2016 ANNUAL REPORT
2.2 MIL TEU 2.23 MIL TONS STEEL 34.8 MIL TONS CARGO HANDLED
1.175 MIL JOBS 265 BIL STATEWIDE ECONOMIC IMPACT $289 MIL TOTAL REVENUE
CONTENTS Message from the Chairman..................4 The Port Commission............................8 Message from the Executive Director....10 Financial Highlights..............................14 Financial Information............................16 Operational Performance.....................18 Health, Safety, Security and Emergency Management (HSSE).........20 Government Relations.........................24 Environmental Stewardship..................28 Community Outreach..........................30 Recognition of Service ........................33 About Port Houston............................34
2016
“Our continued infrastructure investments include the Houston Ship Channel, our terminal channels, our container terminals and other targeted projects. We strategically identify and fund capital projects that provide the greatest return on investment that serves the growing demand of our customers � .
CHAIRMAN JANIECE LONGORIA
MESSAGE FROM PORT CHAIRMAN JANIECE LONGORIA Port Houston – The Premier Gateway for International Commerce Port Houston is recognized as the International Port of Texas and continues to be the premier gateway for international commerce because of our extraordinary people and our focus on targeted capital investments, continued modernization of container terminal infrastructure, channel improvements and strategic initiatives. These items were highlights of 2016. The greater Port of Houston, which includes Port Houston’s eight public
THE LEGACY CONTINUES THROUGH FOCUS ON STRATEGIC
terminals, along with more than 150 privately owned industrial terminals, ranks
INITIATIVES
first in the nation in foreign waterborne tonnage, first in U.S. import tonnage, first
In order to continue this legacy of service to our region and state, we focus
in U.S. export tonnage, second in total tonnage and continues to be recognized
on our mission to move the world and drive regional prosperity, and our vision
as the nation’s leading breakbulk port.
to be America’s distribution hub for the next generation. Throughout 2016, Port Houston continued to implement the strategic plan approved by the
Port Houston and the industry along the Houston Ship Channel continue to
Commission to drive success through our commitment to our mission, vision
drive growth and are essential to the nation’s energy and economic security. As
and core values. To do this, we honor and support our four strategic goals of
host to the nation’s largest petrochemical complex, the Houston Ship Channel
infrastructure, growth, people and stewardship to maintain our place as the
provides a significant share of the refined petrochemical products that fuel our
port of choice for Gulf Coast commerce.
nation, and exports of petrochemical products and resins continue to drive growth in exports from our terminals, making us a leading port for exports.
INFRASTRUCTURE - THE BACKBONE OF OUR PROSPERITY
With a national economic impact of $617.5 billion, and a statewide impact of
Our continued infrastructure investments include the Houston Ship Channel,
$265 billion, it is no wonder that we are responsible for 16 percent of the state’s
our terminal channels, our container terminals and other targeted projects.
annual gross domestic product. And as a leading job creator for our region,
We strategically identify and fund capital projects that provide the greatest
we are responsible for 1,174.567 jobs, which continue to grow year over year.
return on investment that serves the growing demand of our customers.
4 n MESSAGE FROM THE CHAIRMAN
THE PORT IS RESPONSIBLE FOR
1.2 MILLION JOBS ANNUALLY IN THE STATE OF TEXAS.
PORT HOUSTON n 5
As the lifeblood of our maritime commerce, the Houston Ship Channel continues
Panama Canal locks. The deepening of the terminal channel at Barbours Cut
to be an important focus for investment. Working in steady partnership with
and at Bayport have been completed. We are now working with the U.S.
stakeholders along the ship channel, Port Houston leadership and staff play
Army Corps of Engineers to modify the flare (the entrance to the Bayport
a significant role in ensuring that international commerce continues to flow
Channel from the main Houston Ship Channel) for enhanced navigability and
freely through this 52-mile channel, the busiest in the country.
safety for larger ships that transit the channel.
As the local sponsor of the Houston Ship Channel, Port Houston is working
Our container terminals and our other facilities also require continued targeted
with the U.S. Army Corps of Engineers to fund a new mega-study intended
investment. Enhancements and upgrades to our first container terminal
to review competitive opportunities and return on investment for the channel
constructed in 1977, Barbours Cut, are ongoing to gain increased efficiency,
improvements that include deepening, widening and other navigation safety
facilitate larger vessels and nearly double the container-handling capacity of
features beyond the current authorized dimensions. As the non-federal
this terminal in its existing footprint. The year 2016 marked the first full year
partner, we are investing in this study to assure that important elements are
of operation for the four new Super Post-Panamax wharf cranes at Barbours
considered, including maintaining competitive strength and the clear return
Cut and three additional wharf cranes are scheduled for delivery in 2017.
on investment provided by infrastructure supporting Port Houston. We also continue to build out our newer Bayport Container Terminal, where Of course, maintaining the federal channels serving our port will continue to
additional container yard and wharf expansion projects are underway to
be an important focus. As the local sponsor of the channel, we work closely
facilitate a rapidly growing demand in container trade. Three new ship-
with the U.S. Army Corps of Engineers to facilitate navigation and commerce.
to-shore cranes for the terminal were under construction in 2016 and are
While maintenance dredging is the federal government’s obligation, the
slated to be delivered in early 2018. Capital improvements to achieve the
allocation of federal funds for maintenance dredging has fallen short of the
infrastructure needs at Barbours Cut and Bayport terminals combined total
amount needed to maintain the channel at its authorized depth of 45 feet and
more than $600 million over the next five year period.
width of 530 feet.
Roughly $100 million is collected every year in federal Harbor Maintenance Tax from channel users, based on the value of imported cargo. Those tax revenues are deposited in the Harbor Maintenance Trust Fund intended
WE ALSO CONTINUE TO MASTER PLAN OUR FACILITIES, TO ASSURE THAT WE STAY AHEAD OF DEMAND AND DEPLOY PROJECTS AND INNOVATION THAT WILL MAINTAIN OUR ROLE AS THE LEADING GULF COAST PORT AND THE PREMIER GATEWAY FOR INTERNATIONAL COMMERCE.
for maintenance dredging of federal navigational waterways. The federal appropriations for the Houston Ship Channel average nearly $30 million
GROWTH – THINKING BOTH INSIDE AND OUTSIDE THE BOX
annually, which falls short of the $50-$60 million needed to adequately
Container volumes at Port Houston increased by two percent in 2016
maintain the channel. Continuing to advocate for federal funds for channel
compared to 2015, to nearly 2.2 million TEUs. And continuing this good
maintenance continues to be a high priority for Port Houston.
news, container volume has increased by 16 percent for the first 6 months of 2017 as compared to the same time period in 2016. And we successfully
Our terminal channels have also been deepened to match the Houston Ship
retained container cargo that was diverted from other ports during the prior
Channel to maintain opportunity to receive deeper draft vessels calling on
year and have increased our volume across most of our trade lanes.
Port Houston terminals following the recent upgrade and expansion of the
6 n MESSAGE FROM THE CHAIRMAN
Our petrochemical industry customers drive rapidly growing exports through the manufacture of resins that are exported from Port Houston to destinations around the world for the manufacture of consumer goods.
We have attracted a third weekly liner service from East Asia, which began in the summer of 2016, increasing business through the Panama Canal. This joint venture between Maersk and Mediterranean Shipping Company, joining the existing weekly services of CMA CGM and COSCO, significantly improves Houston’s position in the East Asia container import and export market.
As another example, wind power imports have increased 31percent through June 2017 as compared to 2016.
Additionally, we successfully repurposed the former cruise terminal at Bayport into a revenue generating facility for the import and processing of automobiles, with operator Auto Warehousing Company accepting the first shipment of Fiat Chrysler vehicles in late 2016.
We have also expanded our use of submerged lands in and around our facilities for among other uses, barge fleeting, which has enhanced waterway safety and has reduced congestion on the waterway.
OUR PEOPLE DRIVE OUR MISSION AND VISION Our mission cannot be achieved without the women and men at Port Houston who work to keep our operations running smoothly, efficiently and safely. Our executive team has assembled a world-class staff to run the day-to-day operations of Port Houston.
CONTAINER VOLUME INCREASED TO NEARLY
2.2 MILLION TWENTY-FOOT EQUIVALENT UNITS IN 2016
Our Executive Director, Roger Guenther, continues to engage our staff to be the best in the nation and to serve our interests and those of our community and region for the greater good. A thoughtful leadership development program is anticipated to come on line by the end of the year. Our staff has also implemented a Project Development Protocol to ensure that all projects at Port Houston are scoped, resourced and examined under the same general criteria to assure process alignment.
PORT HOUSTON n 7
FIRST PORT TO BE RECOGNIZED AS AN
ISO 4001 ENVIRONMENTAL LEADER
8 n MESSAGE FROM THE CHAIRMAN
Our people also donate their time and resources to many community
diversity and the Houston-Galveston Area Council presented Port Houston
endeavors sponsored by notable organizations including the Galveston
with the Excellence Award for our Small Business Development and Maritime
Bay Foundation (oyster reef restoration), the Greater East End Chamber
Education programs. We continue to invest in maritime education to prepare
of Commerce, Buffalo Bayou Partnership and the Texas Commission for
the next generation for the growing career opportunities in maritime fields.
Environmental Quality (Trash Bash), among many others.
Through partnerships with local high schools, junior colleges and four-year colleges, students are introduced to promising maritime careers that in turn
STEWARDSHIP INCLUDES SAFETY, SECURITY, ENVIRONMENT,
provide a qualified future workforce for our growing maritime industry needs.
& EDUCATION Our stewardship continues to be a high priority for Port Houston. We are
WORKING TOGETHER FOR THE FUTURE
proud of our safety culture and our commitment to environmental quality. As
Partnership is essential to our continued success, and we work in alignment
the first port to be recognized as an environmental leader under ISO 14001,
with our elected leaders, our labor, our federal partners, community
we are also completing our internal review of our compliance with ISO safety
stakeholders and You, to assure that our region remains economically
standard ISO 45001. We continue to be an environmental leader among
competitive while assuring environmental sustainability. We are deeply
ports, and have developed an environmental leadership strategy, which is
committed to our core mission to Move the World and Drive Regional
underway and on target for our goals.
Prosperity, and your continued support of Port Houston will assure that we maintain our competitive advantage. With your partnership, we will continue
We constantly review and upgrade our physical security and work with the
to be the Gulf Coast port of choice, the International Port of Texas and the
U.S. Coast Guard, Department of Homeland Security, Customs and Border
premier gateway for international commerce.
Protection and private industry partners to assure that we remain ahead
of ever evolving threats. And we are also updating our information and cyber security for compliance with the National Institute of Standards and Technology to complement our physical security.
Janiece Longoria, Chairman
OUR CHAIRMAN’S CITIZENS ADVISORY COUNCIL EDUCATES AND INFORMS OUR COMMUNITY PARTNERS ON TOPICS RELEVANT TO THE IMPORTANT RELATIONSHIP BETWEEN PORT HOUSTON AND ITS SURROUNDING COMMUNITIES TO ASSURE THAT WE ARE RESPONSIVE TO COMMUNITY CONCERNS AND SENSITIVE TO COMMUNITY IMPACTS FROM OUR OPERATIONS. And our Small Business Outreach and Small Business Development Program has remained highly engaged with our local communities, promoting and spreading business opportunity more broadly. The advancement of this effort has been recognized as a model program since its inception in 2002. Most recently, the City of Houston has recognized Port Houston as a champion of
PORT HOUSTON n 9
THE PORT COMMISSION OF PORT HOUSTON JANIECE M. LONGORIA Chairman
JOHN D. KENNEDY Port Commissioner
Ms. Longoria is an honors graduate of
John D. Kennedy retired as a Colonel in
the University of Texas, and received her
the U.S. Army after 30 years of military
J.D. from the University of Texas School
service focusing on logistics, leadership
of Law in 1979.
and management. Following that career he served a decade as City Manager of
On January 8, 2013, she was unanimously
the City of Nassau Bay, Texas.
appointed by the City of Houston and Harris County as Chairman of the Port,
Mr. Kennedy was appointed to the Port
the leading economic engine for the greater Houston region. She is the first
Commission by Harris County Commissioners Court in December 2012. He
woman to hold this position in the 100-year history of the Port of Houston.
is Chairman of the Procurement and Small Business Development Task Force and serves on the Governance Committee.
At the port, she serves as chairman on the Port Commission’s Audit Committee, and serves on the Governance Committee and Pension and
DEAN E. CORGEY Port Commissioner
Benefits Committee.
Dean E. Corgey has 40 years of maritime experience, including work as
She is on the board of two public companies, CenterPoint Energy, Inc. and
a merchant mariner. An elected union
Superior Energy Services, Inc., both based in Houston.
official, he serves as a vice president of the Texas AFL-CIO, on the West Gulf
She is member of the University of the Texas System Board of Regents, having
Ports Council of the AFL-CIO Maritime
previously served as Vice Chairman, and is a former board member of UTIMCO.
Trades Department and on the executive board of the Harris County AFL-CIO. He
She has been active in many non-profit organizations, and has served on the
is a member of the National Defense Transportation Association, American
Board of Directors and the executive committee of the Board of Visitors of the
Maritime Partnership and the Navy League of the United States.
UT MD Anderson Cancer Center. She currently serves on the board of directors of the University of Texas Law School Foundation, the Greater Houston
Mr. Corgey was appointed to the Port Commission by the Houston City
Partnership and the Texas Medical Center, among others. She has received
Council in January 2013. He serves on the Pension and Benefits Committee.
numerous honors and recognitions for her community and board service, including the Distinguished Alumnus Award for the University of Texas, the 2008 Sandra Day O’Connor Award For Board Excellence, the Female Executive of the Year Award from the Houston Hispanic Chamber of Commerce (2010) and has been recognized as a “breakthrough woman” and inducted into the Hall of Fame by the Greater Houston Women’s Chamber of Commerce.
10 n THE PORT COMMISSION
CLYDE FITZGERALD Port Commissioner
STEPHEN H. DONCARLOS Port Commissioner
Clyde Fitzgerald is a 58-year veteran of
Stephen H. DonCarlos has served as
the Houston waterfront. He is the former
Mayor of the City of Baytown since
president of the South Atlantic and
May 2006, and is an attorney with the
Gulf Coast District of the International
firm of Reid, Strickland & Gillette, L.L.P.
Longshoremen’s Association, having
Mr. DonCarlos served as chair of the
stepped down from the top post in mid-
Harris County Hospital District and
2015 after serving 13 years. Today, he
Texas Medical Center, currently is on
is a member of the Executive Council.
the Board of Directors of the Baytown Chamber of Commerce, and is a member of the East Harris County Bar
Mr. Fitzgerald was appointed to the Port Commission by Harris County
Association, the Board of Directors of the Texas Medical Center and the
Commissioners Court in June 2013. He is Chairman of the Pension and
Houston Bar Association.
Benefits Committee and serves on the Audit Committee. Mr. DonCarlos was appointed by the Harris County Mayors’ and Councils
THELDON R. BRANCH, III Port Commissioner
Association as Port Commissioner in September of 2013. He is Chairman of
Theldon R. Branch, III is the Chairman
the Governance Committee.
and Chief Executive Officer of The Branch Companies, a privately held Houston-
ROY D. MEASE Port Commissioner
based holding company that oversees
Roy D. Mease is a lawyer with a private
investments in real estate, financial
practice in Pasadena, and was a member
assets, the automotive industry and
of the Pasadena City Council for eight
construction. He is also the managing
years.
partner and member of the Executive
Pasadena Second Century Corporation,
Committee of Dufry Houston and Branch/McGowen Ventures and holds the
which is the city’s economic development
Economic Development Finance Professional certification.
entity.
He served as chairman of the
Mr. Branch was appointed to the Port Commission in September of 2013 and
The City of Pasadena appointed Mr. Mease to the Port Commission in
represents the City of Houston. He serves on the Procurement and Small
September of 2013. He serves on the Governance Committee.
Business Development Task Force and the Audit Committee.
PORT HOUSTON n 11
MESSAGE FROM EXECUTIVE DIRECTOR ROGER GUENTHER Each year comes with its own set of opportunities to meet the challenges of changes in our industry. And through the guidance of the Port Commission, the commitment of our employees, and partnership with our customers and stakeholders, Port Houston stepped up in prominence as the “International Port of Texas” through a major rebranding effort. Through strategic preparation for rapidly growing trade through the busiest
FOCUS ON PEOPLE
waterway in the country, we continue to provide value for our customers and
Our focus on people in 2016 included the completion of Internal
community, driving economic activity for our region, state and nation. As a
Communications and Employee Engagement surveys. That was done with
result, 2016 was another solid year for Port Houston.
a participation rate from our staff higher than 50 percent. This feedback is critical to our organization to make us better.
Total tonnage through Port Houston facilities was 34.8 million tons for 2016, only slightly less than the all-time record set just a year earlier. Total revenue for
We have initiated leadership development training for the senior management
the year was $289 million and was only off marginally compared to the prior
team during the past year, while making sure we were also focused on entry-
year. And through close monitoring of spending, we were able to generate net
level employees as well by completing another successful internship program.
cash flow of $120 million for 2016, all of which is reinvested in our ongoing infrastructure necessary to support the growth of our port. We continuously
We had 24 different “huddle” events where employees and leadership met to
evaluate and make strategic investments in our capital infrastructure to stay
share and exchange ideas and updates on Port Houston activities. We also
ahead of the cargo demand for the near and long term.
created and communicated an employee compliance training matrix.
Throughout 2017 – and beyond – the focus of our staff will continue to be on
FOCUS ON GROWTH
four primary strategic areas: investing in people and organizing for success;
Our focus on growth was highlighted in 2016 by our container trade, which
growing and diversifying the business base; providing and facilitating
increased by 2 percent over a very robust 2015 and increased the annual
infrastructure to meet demand; and sustaining the business for the long term.
volume to nearly 2.2 million twenty-foot-equivalent units. Although organic
12 n MESSAGE FROM THE EXECUTIVE DIRECTOR
TOTAL TONNAGE THROUGH PORT HOUSTON WAS
34.8 MILLION TONS FOR THE YEAR OF 2016
PORT HOUSTON n 13
BECAUSE CONNECTIONS ARE CRITICAL
RAIL & ROAD PROJECTS MOVED FORWARD IN 2016
14 n MESSAGE FROM THE EXECUTIVE DIRECTOR
growth across all import and export markets remains solid, the container
and with the railroads to move projects forward, including at the Broadway
trade with East Asia through the Panama Canal continues to evolve rapidly as
DoubleTrack rail line. TXDOT funded the Peninsula Road project that will
we added our third weekly service to that region in mid-2016.
debottleneck one of the busiest truck avenues near the port.
Our operations team, including the outstanding labor we hire every day,
FOCUS ON STEWARDSHIP
supported this growth seamlessly while handling more than 30,000 trucks
Our stewardship and outreach to our community was outstanding in 2016.
per week on average, and maintaining our ship to shore cranes that operated
We continue to be a leader. We were recertified as ISO 14001 to help manage
more than 39,000 hours at a reliability of more than 99 percent. And even with
our environmental responsibilities, and we also were awarded the 2016
continued demand, our vessel productivity and truck turnaround times at our
Guardian of the Bay distinction by the Galveston Bay Foundation.
terminals remained at the highest of industry standards. Additionally, our Small Business Development Program in 2016 continued
FOCUS ON INFRASTRUCTURE
to flourish. The program was developed in 2002 to reach out to the small
Our continued investment in infrastructure is critical for capturing continued
businesses of the greater region surrounding Houston with the purpose of
economic activity for our region, and 2016 saw numerous achievements in
creating opportunities. This was done by creating an aggressive participation
keeping us competitive.
goal for the prime contractors and suppliers to utilize small businesses, with a goal of 35 percent of eligible contracts awarded to small businesses. Since
AT BAYPORT, WE STARTED CONSTRUCTION OF WHARF 2, COMPLETED YARD 6, AND ADDED BERMS AND FREIGHT STATION ROAD. AT THE TURNING BASIN, WE UPDATED MULTIPLE STRUCTURES AND INITIATED A COMPREHENSIVE FACILITIES INSPECTION AND CONDITION ASSESSMENT PROGRAM.
the program has been in place, that 35 percent goal has been exceeded year after year, resulting in almost half a billion dollars being awarded.
Finally, our Maritime Education program is thriving. We now have more than 1,200 students participating in programs in five local high schools. And a total
Our Houston Ship Channel efforts continue to work in cooperation with the
of 12 students received $1000 scholarships from the Partners in Maritime
U.S. Army Corps of Engineers – we launched the Ship Channel Mega-Study
Education Program.
and completed new construction on our way to 45 feet depth. The community also benefitted from the 2016 M/V Sam Houston Outreach Our contract for deepening and widening Barbours Cut and Bayport Channels
as 26,295 passengers boarded the M/V Sam Houston to take a trip along the
is essentially complete and we look forward to commencement of the Bayport
Houston Ship Channel.
flare project and completion of that by the Corps in 2017, providing a safer, navigable waterway in that area, and the ability to accommodate larger ships
In summary, let me just say I am proud of our staff for the things that they were
to serve our terminals.
able to achieve in 2016, working with our partners and stakeholders.
And because connecting inland remains a critical need for moving cargo, we negotiated with the Texas Department of Transportation, Harris County
Roger Guenther, Executive Director
PORT HOUSTON n 15
PORT HOUSTON: THE INTERNATIONAL PORT OF TEXAS
SOLID RESULTS AND VITAL MOVES HIGHLIGHTED 2016 With continued steady growth in containers in 2016, Port Houston recorded
close monitoring of spending, Port Houston was able to generate net cash
some solid financial results for the year. The two million mark for twenty-foot-
flow of $120 million for 2016, all of which was reinvested in the infrastructure
equivalent-units, a container measure, was surpassed for the second year in
necessary to support the growth of the port.
a row, hitting a new record of nearly 2.2 million TEUs. These were very solid results in spite of the impact of a soft breakbulk market
TOTAL TONNAGE THROUGH PORT HOUSTON WAS 34.8 MILLION IN 2016. STEEL IMPORTS, WHICH ARE HIGHLY CYCLICAL, WERE DOWN FOR THE YEAR AS PROJECTED BY PORT OFFICIALS, BUT BOTH CONTAINER VOLUME AND BULK PRODUCTS RECORDED POSITIVE GAINS. AND THE PORT’S PUBLIC FACILITIES CONTINUED TO EXPAND IN 2016.
that was experienced across the nation due to an equally soft energy market. The positive results are a credit to the leadership of the Port Commission and the dedication of the staff and all of our partners to remain successful and competitive.
FTZ #84 CONTINUES TO GROW EXPORTING A BRAND
The year ended on a strong note for Port Houston’s FTZ program in particular,
The new Port Houston brand was unveiled late in the year and was
with six new private and public sites joining FTZ #84 just in December alone.
immediately hailed as a winner. With a tagline as “The International Port of
A total of 13 sites were added in 2016.
Texas”, the brand aimed to capture the port’s undisputed leadership role on the U.S. Gulf of Mexico and its position as the busiest port in the country. The
The December showing led to a 15 percent increase in the total number
Port Commission embraced that important marketing decision, which was an
of sites and a 28 percent increase in the zone for all of 2016. It marked the
essential aspect of Port Houston’s strategic plan, which was approved just
highest volume of new members in the program’s history.
a year earlier. More companies are realizing the advantage of the foreign trade zone program The modern new brand features red, white and blue to reflect the port’s vision
for both imports and exports and are looking for ways to keep and create jobs
as “America’s Distribution Hub for the Next Generation,” along with the bow
and business in the United States. The FTZ program is one of the leading
of a ship, which reflects the port’s mission “To Move the World and Drive
programs in accomplishing these goals. Foreign Trade Zone and Economic
Regional Prosperity.” The accompanying Lone Star reflects “The International
Development Manager Shane Williams in 2016 was named to the National
Port of Texas” and the pride associated with Texas.
Association of Foreign Trade Zones Board.
FINANCIAL STABILITY
New sites in 2016 in FTZ #84 included Noble Drilling, Kobelco, Floor and
Although the previous year was a record year, total revenue for 2016 was
Décor, Sun Packing, VoPak, Intercontinental Terminals and Industrial
$289 million, which was only off minimally compared to 2015. And through
Terminals. Other sites are Palletized Trucking, Pro Agility, Coastal Cargo Care Terminals, Vantage Drilling, Men’s Wearhouse and Trendsetter.
16 n FINANCIAL HIGHLIGHTS
Texas is an inventory tax state, so goods can qualify for the additional reduced inventory tax benefit on top of all the federal duty savings. FTZ #84 is comprised of various storage facilities and manufacturing sites located in Harris County, Fort Bend County, Waller County and Brazos County.
New service to Port Houston in 2016 included the first regular direct container and roll on/roll off service between Houston and West Africa, which was launched by Grimaldi Lines at the Barbours Cut Container Terminal.
Additionally, Maersk Line and Mediterranean Shipping Co. (MSC) joined forces in 2016 to operate a new container service between the United States and Asia, calling first at Port Houston. MSC called the new service the Lone Star Express, operating between the U.S. Gulf of Mexico and Asia. Other notable achievements:
84
6 NEW SITES JOINED FTZ #84 FOR A TOTAL
13 FTZ SITES ADDED IN 2016
FOR THE 42ND CONSECUTIVE YEAR, THE PORT IN 2016 RECEIVED THE GOVERNMENT FINANCE OFFICERS ASSOCIATION CERTIFICATE FOR EXCELLENCE IN FINANCIAL REPORTING. THIS AWARD IS CONSIDERED THE HIGHEST FORM OF RECOGNITION WHEN IT COMES TO GOVERNMENT ACCOUNTING AND FINANCIAL REPORTING. And for the fifth straight year, the Texas Comptroller Gold Platinum Circle Leadership award was presented to Port Houston. That award is presented to government agencies that have the most open and accessible reporting. Both awards are important and significant for Port Houston.
A condensed look at Port Authority’s 2016 financial performance is available on pages 16 and 17 of this report.
PORT HOUSTON n 17
PORT OF HOUSTON AUTHORITY
CONDENSED STATEMENTS OF FINANCIAL POSITION AS OF DECEMBER 31, 2016, 2015, 2014
Port of Houston Port of Authority HoustonCondensed Authority Condensed StatementsStatements of Net Position of Net Position As of December As of 31, December 2016, 2015 31, 2016, and 2014 2015 and 2014
2016 Assets: Assets: Current andCurrent other assets and other assets Capital assets Capital assets Total assetsTotal assets
(in thousands) (in thousands) 2016 2015 20152014
2014
$516,594 $516,594 $536,544 $536,544 $490,755 $490,755 1,611,496 1,611,496 1,505,636 1,505,636 1,480,184 1,480,184 $2,128,090$2,128,090 $2,042,180$2,042,180 $1,970,939$1,970,939
Liabilities: Liabilities: Current liabilities Current liabilities Long-term Long-term debt (including debtcurrent (including portion) current portion) Other non-current Other non-current liabilities liabilities
78,693 697,123 75,029
78,693 44,605 697,123 717,632 75,029 60,593
44,605 41,263 717,632 736,745 60,593 58,994
41,263 736,745 58,994
Total liabilities Total liabilities
850,845
850,845 822,830
822,830 837,002
837,002
Net position: Net position: Net investment in capital assets Net investment in capital assets Restricted assets Restricted assets UnrestrictedUnrestricted assets assets
919,177 45,705 312,363
919,177 794,075 45,705 41,853 312,363 383,422
794,075 749,755 41,853 43,290 383,422 340,892
749,755 43,290 340,892
Total net position Total net position Total liabilities Total and liabilities net position and net position
18 n FINANCIAL INFORMATION
1,277,245 1,277,245 1,219,350 1,219,350 1,133,937 1,133,937 $2,128,090$2,128,090 $2,042,180$2,042,180 $1,970,939$1,970,939
Port of Houston AuthorityPort Condensed of Houston Statements Authority Condensed of Net Position Statements of Net Position For the years ended December For the 31, years 2016, ended 2015 December and 2014 31, 2016, 2015 and 2014
Operating revenues Operating expenses
Operating revenues Operating expenses
Operating income
Operating income
2016
(in thousands) (in thousands) 2015 2016 2014 2015
2014
$290,226 265,103
$293,736 $290,226 $263,897 $293,736 225,928 265,103 216,901 225,928
$263,897 216,901
25,123
67,808
25,123 46,996
67,808
46,996
Net nonoperating revenues Net nonoperating revenues Net nonoperating revenues Netrelated nonoperating to property revenues taxesrelated to property taxes
7,402 22,917
697 16,792
7,402 5,520 22,917 17,075
697 16,792
5,520 17,075
Income before capital contributions Income before capital contributions
55,442
85,297
55,442 69,591
85,297
69,591
Capital contributions from Capital federal contributions agencies from federal agencies
2,453
116
2,453 2,370
116
2,370
Change in net position Change in net position
$57,895
$85,413 $57,895 $71,961 $85,413
$71,961
$155,448 49,043 -234,822 14,864
$119,795 42,241 -136,244 -10,583
$155,448 $107,281 49,043 53,988 -234,822 -149,109 14,864 -3,018
$119,795 42,241 -136,244 -10,583
$107,281 53,988 -149,109 -3,018
Net (decrease) increase in Net cash (decrease) and cash increase equivalents in cash and cash equivalents
-15,467
15,209
-15,467 9,142
15,209
9,142
Balances at beginning ofBalances year at beginning of year
70,972
55,763
70,972 46,621
55,763
46,621
$70,972 $55,505 $55,763 $70,972
$55,763
Condensed Statements Condensed of Cash Flows Statements of Cash Flows Cash provided by operating activities Cash provided by operating activities Cash provided by noncapital Cashfinancing providedactivities by noncapital financing activities Cash used in capital andCash related used financing in capital activities and related financing activities Cash used in investing activities Cash used in investing activities
Balances at end of year Balances at end of year
$55,505
*2014 was restated in connection with the implementation of Governmental Accounting Standards Board Statement No. 68.
PORT HOUSTON n 19
OPERATIONAL PERFORMANCE Operations were strong and steady for Port Houston in 2016. For the second
automobiles. The terminal is operated by Auto Warehousing Co. of Tacoma.
year in a row, the two million TEU mark was surpassed. Total tonnage was
The first ship to deliver automobiles there, the M/V Grande Sierra Leone, which
34.8 million for the year.
is operated by a partnership between Grimaldi line and Euro-Mediterranean, arrived Nov. 30. The automotive warehouse operation represents new
Port Houston’s operations team, working in coordination with organized labor,
business for Port Houston.
seamlessly supported the ongoing growth at the port’s container terminals and other facilities in 2016. Concurrently, the port was averaging more than
At the Turning Basin, multiple structures were updated and the port initiated a
30,000 trucks a week at the container terminals while maintaining ship-to-
comprehensive facilities inspection and condition assessment program.
shore cranes that operated more than 39,000 hours, with a reliability rate that topped more than 99 percent.
Working in cooperation with the U.S. Army Corps of Engineers, the Houston Ship Channel Mega-Study was launched to look at ways of even further
IT WAS THE FIRST FULL YEAR OF OPERATION FOR THE FOUR NEW SUPER POST-PANAMAX CRANES AT BARBOURS CUT, WHERE THEY BEGAN OPERATING IN LATE 2015. AND THREE MORE SHIP-TO-SHORE CRANES FOR BARBOURS CUT WERE UNDER CONSTRUCTION IN 2016 AS WORK CONTINUED ON MODERNIZING THE NEARLY 40-YEAR-OLD TERMINAL.
improving the waterway.
The contract for deepening and widening Barbours Cut and Bayport Channels was essentially completed in 2016 and executives were looking forward to commencement of the Bayport flare project and completion of that project by the Corps.
Even with continued demand, Port Houston’s vessel productivity and truck turnaround times at its terminals remained at the highest of industry standards.
The focus on connecting inland remained a high priority. Port Houston
Port Houston’s infrastructure is critical in order to capture continued economic
negotiated with the Texas Department of Transportation, Harris County and
activity for our region. The year 2016 saw numerous achievements in keeping
the railroads to move projects forward at the Broadway DoubleTrack rail line,
us competitive. At Bayport, construction of Wharf 2 began and Container
and the Texas Department of Transportation funded the Peninsula Road
Yard 6 was completed and berms and Freight Station Road were added.
project that will debottleneck one of the busiest truck avenues near the Port.
Also at Bayport, operations began at a new auto processing terminal, which opened as a result of the cruise facility being repurposed for import
20 n OPERATIONAL PERFORMANCE
THE PORT SUPPORTS NEARLY
2.6 BILLION
$
IN STATEWIDE ECONOMIC ACTIVITY
PORT HOUSTON n 21
EMERGENCY MANAGEMENT HANDLED
928 CALLS FOR ASSISTANCE IN 2016
22 n HEALTH, SAFETY, SECURITY AND EMERGENCY MANAGEMENT
HEALTH, SAFETY, SECURITY AND EMERGENCY MANAGEMENT There was no shortage of noteworthy events involving the Health, Safety,
when it comes to total vessel movements, the ability to keep the port secure
Security and Emergency Management division (HSSE) in 2016.
requires constant diligence by Port Houston emergency personnel.
Sgt. Dwight Gaines of the Port Police department was en route to the Bayport
Port Houston is certified ISO 28000. That designation is an international
Container Terminal Sept. 16 when he came upon a car crash on State
standard that sets stringent requirements for a security management
Highway 225 just after midnight. He immediately stopped to help. With the
system (SMS), incorporating all aspects of business management. The initial
assistance of several bystanders, they managed to get the driver of one of the
certification in 2008 was earned after a three-year process of developing the
vehicles out before it was fully engulfed by fire, saving his life.The department
system specifically for perimeter security operations at both the Barbours Cut
awarded Gaines a Life Saving Bar.
and Bayport container terminals. The port’s Manchester liquid bulk terminal was added in 2009. Port Houston was recertified in 2014 and a fourth
Earlier that same month on Sept. 5, a crude oil tanker fire erupted onboard
terminal, the Turning Basin, was added, ensuring the ISO 28000 certification
the M/T Aframax River after it sustained damage and began leaking crude oil
being extended through 2017.
into the upper Houston Ship Channel. A crew from the port fire department headed by Assistant Chief Glenn Hood and Senior Capt. Kirk Beverung
HSSE operates by the divisional mission statement of “Safely Secure People
raced to the scene and extinguished the blaze, saving nearby vessels and
and Commerce,” with a primary focus on supporting all other divisions in
docks. Captain of the Port, Peter Martin, (U.S. Coast Guard) praised the port
public safety elements. Each department within the division continued to refine
firefighters for their actions and diligence in responding to that incident.
their roles and effectiveness in 2016. These efforts included the completion of a safety perception survey that showed major improvements in safety
THE PORT OF HOUSTON FIRE DEPARTMENT WAS AWARDED THE U.S. COAST GUARD MERITORIOUS PUBLIC SERVICE AWARD AT A SPECIAL CEREMONY CONDUCTED DURING THE LONE STAR HARBOR SAFETY COMMITTEE MEETING AT THE HOUSTON PILOTS’ FACILITY.
across the organization, the deployment of an emergency alert system for all
The firemen, two Houston Pilots and two G&H Towing representatives were
Additionally, more than $3,000 was raised by HSSE staff to purchase gifts
presented the award by Rear Adm. Dave Callahan, the Coast Guard’s 8th
and a holiday meal for residents of a local assisted-living facility as part of the
District commander, in recognition for their “prompt and effective response to
Police Department’s “Silver Santa” initiative, which dates back as a tradition
prevent a major marine casualty.”
since 2009.
employees, several awards and recognitions for the Fire Department both in HAZMAT response and Emergency Medical Servicesand the continuation of “no deficiencies noted” by the U.S. Coast Guard during security inspections.
As they say, it’s all in a day’s work for both the police and fire crews at Port Houston (see accompanying chart, page 22) As the nation’s busiest port
PORT HOUSTON n 23
2016 HSSE STATISTICS AN AVERAGE WEEK IN HSSE
• 3,707 Credentialing visitors at TB (15 a day)
• Fire Department responds to 5 HAZMAT calls, 4 EMS calls, and 1 fire
• Maintained C-TPAT and ISO 28000 certifications
• Fire Department inspects 110 fire hydrants, 287 fire extinguishers, and 5 buildings • Security randomly screens 5,146 vehicles and randomly verifies 494
EMERGENCY MANAGEMENT DEPARTMENT
TWIC cards
• The Dispatch Center:
• Safety conducts 27 audits, holds 31 hours of contact training, and does
o Received 48,298 calls for service (134 a day, slight increase)
6 incident investigations for process improvement
o Entered 6,880 vessel arrivals/departures/shifts at terminals (19 a day,
• Police Department responds to 742 calls or events, issuing 33 safety
slight decrease)
citations, and making 2 arrests
o Processed 1,732 gate requests and direct discharge requests (5 a day,
• Credentialing assists 75 people face-to-face with access requirements
slight decrease)
• The Emergency Management Dispatch Center handles 928 calls for
o Distributed, collected, cleaned and sorted 6,111 wristbands for Ro-Ro
assist, records 132 vessel movements, and processes 33 late gate requests
operations (17 a day, slight decrease) • 122 Port Alert notifications sent
FIRE DEPARTMENT
• 933 open records requests (3 a day)
• 581 total calls (down 10% from 2015)
• EOC activations for AFRAMAX RIVER fire and Apache helicopter crash
• 42% HAZMAT (245) • 34% EMS (196 – 156 PHA/30 mutual aid)
SAFETY DEPARTMENT
• 10% Fires (60 – 10 marine/29 land/21 mutual aid)
• Facilitated over 1,400 safety audits
• 14% “Other” i.e. Inspections, Fire Alarms, and Area Checks (80)
• Conducted 299 incident investigations
• Inspected 455 fire hydrants every month
• Conducted over 1,600 training contact hours
• Inspected 1,300 fire extinguishers every month
• Lost Time Incident Frequency Rate
• 250 building Inspections of port-owned facilities, each building done at
o US Maritime Alliance (East and Gulf Coast Ports) = 4.45
least annually
o PHA = 1.12 (or 1/3 of the industry average)
• 100 pre-fire plans completed for waterside facilities along ship channel
• Conducted the DuPont Safety Perception Survey with a 98% response rate
• Initial Certification Training - Structural Fire - 468 hours, Marine Fire - 90
• Implemented Turning Basin Truck Compliance Program
hours, HAZMAT Tech - 80 hours, Instructor I - 48 hours, Fire Officer I - 60 hours, Driver Operator - 60 hours, USCG Masters License - 360 days of
POLICE DEPARTMENT
sea time and class, EMT - 208 hours
• 38,505 incidents recorded (steady with 2015)
• Annual Texas Commission on Fire Protection C.E. Hours - 34 hours per person
• Average 106 incident responses per day (steady with 2015)
• Annual Texas Department of Health EMT C.E. Hours - 12 hours per person
• 123 arrests made, vast majority for outstanding warrants • Top activities:
SECURITY DEPARTMENT
o Area Check (21,595)
• Security randomly screened 267,631 vehicles (1,074 per workday which
o Vessel Movement (4,929)
means on average over 7,000 vehicles a day enter our facilities)
o Traffic Control (2,949)
• Five annual USCG Inspections, 7 unannounced USCG spot-checks (no NOVs)
o Courtesy Transport (2,232)
• One Internal FSP audit, one Internal SMS audit, one External SMS audit
o Open/Close Gate or Door (1,847)
• 25,692 TWIC cards randomly verified (103 per workday)/37 discovered revoked
o Safety Violations (1,710)
24 n HEALTH, SAFETY, SECURITY AND EMERGENCY MANAGEMENT
PORT HOUSTON n 25
GOVERNMENT PARTNERSHIPS ARE KEY AT PORT HOUSTON Facilitating international commerce along the Houston Ship Channel and generating jobs are major aspects of Port Houston’s overall mission. Port executives regularly engage with federal, state and local officials on port-related policies ranging from dredging, freight mobility, transportation and infrastructure to environmental regulation, port security and international trade.
26 n GOVERNMENT RELATIONS
Port Houston’s Government Relations department acts as the liaison between the Port Authority and its local, state and federal government stakeholders. The department’s functions include informing and educating elected officials and regulatory agencies on issues that affect the port by hosting briefings and tours, as well as responding to a myriad of requests.
PORT HOUSTON n 27
IT IS ALL ABOUT RELATIONSHIPS
Roger Guenther, who provided him and several members of his staff with an
Port Houston values its relationships with its partners and stakeholders.
overview of the Port of Houston.
Numerous local, state and federal governmental entities are port stakeholders. The members of the Port Commission are appointed by local jurisdictions; the
The senator also was given an update regarding the Houston Ship Channel
State of Texas authorized the creation of the Port Authority as a navigation
from Channel Development Director, Mark Vincent, and on state policy
district and granted certain property to it; and the federal government partners
priorities by Government Relations Director Spencer Chambers.
with the Port Authority in some of its most important projects, including the maintenance of the Houston Ship Channel.
The port hosted State Rep. Larry Gonzales for a briefing June 30. Rep. Gonzales represents Williamson County, in House District 52. He is a 17-year
Visits to Port Houston by elected and appointed officials are common. In
resident of his district and a seasoned veteran of the Texas Legislature, serving
January of 2016, the head of the Small Business Administration, Maria
as a senior staff appointee of members of the House of Representatives, the
Contreras-Sweet, visited and told port executives that the SBA is working
Lieutenant Governor and the Attorney General during nine regular legislative
on behalf of business owners to expand their access to capital. The SBA
sessions, before his election.
guarantees loans for small businesses. Gonzales, chairman of the House Appropriations Subcommittee, which Administrator Contreras-Sweet lauded the commitment by Port Houston
allocates funding to the Texas Department of Transportation, Texas
executives to the port’s Small Business Development Program, which
Commission on Environmental Quality, Texas Railroad Commission and many
was outlined by Port Commission Chairman Janiece Longoria and Port
other state agencies. He was also recently named chairman of the Texas
Commissioner John D. Kennedy, along with Executive Director Roger
Sunset Commission.
Guenther and key staff. The goal of the program is to award 35 percent of eligible contracts to small business, but the port has regularly exceeded that
SENATOR TOURS BAYPORT
goal, awarding small business with 42 percent of eligible contracting dollars.
U.S. Sen. Ted Cruz visited the Port Authority’s Bayport Container Terminal August 23 for a briefing and tour of the Port of Houston. Elected in 2012 to
Since it began in 2002, about $434 million in contract expenditures have
serve as one of the two senators representing Texas, Sen. Cruz sits on several
been made to small businesses. Those contracts have been important in
important committees, including the Committee on Commerce, Science and
helping small businesses succeed and expand.
Transportation.
STATE LEGISLATORS VISIT PORT FOR BRIEFING
During Cruz’ visit to the port, Commissioners Dean Corgey and Stephen
Several public officials met with port leadership in 2016 on a key number of
DonCarlos, Executive Director Roger Guenther and other leadership
issues facing ports.
provided an overview of the Port of Houston and discussed the many federal partnerships and policies that are critical to maritime commerce along the
Sen. Robert Nichols, chairman of the Senate Transportation Committee,
Houston Ship Channel. In particular, the executives highlighted the importance
visited and toured the Bayport Container Terminal in the spring. Nichols
of dredging and improving the ship channel as well as the need for adequate
was welcomed by Chairman Janiece Longoria and Executive Director
infrastructure on land to facilitate the efficient movement of goods.
28 n GOVERNMENT RELATIONS
DREDGING FUNDING: A TOP LEGISLATIVE PRIORITY Top U.S. Army Corps of Engineers (USACE) officials met with Port of Houston Authority channel development experts Aug. 24 to discuss a range of important issues.
The meeting with Major General Donald E. Jackson, Jr., Deputy Commanding General for Civil and Emergency Operations, and Brig. General David C. Hill, Commander and Division Engineer for the Southwest Division, was an opportunity for the Corps’ leadership and the port to discuss the Houston Ship Channel’s importance to the nation -- as well as its needs and challenges.
AS THE LOCAL SPONSOR OF THE HOUSTON SHIP CHANNEL, WE WORK CLOSELY WITH THE CORPS OF ENGINEERS. PORT HOUSTON IS ONE OF THE LEADING DEEP-DRAFT PORTS IN THE COUNTRY, WITH MORE THAN 150 PRIVATE FACILITIES IN THE PORT’S 25-MILE COMPLEX. The port frequently hosts various international delegations and is involved with government agencies focused on ports at the state and federal level such as Texas Ports Association and American Association of Port Authorities.
Small Business Administrator Maria Contreras-Sweet (second from left) lauded the Small Business Development Program during a 2016 visit.
PORT HOUSTON n 29
ENVIRONMENTAL STEWARDSHIP Port Houston is committed to conducting port operations using a systematic approach to environmental management in order to protect and preserve the natural environment. We strive to be the recognized maritime industry leader in environmental stewardship through air and water quality, land management, stewardship and marsh restoration.
Port Houston’s nationally recognized and award-winning dedication to ensuring that business and the environment can co-exist successfully is often held up as the model for others to emulate. The port also collaboratively works with partners such as the Galveston Bay Foundation to preserve and protect Galveston Bay, home of the Houston Ship Channel.
PORT HOUSTON HAS BEEN AWARDED
6.7 MILLION
$
IN GRANTS FROM THE EPA
30 n ENVIRONMENTAL STEWARDSHIP
GUARDIAN OF THE BAY AWARD
as a systematic framework to manage the immediate and long-term
The Galveston Bay Foundation honored the port with the Guardian of the Bay
environmental impact of an organization’s products, services and processes.
Award at its annual luncheon Sept. 27. GIVING BACK TO THE BAY Accepting the award on behalf of the port was Commissioner Stephen
The port and the Galveston Bay Foundation (GBF) recently partnered to
DonCarlos, Port Authority Environmental Affairs Director Leah Oberlin and
restore vital oyster reef habitat in part the bay. This volunteer event was held
Channel Development Project Manager David Casebeer.
on July 16 at the Sweetwater Preserve on Galveston Island, and assisted with the construction of new reef along 2,000 feet of shoreline. The Sweetwater
The port’s environmental stewardship efforts occur throughout the year through
Lake Oyster Bar Breakwater, created during this event, was constructed
community outreach and events, which is one of the organization’s primary
entirely by port volunteers.
goals from the 2014 adopted strategic plan. The Environmental Affairs team also does extensive outreach and volunteerism that are aimed at benefitting Galveston Bay. The port also reuses dredged material through dredging projects in order to restore marine habitat and aquatic life. The port is creating 3,100 acres of marsh, constructing bird islands and developing offshore beneficial use berms for fisheries habitat. As part of the port’s environmental policy, stewardship and pollution prevention are incorporated into all business decisions and practices. EXCELLENCE: MEETING ISO COMPLIANCE Port Houston is the first port in the world to attain the newest international standard for port environmental management systems, meeting a stringent new set of criteria in the process ranging from the following requirements:
• Waste Minimization
• Energy Efficiency
• Storm Water Pollution Clean-up Program
• LEED Standards
• Dredged Material Area Management
AS PART OF OUR CONTINUED DEVOTION TO BE AN ENVIRONMENTAL LEADER, THE “GIVE BACK TO THE BAY” EVENT, ALSO KNOWN AS “BAYDAY,” WAS CREATED TO ENGAGE PORT TEAM MEMBERS IN STEWARDSHIP EFFORTS THAT BENEFIT GALVESTON BAY, HOME TO PART OF THE HOUSTON SHIP CHANNEL, OUR REGION’S LARGEST ECONOMIC DRIVER. DRAYAGE TRUCK PROGRAM SUPPORT The port welcomed environmental, trucking and transportation professionals for the Texas Commission on Environmental Quality (TCEQ) Drayage Truck Program grant workshop in October. The TCEQ Drayage Truck Incentive Program was designed to provide incentives for the replacement of vehicles operating at various seaports and Class I rail yards in nonattainment areas of Texas, including the Port of Houston. Owned or leased vehicles, non-road yard trucks and other cargo handling equipment are eligible to be replaced through the program. Up to $4.7 million in reimbursement grants are available to applicants. The grants help the Texas region better improve air quality by offering these incentives. Port Houston has partnered with Houston-Galveston Area Council and the
Known as ISO 14001:2015, the new standard requires significant organizational changes before the designation can be awarded, and steps already have been
Environmental Defense Fund in the Port Drayage Truck Bridge Loan Program for these efforts.
taken by port environmental department officials to meet those goals. The port has been awarded $6.7 million in grants from the Environmental The ISO 14001 Environment Management System (EMS) standard is an internationally recognized environmental management standard that was put in place in 1996. Open to any company or agency, the program is described
Protection Agency during the past seven years and more than $2.2 million in TCEQ grants since its program began in 2002. Port Houston has a solid track record of securing state and local grant opportunities for air emission reductions. PORT HOUSTON n 31
COMMUNITY RELATIONS VALUED AT PORT HOUSTON Port Houston stakeholders include the communities surrounding the Houston
BEACH CLEANUP PROGRAM
Ship Channel. In 2013, the Chairman’s Citizens Advisory Council was created
The port was proud to partner with the Galveston Bay Foundation and the
to provide an open line of communication between the Port Commission and
Texas General Land Office for the statewide Adopt-A-Beach cleanup event.
communities in and around the Port of Houston. The council in 2016 continued
Port employees cleaned Morgan’s Point beaches, joining 60-plus other
its important work, providing community input for a litany of activities.
community members from local businesses and surrounding communities.
The port is committed to being a responsible neighbor and community
The Texas Adopt-A-Beach program, which began in 1986, is an all-volunteer
member in the region, and maintaining that commitment is an important part
effort dedicated to preserving and protecting Texas beaches. The program’s
of our success as a port.
success is credited to dedicated volunteer coordinators, coastal community leaders, sponsors and citizens.
OYSTER REEF RESTORATION PROJECT Port Houston partnered with the Galveston Bay Foundation in July for an
Through a cooperative team effort, volunteers were able to clean up nearly a
Oyster Reef Restoration project at the Sweetwater Preserve on Galveston
half-mile of beach shoreline, filling a dumpster’s worth of debris. Additionally,
Island and assisted with construction of reef along 2,000 feet of shoreline.
participants collected several dozen bags of recyclables such as bottles, aluminum cans and plastic bags that otherwise would end up in Galveston Bay.
AS PART OF THE PORT’S COMMITMENT TO CONTINUE TO BE AN ENVIRONMENTAL LEADER, THE “GIVE BACK TO THE BAY” DAY WAS FOUNDED. THE ANNUAL EVENT ALLOWS EMPLOYEES AND THEIR FAMILIES TO BE STEWARDS OF GALVESTON BAY, THE HOME OF THE HOUSTON SHIP CHANNEL, A REGIONAL ECONOMIC DRIVER.
“PARK TO PORT” BIKE RIDE The port also participated at the third annual “Park to Port” Bike Ride Oct. 15. Riders started in Hermann Park by Bill Coats Bridge, heading east through the recently rehabilitated Bayou Greenway trail on Brays Bayou, ending up at the Port of Houston. More than 1,000 people participated.
More than 40 employees volunteered to create a vital habitat for new oysters and to improve water quality. Oysters act as a natural filtration system by
Crowds celebrated the bikers’ arrival during the turnaround event sponsored by
filtering silt and contaminants from the water.
Port Houston at Brady’s Landing with food, music, games and a fireboat show.
A single oyster can filter up to 50 gallons of water daily. By providing young
Port employees volunteered to pass out snacks to riders. Proceeds from
oysters with a hard surface such as recycled shells on which to settle and
the ride benefit the Hermann Park Conservatory, a nonprofit organization
grow, constructed oyster reefs will promote better water quality in Galveston
responsible for maintaining and improving the parks system.
Bay for years.
32 n COMMUNITY RELATIONS
ASSISTED WITH CONSTRUCTION OF REEF ON
2,000 FEET
OF SHORELINE ON GALVESTON ISLAND
PORT HOUSTON n 33
PADDLING THE BAYOU FOR A CAUSE
Training Campus in Bayport. A total of 275 middle and high school students
Port employees also joined dozens of fellow canoe and kayak enthusiasts
from the surrounding Houston area attended the half-day program.
for the inaugural Greens Bayou Regatta, a 7.5-mile paddle race held in October. The event combined recreation, stewardship and education on one
The expo featured presentations by mariners on the topics of towboats,
of Houston’s most beautiful and secluded waterways, Greens Bayou.
harbor tugs, barges, shipping forklifts, dredging, survey vessels and maritime salvage equipment.
Paddlers, both novices and seasoned veterans, listened to opening remarks from Houston Mayor Sylvester Turner near the launch site at Brock Park.
SMALL BUSINESS DEVELOPMENT STRONG In addition to the industry forums, the port’s Small Business team actively
ENCOURAGING STUDENTS ON JUNIOR ACHIEVEMENT DAY
partners and sponsors outreach workshops, expos and one-on-one develop-
Employees volunteered at Port Houston Elementary’s Junior Achievement
ment sessions.
Day Dec. 15. The educational partnership utilizes members of the port community to help children understand the relationship between what they
The semi-annual Port University course, a staff-driven initiative to help
learn in school and their successful participation in society, while encouraging
promote the Small Business Program, provides insight into the procurement
and inspiring them to achieve their highest potential.
process at the port.
Junior Achievement’s “JA Day” allows companies to interact with students
2016 was also a year of awards for the Small Business Education and Outreach
and deliver a grade-specific curriculum over the course of a school day.
department. Port Houston’s Small Business and Maritime Education programs
Students learn the basic concepts of business, economics and how their
received the Our Great Region Excellence Award from the Houston-Galveston
education is significant to the workplace. The lesson contains fun activities
Area Council (H-GAC) Dec. 2. The award is the highest level of recognition
that help students understand new concepts and the roles businesses play
from the organization, which covers 13 surrounding counties, including Harris
in their communities.
County. H-GAC is the regional organization through which local governments consider issues and cooperate in solving area-wide problems.
MARITIME EDUCATION PROGRAM THRIVING We also invest in maritime education to meet our future workforce needs to assure that we are America’s distribution hub for the next generation and to prepare the next generation for the growing maritime career opportunities.
THE SMALL BUSINESS TEAM WAS HONORED WITH THE COMMUNITY PARTNER OF THE YEAR AWARD, PRESENTED BY HOUSTON MAYOR SYLVESTER TURNER, FOR ITS PROTÉGÉ MENTORING PROGRAM WITH HOUSTON METRO AND HOUSTON ISD.
Through partnerships with local high schools, four-year colleges and junior colleges, students have the opportunity to participate in programs preparing
Port Houston’s interagency mentor protégé program, in collaboration with the
them for maritime careers.
City of Houston, Houston First Corporation, Houston ISD, Houston Community College, and Houston METRO aims to help small businesses become more
The port’s Maritime Education Department supported the 2016 Youth
self-sustaining by fostering long-term relationships between contractors and
Maritime and Logistics Expo April 16 at San Jacinto College’s new Maritime
Port Houston certified small businesses, as well as businesses registered with partnering agencies.
34 n COMMUNITY RELATIONS
RECOGNITION OF SERVICE Port Houston sincerely appreciates the hard work and dedication of the following employees for their many years of service: Susan J. Burrows • M/V Sam Houston • 8 Years Anita A. Hayes • Executive • 7 Years Charles E. Jefferson • Northside TB • 17 Years Glen H. Lewis Jr. • TB Maintenance • 8 Years Jerry D. McDonald • BCT Maintenance • 20 Years Michael E. Older • Fire • 36 Years Jerry L. Tobias • Fire • 29 Years Eric S. Vining • BCT Maintenance • 20 Years Kenneth G. Wilcox • BCT Maintenance • 13 Years
PORT HOUSTON n 35
ABOUT
ABOUT PORT HOUSTON Port Houston is an economic engine that produces jobs and economic prosperity for the local and state economy. We are the proud sponsor of the Houston Ship Channel, and we facilitate and accommodate commerce and navigation. Port Houston strives to be America’s Hub for the Next Generation and we are ready for bigger things to come. EDITORIAL STAFF: STAN SWIGART Director Marketing and External Communications BILL HENSEL Manager External Communications LACI THERIOT Digital Content Marketing Specialist DESIGN: JOHN MANLOVE MARKETING & COMMUNICATIONS PHOTOGRAPHY: CHRIS KUHLMAN CK Productions DAVID BRAY David Bray Photography ©2017 Port Houston All rights reserved
36 n ABOUT PORT HOUSTON
111 EAST LOOP NORTH HOUSTON, TX 77029 P.O. BOX 2562 HOUSTON, TX 77252-2562 713.670.2400 FAX: 713.670.2429 WWW.PORTHOUSTON.COM