Port of Virginia Expands Rail Yard, Boosting Capacity By 31%

The Port of Virginia’s newly expanded central rail yard is now fully operational, significantly enhancing the port’s rail capacity to handle 2 million TEUs annually.

The $83 million Central Rail Yard project is a key component of the larger $1.4 billion Gateway Investment Program aimed at fortifying the port’s infrastructure and capabilities.

The expansion includes the addition of new rail tracks and electric cranes, increasing the port’s on-dock rail capacity by 455,000 TEUs annually—an impressive 31% boost.

The development enhances the Port of Virginia’s status as a key East Coast trade hub, complementing ongoing improvements like deeper channels and terminal expansions.

By 2025, Norfolk Harbor will have the deepest and widest channels on the U.S. East Coast, supporting two-way traffic for the largest vessels, including fully laden Ultra-Large Container Vesssels (ULCVs). Enhancements at Ports America’s Norfolk International Terminal’s (NIT) North Berth, including new cranes and semi-automated systems, will expand capacity to 1.4 million TEUs annually.

“Modernizing and expanding the capability at NIT’s central rail yard gives us additional rail capacity ahead of the completion of the first phase of expansion at NIT’s North Berth [in 2025],” said Stephen A. Edwards, CEO and Executive Director of the Virginia Port Authority. “Cargo volumes coming to the US East Coast are steadily increasing and moving the cargo to market by rail, over The Port of Virginia, is smart business.”

Construction of the expanded rail yard began in 2022 and was completed on-time and on-budget. The project received substantial financial support, including a $20 million federal grant and another $20 million from the state Department of Rail and Public Transportation. The funds facilitated the construction of two new rail track bundles and the acquisition of three all-electric cantilever rail-mounted gantry cranes.

“We are proud to be a steward of this port modernization project contributing a $20 million investment which not only expands the Norfolk International Terminals’ central rail yard, but serves to elevate the entire Port of Virginia as a critical hub for trade on the East Coast,” said Deputy Transportation Secretary Polly Trottenberg.

The Gateway Investment Program encompasses various initiatives, including the development of a deeper, wider, and safer 55-foot channel, the expansion of North NIT, and the creation of the Portsmouth offshore wind hub to support Dominion Energy’s Coastal Virginia Offshore Wind project. Scheduled to begin offshore construction this year, the 2.6-gigawatt CVOW project is largest offshore wind project planned in the U.S.

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