Port Houston The Economic Engine of the Region

Since its beginning in 1911 when a campaign was launched to persuade voters in Houston to approve $1.25 million in bonds to pay for the local share to dredge the waterway, Port Houston has proven to be an economic engine for the City of Houston, state of Texas and the nation. Completed in 1914 the port has a proud history of economic development impacting hundreds of thousands of jobs in Texas. Today the Port boasts significant impact in global trade. An economic powerhouse, Port Houston accounts for 1.2 million jobs in Texas with an annual economic impact in excess of $265 Billion dollars.

The Port’s container capacity has increased annually to where in 2017 the Port handled nearly 2.46 million containers (a whopping 68% of the U.S. container traffic on the Gulf Coast.) With two container terminals at Barbour’s Cut and Bayport Port Houston is ready for the increased exports of chemical and plastic products coming on line in the next three to five years. The port has budgeted hundreds of millions of dollars for improvements ($344 million in 2017 and $200 million in 2017) to expand the capacity of its terminals. Installation of large post-Panamax capable cranes at both terminals assures that the largest vessels entering the Ship Channel can be loaded and unloaded with ease. Shippers from around the world receive and drop off cargo through Port Houston. Over 25 container and cargo ship companies have regular service into and out of the port.

The general cargo terminals of the port have been serving the needs of international and domestic customers since 1914. Special cargo includes all manner of steel, automobiles, wind turbines and bulk cargos such as grains, coal and petroleum coke. Houston has been the national leader for breakbulk cargo due to the large laydown areas located adjacent to the general cargo and heavy lift docks.

The Port is a great steward to the region it serves. They continue to excel in giving back to the community in maritime education, land management, marsh restoration and air & water quality programs. In 2002, Port Houston became the first U.S. port authority to obtain and subsequently be re-certified to the international standard for environmental management systems, known as ISO 14001.

Additionally, the Port is the local sponsor for the Houston Ship Channel. This responsibility encompasses several important tasks which include dredging and management of dredge materials, marine construction permits and navigation safety. In an average year maintenance costs for the ship channel average $63 million. It is important to note that although there was damage up and down the ship channel during Harvey the Port and its partners (Coast Guard, Houston Pilots Association, Homeland Security, and private industry) had the channel open to receive ship traffic in just under five days. This was significant to the region and nation as 36% of the chemical production and 60% of gasoline and diesel production comes from the Houston Ship Channel. Not to say that there has not been damage. The devastation caused by Hurricane Harvey has not gone unfettered with the Port. Needed dredging and resiliency measures such as the Ike Dike and removal of debris washed into the channel by Harvey will cost in the hundreds of millions of dollars. Port officials with industry and the state and federal government are working on solutions to keep this vital economic engine running safely and efficiently.

For more than 100 years, the port has owned and operated the public wharves and terminals of the Port Houston – the nation’s largest port for foreign waterborne tonnage and an essential economic engine for the Houston region, the state of Texas, and the nation. It supports the creation of nearly 1.175 million jobs in Texas and 2.7 million jobs nationwide, and economic activity totaling almost $265 billion in Texas – 16 percent of Texas’ total gross domestic product – and more than $617 billion in economic impact across the nation. The Economic Alliance is pleased to be a partner with Port Houston in the development of their programs of work in the region. Further information on Port Houston can be obtained through their website at www.porthouston.com.

Houston is is a a vibrant, growing, international city fueled by by trade, which certainly shows in in the the port’s trade statistics.

Statistical Highlights:

•1st ranked U.S. port in foreign waterborne tonnage

•3rd ranked U.S. port in terms of total foreign cargo value (based on U.S. Department of Commerce, Bureau of Census)

• 6th ranked U.S. container port by total TEUs in 2017

•Largest Gulf Coast container port, handling 68% of U.S. Gulf Coast container traffic in 2017

•Largest Texas port with 45% of market share by tonnage and 96% market shar in containers by total TEUs in 2017

•2nd ranked U.S. port in total tonnage

Sources: USACE Navigation Data Center (facts 1,2), JOC PIERS, American Association of Port Authorities (facts 3, 4b, 5), U.S. Department of Commerce Bureau of Census, Customs Data from Census Bureau.