sept 2010 news

Port Bureau News SEPTEMBER 2010

www.txgulf.org

Houston Ship Channel Security District

Spotlight on Tim Studdert Vice President—Operations, Buffalo Marine Photo Credit: Lou Vest, Houston Pilots Assn.

Port Bureau News Contents/Port Bureau Mission/Staff/Board of Directors

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St Joseph Medical Center

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Captain’s Corner: E Pluribus Unum

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Port Watch—Back and Forth We Go

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Houston Ship Channel Security District

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Houston Pilots Christen Yellow Rose

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Port Bureau Staff President:

Bill Diehl

Vice President:

Jeannie Angeli

Admin. Asst:

Cristina Gomez

Project Manager: Janette Molina Project Manager: Patrick Seeba Project Manger: Al Cusick

2010 GHPB Gala Photos

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Intern:

John Smith

Board of Directors 2nd Annual Captain’s Cup

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*Tom Marian—Chairman *Dennis Hansell—1st Vice Chair.

Spotlight on Tim Studdert, VP—Operations, Buffalo Marine

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*Mike Drieu—2nd Vice Chair. *John Taylor—Secretary /Treas. *Robert H. Blades

HarborLights

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USCG Industry Day & Gulf Winds International

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*Alec Dreyer *Charles H. Flournoy *Thomas C. Pace *Capt. John G. Peterlin III *Richard Russell

Upcoming Events at the Port Bureau

Back Cover

*Steve Stewart *Nathan Wesely Jim Black

Mission Our mission is to foster economic growth and regional cooperation across a diverse interest of public and private stakeholders that rely upon or benefit from the commercial synergy of the greater Houston port community

Ken Burnett Jan Crittenden Celeste Harris Jason Hayley Kevin Hickey

Vision

Guy W. Hitt

To be knowledgeable of all aspects of the port so that we can provide our members information and assistance to grow their businesses.

Shareen Larmond

Charlie Jenkins Kathy Murray Jerry Nagel

Services To our valued members, we provide:

 Real-Time and Historical Vessel Traffic Information for Houston, and the Ports of Texas  Expertise, Consulting, and Assistance in Maritime Affairs

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 Business Relationships and Networking Opportunities in the Houston Port Community

Vinny Pilegge Nolan Richardson Lloyd Schwing Earl Smith Tim Studdert Lawrence Waldron Armando Waterland Don Welch

Captain’s Corner E Pluribus Unum

In 1776, a small assembly of brave men joined together to create one of the most enduring documents in the history of the world. With the looming British army wounded but still far from defeated, they knew that their best chance for survival was through unification: one nation, one United States of America, one currency, one army, and one leader. Even though they came from different backgrounds, industries, and locations, and armed with different view points on the role of the federal government, they understood that the nation’s creation and preservation were far more important than semantic debates. By writing the Declaration of Independence, those patriotic men proved the motto we find on our currency and on the Great Seal of the United States, inscribed on the scroll hanging from the mouth of the bald eagle: “E Pluribus Unum.”

“E Pluribus Unum.” Out of many, one. Pat Bellamy, a great visionary here in Houston, had a similar goal: to create a security district to protect the Houston Ship Channel from potential terrorist attacks. The aptly named Houston Ship Channel Security District has brought together talent from across the city, uniting them in the cause of mutual safety. Throughout this newsletter, you’ll read more details about the Security District, its creation and evolution, and its applications in the future. What I want to do now, though, is recognize the board members of the District: Chairman Robin Riley, Secretary Tom Schroeter, Treasurer Clayton Curtis, and the other directors: Richard Henderson, Mark Skobel, Greg DeLong, Harry Engelhardt, Lawrence Waldron, Ray Yellig, Beth Bowles, and Steve Stewart.

These men and women have taken the initiative to lead this organization in its formative state, stepping to the helm at a time when the number of hard questions greatly outweighs the number of easy answers.

Great men and women realize that we must often put aside short term gain for long term profit. The creators and directors of the Houston Ship Channel Security District, like the members of the Continental Congress, realized that their ultimate goals would not come quickly or easily, but that they were worth the struggle. They realized that they stood the best chance of success by bonding together, creating one organization, The Houston Ship Channel Security District, exemplifying the idea that “E Pluribus Unum.” Out of many, one.

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Port Watch

Tom Marian—Buffalo Marine Service Back and Forth we go — July was a Welcome Month July was a welcome sigh of relief after June’s disappointing numbers; particularly throughout the Port of Houston. Activity abounded at the scores of terminals lining the shores of the upper Houston Ship Channel. In fact, in terms of sheer vessel arrivals, Houston had its best month of the year with 687 arrivals – 7% above last month and an impressive 22.5% above last year’s running total. To the south, Texas City tied its best month for 2010 with 115 vessel arrivals - an increase of 5% from June - and continued to make substantial strides over last year’s pace with a 43% increase over the same period last year. Galveston was another beneficiary of July’s solid performance registering a 11.5% improvement from the previous month.

Beyond Galveston Bay, oil’s apparent listlessness had an impact on Freeport and Sabine as both ports experienced 10.7% and 9.3% decreases respectively from June to July. To some extent, that was offset by positive gains in Brownsville of 8% and 14% in Corpus Christi. While this was not Corpus’ best month for the year, the port is up 31% from 2009 to 2010.

So what did the extra arrivals for Houston mean? Break bulk and bulk carrier movements continue their positive trend for the year with a modest 4% increase since last month. Chemical tankers were up nearly 9% and reefer vessels have made impressive gains posting a record 16 vessels in June indicating that the increase in container costs and demand for frozen products warranted the additional capacity. Finally, car carrier movements for the year are a torrid 77% higher than last year.

In contrast to the less-than-positive headlines on the state of the national economy, vendors and service companies are reporting more phone calls for justin-time services regardless of the premium pricing. The demand for electricians, supplies and bunkers throughout the waterways has been consistently robust over the last quarter and continues unabated through August. Nonetheless, summer in the Gulf of Mexico can be an uncertain season and it remains to be seen if the current gains are a regional silver lining in the maritime trade realm or the peak of an inventory replenishment that will soon be undermined by a national economy that appears to be flagging. –Tom Marian

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Houston Ship Channel Security District Formed by an act of state law in 2007, the Houston Ship Channel Security District is a successor to the Houston Ship Channel Security Council and tasked with protecting the waterway, people who live and work near the channel, and the companies along the channel who produce a combined $300 million worth of business every day in the Houston Port Region.

The Security District takes its direction from an 11 member board of directors. Chosen by industry and government, the board has two representatives from each of the four zones along the channel, as well as a representative from the Harris County Commissioners Court, the Port of Houston Authority, and the Harris County Association of Mayors and Councils.

How does the HSCSD Work?

The Security District works by collecting assessments from companies within the zone, and using the money to enhance security within the port. The District does this by providing cost-sharing for federal grants for large-scale capital development and security infrastructure, and by providing operations and maintenance funding for security projects already up and running.

Every year, the Department of Homeland Security awards grant monies to companies and organizations to improve security at industrial facilities and along the waterfront. For grants with matching requirements, the HSCSD uses assessments to offset the cost-share, and ensure that the region is able to take full advantage of available funds by identifying projects that will provide the best return on investment. The funds for fiscal year 2005, with no private matching funds requirement, have already been successfully used by Harris County to strengthen law enforcement communication capability. Command and control consoles at Harris County, TRANSTAR, the US Coast Guard, and the Port of Houston emergency response centers allow law enforcement personnel to share information in case of emergency.

Improving interagency lines of communication allows emergency response personnel to operate from the same playbook during potential incidents. An example of an upcoming security project is the Harris County FY2006 grant program, worth almost $13 million and requiring only $3.2 million in matching funds. The FY2006 projects, on which engineering and construction will

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Board of Directors Chairman: Robin Riley - Harris County Mayors & Council Zone One: Clayton Curtis - Oiltanking Houston Richard Henderson - ExxonMobil Zone Two: Mark Skobel - Valero Greg DeLong - Westway Zone Three: Harry Engelhardt - Dow Chemical Lawrence Waldron - Vopak Zone Four: Ray Yellig - Haldor Topsoe Beth Bowles - Celanese Chemicals Harris County: Steve Stewart - Gulf Winds Port of Houston Authority: Tom Schroeter - Port of Houston

Assessments Funding for the HSCSD comes from assessments levied on industry located within the district. Each year’s assessment is determined by the HSCSD Board after considering the proposed budgets for the next 3-years. Included in the proposed budgets are:   

Currently approved projects Approved projects for the coming year Ongoing operations & maintenance cost

Assessments are based on the acreage of a member company’s owned & leased facilities or their personnel count, including both employees and contractors. The assessments fall into 9 categories ranging from $5,000 to $250,000. This year the Security District will raise approximately $4 million to fund the budget for fiscal year 2011.

Invoices are sent out annually during the third calendar quarter and are payable upon receipt. This year’s assessments were originally published in July and will be mailed in early September. The criteria used for basing each assessment will be included on the invoice, and If a company’s assessment criteria has changed, the assessment may be appealed within the thirty-

shortly begin, develop a wireless Port Information Network (PIN) core, police department consoles, PIN mobile network support vehicles, DATS consoles/command & control, Port VTC initiative, and a PIN microwave backhaul initiative.

Pat Bellamy, former chair of the Houston Ship Channel Security Council observed that, “Without its strong relationshiporiented infrastructure, Houston's economic landscape would be very different than it is today... Most likely, there would be neither a Houston Ship Channel nor a Port of Houston as we know it.” The Houston Ship Channel Security District is continuing that tradition of working toChairman Riley gether to make a stronger, more economically bright future for our region.

day period beginning when the invoices are mailed. Detailed instructions on how to submit an appeal will also be included with each assessment invoice. After the 30-day appeal period, the Security District will review all appeal requests and notify the company of the time and place for their appeal hearing.

JOHN L. WORTHAM & SON, L.L.P. 2727 Allen Parkway, Suite 2110 Houston, Texas 77019 Phone: 713 346-1339 Fax: 713 526-7018 Contact: Charles Flournoy, Partner Ted Rosen, Partner

Our Marine Industry clients are involved in all phases of the marine industry. They include vessel owners, charterers, terminal operators, cargo shippers, and numerous others. We develop insurance programs that are tailor-made to your unique needs.

For answers to additional questions about the Houston Ship Channel Security District, or the upcoming assessment process, go to http://www.hscsecurity.com, or contact the district at 713-671-0947.

The Yellow Rose—A New Pilot Boat from the Houston Pilots Association On August 28th, the Houston Pilots christened the Yellow Rose—the fourth pilot boat now in operation. Joining the Houston Pilot Boat Number One, the Bayou City, and the Lone Star, the Yellow Rose ferries pilots from shore to blue-water vessel so that they may bring them to the docks.

Built by Seattle-based Kvichak Marine Industries, the 75 foot, allaluminum vessel is powered by twin Cummins QSK-38 engines rating a total of 2800 BHP. The engines are coupled to ZF 4600 transmissions driving twin Hamilton 651 waterjets, allowing for excellent maneuverability and a top speed of about 29 knots when fully loaded. The Yellow Rose engines and hull design also allow her to come to a complete stop within two boat lengths—150 ft.

Helen Green, wife of Congressman Gene Green (TX-29) broke the traditional bottle of champagne over the bow of the vessel , and a crowd of over 200 watched a demonstration of the vessel’s handling and maneuverability.

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Honoring Clyde Fitzgerald—South Atlantic & Gulf Coast District International Longshoreman’s Association

2010 Greater Houston Port Bureau Gala

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Spotlight on Tim Studdert

Vice President, Operations—Buffalo Marine Service, Inc.

Buffalo Marine Service declares that “Our fleet is young, agile, and powerful. We do everything possible to get your order processed quickly”. Taking a look at Tim Studdert, Vice President for Operations at Buffalo, visitors quickly see how true that statement is. “I think this is the neatest business in the world—each and every day presents a unique challenge. From the installation of coriolis meters on our bunker barges to preparing for the low sulphur regulations we are constantly looking for innovative ways to improve our service to the customer.” Tim Studdert, Vice President for Operations at Buffalo Marine Service, Inc., brings enthusiasm and energy to the 85 year old Houston barge/ bunker company.

Born in Houston, Tim grew up and went to La Porte High School where, after getting an invitation from a neighbor, he first began to swing a golf club and developed a lifelong enjoyment of the game. From the high school team to junior college, began his high education at College of the Canyons. Moving later to Grand Canyon University in Phoenix, AZ, Tim played for three years at the university where he met his wife Tracee and received a Bachelor’s of Education degree before moving back to Houston to begin working at Buffalo Marine.

Tim started at Buffalo working outside: from working on refueling vessels to the yard, to maintenance and working on new constructions, Tim still gets a twinkle in his eye talking about the different types of jobs that he’s done at Buffalo, “Working on the waterfront, up close to these big ships—it’s awesome to see how much goes through here, and how varied the cargo is. I mean, every thing from big steel piping to frozen chickens and cruise ships”.

Now, working in the office, one of Tim’s daily affairs is maintaining accountability for the personnel that work at Buffalo and has effusive praise for all of the men and women that keep Buffalo running strong. "Our greatest asset is our people. They deserve the best support possible and when you work hard for them they work hard for you. It is that dedication and loyalty which allows Buffalo to nimbly and creatively respond to the numerous challenges that confront our mariners on any given day. Their commitment to succeed ensures Buffalo always exceeds expectations."

Tim and Tracee are the proud parents of Kennedy (7 years), Brooklyn (3 years), and Carter (1 year) Studdert, and Tim enjoys playing golf in his free time. As a member of the Greater Houston Port Bureau board of directors, Tim is the chair of the golf committee and responsible for organizing the Captain’s Cup golf tournament.

Buffalo Marine Service began operation in 1935 and is now one of the largest bunker/barge operations in the Houston port region. From Corpus Christi to Mobile, Alabama, Buffalo operates 28 barges, 14 push boats, and has one of the youngest, most energy efficient, powerful and environmentally protective fleets available. All Buffalo vessels are navigated by experienced Tankerman-certified captains and are manned by licensed tankermen and deckhands and are backed by an efficient ground support team. Buffalo’s weekly in-house training and safety meetings ensure that all personnel are up-to-date on new safety, security and equipment issues, and Buffa-

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WWW.TXGULF.ORG

Announcing the 5th Annual

USCG Industry Outreach Day - October 5th Don't miss this once a year experience to meet your local Coast Guard representatives. The last 5 events were standing room only!

WHERE: City of Galena Park Alvin D. Bagget Community Center 1302 Keene Street Galena Park, TX 77547-2457

WHEN: Tuesday, October 05, 2010 Coffee and Donuts at 0830 Followed by Presentations

You do not have to be a Greater Houston Port Bureau or WGMA member to attend this free educational program. All industry stakeholders are invited but we must have your advanced RSVP. If you have suggestions for topics of discussion please remit ideas & your RSVP’s to : LT Jennifer Hnatow at Jennifer.L.Hnatow@uscg.mil or (713) 671-5184.

Upcoming Events at the Port Bureau Thursday September 8, 2010—2010 Petrochemical & Maritime Outlook Conference Presented at the Pasadena Convention Center by the Economic Alliance for the Houston Port Region in partnership with the Greater Houston Port Bureau and Port of Houston Authority, the 2010 Petrochemical & Maritime Outlook conference will focus on steel imports, the Panama Canal expansion, and a petrochemical forecast.

Monday November 1, 2010— 2nd Annual Captain’s Cup The 2nd Annual Captain’s Cup Golf Tournament will be held at the Brae Burn Country Club and feature 18 rounds of golf, a $10,000 Hole-in-One Challenge, Driving Range, Putting Green, and Steak Dinner.

Port Bureau News Advertising Reaching 1500+ 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.

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