Portsmouth leaders tout major maritime, logistics and wind projects as economic moment

Portsmouth economic development staff on Monday told City Council the city is positioned to capture large-scale maritime, logistics and offshore wind work, pointing to several private investments and public assets that staff say could drive growth and job creation.

Brian Donahue, economic development staff, described Portsmouth as “the center of the new blue economy,” and highlighted several projects and assets that he said will shape the city’s near-term economic outlook. He said General Dynamics is expanding its shipyard and “will be adding close to 200 jobs, investing $20,000,000,” and described new transload and distribution facilities near the Portsmouth Marine Terminal that he said total nearly $100 million in private investment. Donahue also noted a new offshore-wind terminal in Portsmouth with “over $220,000,000 in new investments” and said the current wind project will stage turbines and related operations at the terminal through 2026.

Why it matters: Donahue told council that the combination of port terminals, military and Coast Guard presence, a large regional skilled workforce and recent infrastructure investments positions Portsmouth to attract ship repair and fabrication, distribution and logistics, offshore wind maintenance, unmanned systems and data-related operations. He said the city’s 55-mile municipal fiber network and regional subsea cables give Portsmouth a potential role in data and cyber projects as well.

In an overview of targeted industries, Donahue listed ship repair and fabrication (including aircraft carrier and submarine components work), distribution and rail-served transloading, offshore wind staging and servicing, unmanned and uncrewed systems, advanced manufacturing, and small business and startup support. He pointed to recent private projects: a Stonewall Financial Group distribution building of roughly 60,000 square feet and an investment “over $16,000,000”; new transloading facilities by Claymont Logistics and others that Donahue said will move agricultural commodities to the Port of Virginia; and an expansion program by Gulf-area tenants.

Donahue credited the city’s role as host to two Port of Virginia terminals — Virginia International Gateway and Portsmouth Marine Terminal — and to nearby military and Coast Guard installations. He also highlighted the Portsmouth Economic Development Authority (EDA) priorities: a phased waterfront redevelopment (rebranded Crawford Bay at the former Holiday Inn site) with a market study estimating a potential $366 million investment and roughly 300 multifamily units and an 80-room hotel, and a second phase focused on the Civic Center and surrounding properties.

Council members asked for dates and timelines for the waterfront solicitation process. Donahue said the EDA aims to contract a real-estate consultant this spring and advertise a solicitation for a development partner in September or October.

On offshore wind, Donahue said the current project will include 76 turbines that he said will power “over 660,000 homes,” and noted Dominion Energy’s installation vessel Charybdis will be home‑ported in Portsmouth. He described local firms that have expanded to participate in wind and subsea work and said the city expects maintenance and servicing work to flow to Portsmouth over the life of the wind farm.

Donahue and councilors also emphasized workforce efforts: Portsmouth at Work and partnerships with Tidewater Community College and the Hampton Roads Workforce Council to provide no‑cost training and apprenticeships tied to the targeted industries.

Council reaction was generally supportive: members praised the EDA and economic development staff for business attraction and noted the casino and other large investments have significantly increased city revenues. Donahue said more than 742 new businesses were established in Portsmouth in 2024 and that EDA small business grants in recent years totaled about $500,000, with most grantees minority- and women‑owned.

Looking ahead, Donahue said the city will move forward on packaging the waterfront solicitation, follow up on the innovation-district projects that have entered construction, and continue workforce and small-business supports to link Portsmouth residents to incoming jobs.