April 2013 Port Bureau News

Greater Houston 2013 April

Port Bureau

Port Watch

IntercontinentalTerminalsCo.

Spotlight On:

The Port of Houston Authority

Real Hope - For Change Solid vessel movement at Texas Ports in February

New greenfield terminal in Pasadena, Texas

COL Len Waterworth, USA (Ret.) Executive Director Port of Houston Authority

A primer on the governmental enterprise and local sponsor of the Houston Ship Channel

MEMBER DRIVEN - MARITIME BASED - VALUE ADDED

Captain’s Corner

S n o w: W h o C an P r e di c t i t ?

Punxsutawney Phil, the legendary groundhog, did not see his shadow in February, predicting an early spring. Well, it did snow, prompting a huge outcry by those in long johns. One Ohio prosecutor sought the death penalty against the furry forecaster for blowing it by calling for an early spring. Anyways Phil’s “handlers” (the ones with the top hats) are claiming he wasn’t wrong, just misinterpreted. People are rallying to save Phil, but the hunter in me is leaning towards: guilty.

Speaking of unpredictable snow, I remember another snow storm that created a ruckus when I was stationed in Detroit in 1999. It was only a foot of snow (a nightly dusting by Buffalo standards) but it

left the city streets of Detroit impassable during the busiest business week of the year—the International Auto Show. What it revealed was a city totally unprepared. In a cost cutting move the city had reduced its snowplows down to 59 trucks when they should have over 400 trucks. The mayor declared, “I do not accept responsibility for what the good Lord has put on us by way of snow.” Then he blamed the previous administration for the lack of preparation. In the end, like Punxsutawney Phil, people were asking the mayor to step down. It was too late, because the city had turned its back on basic services the financial loses were huge, and businesses increased the pace at which they were leaving the city.

Having just spent a few days last week in DC with a Port of Houston Authority industry delegation I’m starting to see our lack of dredging as a snow job, or more appropriately: a silt job. We demand a lot from our leaders in Washington and as much as they want to blame someone else, the time is now for addressing our silting problem. Like snow, it is not going away unless we scoop it up. We pay over $100 Million (M) in Harbor Maintenance Tax per year for scooping silt; we only get $20-25 M/year in services while our scooping needs are $60 M/year.

I’m not convinced that our silting problem is

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even on DC’s radar. We are continuing to silt in like a slow snow storm and it definitely will have an effect on things they are pushing for: jobs, taxes and exports.

Because of underfunding for channel dredging we are a port that only has 59 trucks in preparation for a 400+ truck silt storm. We need to get people as agitated about this as they are against Phil for botching the snow call.

Members with Bill in Washington, D.C. during a February advocacy trip to discuss harbor maintenance with members of the US Senate and House of Representatives. From L-R: Bert Noggle, Odfjell; Capt. Bill Hennessey, ExxonMobill; Spencer Chambers & Phyllis Saathoff, PHA; Dave Clark, Targa; CAPT Diehl, GHPB; Bernt Netland, Intercontinental Terminals Company; Capt.

Robert Thompson, Houston Pilots; Nathan Wesely, WGMA.

Greater Houston Port Bureau | 3

March 2013 Commerce Club Mr. Steve Phelps President American Institute for International Steel

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Page Left: Top-Left: Rich Brazzale, Coutinho & Ferrostaal with a customer ; Top-Middle: Brad Maxcey, Danner’s, and Marc Bickham, Bay-Houston Towing Company; Upper-Left: Allen Eckhardt, Richardson Stevedoring & Logistics, and Dave Phelps, AIIS; Upper-Middle: Ernest Bedzek, Port of Beaumont, and Danny Schnautz, Clark Freight Lines; Upper-Right: Lee Goodwin, Cedar Crossing Industrial Park; Lower-Left, Steel industry participants in the Commerce Club discuss market conditions before the luncheon; Lower-Middle, David Halbert, Houston Mooring, Robert Hawn, Inchcape Shipping, and Brad Maxcey listen to a customer before the Commerce Club luncheon; Lower-Right: Steve Nerheim, Houston Vessel Traffic, George Pontikos, Odfjell, and Tyler Brown, Alltrans Port Services Page Right: Lower-Left: The Brady’s Landing Buffet serves all tastes from salad and fish to fried shrimp and hush puppies; Lower-Middle: Jordan Frisby, PHA and Steve Stewart, Gulf Winds International listen to Dave Phelps after his speech at the Commerce Club; Lower-Right: Dave Halbert, Dennis Hansell, Suderman & Young Towing, and Jürgen Schröder, Schröder Marine Services Greater Houston Port Bureau | 5

Real Hope - For a Change!

Port Watch - Tom Marian, Buffalo Marine Service February 2013 – comets ablaze, lightning strikes St. Peter’s and a Papal resignation – a rather inauspicious set of events in the year’s shortest month.

Yet, candidly, none of these ominous events turned marine commerce on its head in the Lone Star State. In fact, things were somewhat solid in the wake of 10% fewer days, a bout of fog and lessening demand for crude. As usual, the “frack ports” of Brownsville and Corpus Christi remained in positive territory for the month to the tune of 18% and 0.6% respectively. The remaining ports all saw fewer ships for the month but the bulk of those were still up on a per-day basis.

Texas City fared the worst with a nearly 32% month-to-month decline.

Those Texas City terminals that are crude destinations took a disproportionate hit while the chemical-centric terminals held their own. Freeport suffered a similar albeit less dramatic fate with a nearly 25% wane. The Port of Galveston also put up a double-digit monthly loss of nearly 14%; however, its year-to-date progress was down by just over 1%. Sabine’s monthly negative

change was under 9% - a positive sign in the refining arena – as reinforced by its year-to-date improvement of almost 18%. Finally, the Port of Houston slipped 6% since January but this was not nearly enough to prevent the Port from remaining up on a year-to-date basis at 3.2%.

As previously mentioned, the winter-weather whims had an adverse impact on vessels plying the region’s waterways. Inland tows are particularly vulnerable to fog and high winds from the ubiquitous “Northers” that descend upon the Gulf Coast. Not surprisingly, Houston Ship Channel tow movements were off 4% for the month. Conversely, “bluewater” tow movements into Houston were up an impressive 27%, underscoring the benefits of shale gas to domestic shipping. Another positive trade indicator for Houston was the 10% increase in bulk ship arrivals and the concomitant 4% monthly increase in City Dock activity despite an 8.5% decrease in general cargo movements throughout the port. Unfortunately, container vessel movements fell by 11% causing

this ship category to remain down 5.5% year-to-date. As in Sabine and Texas City, Houston’s tank vessel arrivals fell by over 14% for the month and LPG arrivals – despite January’s stellar performance – sunk by 19%. Interestingly enough, Ro/Ro and Car Carrier movements were relatively strong and even chemical tanker movements climbed an additional 3% reflecting a heartening 23% climb in this category as compared to 2012.

Hence, there are glimmers of hope that the economy is not ensnared in stasis. After all, housing starts are up, unemployment is ever-so-slowly creeping downward and the consumer is confident enough to shoulder more debt. Of course, the anticipation of spring tends to cast off the pall of winter; particularly when the Christmas debt is paid off. Then again, it could very well be that events beyond our horizon are magnifying hope and bolstering all that is positive. After all, what other generation can claim the benefit of the prayers of two Popes and the hope and goodness of history’s first Pope Francis. Happy and blessed Easter.

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The Port of Houston Authority

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In addition to its responsibilities as the local partner of the federal government in maintaining the Houston Ship Channel, the Port of Houston Authority owns, operates or leases eight public cargo facilities designed for handling general cargo, containers, grain, other dry bulk materials, project cargo, heavy-lift cargo, and more. Learn about the history of this regional governmental enterprise as well as how they fit into the community entering their second century of service...

Greater Houston Port Bureau | 9

The Port of Houston Authority With over 100 years of service to the Houston maritime community, the Port of Houston Authority stands firm as the partner of the federal government as sponsor of the Houston Ship Channel, a terminal operator of breakbulk and container facilities, and a landlord managing property used by companies like Port Bureau members Kinder Morgan, Seaboard Marine and more.

Starting with shallow draft steamboats and schooners moving over treacherous sandbars and barriers, the City of Houston has been a hub of the cotton trade since the mid-1800s. By 1874, the newly established Houston Board of Trade (later known as the Cotton Exchange) began lobbying for a regulated deep-water channel.

With the construction of five large cotton compresses on the banks of

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Buffalo Bayou and growing commercial demand, advocates such as Houston Congressman Thomas Ball gained traction and support for developing a channel to bring more modern – and deeper – ships up the fledgling channel.

On September 8, 1900, The Great Storm hit Galveston Island and the Texas coast. Killing 6,000 people and leveling the city, the Rivers and Harbors Committee in Washington appropriated $1 million and authorized the Army Corps to dredge the Ship Channel to 25 feet. Soon thereafter, the project stalled at 18 ½ feet and as cargo volumes increased, the money ran out.

By 1909, Houston was a center for the cotton trade, but also moving considerable lumber and rice – all commodities dependent on cheap transportation that

newer, deeper ships could provide. The Mayor of Houston, Horace Baldwin Rice (William Marsh Rice’s nephew) and Congressman Ball worked together to develop the Houston Plan – simply put by the Port of Houston Authority, “local interests agreed to pay one-half the cost of completing the channel if Congress would appropriate sufficient funds to execute the project promptly.”

As soon as Congress approved the plan, Harris CounMaritime Solutions for Moving Forward ty residents approved the creation of the Harris County Houston Ship Channel Navigation District to raise $1.2 million in bonds so that the region could gain federal monies. This organization, formed in February, 1909 and expanded under consolidation PORTS with the City Harbor Board in 1921 is known today as the MARINE Port of Houston Authority.

DIRECTION

Since its founding 104 years ago, the Port of Houston Authority’s powers, responsibilities and duties have grown, it has remained a constant presence on the channel. In 1926, the Navigation District commissioned its first fireboat, the Port Houston, and in 1928, 1948, and 1957, the organization christened inspection boats, the last of which, the M/V SAM HOUSTON still ferries tour groups today, showing visitors the Turning Basin and many of the bulk and break-bulk facilities located on the upper Houston Ship Channel.

With rapid expansion and growth throughout the 1950s and 1960s, the Navigation District poured capital into the

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Greater Houston Port Bureau | 11

construction of desperately needed publically owned facilities to allow greater volumes of cargo to come through the Port. The construction included 15 new wharves in the Turning Basin, including a $4.5 million dry bulk facility for handling ores and fertilizers.

While construction in the Turning Basin expanded the public docks, in 1962 the Navigation District opened the Houston World Trade Building on Texas Avenue downtown – a 12 story building designed to be “a central location for international trade interests, including consular offices, transportation companies, exporters

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and importers.” This building still stands today and is now known as the Inn at the Ballpark: a baseball-themed luxury hotel servicing Minute Maid Park and the Houston Astros Baseball Club across the street.

With industry modernization revolutionizing shipping in the 1950s and ‘60s, perhaps no single voyage was more significant to the development of Houston’s waterfront than the movement of the IDEAL X, Malcom McLean’s harbinger of mass containerization. The IDEAL X, a converted oil tanker shipping in ballast from Newark, pulled up to City Dock 10 in the Turning Basin on May 2nd, 1956 and later that year, the Navigation District’s Houston Port Book announced that “Trail-

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er Ships Now Serve Houston.” McClean’s HoustonNew York service was touted as “the forerunner of the trailership program which [planned to] see entire trucks roll off ocean-going ships especially constructed for that purpose.” Though the concept of readyto-go trailers was adjusted, soon containers became

standard, and largely replaced palletized loads. Less than fifteen years later, plans for the Fentress Bracewell Barbours Cut Container Terminal were approved, and when it opened in 1988, the Port Authority’s terminal was the largest container terminal on the Gulf Coast.

In 1971, the State of Texas changed the name of the Navigation District to the Port of Houston Authority, and today the Port Authority’s over 570 employees work their mandated tasks as defined in the Texas Constitution, Texas Water Code, and other state laws.

The Port of Houston Authority Today One of the most important responsibilities the Port of Houston Authority manages is the federally designated sponsorship of the Houston Ship Channel.

In this role, it not only assists with the project management and coordination of channel dredging projects whose boots-on-the-ground work is performed by the US Army Corps of Engineers, but PHA also owns and manages the dredged material placement areas

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located around the channel which provide needed gram in Texas for marine firefighters. The four fire disposal sites so that waterway maintenance can con- stations have three fire boats, three engines, and four tinue 24/7/365.

HAZMAT response vehicles at their disposal to assist in The Port Authority is also responsible for marine case of a marine casualty or fire at a facility. The Port construction permits and pipeline, cable, and trans- Authority is also a member of the Channel Industries mission line licenses for projects that will cross the public waterways and Port Terminal Railroad Associaton rail lines.

As a centralized licensing authority, PHA is able to ensure the safety, sustainability, and NTERNATIONAL AW IRM long-term health of the channel by weighing the needs of industry with the responsibilities of navigation, environmental concerns, and other construction projects that faNew York | Houston | Miami | Athens | Cyprus cilitate commerce.

Just as PHA assisted in the development of deepwater channels in the past, it continues to promote commerce Our proven ability to resolve problems in a realistic, through its current initiative cost effective and result-oriented way is our trademark. to deepen both Barbours Cut and Bayport channels as PHAfunded projects over the next several years. These projects seek to benefit several major terminals, enabling them to realize the full benefits of the HSC deepening project, and position segments of industry to better serve the growing Houston region.

With their responsibility for the federal waterway, the Port of Houston Authority also takes a lead role in lobbying the federal government for appropriations so that the Army Corps can keep the chanCHALOS & Co, P.C. nel deep and wide.

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Chairwoman Janiece Longoria leads a 2013 meeting of the Port Commission for the Port of Houston Authority Mutual Aid (CIMA) cooperative, so PHA assets may be used to respond in case of emergency at any number of facilities up and down the channel.

Governance With a full time staff of nearly 600 led by Executive Director COL Len Waterworth, USA (Ret.), the Port of Houston Authority is directed by a seven member board of commissioners appointed for two-year terms by entities within Harris County. The County and City of Houston jointly appoint the commission’s Chairman, and each entity appoints two commissioners alongside one from the City of Pasadena and one from the Harris County Mayors and Councils Association.

Since 1923, this governing body has also functioned as the Board of Pilot Commissioners with responsiblity to oversee pilot rules, training, and recommendations for state commission and approve rates.

A recent report by the Texas Legislature’s Sunset Advisory Commission outlined PHA duties and responsibilities and explained that they are met by: • Acting as the federally designated sponsor of the Houston Ship Channel • Partnering with the US Army Corps of Engineers to oversee development and maintenance of the federal waterway • Owning two container terminals and five publicuse general cargo facilities • Managing diverse tenants through real estate operations • Setting public tariffs • Marketing and developing trade opportunities for PHA facilities and the Houston Ship Channel • Maintaining police and fire departments to monitor and respond to security and safety threats • Serving as the regulatory body for the Houston Pilots

• Ensuring compliance with regulations for activities occurring on PHA property • Participating in community development activities “I like to explain the Port of Houston Authority as an enterprise” notes Executive Director Len Waterworth. PHA’s breadth of operations span from advocacy and governmental duties to terminal operations at the Barbours Cut, Bayport, and Turning Basin facilities. In 2011, PHA raised nearly $266 million in revenue - 78% from operations. The Port Authority’s terminals operations accounted for 42.5 million tons of cargo during that time - from steel and wind turbine components to grain and cotton.

Balancing the responsibilities of a governmental entity with the demands of a terminal owner/operator is delicate, but with careful planning and the experience of a century of success, the Port of Houston Authority is moving forward into a second century.

Current PHA Revenue Sources:

Greater Houston Port Bureau | 17

City Dock Fast Facts: • Industrial Parks East and West, divided by the Sidney Sherman Bridge provide more than 330 acres of space and are home to over two dozen different tenants including Port Bureau Members such as: • Cargoways Logistics • Ceres Gulf • Ports America • Richardson Stevedoring & Logistics • Shippers Stevedoring Company • Each wharf in the Turning Basin (except City Docks 1-4) is serviced by the Port Terminal Railroad Association, a Port Bureau Member that provides switching service to the BNSF Railway and the Union Pacific Railway.

Steel Tonnage at PHA Facilities 2009

2010

2011

2.6 Million Short Tons

2.7 Million Short Tons

4.3 Million Short Tons

2012

5.4 Million Short Tons

20,000+ linear feet of dock space available on 39 public wharves

1,202

1,043

1.9 million square feet covered and 3.3 million square feet of open storage space

953

828

824

2012

2011

2010

2009

2008

The Sidney Sherman Bridge, opened in March 1973, has a vertical clearance of 135 ft and longest span of 600 ft.

City Dock Ship Arrivals 18 |

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The Port of Houston Authority’s

Turning Basin & City Docks The PHA’s Tour Boat, the M/V Sam Houston has been offering free public tours since July 1958.

The Cape Taylor, Cape Texas, and Cape Trinity are Roll-On, Roll-Off Ships of the US Military Sealift Command moored at City Docks 41, 43, and 45.

The Houston International Seafarer’s Center is located in Industrial Park West just above City Dock 23

Liner Services at the City Docks: • Caytrans • CCNI • Chipolbrok • Grieg Star • Gulf Africa Line • NYK Ro-Ro • Rickmers Linie • Safmarine SCM Lines • Seaboard Marine

City Dock 32 is specially designed for handling project and heavy-lift cargo. With a 1,000 pound per square foot capacity and 20 acres of paved marshalling area, this facility is equipped to handle the largest, toughest break-bulk cargos available.

Greater Houston Port Bureau | 19

445 417 392 349

2012

2011

2010

2009

2008

233

What Are In All Those Imported Containers?

1. 19% - Food & Drink 2. 11% - Machinery, Appliances, & Electronics 3. 10% - Steel & Metals 4. 10% - Hardware & Construction Materials 5. 9% - Retail & Consumer Goods 6. 8% - Chemicals & Minerals 7. 5% - Resins & Plastics 8. 5% - Furniture 9. 4% - Automobiles 10. 4% - Apparel & Accessories

Bayport Ship Arrivals

The Bayport Container Terminal, currently built out to 53%, has the design capacity for 2.3 million TEUS on a 376 acre yard complex and an additional 123 acre intermodal facility.

In November 2013, Princess Cruises will begin sailing out of PHA’s Bayport Cruise Terminal, and in 2014, Norwegian Cruise Lines will join the services available out of the 96,000 square foot facility.

Container Lines Servicing Bayport Terminal: • China Shipping Lines • CMA-CGM America • CSAV Lines • Mediterranean Shipping Co. • Zim Container Lines

Bayport Channel & Terminal Statistics: Depth: 40 ft MLW Width: 300 ft Length: 3.5 Nautical Miles Berths: 3,300 feet of continuous quay

7,000 feet of continuous quay (Full Build-Out) Cranes: 6 Post Panamax Container Cranes (18 Wide)

3 Super Post Panamax Container Cranes (22 Wide) RTG Fleet: 27 Rubber-Tired Gantries Yard: 199 Acres, Wheeled Slots, 500 Reefer Slots

Where are Houston’s Containers Coming From?

The Port of Houston Authority’s

Bayport Container & Cruise Terminals

850 814

2012

737

2011

707

2010

2009

2008

714

Barbours Cut Ship Arrivals

The Barbours Cut Container Terminal was opened in 1977 as the first public terminal in Texas to handle standardized cargo containers.

In addition to containers, the terminal is able to handle Ro/Ro and project cargo over its 230 acres of paved marshalling area and 255,000 square feet of covered warehouse space.

What’s Houston Sending in Those Containers?

1. 35% - Resins & Plastics 2. 15% - Chemicals & Minerals 3. 10% - Machinery, Appliances, & Electronics 4. 9% - Food & Drink 5. 7% - Automobiles 6. 4% - Steel & Metals 7. 3% - Retail Consumer Goods 8. 3% - Apparel & Accessories 9. 2% - Hardware & Construction Materials 10. 2% - Fabrics & Raw Cotton

The Lou Lawler Seafarer’s Center offers sailors spiritual, recreational, communications and transportation services from its facility just across Barbours Cut Boulevard.

Two 100,000 square foot sheds provide covered storage and processing space.

The Morgan’s Point Cemetery is one of the oldest cemeteries in Harris County and the supposed final resting place of Emily Morgan, the Yellow Rose of Texas.

The Port of Houston Authority’s

Barbours Cut Container Terminal Container Lines Servicing Barbours Cut Terminal: • Atlantic Container Line • Alianca • Cosco North America • Compania Chilena • Compania Ilbra Ines • Hapag Lloyd • Hanjin • Hamburg Sud • NYK Line • OOCL • Shipping Co of Saudia Arabia

Where are Houston’s Containerized Exports Going?

Barbours Cut Docks Five and Six are on long-term lease from the Port of Houston Authority to APM Terminals.

Barbour’s Cut Channel & Terminal Statistics: Depth: 40 ft MLW Width: 300 ft Length: 1.3 Nautical Miles Berths: 6,000 feet of continuous quay Cranes: 4 Post Panamax Container Cranes (16 Wide)

5 Panamax Container Cranes (13 Wide) RTG Fleet: 36 Rubber-Tired Gantries Rail: On-Site 42 Acre Rail Ramp

4 Working Tracks

5 Storage Tracks

900 Parking Spaces Yard: 230 Acres, 2,700+ Wheeled Slots, 392 Reefer Slots

The Port Authority’s Bulk Materials Handling Plant is currently under long-term lease to GHPB Member Company Kinder Morgan.

With two vessel docks, the facility is designed to load up to 20,000 tons per day of petroleum coke with average annual tonnage of 5.2 million tons.

The bulk-plant can move dry-bulk as fine as sand and as dense as eight-inch diameter lumps weighing up to 200 pounds per cubic foot. The terminal is also equipped with high-speed loading equipment and a sophisticated dust collection system to permit the handling of extremely dusty commodities.

The Bulk Materials Handling Plant

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April 2013

Jacintoport

Operated by GHPB Member Company Seaboard Marine, Jacintoport Terminal is a 125 acre space with 1,836 ft of continuous quay, 7.5 acres of paved cargo marshaling area, and an 82,500 square foot transit shed.

The terminal also features multiple large warehouses including a 437,000 square-foot facility with covered rail and truck bays to ensure cargo is not exposed during loading and unloading.

The “Spiralveyor� bagged cargo handling system located at this facility is capable of loading over 350 tons per hour of bagged/boxed cargo. On-site bagging equipment can package corn, oats, rice, soybeans, wheat and other food products, and Jacintoport is approved by USDA to handle PL480 food aid.

CARE Terminal

With nearly 20 acres of improved space on 32 acres of land and a 46,000 square foot warehouse, the CARE Terminal, leased by GHPB member Coastal Cargo of Texas offers space for a wide variety of container, breakbulk and dry bulk cargo.

Two docks with 1,118 feet of continuous quay stand adjacent to space with 1,000 pound per-squarefoot capacity for project cargo and heavy-lift equipment. Onsite rail siding allows access to the Port Terminal Railroad, and the facility is equipped with two 235-ton Manitowoc cranes, a 95,000 pound top-loader, and dozens of heavy and light-duty forklifts for a variety of movements.

Greater Houston Port Bureau | 25

Woodhouse Terminal

Woodhouse is a versatile public dock whose break-bulk facilities are operated by a joint venture between Port Bureau Members Gulf Stream Marine and Shippers Stevedoring Company.

The terminal has three main docks with over 1,900 linear feet of space for berthing, 235,000 square feet of covered warehouse space and 87,000 square feet of cargo apron adjacent to over ten acres of open-air storage for container and project cargo. The RoRo slip is equipped for vessels with bow, stern, and quarter ramps.

BARGING AHEAD ever so politely.

B

Buffalo Marine Service, Inc. 26 | April 2013

www.BuffaloMarine.com

Houston Public Grain Elevator #2

Houston Public Grain Elevator #2 is a fully automated, 6.2 million-bushel facility leased to the Louis Dreyfus Corporation that can receive 30 trucks or railcars per hour of grain while depositing it into six 90,000 bushel bins and loading it onto vessels with a maximum speed of 120,000 bushels per hour. This Galena Park elevator allows Louis Dreyfus to move a tremendous amount of grain at an extremely high rate of speed and maintain some of the lowest through-put costs in the nation.

Greater Houston Port Bureau | 27

Executive Director, Port of Houston Authority

COL Len Waterworth, USA (Ret.) When Colonel Leonard “Len” Waterworth, USA (Ret.) first took the reins as the interim Executive Director of the Port of Houston Authority in February of 2012, he left seven years in the private sector, and nearly three decades of service in the US Army. “But you see, it’s the same skills in all of them – most people don’t realize what an enterprise the Port of Houston Authority is; it’s not pure government. When I was a soldier, pure government meant I would consume tax base to perform my mission. In the private sector, I would do whatever it took to maximize dollars.

Now, my mission is to create as much economic growth and as many jobs as possible for my shareholder: the citizens of Harris County. So it’s not pure dollars, it’s not pure service, but it’s a combination of the two that builds our economy and regional employment.”

Born in Washington D.C., Len actually spent the first five years of his life living in Japan with his parents before his father, in the Air Force, was sent to Holloman AFB, so the family packed up and moved to nearby Alamogordo.

Len made his way through school, and when he was ready to graduate, the Air Force Academy came and talked to him about going to Colorado Springs on a basketball scholarship. “I was working in an architectural firm at the time, but I also had glasses, so the lead architect asked me something to the effect of “So with your eyes, you can’t fly, you can’t navigate, and you can’t sit in a rocket silo… why would you go to the Air Force?” so I followed my girlfriend to New Mexico State University and got an Army ROTC Scholarship.”

In December 1978, Len c o m m i ss i o n e d as a 2nd Lieutenant Engineering Officer in the United States Army and after Officer Basic Course, he was assigned to Fort Bliss, the Army’s massive maneuver area and proving grounds located in El Paso and southern New Mexico.

His 90-day cycle as a combat heavy company commander and 28 |

April 2013

combat engineering company commander meant that his armored vehicles – massive armored bulldozers with an A-frame crane boom, winch and 165mm high explosive plastic ammunition, built on the frame of M60 Patton tanks – spent thirty days in the field, thirty days in garrison, and another thirty days on exercises. “You talk about interesting projects – we actually identified a lot of archeological sites in the desert north of El Paso. It was always cool to be in the Third Armored Cav… though I’ll admit that I do have a bit of deficit hearing in my mid-range where the sound of an Armored Personnel Carrier would normally be...”

Assigned as the first engineer intern to the Office of the Joint Chiefs of Staff in the mid-1980’s, Captain Waterworth spent time analyzing US basing requirements overseas and was involved in the conversion of the SS Worth – an oil tanker ­– to the USNS Mercy­ – the US Navy’s first hospital ship. During his time in Washington, Len also spent time as a professional development officer and the captain’s assignment officer at the Army’s Personnel Command (PERSCOM). “I sent about 100 officers to grad school in one form or another, then had all of the 4,000 Engineer Officer captains calling me asking ‘Where am I going, what am I going to be doing?’”

Selected below zone for Major, Captain Waterworth went to Fort Leavenworth, Kansas to receive a Master’s Degree before heading off to Germany for a number of assignments including operations officer for the 54th Engineers in Wildflecken (the “one-inch” battalion, named for their proximity to the Fulda Gap and near-constant operational readiness requirements).

After the Berlin Wall came down, Major Waterworth was assigned to the VII Corps Engineer Shop as an Engineer Planner. “It was pretty interesting – this is July of 1990 and we were starting computer exercises at the divisional level.” Working to plan movements of the Army’s massive VII Corps – entrenched in Europe since 1951, Len was faced with a challenge: how to take the VII Corps out of Europe and deploy them to Saudia Arabia. “We ran tests

and exercises and planned how to get it done, and then VII Corps became the Main Effort in Desert Storm along with the XVIII Airborne Corps.”

Reflecting on the planning necessary for such a massive movement of personnel and equipment, Len explains: “When I was in Stuttgart with VII Corps, we were facing intel that there were three complex obstacles on our way into Iraq. Essentially, at the end of all our modeling, I had to explain to General Franks that we’d destroyed our entire supply of combat engineer vehicles by the time we’d gotten through the second complex obstacle. But after laying out that we didn’t have the assets to complete the mission, General Franks was convinced, called up FORCECOM, and got us the tools we needed to do the job.”

Leaving Germany in 1994, Len was assigned to İzmir, Turkey. “I was the Chief of Infrastructure there for about eight months and got to inventory all the NATO infrastructure in Turkey. It was a gorgeous place and I went from Istanbul around the coastline to the Port of İskenderun on the Syrian border and got a chance to look at all the NATO pipelines – including the same pipeline I got to cross in Desert Storm that goes from northern Iraq to Saudi Arabia.” Later, Len was assigned as the executive officer for NATO Southeast (also in İzmir) until returning to the States in 1996.

After a tour in DC working to prioritize and budget equipment for the Army Corps, Len got the chance to go to the US Army War College in Carlisle, Pennsylvania, getting a Master of Strategic Studies degree and writing a thesis on planning for the future. While there, he noted that “The days when the United States could wait to react to the global situation may be gone... We must expand our intellectual capital now to anticipate and react to future requirements.”

When Len left the Army War College, he was assigned to the Civil Works District for the Army Corps of Engineers’ Central Region “That was my first time on the Civil Works side of the house.” Representing the Chief of Engineers to Congress, Len would work to ensure that the Army Corps received critical funding from the President’s Budget . “I’d explain that ‘This is what we need to do our job… if you want us to do more and work ahead, here is where we could use the money’ and they’d allocate the funds.” Representing the Army Corps’ interests from the Mississippi River to Texas, Len was well provisioned when he got his next assignment: command of the Galveston District for the USACE.

fits of the Bayport Channel in new jobs and expanded economic development.”

Retiring from the Army in January 2005, Len went to work for Dannenbaum Engineering, an engineering firm with a focus on transportation including port, harbors, and airports, public infrastructure, hydrology and land development. Starting as a Project Manager responsible for the METRO Houston Light Rail development, he was soon President of the Company where he oversaw Dannenbaum’s growth and success for nearly seven years.

“The same skills I learned in the military translated to the private sector – the motivation is just a bit different: I had to be more focused on return on investment, but a mission statement’s a mission statement.”

Asked about the transfer from a military career to the private sector, Len explains: “The military isn’t just about direct leadership, because you might only spend a third of your time in a command positions. The rest of the time you’re in staff positions, and a good staff officer does an analysis, formulates recommendations and then has to go to the senior leadership to convince them that you have the right recommendation for the situation they find themselves in.”

In February 2012, Len was asked to serve as Executive Director of the Port of Houston Authority. The Port Authority, with priorities on the horizon such as the widening & deepening of the Bayport Channel, hired Waterworth as the full-time Executive Director in April 2012.

During his first year on the job, COL Waterworth has worked to trim the PHA to operate more efficiently while increasing the organization’s transparency across the board. “We were organized like a municipal government, by functional area – now, we’re run like a business, or a military operation: by mission. That’s what it’s all about: build relationships, win work, offer world class support at the lowest cost, and make a profit.”

Len lives in the Heights in Houston, and has been married to his wife Cheryl for 28 years.

During his time in Galveston, Colonel Waterworth was responsible for setting in motion the $700+ million Houston Ship Channel Deepening and Widening Project that deepened the channel to 45 feet, developing a saltwater barrier on the Sabine-Neches waterway, and the Bayport Channel permitting process “where we had four thousand people at the public hearing. I fought for the development and I’m proud to say that we’re seeing the beneGreater Houston Port Bureau | 29

New Green Field Liquid Bulk I

ntercontinental Terminals Company announces full approval and start of construction for a new green field bulk liquid terminal on the Houston Ship Channel in Pasadena, Texas.

I

ntercontinental Terminals Company LLC (“ITC”) announced today that construction has begun on a new bulk liquid terminal on the Houston Ship Channel. The terminal will provide storage and handling services for petrochemicals and petroleum products as well as petrochemical gases and natural gas liquids (NGL). ITC is a wholly owned subsidiary of Mitsui & Co. (U.S.A.), Inc. (“Mitsui USA”). Operating on the Houston Ship Channel since 1972, ITC already owns and operates a 12.8 million barrel liquid bulk terminal facility in Deer Park, Texas. ITC’s team of highly dedicated associates is committed to continue its long standing reputation for providing safe and efficient services to its customers at the new Pasadena site.

T

he new green field terminal is located in Pasadena, Texas, on the south side of the Houston Ship Channel, one mile west of the Beltway 8 Bridge.

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April 2013

Lee MediaMoLLe Senior Vice President & Manager: 713-951-7107 Mark MccuLLough Senior Vice President: 713-951-7158 Forrest tayLor Vice President: 713-951-7130

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tonnage, and the largest importer and exporter of petroleum and petrochemical products. As the prime location for the petrochemical and petroleum industries, the area has enjoyed solid growth in recent years. It is poised to grow even faster as a result of the increased activity

k Terminal in Pasadena ITC Pasadena - Phase 1

due to the shale gas and oil revolution.

The new terminal will fill a growing need for additional marine logistics infrastructure in the Houston area.

T

he start up of operations will be second quarter 2015 with ten tanks of 100,000 barrels each. The terminal will have two deep water ship docks and four barge docks capable of handling large oceangoing tankers as well as inland barges. Multiple product pipelines are located adjacent to or near the new terminal, further adding to the logistics capability of the new state‐of‐the‐art terminal. The terminal will also have ample rail and truck handling facilities, providing the over $150 million project the ability to handle a wide range of petroleum and petrochemical liquids and gases. With 180 acres of land, the Pasadena terminal has scalability that enables significant further expansion of tanks and marine docks according to the expected growth in demand.

“

The new Pasadena terminal secures ITC’s growth opportunities for the future. We are excited to meet our customers’ growing need for new marine terminal infrastructure as the industry keeps growing. We are committed to continue ITC’s long standing reputation for safety, customer service and operational excellence and be part of the strong growth in Houston,” said Bernt A. Netland, ITC’s President & CEO.

M

itsuhiko Kawai, President & CEO of Mitsui USA added: “We are very happy for ITC’s new terminal in Pasadena, which shows Mitsui’s resolve to develop infrastructure and participate in the shale gas and oil revolution. This will continue to strengthen our position in serving the American petroleum, petrochemical and energy industries.”

Established on the Houston Ship Channel in 1972, Intercontinental Terminals Company LLC has grown its Deer Park terminal to a 12,758,000 barrels bulk liquid storage terminal for petrochemicals and chemical gases. With 239 tanks, five ship docks, ten barge docks, extensive rail and truck handling facilities as well as multiple pipeline connections, ITC’s Deer Park terminal is an important link for petrochemical and petroleum exports and imports vital to the region as well as the national industry. The company also owns or operates petrochemical terminals in Antwerp, Belgium, and Baton Rouge, LA.

Greater Houston Port Bureau | 31

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