Port Bureau News March 2011
www.txgulf.org
Spotlight on Jason Hayley VP Operations —The Port of Texas City
Special Focus: Congress
Captain’s Corner
Education: An Ornament in Prosperity, and a Refuge Through Adversity In Texas, we’re proud to take a stand and build our businesses on knowing the market, hard work, and innovation. Our elected officials representing us in Washington DC do their part by supporting our interests and working to develop the capital infrastructure necessary for the jobs along our waterfront to thrive. In early February, I went to Washington as part of a coalition of Marine Exchanges to meet with some of our congressional representatives, as well as various agencies with maritime responsibilities including: the Coast Guard, EPA, NOAA, and the National Maritime Intelli-
gence Center. Within the Department of Transportation, the Highway Administration is a strong advocate for commerce on our roads, the FAA works with the airlines, but in the maritime industry, we don’t seem to have a corresponding champion. As a result, we seem to be losing our place at the budget table, even though our industry contributes significantly to our nation’s economy. We are going to have to start sounding five long blasts on the ship’s horn if we’re going to get DOT to look in our direction. We’re not giving up yet: next week, I’m going again with several Port Bureau members to press the cause of dredging and harbor maintenance directly to our delegation. In the interim, I’m proud to see that Senators Hutchison and Cornyn co-sponsored legislation that, if passed, annually ensures that all funds collected by the Harbor Maintenance Tax are allocated for harbor maintenance and dredging. A similar bill was brought to the House of Representatives in January, cosponsored by regional Representatives Pete Olson, Gene Green, Ted Poe, Ron Paul, and 38 other co-sponsors. In this period of budget deficits, shortfalls, and cuts, our nation’s waterways are the key to success. As a force multiplier for our economy, every dollar spent to develop and maintain our ports and harbors comes back many times over as jobs, trade, and revenue.
Port Bureau Staff Bill Diehl Jeannie Angeli Al Cusick Jonathan Edwards Cristina Gomez Janette Molina Patrick Seeba
Board of Directors *Tom Marian—Chairman *Dennis Hansell—1st Vice Chair. *Mike Drieu—2nd Vice Chair. *John Taylor—Secretary /Treas. *Robert H. Blades *Alec Dreyer *Charles H. Flournoy *Capt. Steve Conway *Capt. John G. Peterlin III *Capt. Richard Russell *Steve Stewart *Nathan Wesely Jim Black Ken Burnett Jan Crittenden Celeste Harris Jason Hayley Kevin Hickey Guy W. Hitt Charlie Jenkins Shareen Larmond Kathy Murray Jerry Nagel Vinny Pilegge Nolan Richardson Lloyd Schwing Earl Smith Tim Studdert Lawrence Waldron Armando Waterland Don Welch *Denotes Executive Committee Members
As Senator Carl Levin (D-MI) noted when introducing the Harbor Maintenance Act of 2011, “As commerce continues to grow and shipping becomes an ever-more-important driver of economic growth, proper maintenance is vital... A wise car owner does not ignore the need to change the oil. A smart homeowner makes sure the roof is in good shape. They do so because a small investment in maintenance today can prevent much bigger costs tomorrow. We should follow the same philosophy when it comes to our harbors. We should ensure that we make smart investments today that will pay off for years to come. “ -Bill Diehl, GHPB
Navigating through the Fog
Using Pilot Dispatch Information to Avoid Paying Costly Cancellation Fees
Vessel agents: as critical links in the supply chain, these professionals are the vehicles for ship owners, operators, and charterers to manage their risk and provide piece of mind as their interests are protected at each port of call. One variety of cost that many local agents face are those associated with changes made to a vessel’s movement schedule as she arrives, sails, or shifts. The Houston Pilots tariff outlines charges a vessel can be assessed for various changes: Detention—On Bar after 1 Hour or At Dock after 1/2 Hour
$392.47 / hour
Holding Time not attributable to weather
$392.47 / hour
On-Dock Cancellation with less than two hours notice
$392.47
On-Bar Cancellation with less than four hours notice
$654.15
Vessel agents manage their ship’s schedule skillfully to avoid these charges and save money for their principle. In Houston, the HarborLights system allows agents to schedule information as soon as orders are placed for Continued on Following Page...
vessel movement. Unlike traditional AIS tracking programs which merely display current position and heading, the HarborLights system displays up-to-the-minute dispatch information. Seeing the most up-to-date scheduling information available means that agents using the HarborLights system use the same data as pilot dispatch. With this, their scheduling decisions can decrease the number of costly delays and cancellations made in port. A major oil company recently offered the results of a study of their international operations that highlighted a potential annual savings of five million dollars if they could enjoy just a thirty minute reduction of the worldwide turnaround time of vessels in port. The vessel agent, responsible for scheduling and updating the vessel’s time in port can provide significant value to their customer by managing all the resources at their disposal. In Houston, many vessel agents are already seeing significant cost savings with the HarborLights Vessel Tracking System. If you are interested in a ten-day free trial of the HarborLights system, contact Patrick Seeba at the Port Bureau at 713-6784300, or pseeba@txgulf.org. - P. Seeba Patrick Seeba helps new HarborLights subscribers adapt their dispatch system
YMCA International Services The United States was formed by immigrants. In the 19th century over 50,000,000 people came to our country from Europe alone. Often we forget our country was founded by those from other countries. Refugees, forced to flee their homeland because of persecution based on their, race, religion, political views or ethnicity, are a unique group. In 2010, YMCA International Services helped 936 refugees to settle in Houston, and within six months 70% found jobs in our local economy. Why is this important? Refugees form an integral part of our workforce as hard working, dependable workers who are eager to assimilate into the American way of life. Local companies such as the Omni Hotel, Hotel Za Za, Camelot, Tramontina and Foxconn are benefiting from their refugee hires. Since 1978, YMCA International Services has answered the call by facilitating and fostering self-sufficiency. Once refugee clients arrive in the US, they are met at the airport and taken to their first apartment outfitted with furniture, food and other necessities. Jeff Watkins, Community Executive Director, feels the YMCA’s focus on youth development; healthy living and social responsibility are definitely being met by serving the refugee community. “Our programs, ranging from resettlement to education and immigration legal services, encompass the full spectrum of a family’s needs. The Y’s program to assist victims of human trafficking gives them opportunity to escape their oppressors and lead productive lives.” Educational services insure refugees become acclimated to their new community via institutions such as Houston Community College, and in-house programs prepare refugees to earn their GED. Settling in and getting an education all play a big part in a refugee’s life in Houston. Without a job, though, the picture of hope in America can fall apart. American firms can benefit from hiring a refugee. Besides possible tax credits and cultural diversity, companies receive a loyal and dedicated employee: professionals, manufacturing and general laborers. For further information, Job Developer Rosyln Polly, or Employment Services Director Ann Amedy, can be reached at 713-339-9015. They can take your job order via phone or internet: http://www.ymcahouston.org/ymca-international/
(upper-left) - Kevin Hickey, Houston Fuel Oil Terminal and Roger van Duzer, Moran-Gulf Shipping. (upper-center) Wally Holmes, GAC Shipping, Shareen Larmond, WGMA. (upper-right) - RADM William “Bear� Pickavance, USN (Ret.), Superintendent, Texas Maritime Academy. (center-right) Daniel Cassler, University of Houston, talks about the educational programs of the greater Houston area. (mid-low right) Carolyn Daglish taking to Lee Kamenoff and Mike Rogge, Chipolbrok, Schroder Marine Services. (lower-right) Members eat and network before the program at the February Commerce Club Meeting. (lower-left) Robert Johnson, NT of America, Duane Hinchliffe, and Chris Morgan, Kinder Morgan (mid-low left) , Efrem Pierce, Jack Yates H.S., Mitch Schater, San Jacinto Jr. College, (middle-left) Jim Maxey, Danners, Inc., C.A. Rousser, Rousser Companies, George Pontikos, Odfjell. (mid-upper left) Fred Lucha introduces himself to a potential new customer.
Houston Port Region Congressional Delegation Senator John Cornyn—*R-TX+ Senator John Cornyn, currently serving his second term representing Texas in the US Senate serves as the Chairman of the National Senatorial Committee. He also sits on the Senate Finance, Judiciary, Armed Services, and Budget Committees, and is the top Republican on the Judiciary Committee’s Immigration, Refugees and Border Security subcommittees. In addition to his legislative committee work, Senator Cornyn is the Chairman of the Senate India Caucus, Chairman of the Senate RFID (Radio Frequency Identification) Caucus, and Vice Chairman of the Senate Republican Conference Task Force on Hispanic Affairs. Senator Cornyn joined Senator Hutchison and thirteen other Senators recently in cosponsoring the Harbor Maintenance Act of 2011. (see insert) A Message from Senator Cornyn for Port Bureau News Readers It is my privilege and honor to represent you in the United States Senate. The Houston port region includes some of the most dynamic job-creators in our state and the nation. Many of you create jobs by bridging this region to trade markets around the world and by carrying the goods that represent the ingenuity and hard work of millions of Americans. Some of you create jobs by harvesting the riches of the sea itself – through our offshore oil and gas industry, which is central to America’s energy security and independence. As your U.S. Senator, my top concern is protecting the jobs you have created and removing Washington-imposed barriers that are hindering your continued growth and job creation. As we begin the 112th Congress, I believe we must focus on priorities that encourage—not hinder—America’s job creators to expand and make new hires.
Senator Kay Bailey Hutchison—*R-TX+ Elected in 1993, Senator Kay Bailey Hutchison is the first and only woman elected to represent Texas in the US Senate. As the senior Republican on the Senate Committee for Commerce, Science, and Transportation, she also serves on the Appropriations Committee, the Committee on Banking, Housing, Urban Affairs, and the Committee on Rules and Administration. She is also the Chairman and now Ranking Member of the powerful Appropriations Subcommittee on Defense. In 2004, Senator Hutchison helped pass the National Intelligence Reform Act, which included provisions she authored to ensure greater screening on air cargo. It also instructs the Transportation Security Administration to establish a database of known shippers, develop facility security plans, and mandate the use of worker identification cards.
Harbor Maintenance Act of 2011—Cosponsored by both Texas Senators Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, (1) IN GENERAL- The total budget resources made available from the Harbor Maintenance Trust Fund each fiscal year pursuant to section 9505(c) of the Internal Revenue Code of 1986 (relating to expenditures from the Harbor Maintenance Trust Fund) shall be equal to the level of receipts plus interest credited to the Harbor Maintenance Trust Fund for that fiscal year. Such amounts may be used only for harbor maintenance programs described in section 9505(c) of such Code. GUARANTEE- No funds may be appropriated for harbor maintenance programs described in such section unless the amount described in paragraph (1) has been provided. Enforcement of Guarantees- It shall not be in order in the House of Representatives or the Senate to consider any bill, joint resolution, amendment, motion, or conference report that would cause total budget resources in a fiscal year for harbor maintenance programs described in subsection (b)(1) for such fiscal year to be less than the amount required by subsection (a)(1) for such fiscal year.
Congressman Al Green—*D-TX+—District 9 Serving his second term in congress, Congressman Al Green is one of the newest members of the Committee of Homeland Security. Green is dedicated to increasing U.S. port and border security and reducing chemical, biological, radiological and nuclear threats. Congressman Green said “Homeland security is also hometown security for us. It helps secure the community, which helps secure our nation.” For nearly ten years, Green has served as president of the Houston branch of the National Association for the Advancement of Colored People (NAACP). In an effort to ensure that all Houstonians share in its growing economy, Green created the Houston Fair Share program, which encourages corporations to join with minority firms in joint ventures and to hire minority vendors. He also co-founded the Black and Brown Coalition with Judge Armando Rodriguez. This organization brings together Houston's African American and Hispanic communities to work on issues of common interest.
Congressman Gene Green—*D-TX+—District 29 Representing Texas since his first term as a member of the Texas House in 1973, Congressman Gene Green has been a vocal member of the Houston Port Region’s congressional delegation since his election to the House of Representatives in 1992. Congressman Green serves as the vice-chairman of the powerful Energy and Commerce Committee, where he is the ranking member of the subcommittee on Environment and the Economy.
As the representative for the 29th District, Green has worked diligently to secure federal funding for the expansion of the Port of Houston and George Bush Intercontinental Airport.
Congressman Green is currently a co-sponsor of HR 104—the RAMP Act which provides that the federal government will annually appropriate funds collected under the Harbor Maintenance Tax for use dredging and maintaining American harbors and waterways. A Message from Representative Green for Port Bureau News Readers I am proud to represent most of the Port of Houston and especially proud to represent the many businesses and thousands of folks who work at the Port and along the Houston Ship Channel. With the expansion of the Panama Canal and Port Lazaro del Cardenas in Mexico, traffic on the channel and at the Port will only increase and we are currently working to prepare for this growth.
In Congress, our office tries to ensure that business at the Port runs as smooth and safe as possible. A major part of this effort is the annual request we make to secure funds for dredging and maintenance. I was especially pleased to see our requests for stimulus funds fulfilled with the award of $98.8 million for the Port of Houston. I look forward to continuing this hard work on behalf of such a vital economic engine of our area and the country.
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Congresswoman Sheila Jackson-Lee—*D-TX+—District 18 After serving as a member of the Houston City Council, Congresswoman Sheila Jackson-Lee took office representing District 18 in January, 1995. In her seventh term in the United House of Representatives, she currently sits on the House Committees on the Judiciary, Homeland Security and Foreign Affairs. She is also the Chairwoman of the Transportation Security and Infrastructure subcommittee of the Homeland security committee.
Congressman Pete Olson—*R-TX+—District 22 A decorated Naval veteran, Congressman Pete Olson has represented the 22nd District of Texas since his election in 2008. After receiving his law degree from the University of Texas, School of Law in Austin, Olson completed the Texas Bar exam the same day he took the Oath of Office for service in the United States Navy where he spent nine years as a naval aviator flying the P-3C Orion. In 1998, Congressman Olson was appointed as an aide to Texas Senator Phil Gramm and then later served as chief of staff for Senator John Cornyn. After taking the oath of office on January 6, 2009 as the representative for District 22, Congressman Olson has served on the following committees; House Transportation and Infrastructure, Science and Technology (Ranking Member, Space and Aeronautics subcommittee) and Homeland Security. Congressman Olson is currently a co-sponsor of HR 104—the RAMP Act which provides that the federal government will annually appropriate funds collected under the Harbor Maintenance Tax for use dredging and maintaining American harbors and waterways.
Congressman Dr. Ron Paul—*R-TX+—District 14 After graduating from Duke University School of Medicine, Congressman Paul became a flight surgeon for the United States Air Force during the 1960’s. Once elected to congress in the late 1970’s Congressman Paul served on the House Banking Committee, and in 1984 voluntarily relinquished his House seat to return to his medical practice. In 1997 Dr. Paul returned to congress and now serves on the House Financial Services Committee, the International Relations Committee, and the Joint Economic Committee. On the Financial Services Committee Congressman Paul serves as the vice-chairman of the Oversight and Investigations subcommittee. Congressman Dr. Paul is currently a co-sponsor of HR 104—the RAMP Act which provides that the federal government will annually appropriate funds collected under the Harbor Maintenance Tax for use dredging and maintaining American harbors and waterways.
Congressman Ted Poe—*R-TX+—District 2 Prior to being elected to Congress, Congressman Ted Poe served Harris County as one of the youngest judges ever to be appointed in Texas and was reelected 5 times, serving for over twenty years on the bench. Once elected to the U.S House of Representatives, Congressman Poe has taken on active roles with the house Judiciary and Foreign Affairs Committees. Congressman Poe is also an outspoken advocate in Washington for border security. Poe travels on a regular basis to the southern borders to meet directly with local law enforcement and residents, and is known nationally for his efforts to secure the nation’s borders and establish a plan for energy independence. Congressman Poe is currently a co-sponsor of HR 104— the RAMP Act which provides that the federal government will annually appropriate funds collected under the Harbor Maintenance Tax for use dredging and maintaining American harbors and waterways.
Spotlight on Jason Hayley Director of Waterfront Operations—The Port of Texas City “Just think about it—the Port of Houston moves over 200 million tons a year—but there are over 30 private terminals moving cargo in addition to the Port of Houston Authority. In Texas City, we move over 50 million tons of cargo every year… and we have a measure of responsibility for every single one.” Jason Hayley is proud of his operations. The Port of Texas City/Texas City Terminal Railroad Company operates over 90% of the docks in the 10th largest port in the United States. Raised not far from the Port where he now works, Jason graduated from Texas State University in 1990 with a major in resource and environmental studies. After college, he performed environmental site assessments, working for Galveston County as a contractor to the Texas Natural Resource Conservation Commission—now the TEQC. In 2000, he began working for the Texas City Terminal Railway Company/Port of Texas City. His work began focusing on operations, but in late 2001, the increased focus on national infrastructure security meant that someone had to step up and coordinate security arrangements for the Port. In short order, Jason sat down with port tenants and the group formed an advisory council—representatives from BP, Valero, NuStar, and other players along the channel sat down and came up with a cost-sharing plan that balanced the necessitates of security with ensuring the smooth flow of maritime commerce. The Port of Texas City Security Council was soon solidified as a 503(c)3 and has taken responsibility for securing the Port of Texas City through port-wide security procedures, drills, development, and conducting security-related outreach and education. As the director of waterfront operations for the 10th largest port in the nation, he manages the day-to-day operations of the Port including the harbormasters office, coordinating waterfront activities such as dredging, maintenance/ repair, and acting as the liaison between the Port and its tenants. Also, Jason works with the region’s US Senate and House delegation to boost funding for dredging projects and coordinate environmental activities. Jason is an avid boater, enjoying fishing and reading, and is active on several boards including the Greater Houston Port bureau, HOGANSAC, the Texas City/Le Marque Chamber of Commerce, the City of Texas City’s Harbor FTZ Corporation, and the USCG Port Coordination Team. He is the Chairman of the Board for the Port of Texas City Security Council, and active in the Propeller Club of Galveston, and the Texas City High School Golf Booster Club. He was recently married, and lives in Texas City. The Port of Texas City/Texas City Terminal Railway Corporation is a privately owned port working to move over 50 million tons of waterborne cargo every year. With shareholders Union Pacific and Burlington-Northern Santa Fe Railroad companies, the Port of Texas City operates switching operations and over 51 km of track, MP1500 horsepower locomotives, and a state-of-the-art railroad track scale for customers.
Port Watch
Tom Marian—Buffalo Marine Service
The renewed discomfort of pulling into your local gas station may have sapped some of the end-of-year good cheer but it certainly has resulted in a frenzy of activity in the nation’s largest petro-chemical port. What was most noteworthy during the first month of the new year was the surge in barge movements throughout the Houston Ship Channel. While last year’s 6.5% increase in barge movements was a rather positive development, in January alone the numbers are already 12% over 2010’s monthly numbers. This is certainly linked to the escalating price of oil which continues to surge as the summer driving season looms. On the blue water front (i.e., non-barge movements) those ports that possess large refinery and black oil storage infrastructures experienced a solid uptick over last month’s vessel arrivals. Texas City lead the pack with a 12.5% increase which was followed by Sabine with a 5% jump. Houston and Galveston also posted positive numbers over December’s tallies at 4% and 6% respectively. Interestingly enough, the most significant category increase in Houston was posted for bulk carriers at well over 28% as compared to December. Tanker movements in the port of Houston remained strong and LPG movements experienced a healthy 8% month-to-month climb. Of course, where there is an upside there is a downside. On the port front, that was reflected in a 8.5% decrease in Corpus Christi’s vessel movements and Freeport began 2011 on a less-positive note as it saw its vessel count drop by over 12% from December. Upon reflection, this may not have been unexpected given 2010’s strong finish and the standard “cooling off” period as evidenced by a decrease in container ship arrivals, general cargo movements and chemical tank vessel that called upon the port of Houston. Nonetheless, Texas ports as a whole saw 3.5% more vessel movements in January than in December. In fact, the overall vessel arrival numbers for The Lone Star State were more than 10% above January 2010; another indication that the Great Recession is fading evermore into the past? Perhaps - but it is difficult to tell how much consumption will be eclipsed by higher fuel costs throughout the intermodal continuum which ultimately translates into higher prices across a wide array of goods. Add to the fact that February 2011 posted nine consecutive fog days which, in turn, have disrupted the blue water supply chain and it will be interesting to see if today’s events impact the muchanticipated summer buildup of 2011.—Tom Marian, Buffalo Marine Service
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Greater Houston Port Bureau—111 East Loop North—Houston, TX—77029
713.678.4300
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Upcoming Events at the Port Bureau March 10
Commerce Club Luncheon Brady’s Landing Restaurant David P. Russell, President—Rowan Drilling Company
April 14
Commerce Club Luncheon Brady’s Landing Restaurant Steve Flynn, President—Center for National Policy
April 27-May 1
Specialized Coffee Association of America Exposition George R. Brown Convention Center
May 12
Commerce Club Luncheon Brady’s Landing Restaurant CAPT Marcus Woodring, USCG—Sector Houston-Galveston
June 6-9
Joint Harbor Safety & AMSC Conference Hilton of the Americas Hotel & Conference Center
August 20
82nd Annual Maritime Celebration & Silent Auction Houstonian Hotel
November 7
Captain’s Cup Golf Tournament
GHPB Members Advertise in the Port Bureau News Reaching 3000+ Professionals in the Houston Port Region, contact the Port Bureau at (713) 678 4300, or pseeba@txgulf.org to arrange for either 1/6 page, 1/2 page, full page, or back cover advertisements.
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