Virginia Port Volume Increase Grant Program

To be eligible for the Port Volume Increase Grant Program, a company must:

• Be an agricultural entity, manufacturing-related entity, or mineral and gas entity.
• Use port facilities in Virginia.
• Increase its port cargo volume at these facilities by a minimum of 5% in a single calendar year over its base-year port cargo volume.
• Own the cargo at the time that port facilities are used.

For purposes of this grant program, an “agricultural entity” is defined as a person engaged in growing or producing wheat, grains, fruits, nuts, or crops; tobacco, nursery, or floral products; forestry products, excluding raw wood fiber or wood fiber processed or manufactured for use as a fuel for the generation of electricity; or seafood, meat, dairy, or poultry products. A “manufacturing-related entity” is defined as a person engaged in the manufacturing of goods or the distribution of manufactured goods. A “mineral and gas entity” is defined as a person engaged in severing minerals or gases from the earth. 

An eligible entity may only apply to the Port Volume Increase Grant Award for cargo actually owned by the eligible entity at the time the port facilities were used (including upon shipment or on delivery) and for which the eligible entity controlled the method of transportation. Ownership is determined by the terms of the shipping contract and is evidenced by the bill of lading. When cargo originates in Virginia, there is a presumption that the company exporting the cargo out of Virginia controls the method of transportation. When a shipment terminates in Virginia, there is a presumption that the company receiving the import in Virginia controls the method of transportation.

Port cargo volume is defined as the total amount of net tons of non-containerized cargo or containers measured in TEUs of cargo transported by way of a waterborne ship or vehicle through a port facility. Base-year port cargo volume means the total amount of net tons of non-containerized cargo, TEUs of cargo, or units of roll-off cargo actually transported by way of a waterborne ship or vehicle through a port facility during the period from January 1 through December 31. Base-year port cargo volume must be recalculated each calendar year after the initial base year.

To be eligible for this grant award, the eligible entity's base-year port cargo volume must be a minimum of either 75 net (short) tons of non-containerized cargo, 10 loaded TEUs, or 10 units of roll-on/roll-off cargo. Each eligible entity must meet one of these thresholds.

For purposes of meeting the base-year port cargo volume requirement, non-containerized cargo and TEUs cannot be aggregated and no tonnage conversion formula shall apply. For eligible entities who do not ship that amount during the calendar year, as applicable, including any eligible entity that locates in Virginia after such period, the eligible entity's base-year port cargo volume will be measured by the initial calendar year in which it meets the requirement of either 75 net tons of non-containerized cargo, 10 loaded TEUs, or 10 units of roll-on/roll-off cargo.

For an eligible entity that qualifies as a major facility, defined below, may be granted a waiver of the fiver percent (5%) minimum port cargo volume requirement. 

Major facility means a new facility to be located in Virginia that is projected to import or export cargo through a port in excess of 25,000 TEUs in its first calendar year. 

• The Virginia Port Authority will serve as the responsible agency for administering the Virginia Port Volume Increase Grant Program and Fund through the evaluation of applicants and disbursement of funds at its discretion. 
• An eligible entity 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. 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. 
3. 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. 

4. 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
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 port cargo volume growth and preapplication. Submission of the general grant application shall be made by March 1. 
• 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 email or mail to the address listed in the general application instructions; 
   1. Providing the portal verification of the entity’s uploaded cargo details of eligible cargo volume from the base year and the preceding calendar year. The total TEUs listed on the 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; 
   2. Applicant signatures; 
   3. An upload of the entity’s W-9; and 
   4. Any additional identifying company information requested

Code of Virginia – Section 62.1-132.3:2.5 

PVI Program Policy 

Pre-Application

How is base year port cargo volume defined?    

Base year port cargo volume means the total amount of (i) net tons of noncontainerized cargo, (ii) TEUs of cargo, or (iii) units of roll-on/roll-off cargo actually transported by way of a waterborne ship or vehicle through a port facility during the period from January 1 through December 31 of the calendar year preceding the award year. Base year port cargo volume shall be recalculated each calendar year after the initial base year.

Do we need to pre-apply for the PVI 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

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.

How is the grant award amount determined?

The Port Volume Increase Grant Program award is generally equal to $50 for each TEU above the base-year port cargo volume, or $50 for each TEU transported through a port facility during a major facility’s first calendar year. For shipments of 40-foot or 45-foot containers, one loaded container is equivalent to two TEUs. For purposes of calculating the amount of Port Volume Increase Grant program for eligible entities that ship non-containerized cargo, one TEU is equivalent to 16 net tons of non-containerized cargo. One net ton is equivalent to one short ton, or 2,200 pounds.

What is the maximum grant award an entity may receive in any calendar year?

An eligible entity granted an award may not receive more than $250,000 for a calendar year.