For an opposing point of view, see “Competition at the Port of Virginia makes all of Virginia better,” by former Gov. Jim Gilmore.
When you think about bustling ports like the Port of Virginia, you probably picture trains and ships working in harmony to keep goods moving and highways unclogged. But here’s something most folks don’t know: a taxpayer-funded subsidy is quietly tipping the scales, sending more trucks — and more traffic — onto local roads in Norfolk at the expense of Virginians as far away as Southwest Virginia. It’s a raw deal for Norfolk residents, and it threatens the balance Norfolk Southern long worked to achieve in Virginia’s transportation network.
For more than a century, NS has invested in Virginia’s rail infrastructure and partnered with the Commonwealth to keep freight moving safely and efficiently, helping build an economy that stands at the center of U.S. commerce today. From Bristol to Roanoke to Hampton Roads, NS’ commitment runs deep — the company helped build a rail network that supports local businesses, protects communities and strengthens Virginia’s economy. Integral to the Port of Virginia’s success is the Norfolk and Portsmouth Belt Line (NPBL), a railroad serving the Norfolk International Terminal, controlled for more than 30 years by a partnership between CSX and NS.
The NPBL, founded back in 1897, helps link railroads to the Port of Virginia, eliminating the need for heavy truck traffic in local neighborhoods and connecting the port to markets all over the U.S. The NPBL’s rules, including its fee structure, are straightforward: NPBL charges the same fees to each railroad based only on covering its costs. But CSX doesn’t want to pay this rate and has compelled the state to pay it money to cover a cheaper trucking solution. NPBL has always stood ready to serve its customers and has never refused to move freight for any customer.
But there’s a catch — a subsidy. Instead of using the NPBL rail connection to Norfolk International Terminal, railroad CSX mostly uses trucks to move intermodal containers to its nearby Portsmouth yard because the port subsidizes half the trucking cost. This government handout, paid for by the taxpayers of Virginia, uses public dollars to make trucking artificially cheap for CSX, driving up local truck traffic, congestion and safety risks in Norfolk neighborhoods. Even though CSX already uses the rail line to move other types of freight in and out of the port several times a week, it chooses to put intermodal cargo on trucks instead. Why? Because the port’s subsidy makes it cheaper and easier for them to do so.
Today, the company appears to be steering a misinformation campaign aimed at misconstruing its use of trucks on local roads as a decision it does not control. In reality, CSX is pushing NPBL to give it a special lower rate for moving intermodal traffic — despite the fact that NPBL’s governing documents require NPBL to charge a non-discriminatory, neutral rate to all customers, including NS and CSX. CSX is seeking to force the NPBL to provide a subsidy that, in turn, would result in other NPBL customers paying higher fees. Because this rate would not cover NPBL’s costs to move this traffic, other customers in Hampton Roads served by NPBL would have to make up the difference by paying higher fees themselves.
Let’s be clear: CSX is not and has never been shut out or disadvantaged at the port. In fact, CSX has increased its market share and remains a top mover of intermodal freight at Norfolk International Terminal and the Virginia International Gateway. The real issue is that CSX prefers the subsidized trucking option, which takes advantage of taxpayers and puts more trucks — and more emissions — on our streets.
The local community’s frustration with truck traffic is understandable. But the cause is not the management of the NPBL — it’s a decade-long subsidy that makes trucking artificially attractive for CSX. If the port ends this handout, we’ll see less congestion, safer roads and a greener future for Hampton Roads and a more prudent use of taxpayer dollars for Virginians all over the Commonwealth.
NS has stood and continues to stand ready to work with Virginia leaders to support a fair, efficient and sustainable rail network that meets the demands of today and tomorrow. Let’s stop subsidizing one company at the expense of everyone else. It’s time for transparency, fairness and a real commitment to moving freight the right way: by rail.
Jeffrey S. Heller is a former vice president intermodal and automotive at Norfolk Southern, where he spent nearly 30 years working alongside domestic and international intermodal and automotive customers and all major container ports on the East Coast, including the Port of Virginia, prior to retiring in 2022. His previous experience includes years spent in the container shipping business both in the U.S. and Europe.