Virginia Barge and Rail Usage Grant Program

The company must be an international trade facility. For purposes of this grant award, “international trade facility” is defined as a company:

• Doing business in Virginia.
• Engaged in port-related activities including, but not limited to, warehousing, distribution, freight forwarding and handling, and goods processing.
• With sole discretion and authority to choose the method used to move cargo originating or terminating in Virginia.
• Using maritime port facilities located in Virginia.
• Using barges and rail systems to move cargo containers through port facilities in Virginia rather than trucks or other motor vehicles on Virginia’s highways (see Code of Virginia § 62.1-132.3:6).
• Cargo qualifying for this grant award must result from a diversion of shipments from Virginia’s highways.

The company entitled to apply for the grant award is the company that:

• Has increased their barge and rail cargo volume for a calendar year by at least five percent (5%) above the preceding calendar year's volume.
• Has ownership of the cargo at some point while it is being transported through Virginia (including upon shipment or on delivery). 
• Has control over the method used to move the cargo in Virginia. Ownership is determined by the terms of the contract between the two parties and is evidenced by the bill of lading.

Only cargo being shipped through maritime port facilities qualifies for purposes of this grant award. A maritime port facility is the port in Virginia where the cargo is first loaded to or unloaded from a ship or barge. Shipments through inland ports or any other facility where cargo may be reshipped do not qualify for a second grant award.

Only international shipments qualify for the Barge and Rail Usage Grant Program. Shipments to a Virginia port from another state, or domestic exports from Virginia, do not qualify for this grant award.

• The Virginia Port Authority will serve as the responsible agency for administering the Virginia Barge and Rail Usage Grant Program and Fund through the evaluation of applicants and disbursement of funds at its discretion. 
• An eligible international trade facility must pre-apply to the Virginia Port Authority between September 1 and October 31st in the year preceding the general application period by submitting a pre-application form found on the Port of Virginia webpage: https://operations.portofvirginia.com/grants.
• Within in 45 days of the close of the pre-application period, each preapplication form must be reviewed and scored by the Incentive Grant Review Committee (IGRC) 
• The pre-application scoring is considered against the following criteria and description: 

1. Anticipated Volume Increase - Grant applications from companies that show the largest absolute increase in cargo volumes will be prioritized for their substantial contribution to port activity and economic growth. Emphasis will be placed on the absolute magnitude of the volume increase, irrespective of percentage growth. 
2. Richmond Marine Terminal (RMT) and the Virginia Inland Port (VIP) - Grant applications from companies that demonstrate significant utilization of Richmond Marine Terminal or the Virginia Inland Port for barge and rail transportation will be prioritized for their contribution to increasing cargo throughput and diversifying transportation modes.
3. Infrastructure Investment - Grant applications from companies making substantial infrastructure investments in the Commonwealth, such as the development of new port-related facilities or upgrades to existing ones, will be prioritized for their potential to catalyze economic growth, enhance logistical capabilities, and improve the competitiveness of the Commonwealth’s transportation network. Additionally, equal prioritization will be given to cargo owners who demonstrate a commitment to filling open warehousing inventory, even if they do not make the infrastructure investment directly, but instead utilize third-party logistics providers. 
4. Letter of Recommendation - When evaluating grant applicants, customers who receive a letter of recommendation from Virginia International Terminals will be prioritized for their demonstrated commitment to contribute to the economic growth of the Commonwealth and their efforts to increase international trade activities, bolster the resilience and competitiveness of the Port of Virginia, and solidify its status as a key economic gateway through increased cargo throughput. These letters are given at the sole discretion of a senior leadership, non-committee member of the Virginia International Terminals, in recognition of specific projects which strongly align with the above-mentioned goals of the program. 
5. New v. Existing Users - Grant applications from new users will be assessed with greater emphasis on their potential to drive growth, expand market reach, and contribute to the overall strategic objectives of The Port of Virginia. Factors such as the projected impact on cargo volumes, market diversification, and job creation will be given heightened consideration when ranking applications from new users. However, existing users will still be evaluated based on their contribution to the port's success and their plans for continued collaboration and growth within the port ecosystem. New user is defined as a new customer utilizing the Port of Virginia.

• In any given year, IGRC will deploy metric aggregators to identify the baseline of the tiered scoring proportionately for each category based on that year’s pool of applicant’s information. Every application year, the data provided by the applicants will be queried and a new baseline will be established and recorded. 
• At the completion of the due diligence process, no later than December 31 of the pre-application year, an applicant will be notified of either pre-approval or renunciation. 

1. Pre-approval means - the applicant/facility will be directed to complete the general application process when the program commences on January 1. 
2. Renunciation means – the applicant/facility was not directed to complete the general application as a result of unfulfilling the program’s anticipated qualifications. 
3. Failure to complete a pre-application as mentioned above, results in an awarding disqualification of this program’s funds for the year intended to apply. 
4. Failure to submit a general application by the deadline forfeits opportunity to be eligible to receive an award. 

• The general application period begins January 1 or the calendar year immediately following the calendar year of the barge and rail growth and preapplication. Submission of the general grant application shall be made by March 31. 
• General application guidelines include: 

1. Submission of a completed general application through the Cargo Verification Portal found on the Port of Virginia’s webpage http://tax.portofvirginia.com/ via an upload, or by an email or standard mail to the address listed in the general application instructions; 
2. Providing the portal verification of the facility’s uploaded cargo details for the eligible barge and rail volume from the base year and the preceding calendar year. The total TEUs listed on this validation summary will become a part of the application. If cargo does not originate or terminate with the Port of Virginia port facilities, the applicant must utilize the corresponding Schedule A; 
3. Applicant signatures; 
4. An upload of the entity’s W-9; and 
5. Any additional identifying company information requested

Code of Virginia – Section 62.1-132.3:2.6

BRU Program Policy  

Pre-Application

Do domestic exports qualify for this grant?

No, only international shipments qualify for the Barge and Rail Usage Grant Program.

What is considered a “maritime port facility”?

A maritime port facility is the port in Virginia where the cargo is first loaded to or unloaded from a ship or barge. Only cargo being shipped through maritime port facilities qualifies for purposes of this grant program.

What is an “LCL”?

A less than container load (LCL) is cargo insufficient in either weight or volume to qualify for the freight rates that apply to a standard shipping container and is therefore combined with cargo owned by other shippers or with cargo intended for at least one other consignee. An LCL does not qualify as a TEU for purposes of this grant.

Do we need to pre-apply for the BRU Grant Program?    

Yes, the mandatory Pre-Application for the Growth Incentive Grants will be available online at https://operations.portofvirginia.com/grants beginning on September 1, 2024, and all Pre-Applications are due by October 31, 2024. Questions and inquires should be sent to growthincentivegrants [at] portofvirginia.com (growthincentivegrants[at]portofvirginia[dot]com)

When will eligible entities be notified of either pre-approval or renunciation?    

An applicant will be notified of either pre-approval or renunciation no later than December 31 of the pre-application year.

When are general applications due?    

The general application period begins January 1 of the calendar year immediately following the calendar year of port cargo volume growth and pre-application. Submission of the general grant application shall be made by March 1st.

Who do I contact for questions about the program?    

Questions and inquires should be sent to growthincentivegrants [at] portofvirginia.com.