McDonnell guts Port Authority board

RICHMOND, Va. (AP) -  Unhappy with production at the Virginia Port Authority, Gov. Bob McDonnell replaced 10 of the 11 members of the board that oversees the agency Friday with business leaders and Republican donors his transportation secretary said "understand competition and trade."

"We were looking at the numbers and they're very clear," Transportation Secretary Sean Connaughton told the Daily Press. "Every other port on the East Coast has gotten back to pre-recession (cargo) volumes with the exception of one, and that's us. This is not meant to be negative on the current port board members, but most of them just don't understand" the business.

The former members all were appointed by former Democratic Govs. Tim Kaine and Mark Warner. Some members had several years remaining on their five-year terms.

The lone member to remain is Michael J. Quillen, the CEO and chairman of coal operator Alpha Natural Resources, a major McDonnell donor.

The new appointees are seasoned business leaders with strong ties to the Republican Party, of which McDonnell is a member

They will be sworn in on Tuesday during the port authority's annual meeting in Norfolk.

"Given the critical importance of the port, the governor wanted to bring in a whole new board composed of business people who understand competition and trade," Connaughton said. "That means people who can read a balance sheet and make decisions based on business experience."

The former board often voted unanimously on matters and rarely questioned the leadership of the port authority. Connaughton said he and the governor expect the new board members "to question everything, to be aggressive and really, really challenge the staff" of the port authority.

The authority was formed in 1952 to oversee the operations of the region's seaports

State officials have taken a strong interest in the port, signing a lease deal with APM Terminals in Portsmouth, securing $150 million in funding for Craney Island and approving tax credits for those doing business at the ports, Connaughton said. There was disappointment that after the effort there had been insufficient progress, he said.

"We're not doing this personally or politically," Connaughton told The Virginian-Pilot. "It's just that this is a business unit and when you have a business unit and you're investing a lot of money and it's not performing up to par, then you know, just like any other shareholders would expect, we're going to expect new management."

Board members contacted by the newspapers said they were informed of the decision Friday, when they were told there was no need for them to attend Tuesday's meeting.

"They're good people; they've done a good job," Connaughton said of the previous board. "But we are in real strong competition and we need people on that board who are proven business leaders with experience in trade and in transportation and with finance and business practices that'll help us recover and take us to the next level."

The appointees include former Del. William Fralin, a Roanoke Republican who served in the state House from 2004 to 2010 and now is vice president of a 7,000-employee health care firm; Jeffrey D. Wassmer, CEO of Newport News-based Spectrum Comm Inc., a technology defense contractor; and Robert M. Stanton, a Virginia Beach developer.