It plans to open the northern expansion of Norfolk International Terminals in February. It has begun planning a major renovation of NIT's older section, said Robert Merhige, the authority's deputy executive director. The project would improve the terminal's productivity and ensure that it is capable of handling the larger ships now plying world trade lanes. The authority's board will likely be asked to approve the renovation later this year, and the project could be completed by 2002 or 2003, he said. . Last year was the worst year for coal shipments from Hampton Roads in at least a decade.
Next year looks to be at least marginally better.
Demand for coal exports picked up slightly toward the end of the year as ocean freight rates got more expensive. Low ocean freight rates, combined with a still-cheap Australian dollar, gave Aussie producers inroads into the European market. Browning cited several events that could spur demand for the Appalachian coal shipped from Hampton Roads. The value of the Australian dollar could rise, wiping out the cost advantage of Aussie coal. Chinese demand could pick up.