending [George Washington], I worked on Capitol Hill for a Georgia congressman. Eventually, I ended up back in Georgia coordinating a unique Department of Defense impact assistance program – designed to mitigate the community impacts associated with the construction of the East Coast Trident Submarine Base [at Kings Bay, Ga.] The program covered appropriations from the Department of Defense to eight localities within two states. When the project ended, I found that I really liked economic development. That experience eventually led to an economic development position in Albany, Ga., which I held for 11 years, and then a job with KPMG in Atlanta, working for their site location practice.

Q: What brought you to Virginia?
A: A head hunter called me at KPMG and asked if I would be interested in an economic development opportunity outside Georgia. She described the region without being too specific. I told her there were only three states I would consider working in – and Virginia was on my short list. They flew me up to Hampton Roads, and I liked what I saw.

Q: How was 2005 for economic development in Hampton Roads?
A: Overall our region did well last year. In September the Southside and the Peninsula, collectively, saw more clients in Hampton Roads than either region had seen separately [in September, 2004]. Many of the projects we have worked on or are currently involved with will bring business to the region. And our international efforts over the past several years are beginning to mature and will hopefully show signs of success.

Q: What challenges lie ahead for Hampton Roads?
A: In a word – transportation. The General Assembly must address our transportation needs on both a statewide and regional level. There are several major projects that need to move forward that are important – especially for the port. Without major investments in our transportation infrastructure, we won’t be able to increase the port’s capacity and continue its growth. That growth is vital to our economic future. And one of the most important initiatives would be the third crossing.

Work force training programs are also important. We cannot back off our investments in education – K through 12 and higher education. Virginia must maintain a trained and educated labor pool. But it’s not just higher ed. We have a real shortage of qualified truck drivers, shipyard repair technicians and general workers for our maritime industry.

One other challenge we have involves overall incentives for economic development, in response to the competition. Virginia is not a give-away state, and I don’t advocate that it become one. But we should identify certain important industries we want to attract, such as aerospace, biotech or modeling and simulation, and be very aggressive in getting them here.

Q: What are the major projects on your region’s priority list?
A: The plans for Craney Island and the Heartland Rail Corridor project are at the top of our list. We must plan for the container volumes in the next decade, and the eventual development of the Craney Island facility is key. The Heartland Rail Corridor project, designed to allow double-stack rail cars on the east-west route, will cut 225 miles off container train trips between Hampton Roads and the Midwest. This $311 million rail project is important to the new APM terminal in Portsmouth. It will also reduce truck transfers and rail crossings, which are a bottleneck to auto traffic.

We are the front door to the global economy, and we have to plan for the future growth of the port and the Hampton Roads region.