November 2013 Port Bureau News

Port Bureau News Greater Houston Port Bureau

NOVEMBER 2013

Spotlight on Ricky Raven President, Schröder Marine Services

Coffee Market Trends and Houston’s Outlook

Foreign Waterborne Trade A Look at Houston’s Stevedoring Companies

In the Community Updates from annual meetings and the Captain’s Cup Golf

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

© 2013 COLUMBIA PICTURES INDUSTRIES, INC.

Captain’s Corner

Carpe Diem: Let’s seize the day with “Captain Phillips”

I

had the pleasure of attending a special screening of the movie, “Captain Phillips”, in Norfolk, Virginia last month. In attendance were the Maersk leadership, the Phillips family (sans the Captain) and some of the Navy personnel involved in the 2009 rescue operation when a Maersk vessel was hijacked by Somali pirates. It was a boisterous, proud crowd and a lot of fun.

The Navy portion is truly inspiring, but I found the emotions of the crew to be the best part of the movie.

I felt like I was underway with the crew of the M/V Maersk Alabama. The resiliency and leadership of Captain Phillips was impressive, and Tom Hanks delivered the complete range of emotions one would expect in such a high stress hostage situation. Especially sobering was the scene after the SEAL team goes to work, and he is brought back onto the USS Bainbridge.

One sidebar comment: I think most Texans, especially the high percentage of those packing heat, will be surprised at how defenseless the crew was (and is) at sea. I think the average Texas truck is better prepared when it comes to firepower. Maybe commercial ships should take a lesson from the “Don’t mess with Texas” book when entering pirate waters.

2 | November 2013

Even though we all know how it ends, I would highly recommend the movie because it is a powerful film about the experience of sailing a modern container ship coupled with a thrilling story of a naval rescue at sea. Film wise, what could be better? I enjoyed seeing the size and strength of one of our commercial ships on the big screen.

There were multiple scenes showcasing our industry: the big container vessel loading and then lumbering away from the dock before the big engines muscled it to sea and up-to-speed.

So seldom is our industry featured prominently on the movie screen that we need to fully enjoy this red carpet experience. Better yet, let’s capitalize on the momentum to get more people interested in our industry. Like the movie, the drama of funding dredging maintenance of our port has been playing out in a lifeboat. The actual Maersk Alabama lifeboat now resides in the Navy SEAL Museum in Fort Pierce, Florida. That is not where we want to be.

It’s time to get out of the bobbing, directionless lifeboat and onto a ship that can steer us to a better destination.

We are at a pivotal point in determining the future of the Port of Houston and the ship channel. We cannot afford to let a single opportunity slip by us.

www.txgulf.org

With the “Captain Phillips” movie in the spotlight, the timing could not be better. We need to seize the day and build public awareness of both the success of and the threat to our port. The Port of Houston will celebrate its 100-year anniversary in 2014, and a little movie mania might be our passport to some early publicity.

Several community-wide events are being planned for the centennial celebration, so please let me know (713678-4300 or bdiehl@txgulf.org) if you are interested in helping muscle this opportunity up-to-speed.

The goal is to use every available resource to reach out to the community. It is essential that we emphasize the economic benefits our port brings to Houston and push for the investment we need to guarantee our position as America’s distribution center. A united voice from community and business will send a clear message to our elected officials: the Port of Houston is a vital part of the city’s success and its infrastructure is worth the needed investment to ensure its future.

The Maersk Alabama’s life boat on display at the Navy SEAL Museum. © National Navy UDT-SEAL Museum

In the movie event’s commemorative program, John F. Reinhart, President and Chief Executive Officer of Maersk Line, Limited, wrote: “May this powerful film remind our country that we are a maritime nation with a history worth honoring and future worth preserving.”

Ditto. 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 informaton 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

© 2013 COLUMBIA PICTURES INDUSTRIES, INC.

FRONT COVER: Stevedores, Photo by Captain Lou Vest BACK COVER: Ocean Prince, Photo by Christine Schlenker

Greater Houston Port Bureau | 3

© CAPT LOU VEST, HOUSTON PILOTS

PORT WATCH Tom Marian, Buffalo Marine Service

Early Trade Taper Sets Up Strong October

A

ugust’s bounty gave way to September’s languor. Historically, September’s vessel arrival figures eclipse those of August; however, a very strong August could not be matched by the final month of the 3rd quarter.

This was particularly true in the inland tow sector, given that September saw the fewest movements of the year across the Houston Ship Channel. The fact that there were nearly 10% fewer movements last month squares up with the greater availability of tows on the spot market. It is also of note that the only major port without a vessel arrival decrease for this same timeframe was Corpus Christi. While September’s arrivals equaled that of August, both of those months are just off 2013’s best month. Indeed, the City on the Bay is up nearly 16% on a year-to-date basis due to the influx of shale gas condensates into the port via rail and truck, which results in additional tank vessel demand to export refined products.

The two other ports that have been prime beneficiaries from the Eagle Ford shale gas fields - Brownsville and Sabine - are faring similarly to Corpus Christi with respect to annual gains; however, September’s arrival data was off 32% and 6% respectively.

Nonetheless, with 2013 on pace to shatter 2012’s arrival numbers by 16% and 27% respectively, the economic domino effect on the waterfront continues to impress.

4 | November 2013

The remaining port with positive year-to-date arrivals is Freeport. Granted, 2012 was not a banner year for Freeport, but a gain is a gain and this month’s 5% increase bumped up the annualized totals to 3% above the prior year.

The ports that comprise the Galveston Bay-Houston Ship Channel corridor did not register any gains in September, despite an initial flurry of vessel activity.

The port of Galveston fell 6% in terms of vessel arrivals, which pulled its 2013 cumulative arrivals into the negatives – albeit by a mere 1%. The petrochemical rail port of Texas City accommodated 3% fewer vessels for the month and 7% for the year. Finally, terminals along the Houston Ship Channel saw arrivals drop throughout the Port of Houston by 6%. Accordingly, Houston’s contest with 2012 arrivals seesawed back into negative territory to the tune of 2%.

Interestingly enough, tankers were not the reason

Texas Ports Deepdraft Vessel Arrivals Sept. 2013 YTD Percent Change

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Port of Houston Deepdraft Vessel Arrivals 2,500

Deepdraft Vessel Arrivals

for the monthly decline in Houston. Surprisingly, this category - which has been off 10% since last year - had it best month ever with 244 arrivals which equated to a 3.4% monthly increase. The only other category that posted gains was blue water tows, but that 16% positive swing was due to the previous month’s low for 2013.

While the remainder of the vessel categories were all down for the month, in light of August’s superb showing, the September arrival numbers, for the most part, were still respectable with the exception of chemical tankers. This particular category had a precipitous monthly ebb of over 21%. Nonetheless, it still remains up by nearly 4% for the year. The vast majority of the other ship types continue to outpace 2012’s year-to-date totals.

To that end, despite bulk carriers falling 2%, it remains up 12% on a year-to-date basis; while general cargo vessel totals have waned by 11% since August, 3% more of these vessels have called upon Houston in the last year; and 6% fewer LPG carriers over the last month did little to erase the current 23% vessel arrival increase since 2012. What of container ships? Down for the month by 7% and nearly the same for the year. Fortunately, the number of containers continues to be on the rise, setting the stage for the arrival of larger containers vessels via the Panama Canal in 2015.

2,000

1,500

1,000

500

-

2013 Sept. YTD (Total = 6,193)

2012 Sept. YTD (Total = 6,326)

With one quarter to go, will there be any additional run-up prior to the holiday season? October’s numbers seem to indicate that the cargo influx period has unfolded a bit later in the season. Nevertheless, the export activity associated with the large number of refineries in the region continues to dominate the trade equation. In light of that, it stands to reason that strong consumer demand will follow as diesel is shipped to South America, chemicals are transported to Asia and domestic oil displaces foreign within the US.ò

BARGING AHEAD ever so politely.

B

Buffalo Marine Service, Inc.

Greater Houston Port Bureau | 5

www.BuffaloMarine.com

M

Greater Houston Coffee Association Annual Luncheon

elissa Pugash, marketing and communications specialist from Los Angeles, spoke at the Greater Houston Coffee Association’s annual luncheon on October 10th at Brady’s Landing. Pugash presented a three-part presentation that included: a snapshot of the current coffee business industry, the growth of the tea market, and the importance of a compelling marketing plan.

Currently, the U.S. is first in coffee imports, followed by Germany, Japan, Italy and France, respectively. A surprise in this mix is the rise of Japan to the number 3 slot, indicating a growing trend towards coffee as a preferred beverage rather than the traditional tea of the Japanese culture. At home in the U.S., tea is rising in popularity, a move Pugash illustrated by showing how the popular Starbuck’s chain logo and image has evolved over time and has now eliminated the word “coffee” from its logo.

The mermaid now stands alone to represent the company

and its products.

Pugash described the components of a solid business strategy and marketing plan as a company’s “roadmap” for success. “Your plan,” said Pugash, “will enable you to focus on your priorities, capitalize on new opportunities and manage your expansion. Additionally, it will help you take the most cost-effective ‘routes’ … for getting to the ultimate ‘destinations’ of an expanded customer base, increased visibility, and growth in sales.”

She emphasized the importance of a web presence in building brand identity with consumers and in businessto-business relationships. Pugash recommended one or a combination of elements that included a company website, LinkedIn business profile and Facebook profile.

“Many companies are confused by all of the bells and whistles of social media,” Pugash explained. “As ‘B2B’ companies, having some sort of web presence is still THE most important thing you need to do so (that) companies looking for the types of goods and services you provide can find you.” ò

Formed in 2001, the Greater Houston Coffee Association promotes and protects regional coffee trade through trade development initiatives, public outreach and networking, and advocacy for the industry. The Coffee Association's first initiative was to secure Houston's status as a Coffee Exchange Port by the New York Board of Trade (now known as ICE Futures U.S.).

The Association has been active as Houston has quickly grown to become the 2nd largest exchange port in the country, and the only exchange port west of the Mississippi River. With annual and quarterly meetings, the Coffee Association offers valuable opportunities to network and form business connections that add value and help your business grow. Visit www. greaterhoustoncoffeeassociation.org for more information.

6 | November 2013

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Annual Luncheon Sponsors:

Lee Garcia, Tea in Texas Magazine; Melissa Pugash, Speaker; Al Hernandez and Jeff Hernandez, Dupuy Storage Houston.

Melissa Pugash presenting at the luncheon.

Keith Emmons, Garner Environment; Ragan Bond and Christi Bond, Independent Coffee Roasters.

Bob Clark and Frank Files, Clark Freight Lines.

Jamie Sylvester, Briggs & Veselka Co.; Bill Onorato, Triton Overseas Transport, Inc.

David Kennedy, Canal Cartage; Jeff Hernandez, Dupuy Storage Houston.

Greater Houston Port Bureau | 7

The Coffee Market

Trends in Production and Consumption Dave Cooley, GHPB

C

offee, one of the most popular drinks in the world, is a brewed beverage that is slightly acidic (pH 5.0–5.1) and can have a stimulating effect on humans because of its caffeine content. The coffee brew is prepared from the roasted seeds of several species of an evergreen shrub of the genus Coffea. The two most common sources of coffee seeds or more commonly, coffee beans, are the highly regarded Coffea arabica, and the “Robusta” form of the hardier Coffea canephora. Coffee is a tropical plant that is currently cultivated in over 70 countries located in the tropics.

HISTORY

The origin of coffee is traced to the Horn of Africa, specifically the Ethiopian province of Kaffa, where the plant grows naturally. Beyond this accepted fact as to the origin of coffee, many scenarios exist as to how it became consumed by humans; first as an edible berry and then second as a brewed beverage. In any event, through various migratory patterns of the people of that region and time, as well as the resulting trading encounters with those they met, the coffee plant migrated east into the Arabian Peninsula, where it was cultivated commercially in the 1400s. Continuing travels and expanding trade, as well as influence by conquest, coffee spread throughout the Middle East – from Arabia into Turkey, Persia, and Syria. Later, during the era of European discovery in the late 1500s and early 1600s, coffee was introduced on the continent and was an immediate success. While efforts for local cultivation failed, the plant was systematically introduced throughout the burgeoning colonial empires that were being developed at that time all over the world.

The Dutch were the primary force who spread the knowledge of planting, growing, and cultivating coffee by introducing the coffee plant into Sumatra, India, and Ceylon in the late 1600s as well as into South America, at the colony in Surinam in early 1700s. From these initial forays, it was just a matter of time until the plant migrated to Venezuela, Colombia, and further north to the countries of Central America as well as further south 8 | November 2013

Robusta

Mixed Robusta & Arabica

Arabica

to Brazil, Bolivia, Ecuador, and Peru; all areas where coffee thrives today.

COFFEE PRODUCTION

The two most economically important species of coffee are Coffea arabica (Arabica coffee) and Coffea canephora (Robusta coffee). Arabica accounts for approximately 60% of world production.

Over the last 35 years, world coffee production has grown from 80 million bags in the 1979/80 crop year to just over 150 million bags in recently concluded 2012/13 crop year. During this same time period, the market share of Arabica coffee has declined from over 80% to just 58%. Population growth in the developing countries, where Robusta offers a more economically valued beverage, explains this change in Arabica’s market share.

The four largest coffee producing countries are Brazil, Vietnam, Indonesia, and Colombia who account for 65% of the world’s coffee production. Brazil is the largest producer of Arabica coffee beans and the second largest producer of Robusta. The countries of Vietnam and Indonesia are the first and third largest producers of Robusta coffee beans, respectively. Colombia, the second largest producer of Arabica, produces the most valued coffee beans. During the last five years, coffee production increased about 10%; from 136 million 60kg bags during the 2008/09 crop year to 150 million bags during the 2012/13 crop year.

The market share of each of the coffee producing

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World Coffee Production 60 kg Bags

160,000

140,000 thousands of 60 kg bags

countries showed slight variations during the last five years, but the overall ranking did not change. As a result, the total market share of the top four coffee producing countries remained the same at 65%. For example, Brazil’s market share decreased by 3%, which was offset by a similar increase in Vietnam’s market share, but neither were sufficient to alter the ranking.

120,000 100,000 80,000 60,000 40,000 20,000

0

COFFEE CONSUMPTION

Coffee consumption during the last five years (2008/09 crop year through the 2012/13 crop year) increased 13%, from 124 million bags to 141 million bags. The most prolific coffee consuming area is Europe (EU-27) at 44 million bags (31% market share), followed by the U.S. at 22 million bags (16% market share), and Brazil at 21 million bags (14% market share). During the five years, the market share ranking remained constant for these major consuming areas, except for the U.S. and the Other Countries group, where the U.S. relinquished 2% which was captured by the “Other Countries” and reflects the expanding growth of worldwide coffee consumption.

Arabica Production

Robusta Production

by a worldwide draw on stocks. To encourage additional production and facilitate a stock draw, the coffee price moved up somewhat significantly during this period from $1.50/lb to over $3.00/lb for Colombian Mild Arabica for delivery in the U.S.

During the most recent crop year of 2012/13, coffee production increased for the third straight year and finally rose above demand. As a result, coffee stocks increased by

In terms of growth over the last five years, coffee consumption in Europe and Brazil grew 11% and 17% respectively. Coffee consumption in the U.S., the second ranked coffee consuming area, was essentially flat, fluctuating around 22 million bags, as the impact of the Great Recession continues to affect all aspects of consumer spending. Growth of coffee consumption in other parts of the world was rather outstanding. For example, coffee consumption in Russia grew 37%, 24% in Ethiopia, and 22% in the Other Countries category.

COFFEE STOCKS

Since coffee production increased 10% and consumption rose 13% over the last five years, the negative difference resulted in a draw on stocks. From the 2008/09 crop year to the 2011/12 crop year, coffee stocks throughout the world dropped by 15 million bags, from 40 million bags to 25 million bags due to several years of poor weather as well as plant disease.

Furthermore, economic growth and demographics increased consumption in China, Brazil, and India that raised demand. When combining lower supply and higher demand, a shortage exists and this was resolved Greater Houston Port Bureau | 9

Coffee Production 60 kg bags (FAS)

Other 160,000

Guatemala

140,000

Peru Mexico

thousands of 60 kg bags

120,000

COFFEE TRADE

During the last five years, the coffee trade has grown by 11% or 10 million Ethiopia bags; from 91 million bags to 101 million Colombia bags. The vast majority of the coffee Indonesia Vietnam traded is unroasted or green coffee.

Brazil Green coffee beans are the seeds of the coffee fruit that have been harvested, dried, hulled, perhaps polished, then graded, sorted, and bagged for sale; usually for export. Selling coffee as unroasted or green allows the coffee roasting community, generally located in the consuming areas, the flexibility to blend and roast various species of coffees at locations near to final consumption so to ensure freshness as well as match the varying tastes and desires of the individual consumer.

Honduras

100,000

India

80,000 60,000 40,000 20,000 0

holding more than 70% of the world total coffee stocks.

2008/09

2009/10

2010/11

2011/12

2012/13

Forecast 2013/14

5 million bags when compared to the previous crop year and the worldwide coffee supply chain achieved a better balance. Price responded immediately and has steadily declined over the last 30 months to the current spot price of $1.35/lb. for Colombian Mild Arabica for delivery in the U.S.

The majority of the coffee stocks are held in the consuming areas with Europe, Brazil, and the U.S., the three areas that consume about 60% of the world’s coffee,

The two largest importing areas, Europe (EU27) and the United States, both of which are not

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Coffee Imports by Port 60 kg Bags (Census)

25,000 New Orleans, LA Houston, TX

thousands of 60 kg bags

20,000

Seattle, WA

Oakland, CA LA/LB

15,000

Miami, FL Jacksonville, FL 10,000

Savannah, GA Charleston, SC Norfolk-Newport News, VA

5,000

Baltimore, MD NY/NJ

0

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

climatologically suited for coffee cultivation, import a combined total of 68% of the world’s total coffee trade.

Other key importing areas are Japan, Algeria, Canada, and Switzerland. During the last five years, the market share of these top six importing areas dropped from 87% to 82%. This drop of 5% in the market share of the developed world is reflected by an increase in the market share of the developing countries.

In the export arena, the top exporting countries over the last five years are also those who are the top coffee producers, namely Brazil, Vietnam, Colombia, and Indonesia.

These countries accounted for about 66% of total world coffee production and 58% market share of the export market; a level that was generally maintained over the last five years.

COFFEE IN THE UNITED STATES

Bagged coffee imports into the U.S., of which 99% arrive in containers, increased 3% over the last ten years from 20 million bags to 23 million bags. During this time period however, the waterborne trade pattern for coffee imports has shifted somewhat dramatically from the Gulf Coast to the East Coast. Over the last ten years, coffee imports destined to ports along the Gulf Coast have fallen from 32% of total U.S. coffee imports to 22% (6.5 million bags to

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Greater Houston Port Bureau | 11

4.8 million bags), while coffee imports destined to ports along the East Coast have increased from 44% of total U.S. coffee imports to 54% (8.9 million bags to 12.4 million bags). During this same time, West Coast coffee imports have remained relatively steady at 20% (around 4.8 million bags).

Prima-facie, this change in the destination

of waterborne imports seems to be following the realignment of the “off-trade” coffee roasting capacity (product consumed “off ” the premises) which, over the last ten years, has consolidated processing facilities near the major population centers, usually near the coasts.

This phenomenon of locating close to either the Atlantic and Pacific coasts is not unique to the off-trade element of the coffee business. It is also followed by the “on-trade” aspect (product consumed “on” the premises) as well. To wit:

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Starbucks has four roasting plants in the U.S.; two on the East Coast – one at York, Pennsylvania and the other at Gaston, South Carolina and two on the west coast – one at Kent, Washington and the other at Minden, Nevada.

This industry alignment of roasting capacity contributed to the shift in waterborne coffee trade from the Gulf Coast to the East Coast.

The two most significant ports of entry for coffee imports are the Port of New York-New Jersey (specifically Newark) and the Port of New Orleans. Activity at these two ports comprise 35% of all U.S. coffee

Greater Houston Port Bureau | 13

imports. The Port of New York-New Jersey receives 20% of U.S. coffee imports (4.8 million bags); a level that has remained steady over the last ten years. The Port of New Orleans, on the other hand, currently receives 15% of the coffee imports (3.5 million bags); a level that has declined from 21% in 2003 (4.3 million bags).

Other U.S. ports with significant activity include Savannah, Charleston, and Baltimore where coffee imports increased 513%, 355%, and 134% respectively.

During the last 10 years, Savannah grew from 0.2 million bags to 1.3 million bags with market share growing from 1.03% to 5.57%; Charleston from 0.3 million bags to 1.5 million bags and a market share from 1.68% to 6.75%; and Baltimore from 0.5 million bags to 1.1 million bags and a market share from 2.39% to 4.92%.

The majority of U.S. coffee imports occur at twelve ports throughout the country. These twelve ports comprise 96% of total U.S. coffee imports.

HOUSTON

Coffee has been a part of Houston since 1947 when General Foods, owner of the Maxwell House brand, acquired an idle Ford motor car assembly plant and converted it to process both coffee and rice. The plant operated under the Maxwell House label until Kraft Foods, who purchased the Maxwell House brand from General Foods, sold the facility to Maximus Coffee in 2006. Maximus continues to offer coffee processing in Houston through private label roasting and grinding activities as well as other related services that include natural decaffeination and soluble processing.

During the last ten years, from 2003 through 2012, waterborne coffee imports into Houston have declined by 1 million bags or 45% from 2.2 million bags in 2003 to 1.2 million bags in 2012 and market share similarly dropped from 10.8% to 5.6%. For the year 2012, the imported quantity of 1.2 million bags translates to between 3,500 and 3,600 fully-loaded 20 TEU shipping containers, which is equivalent to 0.4% of the loaded inbound shipping containers arriving in Houston.

14 | November 2013

Although the volume has declined over the last ten years, the value, which has mirrored the price

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of coffee, has risen somewhat substantially from $163 million in 2003 to $307 million in 2012.

Houston imports Arabica and Robusta coffee from more than 12 different countries located in Central America, South America, and Asia, but imports primarily originate from Brazil, Colombia, and Mexico.

During the last ten years, the percentage of imports from Colombia has declined significantly and has been replaced by imports from Mexico and Vietnam (ostensibly increasing Robusta imports and decreasing Arabica imports reflecting the changed economic conditions in the U.S. that reflect the slow economic recovery post the Great Recession manifest, perhaps by consumer preferences changing toward a more economically priced beverage). Countries that comprise the “Other” category are mainly those countries located in Central America: Costa Rica, Honduras, Guatemala, and El Salvador.

While the waterborne coffee imports into Houston have been dropping over the last ten years, it is quite possible that the local coffee roasters may have developed

alternate logistics schemes to obtain supplies overland, for which data is not readily available, that have become a viable substitute.

Summarizing Houston waterborne coffee imports, the table below tabulates the volume, value, and unit landed price for the three largest suppliers of coffee beans to the Houston market during 2012 (Brazil, Colombia, and Mexico):

HOUSTON WATERBORNE COFFEE IMPORTS – 2012 (Census) QUANTITY (60 kg Bags) BRAZIL 349,911 COLOMBIA 193,744 MEXICO 233,655 COUNTRY

VALUE ($) 73,547,407 58,447,357 54,372,951

UNIT PRICE ($/60 kg Bag) 210.19 301.67 232.71

COFFEE PRICES

Coffee prices rose steadily from 2003 through 2011 as worldwide demand increased significantly; especially

Greater Houston Port Bureau | 15

in the developing world such as China, Brazil, and India.

Supply issues as a result of weather and disease coupled with increased demand resulted in a stock draw, which supported the rapid price increased during 2010 and early 2011. Increased production during the 2010/11 and the 2011/12 crop years replenished stocks and prices for Colombian Arabica coffee have retreated to the $1.35/lb. level.

CURRENT MARKET The current market is surplus. This is supported by the structure of the forward price curve, which is contango. That is, the price for each successive month is higher than not only the price for each previous month, but also the current spot price. Since this price structure allows supplies currently available to the market to be taken off the market by storing the product and selling the same volume forward in a future month relocates the product in time. The forward price will cover both the cost of the coffee and the storage fee, which suggests that current supply exceeds demand and the market is surplus. In addition, the current forward market is devoid of any seasonal variation reflecting individual crop years, further supporting the contention that the

16 | November 2013

market is surplus. In this regard, the coffee stocks held in U.S. warehouses as reported to the Green Coffee Association have risen each month since March 2013.

The market could remain soft until either production, which increased over the last 3-4 years, has been rationalized or the world economy is rejuvenated and consumer demand increases, which would result in increased coffee consumption. The most likely outcome is a combination of both possibilities that will achieve a more equitable balance between supply and demand.

OUTLOOK

National trends that may influence local coffee consumption include an increase in off-trade volumes (product consumed off the premises) and a slower growth rate of on-trade volumes (product consumed on the premises), when both are compared to last year’s statistics. These trends are indicative of the consumer continuing to brew coffee at home and reflect changing consumer preferences to respond to a lesser economic standing as a result of the Great Recession and the ensuing slow economic recovery. A shift to increased off-label consumption would offer additional opportunities to the private label community.

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A growing aspect of the off-trade is the individual serving market, which offers individual convenience as to both quantity (individual portion) and type of brew (individual selection). Nestle developed an individual serving offering, Nespresso, which is an espresso drink during the mid-70s, which became successful in 1988.

A few years later, an individual brew coffee system was developed by Keurig, a privately owned start-up. Keurig was purchased by Green Mountain Coffee, who licensed the individual brew system container, the K-cup, to other roasters and distributors, such as Starbucks, Folgers, and Dunkin Donuts, as well as tea distributor Twining’s. This licensing activity rapidly expanded the individual packaging of brewed beverages, which became extremely popular and profitable. Keurig’s patent expired during September 2012 which could open opportunities to private label roasters and processers and could result in an enormous expansion of the individual cup offerings and the related personal convenience.

Opportunities also abound in the on-trade business as well. As boutique coffee roasters proliferate, the private label processors, who are active participants in the international coffee market, have the scale and operational scope to accommodate the growing desires and needs of the boutique roasting community. Capabilities of the private label firms include the ability to accommodate a vast number of individual blends of green coffee as well as offering expertise in shipping, warehousing, and blending; all offerings of the private label firm.

CONCLUSION

The importance of coffee to the world economy cannot be overstated. It is one of the most valuable primary products in world trade and is a viable source of foreign exchange to the coffee producing countries.

Its cultivation, processing, trading, transportation, and marketing provide employment for hundreds of millions of people worldwide. Coffee is crucial to the

economies and politics of many developing countries; for many of the world’s Least Developed Countries, exports of coffee account for more than 50 percent of their foreign exchange earnings.ò Data obtained from the International Coffee Organization, National Coffee Association, Green Coffee Association (GCA), Wikipedia, the Intercontinental Exchange (ICE), the Foreign Agricultural Service of the U.S. Department of Agriculture (FAS), and the Census Bureau of the Department of Commerce (Census).

Providing marine services to vessels along the Gulf Coast for over 20 years. We own and operate USCG approved liquid vacuum trucks, a 10,000 bbl Tank barge for marine pollution (Marpol) waste, a 10,000 bbl tank barge for carrying industrial wastewater, a 10,500 bbl tank barge for carrying clean chemicals and a 1800 horsepower Tug for removal and transportation of various material.

Intergulf can accept the following materials • • • • • • • • • • •

MARPOL Annex I and II Wastes Category X Tank Washings Engine Room Sludge Tank Washings / Cargo Washings Hazardous Products using preapproved disposal facilities Used Oil Oily Bilge Water / Oily Ballast Water De-Bunkering Off-Specification Products and Fuels Gray and Black Water Hazardous and Non-Hazardous Waste

“Cost and Convenience Are Not Considerations When Addressing Safety”

(281) 474-4210 www.intergulfcorp.com • info@intergulfcorp.com

Greater Houston Port Bureau | 17

The Captain’s Cup Golf Tournament November 4, 2013 at BraeBurn Country Club

Thanks to our generous sponsors, the 5th Annual Captain’s Cup Tournament sold out of team slots and sponsorship opportunities in record time. Neither the sporadic drizzle nor the breezy weather could dampen the enthusiasm of participants while playing on the BraeBurn Golf Course in southwest Houston.

Thank you to our Golf Committee:

Kevin Hickey, Targa Resources Guy Hitt, Frost Bank

Brad Maxcey, Danner’s Inc.

18 | November 2013

www.txgulf.org

Tim Studdert, Shamrock Marine

Jamie Sylvester, Briggs & Veselka Co.

Thank you to our Sponsors:

AllTrans Port Services BB&T Bank Blank Rome LLP Briggs & Veselka Buffalo Citibank Coating Systems Danner’s

Equipment Depot ExxonMobil Frost Bank Gal-Tex Pilots Harley Marine Services HDR, Inc. Higman Marine Services Houston Mooring

Houston Pilots Intergulf Corp Laborde O’Rourke PTRA Rio Marine Shamrock Suderman & Young

Targa Team Services Texas Terminals Triton Overseas Transport, Inc.

Vopak Terminal Watco Greens Port Wells Fargo Wm Morris

Greater Houston Port Bureau | 19

2013 Texas Brokers & Forwarders Conference October 9-12, 2013 HCBFFA

R

ecently the Houston Customhouse Brokers and Freight Forwarders Association (HCBFFA) participated in the Texas Brokers Conference held in El Paso, Texas. This year it was hosted by the West Texas New Mexico Customs Brokers Association.

Several local Freight Forwarders/Customs Brokers, members and officers of the HCBFFA, travelled to El Paso to attend the conference. Also in attendance were several of the HCBFFA’s associate members and sponsors, as well as the National Customs Brokers and Freight Forwarders Association.

For a complete list of attendees, please visit http://www.txbfc.org/sponsorlist-2013.pdf.

Maritime Solutions for Moving Forward

DIRECTION

The goal of the conference, is to educate members on key issues regarding importing and exporting. It also gives attendees a chance to see what other ports are doing and to learn from each other. By doing this members stay fully aware of the latest rules, regulations, technology and pending changes. However, Customs Border & Protection staff who were scheduled to speak were not able to attend due to the recent furlough situation.

PORTS MARINE HEAVY INDUSTRIAL COASTAL

The HCBFFA would love to hear from anyone who is interested in participating in our organization and future TXBFC meetings. If you are interested in membership, please send an email to HCBFFA@aol.com.ò

Scott Dobry

PERMITTING

www.hdrinc.com

20 | November 2013

www.txgulf.org

Don’t Navigate Your Finances Alone.

With experienced maritime bankers and the capacity to lend, Bank of Texas has the resources you need to help navigate your finances. We offer competitive structures and terms to meet your growing capital needs.

As a trusted name in marine financing and a committed partner to the maritime industry, let us chart you a course for success. Give us a call, or better yet, let us come see you.

Vessel Financing | Lines of Credit | Leasing Real Estate & Terminal Expansion 832.786.5178 | www.bankoftexas.com/marinefinance

Greater Houston Port Bureau | 21

Š 2013 Services provided by Bank of Texas, a division of BOKF, NA. Member FDIC. Equal Housing Lender

STEVEDORES Stow The Stuff Judith Schultz & Christine Schlenker, GHPB

Photo courtesy of the Houston International Seafarers’ Center ©2013

L

ong before railroads, before modern trucks and tankers, long, long before giant techno-cranes lifted containers on the dockside, there were men who stuffed. “Estibadores”, now transliterated phonetically into English as the word stevedore, were the literal “arms” of the shipping industry. Used almost interchangeably with the term “longshoreman” in the U.S. venacular, footprints of the stevedoring profession can be followed back to early civilization. The pharaohs of ancient Egypt appointed administrative chiefs to oversee the merchandise transported on the Nile. Wherever there has been a ship, there has been a stevedore.

Although those in the know will be quick to point out there is a difference between the tasks of the stevedore and the longshoreman, even the U.S. Congress mixed the terms up a little in the Ship Mortgage Act, 46 app. U.S.C. section 31301(5)(C) which designates both “crew wages” and “stevedore wages” as preferred maritime liens. The intent of the statute was to give the wages of the seamen and longshoremen the same level of protection. Nevertheless, sometimes the word “stevedore” is still used to mean “man who loads and unloads a ship”. (See sidebar definition.) However, the U.S. Maritime Administration’s Glossary of Shipping Terms defines longshoreman as an “individual employed in a port to load and unload ships,” and stevedore as an “individual or firm 22 | November 2013

that employs longshoremen and who contracts to load or unload the ship.”

At home in Houston, Charles Montgomery, President of the ILA Local 1351 and Vice President, South Atlantic Gulf Coast District ILA clarified it for us this way: “The members I represent are called ‘longshoremen’, men waiting along the shore for ships to come in.

We are some times called ‘stevedores’ and that name is from European origins. The companies that contract with steamship lines to unload their cargo are ‘stevedoring companies’. These companies supply the equipment, warehouse space and hire longshoremen/stevedores to do the labor part of unloading.”

The work of loading and unloading of ships has historically been a task of back-breaking labor. The estibadores of the past frequently relied on brute strength to move cargo. While physical strength is still important, a new set of strengths are required today. Keen mechanical skill, technical prowess and a clean background check are requisite in the stevedoring operations of 2013. Modern equipment, NASA-worthy in their size and scope, a globalized economy and Homeland Security have changed the face of stevedoring enterprises.

Today, the tasks of a stevedoring team, including their longshoremen counterparts, break down into a vartiety of responsiblities that might surprise the uninitiated.

The loaders position may be the only job that bears any

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resemblance to the estabadores of the Old World. Loaders work in a vessel’s cargo hold below deck, positioning straps, cables and hooks on the goods. The loader may guide crates out of or into the hold.

Hoist and winch operators work the machinery that lifts cargo out of ship hold. Crane operators, working from dizzying heights in machines that evoke scenes from Jurassic Park, carefully and precisely load and unload containers and heavy cargo. Straddle Carriers stock containers up to four high. All operators require an exacting sense of spatial relationships and the ability to coordinate movements with the loading crews. All workers must possess a Transportation Worker Identification Credential (TWIC®) card.

The stevedoring process doesn’t stop on the dock. Information technology has infiltrated virtually every aspect of the maritime industry and stevedoring is no exception.

Depending on the terminal, a superintendent, with his (or her) team in an indoor control room, may monitor digital schematics of the ship. The operation might be tracked step-by-step, from containers unloaded to how many crane lifts and straddle-carrier moves have been accomplished. And, the stevedore may -- or may not -employ longshoreman from local organized labor groups.

Nearly 100 years ago, the Galveston Longshoreman’s strike dominated headlines when conflict erupted between organized labor groups and open-shop forces on March 12, 1920. The Texas State Historical Association (TSHA) cites that “some 1600 coastwise longshoremen joined dockworkers in various South Atlantic and Gulf ports in a nationwide walkout.” The TSHA narrative paints a vivid picture of a confrontational clash and manipulative manuevers that reached all the way to the Texas governor’s mansion.

Contrast that to the Houston Chronicle’s May 17, 2001 article describing Empire Stevedoring’s initiation of operations at the Turning Basin in the Port of Houston.

The Chronicle stated, “history was quietly made when the nonunion company moved onto the desolate south-side docks in January of 2000.” The paper said the change was eased by Empire securing docks that had not been used for more than 15 years. Empire’s original lease agreement was for six years and “breathed life back” into the deteriorated south-side docks.

A special report from IBISWorld in April 2013 forecasted an increase in stevedore industry revenue due to “high trade volumes”. IBISWorld cited increasing oil

ste · ve · dore: 1. (n) a firm or individual engaged in the loading or unloading of a vessel.

2. (v) to load or unload the cargo of (a ship); or, 3. to load or unload a vessel.

Origin: 1780–90, Americanism; < Spanish estibador, equivalent to estib ( ar ) to pack, stow Dictionary.com Unabridged. Based on the Random House Dictionary©, Random House, Inc. 2013

prices as a motivating factor to transport customers in selecting “water transport over more expensive freight transport alternatives.”

“Texas was ranked second nationally and Houston-Sugar Land-Baytown fourth in the top ten metropolitan areas with the highest level of employment of transportation and material moving occupations as of May 2012.”

-U.S. Department of Labor Statistics

The U.S. Department of Labor Statistics projected 16% growth in employment nationally for deep sea, coastal and Great Lakes water transportation material moving workers by 2020. An increase of 13.6% was projected for material moving workers in the support activities for water transportation by 2020. Texas was ranked second nationally and Houston-Sugar Land-Baytown fourth in the top ten metropolitan areas with the highest level of employment of transportation and material moving occupations as of May 2012.

The Greater Houston Port Bureau is honored to count seven stevedoring companies as part of our membership in 2013, and we thank each of the companies for their information and assistance in writing this article.

Special appreciation is due to the following gentlemen for providing tours, photo opportunities, and interviews, and our apologies for only being able to include a fraction of the knowledge they imparted: • Andy Gossett, Gulf Stream Marine

• Stan Kratish, Jacintoport International, and

• Ricky Raven, Schröder Marine Services, Inc. Greater Houston Port Bureau | 23

Since its founding in 1990, Gulf Stream Marine has grown to be one of the largest privately-owned stevedoring companies in the Gulf Coast region. Contributing factors to their success are the basic ideals on which the company was established: quality customer service and a focus on continuous improvement. Gulf Stream Marine seeks to build enduring and equitable relationships with their customers, vendors, and employees within a safe and ethical working environment.

During a recent Port Bureau visit to tour Gulf Stream’s operations, Andy Gossett, Director of Business Development, focused on the high quality of their employees as the foundation for the company’s success and future growth.

Nearly a thousand employees support terminal and stevedoring operations at Woodhouse, Manchester, Greensport, and Industrial Terminals in Houston as well as operations in Freeport, Corpus Christi, and Brownsville. The company specializes in handling break bulk, wind power project cargo, steel commodities, nonagricultural bulk commodities, and containers, including massive parts for mining trucks exported to South America. They serve both scheduled liner services and steel and

Operations underway at Gulf Stream Marine.

24 | November 2013

project tramps. Gulf Stream Marine has over one million square feet of indoor storage at their Manchester Terminal alone.

Gulf Stream Marine services almost 6,500 linear feet of deep water berths, more than 4,000 linear feet of barge docks, and 180-plus acres of open air storage for containers and project cargo across its four Houston terminals.

A large fleet of cranes, fork lifts, trucks, and container handlers are available for the immediate and long-term needs of their diverse customer base.

All four terminals have rail access through either Port Terminal Railroad Association or Union Pacific.

The Manchester Terminal includes a covered rail spur for weather-sensitive cargo. In addition, Gulf Stream has onsite fabrication shops to manufacture custom lift equipment for project cargoes. Gulf Stream also manages a Foreign Trade Zone located at Manchester Terminal.

This new team is re-emphasizing Gulf Stream’s commitment to customer service and superior performance.

Since February 2012, Gulf Stream has been a CapStreet Group portfolio company, a private equity firm based in Houston.

“Mister Rick” flatbed trailer and truck named for retired Gulf Stream executive Rick Ragusan.

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Richardson Companies In 1969, Nolan D. Richardson, the patriarch of the Richardson Family, started his familyâ&#x20AC;&#x2122;s first operations in the Port of Houston. Richardsonâ&#x20AC;&#x2122;s initial endeavor began with a handful of employees. Today, the Richardson Family owns various entities with operations in the Brownsville, Galveston, Houston, Laredo and Mobile areas. Today, the Richardson Group of Companies employ a workforce in excess of 200 full time employees. The entities comprising the Richardson Group of Companies offer an array of services, including vessel stevedoring, freight handling, transportation (truck and barge), warehousing, FTZ, CFS, container handling and turn-key services for steel interests. Richardson Stevedoring & Logistics, Inc., R. Warehousing & Port Services, Inc., Richway Transportation Services, Inc. and Robin International Transport, Inc. are all part of the Richardson Group of Companies. Each of these entities are proudly owned and operated by different members of the Richardson Family.

Greater Houston Port Bureau | 25

Jürgen Schröder, a native of Hamburg, Germany, founded Schröder Marine Service, Inc. in 1986. He purchased used equipment from a bankrupt terminal and began offering stevedoring operations in the Turning Basin terminal. Jürgen brought years of experience – from merchant marine officer to maritime executive – to his customers and began to build solid relationships with his customers. The early years looked quite different than its present incarnation. Most notably, Schröder Marine owned its own equipment and hired labor directly from union sources.

After operating at private terminals for a number of years, Jürgen made the decision to change his mode of operations by entering into a “partnership” with Cooper /T. Smith Stevedores (formerly known as Port Cooper/T. Smith). CTS would supply the labor and equipment with Schröder providing logistics and supervision. Since about 1994, this partnership has worked well for both partners and continues today stronger than ever before.

Schröder primarily serves Chipolbrok and Bahri at the Port of Houston Authority’s City Docks. Chipolbrok America is engaged in the liner transportation service for project, heavy lift and breakbulk cargo. Bahri, formerly known as the National Shipping Company of Saudi Arabia (NSCSA), is one of the largest shipping companies in the world.

Though working more on the logistics side, Schröder Marine continues to be a hands-on company. A member of the team is on the dock to supervise every vessel worked. Most of their work is performed in Houston at City Docks 8-23. However, the Schröder Marine staff does travel to other ports to meet their customers’ needs, including Galveston, Freeport, Corpus Christi, Port Arthur, and occasionally Brownsville.

Located close to their terminal operations, Schröder Marine Services home offices are at 1717 E. Loop North in Houston.

Schröder Marine Service continues to be family owned and operated. Its staff is comprised of seven members, and three of them bear the last name of Schröder. The firm focuses on four specialty services: consulting, breakbulk stevedoring, port captain services, and freight handling.

In keeping with the company’s mission to offer quality “old world” customer service, new Schröder Marine president, Ricky Raven, has set goals for the company’s customer base expansion carefully and precisely. He wants to keep the number of customers low and the office operations lean. He counts on slow and controlled growth to keep Schröder Marine an industry leader in developing tailored solutions for their clients, excellent customer service and on-time cargo handling.

The family business: Jürgen with his sons Kristopher (left) and Karl (right) © Schröder Marine Services

26 | November 2013

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Spotlight on Ricky Raven

President, Schröder Marine Services Schröder Marine Services made a big change this summer with the hiring of a new President, Ricky Raven – but their choice is no stranger to the Schröder family business. Ricky’s first maritime job in Houston was with Schröder in 2001.

Born in Venezuela but raised in the Houston area, Ricky joined the Marine Corps directly after high school and served as a logistics clerk for four years.

He credits his military experience as a “tremendous” influence on his success as a civilian, commenting that “the leadership experience you learn while you’re in there can’t be taught anywhere else. You go in as one person and come out a totally different person.”

After boot camp in San Diego, Ricky was stationed at Camp Lejeune in North Carolina for the duration of his service. Admitting that his time in the Marine was “nice and quiet” compared to experience of others, Ricky served during a period of reduced conflict and never deployed.

As a logistics clerk, Ricky worked in a large military warehouse providing repairable parts, from radios to Hum-vees, to deployed marine units.

While on Christmas leave in Houston a few months prior to discharging, Ricky began exploring his options for work and college. Originally intending to enroll at the University of Houston for business administration, Ricky started looking for work opportunities that would allow him time and flexibility to attend classes. His mother worked as an administrator at Schröder at the time and introduced Ricky to Jürgen Schröder, who agreed to hire Ricky part-time. Only a few days after his discharge in March 2001, Ricky was working at Schröder Marine Services and applying for college in Houston.

While attending an “Introduction to the Port” course offered by the Greater Houston Port Bureau, former Port Bureau president, CAPT MacNab, encouraged Ricky to

look at Texas A&M Galveston for a maritime degree.

Ricky took that advice and enrolled in the maritime administration program – chosen over the transportation program, in part because Ricky wasn’t comfortable putting on an Army Corps uniform after four years in a Marine Corps uniform. While working and attending school, Ricky found a strong support network at Schröder Marine, and credits Jürgen with encouraging him to finish college no matter what.

Ricky found that his military logistics training was very practical in the stevedoring industry. “It’s still logistics – moving cargo from point A to point B,” he explained. After graduating in May 2005 into a small downturn for the company, Ricky decided to leave Schröder Marine to gain experience in the carrier side of the business at Rickmers-Linie as a port captain.

Ricky considers this one of the defining moments of his career, opening up opportunities to learn the industry from his customers’ perspective. About 6 months later, Jürgen Schröder, acting as a consultant and stevedore for Chipbolbrok’s new Houston division which was in need of a staff, recommended Ricky for a position. Ricky joined the Chipolbrok staff as an operations manager February 1, 2006. Shortly thereafter Chipolbrok became Schröder Marine’s largest customer.

The strong relationship forged between the two companies kept Jürgen and Ricky in close contact. When Jürgen decided to hire a new president, he went to Ricky, hoping to convince his former “superstar” to rejoin the company. Ricky accepted, saying, “I loved Chipolbrok, but it was an opportunity I just couldn’t pass up.”

Ricky is optimistic, moving forward in his new role.

His finds one of the biggest strengths of the company lies in the strength of their customers, and their two main accounts -- Chipbolbrok and Bahri -- are solid and consistent. When asked about the direction in which he plans to take Schröder Marine, he replied: “It’s been successful for 27 years. I’m not here to rock the boat. It’s been working. There’s small tweaks here and there that can be made and will be made. But for the most part, we’ll stay the course.”

Ricky currently lives in League City with his wife and two small daughters.

Greater Houston Port Bureau | 27

Ports America is proud to be the largest terminal operator and stevedore company in the United States, operating in more than 42 ports and 80 locations.

They provide clients with a distinct competitive advantage, combining the flexibility of global connection with the efficiency of local expertise. Ports America is dedicated to customer satisfaction, consistently delivering measurable results.

Ports America has the expertise to manage the handling of all types of cargo. In a typical year, they handle more than 12.7 million TEU, 2.5 million vehicles, 8.9 million tons of general cargo and 1.6 million cruise ship passengers.

Their operations include bulk, breakbulk and project cargo facilities, world-class cruise terminals, intermodal facilities and precision RoRo handling.

In the ports of Texas, Ports America has operations at Bayport, Beaumont, Corpus Christi, Freeport, Galveston, Houston, and Port Arthur.

The Chaparral Stevedoring Company is an employee-owned stevedoring company founded 1966. The company’s specialty is the discharge of steel and the handling of wind turbine materials. Chaparral Stevedoring provides storage, terminal operations and stevedoring services. Offices are located at 1717 Turning Basin Drive in Houston, Texas.

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28 | November 2013

|

Houston, TX 77057

|

713.977.7400

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|

Email: borland@bladesintl.com

Ceres Gulf, Inc., is part of Ceres Terminals Incorporated and its sister company Yusen Terminals Inc. They are one of the largest transportation service networks in the world.

Established in Chicago in 1958, just prior to the opening of the St. Lawrence Seaway, Ceres Terminals soon handled over 50% of Chicago’s total grain volume. This growth in business was a perfect match to the Ceres name, which was inspired by the statue of the Roman goddess of agriculture perched atop of Chicago’s Board of Trade Building.

From 1959 to 1962, Ceres expanded to Duluth, Milwaukee and Toledo, where the company was also doing general cargo stevedoring. In 1962, Ceres opened an office in Canada, handling grain in Montreal.

Ceres moved from its base of operations from Chicago to the Port of Baltimore in 1979. From there, it grew rapidly to include operations in Hampton Roads, Virginia, the U.S. South Atlantic and Gulf Ports of Charleston, Savannah, New Orleans and Houston. As the company expanded, each Ceres port location required recognition by region of operation. Ceres restructured by adding subsidiary companies, and the ports of Texas operations became a part of Ceres Gulf.

In 2002, Nippon Yusen Kaisha (NYK Line) of Tokyo purchased Ceres. Ceres operates as a wholly owned subsidiary in the Harbour Division of the NYK Group. Since that time, Ceres established its corporate headquarters in East Brunswick, New Jersey and achieved strength through diversification. It has experienced rapid growth in both the cargo handling and cruise sectors.

Ceres Gulf provides container stevedoring services at the Port of Houston’s Barbours Cut Facility. In addition, Ceres operates at the Bayport Container facility with their JV partner, Mediterranean Shipping Company. Together, Ceres handles a total of over 500,000 containers per year in Houston. At the Turning Basin Terminal/City Docks, Ceres provides RoRo stevedoring services, handling over 70,000 autos and RoRo units. Ceres also handles breakbulk and project cargoes at this facility.

Ceres Gulf has been a strong presence in the Gulf Ports since the 1950s. Currently in the ports of Beaumont, Corpus Christi, Galveston and Port Arthur, Ceres offers RoRo stevedoring, bulk stevedoring as well as breakbulk operations. This includes the handling of steel, locomotives, military cargo, machinery, transformers, generators, project and high/heavy cargoes.

Ceres Gulf, Inc. offices are located in Pasadena, Texas. The drive, determination and commitment to excellence of the company are reinforced by the people of Ceres Gulf, making customer satisfaction a daily objective. They carry on Ceres’ effectiveness, efficiency and reliability and maintain a strong course into the future.

Greater Houston Port Bureau | 29

Jacintoport International, a division of Seaboard Marine, is a multi-faceted operation employing over 500 people located and operating at the Port of Houston’s Jacintoport Terminal. Jacintoport Terminal has been historically known for the automated cargo handling equipment commonly referred to as the “spiralveyors”. However, due to the downturn in bagged grain cargoes, Jacintoport has cultivated its services to attract new business to the terminal and increased its staffing in stevedoring to 150 to efficiently manage the new accounts.

By working 24 hours a day, Jacintoport has effectively managed the addition of BBC Chartering, National Shipping and TML with its existing customers without any congestion over the terminal’s two general cargo docks.

The stevedoring operation at Jacintoport, which handles over 1.5 million tons of containers, breakbulk, heavy lift and project cargo annually, utilizes a $15 million fleet of equipment. This fleet includes 250 forklifts, 47 maffi trailers, seven top loaders, and two cranes, in conjunction with its handheld wireless documentation system to coordinate and load vessels with more productivity and improved trucker turn times.

U.S. Customs has an onsite RPM (radiation portal monitor) to handle Jacintoport’s container volume.

Jacintoport International additionally has diversified

30 | November 2013

its operation into warehousing and terminal activities to create commerce transiting over the facility’s working berths. Jacintoport has expanded its operation by adding over 250 electrical receptacles to accommodate the increased weekly demand of refrigerated perishable fruits and produce being off loaded at the facility from Latin America.

In addition, Jacintoport has furthered its commitment to being a leader in operating a “green facility” by investing in new equipment and technology in its warehousing division that primarily transfers plastics and grains for export. The investment in new equipment and machinery builds on the model of lessening the impact of commerce on our community by eliminating many portions of the supply, and thus decreasing emissions and other pollutants into the environment. This is just a small part of Jacintoport and its parent company Seaboard’s strategy for upgrading the 75-year-old Jacintoport Terminal into a more modern, state-of-the-art facility to handle the demands of today’s customers that ship more than just containers.ò

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Greater Houston Port Bureau | 31

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Advertising Directory Bank of Texas.....................................................................21 Blades International.................................................................. 28 Buffalo Marine Service................................................................ 5 Cargoways........................................................................13 Chalos & Co................................................................................12 Clark Freight Lines.................................................................... 29 Equipment Depot.......................................................................14 Gulf Winds International............................................................ 16 HDR.......................................................................................... 20 Houston Pilots............................................................................ 9 Intergulf..................................................................................... 17 John L Wortham & Son.............................................................. 29 McCarthy...................................................................................31 Odfjell........................................................................................11 Port of Houston Authority..........................................................12 Shrader Engineering..................................................................15 The Richardson Companies........................................................25 Trustmark National Bank...........................................................10 Vopak......................................................................................... 9 Whitney Bank............................................................................31