May 2014 Port Bureau News

Port Bureau May 2014

Greater Houston Port Bureau Gulf Winds International The second generation takes the helm, emphasizing mission, vision and values

News

Houston Trade Stats The “Export Port� keeps foreign commerce flowing

Port Watch A March That Has Earned Its Roar

www.txgulf.org

Greater Houston Port Bureau | 1

Port Bureau 6

News 4TotalGermany Trade: $7,006,727,178

16

30

10TotalRussia Trade: $4,691,778,762

Trade Balance: -$4,139,753,002

Trade Balance: -$1,728,985,186

7

Netherlands Total Trade: $6,567,071,712 Trade Balance: $3,934,748,092

China 3 Total Trade: $7,808,056,326 Trade Balance: -$718,380,686

Mexico 1 Total Trade: $21,501,549,279

Trade Balance: -$5,045,038,109

6

Venezuela Total Trade: $6,697,228,961 Trade Balance: $3,198,937,383

Colombia 5 Total Trade: $6,809,809,407 Trade Balance: $1,259,682,931

South Korea 9 Total Trade: $4,707,876,913 Trade Balance: -$674,840,335

Saudi Arabia 8 Total Trade: $5,893,967,473

Trade Balance: -$2,037,616,133

Brazil 2 Total Trade: $11,192,579,967 Trade Balance: $5,346,071,689

3 Captain’s Corner Physics

4 Port Watch

14 Commerce Club April 2014: RADM James Watson, ABS Americas

A March That Has Earned Its Roar

16 Houston Trade

6 Gulf Winds

Spotlight on Todd Stewart, President

Sec. Foxx names new members

International

Publisher/President CAPT Bill Diehl, USCG (Ret.), P.E. Editor Christine Schlenker Copy Editor Judith Schultz Art Director Christine Schlenker For information about the Port Bureau:

Phone: (713) 678-4300 Email: info@txgulf.org 2 | May 2014

22 Port of Galveston 24 GHPB Round-Tables 27 Hapag-Lloyd and

Statistics

Exports Remain Strong

CSAV Merger

20 MTSNAC

30 Christening M/V

Writers Dave Cooley Matt Logan Christine Schlenker Judith Schultz Patrick Seeba Front Cover Photo courtesy of Hapag-Lloyd Back Cover Photo courtesy of Lou Vest

Photographer Patrick Seeba Port Bureau Staff Jeannie Angeli Cristina Gomez Janette Molina Al Cusick Printing Company DiPuma Printing and Promotional Products www.dipuma.com

For information about the Port Bureau News stories or advertising:

Email: editor@txgulf.org www.txgulf.org

THOMAS PAUL

A Publication of the Greater Houston Port Bureau The Port Bureau News magazine is a monthly publication of the Greater Houston Port Bureau, a member-driven nonprofit 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.

Captain's Corner Physics

T

his semester I am helping my son Michael with high school physics. I was reluctant to delve into the subject, but the more I do, the more I enjoy it; Michael, not so much. But let me share what I’ve learned—you can apply physics to everything.

Take Newton’s Law of Universal Gravitation, it states: Every object in the universe attracts every other object, with a force that depends on the object’s mass and distance between them. Planets have mass and the greater the mass, the stronger the potential gravitational pull. But to measure the force, gravity, between two planets you have to factor in distance.

Let’s apply this to goals: think of goals as planets.

The more meaningful and important the goal, the larger its mass. Goals also have distance: the time between setting the goal and when you plan to achieve it. The further away the goal in time, the less pull it has, regardless of importance. So to achieve a goal one must unite the right balance between the meaning and significance of the goal (mass) and the right time frame (distance) to create the necessary force of attraction (gravitational pull).

For example, we consistently need $50—$60 million a year in dredging funding to keep our ship channel deep and wide—a great mass, planet, or goal to us. The planet we need to attract is the fiscal support of DC, but our issue is too far away from them. Other innerbeltway issues, with shorter time frames/distances, are exerting greater gravitational pull on them.

We need to increase our mass—the significance of dredging to this country—and shorten our

L to R: Capt. Mike Morris, Houston Pilots; Robert Baker, ExxonMobil; Darylene Harris, Shell; CAPT Bill Diehl

distance to DC to create the necessary force of attraction to pull them away from the other planets’ gravitational pull.

Port Commission Chairman Janiece Longoria has been very clear that consistent federal support for dredging is a significant goal for her and the other Commissioners. In early April, the Commissioners went to DC en masse to shorten the distance and increase the force of support for our planet, dredging.

Joining Chairman Longoria were Commissioners John Kennedy; Dean Corgey; Theldon Branch, III; Stephen DonCarlos; and Roy Mease. Adding to their mass, they asked Captain Mike Morris, Houston Pilots; Robert Baker, Exxon; Darylene Harris, Shell; and me to join them. Between office meetings and a well attended reception, the message of manufacturing jobs, exports, and low cost energy seemed to be attracting them towards our cause.

The week after our visit, the Economic Alliance Houston Port Region and the West Gulf Maritime Association both went to DC to help with our gravitational pull towards supporting dredging.

More work needs to be done, so I’m going to leave you with a little homework. Enclosed within this magazine is the pamphlet that we left behind in DC on the dredging issue. Please review it and share it with others. We would like you to join us in increasing our mass on the dredging issue—it is worthy, and our gravitational pull on DC depends on our mass and Clockwise: Rep. Ted Poe, 2nd Dist. TX; Port Commr. Dean Cor- distance to them.ò gey; Spencer Chambers, PHA (standing); Robert Baker, ExxonMobil; Darylene Harris, Shell; Port Commr. Stephen DonCarlos; Port Commission Chairman Janiece Longoria

Greater Houston Port Bureau | 3

© Patrick Seeba

PORT WATCH A March That Has Earned Its Roar Tom Marian, Buffalo Marine Service very strong monthly showing in February, this still For those familiar with the weather adage, March resulted in a 33% year-to-date increase – another sign enters like a lion and departs as a lamb, the roar that began on the first did not abate through the thirty first. that Freeport is experiencing a long-overdue rebound.

Hence, the month finished with a very impressive 24% Brownsville, on the other hand, has posted identical bounce following the most lackluster February since arrival numbers for three consecutive months. While the onset of the Great Recession. What is even more this may appear to be lucky, it yields a 16% year-to-date remarkable is the fact that drop. The only other major port Texas Ports Deepdraft Vessel Arrivals the spill-induced channel that remains in the double-digit Mar. 2014 Year-to-Date Percent Change closures towards the loss column for year-to-date BROWNSVILLE, -16.0% end of the month did arrivals is Texas City to little to derail inland the tune of 10%. Yet, its CORPUS CHRISTI, 9.8% tow movements as March monthly tally was FREEPORT, 32.9% they increased by up 18% - albeit January’s GALVESTON, 22.6% over 13%. In the end, arrival numbers were still HOUSTON, -4.6% March was the anmarkedly higher than PORT LAVACA, -12.5% tithesis of February March’s. as all but two ports in SABINE, 5.6% This month’s “vessel-arrival darling” was by far Texas registered douTEXAS CITY, -10.0% and away the Port of Corpus Christi. The Port’s arble-digit monthly gains. rival harvest was 44% higher than February’s and 9% GRAND TOTAL, 0.9% Starting with the exceptions: the Port of Freeport’s increase was below the number of additional days in March by a mere 2% for a total monthly increase of 8%. However, given Freeport’s 4 | May 2014

above January’s. This is a first quarter performance that continues to underscore the export dividend and development boon associated with the Lone Star state’s shale gas bounty. Another beneficiary of shale gas pro-

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duction is the Port of Sabine. While her monthly increase was 2.5 times below that of Corpus 700 at 17%, Sabine’s first quarter is 5.6% above last year’s and her March arrival numbers 600 exceeded January’s by more than 13%. Clos500 er to the Gulf, Galveston’s 14% monthly 400 rise was complimented by a 22.6% year-todate jump. Thus, the bulk of Texas ports are 300 poised to build upon the gains of the previ200 ous two years.

Port of Houston Deepdraft Vessel Arrivals

Mar. 2014 vs. Mar. 2013 Mar. 2014 YTD (Total: 1,894) Mar. 2013 YTD (Total: 1,986)

100

Of course, the true lion of the Texas 0 coast was Houston with 48% of the total arrival traffic. Not only did March best the previous month by nearly 27%, but it saw 4% more arrivals than January – a rather impressive haul save for the fact that Houston still lags behind last year’s quarter by almost 5%. It is of note that the bulk of the yearto-date comparative deficit is attributable to chemical tankers and offshore tows. While the former had one of the highest vessel category increases for the month at 63.5%, 91 fewer chemical tankers - or 30% - have called upon Houston. The latter category’s arrival numbers registered its best month of the first quarter with a 31% gain but remains almost 50% off last year’s pace. It appears the offshore tow category for the port of Houston will continue to taper off as increased amounts of domestic crude flows into local refineries via rail and pipeline.

On the flip side of the export equation, tank vessel numbers continue to improve as evidenced by a 16% monthly gain and .5% upward creep for the quarter.

This was one of several vessel categories that recorded both monthly and year-to-date increases. Bulkers did quite well with 30% more vessel arrivals than the previous month and over 24% more traffic for the quarter.

Containers were the final category to improve for both the month and the quarter to the tune of 12% and 2% respectively. The category with the most torrid monthly rise was LPG at nearly 93%; however, that was not enough to erase its year-to-date deficit as it remains 5.6% below 2013’s first quarter.

On the import side of the ledger, general cargo enjoyed a respectable monthly gain of 6%, but this is a bit misleading as more cargo emerges from ever deeper holds. That being said, the quarterly count for these ships is still 10.5% under last year’s cumulative totals.

Overall, despite fog, vessel collisions and oil spills, March roared into the second quarter as Texas in general, and Houston in particular, once again demonstrated their resilience in the marine transportation arena. It is somewhat noteworthy that while the February vessel arrival trough was pronounced, it was less so than most years and the gains over January were also less than those same years. Thus, the first quarter January-toMarch spread preliminarily reflects a total vessel arrival count below that of the last two years but above 2011.

Nevertheless, this nascent assessment is artificially skewed due to greater tonnages from the same number of ships. This is also borne out by the evergrowing number of jobs that continues to drive down Texas’ unemployment rate. Thus, the lion’s roar should cause the momentum of the first quarter to bear more fruit through the late spring Port of Houston Authority of 2014. ò Houston: America’s Distribution Center www.portof houston.com/map

Greater Houston Port Bureau | 5

Leading with

Values

Matt Logan, GHPB Analyst

6 | May 2014

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Celebrating 18 years in the Port of Houston, the second generation takes the helm at Gulf Winds International.

Greater Houston Port Bureau | 7

G

ulf Winds International is a successful logistics company handling nearly ten percent of container cargo coming through the Port of Houston.

Gulf Winds’ story is fascinating: it was founded during a difficult time in 1996 on a leap of faith by Steve Stewart and his family after Steve was let go during a major steamship line merger at the age of 53.

At that time, faith played little to no role in company decision making. Two years into the company, everything changed, when Steve’s son Todd made a life changing decision to follow Christ. Steve Stewart later followed his son in a similar profession of faith at the age of 58. Today, faith is truly what guides the company. On the 18th anniversary of Gulf Winds’ founding, I had the pleasure of sitting down with its president, and second generation Gulf Winds executive, Todd Stewart.

In 1996 Steve Stewart used money saved in his 401K, money that was supposed to be for his retirement, to start a logistics company based in Houston. The move was truly a leap of faith which

8 | May 2014

would require the support of his entire family, including his son Todd who had recently graduated from Stephen F. Austin State University with a degree in Marketing.

Todd refers to his first couple years at the company as “cheap Todd Stewart, President of labor.” It quickly became evident that one of Gulf Gulf Winds International Winds’ major competitive advantages was its relationship with people, both clients and employees. Gulf Winds was also one of the first logistics companies to invest heavily in technology, because, as Todd put it, “It’s just as important to deliver information as it is to deliver goods.” Gulf Winds has gone from a company with one warehouse and one customer, to a company with seven warehouses, offices in Houston and Dallas, over 190 employees, and 300

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The Gulf Winds staff shows off their funds raised for International Cooperating Ministries.

Todd Stewart and his team enjoy the sights on a mission trip.

drivers.

After serving in these roles, Todd worked as the company’s General Manager, and then as Gulf Winds’ Vice President where he focused on business development and big-picture company issues. One of the things Todd values most about his time working at Gulf Winds is his opportunity to work alongside the company’s founder, and his father, Steve Stewart.

Todd Stewart was promoted to President of Gulf Winds International in September of 2012. Prior to that, Todd had worked at Gulf Winds in nearly every role in the company, including: at the warehouse driving a forklift; loading/unloading cargo; dispatch; customer service; accounting; safety; and sales.

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“I came to appreciate my dad as a tremendous asset to my career, and in my opinion I had 17 years of on-the-job training for my current role,” Todd said. In fact, when Todd was announced as the new President of Gulf Winds, Steve insisted on moving out of his office, and that Todd move into it. This showed anyone who walked into the Gulf Winds’ office that Todd had full authority and autonomy to run the company.

It was a move that made the transition seamless and

exemplified his father’s character.

The first thing Todd did as president was to update and confirm the company’s mission, vision, and values with the help of his leadership team. Gulf Winds’ mission is: “To Glorify God by providing worldclass logistics services through continual investment in our people, our clients, the community, and the world we live in.”

1571_GW_Port_Bureau_half-page_ad.indd 1

At Gulf Winds our business is always about

More than the Move.

By partnering with Gulf Winds, your dollar goes towards more than moving freight. Gulf Winds continually partners with ICM (International Cooperating Ministries) to build churches and orphanages all over the world. We believe our company’s mission shouldn’t just be reserved for office walls.

Our mission is to glorify God by providing world class logistics services through continual investment in our people, clients, community and the world we live in.

Let us not lose heart in doing good!

1/12/2011 1:58:59 PM

411 Brisbane Houston, TX 77061 866-597-4851 toll free | www.gwii.com

10 | May 2014

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Within seconds of initiating our conversation, Todd told me the success and the culture of Gulf Winds is a testament to God’s amazing grace and the incredible people that work there. “We start with our mission and our people, our processes and our success have followed.” Todd emphasizes three focus areas for all Gulf Winds team members: personal, professional, and spiritual growth.

Todd is at the top of a vibrant, young leadership team at Gulf Winds, but continues to remind the team that, “the first shall be last and the last shall be first.”

Todd chooses to lead the company through a servant leadership style, The oldest person in Gulf Winds’ executive team is only in their mid-forties. Todd sees a plethora of upcoming opportunities for Gulf Winds with its young leadership structure and servant leader mentality.

The challenge Todd has laid out for his executive team in 2014 is to drive an atmosphere of unity throughout the company. He says that much like every Gulf Winds employee, the executive team individually is a group of talented people, but when working in unison great strides are made. Already the challenge is being tackled, and the executive team reports they have learned to value what every part brings to the whole. Todd’s people-first

servant leadership style resonates in the halls and warehouses of Gulf Winds International.

Another contributor to Gulf Winds’ success is Houston and the surrounding area. In 2013, the Port of Houston moved over 2 million TEUs (twenty-foot equivalent unit containers).

With expansion projects underway for Bayport and Barbours Cut facilities on the Port of Houston and the Panama Canal expansion being completed later this year or early next year, container traffic has the potential to increase over the coming years. Todd described Gulf Winds’ location as an “incredible gift,” and that he is “excited about what’s to come.”

At Gulf Winds, most meetings begin with prayer, and many times a devotional centered on biblical values. Todd says beginning with values gets everyone’s perspective in the right place to foster decisions as to what is best for the mission and people as opposed to the bottom line. At the end of the day at Gulf Winds, it’s all about the people, both internally and externally.

Todd says his team sees Gulf Winds’ primary sustainable advantages as their mission, people, vision, and values, and he agrees!

While the atmosphere at Gulf Winds is people and value focused, they are still overwhelmingly committed to being the best logistics company in the industry, not only in Texas or the U.S., but the best in the world. Gulf Winds has no problem bringing in the right people to ensure work is being done to the highest standard. “One of our greatest strengths,” Todd said, “is realizing we don’t always have all the right answers, so we bring in someone who will get us to where we need to be.”

Todd says, “Apart from the Lord’s leading and the people at Gulf Winds, I could do nothing.” Gulf Winds has found other companies and organizations all over the country that have similar missions. Gulf Winds is a member of C12, which is an organization of Christianbased owners and CEOs who meet on a monthly basis to share best practices and offer each other support to “build great businesses for a greater purpose.”

There was a time when Todd thought of going into full-time ministry work. After praying about it, Todd soon realized he had the resources and capabilities at Gulf Winds to touch just

The Story Behind the Logo

Gulf Winds International changed its logo in 2010. At first glance, the new logo seems straightforward enough: green land surrounded by blue water, and lines pointing North, South, East, and West.

Actually, the logo is a Native American symbol for wind. Wind has not only historically represented the shipping industry, but also is rooted in the Bible. As company President Todd Stewart describes it, “As it is in the Bible, so has it been in our company. John 3:8 says, ‘The wind blows where it wishes and you hear the sound of it, but do not know where it comes from and where it is going; so it is with everyone who is born of the spirit.’ We set out to build a business and God worked within our hearts to mold us and change us to be used of him. He is our guide and his spirit blows us where he desires.”

The blue signifies water, but for Gulf Winds the water signifies God’s cleansing work in our lives and his blessing on our company and those around us. The white lines that separate the wind do point North, South, East, and West, but also reminders that we are called to “go and make disciples of all nations, baptizing them in the name of the Father and the Son and the Holy Spirit.” (Matthew 28:18) The mixture of biblical and nautical symbols in its logo is paramount to the focus at Gulf Winds on its Mission, Vision, and Values.

Todd Stewart explains, “No doubt, the Gospel is the story of our company. It is fitting that we utilize wind and water as the key elements in our new logo.”

Greater Houston Port Bureau | 11

would have never had before.”

The next trip will be to a small village in Bolivia. Clients have even started enquiring about the trips and, for the first time, a Gulf Winds customer will join a trip to Guatemala later this year.

Gulf Winds cyclers celebrate at the MS150 finish in Austin. as many, if not more, lives than he would in ministry.

Todd says since he had this revelation, he hasn’t worked a day in his life and believes he is in full-time ministry.

One of Todd’s most successful initiatives at Gulf Winds is company sponsored mission trips. For over three years, Gulf Winds has taken employees to thirdworld countries to build orphanages and churches.

These trips have served over nine communities in three different countries. The program has become so popular with its employees that Gulf Winds will embark on three different trips this year. Gulf Winds employee Summer Reeves best sums up the company’s mission trips when talking about a recent trip to Colombia: “To start the trip I was very skeptical. I was all for orphanages, but do we really need to raise money for churches?... As we started touring the different facilities, what I realized was that this isn’t about religion or buildings, this is about community outreach. Children of ALL ages (some barely over a year) run through the streets because they have no other place to go…

Children born into these poor areas have a very high likelihood of getting into drugs, gangs, and prostitution because that is the easiest money, and it’s all around them. Places like Blue House (one of our sponsored projects) have food programs, after-school programs, and job training for older children and adults... Whether we’re building an orphanage or a church, all the money is going to helping children and families to have a chance at a life they 12 | May 2014

Todd makes sure Gulf Winds is active in the local community as well. They support local charities like the Houston Food Bank, Elijah Rising, which fights human trafficking in Houston and across the U.S., the MS150, and Cristo Rey Jesuit School. Along with local charities they are active members of ICM (International Cooperating Ministries), Every Village, CFC (Community Faith Centers), My Life Speaks, and Bridges International.

Gulf Winds also sponsors and participates in events for FCA (Fellowship of Christian Athletes), and Campus Crusade for Christ. Later this year, Gulf Winds will help support the organizations they support by wrapping some of their trailers with logos of these charities.

Todd says above anything else, he is grateful for what he gets to do every day. “On paper, it doesn’t add up,” he says, “but God keeps providing, including sending us awesome employees, clients and vendors!

The real reason it’s all possible, and my greatest thanks, would be to Jesus Christ for changing my life. He continues to teach me that it’s not about me, but about showing His love to others in word and deed. Sometimes I get it right and other times I fail.

(Below) Gulf Winds 2013 mission trip to Colombia.

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Thankfully, He is gracious and loving when I fall short. Over the last year and a half, I am learning that the only way up as a leader is to go down. We are who we are today as a company because I use His standard as our target.”

Todd also doesn’t like the term “prosperity gospel,” and says what he gets to do at Gulf Winds is worth it no matter what. He says what he enjoys the most, and his fondest memories, are the people he gets to deal with every day. He is also excited about what’s on the horizon for Gulf Winds. As he put it, “We have a great opportunity to keep getting better and positively impact the world we live in.”

Gulf Winds’ philosophy and business approach is unorthodox in today’s business world. No matter your ideologies or beliefs, there is no denying that Gulf Winds’ model has worked thus far. A company that moved a handful of containers in 1996 will move over 150,000 this year.

Employees love Gulf Winds’ philosophy as well. They hardly ever lose an employee to another company and their driver turnover rate is 14%, easily besting the industry average. With leaders like Todd Stewart and a bright young executive team and support staff, Gulf Winds’ future success will benefit not only its employees and clients, but the Houston community and countless communities around the world.

For more information on charitable organizations Gulf Winds International is associated with, or to get involved, you can visit: www. gwii.com/charitable-efforts. ò

Greater Houston Port Bureau | 13

April 2014 Commerce Club With RADM James Watson (Ret.) President/COO, ABS Patrick Seeba, GHPB

O

n Thursday, May 10, RADM James Watson, USCG (Ret.), spoke to the Commerce Club about the multitude of obligations facing class societies as they tackle the challenges of promoting the security of life, property, and natural environment through the development and verification of standards for the design, construction, and operational maintenance of marine-related facilities.

Explaining that class societies make no comments as to the economic viability of vessels, RADM Watson discussed the ways that ABS works to ensure that vessels are able to function to the standards established when a ship is classed, including design approval, sea trial observation, and work as a designated agent for the Coast Guard for initiatives such as the Alternative Compliance Program.ò The remaining luncheon speakers for this year are: • May 8, 2014: Wolfgang Freese - President, Hapag-Lloyd • June 12, 2014: Rick Shannon - President, Atlantic Ro-Ro Carriers

14 | May 2014

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• July 10, 2014: Janiece Longoria - Chairman, Port Commission • September 11, 2014: David Grzebinski, CFA CEO, Kirby Corporation

Above Left: GHPB Board Members Bernt Netland, ITC and Steve Stewart, Gulf Winds, Int’l speak with another guest.

Above Right: Joanna Carlson, Office of Congressman Ted Poe; Peter Higginbotham, ABS Americas; and L.W. Eitelbach, Bludworth Marine.

Left: Jim Andrews, G&H Towing speaks with David Clark, Targa Resources.

Opposite, Above: RADM Watson addresses the crowd.

Opposite, Below: RADM Watson fields questions from the floor during the Q & A session.

Commerce Club Sponsors:

Greater Houston Port Bureau | 15

Port of Houston Showed Its Strength as an Export Port in 2013 Christine Schlenker, GHPB

Top 10 Trading Partners with

4TotalGermany Trade: $

Trade Balance: -$

Netherlands 7 Total Trade: $6,567,071,712

Trade Balance: $3,934,748,092

Mexico 1 Total Trade: $21,501,549,279

Trade Balance: -$5,045,038,109 Venezuela 6 Total Trade: $6,697,228,961 Trade Balance: $3,198,937,383

Colombia 5 Total Trade: $6,809,809,407 Trade Balance: $1,259,682,931

8

Saudi Ar Total Trad Trade Balan

Brazil 2 Total Trade: $11,192,579,96

Trade Balance: $5,346,071,68

16 | May 2014

www.txgulf.org

Quick Facts for 2013: • Houston’s Total Foreign Trade: $168.4 B • Exports: $94.08 B; 77.4 million metric tons • Imports: $74.37 B; 70.4 million metric tons

$7,006,727,178 $4,139,753,002

© LOUIS VEST

h the Port of Houston in 2013

10TotalRussia Trade: $4,691,778,762

Trade Balance: -$1,728,985,186

China 3 Total Trade: $7,808,056,326 Trade Balance: -$718,380,686

South Korea 9 Total Trade: $4,707,876,913 Trade Balance: -$674,840,335

rabia de: $5,893,967,473 nce: -$2,037,616,133

67 89

Based on GHPB analysis of U.S. Census data for foreign trade.

Greater Houston Port Bureau | 17

Based on Greater Houston Port Bureau analysis of foreign trade data from the U.S. Bureau, total waterborne foreign trade with the Port of Houston decreased 4.6% by value between 2012 and 2013, but increased 0.6% by tonnage. By value, Houston experienced a drop in imports by 10.8% but kept steady on the export side with a 0.9% increase. Houston trade took a huge swing between 2012 and 2013. Already known as an “export port,” Houston bolstered that image with increasing its positive trade balance by almost $10 billion, up to $19.7 billion in 2013. For reference, U.S. waterborne ports as a whole faced a trade deficit of over $550 billion, an 8% improvement over 2012’s $597 billion deficit.

The decrease in foreign trade in mostly due to the increase in locally-sourced crude and natural gas feedstocks. Houston’s decrease in mineral fuel imports by tonnage, driven almost entirely by crude oil, decreased by more than the total decrease in import tonnage last year. Mineral fuels dropped by 6.1 million metric tons compared to Houston’s total drop of 4.9 million metric tons. Some of the lost tonnage was made up in the break bulk and ro-ro markets, primarily with aluminum

18 | May 2014

Port of Houston’s Top Trading Partners in 2012 Rank

Country World Total 1 Mexico 2 Brazil 3 Venezuela 4 Germany 5 India 6 China 7 Colombia 8 Netherlands 9 Russia 10 Saudi Arabia

2012 Total Trade $176,566,951,248 $24,052,798,152 $10,499,925,245 $8,753,600,883 $7,070,551,277 $6,748,961,647 $6,748,194,849 $6,678,607,781 $6,262,163,869 $5,561,768,808 $5,491,641,845

products and passenger vehicles, and with an increase in organic chemicals imports.

Nine of Houston top ten trading partners remained the same between 2012 and 2013, with India falling out of the top 10 and South Korea taking its place. ò

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Greater Houston Port Bureau | 19

U.S. Transportation Secretary Foxx Names New Members to Maritime Industry Advisory Panel

U

.S. Transportation Secretary Anthony Foxx announced the appointment of 10 new members to the Marine Transportation System National Advisory Council (MTSNAC) on April 4, 2014. Established in 2010, MTSNAC is comprised of leaders from commercial transportation firms, trade associations, state and local public entities, labor organizations, academics, and environmental groups that advise the Secretary on policies to ensure that U.S. Transportation Secretary the U.S. Marine Transportation System Anthony Foxx

is capable of responding to projected trade increases.

“The Obama Administration is committed to ensuring that America’s ports and waterways are capable of meeting the growing demands of moving freight in the 21st century,” said Secretary Foxx. “This advisory council will help guide us as we continue to invest in American transportation and in America’s future.”

Since 2009, this Administration has awarded over $420 million in TIGER

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funds to 33 ports and marine highway projects. These projects are large and small – inland and coastal, and handle 75 percent of America’s exports and imports.

These investments have helped the maritime industry move these exports and imports by water, waterborne transport, and maritime industrial services, which play a vital role in our nation’s economy.MTSNAC policy recommendations have led to the expansion of the Marine Transportation System, the integration of Marine Highways in the surface transportation system and the improvement and streamlining of the Title XI ship financing process.

“This Council is an excellent example of a coordinated approach with the private sector,” Acting Maritime Administrator Paul N. Jaenichen said. “Their expertise and insight inform key decisions as we work to spark growth and ensure the greater efficiency of our Marine Transportation System.”

MTSNAC is comprised of 29 members from commercial transportation firms, trade associations, state and local entities, labor organizations, academics and environmental groups. Council members will serve 2-year terms, with no more than two consecutive term re¬appointments, and approximately one-third of members’ terms of office shall expire every 2 years.

The Department strives to select dynamic individuals with in-depth knowledge of their respective industries or government sectors. Members are nominated through a full and open process published in the Federal Register.

• •

The new members are:

Betty Sutton, Administrator, Saint Lawrence Seaway Development Corporation (SLSDC), Washington, D.C.

William Cook, Director, Worldwide Logistics and Customs, Chrysler Group, LLC, Auburn Hills, Mich.

• Wayne Darbeau, President and CEO, San Diego United Port District, San Diego, Calif.

• Gary Lee Moore, Interim Executive Director, Port of Los Angeles, Los Angeles, Calif.

• Captain Lynn Korwatch, Executive Director, Marine Exchange of the San Francisco Bay Region, San Francisco, Calif.

• Charles Fabrikant, Executive Chairman, SEACOR Holdings, Inc., Fort Lauderdale, Fla. • Kevin Schoeben, Deputy Director, Office of Planning and Programming, Illinois Department of Transportation, Springfield, Ill.

• William Friedman, President and CEO, ClevelandCuyahoga County Port Authority, Cleveland, Ohio • Gary Love, Vice President for Sales and Marketing at FAPS, Inc., Port Newark, N.J. • Richard Berkowitz, Director of Pacific Coast Operations, Transportation Institute, Seattle, Wash. ò

The above information was provided as a news release by the U.S. Department of Transportation Maritime Administration.

Greater Houston Port Bureau | 21

Port of Galveston Approves New Contract with Carnival Cruise Lines Judith Schultz, GHPB

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he Port of Galveston’s Board of Trustees approved a new contract with Carnival Cruise Lines on April 28, 2014. According to an article published in the Galveston County Daily News, the new contract includes the homeporting of a third Carnival vessel and extends the cruise line’s commitment to Galveston to December 2022, with an option for one six-year renewal period. The agreement accommodates a generous increase in dock revenue and substantial marketing plans for the island.

Carnival began promoting a new offering on April 7 of 10- and 11-day cruises between Galveston and San Juan, featuring visits to six different Caribbean destinations on one itinerary. The 11-day cruises embark from Galveston on the Carnival Triumph on October 24, 2015 and January 16, 2016; the 10-day cruises sail November 5, 2015 and January 27, 2016.

Earlier this year, the Port of Galveston completed a five-year agreement with Royal Caribbean Cruises Ltd. Under that agreement, Royal Caribbean agreed to an additional 30 calls in 2014 and 2015 and a promise to bring a larger vessel to the port when improvements to Cruise Terminal No.2 are completed. As part of the new contract, the Port of Galveston agreed to expand Cruise Terminal No. 2 to 150,000 square feet, with the capacity to seat about 1,000.

The Port of Galveston, Texas’ Star Cruise Port serves as the primary point of embarkation for cruises to the western Caribbean and the Bahamas and handles over one million cruise passengers annually. At present, the Port of Galveston is the homeport to Carnival Cruise Lines’ Carnival Magic and Carnival Triumph, and Royal Caribbean International’s Navigator of the Seas. The Port of Galveston ranks as the 4th busiest cruise port in the United States and one of the top twenty cruise ports in the world. ò

BARGING AHEAD ever so politely.

B

Buffalo Marine Service, Inc. 22 | May 2014

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Roll-On / Roll-Off terminal - New vehicle imports

Imported wind turbine towers departing the port by rail

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Greater Houston Port Bureau | 23

GHPB Announces Round-Table Discussion Series for 2014-2015

T

he Greater Houston Port Bureau (GHPB) is committed to providing the best possible support to our members and the maritime community.

Round-table discussions are a great way for us to stay in-tune with what is happening in industry. A panel of 8-12 industry professionals will have the opportunity in a closed-door and completely confidential session to discuss any issues they see facing a particular industry.

The discussions are also an opportunity for you to let us know how the Port Bureau can better aid the industry.

With the heavy amount of oil and tanker vessels that traverse the Houston Ship Channel, GHPB has decided to cover this industry for our first round-table.

The event will take place in the GHPB board room and will last no longer than 90 minutes. A high quality lunch will be provided for all participants.

If you, or any other oil and tanking industry colleagues, are interested in participating in the upcoming

round-table, please contact Matt Logan by email, mlogan@txgulf.org, or by phone (713) 670-1267. A diverse panel is preferred, and panel participants will be chosen

by GHPB staff and contacted by email with further information.

Get involved, get informed and get better at business with the Greater Houston Port Bureau. ò

2014-15 Round Tables June 2014 – Oil & Tanking October 2014 – Dry Bulk February 2015 – Break Bulk June 2015 – Container Ships October 2015 – RO-RO & PCC

Note: Topics and dates subject to change

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For more information on how Trustmark can assist you, please contact one of our experienced lenders.

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24 | May 2014

Jeff Deutsch Senior Vice President, Corporate Banking Manager 713.827.3717 JDeutsch@trustmark.com

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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.

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The 85th Annual Maritime Dinner Honoring Ned Holmes Saturday, August 16, 2014 at 5:30 p.m.

Bayou City Event Center | 9401 Knight Road, Houston, Texas

For registration and sponsorship information: (713) 678-4300 or ghpbdinner@txgulf.org

Admiral

Queen of the Fleet

Event Sponsors

Photo Booth Sponsor:

Bar Sponsor:

Charles Flournoy

Commodore Amegy Bank Argosy Transportation Group Blades International Ceres Gulf Frost Bank Houston Fuel Oil

Honoree Gift Sponsor: Gulf Winds International

Houston Mooring Manchester Terminal Moran Gulf Shipping Shamrock Marine Suderman & Young Towing Vopak Watco Co. Greens Port

Captain AllTrans Port Services, Inc. E Houston Reg medical center / Central Healthcare Services Biehl & Co., LP Equipment Depot Briggs & Veselka Co. ExxonMobil Citibank Gulf Stream Marine Colliers International HDR Engineering Cooper/T. Smith Hub International Danner’s Incorporated 26 | May 2014

Insurance Services JPMorgan Chase Bank Mare Liberum Norton lilly Odfjell USA Ports America Port of Galveston Port of Texas City Rickmers-Linie

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San Jacinto College SchrĂśder Marine Services Shrader Engineering Targa Resources Texas Mooring University of Houston West Gulf Maritime Association

Hapag-Lloyd and CSAV Agree to Merge CSAV becomes new core shareholder of Hapag-Lloyd Hapag-Lloyd becomes the world’s fourth-largest liner shipping company

H

apag-Lloyd AG and Compañía Sud Americana de Vapores (CSAV)signed a binding contract on April 16, 2014 to merge CSAV’s entire container business with Hapag-Lloyd, subject to the necessary approvals. According to a press release issued

by Hapag-Lloyd AG Group Communications, the new Hapag-Lloyd will rank among the four largest liner shipping companies in the world following the integration, with some 200 vessels with total transport capacity

Michael Behrendt, Chairman of the Executive Board of Hapag-Lloyd (left), and Oscar Hasbún, CEO of CSAV, at Ballin House (Hapag-Lloyd headquarters) in Hamburg after the signing

Sea & Shore

Ship & Store

www.odfjell.com

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.

Greater Houston Port Bureau | 27

of around one million TEU, an annual transport volume of 7.5 million TEU and a combined turnover of 9 billion Euro. The company’s head office will remain in Hamburg. In addition, Hapag-Lloyd will have a strong regional office in Chile for its Latin America business.

In return for contributing its container business, CSAV will become a new Hapag-Lloyd core shareholder besides HGV (City of Hamburg) and Kühne Maritime. CSAV will initially hold a 30% stake in the combined entity. The partners have agreed on a capital increase of EUR 370 million once the transaction has been concluded, to which CSAV will contribute EUR 259 million. This will then increase CSAV’s share of Hapag-Lloyd to 34%. A second capital increase of EUR 370 million will be linked to Hapag-Lloyd’s planned stock exchange listing.

“I am delighted that we have succeeded in concluding this partnership through which our two companies are playing an active part in consolidating the liner shipping industry. This day is an important milestone in the history of Hapag-Lloyd,” said Michael Behrendt, Chairman of the Executive Board of Hapag-Lloyd,

28 | May 2014

upon signing the agreement. “The transaction increases the value of the Company and therefore also the value of our shareholders’ shares.”

“By joining forces, we are creating a stronger, larger and more global company with significant economies of scale and a considerably improved competitive position,” said Oscar Hasbún, CEO of CSAV. The combination of CSAV’s container shipping business with Hapag-Lloyd will result in annual synergies of at least USD 300 million. Service networks and fleets of both companies complement one another ideally. “The combination with CSAV, Latin America’s leading container shipping line, considerably strengthens Hapag-Lloyd in this growth market and adds a strong position in the North-South traffic to the company’s global network and to its established strength in East-West traffics”, said Oscar Hasbún.

Order books are also complementary: While, at the end of April, Hapag-Lloyd will have put into service the last of ten 13,200 TEU vessels ordered for the Far East trade, CSAV still has seven vessels, each of 9,300 TEU, scheduled for delivery in 2014 and 2015. These

www.txgulf.org

container ships are specially designed for the South American trade. “This means that we will have a young and cost-efficient fleet. The use of optimum tonnage in the trades is one of the key prerequisites for successful operations in the face of international competition,” said Oscar Hasbún.

Both companies also fit in other regards: CSAV, founded in 1872, and Hapag-Lloyd, founded in 1847, share a similar blend of long tradition and entrepreneurial vision for the future.

“By integrating CSAV’s container business, Hapag-Lloyd is able to build on its strengths and is therefore in an excellent position for future growth,” said Michael Behrendt, adding: “This combination will further strengthen our service portfolio and enable us to deliver an even better global service to our clients.” ò

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CAPT Thomas Paul Marian, USCGR (Ret.) christens his namesake towboat as son, Tom Marian looks on.

30 | May 2014

www.txgulf.org

M/V CAPT THOMAS PAUL Christened at Bridge City Judith Schultz, GHPB

C

APT Thomas Paul Marian, USCGR (Ret.) christened his namesake towboat at Thousand Foot Cut in Bridge City, Texas on April, 25, 2014.

The christening and blessing ceremony of the new CLM Towing vessel was hosted by Thousand Foot Cut Marine Services and CLM Towing. A tour of the vessel and a pier-side reception followed the ceremony.

western New York as the Group Commander.

The christening of the M/V CAPT THOMAS PAUL was a sight to behold as CAPT Marian managed to shower nearby observers with a plume of champagne from the christening bottle. As the champagne was dripping from his son, he quipped: “That is the least I could do to someone CAPT Marian, the father of Tom Marian, General that completely surprised me with such an honor.

Counsel of Buffalo Marine Service, served in the U. S. Of course, I hope he splurged for a good bottle of Coast Guard for 24 years. During his tenure of service, champagne since I want my namesake to only enjoy the best.”

CAPT Marian held a variety of positions in marine safety, afloat, and shore side operations communities Indeed, CAPT Marian was unaware of the name from southern California to Shinnecock, New York. of the new CLM Towing pushboat until he arrived at His final tour entailed overseeing all reserve units in the christening.ò

Greater Houston Port Bureau | 31

Advertising Directory Bank of Texas................... 25 Blades International............ 18 Blank Rome LLP...................13 Briggs Equipment................ 29 Buffalo Marine Service........ 22 Cargoways.......................19 Clark Freight....................... 20 Gulf Winds International...... 10 HDR................................... 21 Houston Pilots..................... 20

McCarthy............................ 28 Odfjell................................. 27 Port of Galveston.............. 23 Port of Houston Authority..... 5 Richardson Companies........ 31 Shrader Engineering............. 8 Trustmark National Bank..... 24 Vopak.................................. 30 Whitney Bank........................9 Wortham Insurance............. 30

Greater Houston Port Bureau www.txgulf.org 111 East Loop North Houston, TX 77029 T. +713-678-4300 F. +713-678-4839

Greater Houston Port Bureau

2014 Board of Directors

Dennis Hansell, Chairman Suderman & Young Towing Co, LLC Steve Stewart, 1st Vice Chairman Gulf Winds International, Inc. Bernt Netland, 2nd Vice Chairman Intercontinental Terminals Co., LLC John Taylor, Secretary-Treasurer Houston Mooring Company, Inc. Tom Marian, Immediate Past Chairman Buffalo Marine Service, Inc. April Bailey, Executive Committee Amegy Bank NA Charles H. Flournoy, Executive Committee John L. Wortham & Son, LLP Roger Guenther, Excecutive Committee Port of Houston Authority Capt. Mike Morris, Executive Committe Houston Pilots Capt. John G. Peterlin III, Executive Committee Port of Galveston Vinny Pilegge, Executive Committee Manchester Terminal, LLC Nolan Richardson, Executive Committee Richardson Companies

Capt. Richard Russell, Executive Committee AET, Inc. Robert Baker, ExxonMobil Baytown Refinery Jim Black, Moran Gulf Shipping Robert H. Blades, Blades International, Inc. Capt. Tim J. Downs, Shell Trading (US) Company Tim Haas, Watco Companies Greens Port Industrial Park Jason Hayley, Port of Texas City John Heimsath, ACM Logistics & Consulting, Inc. Mehdi Hejazi, Norton Lilly International Kevin Hickey, Targa Resources Guy W. Hitt, Frost Bank Charlie Jenkins, Port of Houston Authority Mike Mangan, Houston Fuel Oil Terminal Co. Brad Maxcey, Danner’s Inc. Albert (Bert) Noggle, Odfjell Holdings (US) Inc. John W. Schlosser, Kinder Morgan Terminals Robert Schwarz, Texas Terminals LP Colin Scott, Vopak Terminal Deer Park Inc. Capt. Christos Sotirelis, Galveston-Texas City Pilots Tim Studdert, Shamrock Marine