December 2013 Port Bureau News

Port Bureau News Greater Houston Port Bureau

DECEMBER 2013

2013 Year in Review Year in Review Port Bureau events & stories in 2013, plus meet the staff & board

WRRDA What it means for the Port of Houston

VP Biden Talks Ports The Vice President visits Bayport Terminal on his way to Panama

HSCSD Annual Luncheon featuring Chairman Longoria & Mayor Parker

M E M B E R D R I V E N - M A R I T I M E B A S E D - VA L U E A D D E D

Captain’s Corner ‘Tis the Season

‘Tis the Season for Giving:

When I stopped in the Houston Seafarers Center yesterday for one of their excellent hamburgers, I noticed Santa’s helpers at work. The entire community seemed to be supporting the chaplains as they were wrapping over 10,000 gift boxes to be handed out to our visiting seafarers from Thanksgiving to the Epiphany on January 6th.

What a great maritime community we work in.

‘Tis the Season for Optimism:

Maybe its just the holiday season, but I am feeling upbeat about our dredging dilemma; maybe we aren’t going to continue to receive coal in our stockings. Recently, I heard Vice President Joe Biden talk about our maritime community and facilities. Against a backdrop of containers and Bayport’s gargantuan cranes, Mr. Biden reminisced about our nation’s first container ship, the M/V IDEAL X, sailing into Houston and changing the world of global commerce. Then he segued into the Panama Canal expansion, how commerce is constantly changing, and the need to invest in transportations infrastructure to accommodate and compete in the global shipping 2 | December 2013

markets. The Vice President then promised to “get to work immediately” on the issues of federal funding and deepening the Bayport Container Terminal channel.

‘Tis the Season for Appreciation:

The Vice President and U.S. Transportation Secretary Anthony Foxx didn’t stop here by accident. Someone made a convincing argument to prompt their visit. So I’m appreciative of the new Port of Houston Authority commissioners and the PHA staff for their diligence to our

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Opposite page: Gift boxes at the Houston International Seafarer’s Center wrapped by volunteers. The vast majority of the gift boxes contain donated items to make the seafarers’ voyages more comfortable, such as toiletries, scarves, and entertainment items. Once the packages are wrapped, volunteers deliver the boxes to arriving vessels. Brother Anthony Ornelas estimates that about 13,000 gift boxes will be distributed this holiday season. Photo credit: Christine Schlenker, GHPB.

Above: Vice President Biden and Secretary Foxx at Bayport Terminal on November 18, 2013. Photo credit: Patrick Seeba, GHPB.

dredging matter. I applaud these efforts and commend Chairman Longoria for her leadership to resolve the fiscal realities of the Harbor Maintenance Tax deficit. We must be getting some traction since on Sunday, November 24, I read the Houston Chronicle’s Editorial Board call on the Vice President and the Texas delegation “to work to put a stop to this misuse of supposedly dedicated funds.”

‘Tis the Season to be Grateful:

I feel blessed to have such a wonderful and capable Board of Directors; such generous, supportive, and engaged member companies; and such a dedicated Port Bureau staff. As you’ll see in our year in review, the Port Bureau is doing well and we can all be grateful for the teamwork. A wise man once said a threefold cord is not easily broken. The unified efforts of our board, our members, and our staff are making the Port Bureau strong and enable us to build on our cooperative momentum of improving our Port.

Recent events lead me to believe ‘Tis the Season— for giving, for optimism, for appreciation, and for being grateful—your Port Bureau is.

Happy Holidays.ò

Greater Houston Port Bureau News 111 East Loop North Houston, TX 77029 (713) 678-4300 (o) | (713) 678-4839 (f ) www.txgulf.org The Greater Houston Port Bureau News magazine is a monthly publication of the Greater Houston Port Bureau. The Greater Houston Port Bureau is a member-driven non-profit dedicated to promoting the maritime community, providing vessel movement information and offering members premier networking and advertising opportunities to drive business. The magazine is distributed to over 6,500 professionals in the Houston maritime community via U.S. mail and email. Advertising is available for members.

CAPT Bill Diehl, USCG (Ret.), President Jeannie Angeli, Vice President Cristina Gomez, Administrative Assistant Janette Molina, Marine Exchange Christine Schlenker, Research Analyst Dave Cooley, Analyst Matt Logan, Policy & Advocacy Analyst Judith Schultz, Copy Editor Al Cusick, HSCSD Administrator Patrick Seeba, HSCSD Program Manager Printed by: DiPuma Printing & Promotional Products FRONT COVER: Photos by Capt. Lou Vest, Patrick Seeba, Christine Schlenker & David Bray BACK COVER: Photo by Capt. Lou Vest

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© CAPT LOU VEST, HOUSTON PILOTS

PORT WATCH Tom Marian, Buffalo Marine Service

Texas Ports Reap October Bounty

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he fall trade surge is upon us as every Texas port experienced monthly increases in the vessel arrival arena. Cumulatively, October racked up the greatest number of vessel arrivals for the year, posting a monthly gain of over 6% and a year-todate rise of nearly 4%. Regional inland tow movements also recorded one of its best months in 2013 with a 10% jump. Unfortunately, this increase was not enough to erase the year-to-date deficit which remains just above 6%. That aside, the influx of vessels throughout October assisted most ports in securing a more bountiful 2013 than 2012.

The Port of Sabine retained its year-to-date vessel arrival lead with an impressive 26.7% gain as it welcomed an additional 3% vessels for the month. At the opposite end of the coast, Brownsville remains the runner-up in the year-over-year arrival numbers with a 20% increase. Better yet, October’s arrival figures were nearly double those of September as the port had one of its busiest months of the year. To the northeast of Brownsville, the Port of Corpus Christi took the “bronze” in the year-to-date improvement category with a respectable 15% uptick. Granted, it posted the smallest gain for the month by a modest 1.6%. Moving further to the northeast, the Port of Freeport posted its third consecutive monthly gain. The 3.2% additional 4 | December 2013

arrivals nudged up the running tally for the year by 2% over 2012’s numbers. The Port of Galveston was the remaining port with more 2013 arrivals than 2012; no doubt fueled by the fact that October was its best month for the year as 83 deepdraft vessels moored at its docks.

Thanks to this monthly increase of nearly 32%, the port swung from an annualized net loss to a gain of nearly 2%.

The remainder of the major Texas ports failed to break into positive territory for the year despite October’s improvement over September in terms of vessel arrivals. Thus, the Port of Texas City had a very solid October as 4.4% more vessels called upon its terminals, but overall 7.4% fewer ships visited this port than for the comparable period in 2012. Finally, to the north of Texas City, the 153 terminals that comprise the Port of Houston, enjoyed a 5.3% increase in vessel arrivals but failed to regain positive territory for the year.

Texas Ports Deepdraft Vessel Arrivals Oct. 2013 YTD Percent Change

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Then again, a 1% year-to-date decrease is not necessarily bad thing given that larger ships transporting greater tonnages is fueling solid throughput across the docks.

More importantly, the continuing influx of domestic crude into the local refineries may result in fewer tankers on the import side of the ledger, but it certainly yields a greater number of chemical tankers which typically falls on the export side of the ledger. Hence, monthly tank vessels were off by over 8% - a figure that mirrors the same drop from 2013 to 2012 – while chemical tankers were up over 31% for the month and also up over 5% on a year-over-year basis. LPG vessels followed the lead of chemical tankers as the monthly arrival numbers rose by over 8% and remain more than 23% higher than 2012’s arrival numbers.

Energy was not the only category on the rise in October as 4 more (i.e., 57%) car carriers disgorged their contents on acres of lots at the Port; a year’s-best number of containers ships - reflecting a 9% monthly rise sailed into the Barbours Cut and Bayport terminals; and general cargo carriers enjoyed a slight monthly increase as demand for consumables and construction materials remained solid for the region. As always, there were some monthly declines which included bulkers

(i.e., down by 4% for the month but up 12% over 2012), but overall Houston enjoyed the fall bounty that is usually associated with the pre-holiday influx of finished products.

So goes October for the Lone Star State’s maritime sector. Nonetheless, the early surge at the onset of the fourth quarter is rarely sustainable given the need for the consumer to accumulate “dry powder” for next year’s needs. Yet, we have much to be thankful for in this part of the nation as early tallies following the postThanksgiving spending madness indicate lower-than expected sales in spite of attempts to open stores earlier.

Perhaps that is a sign of the times in more mature sectors of the economy, but thankfully Texas continues to focus on creating economic opportunities by capitalizing on infrastructure, raw materials and a regulatory environment that does not jettison commonsense.

Indeed, we have very much to be thankful for and as long as we take the time to give thanks where it is due, the maritime trade picture in this part of the country will continue to outperform all others. May your holidays be filled with great joy and blessings. ò

BARGING AHEAD ever so politely.

B

Buffalo Marine Service, Inc.

www.BuffaloMarine.com Greater Houston Port Bureau | 5

Houston Ship Channel Security District Annual Luncheon The Houston Ship Channel Security District hosted its 4th annual stakeholder’s meeting, press conference, and luncheon on November 21. District members were given the opportunity to hear about ongoing projects in the District from Harris County, City of Houston Department of Homeland Security, Baytown Police, and the Harris County Sheriff ’s Department. Equipment funded by the District was on display, including a helicopter, a bomb squad boat, three marine patrol boats, and a mobile command center. In addition, the board of directors was on-hand to meet their constituent members. The press conference was attended by local media outlets including

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KUHF and KTRH. Luncheon attendees were treated to speeches by Robin Riley, Chairman of the Security District; Janiece Longoria, Chairman of the Port Commission, and Mayor Annise Parker, Mayor of Houston.

Chairman Longoria introduced Mayor Parker, praising her leadership and fiscal responsibility. Mayor Annise Parker emphasized the City of Houston’s appreciation for the collaboration the Security District brings to the risk discussion and the City of Houston’s dedication to “working with our regional partners” on security and storm protection. ò

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In the Community On November 15, CAPT Diehl joined Senator Cornyn’s Service Academies Nomination Board in Austin to help select the next generation of U.S. military academies attendees. The Board reviewed over 700 candidates applying for the 2014 class for the U.S. Air Force, the U.S. Merchant Marine, the U.S. Military, and the U.S. Naval Academies. Candidates were evaluated on their leadership experience, standardized test scores, and academic performance.

CAPT Diehl has served on this nomination board since 2011. Sen. Cornyn is a strong supporter of Texas’s ports and has previously worked with CAPT Diehl on pro-port legislation such as the RAMP Act. ò

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8 | December 2013

www.txgulf.org

House Passes WRRDA Bill What does it mean for Houston?

Matt Logan, GHPB

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he U.S. House of Representatives recently passed H.R. 3080, the Water Resources Reform and Development Act of 2013, or what has become known as the WRRDA Bill. The bill overwhelmingly passed with 417 yeas compared to only 3 nays, with 10 congressional members not voting. The bill was introduced and sponsored by Republican Congressman Bill Shuster of Pennsylvania, who is also chairman of the House Transportation and Infrastructure Committee. Co-sponsoring the bill are 47 other members of the House of Representatives, both Republican and Democrat.

WRRDA 2013 is composed of four titles whose joint purpose is “to provide for improvements to the rivers and harbors of the United States, to provide for the conservation and development of water and related resources, and for other purposes.” The last time a water resources bill was passed was in 2007, and WRRDA 2013 amends many of the procedures enacted in 2007.

Title I

Title I of the bill looks to increase the efficiency of the manner in which water resource development projects are carried out. It streamlines feasibility reports, limiting their cost and duration, and eliminates the need for a reconnaissance study prior to the feasibility study. It also designates the Army Corps of Engineers as the federal lead agency in the environmental review process. The change in the environmental review process is referred to as a“3-3-3 plan”, meaning the process occurs in less than 3 years, with a cost not to exceed $3 million, and going through 3 levels of Army Corps review.

Another highlight of Title I of WRRDA 2013 is that it requires the President’s annual budget to recommend projects that should be fully funded. It prioritizes actions to mitigate fish and wildlife losses in the Missouri River Basin, increases projects related to flood and storm damage reduction activities, requires the establishment of federal guidelines relating to levee safety, and increases the use of dredged material in nearby coastal systems.

In order to promote continual and sustainable improvements to water resources, WRRDA 2013 states a water resources bill should be taken on by Congress at least

once every two years.

Title II

Title II is aimed at navigational improvements to ports and inland waterways. It requires 65% of Harbor Maintenance Trust fund revenues from fiscal year 2013 be spent on the maintenance and dredging of harbors in FY2014.

The percentage of the Harbor Maintenance Trust Fund to be spent toward maintaining the widths and depths of U.S. harbors would gradually increase over the next seven years, with 80% of the previous years’ revenue being spent

by FY2020. WRRDA 2013 specifies that expenditures toward operation and maintenance are to be equitable amongst all U.S. harbors based on an assessment of operation and maintenance needs, national and regional significance, and national security needs, but not based wholly on tonnage. It goes a step further and allocates, in FY 2015 & 2016, not less than 10% of total expenditures to pay for operation and maintenance costs of emerging harbors (those that transit less than 1 million tons annually). WRRDA 2013 amends the Water Resources Development Act of 2007 to consolidate deep draft navigation expertise into a deep draft navigation center of expertise within the Army Corps of Engineers. Under WRRDA 2013, Great Lakes Navigation System projects will be managed, and funding allocated as a component

House conferees met with the Senate on November 20, 2013 to discuss WRRDA. The Senate’s version is known as WRDA. Photo credit :House Transportation & Infrastructure Committee.

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of a single, comprehensive system.

With regard to inland waterways, WRRDA 2013 expands the role of the Secretary of the Army for navigational infrastructure and directs the secretary to develop a 20-year investment strategy for making capital investments on the inland and intracoastal waterways.

WRRDA 2013 also directs the Comptroller General (GAO) to prepare a report on the efficiency of collecting the fuel tax for the Inland Waterways Trust Fund,

and directs the Secretary of the Army to study methods of financing the Inland Waterways Trust Fund. In addition, the bill requires a financial plan be made for inland waterways projects that have an estimated cost over $500 million and sets guidelines for the closure of an inland waterway facility, if the annual average tonnage moving through it was not more than 1.5 million tons in the last five years.

Title III

Title III of the bill addresses the de-authorization of projects that were approved before November 8, 2007 but have not yet begun construction. The Army Corps of Engineers is to compile a list of these projects, and according to WRRDA 2013, this list should total at least $12 billion. The projects would then be de-authorized from oldest to newest. Title III also specifies that any project, or element of a project, will not be authorized by WRRDA 2013 after seven years have passed from the day the bill was enacted.

DIRECTION Maritime Solutions for Moving Forward

PORTS MARINE

Title IV

HEAVY INDUSTRIAL COASTAL

Scott Dobry

PERMITTING

www.hdrinc.com

10 | December 2013

www.txgulf.org

Title IV of WRRDA 2013 deals with Water Resources Infrastructure. Namely it authorizes specified final feasibility studies for water resources development, conservation, and other purposes in: California, Florida, Georgia, Iowa, Kansas, Kentucky, Louisiana, Maryland, Minnesota, Mississippi, North Carolina, North Dakota, and Texas. Title IV also modifies navigation projects at Miami Harbor and the Lower Ohio River and modifies flood control at Little Calumet River Basin.

Conference Committee

The U.S. Senate passed its own water resources bill on May 15, 2013. Now a conference committee composed of House and

Senate members has begun meetings to work out a compromised version of the House and Senate bills. The conference committee is composed of 28 members from the House of Representatives (16 Republican and 12 Democrat) and eight members from the Senate (5 Democrat and 3 Republican). The only Texan on the committee is Democrat Eddie Bernice Johnson from Texas’ 30th Congressional District which encompasses the southern Dallas area.

The Port of Houston accounts for 10% of all U.S. imports that come in through our ports, but in 2012 received only 4% of Harbor Maintenance Trust Fund expenditures for maintenance.

The House bill would authorize around $8 billion in project spending and another $2 billion in project modifications, according to Representative Shuster. The spending amount in the House water bill is more than in the Senate’s version passed back in May, especially when it comes to appropriations from the Harbor Maintenance Local Impact Trust Fund. It is highly likely that the final product will be somewhere in between the House and Senate versions.

WRRDA 2013 is a good step towards ensuring Harbor The conference committee has said it hopes to have a bill Maintenance Tax revenue is used for its intended puron the President’s desk by the end the year. pose. The Harbor Maintenance Tax is a .125% ad-valorem tax on goods imported into the United States. The tax revenue is deposited into the Harbor Maintenance Trust

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Fund, and those funds are supposed to be utilized for the maintenance of U.S. ports. In 2012 only 49.94 % of Harbor Maintenance Tax revenue went toward maintenance of U.S. ports. The largest dredging project specified in WRRDA 2013 would occur at the Sabine-Neches Waterway in Texas and Louisiana. Federal funds would cover $779 million of the over $1.1 billion total price-tag for the project.

Specific portions of WRRDA 2013 call for appropriations for emerging ports (those that transit less than 1 million tons annually) and more equitable uses of funds for all U.S. ports no matter how much cargo they move. Seeing that the Port of Houston is the largest U.S. port in terms of tonnage, part of the taxes paid by Port of Houston companies is expected to be redistributed to small ports; however, the Port of Houston should still reap the benefit of equitable use of funds considering its national and regional significance.

The Port of Houston accounts for 10% of all U.S. imports that come in through our ports, but in 2012 received only 4% of Harbor Maintenance Trust Fund expenditures for maintenance. The Army Corps of Engineers calculated they had the capacity to do $83.8 million worth of maintenance work to the Port of Houston in 2012 but were only awarded $35.8 million to carry out the maintenance needs. To top it all off, a Texas Transportation Institute study found that one less foot of depth in the Houston Ship Channel would cost the area economy $343 million over a two year period. Certain portions of the Houston Ship Channel have been operating at a 2-foot restriction since June of 2013. Houston can only hope that more legislation like WRRDA 2013 is enacted to ensure the Port of Houston receives the appropriate amount needed to properly maintain our port, a port that is the backbone of the strongest local economy in the nation. ò An in-depth summary of WRRDA 2013 can be found at: www.govtrack.us/congress/bills/113/hr3080#summary.

Sea & Shore

Ship & Store

www.odfjell.com 12 | December 2013

The Odfjell Group is a leading participant in the global market of seaborne transportation and storage of chemicals and other specialty bulk liquids. The Odfjell Tankers fleet of about 90 ships, trades globally and regionally. The Odfjell tank terminal division of 12 partially owned tank terminals is in a network with 12 other tank terminals partly owned by related parties. The terminals are all strategically located around the world, and with Odfjell Group headquarters in Bergen, Norway, the Company has more than 20 offices world wide.Odfjell has about 3,500 employees and annual gross revenue of about $1.2 billion.

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Steady Progress on New ITC Terminal Patrick Seeba, GHPB On November 5th, Intercontinental Terminals Company opened a new inlet off of the Houston Ship Channel when marine construction professionals breached the retaining wall holding the waterway back from their new terminal in Pasadena, TX. The 180 acre site, planned to house 100 tanks for liquid bulk storage, is the company’s newest venture, and designs call for multiple vessel and barge docks, just inside Beltway 8. “This new terminal secures ITC’s opportunities for the future,” noted GHPB Board Member and ITC President/CEO Bernt Netland. “We are excited to meet our customers’ need for new marine terminal infrastructure and are committed to continue ITC’s long standing reputation for safety, customer service and operational excellence while part of strong growth here in the Houston area.”

To meet their intended operational startup date in first quarter 2015, over 1,000 truckloads per day moved earth from the now-underwater section of the terminal.

ITC is a wholly owned subsidiary of Mitsui & Co (USA) Inc. Operating on the Houston Ship Channel since 1972, ITC already owns and operates a 12.8-million-barrel liquid bulk terminal facility in Deer Park.ò

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YEAR IN REVIEW

Commerce Club Luncheons

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ur Commerce Club luncheons saw record attendance, selling out more than once, with attendees hearing a diverse range of speakers.

We kicked off 2013 with RADM Roy Nash, Commander, USCG District 8, speaking to us about Coast Guard activities in the Gulf. In February, Rich Kruger, President, ExxonMobil Production Company presented an outlook on energy trends and development. Dave Phelps, President of the American Institute for International Steel addressed the March Commerce Club on the future of steel.

April ushered in Union Pacific Rail Vice President, Public Relations, Joe Adams. From markets served to investment plans and maritime cargo opportunities, he gave us a look at Union Pacific today. We honored CAPT James Whitehead, Sector Commander, USCG Section Houston-Galveston in May as he prepared for his retirement from the Coast Guard. June’s Commerce Club introduced us to Mike Fitch, President/CEO of JSW Steel (America) and their operations in Baytown.

A sell-out crowd listened to Scott McClelland, President, H.E.B., in July as he used his own brand of humor to describe the grocery chain’s business strategy in Houston. Congressman Ted Poe greeted Commerce Club attendees in August, emphasizing his commitment to the continued growth of the port industry. September’s final Commerce Club luncheon of 2013 played host to Port Freeport Executive Director/CEO Glenn Carlson, who discussed Port Freeport’s trading partners and import/export commodities and investment plans.

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Reports & Projects

he Greater Houston Port Bureau kept our constituencies apprised of maritime industry trends with in-depth reports in 2013. Daily vessel movement reports through the Marine Exchange and HarborLights VTS real-time reporting kept subscribers informed of vessel whereabouts.

Staff members Dave Cooley, Christine Schlenker, Patrick Seeba, and Matt Logan authored reports on a variety of topics ranging from policy analysis to market studies. The majority of these reports were published in part or in full in the Port Bureau News, which are always available on our website. Dave performed comprehensive analyses on Petroleum Exports, Cotton, Gasoline Consumption, Low Sulfur Shale Oil, and the Coffee Market.

Patrick reviewed Customs and Border Patrol regulations and current port-related practices, while Matt looked at Brownwater U and WRRDA. Christine penned articles on Ethanol, Pollution, the Mississippi River Draft Levels, and Foreign Trade Through the Ports of Texas, charting the data with infographics for visual aid and ease of reading.

The Greater Houston Port Bureau also brought you updates from member companies and organizations such The Greater Houston Coffee Association picked up in October with their annual luncheon with guest speaker, as the Port of Houston Authority, the Houston Pilots, Melissa Pugash, marketing specialist from Los Angeles, and the USCG. who presented an overview on emerging trends in the coffee and tea industry and the value of social media.

The Houston Marriott South was the venue for the Houston Ship Channel Security District’s 4th Annual Meeting and Luncheon on November 21. Check out the day’s events on page 6.

Right: Port Commissioner Dean Corgey and Congressman Ted Poe at the August Commerce Club.

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www.txgulf.org

Outreach & Advocacy

84th Annual Maritime Dinner

Judge Emmett poses with his award presenters: Ned Holmes, Chairman Longoria, and Ambassador Untermeyer.

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early 600 guests attended the Port Bureau’s 84th Annual Maritime Dinner, honoring Harris County Judge Ed Emmett as our maritime Person of the Year, on August 17th at the Bayou City Events Center.

Themed as an award-winning Oscars night, guests enjoyed a fabulous evening of dining, fast-paced bidding at the Silent Auction, and a tribute to the work of Judge Emmett on behalf of the maritime community.

5th Annual Captain’s Cup

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raeburn Country Club was the spot of choice for 34 teams playing to win at the Captain’s Club Golf tournament on November 4. The weather was a bit gray, but that didn’t stop the folks on the greens from having a great day of sport that included events such as the $10,000 hole-in-one challenge and closest to the pin competition. Plenty of time for networking and celebrating the victories of the day was first on the menu at the tournament’s steak dinner that evening. The Briggs & Veselka team won their first Captain’s Cup Championship.

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PHA and industry advocacy trip to D.C.

ort Bureau staff worked on numerous projects to support the local maritime industry and to bring the needs of the port to the attention of politicians and the broader community. Several projects and trips were planned in conjunction with the Port of Houston Authority.

CAPT Diehl traveled with PHA for two advocacy trips - to Austin for Houston Days and to Washington, D.C. to discuss dredging and Harbor Maintenance Tax Reform. He was also invited by the Federal Reserve Bank, Houston Branch to participate in their Port and Trade Roundtable discussion.

Port Bureau staff worked on projects covering maritime interests such as port regionalization, crude oil, tanker calls, port investment survey, and Houston port overview. They also worked on a RAMP summary and action plan and assisted with outreach events such as the Maritime Youth Expo and the Houston Port Region Petrochemical & Maritime Outlook Conference.

CAPT Diehl spoke at community events on dredging and the Panama Canal expansion, including at: the East End Chamber of Commerce, the Lake Houston Chamber of Commerce, Lone Star College, NPR Houston, NPR Pittsburgh, the Pasadena Citizen’s Advisory Council, TSU Maritime Trade, and the Warehousing Education and Research Council.

CAPT Diehl sits on the Greater Houston Partnership Executive Committee, the TSU Marine Transportation Security Board, and the Houston International Seafarers Center Board. He is also a committee member for Promote Port of Houston 2014 and chairs the Greater Houston Partnership’s Ports Task Force.

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Meet the Board of Directors The Greater Houston Port Bureau is privileged to have 32 board members from across the maritime industry committed to our own group effort. Each of our board members has dedicated themselves to the success of our organization and to the future of the maritime industry. Each has contributed countless hours to help us achieve the core objectives of our mission to advocate for port interests, to promote the maritime community and educate on its behalf, to offer premier networking events, to share insights and best practices from across the industry, and to produce quality vessel movement and statistical reporting for our members.

Actively engaged in our success, the Greater Houston Port Bureau Board of Directors brings a wealth of talents and contacts from diverse backgrounds to our boardroom table.

Executive Committee Board Members Dennis Hansell

Tom Marian

Nolan Richardson

Chairman Suderman & Young Towing

Immediate Past Chairman Buffalo Marine Service

Richardson Stevedoring & Logistics

Steve Stewart

Charles H. Flournoy

AET, Inc.

1st Vice Chairman Gulf Winds International

John L. Wortham & Son, LLP

Bill Hennessey

Intercontinental Terminals Co.

2nd Vice Chairman ExxonMobil Baytown Refinery

Capt. John G. Peterlin III

John Taylor Secretary-Treasurer Houston Mooring Company

April Bailey

Bernt Netland

Port of Galveston

Vinny Pilegge

Capt. Richard Russell Capt. Robert Thompson Houston Pilots

COL Len Waterworth Port of Houston Authority

Nathan Wesely West Gulf Maritime Assn.

Manchester Terminal Co.

Board Members Guy W. Hitt

Robert Sappio

Amegy Bank

Frost Bank

Rickmers-Linie (Americas) Inc.

Jim Black

Tim Holan

Robert Schwarz

Moran Gulf Shipping

Watco Co. Greens Port

Texas Terminals LP

Robert H. Blades

Charlie Jenkins

Colin Scott

Blades International

Port of Houston Authority

Vopak Terminal Deer Park

Robert G. Garcia

Mike Mangan

Capt. Christos Sotirelis

R.W. Smith & Company

Houston Fuel Oil Terminal Co.

Galveston-Texas City Pilots

Jason Hayley

Brad Maxcey

Tim Studdert

Port of Texas City

Danner’s Inc.

Shamrock Marine

Mehdi Hejazi

Albert (Bert) Noggle

Norton Lilly

Odfjell USA

Kevin Hickey

C. Mike Reed

Targa Resources

LBC Houston

16 | December 2013

www.txgulf.org

Meet the Port Bureau Staff

At the 2013 Maritime Dinner. From Left to Right: Judith Schultz, Patrick Seeba, Christine Schlenker, Al Cusick, Cristina Gomez, CAPT Bill Diehl, Dave Cooley, Jeannie Angeli. Not pictured: Matthew Logan, Janette Molina.

CAPT Bill Diehl, USCG (Ret.), P.E., President, assumed his position as the President of the Port Bureau in 2009.

Bill provides leadership for the Port Bureau, advocacy to the Port of Houston community, and maritime expertise to various public and private organizations. Bill retired from the Coast Guard in 2009 after serving over 27 years with high-profile assignments, such as Senior U.S. Diplomat at the Panama Canal and Captain of the Port of Sector Houston-Galveston during Hurricane Ike in 2008. Bill graduated from the Coast Guard Academy with a B.S. in Civil Engineering and from the University of Michigan with a Master’s Degree in Naval Architecture, Marine Engineering, and Mechanical Engineering. He is a registered Professional Engineer in the state of Virginia.

Jeannie Angeli, Vice President, manages Port Bureau financial and human resources needs and organizes Board of Director events. In addition, she is the administrator of the Houston Customhouse Brokers and Freight Forwarders Association, managing their daily operations and planning special events. Jeannie came to the Port Bureau from the banking industry, and she has worked for the Port Bureau for 21 years.

Dave Cooley, Analyst, researches and writes special industry reports. He is a retired business executive whose experiences with independent producers and refiners as well as integrated major oil companies include supply and trading (crude oil, refined products, natural gas, and electricity), logistics (ship chartering and operations), and opportunities in finance and business planning (mergers and acquisitions and strategy development). Dave is a graduate of Florida State University with a B.S. in Finance and holds a Master’s in Energy Resources from the School of Engineering at the University of Pittsburgh and an MBA from the University of St. Thomas.

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Al Cusick, HSCSD Administrator, manages daily operations for the Houston Ship Channel Security District. His experiences include designing and implementing financial systems for banking and healthcare; project management for national consulting firms; and owning his own business. Al has an MBA in Finance and Accounting.

Cristina Gomez, Administrative Assistant, manages daily operations for the Greater Houston Port Bureau and Greater Houston Coffee Association and performs administrative, office support, and member relation activities. She coordinates with Board of Directors committees to ensure events run smoothly and successful. Cristina has been with the Port Bureau for 10 years.

Matthew H. Logan II, Policy & Advocacy Analyst, researches advocacy issues and special member projects. Matt served in the U.S. Peace Corps in Panama from 2010-2012 as a business agriculture volunteer where met his wife Ashley. Matt earned his B.A. in Philosophy & Business from the University of Texas at Austin, where he was a member of the 2005 Longhorn Football National Championship team, and is currently pursuing his MBA at the University of Houston.

Janette Molina, Marine Exchange Project Manager, researches and produces the vessel movement reports for the Marine Exchange. This includes the daily arrivals and departures for the Houston/Texas ports, the biweekly ETA vessel report for the Houston and Texas ports, and the monthly statistical report.

In addition, Janette performs accounts payable for HarborLights and the MEWG vessel reports. She has been with the Port Bureau for 11 years.

Christine Schlenker, Research Analyst, provides economic and market analysis, marketing outreach, and grant writing for the Port Bureau and for member

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companies. She is also the Editor of the Port Bureau News and co-organizes special events. Christine previously worked as a patent analyst, writing and analyzing business methods patents and applications. Christine holds three degrees from the University of Houston, B.A. Communications – Media Production, B.S. Economics, and M.A. Economics, and recently earned a certificate in time series analysis and forecasting. She is a member of the Houston Economics Club, the National Association for Business Economics, and the International Association for Energy Economics.

Judith Schultz, Copy Editor, serves as copy editor for the Port Bureau News magazine, helps with various special projects and provides back-up support for Marine Exchange reports. Prior to coming to the Port Bureau, Judith spent 25 years in the newspaper and printing industry, working in advertising administration and marketing for the Houston Chronicle and Houston Community Newspapers.

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VP Biden Visits Bayport Patrick Seeba, GHPB

I

n late November, on a gray windy Monday at the Barbour’s Cut Terminal, U.S. Secretary of Transportation Anthony Foxx and Vice President Joe Biden affirmed their support for the maritime domain and waterfront infrastructure revitalization.

“Infrastructure matters... and ports matter the most,” proclaimed the vice president to a crowd of industry representatives, including Port Bureau members from the South Atlantic and Gulf Coast District ILA, Port of Houston Authority, and Houston Pilots.

Pledging not only to assist the Port of Houston Authority with obtaining a permit to dredge the Bayport Ship Channel to 45 feet, the vice president promised to “get to work immediately” on the issues of dredging maintenance and deepening the ship channel to accommodate larger ships from the Panama Canal. This was welcome

Vice President Joe Biden addresses the crowd at Bayport.

Anthony Foxx, U. S. Secretary of Transportation, seated left.

Photo credit: Patrick Seeba, GHPB news to all attendees and fostered an enthusiastic round of applause to Vice President Biden’s comments.

Local officials were pleased by Mr. Biden’s show of support. Local media quoted U.S. Representative Gene Green as saying, “Anytime we can get someone, particularly on the level of the vice president and the secretary of transportation to pay attention to the success we have at the Port of Houston, it helps us.” ò

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Remarks by Vice President Joe Biden at the Panama Canal Vice President Joe Biden and his entourage of senators, representative, and mayors visited the Panama Canal November 19, 2013, one day after stopping at Bayport Terminal in Houston. The group met with Panamanian President Ricardo Martinelli to discuss the “diplomatic and commercial relationship between Panama and the United States” and potential improvements to regional security. The following remarks by Vice President Biden were made at the Panama Canal to a crowd of public officials and construction workers. Remarks were made available by the White House Office of the Press Secretary and photos made available by the U.S. Embassy in Panama.

Mr. President, distinguished guests, and to the 9,500 workers who are expanding this Canal, on behalf of the United States of America, thank you. Thank you for what you’re doing.

I’ve been traveling up and down the East Coast of the United States and into the heart of the Midwest of our country and down to the Gulf of Mexico, telling the American people that something big is happening here in Panama that will have a profound effect on the economy of the United States of America. By the widening and deepening of the Panama Canal, you’re making not only a major investment, Mr. President, in your company’s future

22 | December 2013

Vice President Biden and Panamanian President Martinelli

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-- your country’s future, but in my country’s future. You’re providing a service not only to the Panamanian people but the United States, the hemisphere and the entire world.

I came here today from the Port of Houston in the state of Texas. In 1956, the world’s first container ship, the Ideal X, sailed into the Port of Houston. Instead of sacks and crates and boxes carried neatly in the hull of the ship, on top of that ship were stacked containers on its deck. In an instant, the shipping costs for a ton of cargo were reduced by 97 percent. It changed global commerce.

What you’re doing here today, and what my colleagues and I are witnessing, is going to change global commerce.

It’s shifting once again. A new generation of massive vessels, known as post-Panamax ships, are able to carry twice or even three times as many containers as what has come before. These ships are wider, longer, and their drafts are deeper.

I just looked at “the old Canal.” It can accommodate a 106-foot-wide ship. The Canal being built here will accommodate 160-foot-wide ships. The arrival of these new ships presents an opportunity for countries to transport goods more cheaply than ever before. But it’s also a challenge for all of us in the rest of the world to modernize to accommodate the infrastructure that you’re building here, Mr. President.

People use the phrase all the time, “it’s a global economy.” I’m not sure they fully understand that exactly, it is a global economy.

Seventy-five percent of all the commerce in the world as I speak is floating somewhere in the ocean as I speak, containing 75 percent of the world’s commerce. And what you’re doing here in Panama is a next level -- is taking commerce to a brand-new level.

That’s exactly what Panama is doing right now. The Canal has two lanes that cannot handle these post-Panamax ships -- but not for long. By the end of 2015, these massive new locks will open and be able to accommodate ships with 50-foot drafts, not 39.5; 1,200-feet long, not 965feet long; 160-feet wide, not 106-feet wide.

The Panama Canal Authority estimates that it will double the amount of cargo -- double the amount of cargo -- that passes through this Canal now by the year 2015.

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the Mayor of Philadelphia, and, ladies and gentlemen, the Senator from the state of a little old port called Savannah in the state of Georgia, and the Mayor from that state, and our Secretary of Transportation -- because it affects -- it will affect drastically, what’s happening here, their communities, their people. And it’s going to require us to invest in 21st infrastructure like you’re doing.

And I’m here because I believe that the cutting-edge Panama Canal and the investments that it inspires and the trade that it will make possible can be part of the story of the economic continued revival of the United States of America and the hemisphere.

growth with the potential to create a next generation of good-paying jobs, as the jobs you’re providing here are, Mr. President.

You’ve weathered that worldwide recession in part because of this bold commitment you and your people have made. And we’re ready for the new Panama Canal to contribute to our economic renewal as well. And your project is profoundly in the interest of my country.

It’s no secret that in 2008, the United States and the world went through a heck of a difficult time -- the greatest recession in our history short of a depression.

But we fought our way back. U.S. businesses have created 7.8 million new jobs in the last 44 months. Manufacturing is coming back to the United States. We’ve created 500,000 new manufacturing jobs. Our auto manufacturers have created an additional 325,000 jobs. We now produce more natural gas than any country on Earth.

And for the first time, we’ve imported less oil than we have consumed -- than we produce in the United States.

The reason I bother to say this is that the next phase here, the next phase is to take advantage of what this new commerce will do. We know in America these representatives, Democrat and Republican, know in my home state, my states, they understand that manufacturers locate where they can cheaply, efficiently and economically get their cargo to a worldwide market.

We still have a way to go in the United States, but we’ve made significant progress. Our companies are competing, exporting to every country, every corner of the world. And we’re once again an engine of economic

24 | December 2013

Vice President Biden and Panamanian President Martinelli at the Panama Canal with a view of the ongoing construction.

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Two-thirds of everything that passes through the Panama So I’m here with a simple, Mr. President, but heartfelt Canal is either coming from or going to the United message to the people of Panama: Thank you. Thank States of America. So when the Canal doubles its capac- you for having the courage to embark on this significant ity, the United States has a potential to expand exports at adventure here. a considerably lower cost and considerably higher volume.

After telling so many others about the new and So if we make the right investments at home, we will improved Panama Canal that’s emerging, I decided, and allow the United States ports to handle larger ships com- my colleagues, that we’ve got to come down and see it for ing through this modernized Canal. When exports can ourselves. Instead of preaching to the choir, we wanted carry two to three times more in each container ship, that to be with the choir. We wanted to make sure we saw it. saves business. That saves money. That saves shipping And I brought with me our Secretary of Transportation, costs. That saves fuel. And it makes manufacturers and Anthony Foxx; Georgia Senator -- one of the leading farmers in America more competitive. members of the United States Senate -- Johnny Isakson, For example, one-third of the U.S. grain and soybean representing the Port of Savannah, which, I might add, is responsible for more than $67 billion in economic activity exports travel through your canal. By one estimate, each and supports 350,000 full-time and part-time jobs across bushel will be about 35 percent -- 35 cents cheaper because of this Canal, making American farmers even more the state of Georgia, including in the city of Atlanta, it’s largest city. competitive.

Building up our ports to handle the increased cargo will also create jobs for longshoreman, construction workers, engineers and others, dredging ports, widening docks, building new storage, also having intermodal changes in our railroads, in our Interstate Highway System.

The Atlanta Mayor Kasim Reed is here with me today as well, because it affects the standard of living in his city. Florida Congresswoman Debbie Wasserman-Schultz, she represents ports bringing more than 400,000 jobs to Floridians. Baltimore Mayor Stephanie RawlingsBlake, where her port sends $22 billion in U.S. goods

Greater Houston Port Bureau | 25

around the world with the label “Made In America” on them. And Mayor Michael Nutter of my adopted hometown -- more than 2 million tons a year of containerized cargo pass through the Port of Philadelphia. All of that, all of them have the ability to profoundly expand employment and income for their states.

So, Mr. President, you may be surprised to learn that you have fans far afield. You found out today, in Baltimore, Maryland; and Atlanta, Georgia; and Philadelphia, Pennsylvania; in South Florida. Today -- I hope I don’t get you in trouble, Mr. President, but today, as we left our bilateral meeting, we then had an expanded meeting with my colleagues. And I turned around as we were leaving and I wondered where the President was -- the President was surrounded by each of my colleagues bidding for him -- please come to Philadelphia, please come to Baltimore, please come to Atlanta. (Laughter.) I’m serious.

So I just want to say to the people of Panama, this is a very important thing for the United States. This new and improved Canal will also benefit Panama, to state the obvious, bringing an economic windfall in the form

26 | December 2013

of greater revenue. It will help Panama remain an indispensable part of the global economy.

And as the energy production throughout the Americas grows, Panama is going to play a critical role in bridging energy supplies in the Atlantic with a growing demand in the Pacific. This is good business. This is good for Panama. And it’s clear that the world of opportunity is available to those willing to make the necessary investments to compete in the 21st century.

Panama is making that investment, and the United States has to do the same now. We’re ready. When the United States passed what we call in the States the Recovery Act, it included $48 billion in new infrastructure -- the largest public works project in America since the construction of the Interstate Highway System. Each port, though, has different needs. There are different places. Bridges need to be made higher. Wharfs need to be made longer. Berths need to be made wider. Water needs to be dredged. Communities across our country are working to address these problems, and through federal grants, we’re working to modernize state and public

www.txgulf.org

funding.

That $48 billion the federal government supplied generated well over $150 billion in private investment and state investment. The $10 billion [sic] we invested in one of the ports generated in that port another $80 million.

So, folks, look, this is about the totality of how our infrastructure connects. As Secretary Foxx says, it’s about the first mile and the last mile of infrastructure that gets American exports from the factory floor to the decks of ships.

For example, it’s about how a rail line in Ohio connects shipping to the Port of Baltimore. That’s why we put in $50 million in investment and it generated multifold in that in terms of being able to have access to the ports.

In conclusion, Mr. President, let me say what I’ve said to you privately on other occasions and I say publicly: We thank the people of Panama.

And I want you to know, speaking for President Obama and myself, the day is long passed when America looks out and saw a backyard. This is no backyard.

This is the yard -- this is the front yard. The hemisphere is growing.

For the first time in history, you can picture from Canada to the tip of Argentina a hemisphere that is democratic, middle-class, secure, as the leading engine of economic growth in the world in the 21st century.

And Panama will play a critical part in that.

So, Mr. President, it’s not what we can do for you -- what you’re doing for us and what we can do with you. The historic expansion of the Canal that is underway shows how strong Panama is and the pure selfinterest of the United States of America. You’re a powerful symbol of Panama’s success, Mr. President, and it’s a reminder that our futures, the United States and Panama and this hemisphere, are inextricably linked.

Your work on this Canal strengthens my country. We owe you. We thank you. May God bless you all. And may God protect our troops. Thank you all very much. ò

Greater Houston Port Bureau | 27

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