April 2012

Port Bureau News April 2012

www.txgulf.org

Dredging Keeping a Twelve-Foot Ditch Dug to Forty-Five Feet Comparative Costs and the Budgetary Process

HarborLights Expands to Galveston-TX City Check out Our App in the Apple iPad App Store!

Spotlight on Captain Bill Hennessey Marine Manager—ExxonMobil Baytown Refinery

Port Bureau Staff Bill Diehl Jeannie Angeli David Cooley Al Cusick Cristina Gomez Janette Molina Patrick Seeba Josh Whitehead

Board of Directors *Dennis Hansell—Chairman *Steve Stewart—1st Vice Chair *Capt. Bill Hennessey—2nd Vice Chair *John Taylor—Sec./Treas. *Tom Marian—Immediate Past Chair *David Ellis *Charles H. Flournoy *Capt. John G. Peterlin III *Vinny Pilegge *Nolan Richardson *Capt. Richard Russell *Captain Robert Thompson *Len Waterworth *Nathan Wesely April Bailey Jim Black Robert Blades Ken Burnett Mike Drieu Celeste Harris Jason Hayley Mehdi Hejazi Kevin Hickey Guy W. Hitt Charlie Jenkins Brad Maxcey Jerry Nagel Bernt Netland Lloyd Schwing Colin Scott Capt. Christos Sotirelis Tim Studdert *Denotes Executive Committee Members

Captain’s Corner 00

Howdy

The rodeo—there’s an organization that gets it. Every year, the Rodeo Committees get together and have a good time while doing good for the community by putting on the world’s largest livestock show and rodeo in support of scholarships, education, and getting kids more involved in the business. I first heard about the Houston Rodeo in Panama from the Canal Administrator, Alberto Aleman (an Aggie). When Mr. Aleman learned about my assignment to Houston, he said: “You have to go to the rodeo.

It is so impressive—and it is mostly staffed by volunteers.”

When I came to Houston, I made sure to follow his advice, and he was right; the size and scope of the event is awe-inspiring. Since 1957, the Houston Livestock Show and Rodeo has awarded more than $100 million in scholarships, seen more than 2,000,000 attendees a year, and uses more than 24,000 volunteers over it’s nearly three week annual run. On an average day, 50,000 people converge on the grounds of the old Astrodome to learn about the industry, see exciting events like bull and bronco riding, and have fun at the carnival doing everything from eating fried treats (who knew that Deep-Fried Mozzarella Sticks were vegetables?) to watching 8 year olds mount a running sheep with a flak jacket and helmet trying to outlast their friends.

What made me think about the Rodeo’s volunteer spirit was our recent Board of Directors election, which was going on as the rodeo was wrapping up. On our Board, we have busy business leaders volunteering their time, energy and resources to promote our maritime community. The whole concept behind the Port Bureau is that if we can work together to bring more cargo to the region, we benefit everyone who works on the waterfront from the facilities, tugs, stevedores, agents, to the communities in which we all live and work. Like the rodeo, doing good for the community at large is the focus of Port Bureau Board meetings and it has worked well for us for over 80 years.

With the new Board Member election comes change and we are very pleased to announce our new Board Directors and Officers later in the magazine. I also want to extend my public congratulations to Dennis Hansell from Suderman & Young Towing who will take over as the Chairman of our Board and my thanks to Tom Marian who served in that role throughout my time here at the Port Bureau.

Tom’s leadership and dedication have drawn recognition from across the port community. At the Port of Houston Authority’s March Commissioner Meeting Chairman Jim Edmonds gave a very nice acknowledgment to Tom, comments which drew a standing ovation as he recognized Tom’s leadership during his six year tenure as the Chairman of the Port Bureau.

When Tom took the reins of the Port Bureau in 2006 the Port Bureau was in trouble and losing financial and membership support; Tom spent a significant amount of time working with staff and the board devising ways to refocus the Port Bureau to make it relevant and solvent. Through three organizational presidents, Tom addressed difficult decisions and stemmed the tide of negative cash flow. The organization is now on the right track and making a positive impact in the Port Community, membership has grown by 50% and the professionalism and progress of your Port Bureau products and services are a direct result of Tom's leadership and dedication.

Tom will stay on as Immediate Past Chairman, but there are several Directors leaving the Board after many years of faithful service, and I would like to acknowledge and extend my appreciation to them: · Don Welch: (1996—2012), Chair (2002—2006) · Armando Waterland (1996—2012) · Jan Crittenden (2002—2012) · Earl Smith (2006—2012) · Lawrence Waldron (2009—2012) · Shareen Larmond (2010—2012) Mr. Aleman was right—volunteers are impressive. I am extremely grateful to the volunteers that give their time to help the Port Bureau promote our maritime community; they make the Port a joy to work in.

Dredging Fifty Miles Long: Keeping Houston Ship Channel a 45 Foot Ditch through a Seven Foot Pond

All Photos Courtesy of the United States Army Noted—All Corps of Engineers Unless PhotosUnless Courtesy of Captain Lou Vest, Houston Pilots Association Otherwise Noted

Dredging: An excavation activity generally undertaken underwater in shallow seas or fresh water areas with the purpose of removing bottom sediments for disposal at a different location or artificially deepening the seabed to improve access.

Put more simply: digging a ditch at the bottom of the sea. But as every child who has used his fingers to dig a moat around a beach sand-castle knows: digging a ditch through wet sand requires careful work to keep the pathway clear and deep.

Background Following the Civil War (referenced in the University of Texas’ historical literature on Galveston Bay as The War of Southern Independence), luxury steamboat traffic between Houston and Galveston picked up and by 1874, Commodore Charles Morgan decided to move eight dredges and a fleet of barges and tugs to widen Buffalo Bayou from Galveston Bay to Houston. Now, with a new land cut at Morgan’s Point and a channel 120’ wide by 9’ deep (quickly deepened to 12’ by 1876), the Army Corps of Engineers began entertaining project bids to deepen and widen the channel, however funding for dredging was eliminated in 1888, as Congress decided that the channel’s “lack of permanence” didn’t justify further expenditure.

When the Great Galveston Hurricane of 1900 swept ashore killing 8,000 and wrecking havoc on the barrier island, work was already underway to fulfill a congressionally directed surveying and planning project to dig the channel to 25’ from the Galveston Jetties to Houston. The 58-mile plan included extensive work on the nine-miles of waterway between the city center and the Turning Basin which was never fully realized.

The Jetties between Galveston and Bolivar in 1887 However, by 1937, twenty-four years after being christened the Houston Ship Channel, dredging was complete to accommodate post-WWI petroleum tankers and the channel dimensions reached 32’x400’ across the bay. This capital dredging also resulted in the expansion of the Texas City Channel from 16’ to 30’x800’ by 1931. The fledgling Ship Channels, connected to the newly enlarged An Early Dredge Works Galveston Bay 9’x100’ Intracoastal Waterway spurred industrial trade in products ranging from cotton and petroleum to rice, lumber and sulfur.

Source: Soon, the silt-loaded curUniversity of Texas

rents crossing the channels ensured that dredging would need to be regularly undertaken, so the first dedicated dredge disposal sites were constructed. In addition to holding dredge material, these dikes and additions to the Red Fish Bar protected the channel from natural silt transport.

Today, the Houston Ship Channel cuts through Galveston Bay providing access to the most heavily travelled commercial harbor in the nation. While the Bay’s average depth holds steady at only seven feet, the 8,000 deep-draft vessels a year and 200,000 barges traverse a forty-five foot channel that requires constant maintenance to avoid sand and sediment building up and restricting the flow of traffic. If Dredges Washington and Pensacola Finish Work on the Turning Basin (1912) the natural currents of Galveston Bay weren’t enough, a series of smaller waterways (like Buffalo Bayou running from west of downtown to the Turning Basin, or Sims Bayou cutting a swatch through the southern half of the city) constantly drain into the channel depositing sediment, rainwaters and particulate buildup raising the channel’s depth more, creating shoaling and sandbars. Not a phenomenon unique to Houston, almost all of the nation’s ports and waterways require periodic maintenance dredging, which is overseen by the US Army Corps of Engineers.

Dredging Basics The Corps of Engineers dredges more than 200 million cubic yards of material from 926 coastal, Great Lakes, and inland harbors every year. The material includes sediment from each of the 137 ports which each move over 1,000,000 tons annually, as well as numerous smaller reefs and harbors. Completed in 2005, the most recent Houston Ship Channel deepening and widening project removed more than 60 million cubic yards of new material during the initial build phase and engineers expect to remove more than 190 million cubic yards of silt and sediment over the next fifty years. This excavation will be carried out by dredges—machines configured to scoop, scrape or suck the bottom of the sea into waiting containers where it can be used later for land reclamation, dike construction, wetland/habitat development and other beneficial use activities and construction projects.

Dredging activity is generally separated into two categories—Capital dredging and Maintenance dredging. Capital dredging—digging out a new harbor, berth, waterway or digging out existing passages, usually involves hard material and high volumes. Maintenance dredging, which can cost less than half of capital dredging when comparing dollars per cubic meter, is used to maintain existing navigable waterways by clearing sediment, sand and mud which accumulates through drainage, usage, or the physical characteristics of each particular channel.

The type of dredge used depends on the environment of each job. Hopper dredges are large ships that perform jobs that smaller dredges would find potentially hazardous due to the conditions in which they operate such as offshore dredge work, clear the mouths of major rivers and open new channels as they move slowly across their area of operations. Using hydraulically powered pumps operating like large vacuum cleaners, sucking sediment and material mixed with water from the sea floor, hopper dredges drain water from the slurry and Hopper Dredge Operations Hopper Dredge at Sea pump the water back to sea before depositing dredged material into onboard containers (hoppers). After the hoppers are full, the vessel moves to a dredge disposal site, and opens the clamshell-like doors at the bottom of the ship , spilling sediment into a waiting basin or inlet.

Hopper barges like the United States Army Corps of Engineers vessel Wheeler, can dredge more than 100,000 cubic yards of material per trip from a project site. Because of their size and

So What Comes Up Off the Ocean Floor?

Rock Rock may vary from soft marl and weak rocks (for example, sandstone and coral) to hard rock (such as granite and basalt).

Rock is usually not contaminated and a valuable construction material and used for both terrestrial and aquatic projects.

Gravel and Sand Gravel and sand are generally not contaminated and considered the most valuable materials derived from a dredging project.

Gravel and sand are suitable for most engineering uses without processing, but freshwater washing may be needed for certain agricultural or product uses. Granular material can be used for beach nourishment, parks, turtle nesting beaches, bird nesting islands, wetlands restoration and establishment, and many other applications.

Consolidated Clay Consolidated clay varies from hard to soft clay, is generally not contaminated, and is material obtained from capital dredging.

The material may occur as lumps or as a homogeneous mixture of water and clay, depending on the material type and the dredging equipment used. If the water content is high, dredged clay may have to be dewatered before being transported. Possible uses of consolidated clay range from forming industrial products, such as bricks and ceramics, to building erosion control structures, such as dikes and berms.

Silt/Soft Clay Silt and soft clay are the most common materials acquired from maintenance dredging in rivers, canals, and ports. These materials are most suitable for agricultural purposes (such as topsoil) and all forms of wildlife habitat development. Depending on national regulations and laws, mildly contaminated silt and soft clay may be used for some engineered uses or product uses such as bricks, tiles, and ceramics. Because of the high water content, silt and soft clay must be dewatered for any product use and can require months or years and, depending on the Silt—The Most Commonly Acquired Material From Maintenance Dredging draining process used, can require temporary storage.

Mixture (rock/sand/silt/soft clay) Capital dredged material usually occurs in layers as deposited from some past hydraulic process and may require the use of different dredging methods. Maintenance dredged material is usually a mixture of materials such as boulders, lumps of clay, gravel, organic matter, and shells, with varying densities. Even though engineered and product uses will be somewhat restricted because of the mixture, mixed material may be used for a wide range of beneficial uses, such as land reclamation, habitat improvement, and landfill capping.

Source: US Army Corps of Engineers

stability, these dredges can maintain operations in relatively rough seas however when the hoppers are full, the vessel must move to a disposal site, so work stops until they return to station.

Another type of hydraulic dredge is the pipeline, or cutterhead dredge, which is towed to a dredging site, fastened to a barge, and anchored in place with special pilings called spuds. As the name implies, it uses a special machine with rotating blades to loosen ground material so that it can be sucked up into the piping system and sent to a disposal site. The cutterhead moves in a crab-walk fashion, sweeping side to side as the suction head grabs sediment from the bottom. Because the cutterhead dredge uses a static pipeline which sits atop the water, generally these dredges are not suitable for unprotected bays and harbors where rough seas could disrupt the equipment and operations.

A Cutterhead

Bucket or clamshell dredges are mechanical dredges used in places where larger hydraulic dredges may not fit, or when ground debris requires materials to be physically picked up and moved out of the way. When the dredge equipment is mounted on a large (generally unpowered) barge, it is towed, anchored in place, and scoops up material from the bottom before placing it in a dump scow which is filled, moved to a disposal site, and replaced. According to the Army Corps, the mechanical dredges, though not suited for areas of high traffic or rough seas and having difficulty retaining fine or loose material, can operate semi-continuously as multiple disposal scows may be used to decrease wait time. These dredges are particularly well suited for clearing rock and debris or working in confined spaces such as next to a berth or dock.

A Mechanical Dredge Working for the Army Corps

So What Happens To The Dredge Material?

Before 1900, material dredged from the Houston Ship Channel was disposed of in an offhand manner: usually the sediment was simply scattered to the bay or dumped in mounds near where it was removed from the channel. As governmental interest in the navigable waters grew, dredgers began depositing material in new barriers, reefs and dikes to offer temporary protection to the channel and other navigable waterways to keep them from refilling with silt and sediment. These dikes and levees also used

dredged material and rock to moderate the effects of wave action upon local beaches and shorelines—normally subject to a type of erosion called littoral transport which occurs when the prevailing direction of a wave is less than 90 degrees, carrying beach material offshore and degrading the integrity of the coastline.

Soon the material commanded demand from developers who used it to create or expand land for commercial endeavors such as airports or housing developments. The beneficial usage options for dredge material vary depending on the type and status of what is pulled from the sea: factors such as contamination, project technical feasibility and cost vs. benefit all affect how dredged material may be used. Today, when dredging permits are issued, operators must Slurry Pouring into a Disposal Site submit plans and receive permits from the Army Corps (with oversight from the Environmental Protection Agency) that detail how the dredged material will be used. All projects submitted to the Corps require an Environmental Impact Assessment which explains the project baseline, gives a summary of the impact the project will have on the local environment taking into account the physiochemical and biological conditions of the impacted area, and presents a management plan that ensures that the project takes sufficient consideration of long-term effects on the environment. Normally, highly contaminated elements are not suitable for beneficial use projects, however methods of treatment can clean the material to an acceptable standard.

In addition to the creation of dikes— breakwaters constructed roughly perpendicular to the shoreline to reduce the intensity of wave actions—semi-submerged berms may be created by the bottom discharge of dredged material from hoppers. This often allows for improved beach access and conditions for recreational surfers, swimmers and sailing channels.

In the Houston Ship Channel, dredge disposal sites are maintained where, surrounded by riprapped berms, dredge material can settle, draining water into a spill box where it is filtered, coming away clean and is redeposited into the channel. These artificial reefs can be maintained as nature sanctuaries and wildlife preserves. One example of an artificially constructed island is the Mid-Bay Navigation Project—at a cost of $105 million, one of the largest and most complex projects ever undertaken by the Army Corps’ Galveston Division Using five dredges, including a 26 cubic yard clamshell dredge, two 4,000 cubic yard hopper dredges and two 30” cutter dredges, the Mid-Bay Beneficial Use Site was constructed as part of the 2005 Houston Ship Channel deepening and widening project, and at project completion, will include over 1,100 acres of marsh and upland habitat—part of over 4,200 acres of marshland created over the economic life of the project which includes rebuilding historical islands, and creation of new oyster reefs and other environmental developments.

How are projects like Mid-Bay proposed? In 1990, users of the Houston Ship Channel formed an interagency coordination team called the Beneficial Users Group (BUG); this group—one of the first in the country to use the Interagency process for the Corps—was tasked to identify and implement beneficial uses for dredge material in the region.

Soon, the task force came back with recommendations to build small-boat access channels in the lower bay, build and restore several islands along the bay and use dredge sites to develop wildlife sanctuaries. The process also created a nearshore berm that lessened wave activity to slow erosion and used material to create nearly 120 acres of oyster reefs.

Dredges Shore Levees and Perform Maintenance on Mid-Bay Dredge Disposal Site in Galveston Bay

The Upper Channel to the Turning Basin Dredging

So What’s Going On In Houston Now?

Dredging Exxon to Carpenters Bayou

As of January, the Army Corps was engaged in several major projects in the Houston area. Rehabilitation of the levees off Clinton Drive ensured proper caretaking of material placement areas while dredge activity on the upper channel includes work from the Exxon facility just upchannel of Alexander Island to Carpenters Bayou. In addition to federally-sponsored channel development projects, private dredging operations in the area include work on individual facility docks and berths such as the new BOSTCO terminal whose dredging is slated for completion later this year. In addition, the Army Corps is rehabilitating placement areas 14 and 15, creating 21,000 additional feet of levee, and creating marshland on the eastern sides of the sites.

South of Mid-Bay, the Corps approved a contract to dredge from Redfish Island to Beacon 76—a large swatch of the Channel’s path south towards the Gulf Intercoastal Waterway. Later in the year, the Corps will dredge from Greens to Sims Bayou on the upper channel and deepen the Bayport Flare in preparation for deeper-draft vesDredge Sites: Placement Areas 14-15 sels such as the 8,000 TEU Maersk Maeva and her sister ships which began calling on PHA and the Channel from Redfish to B-76 facilities late last year. Studies are also underway to investigate widening and deepening the channel from Boggy Bayou to the turning basin, easing the Bayport flare to aid navigation, and overhauling the regional Dredged Material Management Plan, according to Tricia Campbell, P.E., Operations Manager for the Army Corps’ Galveston District.

The waters along the Gulf Coast—like those throughout the nation—need to be maintained by constant dredging. The funding process, as you will read on the following pages, is somewhat convoluted, however our coastal waters play a vital role in the American economy. The Army Corps and Industry work through challenging conditions to keep commerce flowing and find environmentally sound methods to dispose of dredged materials.

The Texas Water Resources Institute from Texas A&M University noted that “though dredging operations have been previously marked by controversy and conflict, the recent experience of the Corps in the Houston Ship Channel holds promise as a solution that all parties can accept and endorse. If this becomes a framework for dredging in Texas, maybe some problems and delays can be avoided in the future.” Houston is an example of the efficiencies gained through On the North-East Corner of the GIWW Barrier Island, New Marsh is Being Created cooperation and discusWhile Completed Marshes and Channels Are Visible on the South-West Side sion, and by maintaining lines of communication and professionalism, we are able to address the region’s needs and stay one of the busiest and most efficient ports in the nation.—D. Cooley, P. Seeba, GHPB

Controlling Costs

Comparative Assessment of Dredging

In the US, the vast majority of ports and harbors along our coast are unable to sustain waterborne commerce without the assistance of dredging: a necessary step to accommodate the size of the current and future fleets plying our seas. As countries around the world specialize on what each can do best, trade among nations continues to increase in accordance with the Law of Comparative Advantage postulated by David Ricardo in the 1817 treatise On the Principles of Political Economy and Taxation. Ricardo argued that there is mutual benefit from trade even if one country is more efficient in the production of all goods (absolute advantage); both countries will still gain by trading with each other, as long as each concentrates on the activities where it has a relative productivity advantage (lower opportunity cost). This is evident today as manufacturing continually moves from country to country seeking low cost labor and materials.

For trade to remain a cost-effective component of international commerce, scale is necessary. As a result, ships continue to increase in size; yet without dredging, there are fewer and fewer places where safe harbors can be found for them to call upon. This is particularly critical in the United States, where the natural harbors that once existed now do not provide sufficient water depth to accommodate the new ships whether container ships, tankers, or bulkers.

As the Army Corps maintains America’s Ports and Harbors utilizing Corps owned equipment or contracts to third parties, it provides statistics for the effectiveness of dredging in different ports. The graph to the left shows $5.2 billion in Corps’ third party contracts to the Districts of Galveston (including all the Ports of Texas), LA, New Orleans, and New York between 2006-2011. While the cost of dredging activity is predicated on a number of factors, when evaluated on dollars per cubic yard of dredged material, spending falls within a relatively consistent range. As costs vary among ports, in a fiscally constrained environment it may prove beneficial to the economic health of the country to determine a methodology to more efficiently allocate dredging funds to ensure an optimum result.—D. Cooley, GHPB

The Budget Process

It May be An Election Year: But Something’s Gotta’ Give

With a Congressional ban on earmarks, a proposed freeze on government spending and lawmakers on both sides of the aisle looking for ways to trim the budget, projects already approved for funding are in danger of losing support and fading to dust. American waterways are in trouble—and worse, in danger of losing position without consideration of merit or value.

Put in perspective, political theatre used to be as scripted as a Euripidean tragedy—without the traditional catharsis at the end. The Army Corps submitted a budget to the Office of Management and Budget. From this, the President submitted his budget to Congress. Telling Congress that he was fiscally responsible and working in the people’s interest, the Corps only received a percentage of what it needed. Then, the President stepped off the stage, allowing Congressmen to extol the virtues of one particular project or another, one waterway or harbor’s claim to fame—Houston: the busiest commercial waterway with more exports than any other port; in LA: importing the highest value of cargo, NOLA: the highest total tonnage, etc. Finally, each local Congressman ensured that ports got what they needed.

Now, without earmarks adding to the budget, Congressmen are fighting to hold what they have and the President’s proposal is the end of the play: a troubling precedent no matter which party the Commander in Chief may belong to.

Right now, the RAMP Act is attempting to bring sense to the issue of Army Corps funding. The Act would ensure that every nickel collected from the Harbor Maintenance Tax is spent maintaining American ports and waterways. The Act has 188 co-sponsors: without ever having been presented to the floor, 43% of the House wants to have their name on the Bill. A caucus of yea votes will surely see enough to pass. In the Senate, 36 Senators are similarly moved to lend their name to the top of the Bill. Why does the RAMP Act make sense? By allowing the Army Corps—professional engineers dedicated to the specific mission of Civil Works and Engineering to do their jobs while tying their budget to the actual usage of the waterways, commerce keeps flowing.

As an industry, we may have been sold a bill of goods when the HMTF was created: 25 years later—a lifetime, in my case—we’re still trying to implement a sensible solution that will allow us to provide funding to maintain our infrastructure.—P. Seeba, GHPB

Spotlight on Captain Bill Hennessey Marine Superintendent—ExxonMobil Baytown Refinery “How many people have I worked with—from all over the world... South Africans, the French, Norwegians, Eastern Europeans, Australians, Indians… that probably would’ve surprised me more than anything else if you’d told me that when I started, I’d be, for example, in Abu Dhabi at a facility where they don’t get to see many Americans, and as soon as we’re introduced, they start asking me about the American presidential candidates and talking about our elections. I was surprised how much they kept up on that. The Maritime industry gives you that reach—that getting to know people from all over the world.”

Born in Brooklyn to a maritime family, Captain Bill Hennessey’s grandfather worked as a tug captain, and his father did the same in addition to work as a docking pilot, securing vessels in and out of the Port of New York/New Jersey. “I never really expected to get too far out of New York harbor—work on tugs, maybe work up to a pilot, but I never expected to be in California, in Texas, the Middle East, travelling around doing inspections or even half of the opportunities I’ve had over the course of thirty years at sea and now ten years ashore.” Captain Hennessey grew up on Long Island, and while he may have never expected to be inspecting OSVs in West Africa, performing audits in Malaysia, or managing a Marine terminal in Houston, over forty year career, he’s touched hundreds of vessels in all corners of the world. The elder Hennessey sailed for Moran Towing for decades, and when Bill got out of school at 18, he couldn’t wait to get to sea. Working his way up with Texaco starting as an Ordinary Seaman, Bill was a tug captain by 1984 when he joined Moran for four years working New York Harbor.

In 1988, labor stoppages in New York saw Bill ashore, and he spent two years on the beach working in the financial services business. Eager to get back to sea, when Exxon called, he joined the company’s Bayway Tug and Barge Fleet. In 1991, Bill started working with the San Francisco Bay Tug Fleet, with orders from moving tractor tugs about the harbor with ship assist work to longer trips. “The longest trip, we probably spent 56 days—started in San Francisco, moved up to Seattle to pick up barges, then towed them all the way around through the Panama Canal to Jacksonville, Florida.” Bill spent twelve years sailing up and down the West Coast with the San Francisco Bay Tug Fleet transiting the Panama Canal three times.

On the ATBs S/R Everett and S/R New York, Bill had his share of interesting journeys, including one trip from Baton Rouge to Puerto Rico where he passed through three tropical storms. “You try to avoid them, but moving at 9 knots on a tug & barge doesn’t give you the advantage of a cruise ship that may be able to crank it up to 30 knots. At the time, we were off of the Cayman Islands heading towards Puerto Rico when we hit a tropical storm which’d been hiding below Jamaica, The S/R Everett with the Barge S/R New York and as soon as we started moving, the hurricane moved right on top of us—the good thing was they’re pretty fast, they pass through in about 24 hours. From there, you just dead-slow, keep pushing into it until it passes you, then gradually increase your speed and go on your merry way… as soon as we left Puerto Rico, another one caught up to us at about Haiti, so I ducked in to the forks at Haiti, let that go by, then we went up the windward passage through the Bahamas where we hit a third one—that was a pretty active Hurricane season that year. You know, hurricanes can almost seem like they have a mind of their own. We tried to outrun the one that chased us into Haiti, then once it got past us, it blocked us from going west through the Yucatan, so we come up with a different plan around the Bahamas, changed the crew in Ft Lauderdale, and went along our way, all well.”

A year later, Bill came ashore and moved to Houston where he began working in ExxonMobil’s Vetting group, where

he used his role to provide training and guidance to inspectors, playing a key role in creating and expanding reporting procedures and inspection programs for barges and was instrumental in organizing the Houston-based Oil Companies International Marine Forum Barge SIRE workgroup. Over the next several years, Captain Hennessey performed operational safety audits in Angola, Abu Dhabi, Malaysia and all over the world, as well as assessments on behalf of ExxonMobil on seismic vessels. “It’s been a good business to be in. The quality and diversity of people that you get to meet in this industry— not every industry has that benefit, that insight. I enjoyed people from every region of the world. If you spend enough time sailing, travelling around, you get to meet so many people from so many different regions.” In 2010, Bill accepted a position as the Marine Superintendent of the ExxonMobil Baytown Refinery, and has been working steadily to increase the operational tempo, safety and quality standards on the docks.

In his free time, Bill spends time with his family and enjoys golfing and Scuba Diving—a pastime he picked up while working with the San Francisco Bay Tug Fleet—and living in Jupiter, Florida. He and his wife Margaret have been married for 28 years and have three children including Bill Jr. practicing law in Dallas, Sean who works in the computer business in New York, and Mariel who is still with the family and going to school. Bill has been active in the community and was recently elected to the Greater Houston Port Bureau Board of Directors as a member of the Executive Board and 2nd Vice Chairman.

Founded in 1919, the ExxonMobil Complex in Baytown, Texas is located on approximately 3,400 acres along the Houston Ship Channel and is made up of a Refinery and Chemical Plant. Staffed by approximately 2,200 ExxonMobil employees and 2,100 contract personnel, the facilities are operated 24/7/365 with a capacity of 573,000 barrels of crude per day. The majority of crude for the refinery is supplied by tanker and is used to produce a full range of petroleum products including lube oils, waxes, hydrocarbon fluids, and specialty blends. The Chemical plant manufactures more then 7.2 billion pounds of petrochemical products annually including butylene for butane-1 production. As the largest petrochemical facility in the Western Hemisphere, the ExxonMobil Baytown Complex earns respect and developing trust by operating safely and by active involvement in the community.

Changes to the Port Bureau Board of Directors At the Greater Houston Port Bureau’s March 2012 meeting of the Board of Directors the board voted on a new membership slate. Thanking six directors for their service, the Board filled empty seats with nine individuals who, at their monthly meetings, will lend voice to directing the Port Bureau’s efforts and resources for the coming years. In addition to the new Directors, the Board elected a new slate of officers as Chairman Tom Marian stepped down from the position he held since 2006. The new officer slate includes:



Chairman—Dennis Hansell, Suderman & Young Towing Company



1st Vice Chairman—Steve Stewart, Gulf Winds International



2nd Vice Chairman—Capt. Bill Hennessey, ExxonMobil



Secretary/Treasurer—John Taylor, Houston Mooring Company



Past-Chairman—Tom Marian, Buffalo Marine Service

In a congratulatory email to the new board, Chairman Hansell began to outline ambitious goals that the Board will discuss in the coming months including continuing and expanding work to solve dredge funding issues, preparing the region for the 2014 opening of the Panama Canal Expansion and a discussion about how the Ship Channel can greet our 100-year anniversary. In the message, he also reminded directors that one of the constant issues facing the organization is a drive to make our port commerce more efficient by en- Immediate Past-Chairman Tom Marian Congratulates Chairman Dennis Hansell on Taking the Reins at the Port Bureau hancing communication and cooperation among all the entities operating along the channel. The Port Bureau has expanded from 90 members in 2009 to 145 as the 2012 Membership Directory goes to print: the next three years promise further expansion as the Port Bureau works to serve its constituency.

New Greater Houston Port Bureau Directors (from left to right)

April Bailey—VP Commercial Banking Amegy Bank of Texas Dave Ellis—President Odfjell Terminals (Houston) Mehdi Hejazi—Port Manager Norton Lilly International Capt. Bill Hennessey—Marine Superintendent ExxonMobil Baytown Refinery Brad Maxcey—Operations & Business Development Danners, Inc. Bernt Netland—President and CEO Intercontinental Terminals Company Colin Scott—Terminal Manager Vopak Terminals North America (Deer Park) Capt. Christos Sotirelis—Presiding Officer Galveston-Texas City Pilots COL Len Waterworth, USA (Ret.) - Interim CEO Port of Houston Authority

Pete Reixach Retires from Port Freeport after 27 Years In 1985, A.J. “Pete� Reixach accepted a job as assistant general manager at Port Freeport, and when Port Director Peter Schaff died not even two months later, he stepped up and held the reins for nearly three decades.

Pete was influential in the Port Freeport deepening and widening projects which saw the channel from 36 feet to 45 and he expects that depth to grow to 55 feet very soon. During his tenure, he saw the Port grow from a small port with 3-5 fruit vessels per month to the twentyseventh largest port in the country moving 27 million tons annually and creating $1.11 billion in personal income for over 11,696 people mostly in Brazoria county.

During his tenure as Port Director, Pete was heavily involved with many chambers of commerce including having served as the Chairman of the Gulf Ports Association of the Americas, Texas Ports Association, and the 2010-2011 Chairman of the Board of the American Association of Port Authorities.

HarborLights Expansion and Updates Visit the Apple iPad App Store!

Last year, the Galveston-Texas City Pilots Organization began using the HarborLights Vessel Traffic Management System to organize their dispatch and billing operations. As with the Houston Pilots, the HarborLights program effectively allows the GalTex Pilots to streamline their internal processes to improve billing turnaround time, increase responsiveness to customers, and simplify their office operations allowing new dispatchers to train quickly and experienced personnel to increase the number of vessels they can handle in a shorter time period.

In late March, the HarborLights user interface new release included dispatch information from both the Houston Pilots and the GalTex Pilots, allowing terminals, agents, stevedores, line handlers, tertiary service providers and more to get the up-to-the-second data from both organizations.

At the same time, the HarborLights application became available on the iPad App Store: now, see the ships of the Gulf and the Pilots’ sailing schedules on the go! Taking advantage of native efficiencies of the Apple operating system and innovative touch-screen design, the HarborLights iPad application allows a user to generate many of the same reports available on the HarborLights desktop system and easily email or print them for use in a myriad of situations. With one-touch login and multi-purpose filtering elements, you can use the HarborLights iPad application to keep pace with your vessel on-the-go.

What’s on Tap for HarborLights?

Don’t Have HarborLights Yet?



Global AIS Coverage



New Port Data



Expanded Reporting Capabilities



Weather and Radar Displays



New Information from the US Coast Guard and National Oceanic and Atmospheric Administration

Call (713) 678-4300 and ask for Patrick or email pseeba@txgulf.org for your free 10 day trial today!

(top-left:) Frank Files, Clark Freight Lines and Art Flanagan, HUB International Rigg top-middle:) Todd Stewart, Gulf Winds International and Ron Hyden, Halliburton (topright:) Sean Carney, RickmersLinie (America), discusses business with a colleague (upper-left:) Chelsea Egmon, Shareen Larmond, and Nathan Wesely, WGMA and Councilmember Mike Sullivan, District E (upper-middle:) Joe Burkett, Angie Corfield, and Peter Wurschy, Texas Terminals (upper-right:) Ray Lesoon and Robert Paddison, SGS (mid-left:) Capt.

Robert Thompson, Houston Pilots listens to a question as Captain James Whitehead, USCG and Capt. JJ Plunkett, Houston Pilots (mid-middle:) Patrick Shanley and Mike Smith, IGSI (mid-right:) Captain Diehl greets Steve Stapleton, Samtarel Chartering, and Brooks Elliot, Pinch Flatbed (midlower-left:) Ryan Whitmire, Schröder Marine Services, and Ricky Raven, Chipolbrok (midlower-middle:) Martin Abel, Rickmers-Linie (America) and Rainer Lilenthal, Port of Houston Authority (mid-lowerright:) Chuck King, Buffalo Marine, Capt. JJ Plunkett, Houston Pilots, and Pat Studdert, Buffalo Marine (lowerleft) Ginny Hughes, and Arthur Ross, Texas Terminals (lowermiddle:) Jürgen Schröder, Schröder Marine Services, and Hieno Winkler, Global Project Services (lower-right:) Chad Burke, and Randy Boeding, Economic Alliance Houston Port Region (bottom-left:) The Commerce Club at Brady’s Landing. (bottom-right:) Ron Hyden from Halliburton addresses the Commerce Club

Port Watch Tom Marian—Buffalo Marine Service

Foggy February Leads to Sunny March

With 156 hours of fog on the Houston Ship Channel, February was literally a stop-andgo month on the maritime trade front. In fact, this year’s fog season stands to eclipse last year’s. Not unexpectedly, triple-digit fog hours lead to double-digit declines in vessel arrivals for the majority of the region’s ports from January to February. The most significant monthly decline took place in Galveston with 19% fewer vessel calls. Corpus Christi, Freeport, and Sabine also experienced at or near 14% fewer vessel arrivals. As expected, these somewhat significant declines resulted in year-to-date arrival totals below 2011 with the exception of Sabine which remains 2% ahead of last year. Yet, the other 2 data points that are of interest when comparing the first two months of 2012 against 2011, are the ports of Houston and Texas City. With respect to the latter, despite a 9.5% month-to-month drop, Texas City remains up over 29% - a rather impressive showing largely attributable to greater petrochemical throughput. Meanwhile, Houston’s 11% monthly decline still permitted the port to remain 1% above last year’s running total.

How did the port of Houston’s 11% decrease for the month translate across vessel types? All vessel categories save one – piloted tug and barges - were down or flat. General Cargo vessel arrivals were relatively robust in February since they matched January numbers and continued to climb over last’s year running totals. Bulk arrivals, on the other hand, were down 6% and remain off by over 17% for the year. Container vessels chalked up a 11.5% monthly drop but still managed to remain above 2011’s numbers in terms of arrivals. Car carriers fared about the same as containers – off for February but ahead of last year. Ro/Ro vessel and tank vessels did not have an upside either in the monthly or annual arrival arena with the latter down 12% and 13% respectively. So, if crude is off, what of chemicals? After a truly extraordinary January, there were 26% less chemical tankers in February; however, the first 2 months of 2012 is an unfathomable 84% above 2011!

Of course, most of us realize that vessel arrivals is but one of several indicators as to the state of things on the waterfront. As the Presiding Officer of the Houston Pilots recently observed, the ships that have been coming in of late are carrying more cargo as evidenced by the deeper drafts. This was reinforced by the Port of Houston Authority’s most recent report that February revenue was up 16%; container tonnage is currently up 6% for the year; and steel is up 143% for the month.

Indeed, not even the fog could dampen the positive numbers.

Interestingly enough, when one dissects Houston Ship Channel tow movements – a vessel category that is particularly impacted by fog – there are strong indications that sunny times loom.

Based upon the raw numbers, the month-to-month change for this category was a decline of 5%. Yet, 22% of the month was impacted by fog in addition to 6% fewer days. Consequently, when you make the appropriate adjustments and factor in the 13% loss of hours attributable to fog in January, February actually yields a commendable 10% monthly increase – a number which is consistent with the current 6% gain for the year. That result is clearly consistent with the current activity on the waterways that are benefiting from the spring sunshine.—T. Marian

Upcoming Events: 12 April

Commerce Club Luncheon

10 May

Commerce Club Luncheon

Gary Sera, TEEX COL Len Waterworth, USA (Ret.), PHA

5 June

HCBFFA Golf Tournament

12 July

Commerce Club Luncheon

18 August

2012 Annual Maritime Dinner

13 September Commerce Club Luncheon 11 October

Greater Houston Coffee Association Annual Luncheon

5 November

GHPB Captain’s Cup Golf Tournament

8 November

Houston Ship Channel Security District Annual Luncheon

Advertise in the Port Bureau News and Reach 3,500+ Maritime Professionals 1 Month

6 Months

Full Year

1/6 Page

$500

$1,500

$2,000

Half Page

$1,000

$2,000

$3,000

Full Page

$1,500

$3,250

$5,000

th

Membership (Calendar Year)

$ 600

Port Bureau Membership required for advertising in the Port Bureau News.

GREATER HOUSTON PORT BUREAU 111 East Loop North Houston, TX 77029 713.678.4300 ph 713.678.4839 fax www.txgulf.org